HomeMy Public PortalAbout11-19-2001 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,NOVEMBER 19,2001
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,November 19,2001 in the Council Chambers
in the Municipal Building in said City.Vice Chairperson Larry Parker presided with the following Councilmembers in
attendance:Howard"Jack"Elstro,Bruce Wissel,Karl Sharp,Bing Welch,Paul Combs and Sarah"Sally"Hutton.
Chairperson Phil Dickman and Councilmember Etta J.Lundy were absent.The following business was conducted:
ROLL CALL
Seven present.
APPROVAL OF MINUTES
The minutes of the meetings of October 3 and 15,and November 5,2000 were approved on a motion by
Councilmember Hutton and a 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 Combs and the motion was carried on a voice vote.
Bills Already Paid:
Payroll and Deductions $ 264,852.93
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 $ 264,852.93
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 $ 194,148.69
Miscellaneous Prepaid Inv.Telecom: 18,411.87
Total Prepaid Invoices: 477,413.49
Total EFT/Direct Deposit of Payroll: (86,943.70)
Total Prepaid Invoices: 390,469.79
Total EFT Transfers: 1,444,290.78.
Total Prepaids plus EFT Transfers: 1,834,760.57
Total Bills Not Paid: 816,144.38
Grand Total of Bills to be approved: $ 2,650,904.95
•
RP&L Minutes Cont'd
November 19,2001
Page 2
REMARKS BY CHAIRPERSON
Vice Chairperson Parker had no comments.
UNFINISHED BUSINESS
Councilmember Elstro reported that Councilmember Lundy is out of town and was unable to attend the meeting.
STREET LIGHT COMMITTEE REPORT
Councilmember Elstro asked for comments about the request made by the Wayne County 4-H Fair Board for the
installation of street lights from Salisbury to North West L Street which was brought up at the last meeting.General
Manager David Osbum said it was his personal opinion that,since a parking lot is planned across the street from the
grounds and it is obvious that they want street lights to illuminate the parking area,it is not necessary to put street light.
there but could rent security lights.After further discussion,Councilmember Wissel commented that Council should
have priorities as to where the street lights should be placed and he felt that priority should be given to residential area..
Therefore,he said,he would move to decline the request and there was a second by Councilmember Welch.The roll
call vote resulted in four ayes and three nays.No action was taken because of the lack of a majority vote.
Councilmember Welch explained to those in the audience,particularly students in the Richmond High School
Government class,that it takes a vote of five for passage or against it.Vice Chairperson Parker said the request would
be sent to the Board of Public Works and Safety.
REPORT BY GENERAL MANAGER
General Manager David Osburn presented the proof of publication and to place on file the bid for a 55-foot bucket
truck which was approved through a motion by Councilmember Wissel,second by Councilmember Sharp and was
carried on a voice vote.Osburn began opening the bids and remarked that the first bid was from HydroTech Inc.of Fo
Wayne and an addendum,evidently to one of the quotes among those to be opened,and was for a 2001 chassis for
$42,444 and a 2002 chassis for$45,248.Opening the next bid Osburn said it was for$105,131,with$6,000 for trade
in,leaving a net of$99,131.He added that there were four exceptions to the bid to evaluate.
The next bid was from Utility Truck Equipment Inc.and was for$124,442,with a$5,000 trade in,leaving a net of
$119,442;the next was from Al Tech Industries and was for$42,400 for the chassis,and$56,230 for the unit body,
with a$9,500 trade in,with a net of$89,130 and it also includes some options;the next was from MTI Insulated
Products and was for$61,574 for the unit body and$42,830 for the chassis,with a$10,500 trade in leaving a net of
$93,904;the next was from Fred First Ford and was for an in truck chassis for$39,840.70 and$43,750 for a 2002.
Councilmember Hutton moved to refer the bids to the General Manager for tabulation,evaluation and recommendatio
second by Councilmember Welch and the motion was carried on a voice vote.
Osburn opened the bids for a 2001 front wheel drive,4-door sedan and presented the proof of publication.
Councilmember Welch moved to approve it and place it on file,second by Councilmember Sharp and the motion was
carried on a voice vote.
