MINUTES OF THE BOARD OF COMMISSIONERS' SPECIAL MEETING
LANSING BOARD OF WATER AND LIGHT
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Tuesday, April 23, 2002
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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 Ron Callen called the meeting to order.
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Absent: |
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The Secretary declared a quorum present.
All said the Pledge of Allegiance.
Chairman Callen welcomed Lansing City Councilmembers Geneva Smith and Carol Wood who were present in the audience.
APPROVAL OF MINUTES
Motion made by Commissioner Christian, seconded by Commissioner Duncan, to approve the minutes of special session held January 22, 2002.
Carried unanimously.
Motion made by Commissioner Christian, seconded by Commissioner Duncan, to approve the minutes of special session held March 5, 2002.
Carried unanimously.
Motion made by Commissioner Wonch, seconded by Commissioner Duncan, to approve the minutes of the Board Retreat held March 15-16, 2002.
Carried unanimously.
There being no objection, the rules were suspended to introduce a resolution of tribute to David C. Emmons on his retirement from the Board of Water and Light.
RESOLUTION HONORING DAVID C. EMMONS
(Resolution 2002-4-18)
Whereas, It is with deep appreciation for the hard work, dedication and many contributions that David (Dave) C. Emmons has put forth on behalf of the Board of Water and Light (BWL) and the Greater Lansing community that we offer this expression of our thanks and best wishes on his retirement; and
Whereas, Dave Emmons’ entire 34-year career was devoted to the BWL. Hard work and dedication eventually led him through an extraordinary career progression, ranging from a Service Clerk, Supervisor, General Supervisor, Superintendent, to the position of Director of Delivery. The major emphasis of his career focused in the electric construction business. Over the past four years, he was involved in the engineering, design and construction of electric, water, and steam utilities; and
Whereas, During the course of Dave Emmons’ long and productive service with the BWL, he contributed to its growth and reputation. In this, Dave’s personal sense of dedication, integrity, and thoroughness has proven invaluable. The people who depend upon reliable utility services have benefited enormously because of Dave Emmons’ years of experience; and
Whereas, Dave Emmons generously shared his experience and knowledge by serving as President of the Lansing Area Safety Council and his membership with the American Public Power Association.
RESOLVED, That we commend and congratulate David C. Emmons on this 23rd day of April, 2002, for a successful thirty-four years of devoted service to the Board of Water and Light. May he enjoy many years of great golfing, fishing, boating, bowling and snowmobiling at his future new home at Houghton Lake.
Moved by Commissioner Royal, seconded by Commissioner Christian, that the resolution of tribute be approved as presented.
Action: Carried unanimously
Mr. Emmons thanked the Board of Commissioners, management and all the employees whose dedication made his job easy and enjoyable.
Water Tapping Teams Honored
General Manager Pandy introduced the BWL’s Water Tapping Teams who took first place in the Men’s and Women’s divisions at a statewide competition in February. The contest sponsored by the Michigan Section of the American Water Works Association (AWWA) simulates a water service connection for a typical residential customer. Members of the Men’s team are: Jim Valentine, Randy Jones, Leon Flores and Coach Remecho Sanders. The Women’s team includes Diana Paul, Patricia Clark, and Bobbi Johnson. Brian McLeod, Manager of Electric, Water and Steam Transmission and Distribution, was also present in the audience. The teams will now represent the BWL and Michigan in competition at the AWWA National Conference in New Orleans, June 12-16.
Chairman Callen congratulated the tapping teams on behalf of the Board for their achievements and wished them well at the national competition.
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.
Lansing City Councilmember Carol Wood addressed the Board regarding “customer choice” for water service installations and water main installations within the City of Lansing. She asked the Board to first evaluate the Water Customer Choice Program currently being offered in the surrounding townships to assess its effectiveness. She expressed concerns with the current inspection process, which has not been carried out adequately. She stated that customer service is first and foremost for everyone. She urged the Board to explore the inspection and contractor quality concerns further before making a decision on offering Water Customer Choice in the City of Lansing.
Joseph Davis, President of IBEW Local 352, spoke against offering Water Customer Choice in the City of Lansing. He distributed an informational packet containing hard copies of a slide presentation on the Water Customer Choice Program. The packet also included an overview of the program, the union’s request and suggestions and written comments from Water Department employees. He stated that issues would be brought forward during the public comment portion of the meeting from employees regarding quality concerns such as improper meter installations by contractors.
David Nicklesen, Developer/Owner of Nicklesen Properties, LLC, spoke in favor of Water Customer Choice in the City of Lansing. He stated that his company is currently building a new commercial building in the north end of the Lansing city limits. He said that costs and fees associated with bringing the waterline into the site and building are excessive as compared to bids received from private contractors. He handed out a letter outlining the comparisons.
BWL employee Jim Dravenstatt, Customer Account Representative (CAR), spoke against Water Customer Choice in the City of Lansing. He displayed four photos concerning jobs he visited, which involved defective work by contractors. He reported on several incidents that involved faulty work done by contractors on the combined sewer overflow (CSO) project resulting in loss of revenue for the BWL. He noted that BWL inspections and timely billings are critical to the success of this process. Mr. Dravenstatt stated that he would hope “it will be Lansing Board of Water and Light employees knocking on the door of City of Lansing customers providing customer service, professionalism and craftsmanship that has been done so well over the past 117 years.”
Robin Smith, 3501 Ronald, Lansing, spoke in favor of Water Customer Choice in the City of Lansing by presenting her views as a Lansing resident and on behalf of the Pentecostal Outreach Church located on 2645 W. Holmes Road. She reported on the building project that is underway at the Pentecostal Outreach Church. She stated that the Customer Choice Program encourages competition and helps keep project costs down. She noted, for example, that project costs would be approximately 30 percent higher if BWL union workers do the water service installation work. She remarked that co-existence of labor forces is possible.
BWL employee Mark Hammond of Field Service Metering spoke against Water
Customer Choice in the City of Lansing. He asked the Commissioners to consider
the following issues as they debate whether to open Water Customer Choice in the
City of Lansing: 1.) BWL employees make multiple trips to job sites to correct
substandard work done by contractors,
2.) BWL employees end up having to satisfy customers impacted by the
contractors’ errors,
3.) many of the contractors are not from the Lansing area, and 4.) BWL service
has grown from 123,000 meters to 151,000 in year 2001. He urged the Board to
support the local community by choosing BWL employees over contractors from out
of town.
BWL employee Ricardo Valles, Equipment Operator of Water and Steam Transmission, spoke against Water Customer Choice in Lansing. He stated that he came to Lansing from another municipality to work for the BWL. He related several incidents that involved work performed by private contractors. An example involved a residential customer at a CSO project area who was angry because the contractor left a “mess,” and the BWL was blamed. To satisfy, the customer, the BWL cleaned up the site. Mr. Valles gave an account of situations at other cities involving contractors who performed the majority of the construction work and later filed for bankruptcy because they did not have the cash to correct their errors.
Mark Miller, representing the Lansing Laborer’s Local, spoke against Water Customer Choice in the City of Lansing. He stated that unions bring commitment and integrity into the workforce because of the training the union provides its members. He said that small contractors do not provide the extensive training offered by unions. He stated that union workers are trained to do the job right the first time. He urged the Board to keep the union involved in the City of Lansing.
