Approved by the Board: September 23, 2008
MINUTES OF THE BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
_________________________
Tuesday, July 22, 2008
___________________________
The Board of Commissioners met in the Boardroom of the Administrative Offices, 1232 Haco Drive, Lansing, Michigan.
|
Present: |
Commissioners Robert Cochran, Tony DeLuca, Semone James, Peter Kramer, Frank Lain, Julee Rodocker, Tracy Thomas and Sandra Zerkle.
|
|
Absent: |
None.
|
The Secretary declared a quorum present.
Chairperson James called the meeting to order at 5:30 p.m.
APPROVAL OF MINUTES
Motion by Commissioner Cochran, seconded by Commissioner Rodocker, to approve the minutes of the regular meeting held May 27, 2008 and the special board meeting held July 21, 2008.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO IMMEDIATELY PRIOR TO ADJOURNMENT.
Steve Rall, 1608 E. Shiawassee, Lansing spoke in opposition to building a new coal plant. Mr. Rall also presented a series of questions to the Board of Commissioners and provided a copy of said inquires following the meeting.
Connie Doetcher, 2173 Bellinger Court, Okemos spoke in opposition to building a new coal plant. Ms. Doetcher also expressed concerns regarding carbon dioxide emissions and the need to look at other alternatives such as, wind and solar.
Dawn Fleming, 1612 W. Shiawassee, Lansing spoke in opposition to building a new coal plant. She also advised that the Board of Water and Light (BWL) is a publicly owned utility and asked that additional public input be gathered and that the BWL utilize renewable resources and energy efficiency as a means to resolve its issues.
Rev. Richard Preston, 628 Lincoln Avenue, Lansing spoke in opposition to building a new coal plant. Rev. Preston expressed concerns regarding the lack of leadership, public input, and moral sensitivities regarding the matter.
Eric Crosley, 228 S. Foster Avenue, Lansing thanked the BWL for replacing his house service as a result of recent storms. He also spoke in opposition to building a new coal plant and asked the board to consider other options.
Carol Rall, 1608 W. Shiawassee, Lansing spoke in opposition to building a new coal plant. Ms. Rall noted the high cost and advised that alternative energies can be utilized with proper consultation.
COMMUNICATIONS
Email of May 29, 2008 from Lacey Cunningham, Lansing, Michigan regarding possible rate increases.
Received and placed on file.
Email of May 29, 2008 from Richard L. Foster, Lansing, Michigan regarding new power plant.
Received and placed on file.
Letter of July 7, 2008 from Susan Pifer regarding her resignation as Director of Internal Audit effective July 18, 2008.
Received and placed on file.
Letter of July 8, 2008 from U.S. Representative Tim Walberg regarding BWL customer without power during recent storms.
Received and referred to management.
Email of July 21, 2008 from John Dowell, Lansing, Michigan opposing the BWL coal-fired power plant.
Received and placed on file.
Email of July 22, 2008 from Trevor Hobbs, Lansing, Michigan opposing the BWL coal-fired power plant.
Received and placed on file.
Email of July 21, 2008 from Julie Roy, Lansing, Michigan opposing the BWL coal-fired power plant.
Received and placed on file.
Email of July 21, 2008 from Charles Liken, Lansing, Michigan opposing the BWL coal-fired power plant.
Received and placed on file.
Email of July 21, 2008 from Charles Dekubber, Mason, Michigan opposing the BWL coal-fired power plant.
Received and placed on file.
Joint Meeting of the
Board of Water and Light Commissioners
and Lansing City Council
June 18, 2008
Board of Commissioners Chair Semone James called the meeting to order at 8:15 a.m. The meeting was held in the Boardroom of the Administrative Offices, 1232 Haco Drive, Lansing, Michigan.
Commissioners Present: Tony DeLuca, Semone James, Peter Kramer, Frank Lain, Julee Rodocker and Sandra Zerkle. Absent: Commissioners Robert Cochran and Joseph Graves.
Councilmember’s Present: Sandy Allen, Eric Hewitt, A’Lynne Robinson (arrived 8:48 a.m.) and Carol Wood. Absent: Councilmember’s Kathy Dunbar, Brian Jeffries, Tim Kaltenbach and Derrick Quinney.
BWL Staff Present: General Manager J. Peter Lark, Chief Financial Officer Susan Devon, Executive Director of Water Operations and Special Projects Dick Peffley, Executive Director of Strategic Planning and Development George Stojic, Executive Director of Electric Operations Doug Wood, Director of Governmental & Public Relations Calvin Jones, Director of Internal Audit Susan Pifer and Corporate Secretary Rhonda Jones.
IBEW Local 352 Representatives Present: Business Manager Ron Byrnes
City Staff Present: None.
Public Comments
There were no public comments.
The purpose of the joint meeting was to present an update to City Council regarding the following topics:
1. Update on Restoration of Power Following Storms of June 6th – 8th. General Manager J. Peter Lark gave a verbal update regarding recent storms that affected the greater Lansing area. The storms damaged approximately 1/3 of the Board of Water and Light’s (BWL) distribution system and caused several outages. Although, the damage was extensive, approximately 90% of the customers were restored within 60 hours and there were no reported injuries to any of the workers. During the outage communication modifications with Customer Service were changed to help improve the dissemination of information. It was also noted that the BWL intends to take steps in the future to improve its communications with City Council regarding such matters.
Councilmember Wood commended staff on the work that was done and also advised that there were some communication issues. It was suggested that BWL send email updates to City Council to help ensure assess to current information. It was further noted that City Council used the storm outages as an opportunity to address internal emergency procedures. In response to a Council question, Mr. Lark noted that there was excellent cooperation between City of Lansing and BWL employees.
Commissioner Lain thanked IBEW 352 Business Manager Ron Byrnes for his customer assistance during the storms aftermath. It was also suggested that the BWL develop stronger agreements between the different entities, i.e. fire, police, and the City to ensure that everyone is aware of their role during a storm situation.
2. Update on CSO Project. Mr. Lark reported that the BWL will participate in a pilot project whereby it will replace up to 1,500 feet of water main in the CSO area. The project scheduled to begin during the 2009 construction season will occur in areas where sewer work is not needed. As such, the BWL will continue to work with the City of Lansing Public Service Department to seek out similar opportunities for the following construction season.
