regular board - may 12 2020 - civicweb
TRANSCRIPT
A REGULAR MEETING
Of The
TRAVERSE CITY LIGHT AND POWER BOARD
Will Be Held On
Tuesday May 12 2020
At
515 PM
In The
VIRTUAL MEETING
Meeting to be Held Remotely due to Coronavirus Outbreak and in the Interest of the Public Health
Safety and Welfare
Anyone wishing to give public comment will need to call in and wait in a virtual waiting room where
their microphones will be muted until they are called upon Directions to participate are below and
located at the following link httpswwwtclporgDisplayitemDetailsItem424
Participating Members of the Public Members of the public that wish to give public comments have
several options Attendees joining the meeting will be muted by default and will not have the ability to
unmute Muting and Unmuting Attendees will be handled by the Host and Co-Host Public Comment is
limited to three minutes The following options are available for Public Comment
Option 1 Attendee can utilize the ZOOM application by downloading on their smartphone tablet or
computer The ZOOM Webinar ID for the meeting is 498-915-060 The ZOOM link is
httpszoomusj498915060 Upon attendance through ZOOM they can utilize the Zoom ldquoRaise Handrdquo
feature to indicate they have a public comment The Host of the meeting will muteunmute the Attendees
microphones as necessary during Public Comment
Option 2 Attendees can direct dial into the meeting by utilizing the following Toll-Free Numbers 877 853
5257 or 888 475 4499 There are two options for Attendeersquos that directly dial in to give Public Comment as
follows
Option 2a The Attendee can send a text or email to PublicCommenttclporgprior or during the meeting
PublicCommenttclporgis the method for the public to contact Board members Attendee should provide
their phone number and name in the text or email along with the item they would like to give Public
Comment on This information will allow the Host to select that Attendee to unmute their microphone for
Public Comment After the Public Comment the Host will re-mute the microphone again
Option 2b The Host will announce that all microphones for remaining Attendeersquos that have not yet given
Public Comment will be unmuted to allow for Public Comment We ask that you remain respectful and
attempt to go in an ordered fashion and to only unmute your microphone to speak and re-mute your
Page 1 of 55
microphone after you are done speaking or your time has passed When you are speaking you will be asked
to must provide your Name and Address an if you are a TCLampP customer before proceeding with Public
Comment however it is not required to make public comment
Due to the high number of users utilizing remote meeting platforms you may experience delays or difficulties
in calling in or accessing the online meeting platform TCLampP will make reasonable efforts to ensure the
platform is open and accessible before conducting a remote meeting Please contact TCLampP by phone or
email if you experience any difficulty in accessing the conference call meeting
Non-Participating Members of the Public (Audio Only) Members of the public that do not wish to give
Public Comment are advised to tune in and listen to the meeting either on local Channel 191 or streaming
online here at httpswwwtacmtvgovtvnowasp
Compliance with American Disabilities Act Traverse City Light and Power will provide necessary
reasonable auxiliary aids and services such as signers for the hearing impaired and audio tapes of printed
materials being considered at the meeting to individuals with disabilities at the meetinghearing upon notice
to Traverse City Light amp Power Individuals with disabilities requiring auxiliary aids or services should
contact the Light and Power Department by writing or calling the following
Jennifer St Amour
Administrative Assistant
1131 Hastings Street
Traverse City MI 49686
(231) 932-4543
Posting Date
05082020
300 PM
Page 2 of 55
Light amp Power Board May 12 2020
Regular Meeting
AGENDA
Page 1 Roll Call a Consideration of amending the Board Rules of the Traverse City Light and
Power Board (Taylor) TCLP-20-040 - Pdf
5 - 10
2 Disclosure of Recusal 3 General Public Comment 4 Consent Calendar
The purpose of the consent calendar is to expedite business by grouping non-
controversial items together to be dealt with by one Board motion without discussion
Any member of the Board staff or the public may ask that any item on the consent
calendar be removed therefrom and placed elsewhere on the agenda for full
discussion Such requests will be automatically respected If an item is not removed
from the consent calendar the action noted in parentheses on the agenda is approved
by a single Board action adopting the consent calendar
a Approval of Agenda b Consideration of approving minutes of the regular meeting of April 14 2020
(Approval recommended) MINUTES - Regular Meeting 41420 Final
