Approved by the Board: January 23, 2007
MINUTES OF THE BOARD OF COMMISSIONERS REGULAR MEETING
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The Board of Commissioners met in the Boardroom of the
Administrative Offices,
Present: Commissioners Gary Calkins, Robert Cochran, Joseph Graves, Semone James (teleconference), Julee Rodocker and Robin Smith.
(Note: 4th Ward Vacancy exists.)
Absent: Commissioner
The Secretary declared a quorum present.
Chairperson Smith asked all to rise for the Pledge of Allegiance to the Flag.
Chairperson Smith called the meeting to order at 5:39 p.m.
By motion of Commissioner Calkins, seconded by Commissioner Graves the minutes of the October 30, 2006 special board meeting were unanimously approved.
THE CHAIR ANNOUNCED THAT MEMEBERS 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.
Judith Mulha, Friends of Francis
Park noted that the purpose of their organization is to promote and enhance
Francis Park, which was established in 1908.
In 2008 they will celebrate the parks 100th birthday. Ms. Mulha requested
the Board’s participation in planning the celebration in two regards: 1) advice on returning a water feature to the
park and 2) suggestions on how to promote the return of the river aspect to the
park. She went onto state that over time
tree growth has occurred which now covers what used to be a clear view of the
river. Ms. Mulha
also reported that
June Kneostman,
None.
Resolution 2006-11-1
Joint Meeting
Board of Water and Light Commissioners
November 1, 2006
Chairperson Smith called the joint meeting to order at 7:49
a.m. The meeting was held at the
Radisson Hotel,
Councilmember’s Present: Joan Bauer, Kathie Dunbar, Brian Jeffries, Harold Leeman and, Carol Wood. Absent: Councilmember’s Sandy Allen, Tim Kaltenbach, and Randy Williams.
Commissioners Present:
Gary Calkins, Robert Cochran, Semone James,
(Note: 4th Ward Vacancy exists.)
City Staff Present: City Attorney Brigham Smith and Mayor Chief of Staff Jerry Ambrose.
BWL Staff Present: Interim General Manager Dick Peffley, Sr. Vice President of Operations Bill Cook, Manager of Finance and Planning Sue Flores, Interim Internal Auditor Charles Moore, Corporate Secretary Rhonda Jones, and Governmental Affairs Analyst Calvin Jones.
The purpose of the joint meeting was for the BWL to present an update to City Council on the following topics:
1. General Manager Selection Process. Board Chair Smith reported that a request for proposal (RFP) seeking Executive Search Services for the purpose of obtaining assistance in hiring a General Manager for the BWL was sent to respective bidders on October 25, 2006. Sealed proposals are due back to the BWL by November 10, 2006. Upon selection of an Executive Search firm the Commissioners will proceed with the General Manager selection process.
Councilmember Wood asked if the process would be similar to
the last one? She also asked if the
General Manager would have to reside in
Board Chair Smith responded by stating yes to both questions and also advised that the process would be shorten. She went onto report that the model previously developed was adopted by APPA.
2. Human Resource Audit Update. Board Chair Smith advised Council that in August 2006, Michael Goree of Growth Strategies Consulting, Inc was awarded the RFP to conduct the Human Resource Audit. Mr. Goree has since reviewed several BWL documents and met with the Commissioners and several employees including union representatives. A final report is forthcoming and tentatively scheduled for delivery by early December 2006.
Commissioner Cochran also explained that Dick Peffley, Interim General Manager has given Mr. Goree full access to the organization. During the audit he has met with 75 non-bargaining and 100 bargaining employees. Commissioner Cochran went onto report that Mr. Goree is very frank and he has received positive feedback from employees regarding their interactions with Mr. Goree. Commissioner Cochran went onto state that there is an issue with the Rules of Procedure since the current version has not been approved. However, it was suggested that upon completion of the current review each Commissioner would speak to their respective Councilmember counterpart in encouraging the adoption of the current guidelines.
Commissioner Rios advised that the Rules of Procedure would not affect the audit since this is not an investigation but an opportunity to review the process and procedures.
Board Chair Smith advised that the Human Resource department has been very receptive to the audit and in working with Mr. Goree.
3. Collective Bargaining Agreement. Board Chair Smith reported that the IBEW Local 352 ratified the union contract on October 18, 2006 and the Board approved it at a Special Board meeting on October 31, 2006. The contract represents a two-year extension that was signed and approved prior to its expiration date. Board Chair Smith went onto commend everyone for their participation in the negotiation process.
