HomeMy Public PortalAbout08-18-1997 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, AUGUST 18,1997
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, August 18, 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"Alen,Alan Stamper, Bob Dickman and Larry Parker. The following business was had to-wit:
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7 APPROVAL OF MINUTES
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9 The minutes of the meeting of August 4, 1997 were approved on a motion by Councilmember Hutton,second by
10 Councilmember Allen and the motion was carried on a unanimous voice vote.
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12 APPROVAL OF BILLS, INVESTMENTS AND TRANSFERS
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14 Upon recommendation of the Finance Committee, Councilmember Hutton moved to approve the following bills for
15 payment,seconded by Councilmember Allen and by unanimous voice vote the motion carried.
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17 Bills Already Paid 227,879.65
18 Payroll and Deductions
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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
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30 Total Investments
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32 Transfer from Cash Operating Fund to;
33 Cash Reserve Fund for payment
34 to City in lieu of taxes
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36 Transfer from Cash Operating Fund to;
37 Depreciation Reserve Fund
38 for Property&Plant
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40 Transfers from Depreciation Reserve to:
41 Cash Operating Fund
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43 Transfers from Consumer Deposit to:
44 Cash Operating Fund
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46 Transfers from Utility Bond Reserve Fund to:
47 Bond Sinking Fund
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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 56
Insurance Reserve Fund
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 63,867.52
63 Total Prepaid Invoices 291,747.17
64 Less EFT/Direct Deposit of Payroll (49,568.53)
65 Total Prepaid Invoices 242,178.64
Total EFT Transfers 68,383.86
Total Prepaids plus EFT Transfers 310,562.50
Total Bills Not Paid 489.600.71
Grand Total 800,163.21
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RP&L Minutes Cont'd
August 18, 1997
Page 2
1 REMARKS BY CHAIRPERSON
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3 Chairperson Welch said he will be getting a revision in the schedule for this weekend for the interviews for the
4 candidates for the general manager's position. He added that there would be no board involvement until Saturday
5 morning.
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7 He brought the Board's attention to a couple of articles in the August 10 issue of the Palladium-Item dealing with
8 special interest groups showing interest in the deregulation bills in the legislature. He also commented on an
9 article in the I.M.P.A. newsletter which mentioned legislation.
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11 He said an announcement will be forthcoming about a working executive session, working around budget
12 hearings in the Committee of the Whole meetings, to schedule talks relating to the quotations received tonight
13 about the boiler retubing.
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15 UNFINISHED BUSINESS
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17 There was none.
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19 STREET LIGHT COMMITTEE REPORT
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21 MISCELLANEOUS BUSINESS
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23 There was none.
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25 REPORT BY GENERAL MANAGER
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27 General Manager Irving Huffman provided the publisher's affidavit for the ad about the bids on the maintenance
28 work on Unit No. 1 which appeared in the Palladium-Item August 7 and 14. Councilmember Parker moved to
29 accept the proof of publication, second by Councilmember Wissel and the motion was carried on a unanimous
30 voice vote.
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32 The first bid opened by Huffman was from D.W. Riley Inc.,which he said were the manufacturers of the boiler. He
33 explained the bid request was for the material and installation and the third was for a joint furnishing of material
34 and labor. He said Riley's bid was to replace the steam generator section of the boiler tubes, stating that the
35 specifications had been drawn up by Black&Veach, adding that they evidently did not follow instructions and
36 several things were missing. He said Item A was for 534 boiler bank tubes at a cost of$165,527; Item B for 27
37 rear wall tubes for$23,632; Item C for 56 low temperature super heat elements at$209,940; Item D for 56 high
38 temperature super heat elements at$164,091;Item E,supply all necessary refractory and baffles for a budget
39 quote for a lump sum of$10,000.He said this bid would have to be tabulated and checked for the missing items.
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41 The bid made by Asea, Brown Bavaria(A.B.B.)gave a lump sum price replacement tubes at a cost of$596,630;a
42 lump sum installation at$764,860;and the entire package at$1,390,430. He added that some options were
43 included.
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45 A bid made by Kennedy Tank&Mfg. Co.of Indianapolis was for a lump sum replacement of the tubes at
46 $534,957; installation at$849,622;and a total at$1,384,579.
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48 Councilmember Wissel moved to refer the bids to the general manager for tabulation, evaluation and
49 recommendation,second by Councilmember Hutton and the motion was carried on a unanimous voice vote.
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51 Councilmember Stamper stated that two meetings ago he had brought up the tubing project and had asked for a
52 copy of any long term strategic plan and had been notified that the Board was going to get a presentation on
53 these things but he expressed a desire to have the numbers before the meeting so he could be prepared to ask
54 questions. He also said he would like to have a list of the age of the key components within Unit No. 1 so the
55 Board could have some record and know how to plan and maintain those.
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57 Huffman responded that the information will be presented at the special meeting by representatives of I.M.P.A. He
58 said they are going to present the number of outages in the boiler over the past two years and going into how
59 much money was spent just on regular maintenance. He added that what is being done is a normal step in
60 keeping a power plant going, noting that when you are operating a$50 million piece of equipment, repairs are
61 going to cost some money.
62
63 Chairperson Welch stated that RP&L is currently on a five-year major maintenance schedule and there is an
64 annual down outage so minor maintenance can be done. He said it can be called a strategic plan or just policy,
65 but it is a schedule that has been in effect for years.
RP&L Minutes Cont'd
August 18, 1997
Page 3
1 Chairperson Welch said to predict the replacement of a turbine or generator itself is difficult. He added that these
2 things will be presented at the meeting and he felt it was proper that all of the Board members hear the
3 information at the same time and then it can be discussed. Councilmember Allen asked if the information will be
4 written and Huffman responded that there will be all types, presented as one packet.Councilmember Allen then
5 said if it is going to be presented in written form she saw no reason why Board members could not have it ahead
6 of time, adding that it is difficult to absorb if they get it right before the meeting. Huffman said he will send what
7 information RP& L has at that point and he invited the Board's consultant to sit in and review the information and
8 if that consultant has some questions he or she would like to have addressed he would also like to have those
9 ahead of-time.
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11 Councilmember Stamper said the reason he did not bring this up before was because he was never worried about
12 it because of the LEBS project,then,when that evaporated, he was aware the Board never talked about tubes
13 and he wondered how much of the strategic plan was built on LEBS. He said he wanted to talk about what the
14 effect was going to be in not getting LEBS on the future of the generation of the utility and the cost efficiency. He
15 added that he just wanted to clarify that.
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17 Chairperson Welch said RP&L would have built a whole new unit with the LEBS project, but what has been done
18 is that the five-year cycle of the maintenance of the No. 1 Unit has been held up and because of not getting the
19 LEBS project wrapped up, next year the No. 1 Unit will be down for the major maintenance schedule. He said that
20 is the four to six-week outage that Huffman mentioned. Chairperson Welch stated that the strategic plan is clear in
21 the minds of RP&L and this Board and if it is to remain a low cost generator of electricity then it will fulfill the goal
22 of low cost generation.
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24 ADJOURNMENT
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26 There being no further business,on a motion duly made,seconded and passed the meeting was
27 adjourned.
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34 Bing Welch, Chairperson
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39 ATTEST:
40 Norma Schroeder, Clerk
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