HomeMy Public PortalAbout03-18-1996 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, MARCH 18.1996
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, March 18, 1996, in the Council
3 Chambers in the Municipal Building in said City. Chairperson Larry Parker presided with the following
4 Councilmembers in attendance: Howard "Jack" Elstro, Etta Lundy, Bruce Wissel, Sarah "Sally" Hutton, Robert
5 Dickman,Alan Stamper, Bing Welch and Geneva"Gene"Allen. The following business was had to-wit:
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7 APPROVAL OF MINUTES OF MARCH 4.1996
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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 Allen and by unanimous voice vote the motion carried.
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17 Bills Already Paid
18 Payroll and Deductions 222,593.19
19
20 Investments Purchased From:
21 Cash Operating Fund 250,000.00
22 Bond Sinking Fund
23 Utiity Bond Reserve Fund
24 Depreciation Reserve Fund 91,000.00
25 Insurance Reserve Fund
26 Consumer Deposit Fund
27 Cash Reserve Fund 223,105.79
28 Group Insurance Fund
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30 Total Investments 564,105.79
31
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33 Transfer from Cash Operating Fund to:
34 Cash Reserve Fund for Payment
35 to City in lieu of taxes 164,730.00
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37 Transfer from Cash Operating Fund to:
38 Depreciation Reserve Fund
39 for Property&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
46
47 Transfers from Utility Bond Reserve Fund to:
48 Bond Sinking Fund
49
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 Depreciation reserve Fund
56 Insurance Reserve Fund
57 Consumer Deposit Fund
58
59 Interest and Bond Principal
60
61 End of Month Petty Cash
62 Revenue Bonds
63 Interest Coupons Redeemed
64 Bond Coupons
65 Miscellaneous Bills Already Paid 208,253.63
Total Prepaid Invoices 1,250,682.61
Less EFT/Direct Deposit of Payroll (44,838.91)
Total Prepaid Invoices 1,205,843.70
Total Bills Not Paid 681 895.30
Grand Total 1,887,739.00
RP&L Minutes Cont'd
March 18, 1996
Page 2
1 REMARKS BY PRESIDENT
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3 There were none.
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5 UNFINISHED BUSINESS
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7 There was none.
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9 STREET LIGHT COMMITTEE REPORT
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11 No report was given.
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13 MISCELLANEOUS BUSINESS
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15 There was none.
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17 REPORT BY GENERAL MANAGER
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19 General Manager Irving Huffman said two bids were received at the last meeting for the two power transformers
20 and after reviewing both,the bid by ABB Power of$914,000 was determined to be the lowest and best bid.
21 Councilmember Hutton moved to award the bid to ABB Power,second by Councilmember Elstro and the motion
22 was carried on a unanimous voice vote.
23
24 Huffman told Board members that replacement of the economizer section in Unit No.2 boiler had been budgeted
25 at$305,000. He said ABB Combustion Engineering priced the economizer at$168,000 and the lowest installation
26 cost was received from Kennedy Tank at$133,978. Huffman said the total of these two things is$301,978 and
27 both quotes had been accepted. Councilmember Dickman asked if RP &L had taken bids on these two things
28 and Huffman said they had to do this for the spring outage and had to expedite the project. In answer to a
29 question by Councilmember Dickman as to what created the emergency, Huffman said this past year there have
30 been several tube failures and they wanted to delay this but it had to be moved up to the spring outage because
31 the tubes are showing a lot of wear in the economizer section.
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33 Councilmember Stamper asked what the limit is that Huffman has discretion on making the decision without
34 Board approval and Huffman answered that that figure is$25,000. However, he added,that when that figure has
35 been exceeded the Board has been notified. Councilmember Welch commented that in the past if the need has
36 been declared as a perceived emergency or a need to prevent outages or down operations,as long as the Board
37 is notified in a reasonable amount of time, it would be acceptable.
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39 Huffman said another item is ordered from GE,the manufacturer of the turbine. He noted the budgeted price total
40 is$547,000 and the price quoted for the 15th stage is$258,961 and for the 16th stage it is $286,409 for a total of
41 $545,370 which is about$1,630 below the budgeted price. He added that since Unit No.2 will be down they will
42 be installing the 15th and 16th stages. He noted that this is the only bid because GE is the only one who
43 manufactures this part which is the metallic part of the turbine that changes the direction and flow of the steam.