11 - 14
c Receive and file minutes of the HR Ad Hoc Committee meeting of April 9
2020 (Approval recommended) HR Ad Hoc Committee Meeting 4920
15
d Consideration of approving an amended City of Traverse City On Peak
Demand Reduction Program Policy (Arends) TCLP-20-041 - Pdf
16 - 17
5 Unfinished Business
None
6 New Business a Consideration of approval for Joint Use of Pole Attachments Inventory (Dixon)
TCLP-20-038 - Pdf
18
b Consideration of scheduling a Public Hearing at the June 2020 regular meeting
for the Renewable Electric Energy Rider Rate Change (Voluntary Green
Program) (Myers-Beman) TCLP-20-039 - Pdf
19 - 20
7 Reports and Communications a From Legal
Page 3 of 55
b From Staff 1 FTTP Update (Menhart) 2 Presentation by Venture North for the Commercial Energy Waste
Reduction Loan Program (Galbraith) TCLP-20-042 - Pdf
21 - 29
3 COVID-19 Financial Impact Update and Cost Savings Measures
(ArendsMyers-Beman) TCLP-20-043 - Pdf
30 - 46
4 March 31 2020 Financial Statements
TCLP-20-044 - Pdf
47 - 55
c From Board 1 Chairmans Report 8 Public Comment a General Public Comment 9 Adjournment
Page 4 of 55
To
Traverse City Light and Power Board
From Tim Arends - Executive Director Meeting Regular Board - May 12 2020 Subject
Amendment of Board Rules
At the last board meeting the following changes were introduced 1 Changes to board rule number two - Order of Business and Agenda for Regular Meetings
-Adding General Public Comment before Consent Calendar 2 Changes to board rule number five - Consent Calendar
-Not allowing the public to remove consent calendar items during meetings conducted remotely 3 Changes to board rule number eleven - Public Comment
-Not allowing public comment at each agenda item during meetings conducted remotely
In summary the changes mentioned above allows for the Board to have public comment at the beginning and the end of the meeting instead of at each agenda item allowing for an efficient way to handle public comment during the meetings that are conducted remotely Included in the packet are the final changes for your review If the Board agrees with the changes the following motion would be appropriate MOVED BY________________________ SECONDED BY __________________________ THAT THE BOARD AUTHORIZES THE AMENDMENT OF BOARD RULE NUMBER TWO - ORDER OF BUSINESS AND AGENDA FOR REGULAR MEETINGS BOARD RULE NUMBER FIVE - CONSENT CALENDAR AND BOARD RULE NUMBER ELEVEN - PUBLIC COMMENT TO ALLOW FOR PUBLIC COMMENT AT THE BEGINNING AND THE END OF EACH MEETING CONDUCTED REMOTELY
Page 5 of 55
Page 1 of 5
RULES OF THE TRAVERSE CITY LIGHT AND POWER BOARD
Adopted July 28 1998Amended February 8 2011 Rule 11
Amended July 22 2014 Rule 2Amended November 11 2014 Rule 1
Amended March 14 2017 Rule 1Amended October 10 2017 Rule 2
Amended __________ 2020 Rule 2 5 and 11
1 Regular Meetings Regular meetings of the Light and Power Board shall be held on the second Tuesday of every month with the fourth Tuesday of every month reserved for potential Special Meetings at 515 PM in the Commission Chambers of the Governmental Center 400 Boardman Avenue Traverse City
2 Order of Business and Agenda for Regular Meetings The order of business and agenda for regular meetings of the Board shall be as follows
1 Roll Call
12 General Public Comment (only during remote participation
meetings)
23 Disclosure of Recusal
34 Consent Calendar
a Approval of the Agenda
4 Unfinished Business
5 New Business
6 Reports and Communications
7 Board and Public Comment
Unless there is an objection by a Board member the Chairman may alter the order of business
3 Agenda and Packets A written agenda and a packet of supporting materials shall be prepared by the Executive Director for every regular meeting and shall be completed and released for delivery to the members of the Board not later than 500 PM on the Monday immediately preceding the date of said regular meeting
Page 6 of 55
Page 2 of 5
4 Special Meetings and Special Business Special meetings may be called by the Chairman or any two (2) Board members or by the Executive Director upon 18 hours posting and advance written notice to all Board members Special meetings shall consider only such matters as are specified in the notice of the meeting unless all voting members are present and a motion is passed pursuant to these Rules Unless there is an objection by a Board member the Chairman may alter the order of business
The Board may direct by a majority vote that any matter may be made the special business of a future meeting and the same shall have precedence over all other business at such meeting
5 Consent Calendar
A When the Executive Director determines that any item of business requires action by the Light and Power Board but is of a routine and non-controversial nature the Executive Director may cause such item to be presented at a regular meeting of the Light and Power Board as part of a Consent Calendar
