Approved by the Board: May 27, 2008

MINUTES OF THE BOARD OF COMMISSIONERS' RESCHEDULED MEETING

LANSING BOARD OF WATER AND LIGHT _________________________

Tuesday, March 25, 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 and Sandra Zerkle.

Absent: Commissioner Joseph Graves

The Secretary declared a quorum present. Chairperson James called the meeting to order at 5:30 p.m.

APPROVAL OF MINUTES

Motion by Commissioner DeLuca, seconded by Commissioner Cochran, to approve the minutes of the rescheduled regular board meeting held January 29, 2008. Carried unanimously.

PUBLIC COMMENTS

THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER SUBJECT NOW, OR AT THE END OF THE MEETING. There were no public comments.

COMMUNICATIONS

None.

COMMITTEE REPORTS

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BOARD RETREAT SUMMARY

February 1, 2008 – 8:30 a.m. to 1:30 p.m. The James B. Henry Center for Executive Development

3535 Forest Road – Lansing Present: Commissioners Robert Cochran, Tony DeLuca, Joseph Graves, Semone James, Peter Kramer, Frank Lain, Julee Rodocker, and Sandra Zerkle. Absent: None Facilitator: Bryan Singletary, President of Practical Energies Staff Present: Acting Corporate Secretary Rosemary Sullivan The Board of Commissioners met with Facilitator Bryan Singletary on day one of the board retreat to receive guidance regarding board development and strategic planning in relation to Board of Water and Light (BWL) matters. Facilitator Bryan Singletary informed the Commissioners that the American Public Power Association may present a workshop in the near future on governance roles and responsibilities in Lowell, Michigan. For example, the Commissioners role is to set policy and hire and direct the Chief Executive Officer (i.e. General Manager). Whereas, staff’s role is to focus on operational, financial, and engineering needs of the BWL, which includes but is not limited to customer complaint response. Strategic planning is structural, and looks at the future of the utility, based on market, consumer technology, and financial issues. A strategic plan is a living, written document that expresses consensus of the governing board on the future outcome of the utility. The roles of the Commissioners are to:

Hold staff accountable Represent all consumers Insure long-term success of the utility Approve the budget Evaluate the GM Help the organization stay on course Audit every aspect of the organization

Value Mission Statements are an expression of what the organization wants to become. Value Statements are explanations of how one is expected to behave around others and how one values its stockholders. A Mission Statement is an explanation of what the company does and why it exists. Mr. Singletary presented a slide of the following exercise:

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Vision Statement Exercise a.) As an organization moves forward we will be….. b.) As a public power sector our governance structure will be characterized by….. c.) Our customers will view us as….. d.) What will we be known for in the community….. e.) We will lead through….. f.) Our employee’s will describe the organization by…..

Value Statement of Exercise: What are 4 to 6 core values the organization and employees should have? How will you value your:

a.) Key Accounts b.) Commercial Customers c.) Residential Customers d.) Employee’s e.) Community f.) Other Departments

Mission Statement Exercise: Describe what the organization does:

a.) Provide reliable utilities b.) Cost effectiveness c.) Ensure long term power discussion for the long haul d.) Environmental stewards e.) Planning new market strategies f.) 600 kW – last power plant

Strength and weaknesses are internal, opportunities and threats are external (SWOT = Strength – Weaknesses - Opportunities – Threats) What are strengths of the BWL?

Low rates Top quality water Good service Reliability

The Commissioners brainstormed a master list of issues that the BWL must have in order to do well and move towards a vision consistent with its values and mission:

a.) Reliable cost effective power long term power supply b.) Human Resource Department - work to keep workforce healthy, insure reliable people

power, succession planning c.) Evaluate direct reports accurately – General Manager, Internal Auditor, and Corporate

Secretary d.) Labor relationships e.) Identify renewable energy resource opportunities – diversify quality f.) Customer service – maintain quality

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g.) Public image (advertising) customer public image h.) Maintain communication mechanism with public i.) Maintain sufficient cash for good bonding rates, maintain good bonding capabilities j.) Continue to seek Operations &Maintenance (O&M) cost reductions k.) Establish budget/perform budget maintenance l.) Continue to identify new markets for sales m.) State of the art Information Technology operations, i.e. smart metering mobile tracking n.) Ensure public and workplace safety o.) Hold GM accountable to strategic issue metrics p.) Demand side management and efficiency programs q.) Maintain compliance

The Commissioners again brainstormed items for information they would like to receive from the GM on a monthly basis:

a.) Budget Compliance b.) Schedule Compliance on Capital Projects c.) Safety Metrics d.) Progression on Strategic Initiatives (issues) e.) Legal Updates f.) Press Releases (courtesy call) g.) What questions – CAIDI, SAIDI (reliability measures).

How BWL did compared to others? h.) Customer Satisfaction i.) Employee Satisfaction j.) Management to Report on Community Involvement k.) Monthly Written Report on What GM has Done (maintain positive image) l.) Regulatory Compliance m.) Rate Comparison n.) Financial Report o.) Information Technology Report Update

Submitted by Rosemary Sullivan Acting Corporate Secretary The report will be filed with the minutes of the March 25, 2008 Board meeting.

BOARD RETREAT SUMMARY

February 2, 2008 – 8:30 a.m. to 1:00 p.m. The James B. Henry Center for Executive Development

3535 Forest Road – Lansing

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Present: Commissioners Robert Cochran, Tony DeLuca, Joseph Graves, Semone James, Peter Kramer, Frank Lain, Julee Rodocker, and Sandra Zerkle. Absent: None Staff Present: General Manager J. Peter Lark, Executive Director and Chief Financial Officer Susan Devon, Executive Director of Operations Dick Peffley, Executive Director of Strategic Planning and Development George Stojic, Director of Production George Bibbings, Communications Director Mark Nixon, Director of Engineering Doug Wood, Government Relations Manager Calvin Jones and Corporate Secretary Rhonda Jones. On day two of the Board retreat, the Commissioners met with staff members to discuss strategic planning in relation to the Board of Water and Light (BWL). As such, General Manager J. Peter Lark discussed the need for the BWL to start thinking about its long-term electric generation plans. In essence, the BWL will look at renewables, energy efficiency and building a power plant to replace 120 mW (which are Eckert units 1-3 initially and units 4-6 eventually). Staff is working to obtain more landfill gas, making hydro’s operational, and creating an energy efficiency program. It was also noted that staff worked with the Department of Environmental Quality (DEQ) regarding the mercury rules and air quality relative to the Eckert Station units. In addition, it would cost the BWL more money to cleanup the stacks than it is worth due to their current age and anticipated life span. It takes approximately 7-10 years to build a plant. Therefore, it is necessary to make decisions regarding whether to build a plant, partner with another entity or do nothing at all. Additionally, the BWL may also want to consider building and/or partnering to build a gas plant. The cap and trade program (which allows a certain amount of populants in the environment and also allows for the buy and sell of those allowances) will increase the cost of natural gas and will be dependent upon the results of the upcoming presidential election. Listed below are various facts regarding power plants in the state of Michigan. Plant Information: Few plants have been built in the U.S. within the last 5-10 years. Last base load plant built in Michigan was 1985. Demand increased due to consumption and plant retirements. The last nuclear plant built in the United States (U.S.) was 1979. Detroit Edison (DTE) plans to build a nuclear plant, which should take 12-15 years. Building a nuclear plant is not an option for the BWL due to size, cost, and opposition to

build in the Lansing area. It was noted that during the plant consideration process, the BWL should form a community group that would be responsible for making recommendations relative to building a plant. Listed below is the suggested timetable for the upcoming project: Receive integrated resource plan – March 2008 Form community group – April 2008 Receive community group recommendation(s) – July 2008 File (if applicable) with the DEQ – Fall 2008

