Final – Approved by Board 5/25/04

MINUTES OF THE BOARD OF COMMISSIONERS' MEETING

LANSING BOARD OF WATER AND LIGHT

__________________________

Thursday, March 25, 2004

___________________________


The Board of Commissioners met in the Boardroom of the Administrative Offices, 1232 Haco Drive, Lansing, Michigan.

Present:

Commissioners Gary L. Calkins (Speakerphone) Ronald C. Callen, Nancy W. Duncan, Tim Haggart, Ifield P. Joseph (Arrived 5:45), Connie Marin, Robin M. Smith and Nancy Wonch

Absent:

None

The Secretary declared a quorum present.

Chairperson Callen called the meeting to order at 5:30 p.m.


APPROVAL OF MINUTES

Motion by Commissioner Wonch, seconded by Commissioner Smith, to approve the minutes of the regular Board meeting held January 29, 2004.

Carried unanimously.


PUBLIC COMMENTS

THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER SUBJECT NOW, OR AT THE END OF THE MEETING.

BWL employee Joe Davis, President of IBEW Local 352, commented on the status of union negotiations.  After an unsuccessful mediation, the union filed a petition for Fact Finding to listen to both sides of the issue.  Mr. Davis stated that as each day passes, it becomes more important for the union and management to have some kind of dialogue to resolve the stalled negotiations and find common ground.  He noted that each day the labor agreement is unresolved, it is detrimental to the well-being and mental health of those employees who are involved.  Mr. Davis wished Commissioner Marin the very best as she relocates to Texas.


COMMUNICATIONS

Letter received from Commissioner Connie Marin announcing her resignation as Commissioner of the Board of Water and Light effective March 31, 2004 because she is retiring from Ingham Regional Medical Hospital.  Commissioner Marin plans to return to her home state of Texas.

Received with regret and placed on file.


COMMITTEE REPORTS

FINANCE COMMITTEE REPORT

(Resolution 2004-03-01)

Committee Members Present:  Commissioners Callen, Duncan, Haggart, Joseph, and Smith.  Commissioner Marin was also in attendance.  Excused Absence:  Commissioner Wonch.


The Finance Committee met on February 24, 2004, at 5:30 p.m. to discuss the following items:

  1. Financial Plan Assumptions
  2. Financial Report – January 31, 2004
  3. Sole Source Report
  4. Inter-Utility Transfers
  5. City Request for Additional Dollars
  6. Update on Proposals for Ottawa Station


Financial Plan Assumptions
.  Senior Vice President of Finance and Management McFarland presented an overview of FY 2005 financial plan assumptions.  In summary:

Financial Goals


Sales Forecast

Utility

FY’05 Forecast

FY’04 Budget

% ’05 Budget

to ’04 Budget

Electric – Retail

2,455,000

2,545,000

-3.5%

Electric – Wholesale

681,000

591,000

15.2%

Electric (mwh)

3,136,000

3,136,000

0.0%

Water (ccf)

11,139,870

11,244.467

-0.9%

Steam (mlb)

2,056,000

1,926,700

6.7%

Chilled Water (mhrs)

11,931,000

11,931,000

0.0%


Basic assumptions include normal weather, trended ten-year growth rates, General Motors (GM) consumption provided by GM, and that all available electric capacity not sold at retail is sold at wholesale.

Revenue Assumptions

Operating Expenses

Capital Expenditures

Other Considerations


Following discussion, the Committee consented with the fundamental FY 2005 financial plan assumptions presented.

Financial Report.  Mr. McFarland reviewed the BWL’s financial performance for fiscal year-to-date through January 2004.  For the six months into this fiscal year, BWL revenues are up 1% compared to budget, while expenses are on budget.  Consequently, net income at $10.6 million is 13% ahead of budget.  Electric sales were higher due to wholesale sales; water sales were down due to cool weather last summer.  Steam sales were up slightly due to weather.  Chilled water sales are down.  He pointed out that the 8% variance in the budgeted operating income was due to the August 14th blackout, premium sharing on health insurance, which has yet to occur, and timing issues involving the conversion of Erickson Station to Western Coal and the Electric Energy Cost Adjustment. Certain factors reflect timing and actual performance is expected to be close to budget with planned expenditures and unit down time as the fiscal year ends.