Interim General Manager Peffley also stated that the contract was different as it included a healthcare taskforce of which some individuals have already attended a seminar on the topic. He went onto state that he will work with Joseph Davis, Business Manager of IBEW Local 352 and Jim Dravenstat-Moceri, Executive Board member of IBEW Local 352 in addressing the ambiguous contract language. Mr. Peffley also stated that trying to change the contract language would have made the process more difficult whereas, the method they are utilizing will attempt to make it a more positive experience.
4. Tree
Trimming. Mr. Peffley reported that
the BWL would finish its first cycle of tree trimming by June 2007. He also stated that the next cycle should not
be as harsh as the first one and therefore, it should not warrant as many
complaints. After visiting
City Council expressed concerned over pending tree trimming areas, the relationship between the BWL and the City Forestry department, and policy.
Staff explained that the BWL is open to any suggestions
including that of working with the City Forestry department as suggested by
Councilmember Dunbar. It was also noted
that the Forestry department is must be notified anytime the BWL needs to cut a
tree limb 6 inches or larger in diameter or if a tree must be removed. The notification process was followed in the
Councilmember Baur stated that power companies in other areas have been sued to prevent the cutting of trees in nice neighborhoods.
Joseph Davis, Business Manager of IBEW Local 352 stated that there is a tight rope in clearing areas and as such, tree clearing is important to reliability and safety. He went onto state that an ice storm will often determine where tree trimming needs to occur.
Commissioner Rios advised that we must work hard to develop the process and balance efficiency with what is done. He went onto state that we are not in an ice storm situation right now and so there is time to look at the issue. Commissioner Rios noted that the BWL might want to consider working with a local firm as opposed to an out of state contractor.
Board Chair Smith commended everyone for the dialogue on this issue.
Council President Leeman asked if tree trimming is conducted all year round?
Bill Cook, Sr. Vice President of Operations responded by stating yes and also advised that more tree trimming work can be done during the winter months.
5. Lead Water Services Replacement Program. Board Chair Smith reported that as of September 30, 2006 of the 12,919 services needing replacement, 3,315 have been completed. She went onto state that the BWL is currently ahead of schedule and 26% of the replacement work is complete.
Councilmember Jeffries inquired into the compaction aspect of the roadway.
Mr. Cook advised that street repair is 11.5% of the total cost and by fiscal year end the BWL will have spent $13,000,000 of which compaction is a large part.
Councilmember Woods asked if the BWL restores the right away and if the 2003 policy is being followed?
Mr. Cook stated that the BWL is working with the City Planning Department in regards to restoration issues and also advised that he could look into the policy that Councilmember Woods is referring to.
Councilmember Jeffries asked if the process is to use sod or seed?
Mr. Cook reported that the BWL uses Spartan seed and compacts to standard.
Council President Leeman asked if the BWL completes the replacements when the City replaces a road? He also stated that he notices that sometimes the area sinks after the replacement work has been done.
Mr. Cook stated that the BWL works closely with the City to coordinate that effort. He also noted that there is a practice in place and not a policy. He went onto report that a compaction test is done before the fill. Mr. Cook also advised that the sinking area maybe a temporary patch due to economies of scale and a permanent patch would be completed at a later date.
Council President Leeman asked BWL staff to verify if the work is done within a 30-day timeframe.
Councilmember Woods departed
at 8:31 a.m. due to a prior obligation.
6. Integrated Resource Plan (IRP). Board Chair Smith reported six recommendations from Sargent & Lundy’s findings regarding the Integrated Resource Plan that are as follows:
Mr. Peffley reported that the IRP was an extensive one-year project with a reputable company (Sargent & Lundy) that indicated that BWL maintenance is in the upper quartile. The current capital investment strategy also revealed that Eckert units 1-3 are ok until 2015. The BWL is presently in a good position that allows capitalization of sales and wholesale. Mr. Peffley added that they would also look at adding base load generation and develop a plan for the future.
Mr. Cook noted that the Governor has spoken a great deal about renewables and the IRP indicated that the BWL should start to look at those items, which they are to do.
Commissioner Calkins asked staff to comment on the steam issue.
Mr. Peffley noted that General Motors was 70% of the BWL’s steam load, which represented one of the largest steam contracts in the country. Recommendations regarding the steam system will be forthcoming in the near future.
Commissioner Rios asked staff to speak to the issue of environmental regulations.
