MINUTES OF THE BOARD OF COMMISSIONERS' SPECIAL MEETING

LANSING BOARD OF WATER AND LIGHT

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Tuesday, November 27, 2001
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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.  Chairman Ronald Callen called the meeting to order.

The Secretary declared a quorum present.

All said the Pledge of Allegiance.

APPROVAL OF MINUTES

Motion made by Commissioner Duncan, seconded by Commissioner Haggart, to approve the minutes of regular session held October 23, 2001.

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

There were no communications.

REPORTS OF COMMITTEES

No committee reports.

GENERAL MANAGER’S RECOMMENDATIONS AND DISCUSSION ITEMS

Background materials on items presented are on file in the Office of the Corporate Secretary.

RESOLVED, That the General Manager be authorized to retain Rhonda Ross, Esq., and the firm of Warner, Norcross and Judd, at a rate of $240 per hour, as special counsel to draft a rules package to be presented to the Air Quality Division of the Michigan Department of Environmental Quality.  The rules package will address start-up, shutdown and malfunction (SSM) issues associated with the operation of electric generating units.  The name of Ms. Ross and her firm will be submitted to the City Attorney and, upon his recommendation, to City Council for approval.  Use of Special Counsel is subject to the recommendation of the Utility Staff Attorney and the approval of the General Manager.

Moved by Commissioner Creamer, seconded by Commissioner Haggart, to take from the table the question on use of special counsel.

Action:  Carried unanimously.

Staff Commentary:  This firm and lawyer are being jointly retained and paid for on an equal basis by the BWL, Detroit Edison and Consumers Energy.  The package of rules would deal with the exemption of excess emissions during periods of unit start-up, shutdown and unanticipated unit malfunction.  With the recent (August 20, 2001) rescission of the existing Michigan Rules R336.1913 and R336.1914 covering SSM, the BWL would be greatly impacted without replacement rules.  Rhonda Ross, the attorney that will be drafting the rules package, has specific experience dealing with air quality rules and regulations.  Ms. Ross has been Director of the Air Quality Management Division of the Wayne County Department of the Environment and is experienced working with both state and federal environmental statutes.

It is expected that the total cost for the project would be near $30,000 to be divided equally between the BWL, Detroit Edison and Consumers Energy.  Included in the cost would be a study of other state rules addressing SSM, and negotiations with the State of Michigan directly concerned with the acceptance of the proposed rules package.  Ms. Ross bills at an hourly rate of $240.

Discussion:  At the request of the Commissioners, a letter from Rhonda Ross--dated October 29, 2001--was sent to the Board on November 2^nd addressing questions and concerns raised at the regular session held October 23.

Moved by Commissioner Wonch, seconded by Commissioner Duncan that the resolution authorizing the use of special counsel be adopted.

Action:  Carried unanimously.

RESOLVED, That upon occurrence of all conditions, it is hereby deemed in the best interests of the Lansing Board of Water and Light to consent to and agree to be bound by the provisions of (a) The Agreement Among the Michigan South Central Power Agency, the Michigan Public Power Agency and Trans-Elect; (b) The Partial Novation and Release Agreement between and among Trans-Elect, Consumers Energy Company (Consumers), Michigan South Central Power Agency and the Michigan Public Power Agency when executed by the parties thereto; (c) The stipulation and Settlement Agreement effective August 6, 2001, in Branch County Circuit Court case No. 01-06-405-CK; and (d) The Second Stipulation and Settlement Agreement, effective August 6, 2001 in the same docket in order to resolve issues related to the Midland Anti-Trust Settlement Agreement between Consumers and Lansing Board of Water and Light and to, among other things, resolve other issues that are being litigated in the aforementioned lawsuit, the documents identified in (a), (b), (c) and (d) above having been submitted and considered fully.

RESOLVED, That the General Manager and Corporate Secretary be and are hereby authorized and directed to execute this Consent and Agreement.

RESOLVED FURTHER, That the Michigan Public Power Agency and its legal counsel be and are hereby authorized to take all such further actions necessary or desirable for the implementation of the agreements referenced in (a), (b), (c), and (d) above.

