MINUTES OF THE BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
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Tuesday, October 22, 2002
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The Board of Commissioners met in regular session at 5:35 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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Present: |
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Absent: |
Diane R. Royal –1 |
The Secretary declared a quorum present.
All said the Pledge of Allegiance.
APPROVAL OF MINUTES
Motion made by Commissioner Wonch, seconded by Commissioner Duncan, to approve the minutes of the regular meeting held July 23, 2002.
Carried unanimously.
Motion made by Commissioner Duncan, seconded by Commissioner Haggart, to approve the minutes of the special meeting held September 10, 2002.
Carried unanimously.
Motion made by Commissioner Duncan, seconded by Commissioner Haggart, to approve the minutes of the regular meeting held October 8, 2002.
Carried unanimously.
Motion made by Commissioner Wonch, seconded by Commissioner Duncan, to approve the minutes of the closed meeting held October 8, 2002.
Carried unanimously.
TRIBUTES
Commissioner Nancy Wonch was congratulated on receiving the prestigious Leo A. Farhat Outstanding Attorney Award to be presented by the Ingham County Bar Association on November 11. Chairman Callen noted that Commissioner Wonch will be joining the faculty of Thomas M. Cooley Law School on November 1.
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.
BWL employee Jim Dravenstatt-Moceri of Customer Service reported that over the course of five months, the Special Committee on Current Water Issues met to discuss the BWL’s water customer choice program and related water construction issues. At that meeting, management and the union (IBEW Local 352) presented a jointly developed Memorandum of Understanding for Water Customer Choice, which will be extended to the City of Lansing in the first quarter of 2003. Mr. Dravenstatt-Moceri thanked the Commissioners for their support and commitment to resolve management and union differences on the program.
BWL employee Ron Byrnes of Electric, Water and Steam Transmission and Distribution Resource Center, presented a petition signed by 256 BWL employees showing their support of the Board of Commissioners’ decision to terminate the employment of Joseph Pandy, Jr. on September 10, 2002. Mr. Byrnes noted that there were several employees interested in signing the petition but chose not to sign it because they feared retaliation or felt that they could not due to their position in management. Mr. Byrnes further stated that the petition is evidence to the Board of Commissioners and the community that many BWL employees support the Board, and they will continue to work hard to be the only utility that customers will accept.
Former BWL employee Jim Harkin, 315 Bingham Street, Lansing, presented information reported at Board meetings between 1990-1995 regarding nine capital projects that showed an overrun of $4,594,000. Mr. Harkin stated his belief that the Commissioners at that time were not given all the information needed to make informed decisions, nor did they ask questions as to why project costs were revised.
BWL employee Joseph Davis of the Maintenance and Construction Resource Center thanked the Commissioners for the difficult task they have recently undertaken. He stated that the BWL is an organization where its strength comes from each individual; and it takes the Commissioners, management and all employees to make this a successful organization, not just one person.
BWL employee Curt Gates and Business Manager for IBEW local 352 welcomed Ms. Robin Smith as the newest Board Commissioner. He thanked the team members of the new Incentive Program for jointly developing a simplified program that is fair to both customers and employees. Mr. Gates also thanked Commissioner Marin and all the participants of the Special Committee on Current Water Issues for all they accomplished in the area of water customer choice.
Commissioner Callen welcomed Councilmember Harold Leeman, who was in the audience.
The Human Resources Committee met on October 3, 2002 at 12:00 Noon to discuss the following matters:
Present were committee members Royal (Chair), Haggart, Marin, and alternate member Wonch. Also present were Commissioners Duncan and Kelson.
Board of Water and Light (BWL) Incentive Program. Kellie Willson, Director of Metrics and Audits, reported that in a February 11, 2002 Memorandum of Understanding with the International Brotherhood of Electric Workers (IBEW) Local Union 352, management and the union agreed there would be a new Share the Success Program for fiscal year 2003. The new program has been developed cooperatively. It is designed to be a simpler program that is fair to BWL customers and also to employees. It is proposed that the program known as Share the Success shall be named, simply, as the BWL Incentive Program. The new program will cover all employees without distinction between those who are in the Bargaining Unit and those who are not. It is recommended that the new program consist of corporate measures only and the 5.0% maximum remain unchanged for the duration of the current union contract.
The proposed performance measures for fiscal year 2003 will consist of the following: availability/reliability, financial performance, customer satisfaction, and safety. The specific revenue numbers and the anticipated cost at the various bonus levels are being finalized for review at the next regular meeting. The Memorandum of Understanding provides that, even if the financial measure is not met, a $100 minimum per employee would be paid for each non-financial measure that was met.
