GRAND HAVEN, Mich. — The Grand Haven City Council approved a resolution Tuesday to initiate an independent investigation into alleged wrongdoing at the Board of Light and Power (BLP).
The move comes after a BLP employee came forward to the city attorney as a whistleblower, accusing their employer of attempting to improperly evade a Freedom of Information Act request.
The resolution was voted on and passed during a Grand Haven City Council meeting on Sept. 18.
BLP is a community-owned electric utility company serving homes and businesses in and around the city of Grand Haven.
It is currently controlled by a five-person board — all of them locally elected.
The resolution to seek out an independent investigation was introduced by Commisioners Ryan Cummins and Karen Lowe after a BLP employee approached the Grand Haven City Attorney on Sept. 5.
According to Commissioner Cummins, the city attorney met with the whistleblower and their attorney for several hours on Sept. 14 to discuss allegations of misconduct at the BLP.
The whistleblower alleged that BLP employees “coordinated an attempt to delete e-mail records” after receiving a Freedom of Information Act (FOIA) request.
The BLP is accused of deleting e-mails to avoid having to turn over messages and documents relevant to the FOIA request.
According to Commissioner Cummins, the whistleblower provided the city attorney with more than 200,000 e-mails.
The allegations allegedly involve members of BLP management and members of their board.
In addition to the allegations surrounding the FOIA request, the BLP is also accused of making “false and misleading statements to its employees” in regards to a proposed amendment to the Grand Haven city charter.
The proposed change, introduced by a local group calling itself BLPCCC, would change the way the BLP is governed.
If approved, the amendment would move management of the BLP from their elected board to the City Council under the City Manager.
The changes would remove the elected city position of Board of Light and Power trustee.
The BLP has distributed information online regarding the proposed amendment.
“The current charter requires the BLP Board to set rates that generate enough revenue required to pay for operating costs. The charter amendment allows the City Council to set rates as it deems advisable, giving it much more latitude to manipulate rates,” an Aug. 29, 2023, post on their website reads.
“While the charter amendment would restrict the City Council from using 'reserve' funds that exist on Jan. 1, 2024, there are no similar safeguards in place for the use of new revenues generated from electric utility services.”
The BLP is also accused of pressuring their employees to “sign a letter, to contribute funds, and to distribute door signs, all opposed to the proposed Charter amendment.”
According to a City Council agenda packet, the city attorney believes that recent BLP presentations and mailers regarding the proposed change “may have included illegal statements under the Michigan Election Law.”
In June, members of the Local 582 UWUA, the union for employees of the BLP, signed a letter opposing the proposed amendment.
“It is our belief this is the wrong move for the customers we serve in our communities. The BLP should stay the way it is with a publicly elected board that serves City of Grand Haven, Grand Haven Township, Spring Lake Township, Robinson Township, & the City of Ferrysburg for 126-plus years,” the union’s letter read.
Another letter signed by 17 employees of the BLP shares a similar sentiment.
“We, the undersigned, firmly believe that placing control of the utility under the Grand Haven City Council and City Manager jeopardizes the utility’s award-winning reliability, low electric rates, and quality of service that our customers currently enjoy,” that letter reads.
Several people spoke Monday during the public comment section of the City Commision meeting.
“I applaud the whistleblower for coming forward, whoever he or she is,” said Jeffrey Miller, a retired Columbus, Ohio, police officer who now resides in Grand Haven.
“The allegations listed against the BLP are extremely serious and warrant a thorough and independent investigation, either by an independent law firm with experience in these matters or by a law enforcement agency.”
Multiple BLP board members spoke at Monday’s meeting as well.
“The BLP takes any whistleblower allegations very seriously. … I personally respect the whistleblower process, both the reporting and the investigation,” Chair Michael Westbrook said during public comment.
“The BLP will appropriately be placing this issue on the Sept. 28 agenda, and I ask City Council and our public to support our open and transparent review of this matter at this time. This is exactly what the Board was elected to do.”
Commissioner Cummins said Wednesday morning that the results of the independent investigation will be released publicly once it has been completed.
The charter amendment will be on the city of Grand Haven’s November ballot.
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