HomeMy Public PortalAbout05-13-2013 MEETING IN EXECUTIVE SESSION OF RICHMOND COMMON COUNCIL
SERVING AS BOARD OF DIRECTORS OF RICHMOND POWER AND LIGHT
May 13, 2013
The Board of Directors of Richmond Power and Light met on Monday, May 13, 2013 in the
Conference room at the Service Building at Richmond Power& Light, 2000 U.S. 27 South. Chairperson R.
Bruce Wissel called the meeting to order at 7:02 p.m.
Member's present was Jack Elstro, Larry Parker, Misty Hollis, Phil Quinn, Don Winget, Kelly Cruse-
Nicholson,and Board Chair R.Bruce Wissel. Clay Miller and Ron Oler were absent.Attending from Richmond
Power and Light was General Manager James French and Susan Alexander.
1. Strategic Planning:
Mr. French sent the Board the proposals for the Strategic Planning session. It has been
narrowed down between Prime Group and IU East. IU East's proposal is$6000 and is a traditional strategic
plan with no travel expenses; in addition, they are local.
The Prime proposal is similar to IU East at a cost of$4000 plus travel expenses. They have done
work with Co-operatives and Marty Blake of the Prime Group has done some work for RP&L in the past.
Board member Misty Hollis asked if IMPA has a division that could do a Strategic Plan Session for
RP&L. Mr. French said he wasn't sure, but that he would ask Mr. Raj Rao.
Mr. French's recommendation to the Board is IU East at this point,unless the Board would like for him
to check with IMPA. Cost overall will be very comparable between Prime Group and IU East.
Board member Misty Hollis asked where the monies will come from in the budget,to which Mr.French
said it would come out of the Cost of Service budget. Part of that budget allotment will now carry over into
2014,which will leave funds available in the 2013 budget.
Misty Hollis would prefer to use Prime Group due to their utility experience. The majority of the Board
would prefer Prime Group however,they would like for Mr. French to speak with IMPA and see if there is an
interest, or a possibility,for IMPA to lead the strategic planning session.
2. Cost of Service Study:
Mr. French reminded the Board that Prime Group did a Cost of Service Study in 2005.
Board member Phil Quinn asked if there is a preferred amount of time to do a rate study. Mr. French said
there was no set rule as to how often to do a Cost of Service Study. However when the costs get to 25%of
the base rate cost, it's time to do a rate study.
IMPA can do a Cost of Service Study for RP&L but they cannot meet the time schedule. IMPA
recommended that RP&L contact Prime Group, Umbaugh & Associates, and Heid Rate and Regulation
Services.
All three were contacted with Umbaugh&Associates having the best references. Mr. French would
be comfortable with Prime or Umbaugh. After speaking with attendees at the Indiana Municipal Electric
Association Spring Conference who have used Umbaugh and are completely satisfied, Mr. French would
prefer Umbaugh.
Board member Larry Parker made a motion to contract Umbaugh&Associates to conduct the Cost of
RP&L Board Minutes
Executive Session
May 13, 2013
Page 1 of 2
Service Study. Board member Phil Quinn seconded the motion,all were in favor and the motion carried. The
Cost of Service Study shall run parallel with the Strategic Planning. Mr.French will contact IMPA immediately
to see if they are interested in providing this service and will report his findings to the Board.
Chairman Bruce Wissel would like to have the attorney services for the Cost of Service Study bid out.
3. Parallax Systems:
Mr. French gave a presentation to the Board showing the customer base of Parallax.
There was discussion concerning the options for the future of Parallax, including a business plan,as well as
Rich Cody having direct sales contact and submitting a monthly Direct Sales Contact report.
With no further business to discuss, Jack Elstro made a motion to adjourn. Board
Member Don Winget seconded the motion, all were in favor and the motion carried. The meeting was
adjourned at 8:45 p.m.
Bruce Wissel, Chair
ATTEST.
Karen Chasteen, IAMC, MMC
City Clerk