Staff Commentary:  On June 4, 2001, the Michigan Public Power Agency (MPPA) and Michigan South Central Power Agency (MSCPA) filed suit against Consumers Energy Company (Consumers) and Michigan Electric Transmission Company (METC).  The suit was initiated when Consumers began efforts to transfer its transmission system to its affiliate METC in advance of an anticipated ultimate sale to an independent third party.  The basis of the suit arose out of nine (9) agreements between MSCPA and Consumers and eighteen (18) agreements between Consumers and MPPA.

The lawsuit has been favorably settled subject to the express provision that the respective Boards (BWL included) review and approve the settlement documents.  A Summary of Agreements with Consumers and Affiliate (METC) and a Summary of Agreement with the anticipated independent third party purchaser (Trans-Elect) along with a matrix of claims and requested relief and settlement outcome are attached.

Moved by Commissioner Royal, seconded by Commissioner Wonch, that the resolution be approved.

Discussion:  General Manager Pandy, Assistant General Manager Cook, and MPPA General Manager Gary Zimmerman reviewed the details of the settlement associated with the sale of the Consumers Energy Transmission System to Trans-Elect.  Discussion included the following points:

• Consumers Energy stated purpose for selling its transmission system
• Consumers Energy activities to prepare for the sale of their transmission system
• A map was displayed depicting Consumers Energy’s 5,400-mile transmission grid (345 kV system and the 138kV looped system) being sold.
• Issues concerning assignment of existing MPPA/BWL rights to the new owners
• Settlement activities, provisions and implications of existing agreements listed below:
  1. Operating Agreements (BWL/MPPA)
  2. Facilities Agreements (BWL)
  3. Ownership Agreements (BWL/MPPA)
  4. 1979 Antitrust Agreement (BWL/MPPA)

Mr. Zimmerman presented an overview of the existing agreements.  Following a question and answer period, the Commissioners concurred with staff’s recommendation.

Action:  Carried unanimously.

ERICKSON STATION REPAIRS – UPDATE REPORT

Cold Reheat Line Failure Update:  General Manager Pandy and Production Director Dick Peffley presented an overview of events that led to the cold reheat line failure at Erickson Station during a routine restart on October 17, 2001.  Mr. Peffley reported on procedures to be implemented to prevent similar accidents from happening again.  Slides were displayed showing the inside of the Erickson plant after the startup accident where the reheat line failed and the disassembled turbine is being inspected for internal damage.  The cold reheat line is targeted for completion by early February and the turbine overhaul by mid-February, 2002.  When the turbine covers are lifted next week, any significant damage to the turbine could extend the schedule and cost of overhaul.

Mr. Pandy reported that early indications of the Erickson repair schedule targeted a completion date of April 2002.  After analyzing the conditions in the power market and the BWL’s rights and obligations with the power pool, it was decided in a joint meeting between the BWL’s Production Process and Bulk Power and Resource Planning personnel, to move the schedule up six weeks to bring the unit back into service by February 15, 2002.  Most of the work will be performed in-house.  If the schedule can be met, the BWL would realize capacity payments of approximately $500,000 next year.  Mr. Pandy congratulated the employees involved for their ambitious efforts as they strive to meet the April goal.

Tornado Damage Update:  Production Director Dick Peffley reported on the progress in replacing the Erickson Station cooling tower after a tornado leveled it on September 9.  This project is scheduled for completion by mid-January 2002.  Slides were displayed showing the Erickson Station after the cooling tower was destroyed by the storm.

Discussion:  In response to Commissioner Creamer’s inquiry, Mr. Peffley responded that approximately 25% of Erickson Station operators can cycle a unit properly.  Many employees at Erickson never have the opportunity to see the unit cycle due to employee turnover from retirements and internal transfers.  Mr. Peffley noted that Eckert Station operators all know how to cycle a unit because it is a routine procedure at that plant.  Unlike Eckert, the Erickson unit is too large to cycle as frequently, which does not make it cost effective.  Erickson Station management is investigating the possibility of unit cycling for training purposes (as is done at Eckert).  If this is not feasible, especially in the summer months, the operators will be sent to Eckert Station for experience.  In response to Commissioner Callen’s inquiry, Mr. Peffley reported that there were seven notices of possible disciplinary action issued.  Human Resources is investigating the incident to determine the appropriate action.  A report is anticipated by the end of the week.

This item was presented for information purposes.  No action was required.

