HomeMy Public PortalAbout08-07-1995 PROCEEDINGS OF THE COMMON COUNCIL OF THE
CITY OF RICHMOND,INDIANA,SERVING AS A BOARD
IN CHARGE OF THE OPERATION OF THE RICHMOND POWER& LIGHT PLANT
MONDAY, AUGUST 7,1995
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,August 7, 1995, in the Council Chambers
3 in said City. Chairperson Howard "Jack" Elstro presided with the following Councilmembers in attendance: Etta
4 Lundy, Jane Brookbank, Mary Ellen Donat, Larry Parker, Gene Allen, Bob Dickman and Sally Hutton. Don
5 McBride was absent.The following business was had to-wit:
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7 APPROVAL OF MINUTES OF JULY 17,1995
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9 Councilmember Hutton moved to approve the minutes of the previous meeting as prepared, seconded by
10 Councilmember Donat 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
15 for 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 220,382.55
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20 Investments Purchased From:
21 Cash Operating Fund 1,700,000.00
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 28
Cash Reserve Fund 164,730.00
Group Insurance Fund
29 Total Investments 1,955,730.00
30
31 Transfer to City in Lieu of Taxes:
32
33 Transfer from Cash Operating Fund to:
34 Depreciation Reserve Fund
35 for Property and Plant 91,000.00
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37 Cash Reserve Fund for Payment
38 to City in lieu of taxes 164,730.00
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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
45
46 Transfers from Cash Operating :
47 Interest and Bond Principal
48 Bond Sinking Fund
49 Cash Reserve Fund
50 Utility Bond Sinking Fund
51 Depreciation Reserve Fund
52 Insurance Reserve Fund
53 Consumer Deposit Fund
54
55 Interest and Bond Principal
56
57 End of Month Petty Cash
58 Revenue Bonds
59 Interest Coupons Redeemed
60 Bond Coupons
61 Miscellaneous Bills Already Paid 1,606,646.09
62 Less EFT/Direct Deposit of Payroll (35,285.12)
63 Total prepaid invoices 4,003,203.52
64 Total Bills Not Paid 1.200.684.23
65 Grand Total 5,203,887.75
RP&L Minutes Cont'd
August 7, 1995
Page 2
1 REMARKS BY CHAIRPERSON
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3 There were none.
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5 UNFINISHED BUSINESS
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7 Councilmember Brookbank questioned Huffman about the merit increases at RP & L, especially those given to
8 Pam Broering and Andy Boatright. Huffman said the increases were given, in Broering's case, for her completion
9 of a B.S. Degree, and to Boatright for obtaining his professional engineer's license. The two disagreed on the
10 issue.
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12 Responding to a comment made by Councilmember Brookbank about being contacted by several business men
13 about not having a No. 2 person at RP & L, Huffman said the utility is operating today with extremely qualified
14 people. He mentioned Dale Norris, the manager of power production; Andy Boatright, manager of engineering
15 and operations; Herschel Philpot, financial manager; John Nils, manager in the purchasing area; and Tim
16 Broering, manager of information systems, who has three backup people who have degrees in computer science;
17 and Jim Daugherty, manager of human resources. He added that all these people have been in place for many
18 years and are capable of keeping the operation going in his absence. He said, however, although RP & L is well
19 staffed he does want to get somebody on board for the No. 2 position because it is an important job, running a
20 $42 million a year business and 157 employees and a $5 million payroll. He said RP & L makes a tremendous
21 financial impact on the Richmond community.
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23 Councilmember Brookbank also questioned Huffman about the lease agreement with Purina Mills. She said she
24 called Jon Ford, the Purina manager, and he said he was happy with it. Her question to Huffman was whether or
25 not he would have any more similar surprises before the end of the year. Huffman said in that instance it was
26 imperative to move on it quickly.