B The Consent Calendar shall be introduced by a motion to approve the Consent Calendar and shall be considered by the Light and Power Board as a single item
C There shall be no debate or discussion by any member of the Light and Power Board regarding any item on the Consent Calendar beyond asking questions for simple clarification
D On request by any Light and Power Board member staff or member of the public present to inclusion of any item on the Consent Calendar that item shall be removed from the Consent Calendar During remote participation by members of the public members of the public may not remove items from the Consent Calendar Such request may be recorded at any time prior to the taking of a vote on the motion to approve the Consent Calendar All such items shall be considered individually at a place on the agenda determined by the Presiding Officer
E Approval of the motion to approve the Consent Calendar shall be fully equivalent to approval adoption or enactment of each motion resolution ordinance or other item of business thereon exactly as if each had been acted upon individually
6 Presiding Officer The Chairman shall preside at all meetings and in the absence of the Chairman the Vice-Chairman shall preside If both the Chairman and the Vice-Chairman are absent the Secretary shall call the Board to order and shall preside until a
Page 7 of 55
Page 3 of 5
presiding officer is chosen If the Secretary is absent a majority of the Board then present shall select a Presiding Officer
7 Rules of Order The most current and authorized edition of Robertrsquos Rules of Order shall govern the conduct of meetings unless modified by these Rules The Presiding Officer shall decide all questions arising under these Rules and general parliamentary practice subject to appeal which appeal shall be determined by a majority of the members present In the event an appeal is taken by any member from the ruling of the Presiding Officer the member of the Board desiring to appeal shall state that he claims an appeal from the ruling of the Presiding Officer and shall state briefly what in his opinion the ruling should have been If this appeal is seconded the Presiding Officer shall state clearly the question at issue and shall then call for the vote of the Board on the question ldquoShall the decision of the Presiding Officer be sustainedrdquo The Presiding Officer shall preserve order and decorum and may speak to points of order in preference to other questions The Presiding Officer may express an opinion on any subject under debate without the substitution of another Presiding Officer
8 Motions Every motion or resolution shall require a second before being put to a vote and it shall not be debated until it shall be reduced to writing if requested by the presiding officer or any member but it may be withdrawn at any time by the movant with consent of the second before decision or amendment No motion to reconsider shall be entertained unless made by a member voting with the majority
9 Amendment of Agenda at Regular Meetings At a regular meeting and as the first item after Roll Call any official or officials of the Department acting as such may ask orally or in writing that a certain matter or matters be added to the agenda for consideration by the Board at that meeting By motion that the matter or matters in question be added to the agenda of that meeting passed by the concurring vote of not less than four (4) Board members the matter or matters may be added to the agenda under an appropriate order of business and may be considered at that regular meeting
10 Amendment of Agenda at Special Meetings At a special meeting and as the first item after Roll Call any official or officials of the Department acting as such may ask orally or in writing that a certain matter or matters not appearing in the notice of that meeting as posted and released for delivery to the members of the Board be considered by the Board at that meeting By motion that the matter or matters in question be considered at that meeting passed by the concurring vote of not less than five (5) Board members any such matters may be considered at that special meeting
11 Public Comment The Light and Power Board welcomes public comment and has prescribed the following to facilitate the conduct of public business
Page 8 of 55
Page 4 of 5
