HomeMy Public PortalAbout10-20-1997 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. OCTOBER 20.1997
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, October 20, 1997, in the Council
3 Chambers in the Municipal Building in said City. Chairperson Bing Welch presided with the following
4 Councilmembers in attendance: Howard "Jack" Elstro, Etta Lundy, Bruce Wissel, Sarah "Sally" Hutton, Geneva
5 "Gene"Allen,Alan Stamper, Bob Dickman and Larry Parker. The following business was had to-wit:
6
7 APPROVAL OF MINUTES
8
9 The minutes of the meeting of Otober 6, 1997 were approved on a motion by Councilmember Hutton,second by
10 Councilmember Allen and the motion was carried on a unanimous voice vote.
11
12 APPROVAL OF BILLS. INVESTMENTS AND TRANSFERS
13
14 Upon recommendation of the Finance Committee, Councilmember Hutton moved to approve the following bills
15 for payment,seconded by Councilmember Lundy and by unanimous voice vote the motion carried.
16
17 Bills Already Paid
18 Payroll and Deductions 226,896.14
19
20 Investments Purchased From:
21 Cash Operating Fund
22 Bond Sinking Fund
23 Utility Bond Reserve Fund
24 Depreciation Reserve Fund
25 Insurance Reserve Fund
26 Consumer Deposit Fund
27 Cash Reserve Fund
28 Group Insurance Fund
29
30 Total Investments
31
32 Transfer from Cash Operating Fund to
33 Cash Reserve Fund for payment
34 to City in lieu of taxes
35
36 Transfer from Cash Operating Fund to;
37 Depreciation Reserve Fund
38 for Property&Plant
39
40 Transfers from Depreciation Reserve to:
41 Cash Operating Fund
42
43 Transfers from Consumer Deposit to:
44 Cash Operating Fund
45
46 Transfers from Utility Bond Reserve Fund to:
47 Bond Sinking Fund
48
49 Transfers from Cash Operating to:
50 Interest and Bond Principal
51 Bond Sinking Fund
52 Cash Reserve Fund
53 Utility Bond Sinking Fund
54 Depreciation Reserve Fund
55 Insurance Reserve Fund
56 Consumer Deposit Fund
57 Interest and Bond Principal
58 End of Month Petty Cash
59 Revenue Bonds
60 Interest Coupons Redeemed
61 Bond Coupons
62 Miscellaneous Prepaid Invoices 54,394.05
63 Total Prepaid Invoices 281,290.19
64 Less EFT/Direct Deposit of Payroll (49,125.95)
65 Total Prepaid Invoices 232,164.24
Total EFT Transfers 1,053,979.20
Total Prepaids plus EFT Transfers 1,286,143.44
Total Bills Not Paid 625.886.75
Grand Total 1,912,030.19
RP&L Minutes Cont'd
October 20, 1997
Page 2
1 REMARKS BY CHAIRPERSON
2
3 Chairperson Welch commented on two pieces of correspondence received by the Board. He said the first was
4 from former general manager Irving Huffman which he urged all members to read. He said the article was one
5 about deregulation and was submitted by I.M.P.A.stating that all at once small groups of utilities are controlling 70
6 percent of the electric market again. He said that happened in the 1920s, leading to the loss of the competitive
7 edge, adding that it seems to be happening again. The second article, he said, was from the new general
8 manager David Osburn. It was a summary of the Regulatory Flexibility Committee hearing held October 14 in
9 which testimony was given by I.M.P.A.with suggestions for the proposed legislation of deregulation.
10
11 UNFINISHED BUSINESS
12
13 There was none.
14
15 STREET LIGHT COMMITTEE REPORT
16
17 Councilmember Elstro said some action should come about within the next couple of weeks when the committee
18 meets with the administration.
19
20 MISCELLANEOUS BUSINESS
21
22 There was none.
23
24 REPORT BY GENERAL MANAGER
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26 Osburn announced the first item of business on the agenda is to adopt the salary resolution, noting that an
27 amendment is in order to change the title from Resolution No. 6-1997 to Resolution No.2- 1997.
28 Councilmember Hutton moved to amend the resolution,changing the number from 6 to 2,second by
29 Councilmember Wissel and the motion was carried on a unanimous voice vote.
30
31 Councilmember Wissel questioned the salary of the general manager showing$3,574.51 bi-weekly.Osburn said
32 he had checked all of the salaries except that one and Councilmember Wissel said a quick calculation showed the
33 yearly salary to be in excess of$91,000. He also noted that the position of senior accountant had been left blank,
34 commenting that he thought that position had been filled.Osburn when Herschel Philpot left,Tracey Garrett had
35 moved up to fill that position because it was felt she could handle the additional responsibilities. In answer to a
36 question by Councilmember Parker, Osburn said the wages for the bargaining employees are set by the contract.
37
38 Councilmember Welch asked City Attorney Bob Bever if this resolution stipulates the maximum salary that can be
39 paid under these classifications but does not necessarily say the salary has to match what is in place.
