Michael Flowers

The agenda for this meeting includes the approval of the Committee of the Whole Meeting Minutes from January 13, 2026. Key discussion items involve an update from the Retirement Plan Committee (RPC), consideration of an alternative platform for Commissioners' Smartsheet Dashboard, and a discussion regarding the next review of the BWL Board of Commissioners Rules of Procedure.

The key discussion topics for this meeting included the review of the Human Resources Committee Minutes from January 20, 2026, consideration of a resolution concerning the General Manager's delegation of authority for the Cafeteria Plan benefit design and administration, a Board Self Survey Evaluation, and reviews pertaining to Appointee Position Descriptions and the Appointee Evaluation Process. The January 20, 2026, meeting addressed public comments regarding the Family Medical Care Plan and a recent Collective Bargaining Agreement between the BWL and IBEW Local 352, and concluded with personnel evaluation discussions for the Director of Internal Audit, including contract extension considerations.

The Finance Committee meeting agenda included the review of the Year-to-Date (YTD) Financial Summary, which incorporates a Capital Report. A significant item involved the revision of the Defined Benefit (DB) Plan Investment Policy Statement, including a presentation on Liability Driven Investing, and the corresponding resolution for the policy change. Additionally, the committee addressed the results of several Internal Audit functions, specifically the FY 2026 IT Audit, Penetration Testing Audit, an Internal Audit Department Structure Review, and the Internal Audit Status Report.

The primary meeting involved numerous resolutions and committee reports. Key discussions centered on the Energy Optimization Plan for 2026-2029, which seeks to reduce energy waste and delay the need for new generating facilities, following state legislation updates. The Board also addressed the First Amendment to the Cafeteria Plan to introduce a Health Savings Account (HSA) feature effective January 1, 2026. Significant attention was given to Special Electric Service Contracts for Large Load Customers and potential membership in the PJM regional transmission organization to secure energy supply for potential large data center customers, with assurances that infrastructure costs would be borne by new customers, potentially reducing forecasted rate increases for existing customers. Finance Committee reports covered the clean audit for FY2025, the initiation of the RFP process for a new external auditor, and a YTD financial summary indicating strong cash on hand. The Pension Fund Trustees reviewed strong funding ratios for the Defined Benefit (DB) and VEBA Plans, along with updates on the DC plans. Resolutions were passed to approve the 2026 Regular Board Meeting Schedule and to authorize the refinancing of existing Utility System Revenue Bonds (up to $340 million) for potential debt service savings. Audits on Disaster Recovery and Payroll processes resulted in several medium-risk findings, with the Payroll Audit leading to a 'Needs Improvement' overall rating.

The Finance Committee meeting agenda included the Year-to-Date (YTD) Financial Summary, which indicated strong revenue performance and expenses under budget, though the Debt to Total Assets Ratio was over the benchmark. Key discussions focused on the Bi-Annual Internal Audit Open Management Response Update, covering findings related to Disaster Recovery and FY2025 Payroll, with management providing timelines for corrective actions. The committee also addressed the External Auditor RFP Bid Award, supporting the recommendation to award the external audit contract for fiscal years 2026 through 2030 to Baker Tilly, subject to City Council approval. Finally, the Internal Audit Status Report detailed ongoing and planned audits, including penetration testing and a billing audit.