McCloudy days at BWL

“Mayor Bernero continues to have confidence in Mr. McCloud’s ability to represent the citizens of Lansing on the BWL board and he will continue to serve until further notice,” Hannan said in a statement to City Pulse. He confirmed Bernero expects McCloud will serve another four-year term without City Council’s approval.

Last week, City Pulse reported that McCloud’s reappointment was in jeopardy, after three city Council members expressed concerns about his communication skills.

The mayoral move has set up a showdown over control of the BWL — something that has been brewing for over a year. Bernero had proposed using city money to finance an auditor general post that could oversee budget operations at BWL, but the Council rejected that proposal earlier this year.

Also at play is whether to sell BWL. Bernero said in May he will ask the Financial Health Team, under the leadership of former Mayor David Hollister, to review the option.

The city has millions in unfunded pension obligations that will come due and could cause havoc with the budget. The sale of the BWL — if the price is right — could net the city enough to not only settle those obligations, but put millions into city coffers. The catch? It’s a one-time influx of cash and could mean higher bill for the utility’s customers.

Now Bernero and City Council will square off over appointment and reappointment powers.

Once a person has been appointed to a committee or board in the city, with the approval of City Council, the appointee can serve until the mayor revokes the appointment or the person resigns, Hannan said. He said the City Charter gives them that authority.

At-large Councilwoman Carol Wood disagrees, noting that the resolution by Council to appoint McCloud four years ago has expired. Under the charter, the mayor has 60 days to put someone forward, she said. If he doesn’t, the City Council can form a three-person committee to identify, screen and select an appointment, she said.

“Rest assured that if he doesn’t put someone forward in 60 days, I will be the first person to make a motion to create a committee,” Wood said.

McCloud was one of seven members of the eight-member board to give former General Manager Peter Lark a positive review last July — only months after a catastrophic ice storm crippled the utility’s operations. That storm left as many as 40 percent of the utility’s customers without power in subzero weather for days.

But then in January, McCloud joined four other members to dismiss Lark “for cause.” Lark filed suit challenging his firing and could have recovered nearly $1 million in salary. In May, McCloud joined a unanimous board in paying Lark $650,000 to settle the suit, which alleged the former executive was not fired for cause, but politics.

And while McCloud´s reappointment was being used as a political football, he was not the only Lansing resident up for appointment to the BWL. Attorney Ken Ross, a former state assistant attorney general under Frank Kelly and Jennifer Granholm, was approved to replace outgoing Commissioner Cynthia Ward. Ward chose not to seek reappointment, citing employment changes as her reason.

Ross, who is the chief operating officer and vice president of the Michigan Credit Union League, comes to the post with 25 years of experience working in and around government in Lansing. He served as director of the Michigan Office of Financial and Insurance Regulation.

“Generally my impression is that the BWL is at the center of the community,” said Ross. “It is the center of economic development and living in the community. My hope is to improve that relationship with the community with whatever I can contribute to the board.”

And while McCloud’s reappointment appears to have failed over concerns about his communication skills, Ross said he is ready to deepen the communication with the community and the City Council.

Ross said he is willing to meet with any group that invites him and provide updates on the BWL.

As for communications with the Council, he said it was going to be a twoway street.

“There is a desire there to have more communication between the board and the council,” Ross said. “I think the goal of that is to make sure there are no surprises. I think I heard loud and clear that there is a desire for better communication.”

Ross will serve a four-year term representing the entire city.