BWL Incentive Program for Fiscal Year 2003
(Resolution # 2002-10-1)
RESOLVED, That from 0 to 5.0% of fiscal year base pay be available for Incentive Program payments to all eligible Non-Bargaining and Bargaining Unit employees.
RESOLVED FURTHER, That the level of BWL return on assets will determine the extent to which the incentive will be paid. The actual return on asset levels required for incentive payments will be established by mutual agreement between management and Bargaining Unit representatives. The specific numbers to be used and the estimated cost to BWL at different bonus levels will be provided to the Commissioners prior to the October 22, 2002 Board meeting.
RESOLVED FURTHER, That payouts be based on BWL’s performance on its fiscal year 2003 corporate measures in four areas:
Availability
Reliability
Customer Satisfaction
Safety
Motion to Convene in Closed Session: By Commissioner Marin, seconded by Commissioner Wonch, to go into closed session for the purpose of reviewing the performance appraisals of Director of Metrics and Audits Kellie Willson and Corporate Secretary Mary Sova. (12:30 p.m.).
Approved by a roll call vote:
Yeas: Commissioners Haggart, Marin, Royal, Wonch, Duncan and Kelson
Nays: None
Committee Members Absent: Commissioner Callen.
The Human Resources Committee returned to open session at 12:50 p.m.
By Commissioner Wonch, seconded by Commissioner Duncan, that the following resolutions be approved:
Resolution on Compensation
Increases for
Director of Metrics and Audits and Corporate Secretary
(Resolution #
2002-10-2)
RESOLVED, That the Director of Metrics and Audits Kellie Willson and Corporate Secretary Mary Sova are hereby eligible to receive salary adjustments effective as of July 1, 2002.
The Board’s Rules of Administrative Procedures specify that the Board is to appoint a Director, Corporate Secretary and Internal Auditor, respectively, at the first regular meeting in July of each year, be it
RESOLVED, That the Board cast a unanimous vote for the reappointment of the following staff positions for fiscal year 2002-2003, or, until a successor is appointed, whichever last occurs:
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Internal Auditor |
- Kellie L. Willson |
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Corporate Secretary |
- Mary E. Sova |
RESOLVED FURTHER, That the appointment of a Director and General Manager is withheld pending the results of a nationwide search for a new Director and General Manager.
The meeting adjourned at 12:53 p.m.
Respectfully submitted,
/s/ Diane R. Royal, Chair
Human Resources Committee
Moved by Commissioner Duncan, seconded by Commissioner Marin, that the report of the Human Resource Committee be approved.
Action: Carried unanimously.
Moved by Commissioner Wonch, seconded by Commissioner Marin, on the approval of the resolution to adopt the BWL Incentive Program for Fiscal Year 2003 (Resolution # 2002-10-1).
Action: Carried unanimously.
Moved by Commissioner Wonch, seconded by Commissioner Duncan, on the approval of the resolution for Compensation Increases for Director of Metrics and Audits and Corporate Secretary (Resolution # 2002-10-2).
Action: Carried unanimously.
Moved by Commissioner Wonch, seconded by Commissioner Callen, on the approval of the resolution to Appoint Charter Staff Positions (Resolution # 2002-10-3).
Action: Carried unanimously.
EXECUTIVE COMMITTEE REPORT
The Executive Committee met on October 7, 2002 at 12 Noon to discuss the Interim General Manager position.
Committee members present were Commissioners Callen (Chair), Royal (Vice Chair) and Duncan (Chair Pro Tem).
The committee discussed the position of interim general manager while the search for a new General Manager is conducted. It was noted that at the September 10, 2002 Special Meeting, the Board directed William J. Cook to assume the duties of interim general manager on a temporary basis. The committee agreed that to create an unbiased level playing field on which internal and external candidates may compete for the General Manager position, the fairest approach would be to recommend to the full Board the appointment of an interim general manager to lead the organization during the transition period and to assist the executive search committee in its search and evaluation of candidates for the permanent General Manager position. This process would ensure that the best possible pool of candidates is attracted and considered for the position.
RESOLVED, That the Board consider the appointment of a person to the interim position with sufficient knowledge of the Board of Water and Light and its operations, but who does not plan to apply for the permanent position of General Manager.
The meeting adjourned at 1:10 p.m.
Respectfully submitted,
Ronald C. Callen, Chair
Executive Committee
Moved by Commissioner Wonch, seconded by Commissioner Callen, that the report of the Executive Committee be approved.
Action: Carried unanimously.
Moved by Commissioner Wonch, seconded by Commissioner Callen, on the approval of the resolution to Consider Appointing an Interim General Manager (Resolution # 2002-10-4).