RESOLVED, That the Board of Water and Light (BWL) enter into a Lease Agreement (Agreement) with JAIX Leasing Company of Chicago, Illinois, for the supply of rail cars.  The Agreement particulars are as follows:

1)               The term of this Agreement shall be twenty-four (24) months (January 1, 2002 – December 31, 2003).

2)               JAIX shall provide one (1) train set, totaling 113 steel bottom hopper coal rail cars with the assurance that they will maintain the integrity of the train sets at all times during the term of the lease.

3)               The lease rate shall be $265.00 per car per month (full service – inclusive of all normal maintenance expenses).

Staff Commentary:  By entering into this lease Agreement with JAIX, BWL will be able to guarantee a rail car supply for the delivery of Colorado Basin (CB) coal from Colorado at substantial savings.  These cars will be dedicated to supply Erickson Station.  Union Pacific Railroad (UPRR) has given BWL a transportation rate reduction of $1.50 per ton for the use of non-UPRR owned rail cars.  The lease rate will provide an estimated savings of $0.49 per ton for the estimated movement of 425,000 tons of CB coal per year.  This lease Agreement is projected to yield an annual transportation savings between $200,000 and $210,000.

Moved by Commissioner Creamer, seconded by Commissioner Royal, that the resolution be approved.

Action:  Carried unanimously.

 

RESOLVED, That the following Capital Budget Projects for fiscal year 2002 be increased and/or added:

Staff Commentary:  This resolution is being submitted in accordance with Board Policy regarding additions to the capital budget, and Board Policy 15-02 adopted January 25, 2000 and amended June 26, 2001, for the reporting and approval of any budgeted capital project exceeding 15% or $200,000 of estimated cost.

The following report was submitted summarizing the need for the additions/modifications: is included below:

Erickson Cooling Tower Replacement:  On September 9, 2001 the cooling tower at the Erickson Station was damaged beyond repair.   Erickson Unit #1 cannot be operated without a cooling tower in service.  The total cost to rebuild the tower now is estimated to be $4,020,000.  Given the FY 2002 Capital Budget included $118,000 for this project, it was requested that the FY 2002 Capital Budget for this project be adjusted by an additional  $3,902,000.  The BWL is currently working with its insurance carrier on recovery and is anticipating approximately $3,500,000 in reimbursement.  If the insurance reimbursement is $3,500,000, the net impact on cash flow in FY 2002 is $402,000.

The difference between the $4,020,000 estimate and the anticipated $3,500,000 insurance reimbursement is related to the insurance deductible ($250,000) and the additional BWL requested features on the new tower relating to plume abatement and needed capacity increases.  The timing of the reimbursement from the insurance company is also uncertain.

As a final note, it should be noted that the FY 2003 budget would be reduced as a result of replacing the cooling tower in FY 2002.

Erickson Cold Reheat Line Repair:  On October 17, 2001 while returning to service from a minor forced outage, Erickson Station Unit #1 experienced an extensive failure of the cold reheat line.  The cold reheat line supplies steam from the boiler to the intermediate portion of the turbine.

The repair/replacement costs associated with this project are tentatively estimated at $2,000,000, with the unit expected to be available for service in late February.  Further detailed inspections are currently in progress on the cold reheat line, boiler, and turbine to more clearly determine the full extent of damage and necessary repairs.

It is anticipated that the BWL’s insurance provider will reimburse $1,000,000 of the necessary repair costs.  The timing of the reimbursement is, however, uncertain.  Once reimbursement is received, the net impact on the FY 2002 Capital Budget is $1,000,000.  The difference between the $2,000,000 project cost and the $1,000,000 expected insurance reimbursement is the insurance deductible.  In the event that the damage is determined to be more extensive, and added costs experienced, it is anticipated that the BWL net exposure will remain at the $1,000,000 insurance deductible.

Erickson Station Turbine Overhaul:  The Erickson turbine/generator was originally scheduled for overhaul in the FY 2003 Capital Budget.  Erickson’s last overhaul was in 1991.  Since the recent cold reheat line failure described above will require removal and reinstallation of the turbine cover to inspect the turbine internals for damage, overhauling the turbine during the existing cold reheat line repair outage will reduce the costs over a separate overhaul and outage in FY 2003.