3. Update on Strategic Plan. Mr. Lark gave an update regarding the BWL’s strategic plan, which included information relative to meeting its future generation needs. It was noted that the BWL has growing load and a need to replace the units at Eckert Station by 2018. The BWL is attempting to be the cleanest utility in the country with the use of solar, wind, hydro and biomass. It was also advised that the BWL has sent letters to sixty different groups to begin the public input process regarding the possibility of building a new hybrid plant composed of 30% biomass.
4. Update on Water Bonds. Mr. Lark advised that $40 million in LBWL utility system bonds were competitively sold on April 2, 2008. Four bids were received in total and the bid was awarded to Wachovia Bank.
5. Update on Ottawa Station/Phoenix Project. Mr. Lark noted that the Ottawa Station/Phoenix Project is scheduled to close on September 30, 2008. Preparations to build the new chiller facility at Allegan and Pine Street are currently on schedule. In addition, a groundbreaking ceremony for the new chiller facility will take place in October 2008.
6. Update on Financials. Mr. Lark reported that prior to the weekend storms of June 6, 2008, the BWL forecast $12.9 million in net income for fiscal year ending June 30, 2008. The cost associated with the storm damages including that of replacing the Eckert Station cooling tower will negatively impact projected net income. However, it is estimated that prices in the wholesale market may offset the storm costs and the BWL will still fair better than its original budgeted net loss of ($5.8 million).
7. Update on Senior Citizen Rate Reduction. Mr. Lark advised that the Board of Commissioners approved an amendment to the Electric Residential Senior Citizen Rate No. 21, which resulted in a $2.00 monthly service charge reduction. The rate change takes effect July 1, 2008 resulting in a 9% discount for the average senior customer and a 30% discount over Residential Rate No.1 customers. Rate 21 is available to customers 65 years of age or older who use less than 620 kWhs per month.
8. Update on EPAct of 2005 Public Hearing & Net Metering. Mr. Lark advised that the BWL currently has two net metering customers that include Two Men & A Truck and Horrocks. The BWL does not have an official net metering policy in place but it is not adverse to the idea. Presently, the BWL’s electric rates have not been divided into distribution, transmission and generation costs. However, proper relays for both locations have been installed to prevent back feed onto the system and protect the safety of the workers.
9. Update on First STEP Program. Mr. Lark advised that the program directed towards area high school students will allow for up to 20 part-time internships with the BWL. Following completion of the internship, up to 10 students will be offered full-time employment with the BWL and 10 will be given scholarships to Lansing Community College. In response to a Council question, Director of Governmental & Public Relations Calvin Jones advised that they have not allocated a certain number of positions to Lansing area students. However, the parameters are still being modified and they are focusing on the Lansing area.
Councilmember Hewitt left the meeting at 9:02 a.m.
10. Update on Diversity Council. Mr. Lark advised that the BWL Inclusion and Equity Diversity Council is working with Public Policy Associates, Incorporated to review the BWL’s existing environment and conduct a company-wide survey. The review and survey currently underway will aid the BWL in its efforts to install diversity in all aspects of the organization. Current diversity levels in the managerial areas of the organization consist of the following: executive directors – 25%, directors – 50%, and management – 25%.
11. Update of Lead Line Replacement Program. Mr. Lark noted that the BWL added a third crew to work with the lead line replacement program. The additional crew scheduled to start work July 1, 2008 was provided with the necessary vehicles and equipment to do the replacement work.
In response to a Council question regarding sidewalk repairs, staff noted that they were unaware of any recent issues with the lag time in replacing/repairing the sidewalks after construction. Nevertheless, staff indicated that they would contact Chad Gamble with the Public Service Department to address the issue.
12. Use of Low Energy Lights for Streetlights. Staff confirmed that the low energy streetlights are located in various residential areas. The streetlights, which will be evaluated for future continued use is a program sponsored by the American Public Power Association DEED Grant.
13. Mercury Light Bulb Disposal. Mr. Lark noted that as of October 2007 people could dispose of CFL bulbs at the BWL regardless of whether or not the individual is an existing BWL customer. As such, for safety purposes people are asked to place the bulbs inside a sealable plastic bag for proper disposal. Currently, the BWL receives a small amount of bulbs on a monthly basis.
14. Historic Lighting on Washington in Old Town. Councilmember Wood inquired as to the cost of acquiring historic lighting along Washington Avenue in Old Town. In response, Executive Director Doug Wood noted that it used to cost $40,000 a block, which was added to the City of Lansing’s streetlight bill. As such, Mr. Wood will follow-up with City Council to provide the current cost to install new historic lighting.
15. Streetlights on Martin Luther King (MLK) Jr., Blvd.
Doug Wood advised that there are loading and splicing issues on MLK Jr. Blvd, which have been a source of the streetlight outages. In response to Council’s
question, it was confirmed that contractors installed the streetlights services
in question.
16. Other.
Fire Hydrants. Councilmember Wood noted that the BWL is scheduled to replace 100 fire hydrants due to the CSO Project. As such, it was noted that when City Council passed the fire code ordinance they specifically passed it so that BWL employees would do the type of work in question. Councilmember Wood also advised that she could forward a copy of the City Council meeting minutes that speak to the issue if needed.
Executive Director of Water Operations and Special Projects Dick Peffley advised that the matter was brought to his attention and they have since gathered some information and forwarded it onto the BWL’s Legal Department for review. He is currently awaiting their response and will address the matter at said time.
Power Grid. Councilmember Robinson asked to receive a copy of the BWL’s power grid as a means to help explain the spotty power outages that occurred in her ward during the June 6th – 8th storms.
In response to Councilmember Robinson’s request, staff noted that customer’s can be feed from different circuits, which can result in partial power. It was also noted that at times there was customer confusion regarding responsibility for repairs to the mast. In addition, staff advised that they would send a storm update to employees and customers alike.
There being no further business, the meeting adjourned at 9:22 a.m.
NOMINATING COMMITTEE
June 26, 2008
The Nominating Committee of the Board of Water and Light met at the Executive Offices, Lansing beginning at 1:05 p.m. on Thursday, June 26, 2008.
Nominating Committee Chair Semone James called the meeting to order and asked the secretary to call the roll. The following committee members were present: Commissioners Joseph Graves, Semone James, Peter Kramer and Julee Rodocker. Commissioner Tony DeLuca was also present.
Absent: None.
There were no public comments.
