HomeMy Public PortalAbout01-05-1998 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, JANUARY 5,1998
1 The Common Council of the City of Richmond, Indiana, serving as a Board in charge of the operations of the
2 Richmond Power & Light Plant met in regular session at 7 p.m. Monday, January 5, 1998, in the Council
3 Chambers in the Municipal Building in said City. Chairperson Larry Parker presided with the following
4 Councilmembers in attendance: Howard "Jack" Elstro, Etta Lundy Bob Dickman, Sarah "Sally" Hutton, Geneva
5 "Gene"Allen, Bing Welch and Bruce Wissel. Alan Stamper arrived late.The following business was had to-wit:
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7 PRESENTATION
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9 Chairperson Parker presented outgoing Chairperson Welch with a gavel as a token of appreciation for his service
10 during 1997.
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12 APPROVAL OF MINUTES
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14 The minutes of the meeting of December 15, 1997, were approved on a motion by Councilmember Hutton,
15 second by Councilmember Lundy and the motion was carried on a unanimous voice vote.
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17 APPROVAL OF BILLS, INVESTMENTS AND TRANSFERS
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19 Upon recommendation of the Finance Committee, Councilmember Hutton moved to approve the following bills
20 for December 12 and 26, 1997 for payment,seconded by Councilmember Allen and by unanimous voice vote the
21 motion carried.
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23 Bills Already Paid
24 Payroll and Deductions 463,376.88
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26 Investments Purchased From:
27 Cash Operating Fund 1,000,000.00
28 Bond Sinking Fund
29 Utility Bond Reserve Fund
30 Depreciation Reserve Fund 91,000.00
31 Insurance Reserve Fund
32 Consumer Deposit Fund
33 Cash Reserve Fund 171,385.00
34 Group Insurance Fund
35 Total Investments 1,262,385.00
36
37 Transfer from Cash Operating Fund to;
38 Cash Reserve Fund for payment
39 to City in lieu of taxes
40
41 Transfer from Cash Operating Fund to:
42 Depreciation Reserve Fund
43 for Property&Plant
44
45 Transfers from Depreciation Reserve to:
46 Cash Operating Fund
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48 Transfers from Cash Operating to
49 Interest and Bond Principal
50 Bond Sinking Fund
51 Cash Reserve Fund
52 Utility Bond Sinking Fund
53 Depreciation Reserve Fund
54 Insurance Reserve Fund
55 56
Consumer Deposit Fund
Interest and Bond Principal
57 End of Month Petty Cash
58 Revenue Bonds
59 Interest Coupons Redeemed
60 Bond Coupons
61
62 Miscellaneous Prepaid Invoices 246,886.29
63 Total Prepaid Invoices 1,972,648.17
64 Less EFT/Direct Deposit of Payroll (99,910.96)
65 Total Prepaid Invoices: 1,872,737.21
Total EFT Transfers 1,293,300.09
Total Prepaids plus EFT Transfers 3,166,037.30
Total Bills Not Paid 1.013.323.18
Grand Total 4,179,360.48
LI
RP&L Minutes Cont'd
January 5, 1998
Page 2
1 REMARKS BY CHAIRPERSON
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3 Chairperson Parker stated that committee assignments will be announced at the next meeting.
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5 UNFINISHED BUSINESS
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7 There was none.
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9 STREET LIGHT COMMITTEE REPORT
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11 There was none.
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13 MISCELLANEOUS BUSINESS
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15 There was none.
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17 REPORT BY GENERAL MANAGER
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19 General Manager David Osburn expressed his appreciation for Chairperson Welch's guidance and assistance
20 during his first three months at RP& L.
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22 Osburn asked the Board to authorize him as general manager to sell the property owned by RP& L at 2500 Union
23 Pike. He said the property had been purchased to use it for a substation but there is no need for it now and the
24 utility does have an offer from a company to buy the property at the estimated price plus the commission cost.
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26 Councilmember Parker said the property was originally purchased in anticipation of the Chrysler plant going in
27 north of the City,then when that did not take place, it was thought it would be a good utility location for Hill's but a
28 different location was selected.
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30 Osburn said the 4.3 acre property has been appraised for$54,000 and the offer is for$60,000. He added the
31 additional amount will cover the seller's expense.
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33 Councilmember Hutton moved to authorize the general manager to sell the property at 2500 Union Pike,second
34 by Councilmember Allen and the motion was carried on a unanimous voice vote.
35
36 City Attorney Bob Bever suggested the motion include the price of$60,000. Councilmember Hutton moved to
37 amend her motion to include the price of$60,000,second by Councilmember Allen and the motion was carried on
38 a unanimous voice vote.
39
40 Osburn asked the Board to authorize him as general manager to execute documents pertaining to the termination
41 of the existing coal contract. Councilmember Dickman so moved,second by Councilmember Welch and the
42 motion was carried on a unanimous voice vote.
43
44 Osburn also asked the Board to authorize him as general manager to proceed with Stage 1 of the NOXSO
45 project. He said City Attorney Bob Bever and Baker& Daniels had reviewed it. Councilmember Wissel expressed
46 concern for the financial status of the company, noting they had been open about the involuntary bankruptcy and
47 his concerns about the reasons for that.
48
49 Osburn agreed that the concerns voiced by Councilmember Wissel were good ones, adding that it was for those
50 very reasons RP& L drafted the host site agreement the way they did. He said 100 percent of the financing has to
51 be in place, which requires NOXSO to recover from bankruptcy.Osburn said he views this as very little risk with
52 great rewards.
53
54 Project manager Jim Black of Pittsburgh, Pa. said all secured debts had been paid off, adding that before any
55 construction begins they have to have 100 percent of the financing in place.Osburn said the agreement is
56 structured so that if something goes wrong, RP&L is not out anything. Black said they will not proceed into Stage
57 2 unless all the funding is in place.
58
59 Councilmember Parker asked Bever if he felt there were enough safeguards in this agreement and Bever said the
60 two law firms which put this together are reliable, but there is always some risk and it is up to this Board as to
61 whether or not to go ahead with the agreement. Osburn commented that if RP& L decides not to buy the
62 equipment, NOXSO will remove it.
63
64 Osburn said when he met with the Department of Energy he had the same concerns as have been voiced here
65 tonight and Black said the D.O.E.'s position is much the same as this Board's. He added that if NOXSO gets the
funding together the D.O.E.will proceed with the project. Councilmember Stamper said he feels the pressure is
on this Board to keep a handle on this and Osburn stated that it either works on its own or it dies.
RP&L Minutes Cont'd
January 5, 1998
Page 3
1 Osburn said the rewards here can be great because a project like this offers an opportunity to have a cleanup
2 technology in place at a very reasonable cost. He said if this doesn't go forward RP& L would probably have to
3 spend the next couple of years investigating the different technologies and decide where RP &L is going to go.
4 He added that they would more than likely have to pay full cost for whatever they get and he said RP& L would
5 probably spend $10 to$20 million to intall it themselves.
6
7 Councilmember Elstro moved to authorize Osburn to proceed with Stage 1 of the NOXSO project to make RP& L
8 the host site,second by Councilmember Welch and the motion was carried on a vote of 7-2,with
9 Councilrnembers Stamper and Wissel casting nay votes.
10
11 ADJOURNMENT
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13 There being no further business, on a motion duly made,seconded and passed the meeting was
14 adjourned.
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22 Larry Parker, Chairperson
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26 ATTEST:
27 Norma Schroeder, Clerk
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