BWL Sole Source Report.  General Manager Novick reported that he wants to ensure the Board is receiving relevant information from the Sole Source Report to accomplish its oversight responsibilities.  He noted that prior to July 2003, the purchasing policy required reporting purchases equal to or greater than $15,000.  The new purchasing policy contains emphasis on the requirement for competitive bidding for purchases over $5,000.  He suggested evaluating the lower $5,000 threshold to determine if it should be increased or if there is a better way to summarize the documentation to assure purchasing procedures are being followed and that the report is more meaningful to the Board.  Mr. Novick suggested continuing with the current Sole Source Report requirement while staff explores other appropriate reporting mechanisms.  A recommendation will be brought to the Committee in the future for review and input.  The Committee emphasized the importance of having proper internal controls and an appropriate reporting mechanism that is understandable to assure procedures are being followed.

Inter-Utility Transfers.  Mr. Novick and Mr. McFarland stated that to ensure present accounting and planning processes comply with past actions taken by the Board and current Board preferences, the issue of inter-utility transfers needs to be clarified.  Board Resolution 2003-4-1 on Inter-Utility Transfers, approved April 8, 2003 has created an accounting issue that needs to be addressed.  That resolution provided that all inter-utility transfers prior to FY 2004 be waived with two exceptions:  (1.) existing formal inter-utility loans and interest-bearing notes and (2.) those associated with GM’s Lansing Grand River Plant incentive package.  It further provided that the budget for each utility will be balanced at the start of the fiscal year with an interest-bearing note if needed.

They noted that the accounting process is best used to help identify and track business problems and not to fix business issues.  The Committee was asked to clarify two questions:  (1.) whether BWL has three or four utilities for financial reporting purposes  starting with FY 2006 and (2.) whether formal promissory notes are required for existing and future inter-utility transfers.

Overhead Cost Methodology.  Mr. McFarland reported that the Overhead Cost Methodology approved by the Board on July 22, 2003 (Resolution 2003-7-14) does not appropriately reflect certain items such as general facilities and management salaries.  Moreover, he stated that the related allocation factors do not appropriately reflect the four-utility structure.  He recommended a review of the overhead methodology to adjust it to a more appropriate accounting practice.  Mr. Novick noted that accounting issues such as overheads and allocation factors generally should not require Board approval.

Following discussion, the Committee requested the following for consideration at the next regular meeting:

  1. A resolution to amend Resolution 2003-4-1 on Inter-Utility Transfers to stipulate that the BWL operates four financially independent utilities; namely, Electric, Water, Steam and Chilled Water.  Appropriate accounting entries will replace formal promissory notes to record transactions among the four utilities.

  2. A resolution to rescind Resolution 2003-7-14 on Indirect Cost Allocations stating that the Board delegates to management the responsibility of handling the allocation factors and overhead methodology.   The resolution should clarify why it is being rescinded with emphasis that staff will conduct an analysis of allocation factors to set the process to change the methodology for FY 2006.

City Request for Additional Dollars.  General Manager Novick reported that he has been meeting with various city officials and Council Members to talk about the BWL’s financial obligations to the City of Lansing and the citizens of Lansing.  The purpose for these discussions is to clarify a confusion that exists about the equity ownership of the BWL.  As with a private company, the equity of the company is owned by the owners of the company.  Essentially, only the owner of a company can sell the company,  by City Charter, only the citizens of Lansing can sell the BWL. Consequently, the citizens of Lansing own the BWL and its equity.  The Board, as the citizens’ agent, manages the citizens’ equity investment.  Mr. Novick noted that he has met with City officials to discuss the City’s fiscal dilemma during the past couple of weeks.