A Public Comment during Agenda Items At any regular or special meeting any interested person may address the Board on any agenda item if recognized by the Presiding Officer or upon request of any Board member Except during meetings in which members of the public are meeting remotely For any agenda item requiring action of the Board at that meeting other than the Consent Calendar the Presiding Officer shall before any final vote is taken ask for and conduct public comment on that agenda item Any interested person may address the Board on any matter of Department concern during the agenda item designated Public Comment The comment of any member of the public or any special interest group may be limited in time as provided in subsection (E) As part of its deliberation the Board may clarify answer questions and ask questions as a result of public comment
B Public Comment during the designated Public Comment Section ndash Reserved Any interested person or special interest group wishing to address the Board for a reserved time shall submit a written request to the Executive Director no later than Tuesday 500 PM the week immediately preceding the date of said regular meeting The communication shall (1) identify the writerrsquos name and address and (2) identify with reasonable specificity the subject matter The same shall appear on the written agenda under the designated ldquoPublic Commentrdquo section for said regular meeting as made available to the news media and released for delivery to the Board All persons must identify themselves and will be asked their address and to direct their comments to the Board The comment of any member of the public or special interest group may be limited to 15 minutes except as provided in subsection (E) Questions posed may be answered at the meeting or may be referred to staff for response at a later time
Reserved time shall be limited to one (1) per meeting and shall appear on the written agenda A TCLampP ratepayer or city taxpayer shall take precedence over a non-TCLampP ratepayer or non-city taxpayer request In such case the non-TCLampP ratepayer or non-city taxpayer request shall be postponed and placed on the written agenda of a future meeting as selected by the non-TCLampP ratepayernon-city taxpayer In no case shall the non-TCLampP ratepayernon-city taxpayer request be postponed more than one time in favor of a TCLampP ratepayer or city taxpayer If more than one (1) request is received per meeting the requests shall be considered in the order they were received subject to the above procedure
C Public Comment during the designated Public Comment Section ndash General Any interested person wishing to address the Board regarding other matters may do so under the designated Public Comment section All persons must identify themselves and will be asked their address and to direct their comments to the
Page 9 of 55
Page 5 of 5
Board The comment of any member of the public or any special interest group may be limited in time as provided in subsection (E)
D Public Comment during the designated Public Comment Section ndash Board Chair and Board Members The Board Chair and other Board Members interested in making a public comment may do so under the designated Public Comment section Further the Board Chair and Board Members may briefly respond for clarification purposes as a result of public comment
E Order and Duration of any Public Comment The comment of any member of the public or special interest group may be limited in time by the Presiding Officer The Presiding Officer shall have the authority to limit and terminate any public comment that becomes disruptive unduly repetitive or impedes the orderly progress of the meeting The Presiding Officer shall control the order and duration of any public comment subject to appeal
12 Suspension of Rules The Rules may be suspended on the vote of five (5) members The Rules may be amended by a majority vote of the members elect at a meeting held after the meeting at which the amendment was proposed
13 Executive Director Spending Authority The Executive Director shall have authority to expend up to one-tenth of one percent (01) of current budget year total expenses per transaction involving the acquisition and disposal of personal property pursuant to City Charter Section 179(a) without the necessity of Board approval or securing competitive bids Such authority shall also supply to the acquisition of services in furtherance of Light and Power activities
Page 10 of 55
TRAVERSE CITYLIGHT AND POWER BOARD
Minutes of Regular MeetingHeld at 515 pm
A regular meeting was called to order remotely as authorized by the Executive Order of the Governor
Tuesday April 14 2020
Board Members -
Present John Taylor Elysha Davila Ross Hammersley Amy Shamroe Tim Werner Paul Heiberger Pat McGuire
Absent None
Ex Officio Member -
Present Marty Colburn City Manager
Others Tim Arends Karrie Zeits (Legal Counsel) Karla Myers-Beman Scott Menhart Kelli Schroeder Daren Dixon Tony Chartrand Jacob Hardy
Karrie Zeits (Legal Counsel) addressed the Board regarding amending the Board Ruleswith the suspension of Board Rules 11(a) and 5(d)
Moved by Shamroe seconded by Heiberger to amend the agenda for discussion of suspension of certain board rules