Mr. Peffley reported that there are no pending environmental regulations that would shut down BWL units. There are some expenses involved and testing is currently underway.
Board Chair Smith advised Council that BWL staff is regularly updating the Commissioners to make them aware of any potential changes that may affect the way they conduct business.
Jerry Ambrose, Mayor Chief of Staff stated that he appreciated the 30% steam rate increase as oppose to 65%. He went onto ask what type of feedback is the BWL receiving from customers?
Mr. Peffley reported that they are scheduled to bring forth a plan within 30-days relative to steam recommendations. He went onto state that they did not want to make a request for another 30% rate increase.
Mr. Cook further advised that the BWL is still in the evaluating process of cutting cost and finding other uses for steam.
Commissioner James asked staff to look at alternative uses
for steam such as ethanol. She went onto
state that Michigan State University (MSU) is in the process of developing a
potential plan to develop the product in the
Council President Leeman asked about the status of taking responsibility for MSU’s utilities?
Mr. Cook responded by stating that periodically MSU contacts
the BWL regarding the possibility of obtaining water service. However, MSU recently refurbished their
entire steam and electric systems and thus received grants from the State of
Councilmember Jeffries asked if there is an option to consider the crossover (or subsidization) of utilities?
Mr. Peffley indicated that that issue would be addressed in the proposal.
Mr. Ambrose asked if chilled water has been reviewed?
Mr. Peffley responded by stating that chilled water is primarily an issue of too much load relative to demand. If steam costs are decreased then it may help but there is nominal room for improvement.
Councilmember Jeffries noted that the BWL must be sensitive to whether or not residents are subsidizing the downtown area and the suburbs.
Board Chair Smith advised that although the plan would be all encompassing she believes that in theory no cross subsidization was adopted to avoid subsidiary issues.
Commissioner Rios departed at
8:53 a.m. due to a prior obligation.
7. Overview of BWL Finances. Sue Flores, Manager of Finance and Planning reviewed the financial report for the fiscal period of July 1, 2006 thru September 30, 2006. During the review Ms. Flores reported that net income is $10,255,000, wholesales sales are up, and the operating and maintenance budget is lower than the original projected expenses. It was also advised that the BWL is selling its excess sulfur dioxide (SO2) environmental credits to other utilities.
Staff explained to Council that there are economies of scale that allow the BWL to rely on the cap and trade mechanism as a means to help maintain the existing units. It was also reported that nationwide each state has a pollution limit that it can reach. In addition to selling excess SO2 credits, the BWL currently purchases nitrogen oxide (NOx) credits.
Councilmember Dunbar expressed concern over the fact that
excess pollutant credits are sold as opposed to rewarding organizations by
another means besides excess credit sales.
She went onto ask staff where are the credits being sold and is it
affecting
Mr. Peffley responded by stating that that the credits are
sold out of state. He also advised
Council that the sale of pollution credits is a federally mandated program
managed by the Department of Environmental Quality. Mr. Peffley went onto explain that
Ms. Flores continued the finance report and advised that due to a change in administrative procedures the BWL is projected to save $500,000 on health insurance. However, she explained that the BWL would not receive a check for the savings amount, as this is a reduction in the BWL’s increase against budgeted items.
Board Chair Smith recommended a full financial review take place with City Council at a Committee of the Whole meeting so that they may have talking points relative to the budget.
Commissioner Cochran asked if it is correct to state that this is the best wholesale season ever?
Mr. Cook replied by stating that the wholesale market has been good essentially for the reasons pointed out the IRP. There are few coal plants being built at this time and so those in need of generation are purchasing power on the wholesale market.
The Commissioners advised Council that 30% of the revenue was from wholesale sales due to the availability of excess capacity. Currently, plants are not being built due to the associated costs and environmental regulations.
Councilmember Dunbar asked if it time to start looking at wind generation or clean generation, which can also become a tourist attraction or a source of education?
Mr. Davis explained the reliability issues related to wind generation.
8. Commissioner Seat Vacancy. Council President Leeman reported that Mayor Bernero is reviewing candidate names and will submit them for approval.
Commissioner Calkins reiterated the need to obtain timely City Council approval for the amended Rules of Procedure once they are presented to the City Attorney’s office and then forwarded to City Council. It was further indicated that prior submitted guidelines had not yet received approval. However, since the Board is in the process of reviewing the existing guidelines then new amended rules may be forthcoming.