Update on Proposals for Ottawa Station
.  General Manager Novick reported that the City has put forth a draft proposal for an Ottawa Station development feasibility study.  He introduced discussion as to whether there is interest by the Board of becoming involved in the development business.  Following input, the sense of the Committee was for the BWL to focus its efforts on providing reliable utility services at a reasonable price.  The BWL should work with the City by retaining the services of someone who would be interested in marketing the development of the Ottawa Station with the right combination of uses, people and financing or pursue any other option that keeps the BWL out of the development business but finds a party to develop Ottawa Station.


Closed Session - S
tatus of Union Negotiations.  By motion of Commissioner Smith, seconded by Commissioner Joseph, that the Finance Committee convene in closed session to discuss the status of collective bargaining negotiations (7:40 p.m.).

Action:  Adopted by roll call vote:

Yeas:

Commissioners Callen, Duncan, Joseph, Marin, and Smith.

Nays:

None

Absent:

Commissioners Wonch


The Finance Committee returned to open session at 8:23 p.m.

No recommendations were brought forth from the closed session.

There being no further business, the meeting was adjourned at 8:23 p.m.

Respectfully submitted,

Nancy Duncan, Chair

Finance Committee


Motion
by Commissioner Duncan, seconded by Commissioner Wonch, to approve the report as presented.

Action:  Carried unanimously.


NOMINATING COMMITTEE REPORT

(Resolution 2004-03-02)

Chair Pro Tem Recommendation


The Nominating Committee met on March 18, 2004 at 12:50 p.m.  Members present were Commissioners Connie Marin, Tim Haggart, Robin Smith (by speakerphone), and Nancy Wonch.  The purpose of the meeting was to consider candidates for the Chair Pro Tem vacancy.  By a vote of 3 to 1, the Committee submits the following nomination for consideration at the regular meeting on March 25, 2004.


The Nominating Committee recommends the appointment of Commissioner Tim Haggart as Chair Pro Tem for the balance of this fiscal year ending June 30, 2004.

There being no further business, the meeting adjourned at 1:05 p.m.

Respectfully submitted,

Nancy Wonch, Chair

Nominating Committee

Motion by Commissioner Marin, seconded by Commissioner Smith, to approve the report as presented.

Discussion:  Commissioner Wonch reported that the purpose of the Nominating Committee meeting was to fill the Chair Pro Tem vacancy due to changes in officers.  The Chair Pro Tem office has been vacant since former Chair Diane Royal left the board on February 18th.  Commissioner Callen moved from Vice Chair to Chair and Commissioner Duncan moved from Chair Pro Tem to Vice Chair upon former Commissioner Royal’s departure from the Board.


Action
:  Carried unanimously.


MANAGER’S RECOMMENDATIONS

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

Resolution 2004-03-03

CONSULTANT AGREEMENT

RESOLVED, that the Board of Commissioners authorize Chair Ronald Callen to negotiate and execute a contract with Kellie L. Willson.  Ms. Willson will be retiring from the Board of Water and Light on April 9, 2004.  The Commissioners wish to retain her at an hourly rate following her retirement to work on special projects as requested by either the BWL Commissioners or General Manager.


Motion
by Commissioner Wonch, seconded by Commissioner Duncan, to approve the resolution.

Discussion:  Chairperson Callen stated that there are a number of issues that Ms. Willson is working on and her expertise will be needed during this transition period.


Action
:  Carried unanimously.


Resolution 2004-03-04

INTER-UTILITY TRANSFERS

WHEREAS, the Board of Commissioners has determined that formal promissory notes are not appropriate for existing and future inter-utility transfers, and


WHEREAS, the Board of Commissioners stipulates that the BWL operates four financially independent utilities.