Yes Amy Shamroe Patrick McGuire Elysha Davila Paul Heiberger John Taylor Tim Werner Ross HammersleyAbsent None
CARRIED 7-0 on a recorded vote
Moved by Hammersley seconded by Shamroe that the Light amp Power Board will suspend during the Coronavirus Pandemic Board Rule 11(a) to remove public to comment on each agenda item and Rule 5 (d) to not allow the public to remove an item from the Consent Calendar
Yes Amy Shamroe Patrick McGuire Elysha Davila Paul Heiberger John Taylor Tim Werner Ross Hammersley
Absent None
CARRIED 7-0 on a recorded vote
Moved by Shamroe seconded by Heiberger that the Light amp Power Board allow General Public Comment after Disclosure of Recusal and prior to the Consent Calendar
Yes Amy Shamroe Patrick McGuire Elysha Davila Paul Heiberger John Taylor Tim Werner Ross Hammersley
Absent None
CARRIED 7-0 on a recorded votePage 11 of 55
TCLampP Regular Board Meeting Minutes April 14 2020
Moved by Shamroe seconded by Heiberger that the Light amp Power Board amend the agenda under New Business item (a) introduction of amendments to rules of the Traverse City Light Power Board to facilitate greater public participation in remote meetings held by the Board
Yes Amy Shamroe Patrick McGuire Elysha Davila Paul Heiberger John Taylor Tim Werner Ross Hammersley
Absent None
CARRIED 7-0 on a recorded vote
Item 2 on the Agenda being Disclosure of Recusal ndash None
Item 3 on the Agenda being Consent Calendar
Moved by Hammersley seconded by Heiberger that the following actions as recommended on the Consent Calendar portion of the Agenda be approved
a Approved the Agenda
b Approved minutes of the March 10 2020 Regular Meeting
c Approved minutes of the March 24 2020 Special Meeting
d Approved an Amended and Restated Joint Operating Interconnection Procedure Gray Substation with Wolverine Power Cooperative
e Approved a fourth amendment to the Gosling Czubak Consultant Agreement for phase four of services
f Approved a memorandum of understanding for mutual aid
g Approved a Lease Enforcement Forbearance Agreement with Gold and Jaye Jewelry
Yes Amy Shamroe Patrick McGuire Elysha Davila Paul Heiberger John Taylor Tim Werner Ross Hammersley
Absent None
CARRIED 7-0 on a recorded vote Items Removed from the Consent Calendar
None
Item 4 on the Agenda being Unfinished Business
a Consideration of authorizing staff to negotiations for a purchase power agreement with Next Era Energy to purchase energy from the solar array to be located at the Cherry Capital Airport and negotiations for a lease agreement between the utility and the Northwestern Regional Airport Commission to be considered by the Board at future meetings
Page 12 of 55
TCLampP Regular Board Meeting Minutes April 14 2020
The following individuals addressed the Board
Tim Arends Executive DirectorKarla Myers-Beman Controller
Moved by Heiberger seconded by Hammersley that the Board authorizes the Executive Director to negotiate a Power Purchase Agreement based on the terms described above with Next Era Energy and a Land Lease Agreement with Northwestern Regional Airport Commission for a 10 MW solar generation array to be located at the Northwestern Region Airport Commission with the contracts to be brought back before the Board for final approval
Yes Amy Shamroe Elysha Davila Paul Heiberger John Taylor Tim Werner Ross Hammersley
No Patrick McGuireAbsent None
CARRIED 6-1 on a recorded vote
Item 5 on the Agenda being New Business
a Consideration of an introduction of amendments to the Traverse City Light and Power Board Rules specifically rules 2 5(d) amp 11(a)
The following individuals addressed the Board
Karrie Zeits Legal Counsel
Moved by Shamroe seconded by Davila that the Light amp Power Board institute rules changes as recommended by General Counsel to Board Rules 2 5(d) and 11(a)
Yes Amy Shamroe Patrick McGuire Elysha Davila Paul Heiberger John Taylor Tim Werner Ross HammersleyAbsent None
CARRIED 7-0 on a recorded vote
Item 6 on the Agenda being Reports and Communications
a From Legal Counsel b From Staff
1 Smart Grid FTTP update in relation to COVID-19 and cost expenditure update in relation to the Board approved Fujitsu agreements
The following individuals addressed the Board
Tim Arends Executive DirectorKarla Myers-Beman ControllerScott Menhart Chief Information Officer
Page 13 of 55
TCLampP Regular Board Meeting Minutes April 14 2020
2 COVID-19 Financial Impact
The following individuals addressed the Board
Tim Arends Executive DirectorKarla Myers-Beman ControllerKelli Schroeder Mgr of Human Resources amp Communications
c From Board
Item 7 on the Agenda being Public Comment
a General
The following individuals addressed the Public
None
Moved by Shamroe seconded by Heiberger that the Board Chairman adjourn the meeting
Yes Amy Shamroe Patrick McGuire Elysha Davila Paul Heiberger John Taylor Tim Werner Ross Hammersley
Absent None