9. Other
a. Ethanol Plants. Commissioner Cochran reported that four
ethanol plants are being built in the state of
Commissioner Cochran reported that four ethanol plants are
under construction in our region, 42 plants nationwide. These plants are going
to put upward price pressure on corn supplies, and will also put downward price
pressure on the by-products of the process. Research is ongoing to
economically use cellulose (ic) as a raw stock for
conversion to ethanol. Then, leftovers from farming, forestry, and other
agricultural by-products can be used for ethanol production. This research
holds promise, but is not yet in hand.
Commissioner Smith stated that they are in the process of looking at this topic with MSU and the BWL wants to be at the table when the discussions begin.
Councilmember Bauer stated that Council and the Commissioners should continue communications because their quarterly meetings and partnership relationships are very important. She went onto note her appreciation for Calvin Jones and operational access to Mr. Peffley.
b. Grosbeck 3 Easement. Council President Leeman
asked about the status of the Pat Linderman Grosbeck 3 easement as it is moving along and he would like
to see the BWL sign off on the project.
He also inquired into the line pit on
Staff responded by stating that BWL General Counsel is
working on the project. In response to
c. I-496 Steam Leaks. Council President Leeman asked if there would be any I-496 steam leaks this season.
Staff explained that it depends on how much steam GM takes because it is difficult to regulate steam traps. However, they do have it under better control than last year and once the plant is closed then they will shut down the line. Staff reported that they are hesitant to invest additional capital in a line that will soon be closed.
d.
The meeting adjourned at 9:33 a.m.
Motion by Commissioner Cochran, seconded by Commissioner Graves, to receive the Joint City Council/BWL Commissioner Report as presented.
Action: Carried unanimously
Resolution
2006-11-2
COMMITTEE OF THE WHOLE
November 14, 2006
The Committee of the Whole of the Board of Water and Light met at the Executive Offices, Lansing beginning at 4:00 p.m. on Tuesday, November 14, 2006.
Commissioner Rios called the meeting to order and asked the secretary to call the roll. The following members were present: Commissioners Gary Calkins, Robert Cochran, Joseph Graves, Semone James, Santiago Rios, Julee Rodocker and Robin Smith (arrived at 4:25 p.m.).
Absent: None. (Note: 4th Ward Vacancy)
There were no public comments.
Amy Cavanaugh, General Counsel presented the Board with a resolution in which new BWL designated representatives would be appointed for the purpose of reporting to the Environmental Protection Agency under the Clean Air Act. The Clean Air Act requires that the resolution be presented to the owners of the affected source to designate the respective representatives.
Motion by Commissioner Calkins, seconded by Commissioner Graves to accept staff’s recommendation to appoint Mary Dwyer and Robert Van Ells as the new designated and alternate designated representatives for the Acid Rain Program.
Carried unanimously.
Ms. Cavanaugh reviewed the suggested changes to the Rules of Procedures proposed by the Ad Hoc Committee from a previous meeting held on October 17, 2006. The discussion involved issues related to the number of members needed for a committee, public hearing information, and electronic equipment disbursement.
In addition to the discussion, Commissioner Cochran advised that a cell phone policy relative to BWL employee usage is in the process of being developed but is not yet complete. Ms. Cavanaugh stated that she is unaware of the policy. However, Dick Peffley, Interim General Manager explained that they are in the process of completing a policy that addresses standby employees that would eliminate the use of pagers, reduce standby time and overall cost. He went onto explain that the Board as a whole is covered under the BWL’s existing cellular contract.
Motion by Commissioner James, seconded by Commissioner Graves to move the proposed changes to the Rules of Procedure to the Board for a full vote.
Discussion: The discussion primarily centered around the proposed changes to the number of votes needed for extraordinary measures, committee chair appointments, and retaining consultants without prior Board approval. The Commissioners explained that continuing the 5-vote measures on items of extraordinary circumstances is idealistic as it maintains a certain level of difficulty in passing or failing certain measures. However, others expressed concern in that Board vacancies can cause an impasse in addressing various matters. Therefore, it was suggested that the Rules of Procedures be changed to reflect voting measures for the majority of the sitting Board members as opposed to a majority of the Board seats.
In an effort to reduce exclusionary practices and allow for a more democratic process the proposed guidelines suggested changing the method in which committee chair appointments are conducted. During discussion, concern was expressed regarding the perceived convoluted process for which committee chair appointments would take place if the proposed language changes were adopted.
Commissioner Smith introduced a friendly amendment to the motion in which the proposed changes to the nominating process (committee chair appointments) would be removed from the amended Rules of Procedure.
