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HomeMy Public PortalAbout09-20-1999 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 20,1999 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 20, 1999,in the Council Chambers in the Municipal Building in said City.Chairperson Bruce Wissel presided with the following Councilmembers in attendance:,Howard"Jack"Elstro,Etta Lundy,Sarah"Sally"Hutton,Dennis R.Rice Sr.,Bing Welch and Larry Parker.Bob Dickman was absent.The following business was conducted: ROLL CALL Eight present. APPROVAL OF MINUTES Councilmember Allen moved to approve the minutes of September 7, 1999,second by Councilmember Rice and the motion was carried on a unanimous 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 Lundy and by unanimous voice vote the motion was carried. Bills Already Paid: Payroll and Deductions $412,176.39 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 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 227,607.44 Total Prepaid Invoices 639,783.83 Less EFT/Direct Deposit of Payroll (134,630.90) Total Prepaid Invoices 505,152.93 Total EFT Transfers: 1,623,663.94 Total Prepaids plus EFT Transfers: 2,128,816.87 Total Bills Not Paid: 451,150.27 Grand Total of Bills to be approved: $2,579,967.14 RP&L Minutes Cont'd September 20, 1999 Page 2 REMARKS BY CHAIRPERSON Chairperson Wissel had no comments. UNFINISHED BUSINESS There was none. STREET LIGHT COMMITTEE REPORT Councilmember Elstro said Sections 6 and 7 in Meadow Park are next on the list for streetlights and that possibly would be done within the next two months. REPORT BY GENERAL MANAGER General Manager David Osburn explained Resolution No.2—1999,which is the annual salary resolution.He said overall,it reflects a 3 percent wage increase.However,he said,there are a few in there that had some classification schedule innreases as well as merit increases.He said Board members had been provided a sheet before tonight explaining those exceptions. President Wissel questioned the 17 percent increase on salary of the Energy Service Director,adding that the note attached said it was two classification steps.Osburn concurred.President Wissel said he didn't recall getting any previous notice on this and asked if that had been discussed. Osbum explained that part of the resolution allows him to grant two six-month classification increases and what that covers is,as in this case,when an outside employee is hired and you bring them in below the maximum pay for that position then every six months for the first two years a review is done for that employee and they are given an increase at that time to work them up to that pay level.He said the same thing is true when there is an opening in the company, through retirement or someone leaves,then someone gets promoted into that position they start out at a lower wage in that position and they are advanced over a two-year period to the pay where they should be. He explained that in this case they hired him in at quite a bit below what was anticipated to pay for that position and he has done a good job and we have tried to work him up over a two-year period and that is why it amounted to 17 percent. Councilmember Hutton said she is concerned that the Finance Manager still seems to be down and below several different positions which are making more.She said she feels she has a lot of responsibilities.Osburn agreed,pointing out that that position increased to 19 percent.He said that is another example where that person was put in a position that started_fairly low on the pay scale.Councilmember Hutton said she would be willing to increase her percentage a little bit to get her up there,then said she would make that into a motion. Councilmember Welch said when that person was moved into that position there were two conditions placed on that promotion.The first,he said,was that she obtain her MBA and that she gets certified as a CPA at which time she would be moved up in the salary range for each of those accomplishments.Osburn said she received her MBA this year and a 4 percent increase for that,and she is planning on taking her CPA test this fall.He said part of the problem is, adding thathe appreciated the motion,but at the same time he is not sure what her salary should be increased to in order to move her up.He said he needs to have a better idea of where this Board wants to position this person.Osburn said one ofthe problems they are going to have with this position is that some guidelines were set last year on how much they are going to give for degrees and certificates.He said they were right in that she has a lot of responsibilities, a lot of duties and has a key position in the organization. Councilmember Allen said she thought she had hired an assistant,and Osbum answered that they are advertising for that position now and in the interviewing stage.He said if you look at what the Finance Manager does,not only does she do all of their accounting and finance but supervises directly quite a large staff.An assistant possibly would take away some of the accounting duties from day to day an provide another backup for her.He said this would not be a new position,but is the position that the Finance Manager held prior to being promoted and it has never been filled. Chairperson Wissel said he is having a hard time looking at 17 and 19 percent increases and he would have like to have been betterprepared for these before they voted on this.He asked if the Board has to vote on