44
45 Councilmember Stamper asked if this something that has to be done and Huffman responded that this had been
46 brought to his attention late and he told them to go ahead and purchase the items because if it isn't done now
47 they will have to schedule another outage. In answer to a question by Councilmember Stamper as to what the
48 savings will be by doing it that way, Huffman estimated about$1 million. He commented that it also is a budgeted
49 item and he wanted to bring the Board up to date as to what is being done.
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51 A special amendment to the agenda was brought to the attention of the Council by City Attorney Bob Bever in the
52 form of a resolution to authorize RP&L to submit for a rate filing. Bever said this authorizes RP& L to prepare it
53 and submit it.
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55 Councilmember Allen requested the resolution be read. President Parker asked the Clerk to read Resolution No.
56 1 - 1996.
57
58 Councilmember Stamper questioned Huffman as to whether there is anything in the petition to keep from having a
59 full blown rate case later on. Huffman answered that this is not RP& L's testimony, adding that he hoped in the
60 rate case the Board at least looks at what the constultants propose and listens to them. Councilmember Wissel
61 asked if the Board could approve the testimony before it is sent in to request the actual rate change. Huffman said
62 it can be done several different ways such as requesting to look at this ahead of time and usually there is some
63 form of negotiation going on. He said what the resolution is saying is that in the final order you could either
64 approve or disapprove and you're saying to the commississon.that it can do something different.
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RP&L Minutes Cont'd
March 18, 1996
Page 3
111 1 Huffman saki you would not want to tie this Board to rate figures because the IURC probably will change it.He
2 added that after they come up with the figures then this Board has a chance to look at it,pass or disapprove it.
3 Bever stepped into the discussion and directing his question to Huffman asked if he was looking for authority of
4 this Board for him to put in the substance in the petition as to what is being requested or just approving that a
5 petition is filed. He said it is two different things and that when Huffman refers to further review by Council it
6 sounds like he is saying that there would only be a review after a petition was submitted to the IURC and the
7 IURC comes back with it.
8
9 Huffman responded that he is asking to file the petition and RP& L will go ahead and prepare filing their own rate
10 case and the Board may look at it at that time. However, he said,he would recommend that the Board not bind
11 RP& L to those figures because they will have to go to the IURC for its review and after the Commission comes
12 up with its recommendation and order then the Board will have a chance to review that and pass it.
13 Councilmember Dickman stated that Council voted and decided that the Finance Committee would be kept
14 involved in this process prior to filing anything and he wanted to make sure that is in Huffman's plans.Huffman
15 suggested the Finance Committee and the consultants meet and talk.
16
17 Huffman said rate filing is not just something simple and that is why you have to have expertise in the matter.
18 Councilmember Welch explained that when the final form is ready if the majority of this Board disagrees it can
19 stop the filing.
20
21 Councilmember Stamper voiced his concern about when citizens would have a change to voice their opinions to
22 Councilmembers about the issue of raising the rates.Huffman responded that he did not see how Councilmember
23 Stamper could say that RP& L is raising some one's rates.Councilmember Stamper stated that it is a known fact
24 there is a subsidy and in order to get it off we have to lower industrial rates and if that happens, he asked,who is
25 going to pay more?Huffman said the residential rates will reflect that.
26
27 In an effort to clarify the issue, Bever said the petition has to be filed March 31 and it does not go into specifics.
28 Later on, he said, it would be brought before the Board and voted on. He said he would try to come up with a
29 compromise of all the parties and if that is not the case the IURC makes the ruling. Councilmember Dickman
30 moved to approve,second by Councilmember Hutton and the motion was carried on a unanimous voice vote.
31 Councilmember Wissel asked for a written schedule or outline on what happens in each of the steps,step by step.
32
33 Chairperson Parker said Resolution No.2-1996 will be held until the next meeting.
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35 ADJOURNMENT
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37 There being no further business,on a motion duly made,seconded and passed the meeting was
38 adjourned.
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44 Larry Parker,Chairperson
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48 ATTEST:
49 Norma Schroeder, City Clerk
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