BWL employee Charles Bryant, Equipment Operator of Water and Steam Transmission and Distribution, spoke against Water Customer Choice in the City of Lansing. He stated that the BWL’s main concern should focus on security of its water supply. He said that BWL must do everything it can to assure that citizens of Lansing are protected from possible terrorist incidents. He expressed his concern that BWL has no assurance who is actually being employed by the contractors. He also stated that safety, customer focus, and quality of craftsmanship are what the employees of IBEW Local 352 represent at the BWL.
BWL employee Patrick Martin, Meter Specialist of Water and Steam Transmission, spoke against Water Customer Choice in the City of Lansing. He stated that customer satisfaction measures have been very favorable over the years because of BWL employees’ focus on providing high quality service to customers. He expressed concern over quality and errors that occur due to contractor installations. He stated that BWL must recover the cost for multiple inspections.
BWL employee Jeff LaChance, Meter Reading Specialist - Account Services, spoke against Water Customer Choice in the City of Lansing. He stated that he is a former president of IBEW Local 352 and a chief steward in the union. He told the Board that he participated in crafting the BWL’s Vision Statement. He pointed to the first line of the Vision Statement, which states: “The Vision of the Lansing Board of Water and Light is to be the only utility our customers will accept.” He called attention to the line that states, “Sensibly pursue growth.” He noted that growth has been accomplished in the outlying areas. He also noted that employees cannot develop to their full potential if work is taken away.
Chad Husted of Lansing, representing Hirsch Construction in Grand Ledge, spoke in favor of Water Customer Choice in the City of Lansing. He stated that he is the construction manager for the Pentecostal Outreach Church project. He said that his job is to bring in the most competitive pricing for the project. He noted that the church was not given an option as to what it would pay for the site utilities. Unit pricing and labor rates were considerably higher than what he has been seeing. In comparing BWL pricing options with other contractors, he found there were significant cost savings with independent contractors for the exact work. He said that he favors competition and would hope the Board would consider extending competition to the City of Lansing through Customer Choice.
COMMITTEE OF THE WHOLE
The Committee of the Whole met on February 26, 2002 at 5:30 p.m. to discuss the following items:
1. Electric Strategic Plan
2. Environmental Performance
3. Security Measures
4. KeyMeter and Surge Protection Programs
5. Final R. W. Beck Report
6. Policy on Employment of Relatives
7. Share the Success Program
Present were Commissioners Ron Callen, Ernest Christian, Charles Creamer, Nancy Duncan, Connie Marin, Diane Royal, and Nancy Wonch (arrived at 6:50 p.m.). Absent was Commissioner Tim Haggart.
Security Measures. Security Administrator Jerry Mills reported on the current status of security at the Eckert/Moores Park Plants, Erickson Plant, Brush Electric Operating Center (BESOC), and substations. Photos, locations, access and descriptions of the various facilities were reviewed in detail. Security upgrades at various BWL facilities include security surveillance cameras, fences, gates, improved lighting, locked doors, and guards on foot and vehicle patrols as well as alarms. Additional security measures are being explored for the Eckert Plant. All BWL employees, vendors, and contractors are required to wear exposed I.D. cards. Security continues to monitor the national scene, and continued cooperation with the FBI and local law enforcement is ongoing. The BWL has been participating in City of Lansing training programs and maintains emergency preparedness in-house through the BWL’s Operational Emergency Communication Center. Mr. Mills noted that BWL employees have been very responsive to security issues. Following discussion, Mr. Mills agreed to develop a long-range security plan for the BWL.
KeyMeter Program. Linda Rasor, Sales and Marketing Major Accounts Analyst for Strategic Accounts and Product Development, presented an overview of the KeyMeter program for large commercial and industrial customers. KeyMeter is a web-based energy management E-tool that allows subscribing customers to view their energy profile, within a 24-hour window, from their own Internet accessible PC. General Motors was the test market for KeyMeter. GM currently has seven Lansing plant locations on the BWL’s KeyMeter system. The program allows energy management, demand side management, expense control and accountability. Actual BWL metered usage is posted every 24 hours, and service is based on a monthly subscription that customers pay on their monthly energy bill. There is no capital expense for the BWL or the customer. The KeyMeter program is offered through Hometown Connections, a subsidiary of American Public Power Association offering products and services to APPA members. Ms. Rasor gave an online demonstration of the KeyMeter Internet metering service.
Surge Protection Service. Sue Warren, Sales and Marketing Major Accounts Analyst for Strategic Accounts and Product Development, presented a business case for a proposed surge protection service for residential and small commercial customers. This service is targeted for residential homeowners who are interested in protecting their household appliances and electronic equipment. It also targets small commercial businesses with services less than 200 amps. Future target markets include larger commercial and industrial customers that require customized surge protection devices. This equipment is sensitive to lightning strikes, power transients, and system surges. Ms. Warren noted that the meter socket adapter does not protect the electronics; it only protects the mechanical devices for the home. The meter socket adapter would be owned, installed and maintained by the BWL and leased to customers. Plug-in strips would be purchased and installed by the customer. The following points were discussed: pricing structure, market research, vendor selection, BWL infrastructure costs, economic parameters, risk analysis, promotion plan and implementation status.
Following discussion, the Commissioners expressed interest in this program, but approval of the surge protection proposal was tabled subject to some questions being resolved about the program warranties covering damaged equipment.
R. W. Beck Report was received and referred to the Finance Committee for staff comment.
Policy – Employment of Relatives. This item was referred to the Human Resources for review and recommendation.
Share the Success Program. This item was referred to the Human Resources Committee for review from a policy perspective and the Finance Committee to consider the financial impact.
Other Issues Discussed:
Ø Discussion was held on the importance for the Commissioners to have an opportunity to discuss and vote on issues related to political philosophies before statements are issued on behalf of the BWL.
Ø The Commissioners conveyed their congratulations and best wishes to the BWL water main tapping teams as they prepare to compete at the American Water Works Association National Conference to be held June 16-20 in New Orleans.
Ø BWL employees were commended for their work and participation in the Habitat for Humanity project on Dibble Street in Lansing.
Ø Commissioner Callen reported on his participation at the American Public Power Association (APPA) Legislative Rally in Washington, D.C. He found it to be an interesting experience observing hundreds of people from municipal utilities from around the country working together.
Ø General Manager Pandy gave an update on the Ottawa Station development and briefed the Commissioners on three developers who have expressed interest in the project. The Commissioners concurred that the BWL should cooperate with all interested developers and the City of Lansing to seek the best possible development.
The meeting adjourned at 8:20 p.m.
Respectfully submitted,
Charles M. Creamer
Chair Pro Tem
COMMITTEE OF THE WHOLE
Moved by Commissioner Creamer, seconded by Commissioner Christian, that the Report of the Committee of the Whole be approved as presented.
Action: Carried unanimously.
(Resolution 2002-4-1)
The Human Resources Committee met on April 9, 2002 at 5:00 p.m. to discuss the following items:
Employment of Relatives
Corporate Diversity
Weapons in the Workplace
Present were committee members Callen and Haggart. Absent were Commissioners Marin and Royal.
