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Home My Public Portal About09-05-2000 • 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,SEPTEMBER 5,2000 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,September 5,2000 in the Council Chambers in the Municipal Building in said City.Chairperson Bing Welch presided with the following Councilmembers in attendance:Howard"Jack"Elstro,Etta J.Lundy,Bruce Wissel,Karl Sharp,Larry Parker,Paul Combs and Phil Dickman.Sarah"Sally"Hutton was absent.The following business was conducted: ROLL CALL Eight present. APPROVAL OF MINUTES Minutes of the August 21,2000 meeting were approved on a motion by Councilmember Parker,second by Councilmember Wissel and were carried on a voice vote. APPROVAL OF BILLS,INVESTMENTS AND TRANSFERS Upon recommendation of the Finance Committee,Councilmember Combs moved to approve the following bills for payment,seconded by Councilmember Sharp and the motion was carried by voice vote. Bills Already Paid: Payroll and Deductions July 21 and Aug.4 $242,453.75 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 Investments $242,453.75 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 $ 55,218.19 Total Prepaid Invoices 1,270,546.94 Total EFT/Direct Deposit of Payroll: (72,361.24) Total Prepaid Invoices: 1,198,185.70 Total EFT Transfers: 446,497.78 Total Prepaids plus EFT Transfers: 1,644,683.48 Total Bills Not Paid: 503.165.56 Grand Total of Bills to be approved: $2,147,849.04 RP&L Minutes Cont'd • September 5,2000 Page 2 REMARKS BY CHAIRPERSON Chairperson Welch had no remarks. UNFINISHED BUSINESS There was none. STREET LIGHT COMMITTEE REPORT Councilmember Elstro said there was no report. REPORT BY GENERAL MANAGER General Manager David Osburn stated that only one bid had been received and opened for the new 2000 Dump Truck and recommended the Board approve that bid which was made by Fred First Ford for$65,940,less a$5,000 trade in, which nets out at$60,940.Councilmember Parker moved to award the bid to Fred First Ford,second by Councilmember Dickman and the motion was carried on a unanimous voice vote. Osburn also asked authorization of the Board to hire Advanced Environmental to install the HVAC equipment in the auditorium,break room,radio room,computer room and the 8th Street office as approved in the capital budget.He said once this is done it should complete the ongoing project for the past several years to update the utility's heating, ventilation and air conditioning system.He said the total cost would be$37,500 and it comes in under the budget which is$46,000.Councilmember Parker moved to hire Advanced Environmental to complete the HVAC,second by Councilmember Paul Combs and the motion was carried on a voice vote. Osburn requested Board authorization to enter into a contract with PeopleSoft and SPL for a new CIS package and its implementation.He said he had sent each of the Board members background information as well as supplemental information which included a breakdown of the costs.Councilmember Parker asked City Attorney Bob Bever if he had looked this contract over and Bever said he had looked it over but had not completed it yet.Councilmember Sharp questioned the hours and asked how many hours RP&L employees were going to have to spend to help complete this project. Osburn said the utility anticipates its staff to be very involved in the implementation process because it helps reduce the cost and it also helps in the learning and the knowledge transfer.He said he had asked Randy Baker to be here tonight to address that subject,saying he was here to answer questions. Baker said a lot of those hours that Councilmember Sharp is questioning are being spent by the utility's staff actually "mirroring"the work being done which means working with the company side by side.In answer to a question by Councilmember Combs about the five business days allotted to bring to the company's attention any errors,Baker said it depends on how the implementation itself goes as to whether or not that is sufficient time.Osburn said that is not uncommon language in these kinds of things and what it does do is that it makes sure that RP&L needs to be on top of things and gives the utility the ability to ask for additional time if it is deemed necessary. Councilmember Parker said he understands that the software would be designed in the company's Chicago office and asked Baker if that is correct.Baker answered that that cuts down on some of the travel costs they might have in coming down here.Councilmember Parker said at the meeting last week the company had indicated that the training would take place in Indianapolis and Baker answered that it depends on what part of the training it is.Baker said in his opinion,most of the training would take place in Chicago,but some of it would be in Indianapolis.Councilmember Parker also questioned the cost of traveling to the training sites.Baker said he would have to get with the company to see if more of the training sessions would be held in Indianapolis and he would get back with the Board with that information. Giving an example of the training and how it would be done,Baker said RP&L would sent Tracey Garrett,the financial manager,then she would come back to do the training here as opposed to sending several all at once.Baker said there would be four IT people receiving the training as well as key people within the utility.Garrett said they would be trying to get at least one functional person from each area to be trained.Councilmember Dickman asked Baker how confident he is that the company could get this done within the 2,040 hours that they have budgeted and Baker said he is very confident it could be done.In answer to another question by Councilmember Sharp about the people he had visited where the system was already in operation,Baker said one was a medical facility here in Indiana where it had been running since 1995 and he had talked to a large financial operation in Cincinnati,Ohio,where the financial had been implemented four years ago and the payroll two years ago.He added that both these places which had been checked out were satisfied. Councilmember Parker said he would like to have some kind of assurance that,for$1,450,000,it would work.Bever assured him that he would see that the language would be placed in the contract.Both Baker and Osburn said they felt it was reasonable.In answer to a question by Councilmember Lundy,Osburn said the training is equivalent of 960 hours and he said he has faith in his staff and personnel that they would be able to pick it up within that time frame. After more discussion about the subject,Councilmember Dickman moved to authorize Osburn to enter into a contract with PeopleSoft and SPL for the new CIS package,pending final review by Bever,second by Councilmember Combs and the motion was carried on a voice vote.After comments by Councilmember Welch about how well this issue was explained at their meeting last week,Osburn said he viewed this as a team process and part of that team is this Board and himself and his staff.He said there are times that this Board spots things that they overlook and that is part of the process of working together and pointing things like that out it means they all do a better job. Osburn said RP&L had been given notice that the judge at the IURC would give the final ruling on its telecommunications order so they expected to get an order approving the utility's telecommunications business tomorrow.He said he would certainly let the Board know if that happens. RP&L Board Minutes Cont'd September 5,2000 Page 3 Osbum told the Board that things are progressing on the technology zone and they hope that they will be able to within the next three weeks to wrap up the utility's part of the project,adding that they hope to make a date with this Board to do a presentation as to how that stands. NEW BUSINESS There was none. ADJOURNMENT There being no further business,on a motion duly made,seconded and passed,the meeting was adjourned. Bing Welch,Chairperson ATTEST: Norma Schroeder,Clerk