HomeMy Public PortalAbout09-18-1995 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
MONDAY.SEPTEMBER 18.1995
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1 The Common Counci 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, September 18, 1995, in the Council
3 chambers in the Municipal Building in said City. Vice Chairperson Etta Lundy presided with the following
4 Councilmembers in attendance:Gene Allen,Jane Brookbank, Bob Dickman, Mary Ellen Donat, Sally Hutton, Don
5 McBride and Larry Parker.Absent was Chairperson Howard"Jack"Elstro. The following business was had to-wit:
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7 APPROVAL OF MINUTES OF SEPTEMBER 5.1995
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9 Councilmember McBride 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.
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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 216,220.41
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21 Investments Purchased From:
22 Cash Operating Fund 1,312,762.76
23 Bond Sinking Fund
24 Utility Bond Reserve Fund
25 Depreciation Reserve Fund 1,225,000.00
26 Insurance Reserve Fund
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Consumer Deposit Fund
Cash Reserve Fund
29 Group Insurance Fund
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31 Total Investments 2,537,762.76
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34 Transfer to City in Lieu of Taxes;
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36 Transfer from Cash Operating Fund to;
37 Consumer Deposit Fund
38 for partial payments
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40 Transfers from Depreciation Reserve to:
41 Cash Operating Fund
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43 Transfers from Consumer Deposit to:
44 Cash Operating Fund
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46 Transfers from Utility Bond Reserve Fund to;
47 Bond Sinking Fund
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49 Transfers from Cash Operating
50 Interest and Bond Principal
51 Bond Sinking Fund
52 Cash Reserve Fund
53 Utiliy Bond Sinking Fund
54 Depreciation Reserve Fund
55 56
Insurance Reserve Fund
Consumer Deposit Fund
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58 Interest and Bond Principal
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60 End of Month Petty Cash
61 Revenue Bonds
62 Interest Coupons Redeemed
63 Bond Coupons
64 Miscellaneous Bills Already Paid 120,118.55
65 Less EFT/Direct Deposit of Payroll (37,953.72)
Total Prepaid Invoices 2,836,148.00
Total Bills Not Paid 738,889.99
Grand Total 3,575,037.99
RP&L Minutes Cont'd
September 18, 1995
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1 REMARKS BY VICE CHAIRPERSON
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3 None were made.
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5 UNFINISHED BUSINESS
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7 STREET LIGHT COMMITTEE REPORT
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9 Councilmember Donat said she had received a letter from David Stevens, distribution engineer at RP& L,stating
10 that the lights requested at the Olde Richmond Inn that have been approved will be the full responsibility of the
11 Olde Richmond Inn.
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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 reminded the Board that the bids received earlier for the network backup
20 substation on North 10th Street were too high and after making some minor changes in the project and breaking
21 out the site work from the electric work he was asking for authorization from the Board to re-bid the project.
22 Councilmember Dickman so moved,second by Councilmember McBride and the motion was carried on a
23 unanimous voice vote.
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25 Huffman asked for a motion to approve the proof of publication of the bid for the 50-foot tree trimming truck
26 published in the Palladium-Item September 7 and September 14.Councilmember McBride so moved,second by
27 Hutton and the motion was carried on a unanimous voice vote.
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29 Prior to opening the bids, Huffman said four had been received by the deadline.They were from Altec of
30 Indianapolis for$77,896;Deuco of Wakesha,Wis.for$92,808;and TecO Inc.of Fort Wayne for$83,233.The
31 envelope received from Lift All of Fort Wayne was empty. Councilmember McBride moved to turn the bids over to
32 Huffman for tabulation,evaluation and recommendation,second by Councilmember Allen and the motion was
33 carried on a unanimous voice vote.Councilmember Dickman suggested that Huffman check with Liftall about the
34 empty envelope.
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36 Huffman asked the Board for authorization to receive bids for a 1995 or 1996 four-door front-wheel drive sedan to
37 replace the 1992 Tempo which caught fire.Councilmember McBride so moved,second by Councilmember
38 Brookbank and the motion was carried on a unanimous voice vote. Vice Chairperson Lundy asked Huffman if RP
39 &L would receive a settlement from the insurance company and he answered in the affirmative.
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41 Huffman reported that he had met today with the Division of ABB working on the Kalena Cycle project, noting that
42 it is still before the Department of Energy but RP& L has to make some evaluations as to how far its wants to go
43 into the project.He said that means looking at more figures and getting more information. He said it will involve
44 taking the 33-mega watt unit, replacing the turbine,generator,boiler and condensing equipment and all the
45 pre-heaters as well as involve the hardware to go ahead to make sulphuric acid as a finished product and will also
46 improve the efficiency 20 percent. He added that the mega watt capacity increase would be about 20 mega watts
47 and the increased efficiency on top of that would bring it down from a 10,500 BTU per KW of generating
48 requirement to the8,000-plus area meaning greater efficiency. He said the cost of the project is approaching
49 around$75 million.
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51 Huffman said he would want ABB to make a presentation to this Board around November or December so there
52 would be some figures to go by.He added that IMPA should also be involved since they buy power from RP&L.
53 He said the way the project looks now,it is one of those which ends up, if you carry a third of the burden,,:you e.
54 up with savings more than equal whatever burden you have.Actually, he said,you make money on the project.
55 Huffman said he would recommend RP&L put some money into it but the utility would finance the bulk of it.
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57 In discussing the amount of money the City pays RP& L for street lights, Councilmember Brookbank suggested
58 turning off some of them. Huffman said that will not keep the cost down because the money being paid now is for
59 the existing light standards which RP&L has already paid for:=.He said the IURC will say RP&L still has the
60 burden to recover on the light poles and the City will have to pay it Andy Boatright,chief electrical engineer for
61 RP& L,said the answer is not turning off the lights but to study what the alternatives are or put more of a burden
62 on the developer which is where he thinks it should be. He noted that it is very expensive to install conduit in the
63 subdivisions especially where there are lawns established. He suggested that possibly the developer could be
64 asked to put the money aside for the light standards or,perhaps,RP&.L could just charge the City a flat rate.
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RP&L Minutes Cont'd
September 18, 1995
Page 3
1 Vice Chairperson Lundy suggested the issue could be discussed at the meeting Monday night at the RP&L
2 service building.
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4 Councilmember Allen commented that in looking over some of the information brought back from the APPA
5 conference she noticed that in one City in Ohio the electric utility participated in using its equipment while hanging
6 things during Christmas and does not charge for street lights. Huffman responded that in Ohio the municipal
7 electric utilities are not regulated, however, a few are regulated by the cities. He added that the IURC does not
8 permit that practice.Councilmember Allen pointed out that being under the IURC is something RP&L does by
9 choice. Huffman answered that it is the customer's choice.Councilmember McBride said Boatright has the right
10 idea and that is to study the issue and propose to the developers that they pick up the cost. Huffman reminded the
11 Board that they are talking about future projects,not about the 6,000 street lights already in place.
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13 Councilmember Parker reminded his fellow Board members that two months ago he asked the Planning
14 Department to look into what it would take to change the ordinance so Council could demand that the developers,
15 when they put in the driveways, would at least conduit under them,to save costs. Huffman said that might be
16 difficult because in many cases they don't know where the driveways will be located.
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18 ADJOURNMENT
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20 There being no further business,on a motion duly made,seconded and passed the meeting was
21 adjourned.
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I 27 Etta J. Lundy, Vice Chairperson
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32 ATTEST:_
33 Myra Miller, Deputy Clerk
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