1. Employment of Relatives
The background for the development of the proposed policy on employment of relatives was discussed. The intent of the policy is to prohibit an employee from reporting directly to another relative who is in a salaried-managerial or supervisory capacity. BWL neither encourages nor discourages spouses or employees’ relatives from employment at the BWL, if such employment does not conflict with the provisions of the proposed policy. The policy would apply to all Non-Bargaining Unit employees and management. Discussions on the employment of relatives are currently underway with the Bargaining Unit.
Recommended Action
RESOLVED, That the Board of Commissioners hereby adopts the following Board of Water and Light Policy on the Employment of Relatives.
Policy on the Employment of Relatives
(Resolution #2002-4-2)
The Lansing Board of Water and Light (BWL) desires to avoid even the appearance of favoritism in employment matters and to assure its employees and customers that an employee’s hire, transfer, or promotion is based solely on the employee’s qualifications and performance.
For that reason, the BWL neither encourages nor discourages spouses or employees’ relatives from employment at the BWL, if such employment does not conflict with the BWL Procedures on the Employment of Relatives stated below.
As of May 1, 2002, the BWL will not hire, transfer, or promote an employee to work in the same Responsibility Area (RA) where a relative of the employee is currently working if a direct-reporting relationship would be created between the two employees.
Exceptions to this policy may be permitted on an infrequent basis for reasons related to exigent operational needs of the BWL.
The General Manager, or a designated representative, shall establish procedures consistent with this policy and be responsible for its implementation.
BWL Procedures on the Employment of Relatives
This procedure governs the employment of relatives within the same Responsibility Area (RA) and applies to all non-bargaining unit employees and management. (A copy of the current RA’s is available from Human Resources.)
As of May 1, 2002, the BWL will not hire, transfer, or promote an employee to work in the same RA where a relative of the employee is currently working if a direct-reporting relationship would be created between the two employees.
As a condition of hire, transfer, or promotion, an employee must disclose whether he or she will be reporting to or supervising a relative.
Employees who are in a direct-reporting relationship with another relative prior to May 1, 2002, may remain in their current positions unless a conflict or problem arises due to the relationship. In those cases, BWL will follow the procedures set forth below under “Resolution of Conflicts.”
This procedure is intended to prohibit the development of the following circumstances:
· An employee reporting directly to another relative who is in a salaried-managerial or supervisory capacity. This procedure is intended to eliminate perceptions of favoritism in job assignments, training, shift assignments, promotions, hires, transfers, performance evaluations, disciplinary action and other similar situations.
· A promotion or transfer that creates a situation where one employee is directly reporting to another relative. Employees will continue to be promoted and transferred based upon qualifications and performance.
· An employee who marries another employee within the same RA will be permitted to continue working in that same RA, unless a direct-reporting relationship exists between the two employees. In such cases, the BWL will follow the procedures set forth below under “Resolution of Conflicts.”
Exceptions
Exceptions to this procedure may be permitted on an infrequent basis for reasons related to exigent operational needs of the BWL, only where:
1) It can be reasonably demonstrated that:
a) an operational emergency exists or is imminent; or
b) there is apparent or probable shortage of alternative, qualified, and available personnel resources in the RA; or
c) an exception is otherwise reasonably warranted based upon the prevailing circumstances.
2) The exception is documented in writing and approved by the highest level non-relative supervisor and the Human Resources Director.
Resolution of Conflicts
In the event an employment relationship covered by this procedure creates a problem or conflict within the RA, or if an employee has failed to disclose a direct-reporting relationship with a relative, the employee(s) will be counseled and informed that if the same or an additional problem occurs within the next 12 months, both of the employees will be given 90 days to bid out or transfer out of the RA. If neither party bids out or transfers, the Process Manager or Director will transfer the junior employee into a comparable position within the Process, if possible. If the transfer is not possible within the Process, the employee will be referred to Human Resources for transfer to another Process where a comparable position exists.
In all cases, BWL reserves the right to apply appropriate disciplinary action for violations of this procedure, up to and including discharge.
2. Corporate Diversity
Graphical data depicting BWL workforce diversity and utilization of minorities and females compared to the Tri-County area availability of workforce was reviewed. The data indicates a BWL total average of 18.1% minority employees as compared to the Tri-County area’s total average of 11.8% and an average of 23.3% female employees as compared to the Tri-County’s total average of 47.2%. The data also compared workforce diversity and utilization for each job classification.
The BWL Supplier Diversity Program for Calendar Year 2001 was discussed. A status report on supplier diversity for Calendar Year 2001 showed significant accomplishments in the areas of increased suppliers in the BWL’s Supplier Diversity Directory and increased purchases with diverse suppliers. Diversity training for employees with authority to purchase will continue to support increasing BWL expenditures with newly identified diverse suppliers.
RESOLVED, That the Board of Commissioners hereby adopts the following Board of Water and Light Policy on Corporate Diversity. This policy shall take effect immediately upon its adoption.
CORPORATE DIVERSITY POLICY
(Resolution #2002-4-3)
As a public utility, the Lansing Board of Water and Light (BWL) recognizes the importance of diversity among its workforce, suppliers, and in the communities that it serves.
BWL generates its revenues from a broad cross-section of customers, representing a diverse community of people. To that end, the economic health and growth of this organization, and the community at large, depends on BWL’s consideration of its workforce, suppliers and customers.
BWL will aggressively support the growth and development of a diverse pool of suppliers, including minority and women-owned businesses. Further, BWL will continue to establish a workforce that is highly representative of the customers who generate its revenues.
BWL’s goal, under corporate diversity, is to create an environment which values multi-cultural, racial and gender diversity as an enhancement to the products and services it offers to its customers.
To achieve this goal, BWL’s management will be held accountable in carrying out pro-active initiatives that ensure diversity in its workforce and supplier pool that reflect the customer base.
The General Manager, or a designated representative, shall establish procedures consistent with this policy and be responsible for its implementation.
3. Clarification to Prevention of Workplace Violence Policy
General Manager Pandy reported that an informational meeting was held on April 8, 2002, to hear employee concerns regarding a clarification to the current Workforce Violence Policy and specifically address weapons in the workplace. The review of this policy was brought on by the change in the concealed weapons law in the State of Michigan, which took effect July 1, 2001. In response to questions raised by the Commissioners, Security Administrator Jerry Mills described how management would respond to situations involving weapons in an employee’s vehicle. He reviewed some specific examples of how various situations would be evaluated, based upon investigation, surroundings and the circumstances involved. He noted that this is not a new policy; it has been in the Employees’ Handbook since 1989, and more recently, the Violence in the Workplace policy since 1999. The difference with this new procedure is that it is more specific and clearly defined. There was no reference to BWL vehicles or personal vehicles on BWL property in the old policy.
RESOLVED, That the Board of Commissioners hereby adopts the following Board of Water and Light Clarification to Prevention of Workplace Violence Policy. This procedure shall take effect immediately upon its adoption.
WEAPONS IN THE WORKPLACE
(Resolution #2002-4-4)
(See amendment on page 33)
The Lansing Board of Water and Light (BWL) believes it is important to establish a clarification to the current policy and specifically address weapons in the workplace.