RESOLVED, that Resolution 2003-4-1 be rescinded, and


RESOLVED FURTHER, as soon as practicable, but no later than Fiscal Year 2006, the financial statements of the BWL are to segregate and report the financial activities for each of the Water, Electric, Steam, and Chilled Water utilities in conformity with generally accepted accounting principles; and


RESOLVED FURTHER, that subsequent annual budgeting process will take into consideration the concept and practice of financially independent Water, Electric, Steam, and Chilled Water utilities; and


RESOLVED FURTHER, that appropriate accounting entries will replace formal promissory notes to record transactions among the four utilities.


Staff Remarks:  As discussed at the recent Finance Committee meeting, these actions are necessary to ensure present accounting and planning processes comply with current Board preferences regarding inter-utility transfers and the use of promissory notes.


Motion
by Commissioner Duncan, seconded by Commissioner Marin, to approve the resolution.

Action:  Carried unanimously.


Resolution 2004-03-05

INDIRECT COST ALLOCATIONS

WHEREAS, the Board of Commissioners has determined that Indirect Cost Allocations are a management cost accounting issue that does not require Board action upon revision.


RESOLVED, that Resolution 2003-7-14 be rescinded, and


RESOLVED FURTHER, that the Board of Commissioners hereby delegates to management the responsibility of establishing, monitoring, and revising appropriate Overhead Cost Methodology and allocation factors.


Staff Remarks
:  A complete analysis of the allocation factors and methodology will be completed and revisions implemented as soon as practicable, but no later than the beginning of FY 2006.


Motion
by Commissioner Wonch, seconded by Commissioner Smith, to approve the resolution.

Action:  Carried unanimously.


UNFINISHED BUSINESS

None


RESOLUTIONS


Resolution 2004-03-06

RESOLUTION HONORING CONNIE MARIN

Whereas, It is with pleasure and a privilege that the members of the Board of Commissioners honor Connie Marin as she brings to a close an outstanding tenure of public service to the Board of Water and Light and the people of this city as she completes two and one-half years of dedicated service; and


WHEREAS,
This community leader was appointed to the Board on October 29, 2001.  While she served on the Board and as a member of the Human Resources Committee, she played a pivotal role in the success of the Board of Water and Light by sharing her expertise from a broad range of issues promoting health, education, employment opportunity and diversity.  She chaired the Board’s special committee on water issues to address water main construction issues associated with water customer choice in 2003; and


Whereas
, For nearly a quarter of a century, Connie has been a driving force in the community promoting human and health services.  She has brought to this Board an insight into the concerns and needs of this community.  Connie is retiring from Ingham Regional Medical Center on April 1, 2004 where she has been employed since 1986 as coordinator of special projects, working with department heads to develop solutions for critical issues confronting the hospital.  In addition to her job-related responsibilities, she served on various community boards such as the Lansing Board of Fire Commissioners and worked on behalf of the Ingham County Health Department to develop the Capital Area Health Alliance Committee, the Nutrition Task Force and the Ingham Health Plan.  Among her distinguished honors, she is the recipient of the Boy Scouts of America Whitney Young Award for services rendered to under served populations, Lansing YWCA’s Diana Award for programs developed to reach women of color, and the Capital Area United Way Marian Marshall Award for 25 years of volunteer service; and


WHEREAS
, We are sincerely grateful to Connie Marin’s outstanding vision and leadership.  The people of the Lansing community and the employees of the Board of Water and Light have benefited from her long hours and hard work on this Board.


RESOLVED
by the Board of Water and Light Commissioners, That the members of this Board congratulate Connie Marin upon her retirement and thank her for all that she has contributed as a member of this Board.  On this 25th day of March, 2004, we wish Connie and her family the very best and well-deserved happiness and fulfillment in her new home in Texas.


Motion
by Commissioner Wonch, seconded by Commissioner Duncan, to approve the resolution.