this resolution tonight. City Attorney Bever said statutorily it does not,but they would do without a contract come October 1.Osbum said this does cover the bargaining unit,too,which has to be in effect October 1. Osbum said when you look at some of the numbers they say they look large and he does not deny that at all,but when you look at where they come from,the alternative would be when you hire somebody you put them in at the highest wage possible,then every year you just have a standard increase.He said he doesn't like that,from the standpoint, because when you put somebody in a position at a lower pay until you have a chance to evaluate their performance.He said maybe where they are at fault is that they put them in too low,then to get them up where they should be,you see some significant increases. Councilmember Welch said in looking at the 19 percent increase,it amounts to about$10,000 annually and when she was moved into this position she was taken in at the real low side of the salary range that had been in place before.He said that raise,to this individual with the accomplishment of the MBA and soon to be received CPA,is really not all that bad.He said he feels it is a good step in the right direction,and he feels that this individual understood that when she took the job.Councilmember Hutton asked if there was a second to her motion and Councilmember Welch responded that his answer was the second.Osbum said that he thinks she has already had her last classification increase so any further increases would not be handled through that process which means he would have to bring it back to this Board as a special request. RP&L Minutes Cont'd September 20, 1999 Page 3 Bever said he felt it would be prudent to go ahead and pass the part of the resolution which deals with the employees who are a part of the collective bargaining unit,then the Board could take one of the salaried positions out and hold off until it could be discussed at the first meeting in October.He said he was not suggesting that but merely wanted the Board to be aware of all its options. President Wissel apologized again,saying he was having a real problem with this,adding that he felt he needed more time to think about this and more of an explanation.He moved that the Board approve the salary ordinance for those who have less than a double digit increase requested and vote on the other two at the next meeting. Osburn responded that he was also having trouble understanding this,from his side,saying that he had the guidelines laid out to him as to how to handle this.He said the ordinance does allow him to issue two six-month classification increases and he has done that as he has seen fit to do.He said he does not understand why this should not be approved, noting that the packet had been sent out Thursday with his explanations attached and he hasn't had any calls and hasn't had any questions.He said he feels this should be approved. Councilmember Elstro moved to adopt Resolution No.2—1999,second by Councilmember Rice.President Wissel reminded the Board members he had a motion on the table,but it died without a second.The Board voted on the motion made by Councilmember Elstro and it was passed by a vote of 7 to 1,with President Wissel voting against it. Councilmember Hutton asked Osburn to look into the Finance Manager's salary and see if something could not be done about getting her salary raised higher than is called for in this resolution.He said he would review it this week and send them a memo explaining the situation in more detail,where her current pay is and also in relation to the previous finance manager. Osburn said it is Public Power Week Oct 4 through Oct 8 and RP&L is doing something a little bit different to celebrate the week and to show appreciation to its customers.He said he had given Board members an outline of what is going to be done and that includes doughnuts and coffee at the 8th Street office and that is something they have done in the past.There will also be banners in the office and placed around town,but probably the biggest part of this week is a contest.During this,he said,they have introduced Hallogen,a little figure to promote RP&L,ran some ads in the newspapers which tells about the contest.He said there will be a drawing,ending up with 100 customers at the end and inviting them to come to the facility and join in a cookout with employees.He said Board members are also invited to join in the fun that evening from 5 to 7 p.m.He said they will be giving away three packages,all of which are using electrical appliances.One is a home lighting and cooling package,a backyard patio kit and an electric lawn care package. Osburn said RP&L has begun some line construction on Round Barn Road to take service to the new Industrial Park and the lift station that's going to be there.Also,hopefully,he said,they will start this coming week to run this new service up to the DMI facility.Also,last week,he said,they ran a stack test which was required by the EPA and they passed with flying colors. President Welch said while out in the district last week,he said he noticed on Rich Road that RP&L is out there acquiring easements.Osburn said that is part of the feed to DMI and is needed to extend the three-phase service to that facility. NEW BUSINESS There was none. ADJOURNMENT There being no further business,on a motion duly made,seconded and passed,the meeting was adjourned. Bruce Wissel,Chairperson ATTEST: Norma Schroeder,Clerk