Commissioner James accepted the motion as amended and further advised that the Ad Hoc Committee would decide whether or not to revisit the issue of committee chair appointments and bring forth a new recommendation if deemed necessary.
Carried unanimously.
PURPA Requirements
(Smart Metering)
Motion by Commissioner Calkins, seconded by Commissioner Cochran to move the PURPA requirements (Smart Metering) recommendation to the full Board.
Carried unanimously.
Jack Hill, Director of Safety provided an update to the Board regarding BWL’s safety record. He advised that the Safety Council suggested the BWL avoid trying to initiate too many projects at once. There are nine major categories and a 30-month program to implement the initiatives. Input and participation is obtained from the Joint Safety Council (JSC) that includes executive staff and the Process Advisory Committee (PAC), which is made up of equal levels of bargaining and non-bargaining employees on different levels. Mr. Hill went on to report that they found that the BWL has practices in place but they cannot validate them. He also advised that the year-to-date safety incident rate through October 2006 is 6.3, the target record (an average of Consumers Energy and Detroit Edison) is 4.9, and the year end total for 2005 was 9.5. Mr. Hill went onto explain that employees with three infractions come before a management review board to discuss and review the occurrence with the employee.
Commissioner Rios asked if the BWL has a process in which to audit whether or not the BWL has the equipment in place to make sure that we are being safe?
Staff indicated that Delivery has a list sheet for their trucks that show whether or not the needed safety equipment is in place.
Commissioner Smith asked if the BWL is considering the implementation of a reward system based on finding the safety errors in the “What’s Wrong With This Picture” pictorial in the Pipeline?
Mr. Hill responded by stating yes and advised that they are looking at changing the process so that employees will be required to tie the errors back to the safety book policy number to encourage familiarity with the guidelines.
Commissioner Rodocker asked if there is a policy in place wherein if a person has regular injuries then they could be terminated due to liability?
Mr. Peffley explained that they do not have a policy in place. However, it is reviewed on a case-by-case basis.
Commissioner Rodocker also asked if there are chronic persons within the organization?
Mr. Peffley advised that there are a few persons with chronic safety issues and they are currently working with those individuals.
Bill Cook, Senior Vice President of Operations reviewed the presentation on BWL’s growth and expansion efforts. The presentation included information on strategies, standardized evaluations, community economic development participation, governmental collaboration, 425 agreements, marketing process, rules and regulations, new steam and electric customers, growth areas, steam market incentives, customer service, energy education and products and services. During the presentation several questions were raised relative to expanding the BWL’s relationship with Michigan State University (MSU), steam development projects, and branding. As such the following questions were asked and answered:
Commissioner Smith asked if the BWL fostered a better relationship with MSU then would those actions enhance the possibility of MSU taking water service from the BWL?
Mr. Cook responded by stating no and explained that the cost of taking water service is a strong deterrent to MSU.
Commissioner Graves asked if the BWL is placing new downtown development projects on steam?
Mr. Cook explained not the newer projects as it depends on whether or not it is economical for the customer. He also advised that several customers are backing away from steam due to the potential rate increases.
A question was raised in regards to offering broadband services at which staff reported that it typically works best in areas that are not saturated with existing services.
Commissioner Rios stated that the presentation was good. However, they need to look at steam because they are not in a position to eliminate the service and yet need to make it work. He also indicated that the BWL needs to improve its marketing efforts so that everyone knows that the BWL is not just a utility company.
After further discussion, the Commissioners expressed a strong desire for the BWL to improve its branding position of products and services.
Commissioner Graves also stated that the question of whether or not steam will exist or cease is still present as steam is not an open or shut case.
Commissioner Rios further expounded by stating that he did not intend to imply that steam is an open or shut case, only that the BWL is not in a position to walk away from the service.
Charles Moore, Interim Internal Auditor reported that he is in the process of obtaining a list of items to prioritize and he has also met with Dick Peffley, Interim General Manager to discuss those matters. It should take approximately 30-days to compile those items and as such he has begun auditing projects in which the external auditor has expressed prior concern.
Commissioner
Smith departed at 7:00 p.m. due to a prior obligation.
Commissioner Calkins stated that he believes the current interim auditor should establish parameters for what the new permanent auditor should review upon their hiring into the BWL. He also inquired into the items that the previous auditor, Glenn Holloway suggested prior to his departure.
