HomeMy Public PortalAbout02-20-1996 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
TUESDAY. FEBRUARY 20.1996
-- I
1 The Common Council of the City of Richmond, Indiana, serving as a Board in charge of the operation of the
2 Richmond Power & Light Plant met in regular session at 7 p.m. Tuesday, February 20, 1996, in the Council
3 Chambers in the Municipal Building in said City. Chairperson Larry Parker presided with the following members in
4 attendance: Etta Lundy, Bruce Wissel, Sarah "Sally" Hutton, Bob Dickman, Alan Stamper, Bing Welch and
5 Geneva"Gene"Allen. Howard"Jack"Elstro was absent.The following business was had to-wit:
6
7 APPROVAL OF MINUTES OF FEBRUARY 5.1996
8
9 Councilmember Allen moved to approve the minutes of the previous meeting as prepared, seconded by
10 Councilmember Hutton and on a unanimous voice vote the motion was carried.
11
12 APPROVAL OF BILLS. INVESTMENTS AND TRANSFERS
13
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.
16
17 Bills Already Paid
18 Payroll and Deductions 227,978.25
19
20 Investments Purchased From.:
21 Cash Operating Fund 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 164,730.00
28 Group Insurance Fund
29
30 Total Investments 755,730.00
31
32
33 Transfer from Cash Operating Fund to:
34 Cash Reserve Fund for Payment
35 to City in lieu of taxes 164,730.00
36
37 Transfer from Cash Operating Fund to:
38 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 Utlity Bond Sinking Fund
54 Depreciation Reserve Fund
55 56
Insurance Reserve Fund
Consumer Deposit Fund
57
58 Interest and Bond Principal
59
60 End of Month Petty Cash
61 Revenue Bonds
62 Interest Coupons Redeemed
63 Bond Coupons
64 Miscellaneous Bills Already Paid 146,531.74
65 Less EFT/Direct Deposit of Payroll (42,936.15)
Total prepaid invoices 1,343,033.84
Total Bills Not Paid 874.497.91
Grand Total 2,217,531.75
RP&L Minutes Cont'd
February 20, 1996
Page 2
1 REMARKS BY CHAIRPERSON
2
3 Chairperson Parker stated that last year the Board passed a resolution that only three members could attend the
4 A.P.P.A. conference. This year, he said, there appears to be more than three members interested in going to the
5 conference which will be held June 13-20 in Atlanta, Ga. Councilmember Hutton said she had read through the
6 agenda for the conference and found it pertains to everything Board members need to know. She moved to allow
7 anyone who wants to attend to do so. Councilmember Dickman said he still feels that attending the conference
8 every other year as decided last year would be sufficient, however, he said he would be aggreable to doing away
9 with the limit of three.
10
11 Councilmember Wissel asked General Manager Irving Huffman for an estimated cost per person. Huffman
12 responded that he looked at the conference as being very productive and said expenses probably would run
13 about $175 per day which would include room and food. Councilmember Wissel asked again for the estimated
14 cost and it was determined it would be about $2,500 per person. Councilmember Dickman said he felt that new
15 members should go and that those who did not go last year should go this year. He added, however,that he felt
16 eight or nine representatives are not needed at that kind of cost and if it is limited to every other year that kind of
17 takes care of it. Councilmember Dickman said he has yet to hear reports from anyone who has attended.
18 Councilmember Stamper suggested limiting it to four plus the chairman, allowing the new people to go first,then
19 the people who didn't go the year before would get second choice. He said he felt the key is to have at least half
20 the Board there in any given year.
21
22 Councilmember Allen commented that, in contrast, she felt the annual Indiana Association of Cities & Towns
23 conference is just as important to Council as the A.P.P.A. conference is to the RP & L Board members and
24 nobody goes to it. She said she went once and brought back a report which she shared but no one thinks about
25 going there. She noted that it will be held September 14-19 in Merrillville. Councilmember Lundy stated that she
26 also had attended an I.A.C.T.conference as well as A.P.P.A. and had brought back information and given reports.