CARRIED 7-0 on a recorded vote
There being no objection Chairman Taylor declared the meeting adjourned at 657 pm
____________________________________Tim Arends SecretaryLIGHT AND POWER BOARD
Page 14 of 55
TRAVERSE CITY LIGHT AND POWER BOARD
MinutesHR Ad Hoc Committee
A meeting was called to order remotely as authorized by Executive Order of the GovernorThursday April 9 2020
Committee Members
Present Amy Shamroe (Ad Hoc Chair) Ross Hammersley John Taylor
Others Shannon Hensel Rehmann Robson
The meeting was called to order at 1205 pm by Amy Shamroe
1 Consideration of selecting a Secretary for the duration of the Ad Hoc Committee
Consensus from Committee Amy Shamroe
Absent None
CARRIED 3-0 on a recorded vote
2 Discussion regarding the Executive Directorrsquos Performance Evaluation process
3 Public Comment
None
No one from the public commented
There being no objection Amy Shamroe declared the meeting adjourned at 118 pm
Amy Shamroe ChairpersonLIGHT AND POWER BOARD
Page 15 of 55
To
Traverse City Light and Power Board
From Tim Arends - Executive Director Meeting Regular Board - May 12 2020 Subject
City of Traverse City On Peak Demand Reduction Program Policy
Staff is recommending modifying the City of Traverse City On Peak Demand Reduction Program Policy These modifications include 1) expanding their qualification for reimbursement of project costs by being eligible for a rebate cost with not only Traverse City Light and Powerrsquos energy waste reduction program but
also DTErsquos 2) allow for funds to be available immediately for the project costs and 3) modify the expiration of
funds from two to three years (to prevent 2018 funds from expiring before use) and change the expiration from January 1 to July 1 beginning of the next fiscal year By amending this policy staff will be able to assist the City with current and future proposals of energy waste reduction efforts quicker than the current policy provides This item is appearing on the Consent Calendar as it is deemed by staff to be a non-controversial item Approval of this item on the Consent Calendar means you agree with staffrsquos recommendation If any member of the Board or the public wishes to discuss this matter other than clarifying questions it should be placed on the ldquoItems Removed from the Consent Calendarrdquo portion of the agenda for full discussion If the Board concurs with staffrsquos recommendation the following motion would be appropriate MOVED BY _______________________ SECONDED BY ________________________ THAT THE BOARD APPROVES AMENDING THE CITY OF TRAVERSE CITY ON PEAK DEMAND REDUCTION PROGRAM POLICY EFFECTIVE IMMEDIATELY
Page 16 of 55
Page 1 of 1
Light and Power DepartmentCity of Traverse City MIAdopted May 14 2019Amended
CITY OF TRAVERSE CITY ON PEAK DEMAND REDUCTION PROGRAM POLICY
The Board adopted the Renewable Electric Energy Rider Tariff Rate effective April 20 2018 in accordance with Public Act 342 of 2016 that required all utilities in the State of Michigan to offer to its customers a voluntary renewable energy ldquogreenrdquo rate
In working with the City to achieve their 100 renewable goal the Board would like to dedicate net revenues generated from the Renewable Electric Energy Rider Tariff Rate towards approved City energy waste reduction projects that qualify for a rebate under Traverse City Light and Powerrsquos (TCLampP) andor DTErsquos energy waste reduction program
Ninety-five percent of net revenues will be determined by taking the voluntary green rate revenues generated from all customer accounts less the cost of renewable energy credits purchased from the market
The net revenues will be considered a rebate in addition to the rebate the City may qualify for under the TCLampP andor DTErsquos energy waste reduction program All guidelines of the TCLampP andor DTE energy waste reduction program will be applicable At no time will the combined rebate amount exceed the actual cost of the energy waste reduction project(s) A rebate application to the appropriate utility must be submitted and completed in order to qualify for the net revenues A preapproval assessment must be completed by TCLampP before project begins
Revenues generated from the June 30 fiscal year end will be available immediately for project rebates The funds will expire three years after the end of the fiscal year they were generated beginning January 1st of the following year and will be available for two years After the two years the funds will be considered expired and unavailable
Tim Arends___________________________Timothy ArendsExecutive Director and SecretaryTraverse City Light and Power Board
Page 17 of 55
To
Traverse City Light and Power Board
From Daren Dixon - Operations Manager Meeting Regular Board - May 12 2020 Subject
Contract for Joint Use of Poles Attachment Inventory
