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HomeMy Public PortalAbout10-21-2002 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 MONDAY,OCTOBER 21,2002 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.Monday,October 21,2002 in the Council Chambers in the Municipal Building in said City.Chairperson Larry Parker presided with the following Councilmembers in attendance:Howard"Jack"Bistro,Etta J.Lundy,Karl Sharp,Bing Welch,Bruce Wissel,Paul Combs,Phil Dickman and Sarah"Sally"Hutton. The following business was conducted: ROLL CALL Nine present. APPROVAL OF MINUTES The minutes of the regular meeting of October 7,2002 meeting,held in the Council Chambers,and the special meetings of August 14 and October 10,2002,held at RP&L,were approved on a motion by Councilmember Hutton, second by Councilmember Welch and the motion was carried on a voice vote. APPROVAL OF BILLS,INVESTMENTS AND TRANSFERS Upon recommendation of the Finance Committee,Councilmember Hutton moved to approve the following bills for payment,seconded by Councilmember Dickman and the motion was carried on a voice vote. Bills Already Paid: Payroll and Deductions (October 11,2002) $ 263,601.52 Investments Purchased From: Cash Operating Fund Bond Sinking Fund Utility Bond Reserve Fund Depreciation Reserve Fund Insurance Reserve Fund Consumer Deposit Fund Cash Reserve Fund Group Insurance Fund Total Telecommunications Division Investments Purchased From: Cash Operating Fund Transfer from Cash Operating Fund to: Cash Reserve Fund for Payment To City in lieu of taxes Transfer from Cash Operating Fund to: Depreciation Reserve Fund For Property&Plant Transfers from Depreciation Reserve to: Cash Operating Fund Transfers from Consumer Deposit to: Cash Operating Fund Transfers from Utility Bond Reserve Fund to: Bond Sinking Fund Transfers from Cash Operating to: Interest and Bond Principal Bond Sinking Fund Cash Reserve Fund Utility Bond Sinking Fund Depreciation Reserve Fund Insurance Reserve Fund Consumer Deposit Fund Interest and Bond Principal End of Month Petty Cash Revenue Bonds Interest Coupons Redeemed Interest Coupons Redeemed Bond Coupons Miscellaneous Prepaid Invoices $ 130,938.42 Telecom.Div.Misc.Pre Paid Invoices: 11,205.70 Total Prepaid Invoices: 405,745.64 Total EFT/Direct Deposit of Payroll: (89,984.05) Total Prepaid Invoices: 315,761.59 Total EFT Transfers: 1,663,818.65 Total Prepaids plus EFT Transfers: 1,979,580.24 Total Bills Not Paid: 767,497.37 Grand Total of Bills to be approved: $ 2,747,077.61 RP&L Minutes Cont'd October 21,2002 Page 2 REMARKS BY CHAIRPERSON Chairperson Parker had no comments. UNFINISHED BUSINESS There was none. STREET LIGHT COMMITTEE REPORT Councilmember Elstro had no report. REPORT BY GENERAL MANAGER General Manager David Osburn announced that everything is in place for the contract with Mobotec,the company that is going to provide the Nox Compliance equipment for RP&L's generating stations,and went over some of the general provisions.He said that company's goal and deadline is to have it operational by March 31,2004,added that the contract price for Unit No. 1 is$2,368,900 and$3,283,700 for Unit No.2.He talked about some of the provisions in the contract which included penalties,bonuses and warranties. He said the estimated Nox reductions from this gets the utility almost to complete compliance if they only meet their guaranteed limits and if they go beyond those limits they could get us completely in compliance.He added that even if Mobotec does not meet its guaranteed limits this technology is still going to be reducing Nox at a good cost effective number.He said there is going to be some additional cost for upgrading the metrical switch gear in the plant to supply the additional power for this equipment and that cost will be$108,000 which will be added to the total project.With that explanation,Osburn requested that the Board approve the contract.City Attorney Bob Bever said there had been three or four drafts on this over the last 6 months.One of the things he pointed out was that if Mobotec comes into more advanced knowledge even after the contract they are obligated to provide that new knowledge to this project at no extra cost.He said this should not require any additional down time for either of the two units. At the request of Councilmember Welch,Osburn explained to the high school students in the audience what Nox is why RP&L is spending close to$6 million.Osburn said that Nox is Nitrogen Oxide,which is combustion by product. He used as an example what goes on in the gasoline engine in an automobile,stating that Nox is generated and there is a catalytic converter to clean that up.He said the U.S.EPA has been working for a long time to reduce the amount of Nox in the environment and they have targeted now coal-fired power plants because they are large emitters of Nitrogen Oxide and the date of compliance is the summer of 2004. Councilmember Elstro moved to approve the contract between RP&L and Mobotec USA Inc.for the terms as described earlier by Osburn,second by Councilmember Sharp and the motion was carried on a voice vote. Osburn expressed his appreciation to those who attended the memorial dedication held recently at RP&L added that he feels the memorial will be something that will be appreciated in the years to come.He said that probably next year they will have a replica made of the one missing stone so they can fill out the arch on the hillside.He also announced that another reception is planned for October 29 at the Wayne County Historical Museum,adding that this one is geared toward a show of appreciation to the business community.He announced that work on the budget should be wrapped up this week and that will be followed by budget meetings for the Board members.He said those have been set for the off Mondays in November,on the 11`h and 25`h. Plant Manager Bob Crye gave a quick rundown on the fall outages of Units No. 1 and 2,stating that no major problems had been found yet on No. 1 and it had been returned to service Oct. 10.He said Unit No.2 will be returned to service November 1. NEW BUSINESS There was none. ADJOURNMENT There being no further business,on a motion duly made,seconded and passed,the meeting was adjourned at 7:35 p.m. Larry Parker,Chairperson ATTEST: Norma Schroeder,Clerk