27
28 Councilmember Welch said having been a previous member of the Board he found the A.P.P.A. conferences
29 valuable because you meet other officials with whom you can discuss common problems. He agreed with
30 Councilmember Stamper's suggestion. Huffman urged Board members to make their wishes known, noting there
31 will be about 2,500 people attending. Councilmember Welch seconded the motion made by Councilmember
32 Hutton to allow whoever wanted to go to do so. Councilmember Wissel commented that if this were the State
33 Legislature or the U.S. Congress this would be called a junket. He said he felt spending here is the same as
34 spending on any other issues and there should be priorities set. He added that he felt that three attending is
35 enough. Councilmember Hutton's motion was defeated on a roll call vote.
36
37 Councilmember Stamper moved to allow four members and the chairman to attend with the new council people
38 first and those who did not go the year before should get the second opportunity, second by Councilmember
39 Dickman. President Parker asked for a clarification, stating that if seven Councilmembers decide they would like
40 to go and all meet the criteria does he as President made the decision.That was agreed.The motion was passed
41 on a roll call vote of 6-2.
42
43 UNFINISHED BUSINESS
44 45 Directing his comments to Huffman, Councilmember Wissel said he was confused as to where the Board stands
46 now after receiving a letter from Huffman dated January 17 in response to Councilmember Stamper's request for
47 some budget information. He said he had understood that Huffman was going to provide the information to
48 Councilmember Stamper and anyone else who specifically requested.it.
49
50 Huffman responded that some of the information requested is very complex and requires explaining because it is
51 technical in nature. He said he would like to have"school" meetings to discuss these topics and go into detail. He
52 said the request includes the contract with IMPA and with consultants as well as information going back to 1988
53 concerning the budget. He added that a lot of this is rather difficult to collect and some is not even available
54 anymore. He repeated that he would like to have the school sessions then all the questions asked by
55 Councilmember Stamper could be answered. He said no utility makes its coal contract information available to the
56 public and Councilmember Stamper had asked for that information. He added that Board members are privileged
57 to see those figures but it can not be put out for others to see. Councilmember Wissel commented that he didn't
58 understand why coal salesmen have any different dilemma than any of the other people in the bidding situations.
59
60 Huffman responded that the reason is that there are several million dollars involved so that if any change in price
61 occurs or any special breaks it adds up to hundreds of dollars in the contract. Councilmember Wissel said he
62 encouraged the idea of the schools, but since Councilmember Stamper's background is in business and analyzing
63 company strengths, he would ask Huffman to provide him with the information he requested before the school
64 begins. Huffman responded that that information would be available at the time of the schools. Councilmember
65 Wissel it would be better to have it beforehand so as to prepare ahead of time. ,
RP&L Minutes Cont'd
February 20, 1996
Page 3
111
1 Councilmember Stamper said he wished to clarify why he was making the request, noting that the Board
2 members have the right, according to the state statutes, to ask for any information they feel they need to
3 responsibly do their job. Secondly, he added,the rate case is coming up the end of March and it is important that
4 people know why this is coming up. He said it was mandated by the Indiana Utility Regulatory Commission as part
5 of the 1992 rate case where it was found there was a subsidy with industrial clients subsidizing residential
6 customers and at that time the commission sated that the subsidy needed to be eliminated and steps were made
7 to do so.The commission also mandated that March 31 of this year it would be looked at again to make sure the
8 industrial clients are still not paying as big a subsidy and if they are it needs to be adjusted.
9
10 And, Councilmember Stamper said, since that is all mandated he would like the information he asked for because
11 it is important for him to find out things about the utility. He said he knows there are things in the numbers as far
12 as capital spending as well as administrative and general spending that seem to be quite a bit out of line.That is
13 why, he said, before the Board goes into a rate case like this he would like to have the figures in front of him and
14 have time to analyze them. He added that he has access to analyists and consultants.
