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HomeMy Public PortalAbout06-05-1995 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, JUNE 5,1995 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, June 5, 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, Don McBride, Larry Parker, Gene Allen, Bob Dickman and Sally 5 Hutton. The following business was had to-wit: 6 7 APPROVAL OF MINUTES OF MAY 15,1995 8 9 Councilmember McBride moved to approve the minutes of the previous meeting as prepared, seconded by 10 Councilmember Parker 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 15 for payment,seconded by Councilmember Hutton and by unanimous voice vote the motion carried. 16 17 Bills Already Paid 18 Payroll and Deductions 221,904.48 19 Investments Purchased From: 20 Cash Operating Fund 3,200,00.00 21 Bond Sinking Fund 22 Utility Bond Reserve Fund 23 Depreciation Reserve Fund 817,049.26 24 Insurance Reserve Fund 201,628.71 25 Consumer Deposit Fund 26 Cash Reserve Fund 27 28 Group Insurance Fund Total Investments 4,218,677.97 29 30 Transfer to City in Lieu of Taxes: 31 32 Transfer from Cash Operating Fund to: 33 Depreciation Reserve Fund 34 for Property and Plant 35 Cash Reserve Fund for Payment 36 to City in lieu of taxes 37 38 Transfers from Depreciation Reserve to: 39 Cash Operating Fund 40 41 Transfers from Consumer Deposit to: 42 Cash Operating Fund 43 44 Transfers from Cash Operating : 45 Interest and Bond Principal 46 Bond Sinking Fund 47 Cash Reserve Fund 48 Utility Bond Sinking Fund 49 Depreciation Reserve Fund 50 Insurance Reserve Fund 51 Consumer Deposit Fund 52 53 Interest and Bond Principal 54 55 End of Month Petty Cash 56 Revenue Bonds 57 Interest Coupons Redeemed 58 Bond Coupons 59 Miscellaneous Bills Already Paid 1,540,706.70 60 Total prepaid invoices 5,981,289.15 61 Total Bills Not Paid 1,135,880.88 62 Grand Total 7,117,170.03 63 64 65 RP&L Minutes Cont'd June 5, 1995 Page 2 1 REMARKS BY CHAIRPERSON 2 3 There were none. 4 5 UNFINISHED BUSINESS 6 7 Councilmember Brookbank asked about the general manager's salary. Councilmember Donat responded that the 8 committee had arrived at a 3 percent raise. Councilmember Brookbank said she thought that was something all 9 the Council should discuss. Chairperson Elstro said that could be done at the next Council meeting or at the 10 meeting at RP & L on the fourth Monday. 11 12 STREET LIGHT REPORT 13 14 There was none. 15 16 REPORT BY GENERAL MANAGER 17 18 Filling in for General Manager Irving Huffman,who was out of town,was Herschel Philpot,financial manager of 19 RP& L,and Dale Norris. Philpot asked the Board for authorization to do emergency rehabilitation to the coal 20 unloading zone. Norris explained that RP&L replaced two 18-inch I-beams over the coal unloading area at a cost 21 of$12,485. He added that the tracks had to be taken up and the ties underneath in the yard had deteriorated. 22 Norris said they had obtained two bids to replace the ties with concrete and the money had already been 23 budgeted. One bid was for$38,000 and the other was for$56,000. He asked the Board for permission to do the 24 work for the lesser amount, noting that they had called in Black&Veach to make sure the work would be done 25 right. Black&Veach recommended that more steel be put in and that raised the price about$3,600,then when 26 they got to the tracks,they did not feel safe putting them back into the concrete so they decided to put new tracks 27 in for another$6,000. Norris said those changes had raised the bid to around$46,000 which was still under the 28 other bid and well within the budget. Councilmember McBride moved to authorize the emergency work, second by 29 Councilmember Brookbank and the motion was carried on a unanimous voice vote. 30 31 Philpot read the bids for the step up transformer, a bucket truck, underground cable puller and an air compressor. 