Discussion:  Each of the Commissioners offered their good wishes and congratulated  Commissioner Marin on her retirement.  They commented that Commissioner Marin was a joy to work with and thanked her for her leadership role in assisting with water choice program issues.  They also thank her for emphasizing diversity and continual reminders that we all have a responsibility in that regard.


Action
:  Carried unanimously.


Resolution 2004-03-07

RESOLUTION HONORING DIANE R. ROYAL

WHEREAS, It is with deep appreciation that we offer tribute to Diane Royal as she brings to a close an outstanding tenure of public service to the Board of Water and Light and the people of this city as she completes over eight years of dedicated service; and

WHEREAS, Diane Royal was appointed as an At Large Commissioner on October 9, 1995.  She was elected Vice Chair of the Board in 1996 and held that post four times.  Diane became Chair of the Board in 1998 and served in that capacity for four years between 1998 and 2004 and served on the Executive, Finance, Human Resources, and Nominating Committees; and

WHEREAS, As a Board Commissioner, Diane Royal played an integral role over the years in a variety of matters affecting this utility.  Her expertise in utility law and her depth of experience in the utility industry brought an exceptional understanding of policy-setting responsibilities.  She has extensive experience in litigation and regulation in the electric utility industry.  Diane’s deep commitment to the Board of Water and Light and the City of Lansing has been well demonstrated by the countless hours she has contributed to the Board.  She never lost sight of the goal of assuring that electric, water and steam are reliable and delivered at the lowest price possible; and

WHEREAS, Diane Royal is past chair of the Public Utility Law Committee, Administrative Law Section, State Bar of Michigan.  She has a strong sense of social justice and an unshakable belief in our system of self-government.  Her involvement in public issue advocacy on behalf of disadvantaged clients and non-profit organizations clearly demonstrates the highest qualities of citizenship and unselfishness.  She may never know how many lives she has touched, but there are many who know her value; and

WHEREAS, Diane has demonstrated high ideals of personal endeavor through her civic involvements.  She has touched many lives through her career and community activism.  Her professionalism, hard work, and sensitivity to the needs of the public have won for her the respect and admiration of all who have the good fortune of knowing her; and

RESOLVED by the Board of Water and Light Commissioners, That the members of this Board honor and thank Diane R. Royal for her distinguished service on this Board.  Indeed, her influence will long be felt.  In regular session this 25th day of March, 2004, we wish Diane our best wishes for the future and happiness as she encounters new challenges.

Motion by Commissioner Wonch, seconded by Commissioner Marin, to approve the resolution.


Discussion:  The Commissioners offered their good wishes and continued success to former Commissioner Royal.  They acknowledged her many sacrifices by the countless hours spent away from her independent business to serve as Chair and Commissioner of the Board.  They thanked her for the tenacity and strength she brought to the Board and ability to provide guidance in addressing tough issues.  Her departure will leave a void on the Board.


Action
:  Carried unanimously.

 

Tributes Offered by Mayor Tony Benavides


Chairperson Callen welcomed Mayor Tony Benavides who appeared before the Board to pay honor to Commissioners Marin and Royal.  Mayor Benavides presented certificates of recognition and a gift on behalf of the citizens of Lansing for dedicated services to the City by serving on the Board of Water and Light.  He expressed appreciation to both of these women for their courage and commitment to this community.


GENERAL MANAGER’S REMARKS

General Manager Novick reported that staff presentations have been prepared to update the Board on the status of the Board of Water and Light’s (BWL) new Outage Management System, Erickson Western Coal Project, high-pressure turbine failure at Eckert Station, and the February Financial Report.