Completing the turbine overhaul in FY 2002 versus FY 2003 will also provide added savings due to improved turbine performance and reduced production costs.  Coordinating the turbine overhaul outage with the cold reheat line repair outage will eliminate the need for an extended FY 2003 Erickson outage and subsequent purchase power and production cost impacts.  Added purchase power costs expected for the combined turbine overhaul and cold reheat line repair outage are anticipated to be on the order of $1,000,000.

The Erickson Station turbine overhaul being done in FY 2002 will increase the FY 2002 capital budget by $776,000.  An additional $700,000 in operation and maintenance expenses will also be required to complete the overhaul.  A $776,000 reduction in the FY 2003 capital budget will be realized.

Moved by Commissioner Haggart, seconded by Commissioner Wonch, that the resolution on FY 2002 Capital Budget Additions/Modifications be approved.

Discussion:  Chief Financial Officer Dana Tousley presented a preliminary overview of FY 2002 Capital Budget changes.  In response to Commissioner Duncan’s question, he clarified that the three capital projects in the increased amounts are necessary for FY 2002.  Staff is currently reviewing all projects contained in the capital budgets for FY’s 2002 and 2003, looking for projects that may be shifted from 2002.  For instance, the cooling tower project was scheduled in the long-range capital forecast.  These recent incidents are expected to have an impact on both the operating and capital budgets for this fiscal year.  Commissioner Duncan stated that she understands the necessity for the Board to authorize the repair projects at this time.  She expressed her hope that alternatives to the mid-year budget would be presented in January to return back in the aggregate to the original amount of the capital budget.

Action:  Carried unanimously.

FISCAL YEAR 2001-02 O&M BUDGET UPDATE

General Manager Pandy reviewed the preliminary fiscal year 2002 budget revisions, which included items that prompted staff to suggest a mid-year review of the budget.  Chief Financial Officer Tousley presented a table summarizing the impact on the current operating budget.  He noted that insurance reimbursements are anticipated for most of the damage at Erickson Station.  Other changes required in the Capital Budget for FY’s 2002 and 2003 are not reflected on this table.  All of the Capital and O&M changes will be reflected in the six-year cash flow to be presented in January.

$ X 1000

Commissioner Creamer inquired about the Non-Bargaining Compensation for performance dollars over the 5 percent increase that was budgeted.  General Manager Pandy responded that salary increases are reflected in the current fiscal year 2001-02.  Chief Financial Officer Tousley interjected that in addition to performance increases for non-bargaining employees, this amount also includes Share the Success (STS) payouts.  Mr. Tousley responded that a forecast of approximately 5 percent was projected and the amount came in higher than anticipated.  He stated that all BWL employees (bargaining and non-bargaining) can earn corporate bonuses ranging from 0 to 2.5 percent of annual pay for reaching corporate STS performance targets.  Non-bargaining employees can earn additional Process STS bonuses ranging from 0 to 5 percent for reaching performance targets in the Processes where they work.  Commissioner Duncan stated that she was under the impression there was an organizational cap with respect to performance pay and that an aggregate amount was budgeted for the increases.  The Budgetary parameters for performance increases was summarized by General Manager Pandy which involved increases in the range of 0 to 7.5%, based on performance appraisals.  Commissioner Callen commented that the budgeting process by which projections are based would be of interest to the Finance Committee in the upcoming budget review.

In response to Commissioner Marin’s inquiry, General Manager Pandy explained that Share the Success (STS) is a pay for performance plan that the BWL has had for approximately 15 years.  The corporate STS ties annual bonuses to the performance of the BWL, for all employees.  The process-related portion of STS applies to non-bargaining employees, which differentiates bonuses for each of four major process areas based on the results of their process (Production, Delivery, Process Support and Business Support processes).  The program is similar to a gain-sharing program.

Mr. Pandy reviewed the cumulative net income for the electric, water and steam utilities graphically displayed over the last ten years.  The consolidated financial statements for water, electric, steam and general properties through October 2001 indicate:

This item was presented for information purposes.  No action was required.  The Finance Committee will be reviewing this item in January.

