Regular Meeting

Board of Public Works

May 17, 2016

The regular meeting of the Board of Public Works Commission was held at the BPW Administrative Office, 350 E. Washington Avenue, on Tuesday, May 17, 2016. Chairperson Boerman called the meeting to order at 3:30 p.m.

PRESENT: Commissioners –Boerman,Query and Cooney

ABSENT: Commissioners–Hamstra and Dykstra

Staff present: General Manager Cook,BPW Accountant Collins, Electric Operations Manager Muller, Electric Engineer DeKrakerand City Clerk Jipping

Motion was made by CommissionerQuery and seconded by Commissioner Cooney to approve minutes of the April 19, 2016regular meeting with correction to April 19, 2016 Action 16.17 “motion seconded by Commissioner Dykstra”. Motion carried.

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

16.25Approve Cash Disbursements and Regular Monthly Transfers

Motion was made by Commissioner Queryand seconded by Commissioner Cooneyto approve the Aprilcash disbursements and the regular monthly transfers for the month of May, 2016 as follows:

Electric Water

Receiving (532,924) (434,267)

Accumulated Debt Service - 24,967

Plant Improvements and Contingency 493,600 409,300

General Fund (per charter provision) 39,324 -

Motion carried.

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

General Manager Cook reviewed the Water Department report and updated the Board on the Electric projects.

BPW FY2017 Electric and Water O & M Budget, Capital Plan and Recommended Rate Increases – Manager Cook reported that on May 2 the Zeeland City Council approved the FY 2017 Electric and Water Budgets and Six-Year Capital Forecasts. There were no changes made to the final “city approved” budgets from the budget drafts that were approved by the BPW Board in April 2016. As such no base rate changes are going into effect in FY2017 for: fire protection, or non-contractual water rates, electric or street light rates. Moreover, there is also no increase in the energy efficiency surcharges.

2015 Energy Efficiency Annual Summary – Manager Cook reported that pursuant to PA 295, the BPW is required to annually report to the Board the status of our Energy Efficiency and Renewable Energy Portfolio Standard compliance. Accountant Collinsreviewed the performance for 2015.

BPW Safety Manual Policy – The BPW is committed to the safety of its employees and customers. Manager Cook reported that staff has established a Safety Program overseen by a Safety Steering Committee consisting of management and non-management employees. The BPW has utilized the Safety Manual published by APPA and adopted it as the basis for its safety program. APPA recognizes that local conditions, laws and regulations may cause some minor conflict to strict adherence to all areas covered and acknowledges that public owned electric utilities such as the BPW has the overall responsibility for interpreting the rules in the Safety Manual. Upon recommendation of the BPW Safety Steering Committee including approval of the BPW General Manager, certain rules may be altered to provide the safest guidelines.

16.26Approve BPW FY2017 Safety Manual Policy Update

Motion was made by Commissioner Query and seconded by Commissioner Cooney that the BPW Board approve the recommended Safety Manual Policy as presented. Motion carried.

PA 95 Public Act 95 of 2013 – Low Income Energy Assistance Fund – Manager Cook reported that for the past three fiscal years, the Board has approved the BPW “Opting Out” of assessing its customers the Low Income Energy Assistance Funding Factor prescribed by the MPSC pursuant to PA 95. As a consequence of opting out the BPW was not permitted to shut off any residential customer from November 1 through April 15 for non-payment. He noted that during this period, the majority of the 40 municipal electric systems in Michigan have also opted out. In conjunction with the BPW “Opt Out” in FY 2014, FY2015, FY2016 and again for FY 2017, the BPW also allocated additional funds for the Community Action Agency to distribute to low income customers. $20,000 each year has been budgeted to be provided to the Community Action Agency, in each of the last three years, less than $5,000 per year was actually distributed.

16.27Approve Zeeland BPW “Opting Out” from the Funding Factor for Upcoming Year

Motion was made by CommissionerQuery and seconded by Commissioner Cooney that the Zeeland BPW “Opt Out” from assessing its customers the funding factor prescribed by the MPSC for the upcoming year. Motion carried.

Renewable Energy Huron Wind Farm

Motion was made by Commissioner Query and seconded by Commissioner Cooney to enter into a closed session to consider material exempt from discussion or disclosure by state or federal statute, namely, to consider a proposal to enter into a contract or agreement as permitted by MCL 15.268(h) and MCL 15.243(i). Motion carried.