The Nominating Committee met to review Commissioner survey responses for consideration of board officer nominations for fiscal year 2009. Upon reviewing an updated copy of the officer and committee survey results, the Nominating Committee discussed at length each respective officer position. After further discussion, the committee did not recommend a slate of officers for fiscal year 2009. Hence, the Nominating Committee agreed that they had reached an impasse and decided to forward the matter to the full board for further review and discussion on July 22, 2008.
There being no further business, the meeting adjourned at 1:42 p.m.
Respectfully submitted,
Semone M. James, Chair
Nominating Committee
The Committee of the Whole of the Board of Water and Light met at the Executive Offices, Lansing beginning at 5:30 p.m. on Tuesday, July 8, 2008.
Committee of the Whole Chair Julee Rodocker called the meeting to order and asked the secretary to call the roll. The following members were present: Commissioners Robert Cochran, Tony DeLuca, Joseph Graves, Peter Kramer, Frank Lain, Julee Rodocker and Sandra Zerkle.
Absent: Commissioner Semone James
There were no public comments.
Motion by Commissioner DeLuca, seconded by Commissioner Zerkle to approve the minutes of the Committee of the Whole meeting held May 13, 2008.
Action: Carried unanimously.
Fair and Accurate Credit Transactions Act (FACTA)
Mike Collins, Manager of Internal Controls gave a brief overview of the Determination of Identity Theft Prevention Program resolution. As such, it was noted that the proposed resolution would delegate the General Manager the responsibility for the oversight, development, implementation, and administration of said program. The program represents good business practice and is consistent with the Board of Water and Light’s (BWL) policy regarding customer information and confidentiality.
On motion by Commissioner Cochran, seconded Commissioner Graves, the Committee of the Whole agreed to move the proposed resolution for the Determination of Identity Theft Prevention Program to the full board for consideration and approval on July 22, 2008.
Action: Carried unanimously.
George Stojic, Executive Director of Strategic Planning and Development gave an overview of the proposed resolution regarding a public hearing for the Economic Development Rider for Chilled Water. The purpose of the rider is to allow the BWL to offer a complete integrated energy and water service package to customers locating in the downtown Lansing area. The chilled water rate composed of capacity and commodity charges offers both non-cost and cost benefits to those seeking to utilize the service. The new pricing strategy (which is on a life cycle basis) should allow the BWL to increase its customer base by adding capacity without additional fixed charges added to the system. As a result, the pricing strategy will allow the BWL to grow the chilled water business and stabilize its revenues and finances.
Following brief discussion, the Committee of the Whole took the following action:
On motion by Commissioner Lain, seconded by Commissioner Cochran, the Committee of the Whole agreed to move the proposed resolution for a public hearing regarding the Economic Development Rider for Chilled Water to the full board for consideration and approval on July 22, 2008.
Action: Carried unanimously.
Sue Warren, Marketing Manager gave a brief overview of the EPAct of 2005 PURPA Standards. The standard requires that the BWL review five new PURPA standards. The last three currently under review include net metering, fuel sources, and fossil fuel generation efficiency. As such, a public hearing was held May 22, 2008 to receive public input regarding the aforementioned topics. It was determined that the BWL has fulfilled the review of fuel sources and fossil fuel generation efficiency within the confines of its current process. Fuel sources are reviewed during the Renewable Portfolio Standard (RPS) process and in diversifying the BWL’s portfolio. Fossil fuel generation efficiency is also reviewed during the integrated resource process, capital investments, and in considering new plant generation needs. It was recommended that the BWL develop a net metering program in which they would utilize a Michigan Public Service Commission standard as the model for the program. There are some issues specific to the BWL that must be addressed. However, it is believed that customers will benefit from the program and the cost of service study currently in progress will aid with unbundling the BWL’s existing rate structure.
Following brief discussion, the Committee of the Whole took the following action:
On motion by Commissioner Cochran, seconded by Commissioner DeLuca, the Committee of the Whole agreed to move the proposed resolution regarding the Determination of Net Metering and Additional Standards to the full board for consideration and approval on July 22, 2008.
Action: Carried unanimously.
Jackson National Life Development Agreement
J. Peter Lark, General Manager advised that Jackson National Life (JNL) is relocating their data centers worldwide to their Alaiedon Township location. As such, a new agreement was developed to address the additional load. The agreement, which the General Manager is prepared to sign was drafted in the same spirit as the original agreement from 1998. JNL is obtaining their Board of Directors authority to enter into the development agreement and requested that the BWL do likewise. Following brief discussion, the Committee of the Whole took the following action:
On motion by Commissioner Lain, seconded by Commissioner Kramer, the Committee of the Whole agreed to move the proposed resolution regarding the Jackson National Life Development Agreement to the full board for consideration and approval on July 22, 2008.
Action: Carried unanimously.
Moved by Commissioner Lain, seconded by Commissioner Kramer to go into executive session to discuss a privileged document received from Brandie Ekren, General Counsel and protected by the Open Meetings Act exemption MCL 15.268(h). (6:04 p.m.) The roll was called.
Yeas: Commissioners Cochran, DeLuca, Graves, Kramer, Lain, Rodocker and Zerkle.
Nays: None.
Absent: Commissioner Semone James.
Carried unanimously.
Moved by Commissioner Cochran, seconded by Commissioner Lain that the Committee of the Whole meeting return to open session.
Carried unanimously.
The Committee of the Whole meeting reconvened in open session at 6:10 p.m.
On motion by Commissioner Graves, seconded by Commissioner Lain, the Committee of the Whole agreed to move forward with the execution of any and all pertinent documents in resolution of the Section 125 Compliance Matter with the Internal Revenue Service.
Action: Carried unanimously.
Excused Absence. On motion by Commissioner Lain, seconded by Commissioner Kramer to excuse the absence of Commissioner Semone James.
Action: Carried unanimously.
Employee Evaluations. Commissioner Zerkle asked that all of the Commissioners turn in their board appointee evaluations as soon as possible.
There being no further business, the meeting adjourned at 6:13 p.m.
Respectfully submitted,
Julee M. Rodocker, Chair
Committee of the Whole
July 10, 2008
The Executive Committee of the Board of Water and Light met at the Executive Offices, Lansing beginning at 5:30 p.m. on Thursday, July 10, 2008.
Executive Committee Chair Semone James called the meeting to order and asked the secretary to call the roll. The following members were present: Commissioners Robert Cochran, Joseph Graves, Semone James and Julee Rodocker. Commissioners Tony DeLuca and Frank Lain were also present.
Absent: None.
There were no public comments.