Action: Carried unanimously.
Present: Commissioners Callen, Duncan, Haggart, Kelson, Marin, Wonch, and Smith. Absent: Commissioner Royal.
The Commissioners met as a Committee of the Whole on Tuesday, October 22, 2002, at 4:30 p.m. to interview John Elashkar who is under consideration for the Interim General Manager position. There was a lengthy question and answer period focusing on Mr. Elashkar’s background and experience and discussion on how he would lead the BWL in a direction that is consistent with the organization’s emerging vision.
BY THE COMMITTEE OF THE WHOLE:
Resolution authorizing the
Executive Committee
to Negotiate an Employment Agreement with
John Elashkar to serve as Interim General Manager
(Resolution
2002-10-5)
BE IT RESOLVED, That the Executive Committee is hereby authorized with the assistance of the Human Resources Department to negotiate an employment agreement with John Elashkar to serve as the Interim General Manager of the Lansing Board of Water and Light. The agreement shall become effective upon execution by the Board of Commissioners and Mr. Elashkar.
The meeting adjourned at 5:33 p.m.
Respectfully submitted,
Nancy W. Duncan, Chair Pro
Committee of the Whole
Moved by Commissioner Duncan, seconded by Commissioner Wonch, that the report of the Committee of the Whole be approved.
Action: Carried unanimously.
Moved by Commissioner Duncan, seconded by Commissioner Haggart, on the approval of the resolution to Authorize the Executive Committee to Negotiate an Employment Agreement with John Elashkar to Serve as Interim General Manager (Resolution # 2002-10-5).
Discussion: Commissioner Callen stated that he is confident that during this period, with John Elashkar as the Interim General Manager, the BWL will continue to deliver the same excellent service to all customers. He emphasized that good communication and trust are issues that will continually be addressed with management and employees. Commissioner Callen noted that the employees are the strength of this organization and along with Mr. Elashkar’s leadership, together they will move the BWL forward.
Action: Carried unanimously.
FINANCE COMMITTEE REPORT
The Finance Committee met on October 15, 2002 at 5:30 p.m. to discuss the following items:
Committee members present were Commissioners Duncan (Chair), Wonch, Callen (alternate), Royal (alternate), and Smith. Absent was Commissioner Kelson.
I. Annual Audit Review of BWL Enterprise Fund
External Auditors, Frank Audia, Robert Edwards and Tricia Walthorn, from Plante & Moran, presented the results of the audit for fiscal year ended June 30, 2002 for the Board of Water and Light Enterprise Fund. The BWL received an unqualified opinion, which is the highest level. Discussion was held on GASB 34 and FASB 71 and the auditors responded to questions by the Commissioners.
The Finance Committee recommends the following resolution:
Resolution Authorizing Filing Audits
with the City Clerk and the State Treasurer
(Resolution # 2002-10-6)
RESOLVED, That the Corporate Secretary be directed to file a copy of the fiscal year 2002 audit report of the Board of Water and Light Enterprise Fund with the Lansing City Clerk, Lansing City Council and the Mayor.
RESOLVED FURTHER, That the Corporate Secretary be directed to file copies of the fiscal year 2002 audit reports of the Board of Water and Light Enterprise Fund, the Defined Benefit Pension Plan, Defined Contribution Pension Plan and Retiree Benefit Plan (VEBA), and the reports on auditing procedures with the State Treasurer as required by the Uniform Budgeting and Accounting Act (Public Act 2 of 1968, as amended).
Motion by Commissioner Wonch, seconded by Commissioner Smith, to submit the resolution to the Board for approval.
Carried unanimously.
II. Water Cost of Service Study
Terry Myers from R. W. Beck presented and explained the October 10, 2002 Cost-of-Service Study of retail and wholesale water. He summarized the study results and its implications. After lengthy discussion on the study, staff was directed to come up with options to address the study findings. The Commissioners asked for copies of the wholesale water agreements. They also asked for analyses of present and future water treatment capacity.
III. Year-to-Date O & M Budget to Actual Comparison
Chief Financial Officer Dana Tousley reported on first quarter 2002-2003 budget projections. First quarter sales for electric and water exceeded projections. Mr. Tousley spoke on the impact of low sales of chilled water and the BWL ratchet clause. Questions about the cost of fuel and coal contracts were raised and responded to by Assistant General Manager Cook. No changes in the budget were requested and the Committee took no formal action.
