The Board of Commissioners met in rescheduled regular session at 5:30 p.m., in the Main Office Building, 123 West Ottawa Street, Lansing, Michigan. The meeting was called to order by the Chair, Ernest Christian.

Present: Commissioners Aquilina, Creamer, Christian, Graves, O’Leary, Pratt, Royal, and Werbelow.

Absent: None

The Secretary declared a quorum present.

The invocation was delivered by the Chair.

The Pledge of Allegiance was said by all.

Commissioner Werbelow referred to page 82 of the September 30, 1997 minutes, the section under General Manager’s Remarks, regarding the Sale of the Main Office Building, first sentence of the second paragraph. He proposed that the sentence be corrected by striking out three words, and to read as follows: "Following discussion, the Commissioners agreed on the need for a definitive answer in writing from the developer or the tenant indicating an intent to proceed with the project.

Adopted unanimously.

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

No persons spoke.

No communications.

No committee reports.

RESOLVED, That the issuance of Purchase Orders be authorized to the following Consultants for providing Professional Services for process redesign and implementation.

1. Prism Performance Systems, Farmington Hills, Michigan for providing assistance in process definition and improvement including assisting in the planning and facilitating of employee participation conferences.
   
2. Emergent Systems, Brighton, Michigan for providing assistance in Human Resource issues.
   

Consulting services will be provided on a hourly/daily rate plus actual expenses.

Several Consultants were contacted and these were the only two with experience in these areas which could meet the time schedule for the process redesign and implementation. Both firms have provided consulting services to the Board in the past.

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YEAS: Aquilina, Christian, Creamer, Graves, O’Leary, Pratt, Royal, Werbelow

NAYS: None

ABSENT: None

WHEREAS, Copies of the 1997 audit reports for the Board of Water and Light and for the Plan for Employees' Pensions of the Board of Water and Light and a copy of the report on the system of internal control were filed with City of Lansing officials by Deloitte & Touche, LLP on September 22, 1997.

WHEREAS, The audit report for the Board of Water and Light and the report on the system of internal control is hereby received and referred to the Finance Committee. The auditors found no significant items that warranted submission of a management letter.

WHEREAS, The 1997 audit report for the Plan for Employees' Pensions has been received and reviewed by the Pension Plan Trustees.

RESOLVED, That the Corporate Secretary be directed to file copies of both audit reports and the report on the system of internal control with the State Treasurer as required by law.

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Publishing a condensed copy of the Board of Water and Light audit report in The State Journal is not required by law. However, it may be done at the discretion of the General Manager.

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Approved by the following vote:

YEAS: Aquilina, Christian, Creamer, Graves, O’Leary, Pratt, Royal, Werbelow

NAYS: None

ABSENT: None

Office Building Status. Commissioner O’Leary reported that the deadline for the State of Michigan to receive bids on their request for proposals for space to relocate offices for the House of Representatives is October 27. Bids are expected to be opened on October 28.

Ottawa Station Update. General Manager Pandy reported that requests for proposals for equipment removal and salvage bids for the Ottawa Station are due November 11. Staff will be presenting a preliminary cost analysis report at the Committee of the Whole meeting scheduled for November 11. Mr. Pandy also reported that he contacted Thomas Coates soon after the September 30, 1997, regular meeting to communicate the Board’s decision on authorizing the Sony Market Study on the feasibility of a theater complex (per Board Resolution 97-9-8). The written communication to Mr. Coates indicated that the Board would expect to receive a copy of Sony’s written analysis by January 1, 1998. Mr. Coates did confirm that the January 1, 1998, deadline was an adequate amount of time to complete the study.

Chairperson Christian announced the standing committee assignments for Fiscal Year 1997-98:

WHEREAS, As he brings to a close his exceptional service as Commissioner of the Board of Water and Light, it is a pleasure to extend our congratulations to R. John Strolle. Over his past nine years of impeccable service to the customers of the Board of Water and Light, he has set standards of fiduciary responsibility, integrity and effectiveness that are most deserving of formal acknowledgment; and

WHEREAS, It is most apparent that John sincerely cares about the employees and the customer owners who are served by the Board of Water and Light. Beginning with his appointment to the Board on May 31, 1988, John has contributed leadership over the years in a variety of matters affecting this utility. Especially noteworthy is his near perfect attendance record of having missed only one Board meeting during his tenure. He ends his year as the Chair Pro Tem of the Board and the Chair of the Personnel Committee; and

WHEREAS, With all his responsibilities, he was always prepared and thoughtful during all Board deliberations. His professionalism, hard work, and sensitivity to the needs of the public have won for him the respect and admiration of his peers and all who have had the good fortune of knowing John; and

WHEREAS, We are confident that his unwavering commitment to the Board of Water and Light and the City of Lansing will continue to be manifested in many ways; and

WHEREAS, Respected as the owner of "J. Strolle Gentlemen’s Attire," he brought real class to the boardroom. It is seldom we see a person as well "suited" to his career spanning forty years as John is in the men’s clothing business. A strong commitment to quality and personal service are keys to his success.

IT IS RESOLVED, That tribute be accorded to honor and thank R. John Strolle as he brings to a close his efforts with the Board of Commissioners of the Board of Water and Light. In regular session this 27th day of October, 1997, we wish John, his lovely wife, Deanna, and his family the very best and well-deserved happiness and fulfillment.

