HomeMy Public PortalAbout12-04-1995 •
PROCEEDINGS OF THE COMMON COUNCIL OF THE
CITY OF RICHMOND.INDIANA.SERVING AS A BOARD
IN CHARGE OF THE OPERATION OF THE RICHMOND POWER&UGHT PLANT
TUESDAY. DECEMBER 4.1995
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, December 4, 1995, in the Council
3 Chambers in the Municipal Building in said City. Chairperson Howard "Jack" Elstro presided with the following
4 Councilmembers in attendance:Gene Allen,Jane Brookbank, Bob Dickman, Mary Ellen Donat, Etta Lundy, Don
5 McBride, Larry Parker and Sally Hutton.The following business was had to-wit:
6.
7 APPROVAL OF MINUTES OF NOVEMBER 20. 1995
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9 Councilmember Hutton moved to approve the minutes of the previous meeting as prepared, seconded by
10 ,Councilmember McBride 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 Donat moved to approve the following bills for
15 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 2,300,000.00
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
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30 Total Investments 2,555,730.00
31
32 -- ,,
33 Transfer from Cash Operating Fund to;
34 Cash Reserve Fund 164,730.00
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36 Transfer from Cash Operating Fund to;
37 Depreciation Reserve Fund 91,000.00
38
39 Transfers from Depreciation Reserve to:
40 Cash Operating Fund
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42 Transfers from Consumer Deposit to:
43 Cash Operating Fund
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45 Transfers from Utility Bond Reserve Fund to;
46 Bond Sinking Fund
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48 Transfers from Cash Operating to;
49 Interest and Bond Principal
50 Bond Sinking Fund
51 Cash Reserve Fund
52 Utility Bond Sinking Fund
53 Depreciation Reserve Fund
54 Insurance Reserve Fund
55 Consumer Deposit Fund
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58 Interest and Bond Principal
59 End of Month Petty Cash
60 Revenue Bonds
61 Interest Coupons Redeemed
62 Bond Coupons
63 Miscellaneous Bills Already Paid 144,099.45
64 Total prepaid invoices 2,955,559.45
65 Total Bills Not Paid 577.280.16
Grand Total 3,532,839.61
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RP&L Minutes Cont'd
December 4, 1995 :. . •
Page 2
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1 REMARKS BY CHAIRPERSON
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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.
16 •
17 REPORT BY GENERAL MANAGER
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19 General Manager Irving Huffman stated that only one bid had been received as of the November 20 meeting
20 which prompted the readvertizement of the bid resulting in one more bid. He said the ad ran November 23 and
21 November 30 in the Palladium-Item. Councilmember McBride moved to approve the proof of publication,second
22 by Councilmember Parker and the motion was carried on a unanimous voice vote.
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24 Huffman read the first bid from MacAllister Machinery Co. Inc.of Indianapolis which was for$36,857 and included
25 $6,851 for the automatic transfer switch,$1,395 for the check out and start up and$450 for the five-year
26 warranty:The second bid,which was from Cummins Mid-State Power of Indianapolis was for$38,993 including
27 $8,010 for the automatic transfer switch,$350 for the check out and start up and$725 for the five-year warranty.
28 Councilmember McBride moved to refer the bids to Huffman for tabulation,evaluation and recommendation,
29 second by Councilmember Hutton and the motion was carried on a unanimous voice vote.
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31 Before opening the bids for the 1996 digger derrick to replace truck No.24, Huffman asked for approval of the
32 proof of publication of the ad appearing November 23 and November 30 in the Palladium-Item.Councilmember
33 Lundy so moved,second by Councilmember Parker and the motion was carried on a unanimous voice vote.The
34 first envelope opened was from Dallams of Waukeshaw,Wisc.which contained only an explanation as to why the
35 company was unable to submit a bid.The second bid was from ALTEC Inc.of Indianapolis for$117,140 for the
36 body and the flat bed and$37,348 for the chassis,with a trade in of$42,500. It also contained an option of
37 $12,000 for a two-speed digger which would reduce the cost by$5,000.The next bid was from TECO of Fort
38 Wayne for$106,372 for the body and accessories and$36,987 for the chassis for a total of$143,359, minus the
39 trade in of$10,000.Councilmember McBride moved to refer the bids to Huffman for evaluation,tabulation and
40 recommendation,second by Councilmember Hutton and the motion was carried on a unanimous voice vote.