IV. Solid Waste Disposal Contract
BWL sent Requests for Proposals to 13 vendors for Total Ash Management or any component of ash management. No vendor submitted a proposal for Total Ash Management. One bidder, Granger III and Associates, submitted a bid for the disposal option. Staff recommends that the bid be accepted, noting that the bid price is less than current rates. Discussion was held on the regulations affecting ash management and disposal.
WHEREAS, the Board of Water and Light (BWL) through its electric generation process creates ash that is required by regulation to be disposed of in a licensed solid waste landfill; and
WHEREAS, Staff solicited and received bids from several bidders and the bid from Granger III and Associates, LLC (Granger) was determined to be the best evaluated bid; and
WHEREAS, Granger has two Lansing area licensed solid waste facilities to properly and effectively dispose of the BWL’s ash in accordance with applicable governmental regulations.
RESOLVED, That the General Manager and Corporate Secretary are authorized to sign the Agreement between Granger III and Associates, LLC, (Granger) and the Board of Water and Light.
Motion by Commissioner Wonch, seconded by Commissioner Smith, to submit the resolution to the Board for approval.
Carried unanimously.
V. ISG Contract Amendment and Real Property Purchase
The agreement with ISG Resources, formerly Michigan Ash, terminated on June 30, 2002. The BWL wishes to purchase a pole barn maintenance building and underground storage tank located on BWL property from ISG Resources.
Resolution to Amend
Agreement with ISG Resources
(formerly Michigan Ash)
(Resolution 2002-10-8)
WHEREAS, the Board of Water and Light (BWL) and ISG Resources (ISG) entered into an agreement dated December 16, 1997 (Agreement), whereby ISG was permitted to make certain facility improvements (pole barn maintenance building and underground storage tank) on the BWL’s premises at 7000 Millett Highway and at the termination of the Agreement, ISG was obligated to remove all facility improvements; and
WHEREAS, the Agreement terminated on June 30, 2002, and the BWL desires to release ISG from its existing obligation to remove the facility improvement; and
WHEREAS, ISG desires to sell the facility improvements to the BWL for $25,000.
WHEREAS, the BWL may acquire property, real and personal, in accordance with the Lansing City Charter.
RESOLVED, That the General Manager and Corporate Secretary are authorized to sign the amended Agreement and release Michigan Ash from its obligation to remove the facility improvements.
RESOLVED FURTHER, That the General Manager and Corporate Secretary are authorized to purchase the facility improvements on behalf of the BWL for $25,000.
Motion by Commissioner Wonch, seconded Commissioner Smith, to submit the resolution to the Board for approval.
Director of Metrics and Audits Kellie Willson reported on the status of the following issues:
1. City Ethics Ordinance: A task force has developed procedures for investigating and following up on complaints of ethics violations. Articles on awareness of ethics issues are being distributed to managers, supervisors and directors. More formal training will be offered to all staff. Ethical behavior has to be modeled from top management.
2. Water Customer Choice: A special committee with management and union representation has been meeting to resolve operational and inspection issues. Ms. Willson expressed concern with one pilot project; the issues will be addressed and should be resolved in future projects.
Commissioner Royal commended Ms. Willson for following up on the ethics issue. She reiterated that ethics should be modeled from the top, and that Commissioners share in that responsibility. Commissioners Duncan and Royal emphasized the importance of beginning formal training soon.
The meeting adjourned at 7:52 p.m.
Respectfully submitted,
Nancy W. Duncan, Chair
Finance Committee
Moved by Commissioner Duncan, seconded by Commissioner Wonch, that the report of the Finance Committee be approved.
Action: Carried unanimously.
Moved by Commissioner Duncan, seconded by Commissioner Smith, on the approval of the resolution to Authorize Filing the Audit Reports (Resolution # 2002-10-6).
Action: Carried unanimously.
Moved by Commissioner Duncan, seconded by Commissioner Smith, on the approval of the resolution for a Solid Waste Disposal Contract with Granger III and Associates (Resolution # 2002-10-7).
Action: Carried unanimously.
Moved by Commissioner Duncan, seconded by Commissioner Wonch, on the approval of the resolution to Amend the Agreement with ISG Resources (Resolution # 2002-10-8).
Action: Carried unanimously.
REPORT OF THE SPECIAL COMMITTEE
ON CURRENT WATER CONSTRUCTION ISSUES
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Present |
Commissioners: |
Connie Marin (Chair), Tim Haggart |
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Management: |
Bill Cook, Virginia Cluley, Doug Wood |
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Bargaining: |
Curt Gates, Joe Davis, Jim Dravenstatt-Moceri |
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Others: |
Mary Dwyer, Kellie Willson, Rosemary Sullivan |
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Absent |
Commissioner: |
Ron Callen |
Committee Chair, Connie Marin, called the meeting to order at 12:10 p.m. Ms. Marin asked the Management and Bargaining Unit to update the committee on their joint meeting.