Commissioner Graves advised that he is not trying to dismiss the external auditors report. However, he is reliant on Mr. Moore or persons like him due to his lack of expertise in this area.
Commissioner James explained that the scope of work should involve Mr. Moore working with Mr. Peffley and developing the parameters for the new internal auditor. She also stated that she wants to make sure that the unions’ needs are addressed during the process.
Jim Dravenstat-Moceri, IBEW Local 352 Executive explained that he cannot say what the unions needs are specifically. However, they are very interested in what is said relative to the audit.
Mr. Moore stated that they did not start the process until after he had spoken to Mr. Peffley. However, they need to make sure that the items that keep appearing on Plante & Moran’s auditor reports are corrected.
Commissioner Calkins stated that he would downplay the audit and create structure.
Commissioner James commented that she wanted to ensure that the Board has the deliverables at the end of the project and she would also like input from the other Commissioners.
Mr. Moore stated that the number one priority is to get that process in place as there is a minimum number of audits that you should receive everyone year such as, construction and investments. He also stated that they are not just doing audits to occupy their time but to complete that task while reviewing the process.
Commissioner Rios advised that the following items should be prioritized:
Mr. Moore indicated that he would add an analysis of the financial projections to his existing projects.
Commissioner James stated that she would convene with the Finance Committee and Mr. Moore to discuss and submit a plan to the Board for approval.
Mr. Peffley stated that the revised six-year forecast is not a recommendation because there are policy ramifications. It is an indication that they can live within the confines of the budget and it does not place a burden on the ratepayers. He also stated that they have the capability to plug in utility rates and a rate of return to determine viable numbers. Mr. Peffley also advised that the revised forecast demonstrates that the BWL can live within its means with modest rate changes.
Commissioner Graves suggested that instead of reviewing the forecast, he recommends that Mr. Moore review the data and provides input as to what has been presented. Once the review has been submitted then they will reschedule another meeting to discuss the forecast in detail.
Commissioner Rios agreed with the suggestion and advised that they also need to identify policy issues to fully discuss at a later date.
Commissioner Calkins responded by stating that they need to develop a philosophy on steam.
Commissioner Rios replied that a philosophy is a policy issue and that they also need to determine their rate differential between the BWL and other utilities.
There being no further business the meeting adjourned at 7:20 p.m.
Respectfully submitted
Committee of the Whole
Motion by Commissioner Cochran, seconded by Commissioner Graves, to receive the Committee of the Whole Report as presented.
Action: Carried unanimously.
Resolution
2006-11-3
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2006 Integrated Resource Plan, Policy Assumptions and Action Plan |
WHEREAS, the Energy Policy Act of 1992 requires utilities with annual sales exceeding 500 GWh to consider integrated resource planning; and
WHEREAS, the Board of Water and Light adopted policy 19-07, which states that the Board of Water and Light will employ Integrated Resource Planning as defined in the Energy Policy Act of 1992; and
WHEREAS, the Board of Water and Light has recently completed an Integrated Resource Plan for the period 2006 through 2030; and
WHEREAS, the Board of Water and Light commissioners at their October 10, 2006 Committee of the Whole meeting considered the recommendations of the Integrated Resource Plan, policy assumptions and action plan.
RESOLVED, that the attached policy assumptions, recommendations and action plan be adopted.
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Motion by Commissioner Calkins, seconded by Commissioner Cochran, to adopt Resolution 2006-11-3 regarding the 2006 Integrated Resource Plan, Policy Assumptions and Action Plan.
Action: Carried unanimously.
Resolution
2006-11-4
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Smart Metering and
Interconnection Standards as Required by the Energy Policy Act of 2005 |
RESOLVED, that the Lansing Board of Water and Light previously commenced consideration of the Smart Metering and Interconnection standards referenced in the Energy Policy Act of 2005; and
FURTHER RESOLVED, that the Lansing Board of Water and Light shall hold a public hearing to accept public comment on the Smart Metering and Interconnection standards, to be scheduled in March 2007.
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Motion by Commissioner Graves, seconded by Commissioner Rodocker, to adopt Resolution 2006-11-4 for the Smart Metering and Interconnection Standards as required by the Energy Policy Act of 2005.
Action: Carried unanimously.
Resolution
2006-11-5
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Designated Representative and Alternative Designated Representative
to Comply with Clean Air Act |
RESOLVED, that Mary Dwyer and Robert Van Ells are respectively named the BWL’s designated representative and alternate designated representative for the purpose of reporting to the Environmental Protection Agency (EPA) under the Clean Air Act; and
RESOLVED FURTHER, that the designated representative and the alternate designated representative are authorized to bind the BWL by their respective actions, inactions, and submissions with respect to the Clean Air Act.