On July 8, 2008 the Board of Commissioners received Director of Internal Audit Susan Pifer’s letter of resignation effective July 18, 2008. The committee members thanked Ms. Pifer for her service and wished her well in her future endeavors. Due to the pending departure, the Executive Committee discussed a transition plan for the Internal Audit Department.
Following discussion, Susan Pifer was directed to work with Charles Moore of C.L. Moore & Associates, P.C. to obtain an engagement letter, which expands his current audit contract to include an interim directorship period. It was noted that Mr. Moore was familiar with Board of Water and Light (BWL) activities and has acted in such a capacity on behalf of the Board of Commissioners in the past. Mr. Moore’s current audit contract with the BWL will be expanded to include compensation for his role as the Interim Director of Internal Audit as well as those activities associated with that respective position.
On motion by Commissioner Graves, seconded by Commissioner Cochran it was moved to expand the contract with C.L. Moore & Associates, P.C. to include the interim period that the Board of Commissioners is facing in regards to the vacancy created by Susan Pifer’s departure.
Action: Carried unanimously.
Further Discussion: Commissioner Graves advised that the engagement letter would be added to the next Finance Committee meeting and they would also discuss the role of the internal auditor and its independence. The committee also briefly discussed how they go about permanently filling the internal auditor position or outsourcing the function.
There being no further business the meeting adjourned at 5:50 p.m.
Respectfully submitted
Semone M. James, Chair
Executive Committee
The Finance Committee of the Board of Water and Light met at the Executive Offices, Lansing beginning at 3:00 p.m. on Tuesday, July 15, 2008.
Finance Committee Chair Joseph Graves called the meeting to order and asked the secretary to call the roll. The following members were present: Commissioners Robert Cochran, Joseph Graves, Peter Kramer and Semone James. Alternate committee member Commissioner Frank Lain was also present.
Absent: None
There were no public comments.
Motion by Commissioner Cochran, seconded by Commissioner Lain to approve the minutes of the Finance Committee meeting held May 13, 2008.
Action: Carried unanimously.
Marie Vanerian, First Vice President and Michael Muirhead, Associate Financial Advisor with Merrill Lynch Institutional Consulting Group gave an overview of the Board of Water and Light (BWL) Asset Allocation Studies. Also present were Bill Mackay and Keith Azar with Merrill Lynch. The studies reviewed in detail addressed the following topics: total program management, importance of asset allocation, plan sponsor dilemma, data frequency, objectives of analysis, asset allocation modeling process, scenario development, and the Defined Benefit (DB) and VEBA asset mixes for consideration. It was advised that asset allocation is a critical component of the plan. The target rate of return is 7.5%, of which one will not typically achieve in any given year but should reach over time. The BWL has met its expectations regarding the current plan and do not expect it to go any lower. It is advised that the BWL should be cognizant of what is occurring in the current environment and the building block methodology takes this issue into account. Every asset class added to the mix either contributes or dampens the asset allocation. Hence, each asset class brings something different to the asset allocation mix. Emerging markets contain a certain level of international exposure and private equity lacks transparency and is not subject to Sarbanes-Oxley (SOX). It was further suggested that the BWL entertain a change to the asset allocation mix for the VEBA fund to include private equity while keeping in mind that Public Act 314 restricts the 5% asset class.
Susan Devon, Chief Financial Officer (CFO) noted that staff would review the Defined Benefit and VEBA Trust Investment Policies, make a specific recommendation regarding the asset allocation, and eventually interview asset allocation managers. It was also confirmed that the BWL filled out a Merrill Lynch survey that addressed its desire to seek diversity in their candidate pool.
A complete copy of the Lansing Board of Water and Light Asset Allocation Studies prepared by Merrill Lynch Institutional Consulting Group is on file in the Corporate Secretary’s office.
Engagement Letter from C.L. Moore & Associates, P.C.
The Finance Committee discussed the engagement letter received from Charles Moore of C.L. Moore & Associates, P.C. The engagement letter addresses audit processing services for fiscal year 2008-09 and Mr. Moore’s role as Interim Director of Internal Audit due to the pending departure of Susan Pifer. It was noted that the interim director stipend stipulated in the engagement letter would cease upon permanent replacement of the directorship for the internal audit position. It was also suggested that the audit processing services contract be extended for a period of two years and that the contractual amount be increased from $110,000 (as stipulated in the engagement letter) to $150,000 per fiscal period at a billable rate for an increase in the scope of work.
The committee members also noted the need to have in depth discussion regarding the directorship position and whether to post and fill the pending vacancy as currently structured or outsource the director responsibilities.
On motion by Commissioner Lain, seconded by Commissioner James to approve the engagement letter as presented by Charles Moore with the following modifications: 1) audit processing service fees are limited to $150,000 and 2) the audit processing service contract is extended for an additional two years (or whichever date is in compliance with the existing request for proposal).
Discussion: Susan Pifer, Director of Internal Audit noted that she prefers the hybrid model for the internal audit position. Whereas, an external auditor handles the directorship responsibilities and maintains an in-house associate who would be intricately familiar with the organization, as there maybe difficulties in the job market in obtaining and retaining an internal auditor. Ms. Pifer also referenced information contained in the Institute of Internal Auditors Position Paper on Resourcing Alternatives for the Internal Audit Function. See attached document.
Yeas: Commissioners Cochran, Graves, James and Lain.
Nays: None
Abstain: Commissioner Kramer
Action: Motion carried.
Commissioner Lain departed the meeting at 4:19 p.m. due to a prior obligation.
The Management’s 2008 Report on Internal Control Structure
was presented by the Chief Financial Officer, Susan Devon to the Committee.
The report provided an update on the 2008 activities and future plans for the
Internal Control & Tariff Administration Department that was created in
November 2007. In response to a Commissioner inquiry, Susan Devon advised that
SOX does integrate the COSO internal control framework into its requirements.
However, SOX is focused on publicly traded companies that report to the
Security Exchange Commission (SEC), have shareholders, and executive bonus
plans based can be based on financial performance. As such, Chief
Executive Officers must file and certify quarterly reports with the SEC, which
requires the implementation of a number of costly and time-consuming controls
and monitoring systems. It was noted that the BWL wants strong internal
controls without stating that it is SOX compliant, as some of the steps are
unnecessary for the BWL. Currently, the Board of Commissioners receives
monthly Financial Reports from the General Manager to keep the Board abreast of
current financial matters. It was also advised that the internal auditor could
review the financial statements on behalf of the Board if interested.