Motion was made by Commissioner Query and seconded by Commissioner Query to reconvene the regular meeting. Motion carried.

16.28Authorization to enable the MPPA Huron Wind Farm Purchase

Motion was made by Commissioner Query and seconded by Commissioner Cooney to authorize the BPW General Manager, subject to: 1) sufficient participation to enable the MPPA Huron Wind Farm purchase to proceed; and 2) acceptance by the Zeeland City Attorney to commit to the purchase through the Michigan Public Power Agency of the following: 19.37% (11.796 MW) of all of MPPA’s energy, capacity and environmental attributes under the Agreement with Huron Wind, LLC and be responsible to cover 19.37% of all MPPA’s related financial obligations associated with Huron County, Michigan Wind Energy Facility agreement. Moreover in as much as according to BPW Risk Management Policy, power purchases extending for a period longer than one year must be approved by City Council, it is also requested that the General Manager is authorized to forward a corresponding resolution dealing with this purchase to City Council for consideration. Motion carried.

16.29Alltel/Verizon Fourth Amendment to Lease Agreement

Motion was made by commissioner Query and seconded by Commissioner Cooney to approve the Fourth Amendment to the Lease Agreement with ALLTEL Communications Wireless, Inc. to add included equipment onto the Carlton Water Tank and authorize the General Manager to sign on behalf of the Zeeland Public Works, subject to City Council Approval. Motion carried.

Strategic Plan Update for FY2017

Manager Cook reported that in FY 2013 the BPW adopted a Strategic plan for 2012-2017 and this plan has been reviewed and updated in each of the last three fiscal years and staff reviewed it again for FY2017. Staff suggested some changes to some of the plan dialogue along with some changes to selected goals. Staff reviewed with the Board the suggested updates. The Board accepted the recommendations discussed.

MPIA FY 2017 Memorandum of Coverage, Investments and Budget -

Manager Cook reported that the Michigan Professional Insurance Authority (MPIA) held its 2016 Spring meeting. He reviewed items included in their discussions:

  • The FY2016/17 budget proposal was reviewed and approved.
  • The proposed Memorandum of Coverage for 2016-17 was reviewed and approved with only slight adjustments along with the inclusion of Cyber Liability for Grand Haven.
  • Renewal of the Investment Account Agreement with financial advisors National Bank of Indianapolis extending through 2018 and approval of the 2016 Audit Engagement Letter with Kiekover, Scholma, & Schumacher were completed.
  • MPIA financial and investments were reviewed.

Contract Negotiations with UWUA Local 556 Discussion

Motion was made by Commissioner Query and seconded by Commissioner Cooney to enter into a closed session to consider material exempt from discussion or disclosure by state or federal statute, namely, to consider a proposal to enter into a contract or agreement as permitted by MCL 15.268(h) and MCL 15.243(i). Motion carried.

Motion was made by Commissioner Query and seconded by Commissioner Cooney that the Board reconvene their regular meeting.

BPW Electric Reliability Review

Manager Cook noted that annually staff reviews electric reliability performance with the Board. This review includes a review of reliability metrics and benchmarks, identification of process issues and changes for improvement, along with emergency and outage response activities. Engineer DeKrakerconducted the review with the Board.

Upcoming Events:

  • BPW/City of Zeeland Large Customer Breakfast – May 19, 2016
  • BPW Meeting – June 16, 2016
  • MPPA Meeting – June 8, 2016
  • MMEA Meeting – June 9, 2016
  • APPA National Conference – Phoenix AZ – June 11-15
  • Joint BPW/Zeeland City Council Dinner – June 27, 2016 @ Elbo Room
  • MMEA Fall Conference – October 5 – 7, 2016 @ Holland Double Tree Hotel. Zeeland BPW and Holland BPW will be the host cites.

Commissioner Query reported that the Symphony Orchestra requested that they be allowed to have an insert included in the Utility Bills. The flyer would meet the guidelines. She was asked to discuss with Laurie McGuire and get the specifications for size, etc.

Motion was madeand supported that the meeting be adjourned. The meeting adjournedat 5:14p.m.

Karen Jipping, City Clerk