HomeMy Public PortalAbout01-17-1995 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
TUESDAY. JANUARY 17.1995
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. Tuesday, January 17, 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: Etta Lundy, Jane Brookbank, Mary Ellen Donat, Don McBride, Larry Parker,
5 Gene Allen, Bob Dickman and Sally Hutton. The following business was had to-wit:
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7 APPROVAL OF MINUTES OF JANUARY 3.1995
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9 Councilmember Donat moved to approve the minutes of the previous meeting and special meeting as prepared,
10 seconded by 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 Hutton moved to approve the following bills for
15 payment,seconded by Councilmember Lundy and by unanimous voice vote the motion carried.
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17 Bills Already Paid
18 Payroll and Deductions 222,605.02
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21 Investments Purchased From:
22 Cash Operating Fund 1,100,000.00
23 Bond Sinking Fund
24 Utility Bond Reserve Fund
25 Depreciation Reserve Fund 4,131,600.68
26 Insurance Reserve Fund
27 Consumer Deposit Fund
28 Cash Reserve Fund 208,115.31
29 Group Insurance Fund
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31 Total Investments 5,439,715.99
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34 Transfer from Cash Operating Fund to
35 Cash Reserve Fund for
36 Payment to City in lieu of Taxes 161,500.00
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38 Transfer from Cash Operating Fund to;
39 Depreciation Reserve Fund for
40 Property and Plant 91,000.00
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42 Transfers from Depreciation Reserve to:
43 Cash Operating Fund _
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45 Transfers from Consumer Deposit to:
46 Cash Operating Fund
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48 Transfers from Utility Bond Reserve Fund to;
49 Bond Sinking Fund
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51 Transfers from Cash Operating ;
52 Interest and Bond Principal
53 Bond Sinking Fund
54 Cash Reserve Fund
55 56
Utility Bond Sinking Fund
Depreciation Reserve Fund
57 Insurance Reserve Fund
58 Consumer Deposit Fund
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60 Interest and Bond Principal
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62 End of Month Petty Cash
63 Revenue Bonds
64 Interest Coupons Redeemed
65 Bond Coupons
Miscellaneous Bills Already Paid: December 182,992.61
January 1,919,944.88
Total prepaid invoices 8,017,758.50
Total Bills Not Paid 1,035,584.78
Grand Total 9,053,343.28
RP&L Minutes Cont'd
January 17, 1995
Page 2
1 REMARKS BY CHAIRPERSON
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3 Chairperson Elstro stated that he had distributed the new committee assignments for 1995. They were: Mary
4 Ellen Donat, Chairperson of the finance committee, along with Bob Dickman, Sally Hutton and Don McBride; Etta
5 Lundy as Chairperson of the employee relations committee, along with Larry Parker and Jane Brookbank; Mary
6 Ellen Donat as Chairperson of the street lighting committee,serving with Geneva Allen.
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8 Chairperson Elstro reminded Board members of the meeting at 7 p.m.January 23 in the service building at RP&
9 L. Councilmember Dickman asked what was on the agenda and Councilmember Hutton said she understood they
10 were to go over the year-end report. General Manager Irving Huffman said he was concerned as to whether they
11 would have the billing from IMPA at that time.
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13 Directing her remarks toward Chairperson Elstro, Councilmember Allen said she had served on the street lighting
14 committee last year and there was not that much to do. She added that she felt like she would be more useful
15 either on the finance or employee relations committee because she has experience in both areas. Chairperson
16 Elstro said he would give that some thought.
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18 UNFINISHED BUSINESS
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20 Councilmember Brookbank commented that she was told that Chairperson Elstro and General Manager Irving
21 Huffman went to Indianapolis to try to settle the EPA lawsuit several weeks ago and asked what kind of report
22 they had.
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24 Huffman said nothing was accomplished, adding that RP & L has essentially been negotiating with itself. He said
25 EPA came back with a recommendation to lower their request from $2.5 million to$750,000 which, Huffman said,
26 is not a good arrangement and was not accepted. He added that the case will probably end up in court. He said
27 RP & L is still saying it doesn't have a problem but is willing to pay some expenses to avoid going to court. He
28 added that they are looking at a settlement figure in the neighborhood of what the trial expense will be, noting that
29 he can't see how they can exceed what RP&L has already agreed to pay.
