HomeMy Public PortalAbout11-01-1993 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. NOVEMBER 1. 1993
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, November 1, 1993, in the Municipal
3 Building in said City. Councilperson Brookbank presided with the following Councilmembers in attendance:
4 Elstro, Lundy, Donat, McBride, Parker,Allen, Dickman and Hutton. The following business was had to-wit:
5
6 APPROVAL OF MINUTES OF OCTOBER 18.1993
7
8 Councilmember McBride moved to approve the minutes of the previous meeting as prepared, seconded by
9 Councilmember Hutton and on unanimous voice vote the motion was carried.
10
11 APPROVAL OF BILLS. INVESTMENTS AND TRANSFERS
12
13 Upon recommendation of the Finance Committee, Councilmember Allen moved to approve the following bills for
14 payment,seconded by Councilmember Dickman and on unanimous voice vote the motion carried.
15
16 Bills Already Paid
17 Payroll and Deductions 212,629.07
18
19
20
21 Investments Purchased From:
22 Cash Operating Fund 2,100,000.00
23 Bond Sinking Fund
24 Utility Bond Reserve Fund
25 Depreciation Reserve Fund 91,000.00
26 Consumer Deposit Fund
27 Cash Reserve Fund 137,500.00
28 Insurance Reserve Fund
29 Group Insurance Fund
30 Total Investments 2,328,500.00
31
32
33 Transfer to City in Lieu of Taxes
34 From Cash Operating Fund to
35 Cash Reserve Fund to: 137,500.00
36
37 Transfer from Payroll Ded.to:
38 Cash Operating Fund
39
40 Transfers from Depreciation Reserve to:
41 Cash Operating Fund
42
43 Transfersirom Consumer Deposit to:
44 Cash Operating Fund
45
46 Transfers from Utility Bond Reserve Fund to:
47 Bond Sinking Fund
48
49 Transfers from Cash Operating :
50 Interest and Bond Principal
51 Bond Sinking Fund
52 Cash Reserve Fund
53 Utility Bond Sinking Fund
54 Depreciation Reserve Fund 91,000.00
55 Insurance Reserve Fund
56 57
Consumer Deposit Fund
Interest and Bond Principal
58 End of Month Petty Cash
59 Revenue Bonds
60 Interest Coupons Redeemed
61 Bond Coupons
62 Miscellaneous Bills Already Paid 1,296,817.37
63
64 Total Prepaid Invoices 4,066,446.44
65
Total Bills Not Paid 530,819.14
Grand Total 4,597,265.58
•
RP&L Minutes Cont'd
November 1, 1993
Page 2
1 REMARKS BY THE CHAIRPERSON
2
3 Chairperson Brookbank said she had followed up on the discussion of the general manager's car which was held
4 at the Board's meeting at the RP & L service building and discovered that General Manager Irving Huffman had
5 not given the Board all of the quotes. She said she learned that the bid on the Mercury Marquis was not the low
6 bid. She noted the quote from Hoosier Olds, one for a 98 and the other for an 88. Huffman responded,
7 commenting that the bid for the 88 did not meet the specifications that he had laid out for the car, adding that he
8 had not read that bid because of that. When Chairperson Brookbank asked for the specifications, Huffman
9 answered that they were quite lengthy, two pages, and he did not have them with him. Chairperson Brookbank
10 said she had received several telephone calls prompted by the expensive car the Board approved, adding that
11 she felt it was improper for Huffman to bring it before the Board and not have time to look into it beforehand.
12
13 Chairperson Brookbank said she couldn't remember whether or not the remodeling of the auditorium had been
14 included in the budget. Huffman said it had appeared in different forms, explaining that money had been allocated
15 for the remodeling. He explained that changes are being made in the ceiling to make room for a projector and
16 screen similar to what is already in the conference room, adding that the reason for that is from an educational
17 standpoint and to accommodate larger groups. Chairperson Brookbank commented that the Board is supposed to
18 see anything over$25,000 and this remodeling came in at $32,000. She added that several of the members were
19 unhappy that Huffman did not bring this before the Board. Huffman answered that there is nothing in this project
20 that hasn't been approved and there is nothing over$25,000.
21
22 UNFINISHED BUSINESS
23
24 None
25
26 STREET LIGHT COMMITTEE REPORT
27
28 Councilmember McBride reported that he had a request for four 150-watt sodium street lights in the area of South
29 L and South M Streets between South 8th and South 9th Streets which would run the City around $42.50 more a
30 month for street lights. He said he would take the request to Robert Hankosky,distribution engineer at RP & L,tell
31 him of this Board's approval and ask him to submit the request to the Board of Works for its approval and action.