Mike Collins, Manager of Internal Controls advised that the Committee of the Sponsoring Organizations of the Treadway Commission (COSO) was formed in 1992 and the SOX Act were passed in 2002. As such, COSO standards were included in SOX, which made best practices a requirement of law. The purpose of the Internal Control and Tariff Administration Department at the BWL is to establish centralized management of the BWL Internal Control Structure under the direction of the CFO. A strong Internal Control Structure will provide reasonable assurance regarding the achievement of objections in: 1) effective and efficient operations, 2) reliability of financial reporting and 3) compliance with applicable laws and regulation. Presently, the Internal Control and Tariff Administration Department is reviewing various processes at the BWL to ensure that proper internal controls structure is in place.
Commissioner Graves advised that the best practices implemented by staff are value added. He also agreed that the internal auditor should review the financial materials to ensure a separate and independent opinion of the matter. The General Manager was also applauded for his efforts in creating the internal controls division, which with the addition of the Director of Internal Audit provides a comfort level essential to moving the organization forward.
Susan Pifer advised that she and the CFO were previously directed to conduct a preliminary evaluation of SOX and the attendant auditing standards effective for fiscal year 2008. As such, Ms. Pifer briefly reviewed the proposed committee discussion information contained in the meeting packet materials and advised that the review had been completed. It was also noted that there was no need for the Finance Committee to take action at this time.
The committee members noted the possibility of future discussions regarding the benefits of having an audit versus finance committee.
Commissioner Graves noted that he would like the internal auditor to independently review the financials and budget assumptions separate and apart from staff. Separate reporting to the governing body regarding various projects, financials, budget assumptions and other items would serve to acknowledge that there is understanding and agreement with the information presented.
Susan Pifer presented the proposed resolution regarding the Internal Audit Charter and noted that it was previously modified and approved by the Board of Commissioners on May 22, 2007.
On motion by Commissioner Kramer, seconded by Commissioner Cochran, the Finance Committee agreed to move the proposed resolution regarding the Internal Audit Charter to the full board for consideration and approval on July 22, 2008.
Action: Carried unanimously.
Auto Audit Demonstration
Auto Audit Software Implementation and Design materials prepared by Susan Pifer were included in the Finance Committee packet materials for informational purposes. Auto Audit Software is currently in place and being utilized by the Internal Audit Department.
Microsoft Project. In response to a Commissioner question, Susan Pifer advised that Charles Moore and Associate Internal Auditor Perez Goree will discuss what reports and/or software each party will maintain.
Director of Internal Audit. The Finance Committee and Peter Lark applauded and thanked Susan Pifer for her hard work and service as the Director of Internal Audit.
There being no further business, the meeting adjourned at 4:53 p.m.
Respectfully submitted,
Joseph E. Graves, Jr., Chair
Finance Committee
HUMAN RESOURCE COMMITTEE
The Human Resource Committee of the Board of Water and Light met at the Executive Offices, Lansing beginning at 11:30 a.m. on Monday, July 21, 2008.
Human Resource Committee Chair Sandra Zerkle called the meeting to order and asked the secretary to call the roll. The following committee members were present: Commissioners Tony DeLuca, Joseph Graves, Frank Lain and Sandra Zerkle. Alternate committee members Semone James and Julee Rodocker were present in addition to Robert Cochran and Peter Kramer.
Absent: None
There were no public comments.
Motion by Commissioner James, seconded by Commissioner Graves to approve the minutes of the Human Resource Committee meeting held May 1, 2008.
Action: Carried unanimously.
FY 2009 Salary Structure, Skill Family Salary Range Adjustments and Merit Increases
Susan Devon, Chief Financial Officer gave a brief overview of the proposed resolution for the fiscal year 2009 salary structure, skill family salary range adjustments and merit increases. Modification to the current salary structure would eliminate the lower tier of the current two-tier base pay caps system. Thereby, allowing a single minimum and maximum pay range for each salary grade. As such, the new salary range maximum would be equivalent to the current pay range control point. Considered best practice under SAP, the Board of Water and Light (BWL) is in the process of implementing a new SAP Human Resources Management and Payroll System. It was also noted that employees would not be adversely affected by the proposed adjustments.
On motion by Commissioner James, seconded by Commissioner Graves, the Human Resource Committee agreed to move the proposed resolution for the Salary Management System for Fiscal Year 2008-2009 to the special board meeting for consideration and approval on July 21, 2008.
Action: Carried unanimously.
FY 2008 Board Appointee Performance Reviews for Corporate Secretary and General Manager
The Human Resource met to conduct the annual performance reviews of the Corporate Secretary and General Manager for fiscal year-end 2008. Rhonda Jones, Corporate Secretary and Board appointee requested a closed session for the purpose of receiving her contractual year-end performance evaluation as permitted by Open Meetings Act exemption MCL 15.268(a). (11:40 a.m.) The roll was called.
Yeas: Commissioners Cochran, DeLuca, Graves, James, Kramer, Lain, Rodocker and Zerkle.
Nays: None.
Absent: None.
Carried unanimously.
Moved by Commissioner Graves, seconded by Commissioner Rodocker that the Human Resource Committee returns to open session.
Carried unanimously.
The Human Resource Committee meeting reconvened in open session at 12:27 p.m.
Upon conclusion of the closed session, the Human Resource Committee took the following action:
On motion by Commissioner Graves, seconded by Commissioner James, the Human Resource Committee recommended that Rhonda Jones’ contract as Corporate Secretary is renewed for a period of one year with a base pay salary increase of 3%.
Action: Carried unanimously.
General Manager Performance Review
J. Peter Lark, General Manager and Board appointee requested a closed session for the purpose of receiving his contractual year-end performance evaluation as permitted by Open Meetings Act exemption MCL 15.268(a). (12:35 p.m.) The roll was called.
Yeas: Commissioners Cochran, DeLuca, Graves, James, Kramer, Lain, Rodocker and Zerkle.
Nays: None.
Absent: None.
Carried unanimously.
Moved by Commissioner Lain, seconded by Commissioner DeLuca that the Human Resource Committee returns to open session.
Carried unanimously.
The Human Resource Committee meeting reconvened in open session at 1:55 p.m.
Upon conclusion of the closed session, the Human Resource Committee took the following action:
On motion by Commissioner DeLuca, seconded by Commissioner Lain, the Human Resource Committee recommended to renew the General Manager’s contract for one year with six months severance, 15% contribution, six months COBRA, outplacement services, and salary of $239,000 with a possible provision of an additional multi-year contract.
