HomeMy Public PortalAbout04-07-1997 /9
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, APRIL 7,1997
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,April 7, 1997, in the Council Chambers in
3 the Municipal Building in said City. Chairperson Bing Welch presided with the following Councilmembers in
4 attendance: Howard "Jack" Elstro, Etta Lundy, Bruce Wissel, Sarah "Sally" Hutton, Geneva "Gene" Allen, Alan
5 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 March 17, 1997 were approved on a motion by Councilmember Allen,second by
10 Councilmember Wissel 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 for
15 payment,seconded by Councilmember Lundy and by unanimous voice vote the motion carried.
16
17 Bills Already Paid 226,581.68
18 Payroll and Deductions
19
20 Investments Purchased From:
21 Cash Operating Fund 1,100,000.00
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 1,100,000.00
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 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 249,279.70
63 Total Prepaid Invoices 1,575,861.38
64 Less EFT/Direct Deposit of Payroll (48,451.68)
65 Total Prepaid Invoices 1,527,409.70
Total Bills Not Paid 759,869.93
Grand Total 2,287,279.63
o
RP&L Minutes Cont'd
April 7, 1997
Page 2
1 REMARKS BY CHAIRPERSON
2 --
3 Chairperson Welch stated that Board members had been given three packets of information which included the
4 presentation by A.B.B. Monday night and copies and summaries of the testimony given in the workshops on
5 deregulation. He noted that when they read through the last two bits of information he felt sure it would give
6 weight to the problem and depths of any legislation concerning deregulation. He also called attention to the
7 executive session which is a closed session to be held at 8 p.m. Thursday to deal with personnel matters relating
8 to the Board's managerial search. Welch also said Board members will receive a copy of Assistant Manager John
9 Ulrich's letter of resignation which was accepted March 25. He added that he regretted to see Ulrich leave.
10
11 UNFINISHED BUSINESS
12
13 There was none.
14
15 STREET LIGHT COMMITTEE REPORT
16
17 There was none.
18
19 MISCELLANEOUS BUSINESS
20
21 There was none.
22
23 REPORT BY GENERAL MANAGER
24
25 In the absence of General Manager Irving Huffman, Herschel Philpot,financial manager of RP& L, presented
26 proof of publication in the Palladium-Item March 20 and March 27 for bids on the rebuild 21 Cell No.2 cooling
27 tower.Councilmember Hutton moved to accept the proof of publication, second by Councilmember Parker and
28 the motion was carried on a unanimous voice vote.
29
30 Philpot opened bids from Psychrometric Systems Inc. of Lakewood, Colo.for$203,982;the second from G.E.A.
31 Thermal Dynamic Towers Inc.of Patriot, Indiana for$79,987; and the third from Ecodyne of Itasca, Ill.for
32 $72,920. Councilmember Hutton moved to refer the bids to the general manager for tabulation,evaluation and
33 recommendation, second by Councilmember Wissel and the motion was carried on a unanimous voice vote.
34
35 Chairperson Welch asked Ulrich to step forward to give the entire Board an update on on the No. 2 turbine
36 maintenance. Ulrich said it is a significant expenditure and significant time in the operation of the unit, noting that
37 $960,000 had been budgeted for the expense. He explained that GE will disassemble the turbine and generator
38 unit and thoroughly inpsect it, adding that it had been five years since this had been done. He said the work is
39 broken down into two main components which are labor and materials. He said the commitment for the inspection
40 both in replacement of some parts and the labor is approximately $800,000. He said several contingencies are
41 built into it based upon past experiences, noting that a certain amount of service work believed to have to take
42 place is estimated at$40,000. Also, since there is a large amont of wear on the first stage nozzle $70,000 is built
43 in for that work. And, the remaining amount is found in the material listed in the emergency contingency of
44 $50,000, which brings the total to the $960,000 which is the estimated amount for the overhaul. Ulrich said the
45 work was started last Monday and is scheduled to be completed by May 19. He said the weekly reports that they
46 will be getting will keep them advised as to the progress, adding that the same personnel is working on it that
47 worked on it five years ago. He invited all the Board members to visit RP & L and look at the unit, noting that they
48 will be able to see the main components since they are all resting on the floor.
49
50 On a different note, Ulrich expressed his appreciation for the cooperation of the Board members for understanding
51 his reasons for his request for the termination of his contract. He stated that it is very important for the Board
52 members to recognize the strength of the employees at RP & L and how well the facility is operated day in and
53 day out. He added that he is proud of the time he has spent here, noting that he feels he has contributed some
54 additional information and support during that time. Chairperson Welch also encouraged the Board members to
55 visit RP& L to take a look at the work being done there, noting that local millwrights are being used as well as GE
56 supervisors and RP & L's own mechanics. He stated that he felt each Board member whould have a better
57 appreciation of the unit and what it takes to keep it going by seeing it in its present state of being inspected.
58
59 ADJOURNMENT
60
61 There being no further business, on a motion duly made,seconded and passed the meeting was
62 adjourned.
63
64
65
Bing Welch, Chairperson
ATTEST:
Norma Schroeder, Clerk