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In response to a Commissioner question, staff noted that they were unsure if the existing permit at Erickson Station would allow for a new plant to be built under new environmental rules. However, they would check and see if it is possible. George Stojic, Executive Director of Strategic Planning and Development reviewed, in detail, presentation materials entitled, “Electric Generation Expansion Planning”. The review addressed a number of items that specifically included the electric planning process, retail and historical sales, demand growth, existing generating capacity, new resource options, generating technologies, planning goals and contingencies as well as environmental costs. Three principle goals to consider in the electric planning process include reliability, affordability and minimizing risk. Electric planning process Forecast future electric peak demands and annual energy requirements Identify inventory of operating units over planning horizon Determine if additional resources are needed Evaluate resource options to determine which resources best meet the need Listed below is a brief summary of some of the specific points discussed during the presentation. BWL forecast for retail sales load; 1.1 million mWh or one third of sales go to non-retail

customers. BWL is long on base load generation, containing 9 units spread out over 3 plants. BWL anticipates taking some of the Eckert units out by the year 2018. BWL also anticipates an overall 1.4% growth rate Commissioner Zerkle departed at 10:27 a.m. BWL ownership interest in Belle River is a long-term contract with MPPA until the plant is

taken out of service. Natural Gas – 1/3 more drilling wells are dedicated to natural gas. Supply is currently flat

and prices are expected to increase. Retooling equipment can trigger new source review (NSR) in which the Environmental

Protection Agency can require air emissions controls. Eckert Power Plant NSR retrofit exposure and replacement costs include the following:

Air Emission Control Equipment Selective Catalytic Reduction $80,000,000 Flue Gas Desulfurization 130,000,000 ACI with Polishing Filter 3,000,000 Annual O&M 3,200,000

Water Intake Regulations

Closed Loop Water Cooling $46,000,000 Annual O&M 146,000

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Listed below are the net unit heat rates per British thermal units (Btu’s) of input for each Kwh generated per new plant technologies and existing facilities. New Combined Cycle units – 6,860

(Natural gas fired combined cycle units are very efficient and used to produce steam. They are only utilized a few months in a year due to high gas prices.)

New Circulized Fluidized Bed – 9,837 (CFB can burn almost anything including renewables. However, it is a little less efficient than pulzarized coal.)

New Pulzarized Coal – 9,643 Erickson – 10,645 Eckert 6 – 11,759 Eckert 5 – 11,770 Eckert 4 – 11,652 Eckert 3 – 12,330 Eckert 2 – 13,062 Eckert 1 – 12,864 New Resource Options Traditional generating plants - Coal - Natural gas Renewable energy Energy efficiency Load management Market purchases Renewable Energy Options Landfill gas – High reliability at 97%. Hydro – Moores River is an option. Wind – Availability is 25%. Solar Biomass – Is a possibility. Commissioner Zerkle returned at 11:13 a.m. In addition to the above items, staff reported that Sargent Lundy is doing a site analysis regarding the building of a new generation facility. It was estimated that the BWL could build a 550 mW plant but it could also build the smallest supercritical plant (530 mW) at the site as well. Other municipalities have expressed an interest in partnering with the BWL, as they do not have good options after 2010. If the BWL decides to partner with others then the transmission issues will be the respective partners issue and not the BWL’s. The BWL is pulling out of the MPPA Power Pool and they have been notified to that effect respectively. If the BWL covers its load and what is needed for MPPA then the BWL still has to work through the MPPA for third party sells. Huge demand for new plants in China and India has caused prices to rise in the United States.

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In order to determine the cost to build a new plant: multiply the number of kW’s that one would need by the cost per kW. Receiving air permits takes place prior to taking bonding action. The BWL would earn interest on the bonds until it starts paying to actually build the plant. The revenue stream will increase until the project takes flight also noting that the revenue from excess capacity is relatively safe. BWL cost will eventually increase. However, DTE and Consumers Energy cost are also going to heighten at a faster pace than the BWL. In addition, it was further advised that risk exposure could be determined by how much the BWL exceeds the initial 120 mW of needed generation. A copy of the Electric Generation Expansion Planning presentation dated February 2, 2008 is on file in the office of the Corporate Secretary. Recap of Strategic Planning Session – Day One The Board of Commissioners presented staff with a list of items that represented their strategic planning discussion from day one of the board retreat. The list contained key elements of a mission statement, master issues, and reporting metrics. It was noted that staff is already working on many of the issues. However, it was suggested that the General Manager develop a strategic plan that would incorporate the master issues and reporting metrics discussed during the board retreat. The information presented to staff is an idea of what the Commissioners would like to see in the plan and a framework to begin the project. The Commissioners agreed that they would like to receive communication from staff as to the framework of the strategic plan by May 2008. The communication would include the time needed to complete the plan, persons assigned to the task, and talking points. In response to the overview, Peter Lark noted his reluctance to state what staff would have prepared by May 2008, as he has not worked on this topic until now. In response the Commissioners clarified that the BWL should formalize the process as they are already working on many of the tasks. It was also conveyed that the General Manager needs time to digest what was discussed and ensure that he is in agreement with the plan. The Commissioners also want to ensure that the ideas for the retreat are carried forward and not forgotten. Furthermore, the reports stipulated in the reporting metrics will help ensure that the Board of Commissioners abstains from the operational side of the BWL. There being no further business the meeting ended at 1:05 p.m. Submitted by Rhonda Jones Corporate Secretary The report will be filed with the minutes of the March 25, 2008 Board meeting.

Summary Report of the Joint Meeting of the Board of Water and Light Commissioners

and Lansing City Lansing Council September 27, 2007

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Board of Commissioners Chair, Santiago Rios called the meeting to order at 12:07 p.m. The meeting was held in the Boardroom of the Administrative Offices, 1232 Haco Drive, Lansing, Michigan. The following Commissioners were present: Robert Cochran, Joseph Graves, Semone James, Peter Kramer, Santiago Rios, Julee Rodocker, and Sandra Zerkle. Absent: Commissioner Robin Smith. Councilmember’s Present: Kathy Dunbar (arrived at 12:31 p.m.), Brian Jeffries, Tim Kaltenbach, Harold Leeman, Derrick Quinney and Carol Wood. Absent: Councilmember’s Sandy Allen and William Matt. City staff members were not present. BWL Staff Present: General Manager J. Peter Lark, Chief Financial Officer Susan Devon, Executive Director Dick Peffley, Manager of Governmental Relations Calvin Jones, Corporate Secretary Rhonda Jones, and Administrative Secretary Rosemary Sullivan. IBEW Local 352 Representatives Present: Business Manager Joseph Davis, Assistant Business Manager Ron Byrnes, Assistant Business Manager Jim Dravenstat-Moceri, and President Dolores Appling. The purpose of the joint meeting was to present an update to City Council on the following topics:

Public Comment There were no public comments. Agenda Items: 1. Update on Tree Trimming. J. Peter Lark, General Manager reported that the Board of Water and Light (BWL) is doing a good job with tree trimming and is at the end of its 5-year cycle. The Wright Tree Service contract continues to be reviewed and the BWL is in the process of establishing one in-house tree trimming crew and contracting trim work to the City of Lansing. It was also noted that the BWL is looking at this project and others in a broad perspective. 2. Update on Delta Township Water Agreement. Mr. Lark noted that he met with Joe Drolett, Delta Township Supervisor and is optimistic that they will workout an agreeable solution relative to issues involving the water agreement. 3. Update on Rules of Procedure. Commissioner Rios reported that the Board of Commissioners received input on the Rules of Procedure from Brigham Smith, City Attorney. They were amended and approved at the September 25, 2007 Board meeting and will be resubmitted to the City Attorney and Council for approval as to form and final adoption. 4. Update on Safety Improvements. Mr. Lark noted that the BWL is considering the implementation of a safety incident plan. Whereas, employees are rewarded for going one year

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without a safety incident. They are reviewing a monetary and non-monetary reward system so that employees will know that management takes safety seriously. Joseph Davis, Business Manager and Dolores Appling, President of IBEW Local 352 recommended that proactive solutions such as, purchasing equipment and maintaining safety often works better than incentives. At times, monetary incentives cause people to work against one another and gives employees a sense of entitlement. It was noted that one must change their overall thought process regarding safety. 5. Update on Financials for Fiscal year end 2007. Susan Devon, Chief Financial Officer (CFO) reported the following net income for fiscal years 2006 and 2007. FY06 FY07 Electric $15,000,000 gain $22,700,000 gain Water 2,200,000 loss 900,000 gain Steam 5,300,000 loss 800,000 gain Chilled Water 1,100,000 loss 850,000 loss Councilmember Wood inquired as to the status of negotiations between the BWL and City administrators regarding the payback contingency for the street light rider. Mr. Lark advised City Council that he was unaware of any negotiations regarding the payback contingency contained within the street light rider. He also noted that the payback period has commenced and the City of Lansing is on schedule with regards to repayment. Councilmember Dunbar asked if the City of Lansing and the BWL has had discussions regarding the annual amount charged for the Fire Department to tap fire hydrants. She further indicated that the Fire Department was assuming responsibility for consumption that is unrelated to their departments use, i.e. street sweepers. City Council will refer the question to Jerry Ambrose, Mayor’s Chief of Staff for further discussion. 6. Update on Removal of Lead Pipes. It was reported that the BWL is ahead of schedule and is in the process of adding another BWL crew to assist with the removal of lead pipes. Customers with special priorities, i.e. churches, hospitals, community centers, etc. has been addressed and the removal process is essentially following the CSO Project. In response to a question from City Council, BWL staff noted that they would follow-up with Council regarding customer’s ability to determine when their lead pipes will be replaced. City Council and the Commissioners also discussed increasing the BWL’s involvement in the CSO Project to help increase efficiencies and reduce cost. An Ad Hoc Committee on Workforce Development comprised of Commissioners, staff persons, and union representatives was formed to look at tree trimming, high school partnerships, present BWL employment and the development of capacity to allow the BWL to do more work in-house. Corresponding cost benefit analysis of work presently done by external parties will also be taken into consideration during the review process.

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7. Update on Public Relations. Mr. Lark advised Council that there have been several positive things that have recently occurred. Some of those items include the Renewable Portfolio Standard, an upcoming change a light announcement with the Mayor of Lansing and Urban Options, as well as a future BWL project involving the exchange of old incandescent light bulbs for compact fluorescent lamps (CFL’s). 8. Update from the Director of Internal Audit. Susan Devon, CFO reported that the Internal Audit Department has completed three audits that include fuel procurement, procurement cards, and coal audit. Two requests for proposals (RFP) are also being developed relative to the SAP Controls Assessment and deferred benefit plan advisors. They will also conduct a feasibility study regarding the implementation of Sarbanes-Oxley. 9. Update on CSO Project. The BWL continues to work with the Public Service Department to coordinate work necessary due to the CSO Project. In response to Council’s inquiry, BWL staff noted that they continue to receive customer complaints that are monitored on a daily basis. In addition, staff also confirmed that the BWL recoups cost whenever contractors dig into utility lines that were properly marked. 10. Update on Organizational Structure and Strategic Plan. Mr. Lark noted recent additions to the executive management team that include Susan Devon, Chief Financial Officer and George Stojic, Executive Director of Strategic Planning and Development. It was also advised that Dick Peffley was named Executive Director of Operations. In addition, the General Counsel position is currently vacant but has been posted and individual persons are now in charge of each respective power plant. Mr. Lark further noted that he has enjoyed his time at the BWL. He is very positive and upbeat and believes that they have a fine team in place. Joseph Davis, Business Manager of IBEW Local 352 announced his scheduled departure from the BWL for a position with the IBEW as an International Representative. He noted that there have been leadership changes at the BWL over the last several years and hopefully, they now has a team in place that will lead the company into the future. Mr. Davis advised everyone of the importance of having a good relationship between management, City Council and city leaders, as they are all charged under City Council and the City of Lansing. He also spoke about the importance of the Ad Hoc committee and the relevance of the work before them, i.e. training and technical committees. He went onto note that the BWL has a good program in place with good leaders. Commissioner Rios further advised that there is a good working relationship between the Board of Commissioners and management. He sees everything as positive and very optimistic. In addition, the Board of Commissioners is presently planning a joint retreat with key management staff to establish objectives. 11. Pending Litigation. Mr. Lark directed City Council to the materials that were contained in the meeting packet. 12. Other.

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Calvin Jones. City Council congratulated Calvin Jones on his recent promotion to Manager of Governmental Relations. They also thanked him for his hard work and efforts in responding to their questions and concerns. Streetlights. Councilmember Woods reported streetlights out on Mt. Hope Avenue between S. Cedar and Martin Luther King Jr. Boulevard. She also inquired into the BWL’s strategic plan for streetlights, as one light out can make a huge difference in a neighborhood. Mr. Lark reported that Dick Peffley is in the process of developing a program in which to monitor all of the streetlights and change out those that are older in existence. Special Thanks. Councilmember Woods thanked the Board of Commissioners and staff for condolence cards and contributions made in honor of her mother’s passing. Compact fluorescent lamps (CFL’s). Councilmember Dunbar reminded everyone that although CFL’s are energy efficient they are not recyclable. It is important to advise customers that they are mercury-based light bulbs that save electricity but cannot be tossed away in the same fashion as traditional light bulbs. She also suggested either placing a sub-depository at either the BWL or the City Recycling Station to allow for easy and proper disposal of CFL’s. Welcome. Councilmember Quinney welcomed Peter Kramer to the Board of Commissioners. He also announced and invited persons to participate in the upcoming American Diabetes 5k Walk scheduled for Saturday, October 6th at Oldsmobile Park at 9:00 a.m. The meeting adjourned at 1:24 p.m. The report will be filed with the minutes of the March 25, 2008 Board meeting.

Joint Meeting of the Board of Water and Light Commissioners

and Lansing City Council February 18, 2008

City Council President Brian Jeffries called the meeting to order at 8:55 a.m. The meeting was held in the Regency I Room of the Radisson Hotel, 111 N. Grand Avenue, Lansing, Michigan. Commissioners Present: Robert Cochran, Tony DeLuca, Joseph Graves, Semone James, Peter Kramer, Frank Lain, Julee Rodocker and Sandra Zerkle. Absent: None. Councilmember’s Present: Kathy Dunbar, Eric Hewitt, Brian Jeffries, A’Lynne Robinson and Carol Wood. Absent: Councilmember’s Sandy Allen, Tim Kaltenbach and Derrick Quinney. BWL Staff Present: General Manager J. Peter Lark, Chief Financial Officer Susan Devon, Executive Director of Operations Dick Peffley, Executive Director of Strategic Planning and Development George Stojic, Director of Internal Audit Susan Pifer, Director of Engineering

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Doug Wood, Manager of Governmental Relations Calvin Jones and Corporate Secretary Rhonda Jones. IBEW Local 352 Representatives Present: Business Manager Ron Byrnes and Assistant Business Manager Jim Dravenstat-Moceri. City Staff Present: Mayoral Chief of Staff Jerry Ambrose and Legislative Office Manager Terese Horn.