40 Councilmember Allen said that in the past it has reflected what actually is being paid, not the top of the line.She
41 said prior to this year Councilmembers have had available to them the previous salaries so they could compare,
42 adding that it is always interesting to her to know that they are following the guidelines the union has agreed to.
43
44 Osburn said the employees received a 3 percent raise, but there were a few exceptions. He said those included
45 individuals recently promoted into the positions and those given additional responsiblities. Councilmember Welch
46 asked that the paragraph giving the general manager the authority to give merit increases be cleaned up with
47 definitive language so the State Board of Accounts could understand where the flexibility is. Councilmember
48 Dickman asked Osburn to put in writing how the guidelines on the giving of merit increases are followed.
49
50 In response to that,Osburn said he is planning to move RP &L toward a consistent, continuous review of
51 employees'performances. After much discussion of the statement"the general manager may hire additional
52 employees,"Councilmember Hutton moved to add "per Board approval,"second by Councilmember Parker.
53 Councilmember Welch said that should be amended to read"furthermore the General Manager of RP &L is
54 authorized to fill any vacancy among employees that may occur from time to time and hire additional employees
55 to fill those vacancies with approval of the Board."
56
57 However, Bever said in order to clarify talking about the two concepts, it should read"that may occur from time to
58 time and hire additional new employees per Board approval." After further discussion, Councilmember Welch
59 said the motion should be to amend the last sentence in paragraph no.2,to read"authorizing the general
60 manager to fill any vacancy among employees, excepting that of the assistant general manager,that may occur
61 from time to time and hire additional employees per Board approval."The motion was carried on a unanimous
62 voice vote.
63
64 Answering a question by Councilmember Hutton about hiring new employees at current salaries,Osburn said he
65 would make an attempt to reduce them and bring them up to that current salary.
RP&L Minutes Cont'd
October 20, 1997
Page 3
1 automatic because it reduces the incentive to do better, and she thought this would be a good time to bring that
2 up again.Osburn said she had a good point, adding that what he had hinted earlier was that he would be looking
3 at some performance evaluations but he would like to hold off on comments until he could make that move. He
4 said that is a real possibility but he is not ready for that yet. Councilmember Dickman asked if there were any
5 salaries that exceeded the 3 percent increase.Osburn answered that there were some,because of promotions
6 and additional responsibilities.
7
8 Osburn went down the list, noting that the salaries of the six individuals in the following positions had been
9 increased.The postions and increases which included the 3 percent received by all employees, were: (1)
10 assistant power production manager, 6 percent;chief electrical engineer, 15 percent;finance manager, 13
11 percent;general maintenance foreman,21 percent; meter superintendent, 19 percent;and senior programmer
12 analyst, 6 percent.
13
14 Councilmenber Wissel said he would like to go through this again and asked if this resolution has to be passed
15 tonight. Bever said statute does not require any time frame, adding that this is one of the annual duties of the
16 Board. He said it was passed last year in December. Councilmember Wissel moved to delay the passing of the
17 resolution,second by Councilmember Lundy and the motion was carried on a unanimous voice vote.
18
19 Chairperson Welch asked Osburn to send each Board member a copy of the 1996 salary ordinance and also to
20 make the proposed amendment as suggested tonight.Osburn said he would be glad to do that. Councilmember
21 Dickman said he feels the salary needs to be adjusted under the general manager's position and a new category
22 created to finish out Huffman's year.
23
24 Councilmember Stamper commented that he feels RP& L is paying far in excess of what the average wage is in
25 the community and in the past has given raises a little better than have been given in the City. He said he would
26 like to see a plan as to what Osburn is going to do about that process. Councilmember Allen said when they do
27 implementthe evaluations it will take a great deal away from what this Board is talking about because when that
28 happens,the Board members will all know it is a different ball game when they are evaluated on a yearly basis
29 and determined by performance.Osburn agreed with her statement.
30
31 In giving his report,Osburn requested authorization to purchase 69 kv circuit breakers for capital budget
32 construction projects,noting they are a standardized item. Councilmember Stamper moved to approve the
33 purchase,second by Councilmember Hutton and the motion was carried on a unanimous voice vote.
34
35 In answer to a question by Councilmember Dickman as to the cost,Osburn said it is roughly about$38,000.
36
37 Osburn said the EP.A. has come out with a proposed rule making on air emissions which is going to affect all
38 midwest electric utilities. He said he will try to keep Board members up to date as it goes along, noting the final
39 rule making probably won't come out until this time next year. He said they are posing some significant reductions
40 allowed for nitrous oxides and So2 which will require RP &L to look at some technologies to strip and clean up
41 more of those emissions out of its stack. He said RP& L is currently being approached by a company in
42 conjunction with the Department of Energy which is looking for a pilot project and a host site for its technology
43 equipment at no cost to RP& L. He added that maintenance and operating costs will be minimal. He said he
44 merely wanted to bring this to the Board's attention,stating that he will be working with them to get the details
45 then report his findings to the Board.
46
47 ADJOURNMENT
48
49 There being no further business,on a motion duly made,seconded and passed the meeting was
50 adjourned.
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57 Bing Welch, Chairperson
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63 ATTEST:
64 Norma Schroeder, Clerk
65