Management members gave an update on the two pilot programs. The Pentecostal Church Project went well. Combined Van Lines was expanded and did not end up being a pilot project. Director of Metrics and Audits Kellie Willson will follow-up with Commissioner Marin when the Combined Van Lines Project is completed and all costs are in. How water customer choice projects will be bid in the future, what the BWL does right and what is done incorrectly are issues that need to be addressed for ongoing projects.
Union members spoke of safety concerns for BWL customers. The skill level and the number of inspectors need to be continually addressed. Contractors need to be aware that the BWL is a viable competitor for customer choice projects and that BWL provides high quality service. The BWL is called first when there are water problems, thus the service relationship is continually maintained with customers. This is a relationship that outside contractors do not have.
Discussion was held on the Draft Water Customer Choice Memorandum of Understanding (copy attached). Management and Union agree to offer water customer choice in the City of Lansing by March 31, 2003. This will provide sufficient time to train and follow up on unfinished issues.
Commissioner Marin asked for each committee member’s comments.
Commissioner Marin thanked the union and management representatives for the time and their willingness to work together. She will report on the Special Committee on Current Water Construction Issues at the October 22 Board Meeting. She expressed the importance of keeping the doors open for dialogue and ongoing communication. Ms. Marin requested that a resolution be prepared for the Board Meeting on October 22. Assistant General Manager Bill Cook agreed to draft the resolution.
The meeting was adjourned at 1:15 PM.
Respectfully submitted
Connie Marin, Chair
Special Committee on Current Water Construction Issues
Water Customer
Choice
(Resolution #
2002-10-9)
WHEREAS, concerns about the quality and reliability of water construction under the Board of Water and Light’s Water Customer Choice program have been expressed; and
WHEREAS, on May 28, 2002, the Board of Commissioners resolved to undertake two pilot projects within the City of Lansing for a six-month period utilizing Water Customer Choice and further resolved staff to gather data on the two pilot projects and to establish a database; and
WHEREAS, on May 28, 2002, the Board of Commissioners Chairman created a Special Committee on Current Water Issues to look at water main construction concerns; and
WHEREAS, the Board’s Special Committee on Current Water Issues has met over the course of the last several months to investigate issues associated with water main construction and concludes that the Board’s management and the IBEW Local 352 have put in place appropriate processes and an action plan to protect the water quality, reliability and fiscal responsibilities of the Board of Water and Light for the Water Customer Choice program.
RESOLVED, That the Board of Water and Light Water Customer Choice program be expanded to include the City of Lansing by March 31, 2003.
Staff Remarks: The Board’s Special Committee on Current Water Issues has met over the course of the last several months to investigate issues associated with the Board’s Water Customer Choice program and the City of Lansing’s CSO program. The Committee on Current Water Issues concludes that the Board’s management and the IBEW Local 352 have put in place appropriate processes and an action plan to protect the water quality, reliability and fiscal responsibilities of the Board of Water and Light for the Water Customer Choice program. Upon Board approval, the Board’s management and IBEW Local 352 will be signatory to a Memorandum of Understanding (MOU) outlining provisions covering the Water Customer Choice program for all of its service area by March 31, 2003. The MOU also provides that Board management and the IBEW Local 352 are committed to work together to resolve outstanding CSO issues by April 2003.
Moved by Commissioner Marin, seconded by Commissioner Kelson, that the report of the Special Committee on Current Water Construction Issues be approved.
Action: Carried unanimously.
Moved by Commissioner Marin, seconded by Commissioner Smith, on the approval of the resolution to adopt the Resolution on Water Customer Choice (Resolution # 2002-10-9).
Discussion: Commissioner Marin thanked management and union participants for a positive report. She noted that both sides reached consensus and they have agreed to continue to communicate and work together. Discussion was held on training inspectors to assure they are qualified.
Action: Carried unanimously.
GENERAL MANAGER’S RECOMMENDATIONS
Background materials on items presented are on file in the Office of the Corporate Secretary.
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Resolution # 2002-10-10 |
GRANT OF EASEMENT – CARRIER CREEK |
Carrier Creek Drainage District #326 (Carrier Creek) has requested the Board of Water and Light (BWL) to grant several easements in connection with the construction, operation, maintenance and improvement of a county drain; and
In response to Carrier Creek’s request the Board of Commissioners, pursuant to Resolution No. 2001-7-11 and 2001-7-12, declared that certain property interests were not needed for BWL operations; and
Subsequent to the Board’s declaration, Carrier Creek changed its drain design route and is now requesting new easements for the drain; and
BWL staff has determined that the below described property interests are not needed for the operation of the BWL and may be utilized by Carrier Creek; and
BWL staff has conducted an appraisal of the property interests and determined the fair market value to be $31,700 in total; and
The BWL has incurred staff administrative costs reviewing this matter and may recover such costs up to $3,000.