The purpose of the joint meeting was to present an update to City Council on the following topics: 1. Update on CSO Project. General Manager J. Peter Lark gave a brief overview of the CSO Project in which it was noted by Mayoral Chief of Staff Jerry Ambrose that the Board of Water and Light (BWL) would enter into a memorandum of understanding should both entities agree that the BWL would take on some of the CSO work. The BWL would also determine if there is a need to hire additional employees for this particular project. In addition, Commissioner Cochran advised that his objective was to ensure that the BWL hires new employees to work with existing staff members to help maintain the BWL’s skilled labor force when the existing workforce retires. 2. Update on Strategic Planning. Mr. Lark reported that Executive Director of Operations George Stojic is currently working on an integrated resource plan that would address strategic planning. The BWL currently forecast an annual electric growth rate of 1.4% over twenty years. The Mayor and City Council has expressed interest in city growth, i.e. Accident Fund, Police Triangle, etc. As such, the BWL hopes to meet load growth with renewables and energy efficiencies. There is a need for the BWL to determine a way to service its customers reliably and effectively by 2018. The BWL must also determine its options relative to reliance on MISO, building a plant or partnering with Consumers Energy (CE) who has extended an offer to the BWL to buy into their new plant. In addition, the BWL plans to develop a Lansing area citizens group to receive community input. In response to Council questions, Mr. Lark noted the following: Eckert Station Offline - The BWL does not intend for Eckert Station to come offline for a

long time because it can still run Units 4-6. The primary concern resides with Units 1-3 and the need to determine a course of action under new environmental rules by 2018.

Green Power and the Strategic Plan – The BWL will rollout an energy efficiency program

fall 2008. The BWL’s renewable program requires $.03 more per kWh, which is inexpensive. However, staff is working to bring that cost to $.01 to $.01 ½ per kWh. The BWL’s green power cost is relatively the same as CE. However, even with those costs BWL’s total rates including green power costs are below CE’s normal rates by approximately 25%. It was also clarified that if the BWL does not sell all of its green power then it must absorb the cost. However, the BWL hopes that the new program will increase participation and offset some of the absorption cost. In response to a Councilmember’s suggestion to spread the cost over the entire customer base, Mr. Lark noted that utility

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companies do not typically act in such a manner. The primary reason being a customer’s reluctance to pay for a service that they did not request. Therefore, the BWL is working to reduce the cost and thereby, increase overall involvement.

Patty Ache Bill – The BWL does not have a position on the Patty Ache Bill. 3. Update on Water Bonds. In response to Council’s question regarding the acceleration of the lead line program, Mr. Lark noted that the BWL is ahead of schedule and already accomplishing said task. Council inquired about the fly ash pit clean up and the timeline to have said project completed. In response Director of Engineering Doug Wood noted that the BWL recently awarded bids for the contract. Therefore, City Council should start to see the clean up project move forward in 2008. The BWL is also working with the Drain Commissioner and the Department of Environmental Quality regarding an easement. 4. Update on Ottawa Station/Phoenix Project. Mr. Lark noted that construction of the new chilled water facility slated for Pine and Allegan is scheduled to begin fall 2008. He confirmed that the BWL would work with multiple entities such as, the CSO Project, Lansing Community College and Ottawa Station to coordinate traffic issues during the construction period. In response to a Council question, it was verified that there is intent to have a Project Labor Agreement in place for the Ottawa Station Project. 5a. Update on Tree Trimming. In response to Council’s question regarding the tree trimming process, staff advised that the BWL has a total of seven (7) trucks. Only those homes directly affected are notified of pending tree trimming work. The BWL is in the process of listing the designated areas and upcoming schedule on its website. Commissioner Lain suggested that the BWL and the City of Lansing consider placing both respective tree trimming schedules and parameters on the public access television channel. Staff also confirmed that the City’s tree trimming crew is available to the BWL. Wright Tree Service does not have exclusive rights to the BWL’s tree trimming work. In addition, it was also suggested that the BWL and City of Lansing coordinate efforts to minimize the number of tree trimming trips to the same respective areas. 5b. Update on Lead Line Replacement Program. It was reported that the BWL is ahead of schedule in replacing lead service lines. As of January 2008, approximately 5,100 (40%) were replaced with an expectation that the BWL will have completed approximately 5,600 (43%) by fiscal year end. This schedule will place the BWL head of schedule by approximately 100 services. In response to a Council question regarding foreclosures and access, staff noted that the increased rate of home foreclosures has slowed the process. However, the BWL can typically locate a contact person to gain access into the basement of a home in order to complete the lead service replacement.

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6. Update on Power Plant Replacement. See item number 2. 7. Update on Financials. Mr. Lark gave a brief financial update in which he noted a 2.48% rate of return effective six months year ended December 31, 2007. However, BWL policy requires a 4% return on assets. The initial fiscal year 2007-08 budget was relatively stringent, resulting in cost overruns. Commissioner Cochran also advised and the General Manager concurred, that deferred maintenance issues based on past management practice has caused unscheduled budgeted items to development. Chief Financial Officer Susan Devon advised that one of the financial issues involves the transfer of funds from the Defined Benefit (DB) to the Retiree Benefit Plan and Trust (VEBA). Recent market changes have affected the assets value. Therefore, staff must wait and see what happens with the market, as funds must be transferred to the VEBA plan. 8. Update on Ad Hoc Committee on Workforce Development. Staff reviewed information provided in the meeting handout that gave an overview of the BWL’s efforts regarding the following: First Step Program – High school to work based learning program Joint Technical Training Committee – The committee is in the process of developing a

centralized technical training program for staff throughout the BWL Anti-Harassment Policy Training – All BWL employees are scheduled to partake in anti-

harassment training from December 2007 through February 2008. Substance Abuse Awareness Training Integrated Management Team Development Training Diversity Council – Created by the General Manager in 2007, the council will propose a

diversity plan and plan of action to the Board of Commissioners. The council will also create an advisory panel during the third quarter of 2008.

9. Update on BWL Rules of Procedures. The Board of Commissioners advised City Council that the BWL’s Rules of Procedures is awaiting final approval by City Council. As such, the Board requested an update on its status. In response after brief discussion, Council President Brian Jeffries noted that City Council would take up the matter in approximately 2 weeks and requested that a BWL representative be present at the meeting if possible. 10. Other. Parliamentary Training. Commissioner James, Board Chair advised City Council that the Board of Commissioners is scheduled to attend parliamentary training at the BWL. As such, she extended an invitation to City Council to receive training in this area if interested. Secretary Jones will advise Legislative Office Manager Terese Horn of the training date once confirmed. Electric Supply. In reference to electric generation, Commissioner Lain noted that the primary difference in electric generation is the supply side. It is better for the BWL and its future to control the source of its electric generation.

