HomeMy Public PortalAbout006-2011 - Appointing Appraisers for WhitewateORDINANCE NO. 6-2011
AN ORDINANCE OF THE COMMON COUNCIL OF
THE CITY OF RICHMOND, INDIANA
APPOINTING APPRAISERS TO APPRAISE THE
VALUE OF RICHMOND POWER & LIGHT
WHITEWATER VALLEY TURBINE #2
WHEREAS, the City of Richmond, Indiana owns and operates its own electric utility,
Richmond Power & Light Company (hereinafter "RP&L"), under the supervision and control of
the Board of Directors (hereinafter "Board") of RP&L, under I.C. 8-1.5-3-4; and
WHEREAS, Common Council of the City of Richmond, Indiana (the "Council"), is the
legislative body for RP&L; and
WHEREAS, under I.C. § 8-1.5-2-4 et seq., a municipal legislative body may determine to
sell or otherwise dispose of nonsurplus municipally owned utility property; and
WHEREAS, RP&L operates two coal fired turbines to generate electricity sold into the
wholesale market known as the Whitewater Valley Turbine #1 and Whitewater Valley Turbine
#2, respectively, which constitute nonsurplus property; and
WHEREAS, Whitewater Valley Turbine #1 is a 33 megawatt ("MW") unit and
Whitewater Valley 2 is a 66 MW unit; and
WHEREAS, potential future regulations and market conditions may adversely impact
RP&L's ability to cost-effectively operate its turbines as coal-fired generators for the City's
customers; and
WHEREAS, the Council and RP&L are evaluating leasing or otherwise transferring
Whitewater Valley Turbine #2 to an entity that constructs a municipal solid waste ("MSW")
gasification facility that would power Whitewater Valley Turbine #2; and
WHEREAS, the Council wishes to appoint three appraisers to appraise the value of
Whitewater Valley Turbine #2.
NOW, THEREFORE, be it ordained by the Common Council of the City of Richmond
as follows:
Section 1. The Council finds the following three (3) appraisers (hereafter the
"Appraisers") have the requisite education, technical knowledge and skill to make a proper
appraisal and valuation of Whitewater Valley Turbine #2, are disinterested persons and are not
residents or taxpayers of the municipality:
David Moody
J. Robert Pieper
Joe Kettell
Shaw Consultants
Integrated Power Resources,
Appraisal Economics
International
LLC
Section 2. The Council further finds that the Appraisers identified in Section 1 of this
Ordinance shall be appointed to appraise the value of Whitewater Valley Turbine #2.
Section 3. The Appraisers shall be sworn to make a just and true valuation of the
property by executing the attached affidavit.
Section 4. The Appraisers shall agree on a single report to be provided to the Council
establishing a single value for Whitewater Valley Turbine #2 using appraisal methods consistent
with industry practice.
Section 5. The Appraisers shall prepare a draft of their report for review by the
Council by no later than February 25, 2011.
Section 6. The Appraisers shall submit a final version of their appraisal report to the
Council by April 4, 2011.
Section 7. The fees of the Appraisers shall be paid by RP&L.
Section 8. This ordinance shall be in full force and effect from and after its passage
and approval by the Mayor.
Passed and adopted by the Common Council of the City of Richmond, Indiana, this
7tn _ day of February, 2011.
RICHMOND COMMON COUNCIL
_S/S Diana PWpin President
Diana Pappin
ATTEST: _S/S Karen Chasteen City Clerk
Karen Chasteen
2
PRESENTED to the Mayor of the City of Richmond, Indiana, this _8th day of February,
2011.
S/S Karen Chasteen City Clerk
Karen Chasteen
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this _8th day of
February, 2011.
_S/S Sarah L. Hutton Mayor
Sarah L. Hutton
ATTEST: _S/S Karen Chasteen City Clerk
Karen Chasteen