HomeMy Public PortalAbout06-05-2000 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
MONDAY,JUNE 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.,Monday,May 15,2000 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,Larry Parker,Paul Combs,Phil Dickman and Sarah"Sally"Hutton.
The following business was conducted:
ROLL CALL
Seven present.
APPROVAL OF MINUTES
The minutes of the May 15 meeting were not available.
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 by voice vote.
Bills Already Paid:
Payroll and Deductions $240,553.51
Investments Purchased From:
Cash Operating Fund 900,000.00
Bond Sinking Fund
Utility Bond Reserve Fund
Depreciation Reserve Fund 975,759.07
Insurance Reserve Fund
Consumer Deposit Fund
Cash Reserve Fund 178,309.00
Group Insurance Fund
Total Investments $2,054,068.07
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 $ 218,220.29
Total Prepaid Invoices 2,512,841.87
Total EFT/Direct Deposit of Payroll: (69.512.40)
Total Prepaid Invoices: 2,443,329.47
Total EFT Transfers: 1,529,893.36
Total Prepaids plus EFT Transfers: 3,973,222.83
Total Bills Not Paid: 746,338.32
Grand Total of Bills to be approved: $4,719,561.15
RP&L Minutes Cont'd
June 5,2000
Page 2
REMARKS BY CHAIRPERSON
Chairperson Welch said he assumed that all of the Board members intending to go to the A.P.P.A.Conference in
Orlando,Ha.Have made their reservations.
UNFINISHED BUSINESS
There was none.
STREET LIGHT COMMITTEE REPORT
Councilmember Elstro said there was no report.
REPORT BY GENERAL MANAGER
General Manager David Osburn said only one bid was received and had been opened at the May 15 meeting for
construction of the Containment Dikes at Hodgin East,Richmond,and Northwest 11`h Substations.He said the bid was
made by Fishero&Fishero and was for$275,000,which was exceeding their budget,which was only$200,000.
However,he said,they looked at which substations and which jobs they would do this year and hold some of them over
until next year.Therefore,he said,they had removed some of the jobs and would hold them until next year,and that
brought the cost down to$185,920.He asked the Board to approve awarding the job to the lone bidder.Councilmember
Elstro moved to award the bid as recommended,second by Councilmember Lundy and the motion was carried on a
voice vote.
Osburn also asked the Board to authorize him and the City Attorney to negotiate the closure of the utility's uniform
contract with Cintas,including if necessary,litigation.He said the current contract was for five years,expiring June 15,
2000,and part of the terms of exiting the contract,they feel,are unreasonable so they have no intentions of renewing
the contract.However,they would like to meet with Cintas in an effort to try to reach some kind of settlement.He said
they did have a meeting set up for June 14,at which time a settlement could possibly be reached.But,if that isn't the
case,he is asking the Board to authorize the City Attorney to file some type of court action.He said they would have to
purchase all the uniforms and the estimate is roughly$175,000 and the majority of them are four to five years old.
Osburn said all the Board members should have a letter from City Attorney Bob Bever explaining his opinion of the
issue.Councilmember Combs moved to approve the authorization for closure of the Cintas contract including,if
necessary,litigation,second by Councilmember Parker and the motion was carried on a voice vote.
The next item,Osburn said,is related to the above.He stated that the RP&L staff has been meeting with various
uniform companies and through that process they have settled on a company named RUS located in Columbus,Ohio,
which quoted the best rate for the cleaning fees of the uniforms.He said their price was roughly for$16,000 per year,
which was far below the next lowest price quoted which was for$29,000.He said they had entered into a contract,with
the prices based upon a three-year term but would not be locked into that time.He said this contract would not be
signed until an agreement has been reached with Cintas.Osburn said as new uniforms are needed,the utility intends to
buy them.He added that RUS could give RP&L the option to buy those uniforms from them within one to three
weeks.
Councilmember Dickman wanted to know if anyone in the City is using RUS and Tracey Garrett,RP&L finance
director,answered that there is nobody locally using RUS.However,there are some in New Castle,which they did
contact for references.She felt their price was so reasonable because the company wanted to get business within the
Richmond area.Councilmember Parker moved to authorize the General Manager to enter into a contract with RUS for
employee uniform service,second by Councilmember Combs and the motion was carried on a voice vote.
Explaining the request for Board approval to re-tube No.4 and No.5 high-pressure heaters on Unit No. 1 per the 2000
Capital Budget,was Bob Crye.He explained that the heaters pre-heat the feed water before it enters the boiler that
improves the efficiency of the boiler.He said the current ones have been in service since 1955 and haven't been re-
tubed and a high percentage of them are out of service because they are plugged.He said quotes were solicited from
several companies and the best quote received was from Kennedy Tank which would be able to do the heaters on site.
He said they would use copper nickel tubes that have a life expectancy of 40 years.He added that this work would be
done during the utility's fall outage.Councilmember Dickman moved to approve the bid from Kennedy Tank,second
by Councilmember Hutton and the motion was carried on a voice vote.
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