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Quarterly Meetings. Council President Brian Jeffries noted and the General Manager agreed that the quarterly joint meetings are very beneficial. In addition, Mr. Lark welcomed City Council to contact for any reason, he advised new council members to schedule a BWL plant tour at their convenience. Dye Water Plant. In response to Council questions regarding water plant tours, Executive Director of Operations Dick Peffley advised that there are plans in the works to reopen the water plant for future tours. There being no further business the meeting ended at 9:58 a.m. The report will be filed with the minutes of the March 25, 2008 Board meeting.

EXECUTIVE COMMITTEE March 13, 2008

The Executive Committee of the Board of Water and Light met at the Executive Offices, Lansing beginning at 5:10 p.m. on Thursday, March 13, 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 (5:20 p.m.) were also present. Absent: None Public Comments There were no public comments. Commissioner Retiree Appreciation Discussion Executive Committee members suggested that the Board of Commissioners consider different Commissioner retiree appreciation gifts in lieu of the traditional honoree dinner held upon retirement from the Board of Commissioners. Estimates for various suggested gift items were handed out to committee members as sample gift ideas. The suggestions included dinner and a movie, dinner and a Wharton Center show, and overnight stays at the English Inn, Great Wolf Lodge, Mackinaw Island, or the Soaring Eagle Hotel. After brief discussion, the Executive Committee agreed that the gift options were good ideas provided that the respective commissioner receives the option to make their own gift choice. The committee also agreed to make the retiree appreciation gift retroactive to former Commissioner Santiago Rios in lieu of the honoree dinner. The gift would not exceed an amount of $500.00; and the Corporate Secretary is responsible for designating the monetary split for the respective gift certificate, i.e. dinner and hotel stay, dinner and Wharton Center event, etc. It was further advised that the gift certificate should not be intended for alcoholic purchases. On motion by Commissioner Cochran, seconded by Commissioner Rodocker to form a resolution to move the item to the full board for consideration.

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Action: Carried unanimously. Budget Updates: Board of Commissioners, Internal Auditor and Corporate Secretary It was advised that Santiago Rios and Robin Smith no longer sit on the Board of Commissioners. As a result, the balance of their budgeted miscellaneous monies were allocated to new Commissioners based on ward appointment for the remainder of fiscal year 2008 for responsibility area (RA) 108. Susan Pifer Director of Internal Director confirmed that she did not anticipate overages for RA 106. It was also confirmed that a large portion of money would be spent utilizing the services of Plante & Moran. There being no further discussion, the meeting adjourned at 5:23 p.m.

Respectfully submitted, Semone M. James, Chair Executive Committee The report will be filed with the minutes of the March 25, 2008 Board meeting.

COMMITTEE OF THE WHOLE March 13, 2008

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 Thursday, March 13, 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, Semone James, Frank Lain and Julee Rodocker. Absent: Commissioners Peter Kramer and Sandra Zerkle. Public Comments There were no public comments. Customer Satisfaction Survey Andrew Morrison of Market Strategies International (MSI) presented the results of the Lansing Board of Water and Light (BWL), 2007 Annual Customer Satisfaction Survey dated March 2008. MSI has performed customer satisfaction surveys for the BWL since 1978. They also conduct similar surveys for approximately 50 other utilities including Detroit Edison. The results were positive and the report contains specific results relative to various questions. It was noted that customers relate to utility companies depending on their household characteristics or demographics of the service area. The surveys objectives include the following.

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Trend the Board’s overall satisfaction level and customer perceptions of the utility’s performance on various activities and relationships.

Assess the utility’s communications and community involvement activities, and the impact of customer awareness and reactions to media coverage of the Board.

Provide the Board with a utility industry benchmarking perspective on the utility’s performance.

This type of survey is typically used by utility managers to identify relative strengths and weaknesses and to help determine future activities to address customer need and concerns.

It was noted that there is a large education gap regarding consumer’s knowledge of the environment, renewables, alternative technologies and its impact on the utility industry. It is believed that one of the responsibilities of the industry is to educate the public regarding these issues. Reliability versus cost is a tradeoff and it would be beneficial for consumers to have that understanding. It was further advised that using the BWL Connections Newsletter to inform customers of changes is one of the best channels for direct contact. There is good readership and it is an important vehicle to utilize in sharing information with customers. Those who are regular or occasional readers of Connections generally are much more positive toward the BWL than those who do not read it. The newsletter demonstrates the BWL’s ability to preserve the level of positive response. The BWL is generally in the 1st quartile of the benchmarking summary compared to the national residential benchmarking database. The BWL has sustained its 1st quartile status position for nearly 30 years, which is a great accomplishment. It was further advised that once customers get past the rate perception then they are primarily concerned about reliability and customer service. Therefore, one must maintain positive responses in those areas. In response to a Commissioner question, Mr. Morrison noted that the BWL can build on its perception of care about the community by continuing its long-term program of events and activities that involve community issues. Examples of such items include economic development, school sponsorships, and community partnerships. It was suggested that community events such as, Adopt-A-River develop a strategic plan similar to what is done for generation or customer service in order to gain leverage. By way of Commissioner recommendation, it was suggested that the survey be included in the Connections Newsletter to expand the sample size. However, in response to the suggestion Mr. Morrison noted that it would be difficult to scientifically blend together a scientific pole with a volunteer random pole. It was recommended that Connections maybe useful in obtaining customer ideas or suggestions. However, it could not be weighted properly to give the proper scientific results. Summaries of the survey findings are presented below. The Board continues to perform well with regard to customer evaluations, with no particular

weaknesses of note. There are several topics that Market Strategies discusses with all of its utility clients in terms

of sustaining a positive relationship with customers: Rate moderation and effective communication to help customers understand why rate

increases occur, when they do occur; Strong, consistent, error-free operating performance;

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Attention to economic circumstances; Environmental and energy efficiency plans and activities; and Using communication channels and messaging effectively to support and sustain the positive

relationship or mitigate problems or concerns. A complete copy of the Lansing Board of Water and Light, 2007 Annual Customer Satisfaction Survey dated March 2008 is available in the office of the Corporate Secretary. Proposed Diversity Plan Susan Devon, Chief Financial Officer (CFO) introduced the proposed diversity plan and members of the Inclusion and Equity Diversity (IED) Council that included Cheval Breggins, Calvin Jones, Amy Ranno and Tracy Tolbert. The purpose of amending the corporate diversity policy is to enhance diversity prospects at the BWL. It was noted that the former corporate diversity policy is no longer in place due to Proposal 2. Therefore, staff requested that the amended policy be adopted to move forward as a foundation for the diversity plan. The IED Council gave an overview of the Inclusion and Equity Diversity Action Plan that included the following topics: Organizational Assessment Survey, Interviews and Reporting Developing the Inclusion and Equity Diversity Plan Developing the Diversity Advisory Panel Training and Communications Diversifying the Workforce and Community Outreach The Commissioners commended the IED Council for an impressive presentation and encouraged them in their efforts regarding diversity. They also noted their concern regarding vendor and contractor diversification and wanted staff to ensure that those parties are also addressed in the ongoing action plan and program. In addition, the Commissioners advised staff that they do not want the project to fall through the cracks and they would also like to see it as a sustainable budgeted line item. In response to Commissioner questions, staff noted that they are seeking the growth and development of a diverse pool of suppliers, which is noted in the policy. It is also the BWL’s goal to reflect the community that it serves. Although, a timeline was not included in the presentation materials the IED Council is considering a 5-year plan. Staff also noted that the organizational assessment survey, interviews and reporting, which will be conducted by Public Policy Associates will cost $15,000. On motion by Commissioner James, seconded by Commissioner Cochran, the Committee of the Whole agreed to move the proposed resolution to amend the Corporate Diversity Policy to the full board for consideration. Action: Carried unanimously.