The Lansing Board of Water and Light prohibits all persons who enter BWL property from carrying a handgun, firearm, or prohibited weapon of any kind onto the property regardless of whether the person is licensed to carry the weapon or not.
The policy applies to all BWL employees, contract and temporary employees, vendors, visitors on BWL property and customers and contractors on BWL property regardless of whether they have a concealed weapons license. The only exception will be police officers, security personnel or other persons who have been given written consent by BWL to carry a weapon on the property.
All BWL employees are prohibited from carrying a weapon while in the course and scope of performing their job for BWL, whether they are on BWL property at the time or not and whether they are licensed to carry a concealed weapon or not. BWL employees may not carry a weapon while performing any task on BWL’s behalf. The only exception will be persons who have been given written consent by BWL to carry a weapon while performing specific tasks on BWL’s behalf. This policy also prohibits weapons at any BWL sponsored function such as parties or picnics.
Prohibited weapons include any form of weapon or explosive restricted under State or Federal regulations. This includes all firearms, illegal knives, or other weapons covered by the law. (Legal, chemical-dispensing devices such as pepper sprays that are sold commercially for personal protection are not covered by this policy. Authorized work tools such as skinning knives, hook knives, and other tools used in daily job assignments are not covered by this policy.) The employee will be held responsible for making sure beforehand that an item they are using or possessing is not prohibited by this policy.
BWL property covered by this policy includes, without limitations, all BWL-owned or leased building and surrounding areas such as sidewalks, walkways, driveways, and parking lots under the ownership or contract of BWL. Company vehicles are covered by this policy at all times regardless of whether the vehicles are on BWL property at the time.
Failure to abide by all terms and conditions of the policies described above is considered a non-progressive violation and may result in discipline up to and including termination.
This policy shall not be construed to create any duty or obligation on the part of the Company to take any actions beyond those required by this policy or existing law.
Any BWL employee who becomes aware of anyone in violation of this policy shall report it to Management, Human Resources, or Security immediately.
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There being no further business, the meeting adjourned at 5:20 p.m.
Respectfully submitted,
/s/ Ron Callen, Acting Chair for
Human Resources Committee
Moved by Commissioner Royal, seconded by Commissioner Christian, that the Report of the Human Resources Committee be approved as presented (Resolution #2002-4-1).
Action: Carried unanimously.
Moved by Commissioner Royal, Seconded by Commissioner Christian on the approval of the resolution to adopt the Policy on the Employment of Relatives (Resolution 2001-4-2).
Discussion: Commissioner Callen asked about the number of situations that involved employees being supervised by relatives and if the experience was problematic.
Mary Dwyer, Manager of Human Resources, responded that BWL has not been tracking these statistics, as they are not required to be kept by the Michigan Equal Employment Opportunity Commission (EEOC). The only way this type of data could be obtained was to poll Managers and Directors for anecdotal information they may have on situations where an employee supervised a relative. From this poll, it became obvious that BWL employs many relatives. The poll disclosed five situations that would be covered under the Employment of Relatives Policy and numerous situations that are not covered under the policy. Ms. Dwyer stated that the reason this policy was brought forward now was because it was felt by some employees that some favoritism was occurring. Upon investigation, it was found that in the past there were family relationships in similar situations that presented some problems.
Commissioner Royal asked how Human Resources intends to enforce the Policy on Employment of Relatives if statistics on the number of employees who supervise relatives are not required to be kept by EEOC. She inquired if a process was set up to address the “exceptions” permitted in the “BWL Procedures on the Employment of Relatives.” Ms. Dwyer responded that employees are required to reveal if there is a supervisory relationship occurring. If they fail to do so, and it comes to the attention of Human Resources at a later time, they would be subject to the same employee work conduct and disciplinary process as any other employee. Ms. Dwyer stated that exceptions would be permitted on an infrequent basis for reasons related to exigent operational needs of the BWL, as defined in the Procedures on the Employment of Relatives. A sign out situation will be implemented requiring the Process Director and Human Resources Manager to agree on the exigent circumstance. Commissioner Royal suggested including in the procedures how exigent circumstances would be monitored to discourage favoritism.
Commissioner Callen requested a follow-up report one year from now on how well the new policy is working and whether there is still concern with regard to favoritism to family members.
Action: Carried unanimously.
Moved by Commissioner Royal, seconded by Commissioner Wonch, on the approval of the resolution to adopt the Policy on Corporate Diversity (Resolution # 2002-4-3).
Discussion. Commissioner Marin observed that the information provided on the BWL’s workforce diversity and utilization of minorities and females was compared to the Tri-County area. She requested additional information that shows a comparison of the BWL workforce diversity with the City of Lansing population, since the majority of BWL customers are City of Lansing residents. She noted that the City of Lansing provides diversity data within the City population. General Manager Pandy agreed to provide the information requested within the next week.
Action: Carried unanimously.
Moved by Commissioner Royal, seconded by Commissioner Christian, on the approval of the resolution to adopt the Policy on Clarification to Prevention of Workplace Violence (Resolution # 2002-4-4). (See Procedure on Weapons in the Workplace.)
Discussion. Commissioner Wonch expressed concern that the word “carry” or “carrying” weapons may be misinterpreted. She inquired if the policy applies to employees who park their vehicles on BWL property and may have a hunting rifle in the trunk of their vehicle because they plan to go hunting after work.
Security Administrator Jerry Mills responded that the policy does apply to all weapons stored in or on vehicles on BWL property, which includes parking lots and buildings.
Moved by Commissioner Wonch, seconded by Commissioner Duncan, to adopt the resolution with a friendly amendment to include a definition in the Weapons in the Workplace policy that defines the word “carry” or “carrying” to mean on your person, transporting in or on your vehicle or BWL vehicle, or in your possession on BWL property.
Action: Carried unanimously.
The Finance Committee met on April 9, 2002 at 5:30 p.m. to discuss the following items:
BWL Gain Sharing Plan
Financial Accounting Standard (FAS) #71
Transfer of Bond Construction Funds
Future Financing Alternatives
Internal Auditor’s Report on Ethics
Committee members present were Commissioners Callen, Christian and Duncan. Absent were Commissioners Creamer and Wonch.
1. BWL Gain Sharing Plan
Revised Employee Gain Sharing Program: The Committee received an overview of the Share the Success (STS) gain sharing plan. The STS program provided a supplemental compensation plan to all employees, which did not increase employees’ base pay. In 1999, the BWL changed the plan to reflect a corporate bonus with ranges of 0-2.5% for all employees, and a process bonus with ranges of 0-5% for non-bargaining unit employees, only. The performance measures used to determine the bonuses were complicated and administratively burdensome. A brief review was provided on the financial history of STS over a 14-year period and the parameters of the proposed plan of 0-5% compensation based on Corporate measures only. The proposed measures would be in four performance categories: 1) availability/reliability; 2) customer satisfaction; 3) safety; and 4) financial performance. The financial measure would predominate. Even if financial performance measures are not met, employees could receive $100 for each of the other three measures, if goals in those areas are fully met. The precise performance measures will be developed with employee input.