Currently Joint Use pole attachment billings are based upon permitted attachments In order to ensure that billings are accurate bids were sent out to 10 companies to perform a physical inventory of all TCLampP-owned poles as well as those foreign-owned poles that TCLampP is attached to be completed by November 30 2020 In addition to capturing all attachments and owners on the pole the successful bidder will provide photos of each pole measure and report clearance violations and will install facility number plates on each pole Only eight of the vendors provided bids as shown below with an extended total based upon the 6577 relevant poles in the TCLampP GIS system
Bidder PricePole Extended Price Alden Systems No Bid No Bid American Energy Services Inc $2200 $14469400 Davey Resource Group Inc $1452 $ 9549804 HDR No Bid No Bid McLean Engineering $1966 $12930382 mPower $1500 $ 9865500 Osmose $2046 $13456542 Timmons Group $1160 $ 7629320 (Low Bid) TWiG Technologies LLC $1523 $10016771 Utility Asset Management $2770 $18218290 The total cost may vary somewhat based upon the count of the poles found during the inventory While not guaranteed it is anticipated that the inventory of attachments could result in additional attachment revenue for TCLampP as it is more likely that unauthorized attachments will have been made as opposed to attachments having been removed without notification Staff recommends awarding the bid to Timmons Group as they are the lowest bidder and present no concerns over their experience in performing this work and properly capturing and relaying the data MOVED BY_____________ SECONDED BY ________________ THAT THE BOARD AUTHORIZES THE CHAIRMAN AND SECRETARY TO EXECUTE A CONTRACT WITH TIMMONS GROUP FOR A JOINT USE OF POLES ATTACHMENT INVENTORY IN THE AMOUNT OF $7629320 MORE OR LESS SUBJECT TO REVIEW AS TO SUBSTANCE BY THE EXECUTIVE DIRECTOR AND AS TO FORM BY GENERAL COUNSEL
Page 18 of 55
To
Traverse City Light and Power Board
From Karla Myers Beman - Controller Meeting Regular Board - May 12 2020 Subject
Voluntary Green Program
Public Act 342 Section 61 (ldquoActrdquo) requires utilities to provide customers the option to participate in a
voluntary green pricing program where customers can specify the amount of electricity provided to the customer that will be generated from renewable energy Part of this Act requires the rate to be reviewed biennially It has been two years since this rate was first calculated Initially staff with consultation from Michigan Public Power Agency (ldquoMPPArdquo) and Utility Financial Solutions LLC mutually agreed the best method to calculate the renewable energy rider tariff was based on marginal cost (the cost of adding one more unit of product) At that time TCLampP only had legacy renewable projects Using the legacy costs would have made the tariff rate expensive and deter from participation in the program Since the inception of the voluntary green program the Pegasus Wind Project and the M-72 Solar II Farm have become operational and providing renewable energy to the utility purchase portfolio The purchase power contract and operation information for these projects was used as the basis for reevaluating the renewable energy electric rider The new rate calculated out to $009 per kWh a very slight increase above the current tariff rate of $0085 per kWh An average residential customer who currently participates 100 in the program will see less than $25 increase to their monthly bill Staff recommends the Board tentatively approve the new renewable energy electric rider tariff rate and set a public hearing for proposed adoption of the rate on June 9 2020 in accordance with Public Act 342 of 2016 If the Board concurs with staffrsquos recommendation the following motion would be appropriate MOVED BY _______________________ SECONDED BY ________________________ THAT THE BOARD TENTATIVELY APPROVES THE NEW RENEWABLE ENERGY ELECTRIC RIDER TARIFF RATE (ldquoRATErdquo) AND SET A PUBLIC HEARING FOR PROPOSED ADOPTION
OF THE RATE ON JUNE 9 2020 IN ACCORDANCE WITH PUBLIC ACT 342 OF 2016 AND FURTHER THAT A NOTICE OF THE PUBLIC HEARING BE POSTED ON THE UTILITYrsquoS
WEBSITE AND PLACED IN THE TRAVERSE CITY RECORD EAGLE
Page 19 of 55
City of Traverse CityLight and Power DepartmentEffective April 20 2018Amended
RENEWABLE ELECTRIC ENERGY RIDER
Availability
The rider is available to customers making use of a TCLampP metered electric rate schedule(s)
Nature of Service
TCLampP will provide green power to system or if needed purchase renewable energy credits per the participant enrollment However TCLampP does not guarantee that the actual electricity delivered to each participantrsquos facility at any specific time will be produced from a green supply resource
Monthly Rate