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28 Councilmember Lundy said that she and each of her fellow Councilmembers were given a policy making book in
29 1993 and that would be the book they would use in updating the policy making procedure for this Board and RP&
30 L. She suggested they start reading the book and familiarizing themselves with it. She noted that there is also a
31 handbook called The Policymakers and suggested they look at that and highlight what they want to keep in it and
32 what they want to delete. She said she would let them know when it is time to start making the changes.
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34 STREET LIGHT REPORT
35
36 There was none.
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38 APPA CONFERENCE REPORT
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40 Councilmembers Donat and Lundy presented reports on the APPA Conference they attended recently, along with
41 Chairperson Elstro, in Seattle, Wash.
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43 Councilmember Donat stated that, in her opinion,the conference is the only opportunity for RP& L Board
44 members to receive agenda free or unbiased training, overviews of issues that are affecting the power industry
45 today and in the future and the training is current,topical, reliable and trustworthy.The key to this conference, she
46 said,seemed to be marketing, adapting and public relations.She said it was suggested that the utility have a
47 public relations department of its own and it was noted that marketing does not mean advertising. She said all
48 employees are marketers and should be responsive as well as responsible.She said the utility should determine
49 customer needs and combine billing with marketing.
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51 Communicating the benefits of public ownership was brought out in one of the forums, she said, noting that the
52 person in charge stated that with retail wheeling coming utilities must have newsletters, brochures and public
53 relations to communicate to everyone. It was suggested to establish a public power week such as an open house
54 and secure a media relations person who can answer all editorials as well as establish a speakers bureau.
55 Councilmember Donat said RP & L needs to promote its mission which is to provide the best service at the lowest
56 cost.
57
58 Going to the conference knowing that retail wheeling is a threat, Councilmember Lundy said she attended the
59 sessions which were pertinent to that issue. She said the session entitled"Building Customer Loyalty In A
60 Competitive Market"dealt with emphasizing keeping customers, price,value and quality. She said the utility
61 needs to find out what the customer wants and give it to them at the lowest price possible. She said she attended
62 a forum dealing with very important power users which gave the necessary steps and tools for building
63 relationships with key business decision makers. She said a handbook dealing with that issue will be out in the
64 fall. She said she also will ask Huffman to purchase a pamphlet entitled "Payment In Lieu Of Taxes And Other
65 Contributions To Local Government." In answer to a question by Councilmember Brookbank, Councilmember
Lundy said there were no sessions at all on cable TV.
RP&L Minutes Cont'D
August 7, 1995
Page 3
1
2 COMMENTS BY GENERAL MANAGER
3
4 Huffman commented on retail wheeling and what is happening in states that already have it. He added that a is
5 not afraid of it, adding that RP& L has been contacting its industrial customers and is going to keep on doin that.
6 He said he has been finding out some information which he will bring to the next RP&L meeting, noting that it is
7 false information which he is going to bring out.
8
9 He opened two bids for the network backup substation construction project, noting it was advertised in the
10 Palladium Item on July 20 and July 27. Councilmember Brookbank moved to accept and file the proof of
11 publication,second by Councilmember Hutton and the motion was carried on a unanimous voice vote.
12
13 Opening the first bid, Huffman said it was from Oberle&Associates of Richmond for$349,000.The second id,
14 he said,was from L.E Meyers Co.of Indianapolis and was for$314,202. Huffman asked that the bids be ref rred
15 to him for tabulation, evaluation and recommendation. Councilmember Hutton so moved,second by
16 Councilmember Parker and the motion was carried on a unanimous voice vote.
17
18 Huffman commented that David McIntosh,representing the second district in the House of Representatives 1
19 Washington, D.C., had expressed an interest in coming to Richmond and talk about different things,one of hich
20 is the EPA lawsuit that was only recently settled.
21
22 ADJOURNMENT
23
24 On a motion duly made, seconded and passed and carried on a unanimous voice vote,the meeting was
25 adjourned.
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32 Howard"Jack" Elstro, Chairperson
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38 ATTEST:
39 Norma Carnes, City Clerk
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