Regular Meeting

Board of Public Works

August 16, 2016

The regular meeting of the Board of Public Works Commission was held at the BPW Administrative Office, 350 E. Washington Avenue, on Tuesday, August 16, 2016. Chairperson Boerman called the meeting to order at 3:30 p.m.

PRESENT: Commissioners –Boerman,Hamstra, Query, Dykstraand Cooney

ABSENT: Commissioners–None

Staff present: General Manager Cook,Electric Operations Manager Mullerand City Clerk Jipping

Motion was made by Commissioner Hamstra and seconded by Commissioner Queryto approve minutes of the July 19, 2016 meetings. Motion carried.

The Board reviewed the financial statements and the cash disbursements for the month ofJuly, 2016.

16.37Approve Cash Disbursements and Regular Monthly Transfers

Motion was made by CommissionerQueryand seconded by Commissioner Hamstrato approve the Julycash disbursements and the regular monthly transfers for the month of August, 2016 as follows:

Electric Water

Receiving (260,712) (149,667)

Accumulated Debt Service - 24,967

Plant Improvements and Contingency 220,900 124,700

General Fund (per charter provision) 39,812 -

Motion carried.

Electric Operations Manager Muller reviewed the Electric Department report and updated the Board on the Electric projects.

General Manager Cook reported that the BPW received a request to extend a water main to serve a new development on 84th Avenue in Zeeland Township within the Act 425 water service area. $150,000 was included in the FY 2017 budget to fund this extension. Two bids were received with the low bidder being Al’s Excavating Inc. of Hamilton at a cost of $117,800for the water portion. Including contingency and administrative costs of $17,780 the total project budget is proposed at $135,580.

16.38Approve bid for 84th Avenue Water Main Extension

Motion was made by Commissioner Hamstra and seconded by Commissioner Query to award the installation of the 84th Avenue water main to Al’s Excavating Inc. of Hamilton MI and approve the project budget of $135,580.00. Motion carried.

Manager Cook explained that the BPW participates in the wholesale power market through the MPPA. If these energy purchases extend for a period longer than one month it requires approval of the BPW Power Purchase Committee and if they extend a year or more, require BPW Board and Zeeland Council approval. He reviewed the energy purchase with price commitment from 2017-2021.

Periodically the BPW through MPPA solicits energy purchase proposals to populate any open position in the BPW Energy Portfolio. This quarterly plan provides a review of the BPW energy portfolio for the past three months and provides forecasts and recommendations for the future. Based on this information along with the Energy Risk Management requirements it is recommended that the BPW commit to purchase certain amounts.

16.39Power Purchase Recommendation

Motion was made by Commissioner Hamstra and seconded by Commissioner Cooney to approve the resolution authorizing the BPW General Manager, subject to necessary approvals having been obtained from the Zeeland City Council, to commit to the purchase of the following:

Short Term annual 7x24 firm energy product of: Up to 1.4 MW’s at an average price not to exceed $38.00/MWh for calendar year 2017; up to 1.0 MW’s at an average price not to exceed $38.00/MWh for calendar year 2018; up to 4.8 MW’s at an average price not to exceed $39.00/MWh for calendar year 2019, up to 7.5 MW at an average price not to exceed $39.00/MWh for calendar 2020.

Motion carried.

Manager Cook reported that on August 15, REVEL, the company developing a new BPW Logo and brand strategy presented their designs to the BPW Internal Committee. The Board was updated of the progress made at that meeting and were shown a sample of the basic concept that may be tweaked some. The Board liked the design and were in favor of staff proceeding.

Manager Cook reported that the objectives approved at the last meeting were revised and he explained the revisions.

Motion was made and carried that the Tuesday, September 20, 2016 Regular Board of Public Works meeting be rescheduled to Tuesday, September 13.

Upcoming Events:

  • BPW Meeting – September 20, 2016
  • MPPA Meeting - September 14, 2016 - Lansing
  • MMEA Meeting - September 15, 2016- Lansing
  • MMEA Fall Conference – October 4 – 6, 2016 @ Holland Double Tree Hotel, Holland

Motion was madeand supported that the meeting be adjourned. The meeting adjournedat 4:15p.m.

Karen Jipping, City Clerk