Customerrsquos electing this premium service option will receive an additional charge per kWh in the amount of $0085 009 for the specified amount of electricity attributable to the customer The customer may elect to have 25 50 75 or 100 of their consumption that will be renewable energy The rate will be modified when new renewable resources are executed by a purchase power agreement or on a biennial basis The amount of kWhrsquos will be based on the availability of resources including renewable energy credits TCLampP is able to secure
Term
All participants electing to sign up for this rider will be enrolled until notification is received to terminate the rider
Page 20 of 55
To
Traverse City Light and Power Board
From Tim Arends - Executive Director Meeting Regular Board - May 12 2020 Subject
Presentation by Venture North for the Commercial Energy Waste Reduction Loan Program (Galbraith)
Please see presentation subsequent to this page provided by Venture North Laura Galbraith will be remotely presenting the annual update to the Board
Page 21 of 55
Traverse City Light amp PowerEnergy Efficiency Loan Fund
May 2020
PresenterLaura Galbraith Executive Director Venture North
Page 22 of 55
What is Venture North
Non Profit CDFI
CDFI Community Benefit
Access to more State amp Federal Capital
Leverage Existing Dollars
Attract Private Investment
Increase Jobs Business Income amp Individual Wealth
Page 23 of 55
Support rural underserved distressed communities
Provide the capital and small business support necessary to create jobs and advance economic prosperity
We serve businesses that without us would not be able to launch or expand
Purpose
Page 24 of 55
Energy Efficiency Impact
Energy Efficiency Projects Funded 15
Total Loans $39484900
Total kWh Saved 1272334
Most projects have a ROI of less than 5 years
All Loans in Good Standing
- No deferments no adjusted loan repayments due to COVID-19
Page 25 of 55
Example ProjectldquoThe Boxrdquo
2 Loans Totaling$23391
Projected kwHSavings35290
Page 26 of 55
Example ProjectThe Greenspire School
Loan $7480 Projected kwH Savings 10139
Page 27 of 55
Loan Fund
Projected Cashflow
COMPANY
PAYMENTS
REMAINING
AS OF
123119
MONTHLY
PAYMENT
ANNUAL
PAYMENT
Projected
Receivables
2O20
Projected
Receivables
2021
Projected
Receivables
2022
Projected
Receivables
2023
Projected
Receivables
2024
TOTAL
COLLECTIONS
2020 -2024
BEGINNING CASH BALANCE - JAN 1 2020 9867003
EAST BAY PLAZA 36 $82950 $995400 $995400 $995400 $995400 $2986200
BRICK WHEELS 12 $33333 $399996 $377730 $377730
LA CUISINE AMICAL 17 $27778 $333336 $333336 $138882 $472218
THREE WEST 35 $15758 $189096 $189096 $189096 $173338 $551530
GTACS 24 $135953 $1631436 $1631436 $1631436 $3262872
VITALIA 1 43 $26488 $317856 $317856 $317856 $317856 $179404 $1132972
VITALIA 2 48 $12497 $149964 $263061 $149964 $149964 $149320 $712309
THE COPY SHOP 21 $13600 $163200 $269600 $111200 $380800
THE GREENSPIRE SCHOOL 59 $12467 $149604 $149604 $149604 $149604 $149604 $137117 $735533
CASH FLOW BY YEAR $4527119 $3683438 $1786162 $478328 $137117 $10612164
PROJECTED CASH AVAILABLE AT THE END OF YEAR $14394122 $18077560 $19863722 $20342050 $20479167
Page 28 of 55
Questions
Laura Galbraith Executive Director Venture North
Email lauraventurenorthfundingorgWebsite venturenorthfundingorg
Page 29 of 55
To
Traverse City Light and Power Board
From Tim Arends - Executive Director Meeting Regular Board - May 12 2020 Subject
COVID-19 Financial Impact Update and Cost Savings Measures
Attached is a presentation on the impact COVID-19 has had on the different customer classes electrical consumption Along with supplementary information on what the utility has done in the past and plan to do in the future in regards to cost savings measures Lastly staff has incorporated a new cash flow projection
Page 30 of 55
COVID-19 IMPACTMay 12 2020 Board Meeting
Page 31 of 55
Impact of kW and kWh consumption by Class
bull Classes have been impacted at different levels with the highest impact to the commercial class
bull Following charts provide information on Trends on residential and commercial classes from March 1
through April 30 using AMI Data Trends on industrial class from February through April 2020
using billing data
Trends on residential and commercial classes compared to consumption from the prior year using AMI Data
Trends on industrial class compared to consumption from prior year using billing data
Page 32 of 55
Residential and Commercial Class from March 1 through April 30 2020
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
2-M
ar
4-M
ar
6-M
ar
8-M
ar
10-M
ar
12-M
ar
14-M
ar
16-M
ar
18-M
ar
20-M
ar
22-M
ar
24-M
ar
26-M
ar
28-M
ar
30-M
ar
1-Ap
r
3-Ap
r
5-Ap
r
7-Ap
r
9-Ap
r
11-A
pr
13-A
pr
15-A
pr
17-A
pr
19-A
pr
21-A
pr
23-A
pr
25-A
pr
27-A
pr
29-A
prMar Apr
Sum of Commercial Consumption
Sum of Residential Consumption
Page 33 of 55
Industrial class kW Demand from February to April 2020 based on actual billing data
Page 34 of 55