HomeMy Public PortalAbout04-15-1996 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, APRIL 15,1996
1 The Common Cound 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 15, 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 APRIL 1,1996
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9 Councilmember Hutton moved to approve the minutes of the previous meeting as prepared, seconded by
10 Councilmember Allen and on a unanimous voice vote the motion was carried.
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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 224,855.88
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20 Investments Purchased From:
21 Cash Operating Fund 500,000.00
22 Bond Sinking Fund
23 Utilky Bond Reserve Fund
24 Depreciation Reserve Fund 91,000.00
25 Insurance Reserve Fund
26 Consumer Deposit Fund
27 Cash Reserve Fund 164,730.00
28 Group Insurance Fund
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30 Total Investments 755,730.00
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33 Transfer from Cash Operating Fund to:
34 Cash Reserve Fund for Payment 164,730.00
35 to City in lieu of taxes
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37 Transfer from Cash Operating Fund to:
38 Depreciation Reserve Fund
39 for Properly&Plant 91,000.00
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41 Transfers from Depreciation Reserve to:
42 Cash Operating Fund
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44 Transfers from Consumer Deposit to:
45 Cash Operating Fund
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47 Transfers from Utility Bond Reserve Fund to;
48 Bond Sinking Fund
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50 Transfers from Cash Operating to :
51 Interest and Bond Principal
52 Bond Sinking Fund
53 Cash Reserve Fund
54 Utility Bond Sinking Fund
55 56
Depreciation Reserve Fund
Insurance Reserve Fund
57 Consumer Deposit Fund
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59 Interest and Bond Principal
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61 End of Month Petty Cash
62 Revenue Bonds
63 Interest Coupons Redeemed
64 Bond Coupons
65 Miscellaneous Bills Already Paid 129,793.94
Total Prepaid Invoices 1,366,109.82
Less EFT/Direct Deposit of Payroll (42,995.58)
Total Prepaid Invoices 1,323,114.24
Total Bills Not Paid 737.785.53
Grand Total 2,060,899.77
RP&L Minutes Cont'd
April 15, 1996
Page 2
1 REMARKS BY CHAIRPERSON
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3 Chairperson Parker stated that the scheduled executive session has been canceled and will be re-set for a later
4 date.
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6 UNFINISHED BUSINESS
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8 There was none.
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10 STREET LIGHT COMMITTEE REPORT
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12 Councilmember Stamper requested a meeting of the committee to discuss items such as how much RP & L has
13 invested in poles and lights for the City. President Parker directed Councilmember Elstro to set a date for that
14 meeting. Councilmember Elstro said he would do so.
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16 MISCELLANEOUS BUSINESS
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18 There was none.
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20 REPORT BY GENERAL MANAGER
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22 General Manager Irving Huffman requested authorization from the Board to receive bids for a 1996 6-cylinder
23 truck with pick up body to replace the 1986 Chevrolet Celebrity which has 116,141 miles.Councilmember Allen so
24 moved,second by Councilmember Hutton and the motion was carried on a unanimous voice vote.
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26 In discussing Resolution No.2-1996 which was before the Board at its April 1 meeting, it was agreed that RP&L
27 should adopt the same copy fee schedule as the City which states that the first copy is free and all subsequest
28 pages will cost 50 cents each. Councilmember Stamper so moved,second by Councilmember Hutton and the
29 motion was carried on a unanimous voice vote.
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31 Huffman reported that Unit No. 1 is back up and in operation after a good amount of maintenance and repairs
32 were made. He noted that the upcoming repairs on Unit No.2 will take longer, about four to six weeks,since it
33 includes replacing tubes which means knocking out part of the wall at the top of the boiler building. He called it a
34 major undertaking.
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36 Councilmember Welch commented that he had gone through the Indiana Municipal Power Association's (IMPA)
37 survey and was impressed with what he had read. He asked Huffman where he stood on the matter and what he
38 intended to do with it. Huffman responded that he is recommending to this Board to go ahead with the survey.