Enhanced Benefit Package for Non-Bargaining Employees: The Committee reviewed a proposal to increase non-bargaining unit employee benefits effective July 1, 2002. The intent of this enhancement is to offset the elimination of their process-based STS bonus program. This would create a benefit package for non-bargaining unit employees that will reach a cross-section of non-bargaining unit employees, without giving one-time cash bonuses. Management reviewed the entire benefit package and chose those benefits that would: 1) offer incentives to long-term employees; 2) help develop a well-trained workforce; 3) encourage newer employees; and 4) reinforce positive attendance records. Based on numbers of employees and historical data, the total estimated maximum cost for fiscal year 2003 would be approximately $210,000.
Recommended Action
The Board of Commissioners is responsible, by Charter, for conditions of employment for all employees of the Board of Water and Light.
The Board of Water and Light’s Share the Success (STS) Program has existed since 1987.
The program has benefited both BWL customers and employees by focusing attention on goals that make the utility successful, and by sharing the rewards of that success among customers and employees.
In recent years, the STS program has consisted of a corporate incentive for all BWL employees and additional process-based incentives for certain other employees.
It is desirable to return to a gain sharing program that is consistent among all employees.
Management and IBEW Local 352 have agreed on the terms of a Memorandum of Understanding dated February 11, 2002. Among other things, this Memorandum of Understanding outlines the terms of a new gain sharing program.
RESOLVED, That the General Manager is hereby directed to create a new gain sharing program that is consistent with the items included in the BWL’s Memorandum of Understanding with IBEW Local 352, dated February 11, 2002. The Gain Sharing Program shall take effect in fiscal year 2002-03.
ENHANCED BENEFIT PACKAGE for
NON-BARGAINING UNIT EMPLOYEES
(Resolution 2002-4-7)
The Board of Commissioners is responsible, by Charter, for conditions of employment for all employees of the Board of Water and Light.
The Human Resources Director, with the concurrence of the General Manager, has recommended that the Board of Commissioners adopt an enhanced benefit package for its non-bargaining employees.
The Board of Commissioners has been advised as to the necessity of such an enhancement, and has had an opportunity to discuss its merits.
RESOLVED, That the Board of Commissioners shall adopt the following enhancements to benefits for non-bargaining employees:
Paid retirement allowance increase from 50% to 60%
Tuition refund increase from 50% to 100%
An additional one-half percent (½%) increase to a defined contribution plan
A sick leave incentive program that consists of:
1. No sick days used = one (1) day of pay
2. One to two sick days used = one-half (½) day of pay
RESOLVED FURTHER, That the General Manager is authorized to develop all procedures necessary to implement these enhancements.
2. Financial Accounting Standard (FASB) # 71
Director of Metrics and Audits Kellie Willson presented an overview of FAS #71 and the implications of discontinuing the application of FAS #71. Analysis indicates that BWL’s deferred revenue will more than offset its deferred expenses. The change will have no effect on the BWL’s cash position as it is purely a change in accounting method. Because this change was not anticipated in the BWL’s planning for the current fiscal year, the change will be implemented effective with fiscal year 2002-03. The BWL’s external auditors are in agreement with discontinuing the application of FAS #71 effective next fiscal year.
Recommended Action
DISCONTINUE FAS #71
DEFERRALS EFFECTIVE JULY 1, 2002
(Resolution 2002-4-8)
RESOLVED, That the Board of Commissioners, as the regulatory body of the Board of Water and Light, recognize the financial liability or asset created by the items listed below and elect to defer the current recognition of these items during fiscal year 2001-2002.
· Compensated Absences – The Board recognized a liability of $9,121,307 at June 30, 2001. The June 30, 2002 liability is estimated at $9.5 million. The expense for paid time off is expensed as paid to each employee during the year.
· Michigan Public Power Agency (MPPA) Fuel Arbitration Settlement – The Board recognized an asset of $14,851,354 at June 30, 2001. The June 30, 2002 asset is estimated at $16.0 million. These funds are held in trust at MPPA and will be used to reduce future purchased power expense.
· Workers Compensation – The Board recognized a liability of $1,307,475 at June 30, 2001. The June 30, 2002 liability is estimated at $1.4 million. Workers compensation costs are expensed as paid. This is an actuarial estimate each year of total liability for outstanding cases.
RESOLVED FURTHER, That the Board of Commissioners direct the staff to discontinue any FAS #71 deferrals beginning July 1, 2002 for fiscal year 2002-03, and thereafter.
3. Transfer of Bond Construction Funds
General Manager Pandy reported that some of the 1999A bond proceeds ($8.3 million) reserved for transmission and distribution work will not be used as planned. The construction fund has a balance as a result of the planned Meridian Substation, which was to be sited at the proposed Governor’s Club project. The township’s legal issues related to this project have delayed the construction of the substation. Therefore, staff proposes that the bond construction monies associated with the Meridian Township Substation be utilized in Delta Township for a new substation to serve the General Motors Mid-Michigan plant. The committee asked about alternatives on the best use of the bond proceeds—for example either paying off some of the current bond debt service or using the money for the NOx (Nitrous Oxide) bond issue planned by this fall. Staff reported that paying off current bonds is not economical at this time and bond counsel advises that bond proceeds not be used for a totally unrelated project; funds should only be used for a similar project.
Recommended Action
AUTHORIZATION TO TRANSFER
BOND CONSTRUCTION FUNDS
(Resolution 2002-4-9)
RESOLVED, That the Chief Financial Officer close the 1999A Construction (bond proceeds) Fund (131-10) and transfer the balance ($9,272,464) to the O&M cash fund (131-6).
4. Future Financing Alternatives
The committee reviewed a memo written by Chief Financial Officer Tousley, which described the structure of the upcoming revenue bond issue to be issued by this fall for NOx compliance. Four alternatives calculated by the BWL’s financial advisors outlined the term, annual debt service and total cost. Staff suggests the Wraparound Schedule I, for level debt service of $11,015,000 through 2015. This represents the lowest total cost to the BWL for all debt of the four alternatives. This information was provided for review and input at this time. Staff plans to bring forth its recommendation for Board consideration this summer.
5. Internal Auditor’s Report on Ethics
The Director of Metrics and Audits briefed the Board on plans for ongoing employee training on ethics. The Board concurred with the content for the training plans and directed management to proceed and to come to some resolution about whether soliciting items or funds from vendors for charity is prohibited or not.
6. Informational Items
The committee received written reports on the following items for future discussion.
· Water Construction Alternatives (Customer Choice). This item was referred to the full Board for discussion and any action that may be deemed appropriate.
· FY 2003 Budget Parameters. General Manager Pandy invited Commissioner input as staff prepares to finalize the operating budget for presentation to the Finance Committee in May.
· Water Cost of Service. A preliminary draft of the Water Cost of Service Study indicates the Water Utility did not generate enough revenue to cover cash expenditures during FY 2001. This report will guide staff with future ratemaking recommendations. An executive summary of R. W. Beck’s 2002 Water Cost of Service Study will be provided to the Commissioners.
Other written reports received included (1) the Internal Auditor’s quarterly report, dated March 1, 2002, (2) status report on insurance coverage, and (3) management’s response and action plan associated with the report from R. W. Beck on their Performance Audits of BWL’s Growth and Expansion Processes and Associated Performance Measurement.