Discussion: Commissioner James noted that the Board of Commissioners should ensure that legal counsel review the issue with respect to any possible multi-year contract.
Action: Carried unanimously.
There being no further business the meeting adjourned at 2:00 p.m.
Respectfully submitted,
Sandra Zerkle, Chair
Human Resource Committee
|
A. |
Implementation of Identity Theft Prevention Program |
WHEREAS, the Fair and Accurate Credit Transactions Act of 2003 (FACT Act of 2003) amended the Fair Credit Reporting Act of 1970 (FCRA) requiring creditors that maintain covered accounts to develop and implement a written Identity Theft Prevention Program; and
WHEREAS, the American Public Power Association has had preliminary discussions suggesting that municipal utilities are subject to the FACT Act of 2003; and
WHEREAS, the Board of Commissioners, upon recommendation from the General Manager, believed FACT Act of 2003 may be considered best practices and worth implementing for the Lansing Board of Water and Light.
RESOLVED, that the Board of Commissioners for the Board of Water and Light designates the oversight, development, implementation and administration of an appropriate Program of the General Manager, who is directed to:
1. Provide the Board of Commissioners with an update of the Program when it has been implemented.
--------------------
Motion by Commissioner James, seconded by Commissioner Lain to approve the Implementation of Identify Theft Prevention Program resolution.
Action: Carried unanimously.
|
B. |
Public Hearing Date for Economic Development Rider for Chilled Water |
WHEREAS, the BWL began offering chilled water to customers in the downtown Lansing area in the summer of 2001; and
WHEREAS, currently the customers who are utilizing chilled water are: State of Michigan (12 buildings), Constitution Hall, MEDC and Ingham County Courts; and
WHEREAS, the purpose of this proposed Economic Development Rider for Chilled Water is to enhance economic development by encouraging customers to locate or expand facilities in the BWL’s service area which will result in a net benefit to the BWL and its customers; and
WHEREAS, the BWL will have ample chilled water capacity for the foreseeable future; and
WHEREAS, the proposed Economic Development Rider for Chilled Water offers discounts to customers on the capacity charges for the first 6 years. After that time, the customer then is billed on the standard capacity rate as published; and
WHEREAS, the BWL will consider adding new chilled water customers for the purpose of adding to revenues which can help keep rates more stable; and
WHEREAS, prior to such consideration, public input is warranted in the form of a public hearing as such addition will result in a change in the existing rate structure.
RESOLVED, that the Economic Development Rider for Chilled Water be made the subject of a public hearing prior to further consideration by the Board of Commissioners.
RESOLVED FURTHER, that the Board of Commissioners hereby set the date of Thursday, September 18, 2008, at 5:30 p.m. for a public hearing to solicit public input on the proposed Economic Development Rider for Chilled Water. The hearing will be held in the Board of Water and Light’s offices, 1232 Haco Drive, Lansing. The Corporate Secretary is directed to file with the City Clerk, no later than August 31, 2008, information regarding the proposed Economic Development Rider for Chilled Water with an effective date of October 1, 2008.
CHILLED WATER: Economic Development Rate Rider (Attachment)
--------------------
Motion by Commissioner Kramer, seconded by Commissioner Cochran to approve the Public Hearing Date for Economic Development Rider for Chilled Water resolution.
Action: Carried unanimously.
|
C. |
PURPA Standards for Net Metering, Fuel Sources, and Fossil Fuel Generation Efficiency |
WHEREAS, the Energy Policy Act of 2005 (EPAct of 2005) amended the Public Utility Regulatory Policies Act of 1978 (PURPA) requiring covered utilities to consider adopting five new standards; and
WHEREAS, the EPAct of 2005 amendments to PURPA require covered utilities to begin consideration of the Net Metering and Additional Standards, by August 8, 2007, with a public hearing and a determination made by August 8, 2008; and
WHEREAS, the Lansing Board of Water and Light (BWL), with electric retail sales in excess of 500 million kWhs meets the definition of a non-regulated covered utility; and
WHEREAS, a public hearing on Net Metering and Additional Standards was held on May 22, 2008.
BE IT RESOLVED, that the BWL shall implement the PURPA Standards accordingly:
1. Net Metering: Develop and promote a net metering program which meets the PURPA standard as applicable to the BWL.
2. Fuel Sources: Adopt the Fuel Sources standard as applicable to the BWL.
3. Fossil Fuel Generation Efficiency: Adopt the Fossil Fuel Generation Efficiency standard as applicable to the BWL.
--------------------
Motion by Commissioner Lain, seconded by Commissioner Kramer to approve the PURPA Standards for Net Metering, Fuel Sources, and Fossil Fuel Generation Efficiency resolution.
Action: Carried unanimously.
|
D. |
Jackson National Life Development Agreement |
WHEREAS, a Development Agreement between the city of Lansing, the Lansing Board of Water and Light, and Jackson National Life Insurance Company (Jackson National) has been negotiated and is presented for approval; and
WHEREAS, the Development Agreement sets forth the terms, conditions, and agreements of the parties relative to the future expansion of Jackson National’s world headquarters, business operations, and related facilities on an additional property site now located in Alaiedon Township adjacent to the current world headquarters; and
WHEREAS, the Alaiedon Township additional property site is the subject of a proposed agreement between the City and the Township conditionally transferring the site to the city of Lansing pursuant to 1984 Public Act 425 (the 2008 PA 425 Agreement); and
WHEREAS, the Development Agreement calls for the signatories to attach a Corporate Resolution certifying the persons executing the Development Agreement are duly authorized to do so; and
WHEREAS, the Contract Signature Authority (Res. 2004-01-08) and Line Extensions and Service Territory Expansions (Res. 2003-3-2) authorize the General Manager to execute agreements of this nature; and
WHEREAS, the Development Agreement is subject to the approval and execution of the 2008 PA 425 Agreement by the City and Alaiedon Township.
NOW, THEREFORE, BE IT RESOLVED, the General Manager and Corporate Secretary are authorized to execute the Development Agreement with Jackson National Life Insurance Company and the city of Lansing dated June 23, 2008, on behalf of the Lansing Board of Water and Light.
--------------------
Motion by Commissioner Cochran, seconded by Commissioner Rodocker to approve the Jackson National Life Development Agreement resolution.
Action: Carried unanimously.