 

Outage Management System.  William Cook, Senior Vice President of Operations, introduced Tim Palmer, Manager of Electric Operations, who described the Outage Management System (OMS).  This project involves the implementation of software to help better manage and organize outage information.  It will allow the BWL to locate outages sooner and have better customer responses.  The OMS project is part of a continuing effort to improve customer service, and specifically to improve the BWL’s response during storms and outages.  The system will allow for the elimination of trouble call slips, a report that is printed for every customer call-in when reporting no lights and wire down.  The OMS will record all calls and will allow for caller input from either a PC based system from the Customer Service Department, or directly from our toll-free “Power Line” high-volume call answering service.  A major feature of the OMS is an “outage analysis” function.  This function determines the most probable location of the outage based on an algorithm that groups calls on a circuit within a certain period of time.  This will allow for faster determination of crew dispatch locations.  Crew management is another feature of the OMS.  It allows for optimized crew routing, drag & drop crew assignments on the system map, and a clear visual tracking of all crews for safety when re-energizing outage areas.  “What-If” switching capabilities exist, along with actual circuit cutover processes that include the recalculation of customers that are still without power or have been restored, based on partial circuit restoration steps during an outage.  To make the system as usable to the system dispatchers, all of the above functions and information can be displayed on tabular screens within tables, or graphically on digital maps.  Post outage analysis reports will be available that can assist in determining general outage causes, trending of problem areas, and individual queries based on customer power complaints.  Summarized outage information will be available during an outage on individual PCs to upper management and executives on the BWL’s Intranet that indicate the magnitude of the outage and the restoration progress, again both graphically and in table form.


Update on Erickson Station
.  Senior Vice President of Operations Bill Cook introduced Dan Flynn, Principle Engineer in the Project Engineering Department to describe the Erickson Western Coal Project.  This is the second largest project the BWL has had in the last 15-20 years.  There have been several hundred people on the Erickson site since the outage started the first part of February; the plant has been down and is scheduled to be back on April 9th.  This project resulted from the Board’s approval of the BWL’s  Nitrogen Oxides ( NOx) compliance Strategy in 2002.  The conversion of Erickson Station to burn Western Coal is the largest project in this strategy and provides two major benefits: reducing NOx emissions to meet Clean Air Act requirements and fuel cost savings of approximately $4 million per year.  Project goals are: on line April 9, 2004 on 100% Western Coal, safely and efficiently operate at full load, NOx emissions at 0.21 lbs/mmbtu or less, produce a saleable fly ash product, and achieve projected fuel cost reductions.  Mr. Flynn commented the project could not be completed without the cooperation of nearly the entire BWL.  Specifically recognized were:  Erickson staff, Maintenance and Construction Resource Center, Electric Production Engineering, Purchasing, and all of the Project Engineering Resource Center; and in addition all of the contractors and craft labor.   The project status was stated as: on time for start-up April 9, 2004 and on budget at $25,725,000.  Photographs of ongoing work were shown and interesting facts as to the magnitude of the project were stated.

 

[Commissioner Robin Smith left the meeting at 6:20 p.m.]


February Financial Report.
  Senior Vice President of Finance and Administration Dennis McFarland presented the BWL’s financial statistics by utility and performance for fiscal year-to-date through February, 2004.  For the eight months into this fiscal year, BWL revenues are 1% over budget, while expenses are at budgeted levels.  Net income at $11.9 million is 2% ahead of budget.   Mr. McFarland identified major items accounting for the variance between actual and budgeted net income, some of which are related to timing issues that will reverse prior to the end of the fiscal year.  By fiscal year end, Mr. McFarland anticipates that we will be slightly over budgeted net income levels.  A list of pending items which may affect BWL’s net income and/or cash position between now and the end of the fiscal year was presented.  These items included union contract settlement, sale of environmental emission allowances, disposition of Ottawa Station and other items.