RESOLVED, That the below described property interests are not needed for the operation of the Board of Water and Light (BWL); and
RESOLVED FURTHER, That the Board of Commissioners hereby authorizes the granting of three easements to Carrier Creek Drainage District #326 for the construction, operation, maintenance, and improvement of a county drain in consideration of the payment of $31,700 plus staff administrative costs not to exceed $3,000; and,
RESOLVED FURTHER, That the Corporate Secretary is directed to transmit notice of this authorization to the City Clerk and submit the easement to Lansing City Council for approval; and,
RESOLVED FURTHER, That this grant of easements is subject to the approval of Lansing City Council and any other limitations contained in the Lansing City Charter and Codified Ordinances; and
RESOLVED FURTHER, That the proceeds from this grant of easements shall remain with the funds and accounts of the BWL; and
RESOLVED FURTHER, that Resolution No. 2001-7-11 and Resolution No. 2001-7-12 are hereby rescinded.
Property Descriptions
The Property owned by the Board of Water and Light is located at the street address 3725 S. Canal Road, located in Delta Township, County of Eaton, State of Michigan and legally described as:
Board of Water and Light-owned Property:
Beginning at the Center of Section 34, T. 4 N., R. 3 W., Delta Township, Eaton County, Michigan: thence S 89°58’53” E 660.24 ft. along the east-west 1/4 line of Section 34; thence S 27°21’43” E 893.10 ft.; thence N 61°39’11” E 284.86 ft.; thence N 55°36’28” E 1597.68 ft., more or less, to the east line of section 34; thence S 00°03’24” E 36.33 ft. on the section line; thence S 55°36’28” W 3192.57 ft., more or less, to the north-south 1/4 line; thence along the north-south 1/4 line N 00°11’34” W 1595.36 ft., more or less, to the Point of Beginning.
And Board of Water and Light-owned Property:
West 1/2 of Section 34 except Highway land & except Canadian National Railroad land & except commencing 325 ft. West of the N.E. corner of the N.W. 1/4 of Section 34; thence W 330 ft.; thence S 660 ft.; thence E 330 ft.; N 660 ft. to Beg. & also except that part lying Southeasterly of the railroad land, all on Section 34, T. 4 N., R. 3 W., Delta Township, Eaton County, Michigan.
EASEMENT AREA DESCRIPTIONS:
Overflow Drain
Commencing at the Center of Section 34, T. 4 N., R. 3 W., Delta Township, Eaton County, Michigan: thence S 89°58’53” E along the east-west 1/4 line of said Section 34 a distance 16.09 ft.; thence S 34°23’22” E 774.00 ft.; thence S 11°03’45” E 299.48 ft.; thence S 34°23’22” E 201.42 ft. to the Easement Area Point of Beginning: thence S 55°36’28” W 45 ft.; thence S 34°23’22” E 60 ft., more or less, to the northerly line of Canadian National Railroad land; thence N 55°36’28” E along said northerly railroad line 400 ft.; thence N 34°23’22” W 60 ft.; thence S 55°36’28” W 355 ft., more or less, to the Easement Area Point of Beginning.
Bypass Drain (# 1)
Beginning at a point on the east-west 1/4 line of Section 34, T. 4 N., R. 3 W., Delta Township, Eaton County, Michigan that is S 89°58’53” E 16.09 ft. from the Center of Section 34: thence continuing on said 1/4 line S 89°58’53” E 60.60 ft.; thence S 34°23’22” E 750.08 ft.; thence S 11°03’45” E 299.48 ft.; thence S 34°23’22” E 251.09 ft., more or less, to the northerly line of Canadian National Railroad land; thence S 55°36’28” W along said northerly railroad line 95 ft.; thence N 34°23’22” W 60 ft.; thence N 55°36’28” E 45 ft.; thence N 34°23’22” W 201.42 ft.; thence N 11°03’45” W 299.48 ft.; thence N 34°23’22” W 774 ft., more or less, to the Point of Beginning.