Motion:

YEAS: Aquilina, Christian, Creamer, Graves, O’Leary, Pratt, Royal, Werbelow

NAYS: None

ABSENT: None

Power Outage Due to Snowstorm. General Manager Pandy reported on power restoration efforts following the October 27 snowstorm that dumped three inches of wet snow dragging tree limbs onto power lines and knocking out electricity for nearly 23,000 BWL customers. The Commissioners were given a handout listing outage areas that continue to exist and areas expected to be back on between present and the next day. The storm was particularly devastating due to the fact that leaves were still on trees, causing tree limbs to break and fall due to the added weight. Mr. Pandy reported that ten line crews have been working around the clock, three crews from other utilities were brought in, plus six BWL crews, and fourteen additional service crews from electrical contractors. Nelson Tree Service, which services the BWL, increased their help from six to ten crews. A total of 22 spotting crews were in operation, identifying trouble and reporting it back in. Hundreds of employees and other people worked all night answering phones. Mr. Pandy noted that the phone system is still not working well and that clearly there is a need to accelerate the acquisition of new phone equipment to improve the response time on answering phones. Calls reporting downed wires were given priority as well as customers on life support systems. Customers were kept informed of restoration efforts through communications with the news media.

The Board discussed the need to accelerate publicity on the importance of keeping trees trimmed to reduce power outages caused by fallen limbs. Mr. Pandy agreed to include information on this topic in a future Connections newsletter. Employees were saluted for their outstanding work in responding to outage emergencies.

GM Steam Main Status Report. A memo from Steam Utility Director Joette Woodard-Yauk, dated October 27, 1997 regarding the General Motors (GM) 20 inch Steam Main Project was handed out for information. Mr. Pandy gave an overview of the overall project time line. The project rework is progressing well, given the magnitude of the work being undertaken. Joette Woodard-Yauk was present to respond to questions relative to the general project schedule with Pipe Systems, Inc. and project cost estimates.

Adopt A River Cleanup. A thank you letter from Michael A. Sanders of Woldumar Nature Center, dated

October 21, 1997, was handed out. Mr. Sanders’ letter expresses gratitude for the BWL’s Construction Services Department’s (CSD) involvement in the September 20, 1997, Adopt A River cleanup. Communications Director John Strickler and CSD Shops Supervisor Calvin Jones were acknowledged for leading the efforts for the BWL.

Commissioner Werbelow requested an overview on how an alliance with Wisconsin Power & Light (WP&L) to provide coal transfer services is supposed to work and how it could benefit the BWL.

General Manager Pandy reported that WP&L and others, including Detroit Edison’s coal subsidiaries, are investigating the feasibility of selling all kinds of energy. WP&L has been prospecting for other utilities and industrial customers in Michigan who would benefit from the less expensive Western fuels. Mr. Pandy commented that WP&L can supply coal to Michigan in unit trains (100-car trains) at a favorable price, however, distributing coal in smaller amounts to smaller users becomes a problem. WP&L proposes utilizing Erickson Station as a distribution hub for Powder River Basin (PRB) coal. An estimated 200,000 tons per year could transfer from rail delivery to storage and to trucks for distribution in Michigan at a profit for the BWL. Staff is negotiating capital investment issues with WP&L. Details of the BWL’s proposal are outlined in a letter to WP&L, dated October 15, 1997.

Commissioner Creamer commented that he recently had a positive discussion with BWL employee Mike Stanley on the BWL’s involvement with the School for Managing. Commissioner Creamer asked for additional information on the program.

General Manager Pandy responded that Mike Stanley is a union employee with the BWL and is among ten employees from management and union, attending the School for Managing (SFM) in Jackson, Michigan. The SFM team has been learning first hand from world experts on how to change the culture of a company to become more focused on customers and quality. The SFM team has been instrumental in sharing their knowledge on how to improve our processes to become a better competitor. Mr. Pandy noted that the City of Lansing is planning to send a team of employees to the SFM’s next session.

Commissioner Werbelow noted that he recently listened to a TV program featuring the State Journal interview of one of the candidates running for office. This particular candidate gave the impression that the study the City Council is considering on the evaluation of the BWL is a joint effort between the BWL and the City Council. Commissioner Werbelow expressed concern since the Board does not have a vote on whether the study is necessary, the scope of the study and how it is to be done. The candidate also claimed that the BWL has excessive reserves and should lower its rates. Finally, the candidate also stated that because the BWL has excess water capacity, rates should be discounted to industrial customers. Commissioner Werbelow noted that at some point in time the BWL should address these issues so that the public knows the position of the Board.

Commissioner Graves reminded that at the September 30 Board meeting, he requested information on the BWL’s contractual services with women and minority-owned firms. He asked for a time frame as to when this report will be available.

General Manager Pandy stated that the Purchasing Department has been preparing this information and will have it available at the next Committee of the Whole meeting.

Commissioner Pratt commended the BWL on reaching its United Way Campaign contribution goal of $100,000.

Chairperson Christian reminded the Commissioners of Public Power Week to be held November 10-13. He encouraged everyone to show support by attending the planned activities.

THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME TO SPEAK TO THE BOARD ON ANY BOARD OF WATER AND LIGHT SUBJECT.

No persons spoke.

No absences.

On motion by Commissioner Aquilina, the Board adjourned at 6:23 p.m.

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Marilynn Slade, City Clerk