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STEP – School to Training & Employment Program Dallas Burdick, Education and Training Administrator gave an overview of the BWL’s School to Training and Employment Program (STEP). The purpose of the newly developed program is to expose local area high schools students to careers in the utility industry. The BWL has partnered with Ingham Intermediate School District, Eaton Intermediate School District, Lansing School District, Clinton County RESA, and Lansing Community College in developing the parameters for said program. The BWL also consulted with the Department of Labor and Capital Area Michigan Works. IBEW Local 352 is also involved in the program in that it agreed to provide eight (8) bargaining unit employment opportunities to assist with the program in helping to meet the BWL’s needs for skilled labor. The program will target sixteen (16) participants of which eight will be offered full time employment at the programs end, and the other eight will be awarded $1,500 scholarships to Lansing Community College to help further their education. The Commissioners expressed support for the program and its intended purpose. They also asked staff to ensure that at risk students and those without parental involvement have opportunity to participate. The Commissioners suggested that students receive education regarding workplace expectations, i.e. dress. They also expressed concern regarding the diversity of the positions being offered and the potential male to female ratio. It was suggested that staff consider partnering with other entities including parochial schools and the Art of Leadership program. The Commissioners also noted the need to ensure that there is adequate funding in the budget to support the program. In addition, the Commissioners asked IBEW Local 352 Assistant Business Manager Jim Dravenstat-Moceri to consider expanding the number of bargaining unit positions made available to the program. In response to the request, Mr. Dravenstat-Moceri advised that he would discuss the request with Executive Committee, as future retiree potentials could allow the bargaining unit to expand the number of available positions. Update on Bonding Susan Devon, CFO gave a brief update regarding the Tenth Supplement Revenue Bond resolution passed at the January 29, 2008 board meeting. On February 8, 2008, rating agencies, Moody’s and Standard & Poor’s affirmed the BWL’s bond ratings. Moody’s affirmed the BWL’s Aa3 rating and Standard & Poor’s affirmed the BWL’s AA- rating. As such, the BWL submitted a qualifying standalone statement on February 13, 2008 to the Michigan Department of Treasury (MDOT) based on its own financial statements not including that of the City of Lansing. As a result, MDOT determined that the BWL is in material compliance with criteria in section 303(3) of Public Act 34 of 2001 and authorized the BWL to issue municipal securities without need for its further approval. MDOT’s approval thereby allows the BWL to move forward with the bond issuance as scheduled. The Preliminary Official Statement will be distributed to the public on March 12, 2008 and the BWL expects to move forward with a competitive bidding process on March 19, 2008. Resolutions Honoring Retired Commissioners On motion by Commissioner Cochran, seconded by Commissioner James, the Committee of the Whole agreed to forward the resolutions Honoring Retired Commissioners Gary Calkins, Santiago Rios and Robin Smith to the full board for further consideration.

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Action: Carried unanimously. There being no further business, the meeting adjourned at 7:16 p.m.

Respectfully submitted, Julee M. Rodocker, Chair Committee of the Whole

The report will be filed with the minutes of the March 25, 2008 Board meeting.

FINANCE COMMITTEE March 20, 2008

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 Thursday, March 20, 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, Semone James and Peter Kramer. Commissioner Frank Lain, alternate committee member was also present. Absent: None Public Comments There were no public comments. Proposed Rate Restructuring (Senior Citizen Customers) Bill Aldrich, Manager of Finance and Planning gave an overview of the proposed Rate Restructuring for Senior Citizen Customers. The proposed change recommends a basic service charge reduction of $2.00 effective July 1, 2008, which would result in a subsidy of $60,231. However, if the reduction were $4.00 then it is estimated that the subsidy would cost approximately $120,000. If approved by the Finance Committee then the proposed rate restructuring would require a public hearing be held on May 22, 2008. It was also noted that any rate reduction significantly higher than what was recommended would require subsidies from other ratepayers. The rate change would effectively move the breakeven point from to 570-kilowatt hours to 620-kilowatt hours (kWh). Therefore, a senior citizen rate customer would benefit on this rate provided they average 620 kWh or less per month. It was further noted that approximately 1,800 persons are currently on the senior rate with an estimated 8,000 – 9,000 senior citizens in the BWL’s territory. Staff also noted that the rate change information would be communicated to the general public via the Connections Newsletter. The Finance Committee discussed the proposal and obtained understanding from staff regarding its impact and implications of the breakeven point. It was suggested that staff communicate the percentage decrease of the rate restructuring to allow for better appreciation of the proposal.

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On motion by Commissioner James, seconded by Commissioner Kramer, the Committee of the Whole moved the proposed Rate Restructuring for Senior Citizen Customers to a Public Hearing to be held on May 22, 2008 at 5:30 p.m. Action: Carried unanimously. Mini SOX & Internal Controls Update Susan Pifer, Director of Internal Audit gave a high level update of Mini SOX and Internal Controls. A Enterprise Risk Management, Internal Controls Steering Committee handout entitled, “Building A Foundation” was provided to committee members during the meeting. It was also advised that Plante & Moran are onboard and documentation will be put in place for the benefit of internal and external auditors. The project objectives for SOX Risk Assessment and Pilot Scoping are listed below. Project Objectives Compliance with new risk assessment standards (SAS 104 – 111) or the “Spirit of SOX” Perform risk assessment for significant financial statement accounts and related business

processes Develop methodologies for documenting and testing internal controls for key business

process and sub-processes The Finance Committee commended Ms. Pifer for pushing the topic forward due to its importance relative to internal controls. Commissioner Cochran also suggested that board members attend the APPA conference class regarding SOX standards if possible as the class was very informative. On motion by Commissioner Cochran, seconded by Commissioner James, the Committee of the Whole approved board member SOX training scheduled for May 15, 2008. Action: Carried unanimously. SAP Controls Assessment Audit Manager John Nobis of Plante & Moran noted that they presented their SAP Control findings to management, noted their agreement and how they plan to move forward. In response to a Commissioner question, Ms. Pifer noted that the SOX project is not dependent on SAP. Therefore, it is not necessary for all of the SAP modules to be in place to proceed. In addition, bound copies of the SAP Control Assessment dated March 2008 were scheduled for distribution following the meeting. Internal Auditor Update & Organizational Review No discussion took place regarding this matter. Please see committee packet materials for details. Other Commissioner Retiree Appreciation Gifts. The Finance Committee discussed the proposed resolution regarding Commissioner Retiree Appreciation Gifts. The discussion centered on

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technical requirements and the public appearance of providing such a gift. Some thoughts concerning the proposed resolution included the appearance of compensation, the elimination of a social opportunity for staff and board members to mingle, the need to issue a 1099 form and the ethics policy. During discussion, it was suggested that the Board honor the Commissioner(s) prior to the end of their appointment. Therefore, the Commissioner(s) would receive a complimentary BWL watch and dinner prior to their exit from the Board. Another suggestion included allowing exiting Commissioners the opportunity to invite former Commissioners or staff members to participate in their respective honoree dinner. After further discussion, the Finance Committee took the following action: On motion by Commissioner Cochran, seconded by Commissioner James moved the proposed resolution for Commissioner Retiree Appreciation Gifts to the full board for consideration. Action: The motion carried by the following vote. Yeas: Commissioners Cochran, Graves and James. Nays: None Abstain: Commissioners Kramer and Lain. In response to a Commissioner question, Charles Moore of C.L. Moore & Associates advised that the gift certificate would be considered compensation regardless of the amount because it is not an expense. The honoree dinner however would not be considered compensation. It was also confirmed that the threshold for a 1099 is $599.00. Following brief discussion, the Finance Committee took the following action: On motion by Commissioner James, seconded by Commissioner Lain, to revisit the topic at the April 2008 Committee of the Whole meeting after due diligence has been completed by the Director of Internal Audit, General Counsel and C.L. Moore & Associates. The proposed resolution will not be moved to the full board at this time. Action: Carried unanimously. There being no further business, the meeting adjourned at 4:58 p.m.

