HomeMy Public PortalAbout02-19-2008 PROCEEDINGS OF THE COMMON COUNCIL OF THE
CITY OF RICHMOND, INDIANA, SERVING AS A BOARD
IN CHARGE OF THE OPERATION OF THE RICHMOND POWER & LIGHT PLANT
TUESDAY, FEBRUARY 19, 2008
The Common Council of the City of Richmond, Indiana, serving as a Board in charge of the operations of
the Richmond Power & Light Plant met in regular session at 7 p.m. Tuesday, February 19, 2008 in the
Council Chambers in the Municipal Building in said City. Chairperson Welch presided.
ROLL CALL: Present were: Howard "Jack" Elstro, Kelley Cruse-Nicholson, Bruce Wissel, Clayton Miller,
Bing Welch, Larry Parker, Diana Pappin, Bob Goodwin and Phil Quinn.
APPROVAL OF MINUTES: Board member Wissel moved to approve the minutes of the meeting held
February 4, 2008. Board member Miller seconded. Upon a vote viva voce, the motion passed.
APPROVAL OF BILLS, INVESTMENTS AND TRANSFERS:
Upon recommendation of the Finance Committee, Board member Pappin moved to approve the following
bills for payment with a second by Board member Quinn. Upon a vote viva voce, the motion passed.
Bills Already Paid:
Payroll and Deductions 310,412.27
Investments Purchased From:
Utility Bond Reserve Fund 360,692.48
Depreciation Reserve Fund 5,234,080.63
Total 5,594,773.11
Transfers from Cash Operating to:
Miscellaneous Prepaid Invoices 147,027.80
Telecom. Div. Misc. Pre Paid Invoices: 25,268.11
Total Prepaid Invoices: 6,077,481.29
Total EFT/Direct Deposit of Payroll: (116,362.001
Total Prepaid Invoices: 5,961,119.29
Total EFT Transfers: 503,674.96
Total Prepaids plus EFT Transfers: 6,464,794.25
Total Bills Not Paid: 853,246.64
111 Grand Total: $7,318,040.89
STREET LIGHT COMMITTEE: Board member Elstro reported that petitions for street lights on
Southwest 1st Street and Rose City Business Park will be presented for hearing at the February 21, 2008
meeting of the Board of Public Works and Safety. After that meeting, the petitions will be reviewed by
Richmond Power and Light again to investigate the possibility of reducing the number of lights required
for each project.
OLD BUSINESS:
• Hodgin Road Substation Expansion: Seven bids for general construction were received. The
base bids ranged from $230,428 to $550,600. General Manager Steve Saum recommended
bidder Kent Power, Inc. for the amount of$235,282. Board member Miller moved to approve the
recommendation of Mr. Saum, with a second by Board member Quinn. Upon a vote viva voce,
the motion passed.
Two bids for the supply of Relay/Control Panels. The bid amounts were $15,941.57 and
$22,418.00. Mr. Saum recommended Carter & Crawley for the amount of $15,941.57. Board
member Parker moved to approve the recommendation, with a second by Board member Cruse-
Nicholson. Upon a vote viva voce,the motion passed.
■ Johnson Street Substation: Two bids were received in the amounts of $1,209,275 and
$1,226,000. Mr. Saum recommended Delta-Star for the amount of $1,215,636. Delta-Starr
offered the price of$1,185,861 should Richmond Power & Light accept the risk of commodity or
an alternate payment plan of a one percent (1%) reduction if RP&L accepted the following
invoice schedule:
20% of purchase price at time of order
. 30% of purchase price fifteen weeks prior to shipment
30% of purchase price thirty-five days prior to shipment
20% of purchase price upon shipment
This payment schedule would result in $12,156.36 savings making the total cost of the project
$1,203,479.64. If this plan was accepted, an additional $622,508.80 would have to be added to
the 2008 Budget with that amount deducted from the 2009 budget.
Board member Parker asked this item to be held until the March 3 meeting to allow time for RP&L
to calculate the potential loss of interest for monies being expended in advance of the budget
year.
RP&L—Board of Directors Minutes
February 19,2007
Page 2
■ Fly Ash Disposal Discussion: This discussion was continued from the February 4, 2008
meeting. Richmond Sanitary District Board members Richard Bodiker and Gil Klose,
Superintendent Bob Tyler and Sanitary District Engineer, Bob Wiwi were in attendance. Mr. Tyler
explained there were several reasons for the proposed increase in cost to dispose of RP&L fly
ash from $6.50/ton to $19.50/ton, i.e., potential environmental/air space problems (possible IDEM
fines), damage to equipment, increased man hours. Board member Welch questioned the
validity of these claims; however,the Sanitary District did not change their decision.
REPORT BY GENERAL MANAGER:
• The Bag house design/construction procedure is going forward. The surveyor is setting stakes
and soil samples have been taken. Board member Quinn asked Mr. Saum what percentage of
work on the Bag house is local labor. Mr. Saum will research this and report back to the Board.
• Mr. Saum has been nominated to serve on the Board of Directors Executive Committee for the
Indiana Municipal Power Authority, Board member Parker moved to encourage Mr. Saum to
accept if elected. There was a second by Board member Pappin. Upon a vote viva vote, the
motion passed.
ADJOURNMENT:
There being no further business and a motion duly made, the meeting was adjourned.
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Bing Welch, Cpfrperson /
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ATTEST: Karen Chasteen, Clerk