Eckert Station No. 2 Turbine Failure.  Senior Vice President of Operations Bill Cook introduced Dick Peffley, Director of Production to give an update on the equipment failure of a high-pressure turbine at Eckert No. 2.  Mr. Peffley reported that Eckert Station No. 2 turbine experienced a failure on February 19, 2004, just 13 days after coming out of a scheduled turbine overhaul.  Three rows of blading, which had recently been installed by the original equipment manufacturer, appeared to have failed causing extensive damage to the turbine.  Repairs are in the process of being completed and the unit should be back in operation sometime during the month of May.  The estimated BWL cost for repairs only is between $300,000 and $600,000.  This estimate does not include lost revenue or loss of potential capacity payments.  This loss will also not meet the insurance deductible of $2 million.

 

Request for Topic Summaries

 

Commissioner Wonch requested, on behalf of Commissioner Smith who needed to leave earlier in the meeting, for summaries of the topic presentations to review at a later time.


COMMISSIONERS’ COMMENTS

Chairperson Callen congratulated Commissioner Haggart on his appointment as Chair Pro Tem, and thanked him for accepting the position through June 30, 2004.

 


EXCUSED ABSENCE

On motion by Commissioner Haggart and seconded by Commissioner Marin, that the absence of Commissioner Smith be excused.  (Commissioner Smith left the meeting at 6:20 p.m.)

Carried unanimously.


PUBLIC COMMENTS

BWL employee Curt Gates, Business Manager for IBEW Local 352, extended a welcome to newly appointed Commissioner Gary Calkins.  Mr. Gates made several comments about the stalled negotiations between management and the union.  He stated that the union contract renewal is five months overdue; the union negotiating team has six team members, five of whom have multiple contract experience and one new member with no experience; the management team has two team members with negotiation experience; and the General Manager made it known that he did not like the contract from the beginning.  Mr. Gates also spoke on the new safety incentive program.  He believes that testing of bucket trucks is an issue that is not being addressed and is more crucial than just wearing safety glasses and hard hats.  Mr. Gates also recognized Commissioner Royal for her invaluable contributions to the BWL.  He thanked Commissioner Marin for the work she has done on committees and her sensitivity to employee issues.  Mr. Gates acknowledged retiring Internal Auditor Kellie Willson, and noted that she is one of the most outstanding employees at the BWL and will be missed.  Mr. Gates also inquired about the CSO (combined sewer overflow) project report that Commissioner Joseph requested at the January Board Meeting.  General Manager Novick responded that staff committed to the Board that a report would be available at the May Board meeting, and he intends to live up to that commitment.

 

[Commissioner Calkins, participating by speakerphone, excused himself from the remainder of the meeting at 7:05 p.m.]


CLOSED SESSION

Moved by Commissioner Wonch, seconded by Commissioner Haggart, that the Board meet in closed session to consult with the attorney regarding trial or settlement strategy in connection with specific pending litigation, Pandy v. Lansing Board of Water and Light, because an open meeting would have a detrimental financial effect on the litigating or settlement position of the Board of Water and Light (7:07 p.m.).

Action:  Adopted by roll call vote:

Yeas:

Commissioners Callen, Duncan, Haggart, Joseph, Marin, and Wonch

Nays:

None

Abstentions:

None

Absent:

Commissioners Calkins and Smith


OPEN SESSION

The Board returned to open session at 8:12 p.m.

No action was taken as the result of the closed session.

The Board met briefly with the Director of Metrics and Audits, Kellie Willson, to discuss transitional issues as the result of her retirement on March 31. 2004.  Ms. Willson reported that she has left no incomplete projects or studies.  She noted that a proposed job description and proposed schedule for filling the Internal Auditor position has been provided to Commissioner Haggart, Chair of the Human Resources Committee and Commissioner Duncan, Chair of the Finance Committee as a beginning point from which the Commissioners may feel free to make additions, changes or deletions.  Ms. Willson stated that she will be available should there be any questions or concerns that may arise.

ADJOURNMENT

On motion by Commissioner Wonch, seconded by Commissioner Joseph, the meeting adjourned at 8:20 p.m.


/s/ Mary E. Sova, Secretary
Filed with Lansing City Clerk
April 2, 2004