Bypass Drain (# 2)
Beginning at the intersection of the south line of Millett Highway and the north-south 1/4 line of Section 34, T. 4 N., R. 3 W., Delta Township, Eaton County, Michigan, said P.O.B. being 33 ft. southerly of the North 1/4 corner of Section 34: thence southerly along said north-south 1/4 line 165 ft.; thence Northwesterly 167.1 ft., more or less, to a point on the south right of way line of Millett Highway that is 25 ft. west of the Point of Beginning; thence East along the south right of way line of Millett Highway 25 ft. to the Point of Beginning.
Staff Remarks: These easements will permit the Eaton County Drain Commission to operate a certain county drain in a location easterly of the existing power plant building and coal supply trackage. This Resolution amends and replaces Resolutions #2001-7-11 and 2001-7-12 passed last year (the drain design route sought by the Eaton County Drain Commission has been changed since those resolutions were passed.) The Board of Water and Light currently operates water lines, electrical lines and communications lines on parts of the Easement Areas and may have the need in the future to install additional facilities within the Easement Areas. Immediate access to any of these existing or future additional facilities may be necessary at any time and therefore, as a condition of granting the easement, staff will require provisions allowing the BWL immediate access and the ability to install additional facilities within the Easement Areas.
Moved by Commissioner Kelson, seconded by Commissioner Marin, on the approval of the resolution to Grant an Easement to Carrier Creek (Resolution # 2002-10-10).
Discussion: Assistant General Manager Cook stated that easements were issued previously to Carrier Creek, but now the location is being changed.
Action: Carried unanimously.
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CONTINUING DISCLOSURE CERTIFICATE |
RESOLVED, That the attached resolution authorizing the General Manager or the Chief Financial Officer to sign a continuing disclosure certificate in connection with the issuance of bonds by the Michigan Public Power Agency (MPPA), be approved.
Staff Remarks: The continuing disclosure certificate is also enclosed. Each member city of MPPA is being asked to approve a similar resolution. MPPA is refunding (refinancing) all outstanding Belle River bonds. Depending on the interest rate, this should save the BWL considerable purchased power expense. The exact savings will be available after the bonds are sold next month.
Moved by Commissioner Wonch, seconded by Commissioner Marin, on the approval of the resolution on Continuing the Disclosure Certificate (Resolution # 2002-10-11).
Discussion: Chief Financial Officer Dana Tousley stated that current interest rates are not yet available. He stated that this will be a savings to MPPA. The BWL is one of nine members that need to approve the disclosure certificate.
Action: Carried unanimously.
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AGREEMENT TO COOPERATE WITH GOODYEAR TIRE AND RUBBER COMPANY AND AMEND THE CONSENT DECREE |
The Board of Water and Light (BWL) is a Potentially Responsible Party (PRP), nominally responsible for contamination at the Motor Wheel Superfund site (Site); and
The BWL, along with other PRPs, signed a Consent Decree related to the cleanup of this Site on November 11, 1993, and the decree was entered by the United States District court on November 11, 1994; and
Goodyear Tire and Rubber Company, one of the PRPs, has agreed to indemnify the BWL, and remediate the contamination from this Site; and
The remediation strategy of Goodyear may involve shutdown and replacement of certain low-priority BWL water production wells; and
Goodyear has requested the BWL to cooperate in this remediation effort by allowing the shutdown and replacement of low-priority BWL water production wells at no cost to the BWL; and
BWL and Goodyear wish to memorialize this understanding by signing an “Agreement to Cooperate,” and
The Agreement to Cooperate has been approved by Goodyear, and is part of an overall resolution approved by governmental agencies and reviewers (USEPA, MDEQ Superfund section, Safe drinking Water Act authorities); and
The Agreement to Cooperate is tied, in part, to the Amendment to the Consent Decree; and
The Board is responsible to manage water services in a manner consistent with the best practices.
RESOLVED, That the General Manager and Corporate Secretary are authorized to sign the Agreement to Cooperate; and
RESOLVED FURTHER, That the General Manager and Corporate Secretary are authorized to sign the Amendment to Consent Decree.
Staff Remarks: This Agreement is necessary to help ensure an effective and timely clean up of the BWL’s drinking water source. BWL drinking water wells pull an average of over 500,000 gallons of water a day, and would overpower any remedial system put in place. Without our cooperation, the normal operation of our system would pull the contamination towards our wells. Through this Agreement, Goodyear would protect the BWL from financial impact and mitigate any lost capacity due to shutdown of requested wells by the installation of new wells. After remedial efforts have restored the drinking water source, any wells that had been shut down will be able to be put back in to service.
Moved by Commissioner Wonch, seconded by Commissioner Kelson, on the approval of the resolution to Cooperate with Goodyear Tire and Rubber Company and Amend the Consent Decree (Resolution # 2002-10-12).