32
33 REPORT BY GENERAL MANAGER
34
35 Huffman reported that he had received four bids for a 55-foot material handling aerial device bucket truck and
36 asked the Board's approval of the publisher's affidavit that it had been properly advertised in the newspaper on
37 October 21 and October 28. Councilmember McBride moved to approve the proof of publication as submitted,
38 second by Councilmember Parker and the motion was carried on a unanimous voice vote.
39
40 Opening the first bid, Huffman announced it was from AL TECH Utility Equipment and Body Co. However, after
41 checking through it thoroughly he was unable to find a bid.A representative from the company who was in the
42 audience also checked the packet but found no bid. In answer to a question posed by Councilmember Parker,
43 City Attorney Thomas Milligan said it constituted a defective submission of bid and it was not proper to award it.
44 He added that it was to have been submitted in writing and by a certain time which meant that it does not meet
45 the qualifications.The second bid opened was from Delphi Body Works for$109,991, minus$12,500 for a trade
46 in allowance, bringing the total to$97,491 with an estimated delivery time of 90 days after receipt of the chassis.
47 The third bid opened was from TECHO Inc.of Indianapolis for$116,223, minus$11,400 for the trade allowance,
48 bringing the total to$104,823. Huffman added that the bid included a five percent Indiana sales tax of$5,241.15,
49 bringing the total bid to$110,064.15, noting that the estimated delivery date was 90 to 120 days after receipt of
50 the purchase order or 45 days after receipt of the trucker body.The fourth and final bid opened by Huffman was
51 from Deuco Co.of Waukausha,Wis.for$129,686,with a trade in allowance of$11,500,bringing the total to
52 $118,186 with a delivery date of 150 to 180 days after receipt of the order. Huffman asked that the bids be turned
53 over to him for evaluation,tabulation and recommendation. Councilmember McBride so moved,second by
54 Councilmember Parker and the motion was carried on a unanimous voice vote. _
55
56 Huffman said he had one thing he wanted to discuss about the pension plan but due to the lateness of the hour
57 and the fact that it had been indicated that it should not be on the agenda at this time he had sent the information
58 out to all the Board members. He invited questions from the Board, noting that Jim Daugherty was in the audience
59 and would be glad to respond. Huffman said the intent is to continue what they did last year,to make it an extra
60 benefit for the RP& L employees. Councilmember Allen said she had talked with Daugherty by telephone and
61 had questioned as to whether or not the man from Principal should have met with the Board as well as
62 management. Huffman responded that the people from Principal had come from Des Moines, Iowa and their visit
63 was strictly for the purpose of getting acquainted. Councilmember McBride said he,too, had telephoned
64 Daugherty because his concern was that the people prior to 1986 were not considered. Huffman responded that
65 everyone is receiving the same amount percentage-wise.
, RP&L Minutes Cont'd ,
November 1, 1993 •
Page 3
1 Chairperson Brookbank said she had only received a letter, adding that surely there was more information and
2 she feels the Board as a body should have a copy of the plan that the company provided for the management of
3 RP& L.Huffman said he will provide the Board with all the information RP& L has, noting that the letter explains
4 what was done last year and what is being carried through this coming year. He said last year another three
;; percent was added to what had been there the year before and the same thing will be done this year. He said
6 next year it is hoped that the information will be a bit more detailed and at that time the Board will be made a party
7 to that information. He added that, at that time,there will be a general liberalization of the plan altogether.He said
8 this is just a continuation and addition of an additional amount.
9
10 Councilmember Allen said if she understood Daugherty correctly,there was a bonus of three percent to retirees in
11 1991, a bonus of six percent in 1992 and this proposal is for a bonus of nine percent.Also, it is to be taken out of
12 the plan assets. Huffman said this is a method to regulate the growth of the plan,to keep the reserves down.
13 Councilmember Allen asked if this amount will come out of the$5 million and Huffman said it would with some
14 other contingencies which can be discussed at a later date. Huffman explained that what is being proposed is that
15 the first time to give three percent to all employees who had retired and if they are retired less than one year it is
16 to be pro-rated back.Then,if the person had received the three percent the year before he or she would get six
17 percent and those who had not received it would get three percent.And,on this one, if the employee received the
18 six percent then he or she, in turn,would get nine percent. He referred to it as a one shot bonus. He said the plan
19 is used as a form of a regulator, noting that they had a definite amount going into the plan and a specified amount
20 to be paid out. He added that those funds are earmarked by contract for the employees.