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31 Councilmember Dickman asked where the Board stands in this process, adding that this is the first time he, as a
32 Board member, has heard that there had been recent negotiations. Huffman stated that City Attorney Thomas
33 Milligan had brought the Board up to speed as to the status of the negotiations several months ago and he was
34 present at these latest negotiations.
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36 Huffman said that as far as making a settlement offer, that is arrived at with the advice of the RP & L attorneys
37 which also includes Milligan. He said they could have come back and checked with the Board before they made
38 some sort of offer but in order to expedite the issue they needed the freedom to do what had to be done.
39 However, he said, before any final settlement is made it is always contingent upon this Board's approval and the
40 EPA approval.
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42 Councilmember Dickman stated that he felt the Board should be informed, noting that they as Board members
43 had not heard anything since the meeting held three months ago. Councilmember Brookbank said at a previous
44 Board meeting it was discussed about giving Huffman a cap to work with when he went to the negotiations but no
45 action had been taken.
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47 Chairperson Elstro commented that he had received a letter from Huffman stating that Councilmember Brookbank
48 had expressed a desire to meet with him to discuss public relations at RP & L but that meeting had not taken
49 place.Councilmember Brookbank said she, herself, had only gotten the letter last week.
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51 STREET LIGHT COMMITTEE REPORT
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53 Councilmember Brookbank said she had forwarded the request made by Oak Park residents to Andy Boatright,
54 chief engineer at RP & L, and asked him to step forward. He reported that the petition had been forwarded to the
55 street light engineer, adding that it would no doubt be spring before it would be started. He said it will require
56 underground construction.
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58 MISCELLANEOUS BUSINESS
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60 There was none.
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62 REPORT BY GENERAL MANAGER
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64 Huffman asked the Board for authorization to take bids for a 4-door four-wheel drive utility truck which is written
65 into the budget. He said the trade in is a 1984 Chevrolet Cavalier.Councilmember McBride so moved,second by
Councilmember Parker and the motion was carried on a unanimous voice vote.
RP&L Minutes Cont'd
January 17, 1995
Page 3
1 Huffman said he had received three conflict of interest statements,adding that he needed the remaining ones, if
2 there are any, by tomorrow.
3
4 Councilmember Dickman asked Huffman what the difference is in steam coal and crushed coal. Huffman said
5 steam coal is what is used to generate steam.Councilmember Dickman said he noticed, in going over the bills
6 prior to tonight's meeting that steam coal is about half the cost of crushed coal. Huffman said coal will vary a lot as
7 far as content, noting that contract coal tends to be a higher price because you are not only buying that ton of coal
8 but buying future reserves. Councilmember Dickman also questioned a legal bill for around $12,000 in connection
9 with the Northwest Annexation. Huffman explained that any change of territories has to be approved by the
10 Indiana Utility Regulatory Commission and that requires a tremendous amount of information to be collected
11 which adds up to quite a bit of expense in attorney fees for filing and making up the briefs.
12
13 Councilmember Allen commented that contract coal is very expensive and asked Huffman if RP&L always has a
14 contract when it has an ample supply of coal. Huffman answered that there is a stipulation in RP&L's contract
15 that 80 percent of its coal will be contract coal and the other 20 percent can be purchased from the spot market. In
16 answer to a question by Councilmember Lundy about fly ash, Huffman said RP&L had shipped some to northern
17 Ohio for experimental purposes by one industry and to another one, also in Ohio,so the use of fly ash is being
18 investigated. He added that until RP& L gets a contract signed for somebody to take the fly ash, it is an open
19 thing. He said as long as RP& L is shipping ash like it is now, it is to their advantage, but they don't have a
20 complete contract.
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22 ADJOURNMENT
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24 There being no further business,on a motion duly made,seconded and passed the meeting was
25 adjourned.
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32 Howard"Jack"Elstro, Chairperson
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36 ATTEST:
37 Norma Carnes, City Clerk
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