E. Section 125 Compliance Settlement
RESOLVED, that the Lansing Board of Water & Light finalize and execute any and all pertinent documents in resolution of the Section 125 Compliance Matter with the Internal Revenue Service.
-----------------------
Motion by Commissioner Zerkle, seconded by Commissioner Cochran to approve the Section 125 Compliance Settlement resolution.
Action: Carried unanimously.
None.
Motion by Commissioner Cochran, seconded by Commissioner DeLuca to nominate the following slate of officers for fiscal year 2008-2009:
Chair – Commissioner Frank Lain
Vice Chair – Commissioner Sandra Zerkle
Discussion: There were no additional nominations from the floor.
Action: The Board of Commissioners voted for each officer position separately. The motion carried unanimously to elect Commissioner Frank Lain to the position of Chair and Commissioner Sandra Zerkle to the position of Vice Chair.
Comments: Commissioner James noted that it was a honor serving the board as Vice Chair for 2-months and then as Chair for 10-months. She expects the board to move forward in a positive manner, as there are critical issues facing them in the coming year. It was also advised that there are ratepayers at the board meeting with concerns in which they can hopefully bring about positive resolution. Commissioner James went onto congratulate Commissioners Lain and Zerkle and wished them well for the next fiscal year. She also advised that in serving as Chair, she viewed it as an honor and humbly and graciously accepted the challenge. Commissioner James noted that it is a tremendous honor to serve our citizens and hopefully the board will make the right decisions going forward as they have done over the last year.
RESOLVED, that the Board of Commissioners hereby approves the Internal Audit Charter, appended to the July 15, 2008, Finance Committee meeting minutes and the resolution as Attachment A, which conforms to the International Standards for the Professional Practice of Internal Auditing, Generally Accepted Government Auditing Standards and the Statements of Auditing Standards promulgated by the American Institute of Certified Public Accountants. On May 22, 2007, the Internal Audit Charter was approved by the Board of Commissioners and hereto referenced by Resolution 2007-5-12. It was subsequently resubmitted and discussed at the Finance Committee meeting held July 15, 2008, and deemed suitable for continued use with an amendment to comply with Generally Accepted Government Auditing Standards, revised in July 2007 for use by internal audit functions of federal, state and local government entities.
---------------------
Motion by Commissioner Lain, seconded by Commissioner Cochran to approve the Internal Audit Charter resolution.
Action: Carried unanimously.
Reappointment of the Charter Position of Corporate Secretary
The Board’s Rules of Administrative Procedures specify that the Board is to appoint a Director and General Manager, Internal Auditor, and Corporate Secretary, respectively at its first regular meeting following July 1st of each year or as soon thereafter as may be appropriate.
RESOLVED, That the Board of Commissioners hereby reappoints the following individual to the Charter position of Corporate Secretary for fiscal year 2008-2009, or, until a successor is appointed, whichever last occurs:
Rhonda Jones, Corporate Secretary
RESOLVED, That Rhonda Jones’ current employment contract is amended to reflect the new reappointment and contract commencement period of July 1, 2008.
----------------
Motion by Commissioner Kramer, seconded by Commissioner Lain to table revised agenda items 10b and 10c pertaining to the Reappointment of the Charter Position of Corporate Secretary and Compensation Increase and Contract Amendment for the Charter Position of Corporate Secretary.
The motion carried by roll call vote.
Yeas: Commissioners DeLuca, Kramer, Lain, and Rodocker.
Nays: Commissioners Cochran, James, and Zerkle.
Abstain: Commissioner Thomas.
Compensation Increase
For Charter Position of Corporate Secretary
RESOLVED, That the Corporate Secretary, Rhonda Jones, is hereby eligible to receive a salary adjustment effective as of July 1, 2008.
RESOLVED FURTHER, That the Board of Commissioners authorizes a three percent (3.00%) salary adjustment for the Corporate Secretary, based on the evaluation of the employee’s performance from July 24, 2007 through June 30, 2008.
----------------
Motion by Commissioner Kramer, seconded by Commissioner Lain to table revised agenda items 10b and 10c pertaining to the Reappointment of the Charter Position of Corporate Secretary and Compensation Increase and Contract Amendment for the Charter Position of Corporate Secretary.
Discussion: No reasoning was provided to Commissioner James’ inquiry regarding the desire to table the resolution.
Action: The motion carried by roll call vote.
Yeas: Commissioners DeLuca, Kramer, Lain, and Rodocker.
Nays: Commissioners Cochran, James, and Zerkle.
Abstain: Commissioner Thomas.
Resolution 2008-7-9
Reappointment of the Charter Position of Director and General Manager
The Board’s Rules of Administrative Procedures specify that the Board is to appoint a Director and General Manager, Internal Auditor, and Corporate Secretary, respectively at its first regular meeting following July 1st of each year or as soon thereafter as may be appropriate.
RESOLVED, That the Board of Commissioners hereby reappoints the following individual to the Charter position of Director and General Manager for fiscal year 2008-2009, or, until a successor is appointed, whichever last occurs:
J. Peter Lark, Director and General Manager
RESOLVED, That J. Peter Lark’s current employment contract is amended to reflect the new reappointment and contract commencement period of July 1, 2008.
----------------
Motion by Commissioner Lain, seconded by Commissioner Kramer to approve the Reappointment of the Charter Position of Director and General Manager resolution.
Action: Carried unanimously.
Resolution 2008-7-10
Compensation Increase and Contract Amendment
For Charter Position of Director and General Manager
RESOLVED, That the Director and General Manager, J. Peter Lark, is hereby eligible to receive a salary adjustment effective as of July 1, 2008.
RESOLVED, That the Board of Commissioners authorizes a salary adjustment for the Director and General Manger, such that his base salary equates to $239,000.
RESOLVED, the Director and General Manager’s contract shall be amended to reflect a defined contribution increase to 15%, and a severance package which includes 6 months severance pay, 6 months employer paid COBRA premiums, and outplacement services.
FURTHER RESOLVED, The Board of Commissioners shall consider a possible provision for granting the Director and General Manager a multi-year contract.
--------------------
Motion by Commissioner Lain, seconded by Commissioner Rodocker to approve the Compensation Increase and Contract Amendment for Charter Position of Director and General Manager resolution.