General Manager Pandy reported on a late-breaking matter concerning (1) negotiations with a prospective developer for the Ottawa Power Station and (2) the Clean Michigan Initiative Waterfront Redevelopment Grant of $3,941,600 set to expire on May 8, 2002. The Board will be kept advised as more details unfold.
There being no further business, the meeting adjourned at 6:35 p.m.
Respectfully submitted,
Nancy W. Duncan, Chair
Finance Committee
Business Plan. Chairman Callen called attention to the proposed Business Plan that was included with the Board meeting packet. The Business Plan was briefly reviewed at the Board retreat (March 15-16, 2002). To allow more time for thorough review and discussion, he suggested referring the Business Plan to the Committee of the Whole. The goal is to connect the Business Plan with the Electric Strategic Plan that was reviewed with the Commissioners on February 26, 2002. There was no objection to the referral.
GENERAL MANAGER’S RECOMMENDATIONS
Background materials on items presented are on file in the Office of the Corporate Secretary.
Resolution # 2002-4-10
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WHEREAS, a new Surge Protection product has been investigated and submitted for the Board of Commissioners approval, as required by the New Venture Policy 19-14 (Resolution 2000-3-4); and,
WHEREAS, the Board of Water and Light (BWL) desires to market a Surge Protection Program to its customers and the first year Capital and O&M expenditures are estimated at $66,411.
NOW THEREFORE, BE IT RESOLVED, That the Board of Commissioners adopt the proposed Surge Protection product implementation as based on the business case presented.
Remarks: The proposed Surge Protection Program was reviewed with the Commissioners at the Committee of the Whole meeting on February 26, 2002. The program meets the required rate of return target under anticipated conditions. BWL financial risk will be mitigated by purchasing equipment on a “just in time” basis.
Moved by Commissioner Creamer, seconded by Commissioner Duncan, that the resolution be approved.
Action:
Carried unanimously.
Resolution # 2002-4-11
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WHEREAS, the Young Women’s Christian Association, executed a certain easement conveying and warranting to the Board of Water and Light forever, such rights as recorded in Liber 1582 of Miscellaneous Records, Page 135, in the Register of Deeds, Ingham County, Michigan, September 17, 1986; and,
WHEREAS, the Boji Group, Limited Liability Company (L.L.C.), owner of Lots 7, 8, and 9 of Block 116, Original Plat, City of Lansing, Ingham County, Michigan has requested the release of said easement, more specifically described as follows:
Easement Description: The land on which said right is granted is described as follows: The South 6 feet and the East 8.33 feet of the North 49.5 feet of the West ½ of Lot 8, the South 4.5 feet of the West 82.83 feet of the East 90.83 feet and the East 8.0 feet of the South 43 feet of Lot 9.
WHEREAS, this easement as described above is not needed for the operations of the Board of Water and Light.
NOW THEREFORE, BE IT RESOLVED, That the Board of Commissioners of the Board of Water and Light release, discharge and vacate said easement on the above described property and that the General Manager and Corporate Secretary be authorized to execute the release of easement, subject to the approval of the Lansing City Council in accordance with the Lansing City Charter. Further that the Corporate Secretary be directed to record the release of easement with the Ingham County Register of Deeds.
Remarks: The Boji Group, L.L.C., requests that the Board of Water and Light vacate this easement to facilitate a proposed new office building and parking deck project. The easement was for electric, water and steam facilities serving the YWCA building at 217 Townsend Street.
(Board action on this resolution follows the next resolution.)
Resolution # 2002-4-12
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WHEREAS, the Accident Fund of Michigan, Membership Organization/Mutual, executed a certain easement conveying and warranting to the Board of Water and Light forever, such rights as recorded in Liber 1587 of Miscellaneous Records, Page 349, in the Register of Deeds, Ingham County, Michigan, October 9, 1986; and,
WHEREAS, the Boji Group, Limited Liability Company (L.L.C.), owner of Lots 7, 8, and 9 of Block 116, Original Plat, City of Lansing, Ingham County, Michigan has requested the release of said easement, more specifically described as follows:
Easement Description: The land on which said right is granted is described as follows: The West 5 feet of Lot 4 and the North 5 feet of the South 16.5 feet of the East 22.3 feet of the West ½ of Lot 8.
WHEREAS, this easement as described above is not needed for the operation of the Board of Water and Light.
NOW THEREFORE, BE IT RESOLVED, That the Board of Commissioners of the Board of Water and Light release, discharge and vacate said easement on the above described property and that the General Manager and Corporate Secretary be authorized to execute the release of easement, subject to the approval of the Lansing City Council in accordance with the Lansing City Charter. Further that the Corporate Secretary be directed to record the release of easement with the Ingham County Register of Deeds.
Remarks: The Boji Group, L.L.C., requests that the Board of Water and Light vacate this easement to facilitate a proposed new office building and parking deck project. The easement was for electric, water and steam facilities serving the Accident Fund of Michigan at 232 S. Capitol Avenue.
Moved by Commissioner Creamer, seconded by Commissioner Royal, that the two resolutions to discharge and vacate the easements at 217 Townsend Street and 232 S. Capitol Avenue be approved.
Discussion: Commissioner Wonch asked if the two easements being discharged had any value and if consideration was being paid by the developer to have the two easements vacated.
General Manager Pandy responded that it has not been the BWL’s practice to sell easements that are released for simple jobs serving one building. The BWL is generally given an easement without consideration, thus payment is not required when the easement is released.
Moved by Commissioner Wonch to table the two resolutions until the BWL has an opportunity to evaluate its practice of acquiring and releasing easements.
Following discussion, Commissioner Wonch withdrew the motion to table the two resolutions.
The Commissioners concurred that delaying the two resolutions at this stage would burden the developer, since the project has been in the planning stages for some time. Meanwhile, staff was instructed to survey surrounding municipalities to assess their practice in acquiring and discharging easements that involve residential customers and developers. The report should include information on amounts paid and the rational used in determining the sum paid by BWL for easements over and above the customary one-dollar consideration.
