HomeMy Public PortalAbout03-19-2001 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,MARCH 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,March 19,2001 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 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
Since there was no meeting March 5,only the minutes of February 26,2001 were available and were approved on a
motion by Councilmember Hutton,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 $500,730.66
Investments Purchased From:
Cash Operating Fund
Bond Sinking Fund
Utility Bond Reserve Fund
Depreciation Reserve Fund 91,000.00
Insurance Reserve Fund
Consumer Deposit Fund
Cash Reserve Fund 223,830.84
Group Insurance Fund
Total Investments $314,830.84
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 111.
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 $ 185,965.04
Telecommunications Division Transfer: 2,700,000.00
Cash Operating Transfer: 231,347.44
Total Prepaid Invoices 3,932,873.98 .
Total EFT/Direct Deposit of Payroll: (156,852.53)
Total Prepaid Invoices: 3,776,021.45
Total EFT Transfers: 422,872.73
Total Prepaids plus EFT Transfers: 4,198,894.18
Total Bills Not Paid: 1,595,262.49
Grand Total of Bills to be approved: $5,794,156.67
• RP&L Minutes Cont'd
March 19,2001
Page 2
REMARKS BY CHAIRPERSON
Chairperson Dickman said he had no comments to make.
Councilmember Combs commented that in a recent Street Tree Commission meeting he had a request by a resident at
35 South 18th Street in regards to the streetlights.He said this is in a section where several trees had been cut down and
the streetlights now are very bright because of the absence of the foliage of the trees.He said that he had thought of an
alternative to what she had asked,which was to do away with the street light,and that was possibly a shade which
would be on the side of the residents.
Councilmember Elstro,who serves as the Street Light Committee representative,responded that as far as he was
concerned he would say no.He said it has never been done in the past,and if it is done it would open up Pandora's
Box.
General Manager David Osbum responded that the shade issue is not unheard of but it depends on the fixture and if the
Board wants him to he would look into that,but he cautioned the Board to prepare themselves for numerous requests if
they decide to do that.He asked that they proceed with caution when looking at possible changes along with line.
Councilmember Welch suggested that if the lights in question are the mercury vapor lamps they could possibly be
replaced with the low sodium bulbs.Again,Osbum said he would go along with whatever the Board decides.
UNFINISHED BUSINESS
There was none.
STREET LIGHT COMMITTEE REPORT
Councilmember Elstro said he had a request to put in two lights at the intersection of Salisbury and Industries Roads in
the new industrial park at a cost of$6.68 for each,making a total of$13.36 per month.
REPORT BY GENERAL MANAGER
General Manager David Osburn asked the Board's approval of the minutes of the two special meetings held at RP&L;
on the dates of February 19 and March 13.Councilmember Welch so moved,second by Councilmember Sharp and the;
motion was carried on a voice vote.
Osburn also requested authorization to receive bids for two 2001 four-door sedans to replace Unit No.33(to be
converted to the electric car)and Unit No.42 with a mileage of 101,306 miles(to be traded in)Councilmember Welch
moved to authorize Osburn to receive those bids,second by Councilmember Parker and the motion was carried on a
voice vote.
Authorization to submit bids at the Annual EPA Allowance Auction was requested by Osbum who explained that each
spring this auction is held for SO 2 allowances.He said he is coming to the Board after the fact because he had already
submitted the bid because it had to be in their hands tomorrow morning.He said if the Board did not agree with the bid'
he presented he could call and request that the bid be withdrawn.He went on to explain that he had submitted three
separate bids—one was for 3,000 allowances at$110,another for 2,000 at$120 and the third for 1,000 at$130.He said
• if all three of those bids went through the utility would acquire 6,000 allowances for$700,000 and that average price
would be$117.
He explained that allowances currently on the market are trading for$172,adding that if they got lucky enough to get
any one of the bid or all of them he feels it would be a tremendous savings.He said he doesn't expect to get any of
these bids because he feels that the larger companies would buy up all the allowances but he felt like it was worth a
shot.He said its early in the year and there is a chance that allowances on the market could come down and they might
be available for around$130.Councilmember Elstro moved to authorize Osbum to submit the three bids,second by
Councilmember Parker and the motion was carried on a voice vote.
Osbum asked Harry Phillips,the Energy Services Director,to give a presentation on the issue of telecommunications.
Prior to that presentation,Phillips said at the beginning of April the utility would be beginning the survey in
conjunction with its market research.
Speaking about the telecommunications marketing,Phillips thanked the Telecom Committee made up of Board
members for its efforts and courage to look beyond what now exists in the industry.His comments,in their entirety,are
on file in the Clerk's office.Phillips announced the new name for the division is Parallax Systems with a tag line of"a
new view in communications."
He said it is also going to be billed as a division of RP&L adding that the name means the apparent change and
position of an object caused by the change and position of the observer.He said marketing and advertising for the
service would vary according to the specific target segments.He distributed samples of the brochures with the artwork
and entertained questions.
Councilmember Wissel questioned the name chosen and defending the decision to use it,Phillips said that after awhile
it is a name that you become comfortable with.Osbum said that name has not been settled on yet because the Board
has to do that,but all of the brochures and printed matter given to the Board is in draft form.He said this is a result of
several meetings with the Telecom Committee,which agreed that the name was something that really did catch on.
RP&L Minutes Cont'd
RP&L Minutes Cont'd
March 19,2001
Page 3
Osburn said one thing they learned through this entire process is that it is amazing that the intemet sites are all being
used which is true with any kind of name you might think of.Councilmember Welch commented that when RP&L
started talking telecommunications business it was not talking Internet provider.He said the sole purpose in getting into
telecommunications was to utilize the fiber-optic cable for higher technology data transmission,adding that the utility
wanted to supply something to the City and the industrial commercial base and even to the residents if the need was
there.He said the Internet business is coming on as a secondary adjunct to the telecommunications company and that
company is Parallax which is a division of RP&L.And,he continued,as a service of Parallax the utility will become
an intemet provider service.He said the company is actually one to provide another high-grade service to the City and
the industrial base of the City.He said the Internet would be a secondary service to all citizens.
There being no further comments on the issue,Councilmember Hutton moved that the name of Parallax be approved,
second by Councilmember Combs and the motion was carried on an eight to one vote,with Councilmember Wissel
voting against.
Councilmember Parker had some suggestions for the logo,calling upon his background in the printing business,
commenting that the way it is laid out makes it very expensive.
Osburn also asked that the Board approve the Telecommunications Budget,adding that Rich Cody is present to answer
any questions.Councilmember Hutton said she wanted to clarify the salaries,asking whether or not all the positions
would be filled right away.Osburn explained that the money allocated is to cover Cody's salary,the telecom engineer
which has been approved but they're still trying to fill that slot,and it also has to do with salaries within the
organization which are allocated to this operation.Chairperson Dickman said the Telecom Committee had gone over
the budget and had brought the numbers down to reflect a little bit later start.Cody expressed his appreciation to the
Board for the success of this venture.
Councilmember Welch moved that the budget be approved for 2001,second by Councilmember Sharp and the motion
was carried on a voice vote.
Osbum informed the Board that RP&L would be celebrating its 100`1'anniversary in 2002 and asked for their thoughts
along that line.He added that they would be doing some brainstorming within their ranks along that line.
NEW BUSINESS
There was none.
ADJOURNMENT
There being no further business,on a motion duly made,seconded and passed,the meeting was adjourned at 7:15 p.m.
Phil Dickman,Chairperson
ATTEST:
Norma Schroeder,Clerk
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