Discussion: Commissioner James advised that the Human Resource Committee
met yesterday and recommended that Peter Lark’s salary be increased from
$190,000 to $239,000. Commissioner James noted that she was not in favor of
the amount and instead suggested a cost of living increase of 3-4%. The compensation
will also consist of a 6-month severance package, 6-months COBRA, and employment
assistance after termination. In addition, there was question as to whether or
not the monthly car allowance and existing memberships to the Lansing Country
Club and University Club was still included. Commissioner James indicated that
she was in favor of the other items but thought she and the citizens of Lansing would find the club memberships and $239,000 salary to be excessive. The BWL is a
public entity that should not compensate its Director in this manner.
Commissioner James also advised that it was a gross injustice and she maybe the
only Commissioner that shares this sentiment. The citizens are the ratepayers
and it is believed that if put to a vote, the citizens of Lansing would not
agree with the compensation package. Commissioner James advised that Mr. Lark
has done a good job and she did not begrudge a modest salary increase of 3-4%.
However, on behalf of the ratepayers she could not recommend nor thought
warranted a 26% or $49,000 salary increase. Commissioner James noted that they
owe accountability to the citizens of Lansing and if fellow Commissioners feel
the increase is warranted then she is only one vote. It was further advised
that Commissioner James thought it neither appropriate nor acceptable and she
would not be in support of the compensation package.
Commissioner Cochran advised that although he is not a member of the Human Resource Committee, he too was present for the discussion. He further noted that sometimes you think that you are going to feel good and find something acceptable on one day and after you have some time to think about it you change your mind. Commissioner Cochran noted that Mr. Lark had done a very good job as was previously stated. He also referenced the state of the economy; Lansing’s current situation, upcoming union negotiations, and the low percentage amount budgeted for anticipated rate increases for non-bargaining employees and executive officers. He further advised that a raise of $49,000 is approximately a little over 20% and when the board hired Mr. Lark a year ago his salary was adjusted from $120,000 to $190,000. Commissioner Cochran noted that Mr. Lark has one years experience as a General Manager and because of his performance he deserves a raise but he found it hard to wrestle with his conscience that the board would give such a huge raise when he did not believe it necessary. He noted that just recently they asked the ratepayers to increase rates across the board and they are paying for this; such a big increase is going to affect the budget that was just presented. Commissioner Cochran further advised that he did not think it appropriate and hence he will vote no on the resolution.
Commissioner James echoed Commissioner Cochran’s sentiments and also noted that there are many foreclosures and people losing their jobs in Lansing. As such, it would not be in their best interest to grant the increase.
Commissioner Kramer noted that none of the previous comments were voiced during the time in which the board was discussing said matters. He also provided the following information for the general public’s understanding: finding talented executives that are capable of managing and operating a public utility company is very difficult. When you are in an organization where you can find the right talent, at the right place, and time to lead an organization, one of the most important things you need to do is to be able to retain that talent. The analysis prepared by the Human Resource Department and independent consultants found that the median average (50% of all similar positions) presented an average pay scale of plus 10% was $293,000. Therefore, 50% of the executives nationally in similar positions of responsibility earn $290,000 on average (which represents 80-90 positions). It was noted that Mr. Lark accepting a $190,000 contract a year ago was very nice and very good for him to accept at a time when the BWL needed an executive but it is time to respect and recognize the performance that he has done and the capabilities that he is able to provide for the BWL. The new pay structure is still well below the national average and well below what an individual of his capabilities is able to earn at other organizations. Hence, it takes money to retain and seek talented people to run a very complicated organization. Commissioner Kramer also noted that he fully supports the resolution and believes that Mr. Lark is still underpaid for the capabilities he brings to the organization.
Commissioner Lain thanked Mr. Lark for coming to Lansing at the lower rate and noted that his current pay is at the bottom of the scale for people in his venue.
Commissioner James stated that she would like to vehemently express her displeasure at what she considered a horrendous amount for a public official and especially inappropriate during tough economic times. Commissioner James acknowledged that she was unaware that the board was trying to retain Mr. Lark and did not know that there was another offer on the table, which would warrant this type of salary and compensation package. She also advised that she did not begrudge Mr. Lark the ability to go out and earn as much as possible. However, this is a public utility owned by the ratepayers and everyone has to be accountable. There are people who cannot pay their bills, receive cutoff notices, and are laid off. Commissioner James further advised that if she were Mr. Lark she would not accept the compensation. She also noted that Mr. Lark is earning a good amount of money and strongly encouraged him to accept a 4% increase until times in Lansing get better. Commissioner James further noted that she understood the range information developed by the Human Resource Department. However, she did not think the resolution to be in the best interest of Lansing.
Action: The motion carried by roll call vote.
Yeas: Commissioners DeLuca, Kramer, Lain, Rodocker, Thomas and Zerkle.
Nays: Commissioners Cochran and James.
Abstain: None.
MANAGER’S REMARKS
Coal Contract. General Manager Peter Lark reported that the BWL with the assistance of Executive Director Dick Peffley executed a coal rail contract with DTE that will allow the citizens of Lansing to save $52 million over the next two years.
Fiscal Budget. Peter Lark inherited a budget with a net income loss of $6 million. Although not guarantee, it is projected that the BWL will have year-end net income profit of $12 million as opposed to a loss of $6 million, which is positive for the ratepayers.
Connections Live! The BWL is scheduled to host its 2nd Annual Connections Live on September 15th from 5:30 p.m. to 7:30 p.m. at Dwight Rich Middle School. The event is designed to help BWL customers lower their rates and save on electricity and natural gas through various conservation efforts.
Commissioner James noted that she was displeased at the tabling of the resolutions regarding the Corporate Secretary. She also advised that the Secretary has done a fine job for the Board and they will take up the matter at another time.
EXCUSED ABSENCE
No excused absences.
Eric Crosley, 228 S. Foster, Lansing shared a short poem and expressed concern regarding the General Manager’s salary increase.
Rev. Richard Preston, 628 Lincoln Avenue, Lansing discussed the guiding principle of common good and expressed concern regarding the General Manager’s salary increase.
Steve Rall, 1608 W. Shiawassee, Lansing thanked Commissioners Cochran and James for their comments regarding the General Manager’s salary increase. He also expressed concern regarding the mountain top removal coal mining process and its environmental and economic effects in the Appalachia area.
ADJOURNMENT
On motion by Commissioner Cochran, seconded by Commissioner DeLuca, the meeting adjourned at 6:42 p.m.
/s/ Rhonda, Corporate Secretary
Filed with Lansing City Clerk
August 1, 2008