32 He said these were published in the Palladium-Item May 18 and May 25 and asked for a motion to accept the 33 proof of publication. Councilmember Hutton so moved, second by Councilmember Allen and the motion was 34 carried on a unanimous voice vote. 35 36 Two bids were received for the step up transformer.The first was from ABB for$549,895 and the second was 37 from Magnatech for$547,741. Bids for the bucket truck totaled three and were received from TIECO for$63,496, 38 Liftall for$57,989 and ALTECH submitted two, one for$62,060 and the other for$60,988. Philpot said the cost 39 would depend on the chassis. 40 41 Two bids were received for the cable puller.The first,from Carey Corem for$35,800 and the second from 42 Sherman Riley for$35,200. Only one bid was received for the air compressor and that was for$12,792. 43 Councilmember Donat moved to refer the bids to the general manager for tabulation, evaluation and 44 recommendation, second by Councilmember Hutton and the motion was carried on a unanimous voice vote. 45 46 NEW BUSINESS 47 48 Councilmember Allen stated that she wanted to verify that Huffman's contract expires in July 1996 and that the 49 Board needs to notify him a year in advance if it is not going to renew that contract. She said she felt the Board 50 needs to discuss that before the end of July this year. 51 52 Councilmember Brookbank said she feels cable TV will be a campaign issue this fall and asked Councilmember 53 Lundy to bring back any information available from any kind of workshop on cable in the municipality offered at 54 the upcoming APPA conference in Seattle,Wash. 55 56 Councilmember Allen said that she read in a newsletter articles written by Michael Craycraft and Jeffrey Jackson 57 noting records that may or may not be disclosed which included test questions, other examination data,test 58 scores if the person's name is identified, personnel files of public employees and applicants for public 59 employment. She said in light of what has happened before,there needs to be a policy of the utility as to how they 60 view that. She suggested the Board seek an attorney's advice on having such a policy. Councilmember Allen 61 added that she feels the Board needs some sort of committee responsibilities, adding that she thinks it does not 62 seem right that the finance committee discussed the raise for the general manager. She said in most 63 organizations that responsibility lies with the human resources committee. She stated that committee 64 responsibilities should be laid out so that everyone knows what the responsibility of each committee is. 65 RP&L Minutes ConfD June 5, 1995 Page 3 1 Councilmember Dickman said he had, at random, pulled an invoice for$60,000 worth of wire and asked Philpot if 2 he gave it to him whether or not he could give the Board a real summary of who the other bidders were and what 3 the amounts were that they bid. He also stated that RP&L keeps an inventory of coal of little over$2 million and 4 asked if that much is needed, asking if RP& L could operate with $1 million in inventory and the other million in 5 the bank earning interest. 6 7 Norris responded that RP& L has started to burn off the pile and reminded the Board that a little more than a year 8 ago there was talk of a strike and RP&L prepared for one. He said the utility is now in the process of slowly 9 downgrading but has to be careful in what it does because it is under stricter rules now than it was 10 years ago. 10 Philpot said 56 ton of coal is an adequate supply. Norris stated that both units were ready for the summer burn. 11 12 Councilmember Lundy stated she had several questions about the personnel policy which incuded what it should 13 be and the Board's duties. She said it is not clear to her what the Board's job is, adding that either a new policy 14 needs to be made or the old one clarified. 15 16 Philpot said once the utility puts 900 ton of coal up it has to be burned, noting that about 1,000 ton is burned on a 17 normal day. In answer to a question by Councilmember Dickman about what percentage of inventory is totally 18 unusable, both answered that it was very small. 19 20 ADJOURNMENT 21 22 On a motion duly made, seconded and passed and carried on a unanimous voice vote,the meeting was 23 adjourned. 24 25 26 27 28 29 30 Howard "Jack"Elstro, Chairperson 31 32 33 ATTEST: 34 Norma Carnes, City Clerk 35 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