HomeMy Public PortalAbout06-03-1996 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. JUNE 3.1996
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, June 3, 1996, in the Council Chambers
3 in the Municipal Building in said City. Chairperson Larry Parker presided with the following Councilmembers in
4 attendance: Howard "Jack" Elstro, Etta Lundy, Bruce Wissel, Sarah "Sally" Hutton, Robert Dickman, Alan
5 Stamper,Bing Welch and Geneva"Gene"Allen. The following business was had to-wit:
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7 APPROVAL OF MINUTES OF MAY 20,1996
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9 Councilmember Hutton moved the minutes be approved, second by Councilmember Allen and the motion was
10 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 Stamper moved to approve the following bills
15 for payment,seconded by Councilmember Hutton and by unanimous voice vote the motion carried.
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17 Bills Already Paid
18 Payroll and Deductions
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20 Investments Purchased From:
21 Cash Operating Fund 900,000.00
22 Bond Sinking Fund
23 Utility Bond Reserve Fund
24 Depreciation Reserve Fund 160,908.85
25 Insurance Reserve Fund 213,550.57
26 Consumer Deposit Fund
27 Cash Reserve Fund
28 Group Insurance Fund
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30 Total Investments 1,274,459.42
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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 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 Bills Already Paid 23,566.37
63 Total Prepaid Invoices 1,298,025.79
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65 Total Bills Not Paid 670.870.43
Grand Total 1,968,896.22
•
RP&L Minutes Cont'd
June 3, 1996
Page 2
1 REMARKS BY CHAIRPERSON
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3 Chairperson Parker related a recent conversation he had with a stranger during breakfast. He said the man
4 commented that he had worked for Florida Power & Light as well as Indianapolis Power & Light and had talked
5 with people in both places and all had heard of Richmond Power & Light and had been to various associations
6 . where RP & L had representatives. The man then commented that in his opinion RP & L is the best run and the
7 best municipal utility in the world. President Parker said he was pleased to hear such a statement. General
8 Manager Irving Huffman said he would pass the comment along to the RP&L employees.
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10 UNFINISHED BUSINESS
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12 There was none.
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14 STREET LIGHT COMMITTEE REPORT
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16 There was none.
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18 MISCELLANEOUS BUSINESS
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20 There was none.
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22 REPORT BY GENERAL MANAGER
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24 General Manager Irving Huffman opened bids for a 1996 industrial tractor, noting that he had proof of publication
25 on May 23 and May 30. Councilmember Welch moved to accept the proof of publication, second by
26 Councilmember Allen and the motion was carried on a unanimous voice vote. Huffman proceeded to open three
27 bids.These included Benson, Keesling Farm Equipment of Centerville for$52;Steinke Tractor Sales Inc.of
28 Eaton,Ohio for$47,311;and Bright Equipment Inc.of Indianapolis for$47,993.All of the bids contained a
29 120-day delivery date. Councilmember Wissel moved to return the bids to the general manager for evaluation,
30 tabulation and recommendation,second by Councilmember Lundy and the motion was carried on a unanimous
31 voice vote.
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33 Huffman also opened three bids for a 1996 brush chipper,offering the proof of publication on May 23 and May 30.
34 Councilmember Allen moved to accept the proof of publication,second by Councilmember Welch and the motion
35 was carried on a unanimous voice vote.The bids included those from Ditch Witch of Indiana in Danville, Ind.for
36 $23,155, less a trade in of$2,850,with a total of$20,305 and an estimated delivery date of July 15, 1996; Ditch
37 Witch of Fort Wayne for$23,366, less a trade in of$2,495,with a total of$20,871 and an estimated delivery date
38 of July 15;and Vermeer of Indiana Inc.of Fishers for$25,500, less a trade in of$10,000, leaving a total of
39 $15,500 and an estimated delivery date of June 12, 1996. Councilmember Welch moved to turn the bids over to
40 the general manager for evaluation,tabulation and recommendation,second by Councilmember Allen and the
41 motion was carried on a unanimous voice vote.
42
43 Huffman brought before the Board a resolution to sell Manville Schuller warranted certificates. City Attorney Bob
44 Bever explained that in lieu of payment upon the bankruptcy of Manville,the billings that were due from Manville
45 to RP&L were given to them through these warrants. He further explained that these warrants and stocks are not
46 allowable to be a part of the investment portfolio for RP&L or any municipality.Thus,the Board needed to
47 transfer these and get them into the proper investments.
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49 Bever said going by the statutes it appears that this body is the proper one to authorize the cashing in and
50 transfer of these warratns for cash to put into other investments. Councilmember Dickman asked if there is an
51 estimated value. President Parker answered that it may be around$2,000 to$3,000 and there is also some stock
52 which would bring the total to about$20,000. He said Herschel Philpot,the financial manager of RP&L,said the
53 money will be placed into the account to offset some of the bad debts we have received from other entities.
54 Councilmember Dickman then asked if that amount comes close to what Manville owes and it was agreed that it
55 was not. Councilmember Welch moved to authorize the general manager to sell the warrants and stocks currently
56 in the hands of RP &L,second by Councilmember Allen and the motion was carried on a unanimous voice vote.
57
58 Huffman said Unit No.2 is back on and explained that there have been a few problems but all of these have been
59 resolved. He said while the unit was down,the Asea Brown Bavaria people,those who are going to be furnishing
60 the low nitrous oxide burners for the boiler, visited the utilit trying to collect some data concerning this unit. He
61 said these burners are coming to RP&L at a rather handsome price.
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63 Councilmember Welch asked Bever if he had checked on the LIFAC system contract. Bever answered that he
64 had examined the original host site agreement and the most recent agreement submitted by LIFAC. He reminded
65 the Board that LIFAC was a joint venture between ICF Kaiser and Tampala and RP&L had entered into it for a
demonstration of a decentralization system.
RP&L Minutes Cont'd
June 3, 1996
Page 3
1 Huffman added that upon conclusion of the demonstration process the disposition of this equipment was that it
2 was to be removed by LIFAC at that time. Bever said what has not been submitted is an alternate proposal that
3 instead of removal they would turn over the ownership of the property to RP&L for$1. He said it is not a bad deal
4 to get the property and someone asked if there are any strings attached. He answered that it was a
5 misunderstanding that if RP &L ever uses the project that LIFAC would be the only entity that could service it.He
6 said the only thing they have kept any ties to is that if RP&L ever reactivates it they are requiring that LIFAC
7 Tampala be used to reactivate it.And,from that time on, any servicing or any use of the equipment would be at
8 RP&L's discretion.
9
10 Bever added that this acceptance is with the understanding that upon execution of this agreement that all title and
11 ownership of the subject property should rest with RP&L who shall then have the right to dispose of and or sell
12 the property at its discretion without involvement of LIFAC.Also, in addition to the right of reactivation and upon
13 request LIFAC is to provide a bill of sale.Councilmember Stamper moved to accept the resolution.
14
15 Councilmember Lundy asked if Bever had checked with the LIFAC people to get their response. Huffman said
16 LIFAC indicated that would be a minor modification and they would sign the agreement.Councilmember Hutton
17 seconded the motion made by Councilmember Stamper and the motion was carried on a unanimous voice vote.
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19 ADJOURNMENT
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21 There being no further business,on a motion duly made,seconded and passed the meeting was
22 adjourned.
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28 Larry Parker, Chairperson
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33 ATTEST:
34 Norma Schroeder, City Clerk
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