21
22 President Lundy said she had several questions and requested that Daugherty explain it to all of them at the
23 same time. Huffman said Daugherty would be glad to attend the next meeting.
24
25 Councilmember Dickman said he attended a meeting at the request of Bill Clarke, RP&L assistant manager,on
26 Wednesday,October 27 at RP& L, and during that meeting Clarke was terminated without cause by Huffman.
27 He said considering the fact that Clarke was hired in a verbal commitment by Huffman and was due to be the next
28 general manager subject to Board approval, and the fact that he had moved his family to Richmond from Kansas
29 to accept the position, he moved that his severance compensation should include that his salary benefits be
30 continued until the anniversary date of his verbal annual contract of employment which is through March 25, 1994.
31 Councilmember Elstro disagreed,commenting that this isssue is strictly a personnel matter with Huffman and it
32 does not concern the Council. Councilmember Allen seconded the motion made by Councilmember Dickman.
33
34 Councilmember Donat said this Board cannot intervene in personnel matters because its members serve as
35 policy makers only and personnel matters are not in their jurisdiction.Councilmember Dickman commented that
36 he is not asking that personnel matters be discussed. Milligan said Councilmember Dickman's motion is in order
37 and Councilmember Donat is wrong. He explained that everything the general manager does is subject to review
38 of this Board. He said it is within the general manager's statutory authority to terminate employees without notice
39 and without cause and he has done that with regard to Clarke. He added that the only employee of the City,at
40 RP& L,who has to have notice and terminated with cause is the general manager except those persons in the
41 bargaining unit who are protected under that agreement.That means that Huffman had authority to terminate
42 Clarke,which he has done, Millgan said, but it is up to this Board to approve all contracts and it is in a position to
43 review any contractual commitments. Milligan said it is perfectly proper for this Board to set the termination
44 package and severance arrangements for Clarke.
45
46 Councilmember Hutton suggested that since the state statute allows the Board to legally talk about this in
47 executive session that is the place where this discussion needs to take place. She said at this point Board
48 members don't know the facts,what has been offered and what hasn't. Councilmember Elstro said Attorney
49 Charles Braddock was in the audience and he asked him to give his version of this issue. Chairperson Brookbank
50 noted that Braddock is not the City Attorney. Councilmember Donat said Braddock is here at her request, noting
51 that he is her attorney with financial backing by the Concerned Citizens Coalition, many of whom have come to
52 the meeting.
53
54 Chairperson Brookbank asked Braddock to introduce himself,telling who he is hired by,where he is from and how
55 much he makes per hour. In doing so, he stepped to the lecturn, saying his name is Charles Braddock and he is
56 an attorney from Anderson. He added that he had been retained by Councilmember Donat to give advice to her
57 on the issue laid before the Board by Councilmember Dickman.He said he would concur in what Milligan said, in
58 that this is a personnel matter,stating that Huffman has the right to take the action. However, he said he would
59 caution the Board that the motion made by Councilmember Dickman may be a proper motion at a future date,
60 adding that this is a personnel matter and the statute does provide that this Board can go into executive session
61 to discuss that. He said he would urge the Board to follow that statute,giving proper notice to the press and to
62 everyone to receive the facts if the Board wishes to review the decision or take the action Councilmember
63 Dickman is proposing. He said if the Board does the latter before it receives the review of Huffman's action it may
64 very well be setting a dangerous precedent for itself in all future personnel matters if it allows itself to be brought
65 into a review before all the facts are known.
•
•
•
RP&L Minutes Cont't
November 1, 1993
Page 4
•
•
1 Braddock urged Board members to review Councilmember Dickman's motion carefully or table it.Chairperson
2 Brookbank said there is a motion and a second on the floor. Councilmember Parker asked that if this Board sets
3 severance for this incident does it mean it will set it for everyone. Milligan said that would not be the case,noting
4 that it is a matter of policy for this Board and it is in a position to overrule the general manager with regard to
5 whatever severance package they wish to offer in any particular situation.This Board shares the responsibility, he
6 said,for the assets that belong to the citizens of this City as directors of this light plant and has no separate
7 standing other than that by ordinance it is the supervisory board of the utility and the utility has no separate
8 corporation entity. He said it cannot be sued or cannot sue in its own name. He said those guidelines are fairly set
9 out and the Board is in a position tonight to act on Councilmember Dickman's motion which is properly before it.