RETURN ON EQUITY

General Manager Pandy discussed the City Attorney’s letter, dated November 13, 2001, advocating that the agreement reached regarding Return on Equity payments to the City from the Board of Water and Light be modified to reflect its previous title of Return on Equity rather than Payment in Lieu of Taxes.  A letter sent to the City Attorney by Mr. Pandy, dated November 21, 2001 indicated that the BWL desires to have its financial statements on a comparable basis with other public power systems.  Staff Attorney Larry Wilhite stated that he has been in discussion with the City Attorney on this matter, but that a conclusion has not been reached.  Mr. Pandy asked the Commissioners for their guidance on this issue.  Following discussion, the Commissioners concurred that it is more important to have an agreement rather than to debate over the name.

GENERAL MANAGER'S REMARKS

Annual, Planned and Bonded Capital Projects.  General Manager Pandy handed out a summary status report of Annual, Planned, and Bonded Capital Projects through October 31, 2001, which contained the following information:

Commissioner Callen noted that approximately two years ago the Board emphasized the fact that there were a number of projects that were coming in at 10% to 30% over budget.   This year the number is lower.  He asked what changes have been made in estimating projects that caused the improvements.  Assistant General Manager Cook responded that two factors are contributing to the positive number:  First, it is still early in the budget year and secondly, the Commissioners passed a resolution in January 2000 and amended it in June 2001 directing staff to notify the Board of projects exceeding 15% or $200,000 of the estimated cost.

American Public Power Association (APPA) Legislative Rally.  General Manager Pandy reported that the APPA will hold its annual legislative rally in Washington, D. C. on January 27-30, 2002 focusing on “Public Power – An American Tradition that Works.”  He urged Board participation in this rally.

Commissioner Callen urged the Commissioners to participate in APPA meetings.  He indicated that this is an opportunity to get a macro view on what other municipals are doing and what is happening between municipal utilities and federal endeavors, particularly at a time when energy is near the top of the list on administrative and legislative agendas.

Update on Competitive Issues.  General Manager Pandy reported that competition continues all around the BWL service area.  He reported on a project that was recently awarded to Consumers Energy.

Water Customer Choice.  General Manager Pandy reported that he has met with IBEW Local 352 President Joe Davis and Business Agent Curt Gates to share with them information on the Water Customer Choice program.  Future meetings will be held to talk about ways to make the program more effective and address the union’s concerns over job security.

Rules and Regulations for Water Service.  Commissioner Creamer remarked that he recently reviewed the section on the Water Customer Choice Program in the Rules and Regulations for Water Service, and noticed it indicates the BWL will accept and permit customer installation of customer water service and on-site water mains, provided the installation of customer water services and/or on-site water mains has been inspected and approved by the Board of Water and Light.  He opined that either the BWL should not contract with somebody outside of the BWL or the guideline should be changed.  He requested a clarification with Rules and Regulation item 9 (Water Customer Choice Program), Section 1.(7), which states: “Where the Customer is not subject to the codified ordinances of the City of Lansing.”  He noted that it suggests to the reader that if the customer is governed by the codified ordinance of the City of Lansing that Customer Choice is not available in that jurisdiction.

General Manager Pandy reported that the old Building and Housing Code of the City of Lansing, Section 1422.17 stated that all water service pipes installed between city water mains and City water meters would be installed, inspected and maintained by the BWL in accordance with all applicable City codes.  The City adopted Ordinance No. 1040 on October 15, 2001, which in part repealed section 1422.17 and implemented the State-approved Plumbing Code within the City’s jurisdictional boundaries.  Mr. Pandy indicated that the City went from its own code to the State’s Code, however the State Code language had no reference to the previous language.

Commissioner Haggart clarified that the City had to make the change to Ordinance No. 1422.17 in order to comply with the state law.

Commissioner Creamer expressed concern over the inconsistency between the BWL Rules and Regulations and what is actually being practiced.  He requested that the Water Customer Choice Program as defined in the Rules and Regulations be reviewed for consistency.  He also noted that City Councilmembers are interested in understanding how the Customer Choice program will be available for the installation of separate meters for lawn sprinkling.

General Manger Pandy agreed to review the concerns relevant to the Rules and Regulations.  Staff will also work with the union to develop a strategy for dealing with the code change.  Mr. Pandy emphasized that management’s position with regard to inspections is for this work to be done by BWL employees.  Due to the increased workload, it became necessary to recruit competent BWL retirees to do the inspections.  Tetra Tech employees were later contracted to handle the work overflow during peak times.

