Commission approves charter language to formalize return-on-equity agreement with Board of Water and Light

The Lansing Charter Review Commission approved substitute language to the city charter that would expressly provide for a return-on-equity arrangement between the city and the Board of Water and Light.

Counsel Kristin Rewa told the commission the language (beginning on page 17 of the meeting packet) had been drafted by city counsel, revised with input from the Board of Water and Light, and reviewed by each party—s attorneys. Rewa described the provision as a framework intended to preserve an existing agreement and allow future negotiations under changing circumstances: "The idea with how this is worded is it is more of a framework to allow that to be negotiated based on changed circumstances ... but to make sure that the agreement ... is beneficial to the city and also something that is, workable and beneficial to the BWO."

Commissioners asked clarifying questions about whether the charter previously contained any return-on-equity language; one commissioner observed, "there was really nothing in the Charter describing the return on equity before." Counsel confirmed the substitute is new and had attorney input from all parties.

After a brief discussion commissioners voted to approve the substitute language. Counsel and staff will incorporate the approved language into the charter draft and coordinate with Board of Water and Light counsel to finalize wording.

Ending

Counsel said the approved language will be incorporated into the next charter draft and returned to the commission for review.