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Motion by Commissioner Rodocker, seconded by Commissioner Graves, to adopt Resolution 2006-11-5 regarding the Designated Representative and Alternative Designated Representative to Comply with the Clean Air Act.
Action: Carried unanimously.
Internal Auditor Search Update. Commissioner Smith reported that this was the time set aside for Charles Blockett (of Charles Blockett, Jr. and Associates) to come before the Board and present the credentials for the candidates that applied for the Internal Auditor position. All of the Commissioners received packets that included detailed data received as a result of the recruitment strategy. Commissioner Smith went onto state that it was her understanding that one of their primary objectives was to reduce the candidate pool to five finalists. However, the Board was not prepared to do and instead asked Mr. Blockett to provide an update and an explain the next phase of the process. Commissioner Smith charged each Commissioner with selecting their top 5 candidates and submitting their names to Secretary Jones and Mr. Blockett by Friday, December 1st so that they may have further discussion at the next meeting. The next meeting is tentatively scheduled for the Committee of the Whole on Monday, December 18, 2006.
Commissioners Calkins and Cochran support the ideal of reducing the finalist count from 5 to 3 provided that the Board would have discussion regarding the remaining candidates prior to reducing the number of finalists. The Commissioners agreed to have further conversation on this topic at their next meeting. Mr. Blockett advised that it would require additional modification to the plan but that reducing the finalists to three is the Board’s decision. He went onto note that in his experience he has found that five is typically a good pool of candidates. Commissioner Smith also concurred and reported that interviewing five candidates will give them a good basis of comparison, especially due to the key position this individual will hold.
Mr. Blockett reported that he initially received 41 applicants of which he narrowed the candidate pool to the top 10 based on the criteria laid out by the Commissioners. Some of the criteria included: 1) CPA, CIA or CFE certification, 2) advanced degree and 3) utility experience. Thereafter, he narrowed the list to 21 individuals, 18 of which he conducted in depth telephone interviews. Based on the Board’s charge to Mr. Blockett, he reduced the candidate pool to ten and sent the Board a packet of materials on November 21, 2006 that included said information. Mr. Blockett stated that it is his understanding that during the December 18th meeting they will reach consensus on the top 5 candidates and establish interview dates. Once the candidate pool is reduced to five then he will conduct an extensive background, reference and criminal record check on each individual. Mr. Blockett noted that the delay in selecting the finalists would extend the timeline by approximately 2-weeks. After the candidates are selected, he would then notify them of the pending interviews, remaining process, and also ask for a written report so that the Commissioners may view their work from different dimensions. Mr. Blockett further explained that an Advisory Committee consisting of 10 individuals (typically senior management) would receive training and develop interview questions so that they may conduct an hour interview with each finalist. After which, a memo would be written advising of their first and second choices and the rationale behind their decision. The information from the Advisory Committee would provide additional input and observations for the Commissioners consideration in choosing the Auditor. Mr. Blockett noted that this is a 2-day process of which interviews are conducted on the first day and an optional public forum could take place on the second day. The public forum would consist of allowing each candidate five minutes to talk about his or her selves and the remaining time would consist of a meet and greet.
In an effort to shorten the process, the Commissioners agreed to eliminate the public forum and reduce the interviewing time to 1 – 1 ½ days. Thereby, allowing the Advisory Committee to interview the candidates with subsequent interviews by the Commissioners.
Commissioner Graves expressed concern regarding the value of the information that would be received by an Advisory Committee due to the healthy tension between this position and staff. Mr. Blockett strongly recommended obtaining as much input as possible and he also advised that the interview questions asked by the committee would be completely different than that of the Commissioners. It was suggested that receiving viewpoints from persons with varying backgrounds in the organization maybe helpful. The Commissioners agreed to move further discussion on this topic to the December 18th meeting.
Action items for December 18th (tentative) meeting date:
None.
