Approved by the Board:  January 29, 2008

 

MINUTES OF THE BOARD OF COMMISSIONERS SPECIAL MEETING

LANSING BOARD OF WATER AND LIGHT

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Tuesday, December 4, 2007

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The Board of Commissioners met in the Executive Offices of 1232 Haco Drive, Second Floor in Lansing, Michigan.

Present:            Commissioners Robert Cochran, Tony DeLuca, Joseph Graves, Semone James, Peter Kramer, Frank Lain, Julee Rodocker and Sandra Zerkle.

Absent: None

The Secretary declared a quorum present.

Chairperson James asked all to rise for the Pledge of Allegiance to the Flag.

Chairperson James called the meeting to order at 5:15 p.m.

PUBLIC COMMENT

THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT AND ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO IMMEDIATELY PRIOR TO ADJOURNMENT.

There were no public comments.

COMMUNICATIONS

None.

UNFINISHED BUSINESS

 

Resolution 2007-12-1

a.

Reset Public Hearing for 2008 Rate Increases

WHEREAS, the Corporate Financial Targets for each of the Lansing Board of Water and Light’s strategic business units is 4% return on net fixed assets; and

WHEREAS, the fiscal Year 2008 budget filed with the City of Lansing included the following proposed rate increases:  Electric Utility Customers 4%, Water Utility Customers 6% and Steam Utility Customers 6%, to become effective January 1, 2008; and

WHEREAS, the proposed Fiscal Year 2008 budget with the proposed rate increases as filed would result in a combined net loss for the year of $5.6 million; and

WHEREAS, based on the information presented at the November 6, 2007, Finance Committee meeting, an additional 3% rate increase for the electric utility customers, and an additional 1% rate increase for the water utility customers is necessary in order to begin addressing future infrastructure concerns, in particular with respect to generation plant replacement and lead service replacement and environmental requirements; and

WHEREAS, the proposed rate increases for the Fiscal Year 2008 budget would take effect no earlier than March 1, 2008.

RESOLVED, the proposed rate increase of 7% for electric, 7% for water and 6% for steam will be subject to further consideration after a public hearing is held.

FURTHER RESOLVED, that the Board of Commissioners hereby sets the date of Tuesday, January 22, 2008 at 5:30 p.m. for a public hearing to solicit public input on the proposed 7% electric, 7% water and 6% steam rate adjustments.  The hearing will be held in the Board of Water and Light offices, 1232 Haco Drive, Lansing.  The Corporate Secretary is directed to file with the City Clerk no later than December 7, 2007, information regarding proposed rate increases with an effective date of March 1, 2008.

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Staff Comment:  The original hearing date approved by the Board of Commissioners on November 27 falls on the Martin Luther King, Jr. holiday.  Staff is recommending the hearing date be changed to the following day, Tuesday, January 22, 2008 at 5:30 p.m.  If approved, the Board Meeting scheduled for that same time period will be set for January 29, 2008, at 5:30 p.m.

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Motion by Commissioner Kramer, seconded by Commissioner Graves to adopt both resolutions to Reset the Public Hearing Date and Revise the Board Meeting Schedule.

Action:  Carried unanimously.

NEW BUSINESS

 a.  Officer Election

The Board of Commissioners took opportunity to elect a person to the position of Vice Chair for the remainder of fiscal year 2008, as the position was currently vacant.  It was also noted that due to the absence of a current Past Chair, the Board should elect a Commissioner to assume the duties of the Past Chair in the absence of the Chair and Vice Chair.  As such, Commissioners Joseph Graves and Julee Rodocker expressed interest in the Vice Chair position.  Commissioner Robert Cochran also expressed interest in fulfilling the duties of Past Chair. 

On motion by Commissioner Kramer, seconded by Commissioner Zerkle, the Board of Commissioners voted to accept the nominations for Commissioner Joseph Graves and Julee Rodocker as Vice Chair.

Action:  Carried unanimously.

Both Commissioner Graves and Rodocker were asked to state their interest in the position and their qualifications thereof.  Following statements from each respective candidate, the Board of Commissioners took the following action:

On motion by Commissioner Cochran, seconded by Commissioner Kramer, the Board of Commissioners elected to conduct a ballot vote for the Vice Chair election.

Action:  Carried unanimously.

Secretary Jones distributed eight ballots, one to each Commissioner, and received eight ballots in return.  Upon conclusion of the ballot count, it was announced that by majority vote the Board of Commissioners elected Julee Rodocker to the position of Vice Chair for the remainder of fiscal year 2008.

Commissioner Cochran withdrew his interest in assuming the duties of Past Chair and deferred to Commissioner Graves.

On motion by Commissioner Kramer, seconded by Commissioner Cochran, the Board of Commissioners voted to nominate Commissioner Joseph Graves to assume the duties of Past Chair in the absence of the Chair and Vice Chair.

Action:  Carried unanimously.

RESOLUTIONS

a.  Reschedule January Board Meeting

                                                            Resolution 2007-12-2

REVISED BOARD MEETING SCHEDULE

In accordance with the Board’s Rules of Administrative Procedure, a schedule of dates, places, and times for each regular meeting of the Board of Commissioners for the calendar year shall be adopted in November.

RESOLVED, That regular meetings of the Board of Commissioners are hereby set for calendar year 2008 as follows, unless otherwise notified or as a result of date conflicts with rescheduled City Council meetings:

2008

                                                Tuesday                January 29

                                                Tuesday                March 25

                                                Tuesday                May 27

                                                Tuesday                July 22

                                                Tuesday                September 23

                                                Tuesday                November 25

Meetings will be held in the Board Room located in the Board of Water and Light Customer Service Center, 1232 Haco Drive, Lansing, at 5:30 p.m.

RESOLVED FURTHER, That a notice of the meeting schedule be published in the Lansing State Journal the week of January 6, 2008.

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Comments:  The Board of Commissioners will hold a public hearing for 2008 rate increases on January 22, 2008.  Therefore, the regular Board meeting previously scheduled for Tuesday, January 22, 2008 will be rescheduled for Tuesday, January 29, 2008 at 5:30 p.m.  This resolution presented at the Special Board meeting on December 4, 2007 hereby supercedes the Board Meeting Schedule resolution previously adopted at the November 27, 2007 Board meeting.

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Motion by Commissioner Kramer, seconded by Commissioner Graves to adopt both resolutions to Reset the Public Hearing Date and Revise the Board Meeting Schedule.

Action:  Carried unanimously.

MANAGER’S REMARKS

None.

COMMISSIONERS’ REMARKS

None.

EXCUSED ABSENCES

None.

PUBLIC COMMENTS

There were no public comments.

ADJOURNMENT

On motion by Commissioner Cochran, seconded by Commissioner Graves, the meeting adjourned at 5:48 p.m.

 

/s/ Rhonda Jones, Corporate Secretary

Filed with Lansing City Clerk

December 11, 2007