HomeMy Public PortalAbout03-03-1997 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, MARCH 3,1997
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, March 3, 1997, in the Council Chambers
3 in 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 February 18, 1997 were approved on a motion by Councilmember Wissel,second
10 by Councilmember Hutton 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.
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17 Bills Already Paid
18 Payroll and Deductions 226,037.00
19
20 Investments Purchased From:
21 Cash Operating Fund 1,500,000.00
22 Bond Sinking Fund
23 Utility Bond Reserve Fund
24 Depreciation Reserve Fund 91,000.00
25 Insurance Reserve Fund
26 Consumer Deposit Fund
27 Cash Reserve Fund 168,025.00
28 Group Insurance Fund
29
30 Total Investments 1,759,025.00
31
32 Transfer from Cash Operating Fund to
33 Cash Reserve Fund for payment
34 to City in lieu of taxes 168,025.00
35
36 Transfer from Cash Operating Fund to
37 Depreciation Reserve Fund
38 for Property&Plant 91,000.00
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 336,054.34
63 Total Prepaid Invoices 2,580,141.34
64 Less EFT/Direct Deposit of Payroll (45,421.74)
65 Total Prepaid Invoices 2,534,719.60
Total Bills Not Paid 1,053,408.39
Grand Total 3,588,127.99
RP&L Minutes Cont'd
March 3, 1997
Page 2
1 REMARKS BY CHAIRPERSON
2
3 Chairperson Welch stated that he, along with General Manager Irving Huffman, Assistant General Manager John
4 Ulrich, and Councilmember Allen, had attended the American Public Power Association legislative conference in
5 Washington, D.C. last week. He said they were also accompanied by members of the Indiana Municipal Power
6 Association and had appointments in several Congressional offices. He said the primary focus is on deregulation
7 and there are currently two bills, one in the House of Representatives and the other in the Senate, which are
8 being considered. He said sentiments vary on how fast this will happen and some say as early as this year and
9 others say as far out as three to five years.
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11 He called the attention of Councilmembers to their packets, noting that there is a letter written by Herschel Philpot,
12 RP & L financial manager,concerning a procedural change he will be undertaking on transfers of money and how
13 those transfers will be handled in the controller's office. He said the packets also contain summary sheets of the
14 positions taken by A.P.P.A.and I.M.P.A. in the legislative discussions.
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16 UNFINISHED BUSINESS
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18 There was none.
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20 STREET LIGHT COMMITTEE REPORT
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22 There was none.
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24 MISCELLANEOUS BUSINESS
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26 There was none.
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28 REPORT BY GENERAL MANAGER
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30 General Manager Irving Huffman expressed his appreciation to Chairperson Welch and Councilmember Allen for
31 their attendance at the conference. He said A.B.B.will be making a report on March 31. He asked Board
32 members if, since March has five Mondays,they wanted to go ahead and meet on the fourth Monday or wait until
33 March 31 and have one meeting. Chairperson Welch, at the suggestion of Councilmember Hutton, said he
34 thought one meeting on March 31 would be sufficient.
35
36 Huffman said bids were received at the Februrary 18 meeting for two 1997 pickup trucks and after reviewing
37 those bids it was found that those submitted by Brookbank Chevrolet were the lowest and best. He said the bid by
38 Brookbank for the extended cab was$18,215.96, less the trade in of$1,800, leaving a net bid of$16,415.96. He
39 recommended the bid be accepted. Councilmember Allen so moved, second by Councilmember Wissel and the
40 motion was carried on a unanimous voice vote. The bid by Brookbank for the regular cab was$14,936.03, less
41 the trade in of$1,500, leaving a net bid of$13,436.03. He said since that was found to be the lowest and best bid
42 he recommended it be accepted. Councilmember Lundy so moved,second by Councilmember Elstro and the
43 motion was carried on a unanimous voice vote.
44
45 Huffman commented on the figures on the balance sheet for 1996 which Board members received in their
46 packets. He stated that in 1996 a total of 870,922,683 kilowatt hours were sold compared to 840,478,110 in 1995
47 which was an increase of 3.6 percent. However, he said, revenues went up from $44,041,000 to$44,436,000
48 which was an increase of less than one percent and meant more kilowatt hours were sold at less cost.
49
50 He also noted that the average residential rate for 1996 was 5.97 cents per kilowatt hour and in 1995 they paid
51 6.02 cents which was a slight decrease on the per kilowatt hour cost. However, he said, more meaningful was that
52 in January 1995 the average cost per resident was 5.37 cents and in January 1996 it was 5.191 cents, a 10
53 percent reduction. He said the average industrial customer paid 4.284 cents and in 1996 paid 4.197 cents, a
54 reduction of 2 percent. However, he said in January 1995 they paid 4.2 cents and in January 1996 they paid
55 3.758 cents, a reduction of 12 percent. He pointed out that those figures do not reflect what RP& L filed for in its
56 rate case.
57
58 Huffman also pointed out that RP& L's industrial rates went down and will go down even further when the new
59 rates go into effect. He also noted that residential rates went down a lot in the past year and they will not be going
60 up with the new rate schedules and with the rate tracking mechanism now, he said,they will be going down. He
61 pointed out that in 1996 RP & L's revenue was$2,572,000 and in 1995 it was$3,237,000,which is a reduction of
62 21 percent. Out of that$2 million, Huffman said, $1,195,763.20 came from interest income and,with that,the
63 utility's actual revenue from customers was$1,376,807. He also noted that in January a check was written to the
64 City for$1,976,760 for RP& L's divident for 1996 and, in addition,one for$36,887 for salaries paid to the City,
65 making a total of$2,013,647.69 paid to the City.
s
RP&L Minutes Cont'd
March 3, 1997
Page 3
1 NEW BUSINESS
2
3 Chairperson Welch reminded those Board members planning on going to the A.P.P.A. national convention to let
4 Susan Williams at RP&L know. Huffman said they will be making reservations quickly which will enable them to
5 get into the hotel where the convention is being held and encouraged Board members to call her as soon as
6 possible.
7
8 ADJOURNMENT
9
10 There being no further business,on a motion duly made,seconded and passed the meeting was
11 adjourned.
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17 Bing Welch, Chairperson
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22 ATTEST:
23 Norma Schroeder, Clerk
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