BLP Takes Steps for Working with the City of Grand Haven on Harbor Island Environmental Remediation
On October 17, 2024, the Grand Haven Board of Light and Power (BLP) passed a resolution which should enable the City of Grand Haven and the BLP to move forward with environmental remediation of Harbor Island and lead to a reconciliation in the relationship.
The relationship between the Grand Haven City Council and the BLP has been strained in recent years due to a multitude of issues. Political power struggles, disagreements over money, and different opinions on how to best deal with problems have seemed unending. There have been allegations some members of the City Council and BLP board worked against the best interests of the BLP and former General Manager David Walters. There have been personal attacks. Attorneys have gotten involved an there have been legal filings. The article, What is going on between the City of Grand Haven and the Board of Light and Power?, along with the timeline below provide an overview of some significant past events.
February 2020 – JB Sims Coal Power Plant on Harbor Island decommissioned
October 2020 - Harbor Island natural gas peaking plant conceptual and architectural plans progressed
December 2020 - BLP discussed environmental clean-up with city
February 2021 - JB Sims demolished
June 17, 2021 – PFAS discovered on Harbor Island
August 2021 - Natural gas peaking plant canceled
January 2022 – BLP agreed to purchase snowmelt boilers for city - verbal agreement loan
January 2022 – City of Grand Haven took lead on Harbor Island clean-up and hired HDR Environmental
March 2022 – Grand Haven City Council mandated all GH entities including BLP use the city attorney
July 2022 - BLP offered City of Grand Haven $16 million to cover Harbor Island environmental clean-up costs, city declined the offer
August 3, 2022 – BLP requested independent legal council before entering into Harbor Island related environment clean-up agreements with the city
August 3, 2022 – Allegations of Sexual Harassment of Andrea Hendrick (later determined unfounded)
December 2022 – City and BLP agreed on terms for snowmelt loan repayment
April 2023 – Board of Light and Power Charter Change Coalition (BLPCCC) ballot proposal announced
September 2023 – Whistleblower claimed BLP acted inappropriately in responding to FOIA requests
November 2023 – Questions of snowmelt loan repayment terms legality arose
The culmination of issues seemed to peak on August 3, 2022. With an increasingly complicated negotiation regarding environmental remediation on Harbor Island between the BLP and the City of Grand Haven on the horizon. Perfluoroalkyl or polyfluoroalkyl substances (PFAS) had been discovered on Harbor Island, and the City of Grand Haven informed the BLP they could no longer have independent legal representation, but would be required to be represented by the city’s group of attorneys, Dickinson Wright. The BLP responded by refusing to approve further funding of the JB Sims site environmental remediation until they had a signed written agreement with the city and were granted independent legal representation. This was accomplished by passing the following resolution (p.77):
THEREFORE, IT IS RESOVED that the Board of Light and Power shall not approve further funding of the Sims site environmental remediation activities which are not directly under contract with the Board, or approve the use of electric operating revenues, electric utility revenue bond proceeds, or electric utility reserve funds for such purpose until a written agreement is drafted and approved by both the Board and the City Council to better define and clarify the roles, responsibilities, and funding obligations for the jointly governed project now led and controlled directly by the City Council and other appointed administrative officers of the City, and limited, if any, review and approval by the Board or involvement by BLP staff; and
BE IT FURTHER RESOLVED that the Board of Light and Power approves and appoints of Varnum as its special legal counsel for utility matters, as it has served in this fashion for over 25 years until February 2022. Varnum will then serve as an agent of the Board and will work with the City Attorney to negotiate and mediate such written agreement between the Board and City Council. The Board will not proceed in development of the written intragovernmental agreement with City Council without legal representation, and until Varnum’s reinstatement by the Board is approved by City Council, which approval has historically been granted as a routine matter with due consideration of the Board’s approval and recommendation.
Over two years later, on October 17, 2024, after joint meetings, changes in board members, and executive leadership, the BLP passed an amendment to the August 3, 2022, resolution (p. 77). The new resolution states:
THEREFORE, BE IT RESOLVED, the Grand Haven Board of Light and Power approves the Harbor Island Approval Procedure to serve as the written agreement between the Board of Light and Power and City Council to authorize funding of the Sims site environmental remediation activities; and
BE IT FURTHER RESOLVED, the Grand Haven Board of Light and Power seeks further discussion with City Council to reach a mutual agreement to resolve the Board’s request for special legal representation within the next six months OR approval of the Harbor Island Approval Procedure may be withdrawn; and
BE IT FURTHER RESOLVED, all parts of the August 3, 2022 resolution in conflict herewith are hereby rescinded.
Addressing costs associated with environmental remediation on Harbor Island is complicated. The JB Sims plant operated by the BLP produced coal combustion residuals (CCR), a known byproduct of coal generation power plants. Discovery of CCR was anticipated and the BLP set-aside $16 million for clean-up efforts. Environmental testing revealed PFAS contamination was also present on Harbor Island. The PFAS contamination likely resulted from when Harbor Island served as the city dump, long before J.B. Sims was constructed. Therefore, both entities are responsible for cleaning up Harbor Island.
On October 17th, in addition to passing the amendment to the August 3, 2022 resolution, the BLP approved a procedure for approving costs associated with Harbor Island remediation. When contamination clean-up is clearly the responsibility of either the BLP or the City of Grand Haven, that entity will cover the costs, but when contamination is mixed, the project manager will present the BLP staff with the proposed scope of work, costs, and rationale for the expenditure and the two entities will work together and negotiate an agreement. In the meantime, the BLP is still requesting approval from the city to obtain independent legal representation. With a complex environmental clean-up effort ahead, it is in the best interests of all parties to work productively together. October’s meeting was a step in the right direction.