Resolution
2006-11-6
BOARD OF WATER AND LIGHT
RESOLUTION HONORING RONALD C. CALLEN
WHEREAS, it is a pleasure to extend this expression of our thanks and best wishes to Ronald C. Callen for his service as a Commissioner of the Board of Water and Light; and
WHEREAS, Ronald C. Callen
was appointed to the Board of Commissioners on April 20, 1998 as a Fourth Ward
Commissioner. This Board wishes to
acknowledge his many contributions to the Board of Water and Light, the City of
WHEREAS, Ron served as Vice-Chair, Chair Pro Tem and three times as Chair of the Board of Commissioners, a member of the Executive Committee since 2000, the Nominating Committee 1998-99, Finance Committee 1999-2000 and 2003-04, and the Human Resources Committee 1998-99, 2000-01 (Chair), 2001-03; and
WHEREAS, Ron Callen’s commitment to excellence in public service has provided the Board of Water and Light with outstanding leadership. His expertise includes integrated resource planning, especially in areas concerning the environment, nuclear power use, high-level nuclear waste disposal and plant decommissioning; and
WHEREAS, Ron Callen’s 25 years of experience in utility regulation and
public involvement has assisted him as a Commissioner to enhance the quality of
the Lansing Board of Water and Light operations and protect the interests of
citizens, business, and industry in Lansing.
RESOLVED, That the members of the Board of Water and Light
Commissioners hereby honor and commend Ronald C. Callen
upon leaving this Board with over eight years of distinguished service. In Regular Session this 28th day
of November 2006, we sincerely wish Ron continued success in all his endeavors.
Moved by Commissioner Smith, seconded by Commissioner James, to approve the resolution.
Action: Carried unanimously
In accordance with the Board’s Rules of Administrative Procedure, a schedule of dates, places and times for each regular meeting of the Board for the calendar year shall be adopted by the Board in November.
RESOLVED, That regular meetings of the Board of Commissioners are hereby set for calendar year 2007 as follows, unless otherwise notified or as a result of date conflicts with rescheduled City Council meetings:
2007
|
Tuesday |
January 23
|
|
Tuesday |
March 27 |
|
Tuesday |
May 22 |
|
Tuesday |
July 24 |
|
Tuesday |
September 25 |
|
Tuesday |
November 27 |
Meetings will be held in the
Board Room located in the Board of Water and
RESOLVED FURTHER, That a notice of the meeting schedule be published in the Lansing State Journal the week of January 7, 2007.
Motion by Commissioner Graves, seconded by Commissioner Rodocker, to approve the resolution.
Action: Carried unanimously.
Resolution 2006-11-8
Resolution by the Board of Commissioners
# 2006-11-8
Amend the Rules of Procedure of the Board of Water and
Light
RESOLVED, that the Board of Commissioners hereby approves the Rules of Procedure, as amended, with an effective date of January 1, 2007, subject to City Council concurrence.
RESOLVED FURTHER, that the Rules of Procedure be submitted to the City Attorney for approval as to form. The City Charter specifies that the Rules shall then be submitted to the City Clerk for transmission to the City Council for concurrence.
Motion by Commissioner Calkins, seconded by Commissioner Cochran, to adopt Resolution 2006-11-8 regarding the amendment of the Rules of Procedure of the Board of Water and Light.
Action: Carried unanimously.
Discussion: The Commissioners charged Amy Cavanaugh, General Counsel with the responsibility of ensuring that a copy of the amended Rules of Procedure are simultaneously given to the City Attorney and City Council. The Commissioners also agreed to contact their respective City Council counterpart to encourage the expeditious approval of said changes.
Ms. Cavanaugh responded by stating that the document is traditionally sent to the City Attorney for approval as to form on then onto the City Clerk. However, there is nothing prohibiting their suggestion based on the City Charter.
Board of Water and Light
of the City of
RULES OF
PROCEDURE
AS AMENDED 11/28/06
I. MEETINGS
1.1 Regular Meetings
1.1.1 The
Board of Water and Light (BWL) Commissioners shall hold regular bi-monthly
meetings on the fourth Tuesday of the month in the Board Room,
1.1.2 A schedule of dates,
places and times for each regular bi-monthly meeting to be held in the calendar
year shall be adopted by the Board during November of each year.
1.2 Special Meetings
1.2.1 Special meetings of the
Board may be called by the General Manager or Corporate Secretary on the
request of the Chair of the Board or on the request of any two members.
1.2.2 Members of the Board
shall have at least 18 hours written notice of a special meeting designating
the time and purpose of such meeting.
The notice shall be delivered personally to each member of the Board or left at his or her usual place
of residence or business by the Corporate Secretary or someone designated by
the Corporate Secretary.
1.3 Rescheduled Meetings
1.3.1
The
Chair may reschedule any regular or special meeting.