10
11 Councilmember Lundy said it was stated that Clarke was fired without cause,but some of the Councilmembers are
12 not sure, and as far as the talk about figures for 1994 she's not sure what they are talking about. Huffman
13 commented that this is a personnel matter and he would refrain from divulging any figures. Councilmember Lundy
14 said she felt the executive session would be in order.Chairperson Brookbank set that meeting fro 7 p.m.Thursday,
15 November 4, either in the Board of Works room or Council Chambers,whichever one is available. Councilmember
16 Elstro asked who would be attending that meeting. Chairperson Brookbank answered that all the Councilmembers
17 would be there as well as Milligan. Councilmember Elstro said he should have the right to bring his attorney,
18 however, Milligan responded that he would have no right to be there, adding that he (Milligan) is the City Attorney
19 and he will represent this Board as he always has,giving legal advice. Councilmember Donat asked Milligan if he
20 had given counsel to Clarke. Milligan answered that he had been involved in discussing with Clarke this issue and
21 Clarke had invited Milligan to the meeting because when Councilmember Dickman was first contacted he was
22 unable to attend. However, Huffman refused to permit Milligan to attend. Milligan added that he is available to
23 attend any meeting on behalf of any city employee as long as it is conducting city business. Councilmember Donat
24 said Milligan had compromised himself as RP & L attorney by meeting with Clarke. Milligan responded that
25 Councilmember Donat is entitled to her opinion and he is not stepping down, adding that he is the City Attorney and
26 will continue to function in that role. Councilmember Donat asked Braddock to return to the lecturn to address that
27 issue.
28
29 Braddock said the issue is of a sensitive nature, noting that by Milligan's own admission he met with Clarke. He
30 said Milligan may have discussed this matter with Clarke and it is up to the Board as to whether or not he has
31 compromised himself. Milligan said he has discussed this issue with Councilmembers, Clarke and other City
32 employees, adding that he will continue to discharge his duties as City Attorney in the City of Richmond and he
33 would be happy to meet with Braddock to discuss it with him.
34
35 Councilmember Donat asked Milligan whether or not he told the Board members that they could hire their own
36 attorney with a majority vote if they paid for it themselves. Milligan said he did not and no vote is involved.He
37 added that this body as a Board cannot hire counsel and what Councilmember Donat is referring to is that as a
38 Common Council they can but as a Board they can not. He said this Board as a body has an attorney designated
39 by statute and that is the City Attorney, appointed by the Mayor. Chairperson Brookbank commented that it had
40 taken a long time for this Board to realize that the City Attorney was the attorney for RP& L,adding that for years
41 this Board was convinced that Huffman could call in any attorney he wanted and he got by with it for years.
42
43 Councilmember McBride said that when RP& L was talking about cable TV, Clarke was one of the most
44 knowledgeable engineers making presentations,then he asked Huffman what happened that deteriorated his
45 relationship with RP&L. Huffman said cable TV had nothing to do with it. He said this is a personnel problem and
46 he would not discuss anything pertaining to Clarke in a public session but would be happy to discuss it individually.
47 Councilmember McBride asked if he would discuss it in the executive session and Chairperson Brookbank
48 interjected that Huffman would not be there,to which Huffman responded that he would at least like to defend
49 himself.Chairperson Brookbank said the two Councilmembers who were at the earlier meeting would be there and
50 Huffman said they were not privey to all the information, adding that he is the only one able to present that.
51
52 Councilmember Allen read a legal notice stating that because of the rate tracker the rates as of January 1 are going
53 to be lowered and that is because of the purchase power cost from the Indiana Michigan Electric Co. Huffman said
54 it is the purchase cost that RP& L pays to IMPA, adding that at this period it is going to be decreased and every
55 three months it is adjusted to reflect the ratetracker. He added that in this time period it will go down but probably in
56 the next three months it will go up. Councilmember Dickman commented that he would withdraw his motion until
57 Thursday night's executive session.
58
59 ADJOURNMENT
60
61 There being no further business,on a motion duly made,seconded and passed the meeting was adjourned.
62
63
64
65
Jane Brookbank,Chairperson
ATTEST:
Norma Carnes, City Clerk