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Home My Public Portal About09-17-2001 . 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,SEPTEMBER 17,2001 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,September 17,2001 in the Council Chambers in the Municipal Building in said City.Chairperson Phil Dickman presided with the following Councilmembers in , attendance:Howard"Jack"Elstro,Etta J.Lundy,Bruce Wissel,Karl Sharp,Bing Welch,Larry Parker,Paul Combs and Sarah"Sally"Hutton.The following business was conducted: ROLL CALL Nine present. APPROVAL OF MINUTES The minutes of the meeting of September 4,2001 were approved on a motion by Councilmember Wissel and second by Councilmember Parker and 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 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 $ 51,871.33 Miscellaneous Prepaid Inv.Telecom: 20,990.88 - Total Prepaid Invoices: 72,862.21 Total EFT/Direct Deposit of Payroll: (,00) Total Prepaid Invoices: 72,862.21 Total EFT Transfers: 77,014.13 Total Prepaids plus EFT Transfers: 149,876.34 Total Bills Not Paid: 638,987.93 Grand Total of Bills to be approved: $ 788,864.27 RP&L Minutes Cont'd September 17,2001 Page 2 REMARKS BY CHAIRPERSON Chairperson Dickman reported on a telecommunications committee meeting held recently during which Telecommunications Manager Rich Cody,and General Manager David Osburn,updated them on how things were progressing with Parallax Systems.He said things are moving right along and contracts are signed to secure the fiber line to the outside for the high speed access. UNFINISHED BUSINESS There was none. STREET LIGHT COMMITTEE REPORT There was none. REPORT BY GENERAL MANAGER General Manager David Osburn showed the proof of publication for the bids on both vehicles that he would be opening this evening.Councilmember Parker moved to accept the proof of publications to be filed,second by Councilmember Welch and the motion was carried on a voice vote. He said the first bids to be opened would be those for the four-door sedan.He noted that the bid from the Nottingham Automotive Group was for a 2002 Ford Taurus for$17,765;the second,also from Nottingham,was for a 2002 Chevy Malibu for$17,850;the third was from Studebaker-Buick-Pontiac-GMC for a 2002 Century Custom Buick for $15,685.Councilmember Parker moved to refer the bids to the General Manager for tabulation,evaluation and recommendation,second by Councilmember Welch and the motion was carried on a voice vote. Osburn opened the bids for the mini-van,stating that the first was from Studebaker-Buick-Pontiac-GMC for a 2002 Pontiac Montana for$21,137 with a trade-in of$800 for the 1992 Ford Tempo,making the total$20,337;the second bid was also from Studebaker for a 2002 GMC Safari for$21,100,with the trade-in of$800,making the total$20,300; Nottingham Automotive Group for a 2002 Ford Windstar for$22,833 with a$900 trade-in allowance making the total $21,933,also with an alternate bid for a 2001 Ford Windstar in stock for$20,870 after the trade-in allowance;the last bid was also from Nottingham-Victory Chevrolet for a 2002 Venture for$21,863 with a$900 trade-in allowance making the bid$20,963. Councilmember Parker again moved to refer the bids for the mini-van to the General Manager for tabulation, evaluation and recommendation,second by Councilmember Welch and the motion was carried on a voice vote. Osburn asked for official authorization to purchase a typical selling block of 2,500 SO 2 allowances,noting that this would not be enough to cover this year's emissions but they could purchase more at a later date.He said prior to the September 11,2001 disaster in New York City and Washington,D.C.,the market was trading for something like$215 per allowance and the firm RP&L was using to broker its.allowances was located on the 101st through 105th floors of the World Trade Center,destroyed by the hijacked planes.He said that company is trying to rebuild its organization, but there are other firms who do that,but he's not sure whether that market is even trading right now.He said he doubts if he finds anything for another couple of weeks. Councilmember Welch moved to authorize Osburn to purchase 2,500 shares of SO 2 allowances in an amount not to exceed$600,000,second by Councilmember Parker and the motion was carried on a voice vote. Osburn stated that the final report from Black&Veatch Design Group had been received for the Whitewater Valley Generating System and their estimate of the project was in excess of$40 million.He said it didn't take long for him to realize that the utility cannot afford to spend that kind of money.He stated that Plan B is to rely on the allowance market on the SO 2 allowances. Osburn said Bob Crye and his staff are hard at work looking at the other options to reduce the number of allowances the utility has to purchase.He said there is one ray of hope,however,and that was a letter that came out of Region 5 in Chicago EPA indicating that they might be pushing back the compliance date from 2003 to 2004.He said if that happens,it would give RP&L an extra year that they wouldn't have to buy allowances and to look at other options and other technologies. Chairperson Dickman asked Osburn if Black&Veatch gave him any good explanation as to why they initially estimated less than half what they came back with in its report.Osburn said he brought that to their attention and told them the utility was not at all happy with that total.He added that the last invoice from the company which was for $100,000 is being held until some reasonable explanation can be given as to why that price had doubled.Crye said they were going to be looking into some other options. Councilmember Parker suggested to Osburn that the Board meet in executive session within the next two or three weeks to review RP&L's security and emergency policy.Osburn said they did get some notices from A.P.P.A. requesting that the utilities have a heightened sense of security in view of the disaster. NEW BUSINESS There was none. RP&L Minutes Cont'd September 17,2001 Page 3 ADJOURNMENT There being no further business,on a motion duly made,seconded and passed,the meeting was adjourned at 7:35 p.m. Phil Dickman,Chairperson ATTEST: Norma Schroeder,Clerk