HomeMy Public PortalAbout10-02-1995 PROCEEDINGS OF THE COMMON COUNCIL OF THE
CITY OF RICHMOND.INDIANA.SERVING AS A BOARD
JN CHARGE OF THE OPERATION OF THE RICHMOND POWER&UGHT PLANT
MONDAY. OCTOBER 2.1995
•
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, October 2, 1995, in the Council
3 Chambers in the Muncipal Building in said City. Chairperson Howard "Jack" Elstro presided with the following
4 Councilmembers in attendance: Gene Allen,Jane Brookbank, Robert Dickman, Mary Ellen Donat, Sarah "Sally"
5 Hutton, Etta Lundy, Don McBride and Larry Parker.The following business was had to-wit:
6
7 APPROVAL OF MINUTES OF SEPTEMBER 18.1995
8
9 Councilmember Parker 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.
11
12 APPROVAL OF BILLS. INVESTMENTS AND TRANSFERS
13
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.
16
17 Bills Already Paid
18 Payroll and Deductions 216,511.37
19
20 Investments Purchased From:
21 Cash Operating Fund 1,450,000.00
22 Bond Sinking Fund i:_
23 Utility Bond Reserve Fund
24 Depreciation Reserve Fund 1,510,840.25
25 Insurance Reserve Fund
26 Consumer Deposit Fund
27 28
Cash Reserve Fund 164,730.00
Group Insurance Fund
29
30 Total Investments 3,125,570.25
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 Depreciation Reserve Fund
39 for Property&Plant 91,000.00
40
41 Transfers from Depreciation Reserve to:
42 Cash Operating Fund
43
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 56
Depreciation Reserve Fund
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 1,607,165.17
Less EFT/Direct Deposit of Payroll (39,446.58)
Total prepaid invoices 5,165,530.21
Total Bills Not Paid 739,089.36
Grand Total 5,904,619.57
RP&L Minutes Cont'd
October 2, 1995
Page 2
1 REMARKS BY CHAIRPERSON
2
3 Chairperson Elstro had no comments.
4
5 UNFINISHED BUSINESS
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7 There was none.
8
9 STREET LIGHT COMMITTEE REPORT
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11 Councilmember Allen said she had received a request from Sanyo for street lights because they have changed
12 their entrance from Sheridan Street to Union Pike. She added that it would involve 30 poles. She said she
13 supposed the next step is to notify the Board of Works and to get a study on the traffic by the Traffic Safety
14 Division.
15
16 MISCELLANEOUS BUSINESS
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18 There was none.
19
20 REPORT BY GENERAL MANAGER
21
22 General Manager Irving Huffman said a few weeks ago RP&L advertised for bids on the network backup
23 substation construction project and those bids came in at a cost over what they felt the budget should allow and it
24 was decided to advertise the project as two separate parts,one being the site prepartion and the other the
25 electrical portion. He produced a publisher's affidavit which showed the legal ad ran in the September 21 and
26 September 28 issues of the Palladium-Item.Councilmember McBride moved to accept the proof of publication,
27 second by Councilmember Hutton and the motion was carried on a unanimous voice vote.
28
29 Huffman proceeded to open the bids, noting the first was from Oberle&Associates of Richmond for$169,000 for
30 the site preparation portion and the second was from L.E. Meyer Co.of Indianapolis for$140,775 for the site
31 preparation and$53,365 for the electrical portion.A bid was also opened from TNF Construction Corp.of_ ,. -
32 Hagerstown for$119,630 for the electrical portion.Councilmember McBride moved to turn the bids over to the
33 general manager for tabulation, evaluation and recommendation,second by Councilmember Hutton and the
34 motion was carried on a unanimous voice vote.
35
36 The bid for the 50-foot tree trimming truck, Huffman said,was awarded to Altec of Indianapolis for$77,896 as the
37 lowest and best bid. Huffman explained that the bid which was supposed to be in the empty envelope was found
38 and everything was intact and accepted as a fair bid.However, he added, it was a higher bid than that from Altec.
39
40 Huffman presented a publisher's affidavit for the advertisement to receive bids for a 1995 four-door front-wheel
41 drive sedan to replace a vehicle which burned. He said the insurance company viewed the car,judged it to be a
42 total loss and has paid off accordingly.The affidavit showed that the ad ran September 21 and September 28 in
43 the Palladium-Item.Councilmember McBride moved to approve the proof of publication,second by
44 Councilmember Parker and the motion was carried on a unanimous voice vote.
45
46 Huffman opened two bids.The first was from Brookbank Auto Center of Richmond for a 1995 Cavalier four-door
47 front-wheel drive sedan for$11,919.18 with an estimated delivery date of 48 hours and the second was from Fred
48 First Ford of Richmond for a four-door front-wheel drive 1996 Ford Escort for$13,265 with a delivery date of from
49 one to 8 weeks.Councilmember Hutton moved to turn the bids over to the general manager for tabulation,
50 evaluation and recommendation,second by Councilmember McBride and the motion was carried on a voice vote.