Action: The motion to adopt Resolutions # 2002-4-11 and 2202-4-12 was approved by the following vote:
Yeas: Commissioners Callen, Christian, Creamer, Duncan, Haggart, Marin, and Royal – 7
Nays: Commissioner
Wonch -1
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Resolution # 2002-4-13 |
WHEREAS, the Board of Water and Light of the City of Lansing, Michigan, has the ongoing responsibility and obligation to make its best efforts to assure and secure a reliable and competitively priced wholesale supply of electricity for its utility and for the convenience and benefit of its customers; and
WHEREAS, the Board of Water and Light of the City of Lansing, Michigan, relies on purchases of electric capacity and energy for a portion of its electric supply and for the delivery of that supply utilizing the extra-high voltage electric transmission system in the region; and
WHEREAS, that certain traditional, vertically integrated private electric utilities either have or are in the process of divesting various components of the business, including their transmission systems; and
WHEREAS, the Federal Energy Regulatory Commission through its Orders 888 and Order 2000 have encouraged transmission owners to join in independent Regional Transmission Organizations; and
WHEREAS, transmission owners have historically acquired and maintained certain superior operational rights, economic benefits and priority access for themselves and their customers as compared to transmission dependent utilities and these benefits are expected to continue, at least to some degree, in the future; and
WHEREAS, Consumers Energy Company has transferred its transmission system to Michigan Electric Transmission Company (METC), its wholly owned subsidiary, and METC has, in turn, negotiated a sale of that transmission system to Trans-Elect; and
WHEREAS, as a part of the Branch County Circuit Court Case settlement and upon its purchase, Trans-Elect has agreed to sell 60 megawatts of the transmission system assets with a 45 MW share going to Michigan Public Power Agency and a 15 MW share going to Michigan South Central Power Agency (15 MW) and such purchase will not be tied to any specific generating resource and/or purchase; and
WHEREAS, Michigan Public Power Agency at its February 13, 2002 Board of Commissioners Meeting established the Transmission Project Committee that will, among other things, determine price, evaluate the economics, develop the purchase documents, negotiate the ownership and operating agreements, determine members’ entitlements, and purchase and own any amounts of transmission acquired by MPPA for the Transmission Project; and
WHEREAS, it is in the Board of Water and Light of the City of Lansing’s interest to participate in and explore transmission ownership opportunities, such as MPPA Transmission Project, as a part of its business efforts to examine options leading to reliable and competitively priced electricity for its utility and customers.
NOW, THEREFORE BE IT RESOLVED, That the Board of Water and Light of the City of Lansing will participate in the initial study phase of the MPPA Transmission Project for the purposes of determining the economics and benefits of the Board of Water and Light obtaining a share of the capacity in the MPPA Transmission Project, and to determine the amount of capacity the Board of Water and Light may obtain in the MPPA Transmission Project. If the Board of Water and Light’s participation in the project is determined to be prudent, the Board of Water and Light will consider authorizing such further participation and obligation under separate resolution.
The Michigan Public Power Agency (MPPA) currently has the opportunity to obtain transmission ownership rights in the transmission system currently owned by Consumers Energy. The BWL, being active in the wholesale energy market, could benefit from the obtaining of such rights. To evaluate the associated benefits, the BWL must join the newly created MPPA Transmission Project. This Project will, among other things, explore transmission ownership opportunities and associated benefits to the Project participants. Costs should be limited to MPPA staff costs associated with the evaluation. If further participation is determined to be prudent, the BWL will authorize under a separate resolution.
Moved by Commissioner Wonch, seconded by Commissioner Royal, that the resolution be approved.
Action:
Carried unanimously.
Resolution # 2002-4-14
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RESOLVED, That the existing Professional Services agreements with R. W. Beck, Inc.; Black & Veatch Corporation; Blasland, Bouck & Lee, Inc.; Camp Dresser & McKee; Clayton Group Services; Commonwealth Associates, Inc.; Fishbeck, Thompson, Carr & Huber, Inc.; Jones & Henry Engineers, Ltd.; Novak Engineering, Inc.; SFT, Inc.; Sargent & Lundy, LLC; Snell Environmental Group, Inc. (now renamed DLZ Michigan Inc.); Soil & Materials Engineers, Inc.; and, Stanley Consultants, Inc. to supply engineering and consulting services, be extended one year, until May 24, 2003.
FURTHER RESOLVED, That the BWL enter into agreements to supply engineering and consulting services with both Capital Consultants and Tetra Tech MPS until May 24, 2003.
Remarks: Extending the existing agreements was an option in the original request for proposals for Continuing Professional Services. This recommendation is based on current work in progress and their satisfactory performance on work completed. These Professional Service Agreements will be re-bid prior to the expiration of this recommended extension.
The recommendation to enter into additional agreements with Capital Consultants and Tetra Tech MPS is based on both companies currently working on projects for the City of Lansing on which the BWL has mutual concern, and their satisfactory performance on BWL work completed in the past and in progress.
Moved by Commissioner Royal, seconded by Commissioner Creamer, that the resolution be approved.
Action: Carried unanimously.
[Chairman Callen
left the meeting at 6:55 p.m. due to an urgent obligation. He turned the gavel
over to Vice Chair Royal.]
Resolution # 2002-4-15
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RESOLVED, That the BWL enter into an agreement with Sargent & Lundy, LLC (S & L) to provide engineering support services for the Western Coal Conversion project at the Erickson Station. The services are required to assist BWL engineering staff in meeting both the project technical and schedule requirements. S & L will be required to agree to a not-to-exceed price for various support tasks based on specific work scope; and be reimbursed on a time & material basis under the terms and conditions of our existing Continuing Professional Services Agreement. The total value of the anticipated support tasks will exceed the $15,000 limit required for Board approval.
Remarks: In addition to S & L, the Project Engineering Department investigated the western coal conversion experience of Black & Veatch, Burns & McDonnell, and Stanley Consultants and found that S & L has significantly more corporate and available personnel experience. S & L also completed the original BWL Western Coal Conversion Study in 1997 and the Phase I and II NOx Compliance Study in 2001. The knowledge and familiarity with the Erickson Station gained by S & L during the completion of those studies will benefit the BWL by utilizing them in support of this project.
Moved by Commissioner Christian, seconded by Commissioner Marin, that the resolution be approved.
Action:
Carried unanimously.
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Resolution # 2002-4-16 |
WHEREAS, certain beneficial electric projections/developments require extensive infrastructure investment by the BWL but do not meet the BWL’s financial requirements based on current rates; and
WHEREAS, such projects/developments have the long term potential to benefit the BWL’s entire rate base; and
WHEREAS, the BWL desires to invest in the infrastructure necessary to serve those projects and have a mechanism to recover these costs directly from the customers who benefit.
NOW THEREFORE, BE IT RESOLVED, That the Board amend its rates to implement an Electric Infrastructure Recovery Rider.
FURTHER RESOLVED, That a public hearing to solicit public input on this matter be set for Tuesday, July 23, 2002 at 5:30 p.m., in the Board of Water and Light offices at 1232 Haco Drive. Also that the Corporate Secretary be directed to file with the City Clerk information regarding pending changes in the rate structures on or before April 26, 2002.
Remarks: The proposed infrastructure recovery charge rider is pursuant to Board Resolution 2002-1-8 regarding the Electric Service Agreement with Michael G. Eyde and Eastwood LLC.
Staff Comments: This resolution is being submitted in accordance with Board Policy regarding changes to the Capital Budget.
As a result of the recent review of BWL capital projects at the Finance Committee meeting on January 17th, staff has provided FY2002 Capital Budget modifications and a brief description of the basis for change. The overall impact on the FY2002 Capital Budget as a result of the changes listed is an overall reduction of $3,595,000.
Moved by Commissioner Wonch, seconded by Commissioner Duncan, that the resolution be approved.
Action: Carried unanimously.
UNFINISHED BUSINESS
Discussion on Water Customer Choice. Vice Chair Royal stated that in May 2000, the Board passed a policy on Customer Choice for Water Service and Main Installations. The General Manager has stated that the BWL intends to follow this policy unless the Board advises otherwise. Discussion followed as to whether to extend the Water Customer Choice Program to new developments in the City of Lansing.