Respectfully submitted, Joseph E. Graves, Jr., Chair Finance Committee

The report will be filed with the minutes of the March 25, 2008 Board meeting.

MANAGER’S RECOMMENDATIONS Resolution 2008-3-1 A. Amend the Corporate Diversity Policy

WHEREAS, the Lansing Board of Water and Light, the customers we serve, and our service areas include a broad spectrum of individuals with diverse backgrounds, cultures and experiences;

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WHEREAS, the Lansing Board of Water and Light is more than water, electricity, steam, and chilled water; we are hometown people working together to improve the quality of life in our community;

WHEREAS, the Lansing Board of Water of Light is committed to becoming an industry leader in hiring, promoting, and retaining diverse and resourceful employees who will ensure stronger partnerships with our customers, our communities, and our legislators;

WHEREAS, on October 30, 2007 the General Manager announced a new strategic diversity initiative for the Lansing Board of Water and Light that will embrace the diverse backgrounds, cultures and experiences of our current and future employees, recognize their inherent strengths, and allow us to work together as we become the most diversified and successful utility company in the nation;

WHEREAS, diversity is a vital component of the Lansing Board of Water and Light’s future business success by attracting and retaining a talented workforce, boosting creativity, improving the work environment, and creating a positive image and reputation within the community we serve;

WHEREAS, a critical step in the development and implementation of a diversity program is the adoption of a corporate diversity policy;

RESOLVED, that the Board of Commissioners recognizes and values the unique backgrounds and perspectives of the BWL’s workforce and wishes to promote, integrate, implement and evaluate a variety of diversity initiatives that better serve our employees, customers, and our community and therefore;

FURTHER RESOLVED, that the Board of Commissioners adopt the proposed Corporate Inclusion, Equity and Diversity Policy;

CORPORATE INCLUSION, EQUITY, AND DIVERSITY POLICY

As a public utility, the Lansing Board of Water & Light (BWL) recognizes the importance of inclusion, equity, and diversity among its workforce, suppliers, and in the communities that it serves.

BWL generates its revenues from a broad cross-section of rate-payers, representing a diverse community of people. In recognition of that fact, and in recognition of the importance of diversity to the BWL and its rate-payers, the BWL will aggressively support the growth and development of a diverse pool of suppliers, applicants, and employees, with the intent of making opportunities available to all genders, ethnic groups, races, sexual orientations, socio-economic statuses, ages, physical abilities, religions, and localities.

BWL’s goal, under corporate diversity, is to create an environment which values inclusion, equity, and diversity as enhancements to the products and services it offers to its ratepayers.

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The General Manager, or a designated representative, shall establish a diversity program consistent with this policy.

-------------------- Motion by Commissioner Cochran, seconded by Commissioner Lain, to approve the Amended Corporate Diversity Policy. Action: Carried unanimously. Resolution 2008-3-2 B. Senior Citizen Rate Restructuring

WHEREAS, the rate schedules of the BWL were subject to a general increase of 7% for the electric utility effective March 1, 2008, a general increase of 7% for the water utility effective March 1, 2008, and a general increase of 6% for the steam utility effective March 1, 2008 for electric, water, and steam consumption on or after March 1, 2008; and

WHEREAS, the general rate increase of 7% is also applied to Rate Schedule No. 21, the BWL’s electric senior citizen rate; and

WHEREAS, other Michigan utilities provide special senior citizen electric rate schedules with larger discounts than are offered under the current BWL senior citizen rate; and

WHEREAS, public comments support larger discounts for the BWL’s senior citizen rate schedule; and

WHEREAS, a $2.00 reduction in the monthly service charge under the BWL’s Rate Schedule No. 21 electric senior citizen rate would provide a larger discount for customers utilizing BWL’s senior citizen rate, and will bring the discounts available under the BWL’s senior citizen rate closer to comparable rates provided by other Michigan utilities.

RESOLVED, that a proposed $2.00 reduction in the monthly service charge for Rate Schedule No. 21, the BWL’s electric senior citizen rate, 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 sets the date of Thursday, May 22, 2008, at 5:30 p.m. for a public hearing to solicit public input on the proposed $2.00 reduction in the monthly service charge for Rate Schedule No. 21. 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 April7, 2008, information regarding the proposed rate decrease with an effective date of July 1, 2008.

ELECTRIC: Residential Senior Citizen – Rate 21 (Attachment A)

--------------------

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Motion by Commissioner Kramer, seconded by Commissioner Cochran, to approve the Senior Citizen Rate Restructuring. Discussion: In response to Commissioner James question regarding the percentage effect of the rate reduction, General Manager Peter Lark noted that he could not give the exact number. However, the average senior on Rate 21 typically has a 20% lower bill than their residential neighbors. Therefore, with the new restructured rate it would add an additional 9% reduction off of the already reduced rate. Commissioner James also advised that she hopes staff will take the opportunity to enlist more senior customers on the program and they will publicize that the BWL is trying to help senior customers in this area. Action: Carried unanimously.

UNFINISHED BUSINESS None.

NEW BUSINESS None.

RESOLUTIONS

Resolution 2008-3-3 BOARD OF WATER AND LIGHT

RESOLUTION HONORING GARY CALKINS

WHEREAS, it is a pleasure to extend this expression of our thanks and best wishes to Gary Calkins for his service as a Commissioner of the Board of Water and Light; and WHEREAS, Gary Calkins was appointed to the Board of Commissioners on February 23, 2004 as an At-Large Commissioner. He served on the Finance Committee, Human Resources Committee, Nominating Committee and, Executive Committee during his term as a Commissioner; and

WHEREAS, Gary Calkins’ past employment with the State of Michigan and his service

in numerous community organizations such as the Landlord’s Association of Mid Michigan, Old Newsboys, Camp Highfield, Lansing Symphony and Lansing Jaycees all contributed to enhancing the quality of life at the Board of Water and Light and the best interest of citizens, business, and industry in Lansing; and

WHEREAS, on behalf of his colleagues, employees of the Board of Water and Light and the citizens of Lansing, we offer our sincere gratitude for the time, energy, and talent he devoted as a Commissioner of the Board of Water and Light.

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RESOLVED, That the members of this body hereby honor and commend Gary Calkins upon leaving this Board with over three years of distinguished service. In Regular Session this 25th day of March 2008, we wish Gary success in all his future endeavors and many years of well-deserved enjoyment on the golf course.