39 With that,Councilmember Welch moved to authorize Huffman to proceed with the survey IMPA is conducting. In
40 response to a question posed by Councilmember Stamper about the cost of the survey, Huffman said IMPA bears
41 the cost.At the request of Councilmember Lundy, Huffman explained the survey, noting that it asks different
42 customers how they view RP &L such as evaluating the service and what kind of heating systems they have and
43 what their electrical requirements are.He noted that it is a complete survey and the information is good for RP& L
44 in that it gives a reading of what its image is to its customers.
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46 Answering Councilmember Allen's question about what kind of feedback RP &L will get from IMPA, Huffman said
47 RP& L will have all the results, adding that it will be done professionally with Indiana University. Councilmember
48 Dickman asked Huffman if he knew the cost of the entire survey and Huffman estimated it would be about
49 $120,000.Councilmember Dickman said he felt that was important to know since we are a part of IMPA and that
50 cost does affect RP& L.The motion to authorize Huffman to proceed with the survey made by Councilmember
51 Welch was seconded by Councilmember Hutton and the motion was carried on a unanimous voice vote.
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53 Councilmember Dickman said he had received the rate case schedule in the mail and asked Huffman to elaborate
54 on that. Huffman said RP& L had met with consultants last week and information is being collected and
55 generated and a meeting is set for 7 p.m.Wednesday, May 22,to present to this Board the proposal.
56 Councilmember Dickman asked Huffman if he was keeping the Board's finance committee abreast of the
57 schedule. Huffman answered that the cost of service information will not become available until May 21 so the
58 committee will not have anything to look at until that date.
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60 Councilmember Wissel said he was confused about the scheduling and asked about the upcoming presentation
61 to the RP&L Board of directors and whether or not it will be an open meeting and include discussion with the
62 customers. Huffman responded that he would think it should be a public meeting with the TV cameras present. He
63 noted that the pre-hearing conference is held 45 to 60 days after filing the petition and that filing has occurred. He
64 said the clock is ticking and that conference is at the discretion of the commission. Huffman said the Board will be
65 a party to all of the information, adding that he will set up a recommended schedule to follow and may show a
couple of other scenarios so the Board can get a feel of what it is doing. He noted that the Board is going to shift a
certain amount of burden from the industrial customer to the residential customer or shift some burden from one
class to another. In that also, he said,will be expected revenues for the utility and recommendations from the
constultants about what would be appropriate.All this,he said,will be available to the Board.
RP&L Minutes Cont'd
April 15, 1996
Page 3
1 Councilmember Stamper said he is still waiting for one type of information that he asked for concerning fees paid
2 to consultants. He said he was told there are no contracts but feels there is a verbal agreement of some kind.
3 Huffman said it is in the work order issued to the consultant and that is available. Councilmember Stamper then
4 asked if it is a Board matter to know who the consultants are, how much they are paid and whether or not to hire
5 them. Huffman responded that it is a Board matter but the consultants RP& L uses for the rate case are the same
6 as in the last rate case and it was felt they should use the same people.Councilmember Stamper said he felt it is
7 only fair to the Board to be able to know that information ahead of time,adding that the amount probably exceeds
8 Huffman's$25,000 discretion.
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10 Councilmember Welch stated that he felt Councilmember Stamper is hammering at the general manager, noting
11 that this Board is a policy making board and nothing more. He urged Councilmember Stamper to back off on this
12 issue noting that this Board has already authorized these expenditures by adopting the 1996 budget.Responding
13 to Councilmember Welch's comments, Councilmember Stamper said when he cannot get the information he
14 requests he will continue to ask for it. Huffman then stated that Herschel Philpot,the financial manager of RP&L,
15 has collected a lot of information for Councilmember Stamper but the only thing he has not provided is a copy of
16 the purchase order and that, Huffman said,will be made for him Tuesday morning and hand delivered to his
17 office.
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19 Councilmember Dickman commented that he felt any Board member should be able to ask a question which is
20 relevant to the operation of RP &L without receiving a lecture by another Board member. Councilmember Elstro
21 commented that he feels that some new Board members should sit back and take the advice from older Board
22 members.
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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
111 27 adjourned.
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33 Larry Parker, Chairperson
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37 ATTEST:
38 Norma Schroeder, City Clerk
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