51
52 Huffman said he had included the 1995 salary ordinance on the Board's agenda.
53
54 Chairperson Elstro asked Clerk Norma Games to read Resolution No. 6- 1995 A RESOLUTION OF THE
55 RICHMOND POWER.&LIGHT BOARD OF DIRECTORS FIXING THE NUMBER AND COMPENSATION OF
56 EMPLOYEES
57
58 The resolution stated that as per I.C.8-1.5-3-4.the Board is required to fix the number and compensation of the
59 employees beginning October 1, 1995 through September 30, 1996. It also authorized the general manager to fill
60 any vacancy among employees that may occur from time to time and hire additional employees if they may be
61 required..It further authorized the general manager to grant merit increases up to an additional 5 percent for any
62 employee..
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64
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RP&L Minutes Cont'd
October 2, 1995
Page 3
1 Huffman said this is a two-year contract negotiated in 1994,giving a 3 percent raise each year. Councilmember
2 Brookbank said she received this Friday night and could not find her 1994 contract to compare the figures.She
3 mentioned there had been a good amount of discussion earlier about the 5 percent merit increases and she felt
4 the Board needs to rehink that, adding that she felt that legally when the general manager give increases it needs
5 to come before the Board.She asked for further discussion on the matter.
6
7 Huffman said it had been the previous Boards who thought it proper for the general manager to give increases as
8 they were warranted and not to have to come back to the Board. He said it had already been discussed how
9 many merit increases were given this year and the amount. He repeated there had been three given.They were
10 to the billing manager who received a 2 percent raise on January 1, 1995 for completing her bachelor of science
11 degree;the chief engineer on February 14, 1995 for receiving his professional engineer's license;and on March
12 20,the human resource assistant received a 2 percent increase for assuming more duties.
13
14 Huffman said he thought it should stay as it is,adding that he had not violated the right given him by the Board.
15 Councilmember Brookbank said she felt that part of the contract needed to be taken out of the resolution and that
16 the general manager should come before the Board each time he feels a merit increase is warranted.She adderi.
17 that it is ultimately the Board's responsibility.Councilmember Allen questioned Huffman on the increases received
18 by the computer programmer and he said he had not had time to check on it but would get back with her.
19
20 Councilmember Brookbank suggested the Board hold off voting on the resolution for two weeks, adding that in the
21 meantime she would like to have a copy of the 1994 contract for comparison.Councilmember Lundy asked
22 Huffman whether or not a new employee who replaces an employee who resigns is hired in at the same salary.
23 Normally, Huffman said,the person would work up to that salary for that position. However, he explained,there
24 are exceptions.He cited the hiring of John Nill,who became purchasing agent with a Bachelor of Science degree
25 plus a Certified Public Accountant certificate who had been auditing the RP& L books. He said Nill was very
26 familiar with RP&L and had many more qualifications than the former purchasing agen.Therefore, RP&L gave
27 him a higher entry level salary.Councilmember Lundy responded that this resolution said the Board sets what
28 they should receive. Councilmember Hutton said this conversation had taken place last year and it was decided at
29 that time that it would not be done again.
30
31 Huffman said if you hire a graduate engineer,fresh out of school,and one with experience you are going to hire
32 the latter at a higher pay scale. He added that RP& L was fortunate to be able to hire Nill at the salary they did,
33 noting that it was a win situation for RP& L.Councilmember Allen asked Huffman if,with the different degrees,
34 Nill had been more productive so that RP&L's costs are lower. Huffman answered that he had been more
35 productive and that can be proved with procedures, adding that he has paid for his salary already.
36 Councilmember Lundy commented that if the Board is going to give the general manager the authority to give
37 increases it needs to know who they were given to and for what.
38
39 Councilmember Dickman suggested the general manager be authorized to give a 3 percent merit increase without
40 coming before the Board, but anything beyond that would have to have Board approval.Councilmember Parker_
41 said he had no problem with the major part of the resolution and suggested the Board pass it and amend tFie last
42 part which speaks to the merit increases.Councilmember Allen questioned the raises received by Huffman and
43 he explained how to figure them. Finance Manager Herschel Philpot stepped forward to assure Councilmember
44 Allen that the$43.38 figure she was questioning was correct.
45
46 Huffman repeated that he still had a problem with coming before the Board to have it approve merit increases,
47 noting that he has not abused this privilege. He said he liked the 5 percent, however, he would go along with the 3
48 percent which gives him some latitude and will not tie his hands completely.Councilmember Donat agreed with
49 the suggestion made by Councilmember Dickman.Councilmember Dickman responded to a statement made by
50 Huffman which alluded to the hiring of a No.2 man and added that he would like to think the Board would approve
51 the salary of such a person. Huffman said he did not mean to imply he would be doing that.
52
53 Councilmember Parker moved to amed the resolution to read"Furthermore the General Manager is authorized to
54 grant merit increases up to an additional 3 percent for any employee per year",second by Councilmember
55 56
McBride and the motion was carried on a unanimous voice vote. Councilmember Hutton moved to adopt the
amended Resolution No. 6-1995,second by Councilmember McBride and the motion was carried on a
57
58 unanimous roll call vote.
59
60 ADJOURNMENT
61 There being no further business,on a motion duly made,seconded and passed the meeting was
62
63 adjourned.
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Howard"Jack"Elstro, Chairperson -
ATTEST:
Norma Carnes, City Clerk