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42 Huffman said.both the expense and capital budgets had been discussed at earlier meetings with the Board
43 members. He commented that the expense budget was up 5.72 percent from 1995 to 1996 and went from
44 $41,900,492 to$44,913,012.He said the capital budget is up 10.7 percent over 1995 and went from $7,740,130
45 to$8,572,596.He added that as of October the total was$5,286,624 of the$7,740,130,which means it is well on
46 target and they are close to meeting the budget at the end of the year.
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48 Councilmember.Allen said she feels there are some things in:the capital budget that could be deleted.She
49 questioned the age of some of the trucks.She said the 1996 operating budget is.over a great amount of the-1995
50 projected budget.She pointed out some of the areas in which it is over, but stated that those things she
51 questioned were,addressed'in an earlier conversation today with Herschel Philp*financial manager.
52
53 Dennis Dixon, line superintendent,explained that the trucks have to be mechanically and electrically dependable.
54 He said the standard for trucks is 10 to 12 years,which is better than the industry standards which is 8 to 10
55 years.He said both trucks questioned by Councilmember Allen are for the substation work in the downtown area
56 where theyare working in manholes and have to have the ventilating systems.He added that the small dump
57 trucks are used everyday by the labor crews.
58 •
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59 Jim Daugherty,head of RP.& L's human resources,said the utility has been self insured for about five years and
60 each year he has compared what it would be with being fully insured and found it has been at least 60 percent
61 cheaper. He`added:that for the last two years the utility has frozen its premiums.Councilmember Allen said she
62 recognizes that RP&L will really have to tighten its belt,adding that in the capital budget she noticed the car for
63 the general manager is replaced every two years.She said she felt it should last more than that: Daugherty
64 explained that once:the car is replaced, it goes into the RP&L fleet to be used by others.He said Huffman's car
65 now has 46,000:.miles:on it and once it gets placed in the fleet the mileage lessens.Councilmember Hutton said
getting his car replaced every two years is part of Huffman's contract:Huffman explained that.the Board at the
time that was placed in the,contract wanted the general manager to have a good car and expected it to be.hanl'u1. •
down to the No.2 man:
RP&L Minutes Cont'd
December 4,1995
Page 3
1 Councilmember Dickman questioned why the car is kept in the fleet, noting that he felt it was not a fleef Type of`, � '-'
2 car. Daugherty said it is useful if three people are sent to a seminar they should have a larger car. Councilmember
3 Brookbank questioned why the general manager is allowed to use the car for his personal use and Huffman
4 responded that that right was granted by the Board many years ago.
5
6 City Councilmember-elect Alan Stamper stepped forward to ask about a cost versus benefit analysis on replacing
7 the equipment, noting that if it would save the ratepayers any money it would be part of a healthy process. He
8 also asked what percent of the entire motor fleet is being replaced. Daugherty responded that it is about 15 to 20
9 percent.
10
11 Councilmember Hutton moved to approve both budgets,second by Councilmember Donat and the motion was
12 carried on a unanimous roll call vote.
13
14 Huffman commented on the Doplar Radar System, noting that the National Weather Service had privatized the
15 marketing of the service and RP&L had been spending many hours of work with the supplier of the signal and
16 with its own people trying to work the bugs out of the system.He said it offers a lot of extra values and has three
17 different modes of signal which include the fair air mode,precipitation mode and severe weather mode. He said
18 the utility hopes to come up with a more detailed explanation with some graphics to send out in the next bill to
19 ratepayers.
20
21 Councilmember Dickman commented that he felt there are four or five things within the budget that don't need to
22 be there but the other Councilmembers didn't seem to want to tighten it up. He added that he felt that no other
23 Board would have passed a$45 million budget without a single change. He stated that there may be a few things
24 during the year that he will vote against when it comes to equipment. He said he is all for keeping RP&L
25 competitive and for keeping the rates for the residential people healthy. He said doesn't want RP& L to be
26 extravagant but wants the utility to keep the equipment in good condition. Huffman commented that he and-
27 everyone at RP&L had been more than cooperative at answering any questions posed by the Councilmembers
28 about the utflity.He added that RP& L is extremely competitive and has low rates as well as being a first class
29 utility. He said RP&L will petition the commission for a rate structure and the changing of the rate structure,
30 shifting the burden from one class of customer to another in 1996.That statement prompted Councilmember
31 Dickman to comment that the residential customer will see a rate increase and Huffman said the commission is
32 saying that the utility is to come in with the rate neutral.
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34 NEW BUSINESS
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36 ADJOURNMENT
37
38 There being no further business,on a motion duly made,seconded and passed the meeting was
39 adjourned.
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42 •
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45 Howard"Jack"Elstro,Chairperson
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50 ATTEST:
51 Norma Schroeder, City Clerk
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