15
16 Huffman said he had invited Councilmember Stamper to come to RP & L and see the copies of 1988 to current
17 filings to IURC as well as copies of the final year end balance sheet and income statement along with each year
18 budget projections from 1988 to the present. He said these are all available and he is welcome to copies. As to a
19 copy of power sales and capacity purchase agreements between RP & L and IMPA, Huffman said these are so
20 voluminous that merely to give the copies to him would make it difficult for him to understand. He said
21 Councilmember Welch was on the Board when IMPA was born and remembers the long sessions concerning
22 those contracts. He said he would be hesitant about acting on the request for copies of the current coal purchase
23 contract, coal hauling contracts and contracts for hauling fly ash away from the plant because he feels he needs
24 to protect the position of RP& L because of the attitude of the coal supplier.
25
26 Chairperson Parker stated that the information requested by Councilmember Stamper will be given to the new
27 board members, adding there will be a meeting with Huffman to discuss the issue. Councilmember Welch
28 substantiates! Huffman's statement about the information requested being available at RP & L and cautioned
29 about the coal contract, adding that many of those companies insist that the commissioners not release their
30 contract prices even in the rate cases and he cautioned Councilmember Stamper to be careful about that area,
31 stating that some things have to be kept confidential because of an agreement with the suppliers.
32
33 Councilmember Stamper moved to form a committee to work with Huffman and Michael Craycraft to prepare the
34 rate petition to be filed March 31, noting that it would help in quite a few ways but would come back with a report
35 to the entire Board. Councilmember Hutton commented all Board members will be informed on it anyhow and
36 Councilmember Welch stated that it would have to come before the Board. Huffman said RP & L has consultants
37 preparing the case and it has to be submitted to the Board before it is filed. Councilmember Dickman said he feels
38 the Board should stay informed,suggesting that the finance committee be asked to keep abreast of the issue and
39 keep the other Board members informed. The motion died because of the lack of a second. President Parker said
40 it would be taken under consideration that the finance committee will be kept informed. Councilmember Stamper
41 said he feels it is important to have information prior to coming to a meeting and to give them time as a group to
42 discuss it.
43
44 Councilmember Dickman moved that the finance committee be kept informed throughout the rate case,second by
45 Councilmember Allen and the motion was carried on a unanimous voice vote.
46
47 STREET LIGHT COMMITTEE REPORT
48
49 No report was given.
50
51 MISCELLANEOUS BUSINESS
52
53 There was none.
54
55 REPORT BY GENERAL MANAGER
56
57 Huffman requested authorization from the Board to take bids for two transformers to be installed in the North West
58 11th Street substation in the Industrial Park area. He said there are two transformers at that station now which will
59 be moved to the east substation which is in needs of upgrading its capacity. He explained the reason for the move
60 is that those two transformers are becoming overloaded and are more than 40 years old, making their
61 dependability questionable. Councilmember Dickman moved to authorize Huffman to receive the bids,second by
62 Councilmember Welch and the motion was carried on a unanimous voice vote.
63
64 Huffman said the environmental controls technical exchange visit sponsored by the U.S. Energy Association was
65 held today with six engineers from Bulgaria and six from Masadonia.
•
•
•
RP&L Minutes Cont'd
February 20, 1996 •
Page 4
•
•
1 He stated that the utility partnership program in cooperation with the U.S.Agency for International Development in
2 the Department of Engery was showing off some of its wares to foreign engineers. Huffman said the visitors liked
3 what they saw, noting that the standards are not quite as tight in their countries as they are here. He said RP&L is
4 recongized by the Department of Energy so it could show off its facility,adding that it is recognized throughout the
5 world as a first class utility.
6
7 Huffman asked Board members to reserve Friday, March 8 at 7:30 p.m.for an executive session bringing in one of
8 the new candidates to visit Richmond. Councilmember Stamper asked if it was just for Board members and
9 Huffman answered in the affirmative. Huffman said the LEBS project will be discussed at 7 p.m. Monday, February
10 26,at RP &L and WON will be televising it. He added that he felt it will be very informative since representatives
11 from the Department of Energy will be there.
12
13 NEW BUSINESS
14
15 There was none.
16
17 ADJOURNMENT
18
19 There being no further business, on a motion duly made,seconded and passed the meeting was
20 adjourned.
21
22
23
24
25
26
27 Larry Parker,Chairperson
28
29
30
31
32
33 •
34 ATTEST:
35 Norma Schroeder, City Clerk
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65