Osbum said the first bid was from Victory Chevrolet and was for a 2002 Cavalier,in stock,for$13,434.25 and
$12,315.60 for another Cavalier which needed to be ordered with a$700 trade in allowance;the next was from Fred
First Ford for a Ford Focus for$12,665.40 with a$700 trade in,leaving a net of$11,965.40;the next was from
Studebaker Buick and was for a 2002 Pontiac Sunfire for$13,376 with a$500 trade in allowance leaving a net of
$12,876;and the next was for a 2002 Buick Century for$16,454 with a$500 trade in leaving a net of$15,954.
The last bid opened by Osburn was from Studebaker Buick and Osbum discovered it was supposed to be opened with
the bids on the bucket truck.He said it was for an MTI International chassis and was for$110,885.96 with a$10,500
trade in leaving a net of$100,385.96.He said another bid was from Lift All also for an International chassis and was
for$112,785.96 with a$6,000 trade in leaving a net of$106,785.96.
Councilmember Wissel moved to refer all these bids to the General Manager for tabulation,evaluation and
recommendation,second by Councilmember Elstro and the motion was carried on a voice vote.
• Osburn asked the Board's approval for the changes in the 2002 expense budget and the capital budget.Councilmembe
Combs asked how long it would takes from the time a request for a rate increase would be made for it to go into effect.
Osburn replied that there isn't a definite answer because once these things get over to Indianapolis to the IURC
sometimes it takes awhile to get it done.He said his estimate is that the earliest this would happen would be about 6 to
8 months from the time the request is made,and could take as long as a year.He said he doesn't see this happening an
time soon and would wait to see how the economy goes and how the business goes locally before that decision is made
Osburn said in the budget just approved by the Council it is reflecting what amounts to a 4 percent rate decrease to RP
&L's customers over the period of the 12 months.He said the actual amount cannot be predicted because it's a refun
from the utility's power supplier.He said they see that kicking in around the middle part of the year.He said the utility
is going to see its purchase power expense drop somewhere between$3 1/2 to 4 million.
Councilmember Elstro moved to approve the changes in the 2002 capital budget and expense budget,second by
Councilmember Sharp and the motion was carried on a voice vote.
Osburn asked if it would be possible to add an item to the agenda at this late date and the Board members agreed that
adding the terms and conditions for the service of the Parallax Systems would be permissible.He explained that when
the Board approved the rates and charges for the telecom services they were filed with the commission and they also
wanted a copy of the terms and conditions.
Common Council Minutes Cont'd
November 19,2001
Page 3
Osburn said their reaction was that the commission doesn't approve those terms and conditions because the Board does.
He said they made that comment to the commission and they answered that they still needed to have that on file.
Therefore,he said,RP&L took the service agreement that was approved by its attorneys and re-worded that in the
terms and conditions,copies of which he had distributed to Board members tonight.
Councilmember Welch moved to approve the terms and conditions for service of Parallax Systems,a division of
Richmond Power&Light,second by Councilmember Elstro and the motion was carried on a voice vote.
Osburn said he had provided the Board with copies of the budget being proposed for Parallax systems that was
reviewed and accepted by the telecom committee and his thought was that this could be discussed in more detail at the
Board's next meeting on December 3,2001.
Osburn also mentioned that he had sent a copy of a policy on street lights for P.U.D.'s which he had given the City
Engineer Bob Wiwi and would bring to the Board later.He also talked about NO x allowances,saying that they are
dropping from$6,000 per ton to around$3,500 per ton,which he said is good news for the utility.
He also stated that he would like to renew the discussion about the Board members visiting a landfill project,saying he
would like to schedule a trip to an existing facility in Danville,IN He added that he had also suggested this trip to some
of the Sanitary Board members who are eager to renew the discussion.Councilmember Welch suggested that it might
be more appropriate to arrange the visit after the holidays.He also added that he thought it would be well to extend the
invitation to the Sanitary Board.
Vice Chairperson Parker asked the students in the audience where they were from and they answered that all of them
are in Gary Weir's Government Class at Richmond High School.Vice Chairperson Parker asked the TV camera be
turned toward them so their teacher and their parents could see that they attended the meeting.
NEW BUSINESS
There was none.
ADJOURNMENT
There being no further business,on a motion duly made,seconded and passed,the meeting was adjourned at 7:40 p.m.
Larry Parker,Vice Chairperson
ATTEST:
Norma Schroeder,Clerk