COMMISSIONERS’ REMARKS

Human Resources Committee Meeting.  Commissioner Royal stated that she would like to call a Human Resources Committee meeting in December.  She will be sending out a memo asking for Commissioner input on FY 2002 goals for the General Manager.

Wolverine Gas Pipeline Update.  Commissioner Duncan asked if the alternate route for the Wolverine Pipeline addresses management’s concerns relative to the proposed route being too close to BWL facilities.

General Manager Pandy responded that staff has met with Wolverine Pipeline representatives to discuss this issue.  The original route of which the BWL objected was proposed to run parallel along I-96 through south Lansing along the Consumers Energy and BWL 138kV transmission right of way.  The pipeline would also have come within 200 feet off the BWL’s Wise Road Water Conditioning Plant.  The alternate route is in the right-of-way of I-96 on the south side of the City in the area between the shoulder of the road and the fenced perimeter, which is the highway right of way.  The new route places the pipeline away from the BWL facilities.  Staff plans to meet with the City soon to discuss their position on this matter.

GreenWise Power Update.  Commissioner Creamer requested an update on the GreenWise Electric Power program and asked if bill board advertising has made an impact on participation.

Communications Director John Strickler reported that participation in the GreenWise Electric Power program has not yet reached its full potential.  Enrollments are at approximately 750 blocks of 250 kilowatt-hours out of a total available 2700 blocks.  Efforts are underway to develop plans to attract more commercial customers.  The possibility of franchising with Michigan Public Power Agency members is also being investigated.  With regard to billboard advertising, the impact on brand imaging should be known soon after Customer Attitude Survey results are compiled.  Included in that information will be input to determine the impact the GreenWise campaign has made on the BWL’s image with respect to perceptions of environmental responsibility and to what extent customers are looking at other advertising messages relating to the BWL’s brand image.

Commissioner Creamer questioned at what point should it be determined when is the right time to stop allocating marketing dollars into a project that may not be viable.

Mr. Strickler responded that if the GreenWise Electric Power program is not fully subscribed and there is an indication that there is still not sufficient demand, additional blocks would not be added to the portfolio.  He noted that the survey data from an image standpoint should be carefully scrutinized to determine what the GreenWise program is doing in areas other than just enrollments.

Welcome to Commissioner Marin.  Commissioner Haggart welcomed Commissioner Marin to the Board.  He also commended Production Director Dick Peffley for his efforts in attempting to bring the Erickson Station back on line ahead of schedule.

Commissioner Marin commented that she is pleased to be a member of the Board of Commissioners and looks forward to working with the Board and management.

Chairman Callen welcomed Commissioner Marin, and reported that he has assigned her to serve on the Human Resources (HR) Committee, replacing Commissioner Christian.  This assignment will relieve Commissioner Christian who was temporarily serving on both the Human Resources and the Finance Committees until the HR Committee vacancy was filled.  Commissioner Callen also welcomed City Councilmember Harold Leeman who was present in the audience.

New Approach in Setting the Meeting Agenda.  Chairman Callen reported that at the Board’s last retreat held November 2000, the Commissioners agreed to shift monthly meetings to quarterly regular meetings and place more emphasis on the Board’s two major committees—Finance and Human Resources.  Commissioner Callen stated that in the last month he has made a special effort to try to move the Board more in the direction of convening committee meetings to thoroughly study topics of importance.  He reported that he has met with Commissioners Duncan and Royal, chair of the Finance and Human Resources Committees, respectively, to discuss approaches and suggest agenda items.  In addition to that change, he expressed his preference to shift the approach in the way the agenda is put together.  Chairman Callen invited input from the Commissioners and committee chairs and said he looks forward to their suggestions for agenda topics for both Board and committee meetings.  The Corporate Secretary will send out a memo to the Commissioners prior to the next meeting for suggestions for agenda topics.  Commissioner Callen will work with General Manager Pandy in finalizing the agenda.

EXCUSED ABSENCE

On motion by Commissioner Duncan and seconded by Commissioner Haggart, that the absence of Commissioner Christian be excused.

Carried 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

There being no objection, the meeting adjourned by unanimous consent at 7:03 p.m.

/s/ Mary E. Sova, Secretary
Filed with Lansing City Clerk
December 4, 2001.