HomeMy Public PortalAbout046-2011 - Ordinance appointing appraisersORDINANCE NO. 46-2011
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF
RICHMOND, INDIANA APPOINTING APPRAISORS TO
APPRAISE THE VALUE OF RICHMOND POWER & LIGHT
WHITEWATER VALLEY TURBINE # IAND #2 ALONG WITH
ASSOCIATED EQUIPMENT AND LEASED PROPERTY
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 a power plant to generate electricity sold into the wholesale
market consisting of two coal fired turbines known as the Whitewater Valley Turbine #1 and
Whitewater Valley Turbine #2, a bag house, cooling towers and other associated equipment (the
"Turbine Generating Equipment"), 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 the
Turbine Generating Equipment to an entity that will construct a refuse derived fuel ("RDF")
gasification facility that would power the Turbine Generating Equipment; and
WHEREAS, the Council and RP&L are evaluating leasing the buildings containing the
Turbine Generating Equipment and ground around the power plant for construction of the RDF
facility (the "Leased Property"); and
WHEREAS, the Council wishes to appoint three appraisers to appraise the value of the
Turbine Generating Equipment and the Leased Property.
NOW, THEREFORE, be it ordained by the Common Council of the City of Richmond
as follows:
Section 1. The Council finds the three (3) appraisers selected by RP&L (hereafter the
"Appraisers") have the requisite education, technical knowledge and skill to make a proper
appraisal and valuation of the Turbine Generating Equipment and the Leased Property, are
disinterested persons, are not residents or taxpayers of the municipality and satisfy the licensing
criteria in I.C. § 8-1.5-2-4:
Section 2. The Council further finds that the Appraisers shall be appointed to
appraise the value of the Turbine Generating Equipment and the Leased Property.
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 should agree on a single report signed by at least two of
the Appraisers to be provided to the Council establishing a single value for the Turbine
Generating Equipment and the Leased Property 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 September 14, 2011.
Section 6. The Appraisers shall submit a final version of their appraisal report to the
Council by September 19, 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
_15th day of August, 2011.
RICHMOND COMMON COUNCIL
_S/S Diana PWpin President
Diana Pappin
ATTEST: _S/S Karen Chasteen City Clerk
Karen Chasteen
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PRESENTED to the Mayor of the City of Richmond, Indiana, this _16th day of August,
2011.
_S/S Karen Chasteen City Clerk
Karen Chasteen
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this _16th day of
August, 2011.
_S/S Sarah L. Hutton Mayor
Sarah L. Hutton
ATTEST: _S/S Karen Chasteen City Clerk
Karen Chasteen