Discussion: Assistant General Manager Cook reported that the BWL will be shutting down some wells and Goodyear will compensate the BWL for this. There is an agreement that Goodyear will replace the wells and clean up the original wells.
Action: Carried unanimously.
UNFINISHED BUSINESS
None.
NEW BUSINESS
None.
RESOLUTIONS
None
ASSISTANT GENERAL MANAGER'S REMARKS
BWL Water Cross Connection Program. The BWL is filing a new Cross Connection Program with Michigan Department of Environmental Quality (MDEQ). A cross connection is a physical interconnection, arrangement or condition of a customer’s plumbing through which the potable water furnished by the BWL’s distribution system could become contaminated if backflow gets into the system. This update will include more inspections, and currently involves industrial and commercial customers. Discussion was held on charging customers for the inspections and repeat inspections. The new state plumbing code requires yearly inspections at the owners cost. BWL should dialogue with the City on this issue.
BWL vs Pathway. A lawsuit was filed last week against the manufacturer of the steam main joints for the 20” steam line to General Motors. In year 2000, there was a catastrophic failure of the steam line and this has been ongoing since then.
Sunset and Comfort Property. The Commissioners asked what kind of contamination was found at the Sunset and Comfort Street property. Environmental Services Manager Nick Burwell responded that the draft information given to us by the City's consultant indicated some metals contamination that would be expected from ash, such as Cadmium, Selenium, Zinc and Lead. In addition, unexpectedly high levels of Arsenic were reported. The information from the City also indicated that a World War II munitions plant was located on or near the site, which may explain some of the contamination levels. Even after a final report is received from the City's consultant, it will likely be another 18 months before the extent of the contamination is known. This is because the environmental investigation procedure is defined by regulations and may include drilling wells, soil borings, sampling, etc.
Commissioner Smith commended Commissioner Marin, who served as chair of the Special Committee on Water Issues, for her leadership in coordinating efforts between management and the union, which resulted in an amicable Memorandum of Understanding on Water Customer Choice.
Commissioner Wonch commended BWL employees including Director of Metrics and Audits Kellie Willson and Corporate Secretary Mary Sova for their assistance to the Commissioners during this busy time. She expressed her appreciation to all employees for their ability to not just cooperate but to collaborate and truly work together.
Commissioner Haggart also commended the Special Committee on Water Issues for an excellent job in resolving differences. He expressed confidence that resolution will be reached on the remaining issues.
Commissioner Marin thanked the committee members who served on the Special Committee on Water Issues. She challenged the committee to continue working together as a team.
Commissioner Callen reported that the Commissioners held a retreat on October 12 to discuss the qualities and characteristics of a new general manager. Some of the attributes discussed for the new general manager are openness, honesty, affirming, to trust and to be able to be trusted. That person should be able to embrace diversity and focus on customer satisfaction. Having issues identified will help a prospective candidate know if this is something they can support and then lead the BWL in the direction that has been established.
Commissioner Kelson stated that he is pleased with the new direction the BWL is taking. He announced that he will be relocating to Atlanta, Georgia in November where he will continue his employment with General Motors. He stated that he found his affiliation with the Board of Commissioners a rewarding experience, and wished the Commissioners continued success in their endeavor to move the BWL forward.
Commissioner Callen thanked Mr. Kelson for his dedication, devotion and courage during this time of transition as the BWL searches for a new general manager.
EXCUSED ABSENCE
On motion by Commissioner Duncan and seconded by Commissioner Haggart, that the absence of Commissioner Royal 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.
David Nicklesen of Combined Van Lines commended the BWL on opening the lines of communication with regard to customer choice projects. Mr. Nickleson expressed his satisfaction with the final results of the Combined Van Lines project and noted that he is encouraged with the major strides taken by BWL to become more developer friendly.
Rick Hookstra, owner of Hookstra Company and construction manager for the Combined Van Lines project, spoke on the importance of having clear operational and inspection policies in place for better project coordination between BWL and contractors. Mr. Hookstra expressed his support for water customer choice in Lansing and thanked management and the union for resolving their differences on the customer choice program. This effort will improve the process for overseeing projects that utilize private contractors and ensures trained BWL inspectors will inspect the projects.
BWL employee Curt Gates stated that he continues to be impressed with the distinguished group of Board of Water and Light Commissioners serving on the Board. He expressed his appreciation to hear the Commissioners say that they would like the BWL to return to being a huge happy family. He applauded the Commissioners for their support and efforts.
On motion by Commissioner Wonch, seconded by Commissioner Haggart, the meeting adjourned at 7:10 p.m.
/s/ Mary E. Sova, Secretary
Filed with Lansing City Clerk
October 31, 2002