BOARD OF COMMISSIONERS

__________________________________ Semone M. James, Chair

__________________________________ Julee M. Rodocker, Vice Chair

__________________________________ Robert W. Cochran

___________________________________ Peter W. Kramer

__________________________________ Tony DeLuca

__________________________________ Frank Lain

__________________________________ Joseph E. Graves, Jr.

__________________________________ Sandra Zerkle

Motion by Commissioner Zerkle, seconded by Commissioner Cochran, to approve the resolution honoring former Commissioner Gary Calkins. Discussion: Commissioner James commended former Commissioner Gary Calkins on his years of service and positive contribution to the Board of Water and Light. She also acknowledged the appreciation dinner held in his honor. Action: Carried unanimously.

Resolution 2008-3-4 BOARD OF WATER AND LIGHT

RESOLUTION HONORING ROBIN M. SMITH

WHEREAS, it is a pleasure to extend this expression of our thanks and best wishes to Robin M. Smith for her service as a Commissioner of the Board of Water and Light; and WHEREAS, Robin M. Smith was appointed to the Board of Commissioners on September 23, 2002 as a Third Ward Commissioner. This Board wishes to acknowledge her many contributions to the Board of Water and Light, the City of Lansing and its citizens; and

WHEREAS, Robin served on the Finance, Executive and Nominating Committees and as

an alternate on the Human Resource and Ad Hoc Committee on Workforce Development. She also served as the Board Chair during fiscal years 2004, 2005, and 2006; and

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WHEREAS, Robin is a teacher with the Lansing School District in the areas of language arts and literacy, and was previously employed by the Michigan State Chamber of Commerce; and

WHEREAS, Robin is a lifelong resident of Lansing whose commitment to service in her community is demonstrated through a rich history of personal involvement.

RESOLVED, That the members of the Board of Water and Light Commissioners hereby honor and commend Robin M. Smith upon leaving this Board with over five years of distinguished service. In Regular Session this 25th day of March 2008, we sincerely wish Robin continued success in all her endeavors.

BOARD OF COMMISSIONERS

__________________________________ Semone M. James, Chair

__________________________________ Julee M. Rodocker, Vice Chair

__________________________________ Robert W. Cochran

___________________________________ Peter W. Kramer

__________________________________ Tony DeLuca

__________________________________ Frank Lain

__________________________________ Joseph E. Graves, Jr.

__________________________________ Sandra Zerkle

Motion by Commissioner Kramer, seconded by Commissioner Zerkle, to approve the resolution honoring former Commissioner Robin Smith. Action: Carried unanimously.

Resolution 2008-3-5 BOARD OF WATER AND LIGHT

RESOLUTION HONORING SANTIAGO RIOS

WHEREAS, it is a pleasure to extend this expression of our thanks and best wishes to Santiago Rios for his service as a Commissioner of the Board of Water and Light; and WHEREAS, Santiago Rios was appointed to the Board of Commissioners on June 14, 2004 as an At Large Commissioner. This Board wishes to acknowledge his many contributions to the Board of Water and Light, the City of Lansing and its citizens; and

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WHEREAS, Santiago served on the Human Resources Committee, Executive Committee, Finance Committee, Ad Hoc Committee for Workforce Development and Board Chair from July to November 2007; and,

WHEREAS, Santiago practiced law in Michigan and Illinois, served as Senior Vice President for Sosa, Bromley, Aguilar & Associates, a national marketing and advertising firm, and as Assistant Attorney General, Mr. Rios serves as General Counsel for the Michigan Department of Community Health; and

WHEREAS, Santiago is a founding member of the Julian Samora Research Institute at Michigan State University, and has served as a member of the City of Lansing Human Relations and Community Services Board, and as chairperson of the Capital Area Cesar E. Chavez Commission for five years; and

RESOLVED, That the members of the Board of Water and Light Commissioners hereby honor and commend Santiago Rios upon leaving this Board with three years of distinguished service. In Regular Session this 25th day of March 2008, we sincerely wish Santiago continued success in all his endeavors.

BOARD OF COMMISSIONERS

__________________________________ Semone M. James, Chair

__________________________________ Julee M. Rodocker, Vice Chair

__________________________________ Robert W. Cochran

___________________________________ Peter W. Kramer

__________________________________ Tony DeLuca

__________________________________ Frank Lain

__________________________________ Joseph E. Graves, Jr.

__________________________________ Sandra Zerkle

Motion by Commissioner Cochran, seconded by Commissioner Kramer, to approve the resolution honoring former Commissioner Santiago Rios. Discussion: Commissioner Cochran advised of his great respect and growing friendship with former Commissioner Santiago Rios. It was noted that Mr. Rios contribution to the board was good, important and informed. Commissioner Cochran noted that he was sorry Mr. Rios is no longer here but he applauded his service to the BWL. Commissioner James echoed Commissioner Cochran’s sentiments. She also advised that she had a great deal of respect for Mr. Rios and his contributions to the BWL. He always came well

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prepared and she believed that he enjoyed being chair. Commissioner James noted that she missed Mr. Rios and wishes him well in his future endeavors. Action: Carried unanimously.

MANAGER’S REMARKS Peter Lark noted that the BWL is consistently honored for its utility and community service work. The BWL recently received a Circle of Honor Award from the Capital Area United Way. The award recognizes the BWL’s many years of funding and it’s in kind support. In addition, the Arbor Day Foundation nationally recognized the BWL along with 148 other utilities in last weeks Wall Street Journal. Each year the Arbor Day Foundation gives out Tree Line USA awards. In order to win recognition a utility must meet the following requirements: provide a program of quality tree care, conduct annual worker trending, utilize quality tree care practices, and maintain a tree planting and public education program. Adopt-A-River Day is April 26, 2008 in which the BWL will give Lansing area families a chance to adopt hundreds of trees. Each family will receive an adoption certificate with their respective tree. This project will bring greater attention to the need to plant more trees in our community and the BWL can be proud of its efforts to promote tree planting and tree care.

COMMISSIONERS’ REMARKS Commissioner Zerkle commended staff for their work on the School to Training and Employment Program (STEP) that was a part of the initiative under the Ad Hoc Committee. The project seems to be growing and she is impressed with the forward movement of trying to encourage young people in areas aside from 4-year college programs. Commissioner James echoed Commissioner Zerkle’s comments regarding STEP and commended staff on the program. She also noted that the Board of Commissioners looks forward to working with staff on all of their future initiatives. In addition, Commissioner James also commended former Commissioner Robin Smith for her valuable contributions as a board member. Ms. Smith was the Board Chair for three fiscal periods and is now the Chair of the Lansing Community College Board of Trustees. Commissioner James noted that Ms. Smith will be missed and wished her the best as well.

EXCUSED ABSENCES On motion by Commissioner Lain, seconded by Commissioner Cochran, to excuse the absence of Commissioner Joseph Graves. Action: Carried unanimously.

PUBLIC COMMENTS

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Tracy Tolbert, BWL employee and member of the Inclusion and Equity Diversity Counsel noted that she was proud to represent the union on this respective committee. She also noted that she attended a diversity summit at the Kellogg Center that addressed various things that the BWL is currently leading. The seminar noted the 3 A’s of diversity that include the following: 1) assess what we have, 2) articulate where we as an organization are going and what value is placed on diversity, and 3) action. Action must take place after the assessment, which she believes is going to occur. Ms. Tolbert further advised that she is proud of the BWL and thanked the Board of Commissioners on behalf of the union, the BWL, and the community.

ADJOURNMENT On motion by Commissioner Cochran, seconded by Commissioner DeLuca, the meeting adjourned at 5:54 p.m. /s/ Rhonda Jones, Corporate Secretary Filed with Lansing City Clerk April 2, 2008xfsfc