General Manager Pandy gave an overview of the Water Customer Choice Program and responded to issues raised about quality, union, and contractors. He stated that the Customer Choice Program has been in effect in suburban areas for over one year. It provides developers and customers the option of installing their own water infrastructure on private property rather than requiring BWL employees to perform the work. These installations must be done per BWL specifications and inspected by BWL-supervised inspectors. This policy aligns with practices followed by other water utilities. Mr. Pandy reviewed a comparison of Customer Choice vs. BWL required construction as is currently in place in the City of Lansing and compared the responsibilities for cost overruns, site restoration, installation requirements and workmanship. Mr. Pandy reported that management intends to address issues raised on quality and inspections to be performed by BWL employees and retirees rather than by independent contractors. He reviewed the Contractor Permit Application, which shows how contractors are qualified. He has met with the Laborer’s Council and has invited them to submit names of contractors for potential qualification.
After lengthy debate on this matter, the following motion was made:
Moved by Commissioner Wonch, second by Commissioner Haggart, to refer the issue of whether to extend the Water Customer Choice Program to new developments inside the City of Lansing to the Committee of the Whole for review and recommendation by the next regular meeting on May 28, 2002.
Action: Carried unanimously.
NEW BUSINESS
None
RESOLUTIONS
Whereas, It is with great honor to join with the South Lansing Business Association and the family and friends of Charlie Creamer upon his selection as the 2002 South Lansing Business Association Business Person of the Year; and
WHEREAS, Charlie Creamer is President and Managing Member of the Midwest Transaction Group, an electronic payments processing company he started 18 months ago. During this period, the Midwest Transaction Group attracted over one thousand clients and processed over $100 million in credit, debit, and other electronic transactions; and
WHEREAS, It is because of the effort Charlie Creamer has put forth as a dedicated professional that we offer our congratulations on the success of his new venture. He has ably handled the startup of his business and has earned the respect in this community; and
WHEREAS, In addition to his many responsibilities, Charlie Creamer has contributed to this community through his devotion to his family and past service as a Lansing City Councilmember, a Lansing Community College Trustee and currently as a Commissioner of the Lansing Board of Water and Light.
NOW, THEREFORE, BE IT RESOLVED, That the Commissioners of the Lansing Board of Water and Light honor Charlie Creamer on this 23rd day of April, 2002, for being recognized as the 2002 South Lansing Business Association Business Person of the Year. We wish his continued success with his progressive business.
Moved by Commissioner Christian, seconded by Commissioner Royal, that the resolution of tribute be approved as presented.
Action: Carried unanimously
GENERAL MANAGER'S REMARKS
Peak Demands Set: General Manager Pandy reported that hot weather has driven demand for electricity to record levels for the month of April on the BWL’s electric system. The record was set Thursday, April 18 when demand on the BWL system hit 429 megawatts (MW). It replaced the previous record for April of 376 MW set last year. BWL electric loads were up about 15 percent, indicating not only the hot weather, but also a strong economy in Lansing. Water peaked at 34 MGD (million gallons per day) on April 17; a normal load would be about 24 MGD. This brings the water peak load up about 40 percent.
Commissioner and City Council Pairings. At the March 15-16 Board Planning Retreat, the Commissioners spoke about pairing with City Councilmembers for communication purposes. A draft pairing list was handed out for review and consideration.
APPA National Conference. General Manager Pandy reported that he is a member of the American Public Power Association (APPA) Task Force on “Public Power in the 21st Century.” The report will be presented at the National APPA Conference in Dallas this June. Six examples of excellence at the Board of Water and Light submitted include: (1) Superior Customer Service, (2) Value through Wholesale Power Arrangements, (3) Distribution System Efficiency that reports on the BWL’s reliability, which is among the best in the country, (4) Environmental Stewardship, which reports BWL activities to protect the environment, (5) Excellence of BWL Human Resources through our employees and diversity in the workforce, and (6) Investing in Technology in the Future, such as the Central Utilities Complex (CUC) partnership with General Motors. Mr. Pandy reported that he will be a speaker at the APPA National Conference on Human Resource issues. The Commissioners were urged to attend the national conference to be held in Dallas, Texas.
Traffic Signal Emergency Maintenance. The Ingham County Commission has hired the BWL to do their traffic signal emergency maintenance on sixty intersections throughout Ingham County. The BWL will not be responsible for their daily work, but will handle outages at intersections at a time, material and margins reimbursement arrangement.
Special Meeting RE: Pending Real Estate Transaction. General Manger Pandy reported that a real estate matter might require the Board to call a special meeting within the next week. As more details are known about this possible real estate transaction, it will be forwarded to the Commissioners.
Ottawa Power Station Update: General Manager Pandy reported that he received an extensive report from a prospective developer for the Ottawa Power Station redevelopment project. The package contains a due diligence report, site plan, market feasibility study and preliminary cost estimate. The developer has met with the Mayor and his staff to discuss the proposal. The developer has stressed that significant public involvement and investment will be required to make this project a reality. The proposal outlines the type of commitment that will be required from the City to take this project from concept to reality.
Commissioner Royal asked about the status of the Clean Michigan Initiative Waterfront Redevelopment Grant money that is in reserve by the State of Michigan. Mr. Pandy reported that the sooner the Board acts on the Ottawa development project, the better the chance of securing the grant. At this time, May 8, 2002 is the designated drop-dead date for qualifying for the funds.
Commissioner Wonch congratulated General Manager Pandy and the staff for the efforts in streamlining the Board meeting packet. She found the materials to be more readable and understandable.
EXCUSED ABSENCE
None.
PUBLIC COMMENTS
THE VICE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME TO SPEAK TO THE BOARD ON ANY BOARD OF WATER AND LIGHT SUBJECT.
Councilmember Carol Wood commented that she did not want to belabor the points that were made this evening. She stated that when the Board approved the Customer Choice Program in 2000, Lansing’s Plumbing Code required work inside the City to be performed by BWL employees; consequently, Customer Choice was available only in suburban areas. The plumbing code was amended by the Lansing City Council to conform with state law, thus the provision applying to BWL forces was eliminated. She noted that the City Council did not choose to eliminate that provision.
David Nicklesen, Developer/Owner of Nicklesen Properties, East Lansing, commended General Manager Pandy for recognizing that some guidelines and procedures relative to Customer Choice issues need to be improved. He referred to the charges listed in his letter (handed out earlier in the meeting). He stated that the charges are not in line with what is competitively available in the local area. He said that the charges are a burden on companies that would like to relocate within the City of Lansing and that fees for engineering/administration and connections are excessive. He noted that he might never use the eight-inch fire protection line to be installed; therefore, the rationale of charging a tap fee for a load that is not definite does not make sense to him.
Robin Smith, 3501 Ronald, Lansing, stated that the Board’s decision to defer the issue on Water Customer Choice inside the City of Lansing could impact construction costs at the Pentecostal Outreach Church, since the work is being done by a BWL-approved contractor.
On motion by Commissioner Duncan, seconded by Commissioner Christian, the meeting adjourned at 7:45 p.m.
/s/ Mary E. Sova,
Secretary
Filed with Lansing City Clerk
May 3, 2002