HomeMy Public PortalAbout10-18-1993 PROCEEDINGS OF THE COMMON COUNCIL OF THE
CITY OF RICHMOND,INDIANA.SERVING AS A BOARD
1N CHARGE OF THE OPERATION OF THE RICHMOND POWER& UGHT PLANT
MONDAY.OCTOBER 18.1993
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, October 18, 1993 in the Municipal
3 Building in said City. Chairperson Brookbank presided with the following Councilmembers in attendance: Elstro,
4 Lundy, Donal, Parker,Allen, Dickman and Hutton. Absent was Councilmember McBride.The following business
5 was had to-wit:
6
7 APPROVAL OF MINUTES OF SEPTEMBER 20 AND OCTOBER 4.1993
8
9 Councilmember Allen moved to approve the minutes of the previous meetings as prepared, seconded by
10 Councilmember Parker and on unanimous voice vote the motion was carried.
11
12 APPROVAL OF BILLS. INVESTMENTS AND TRANSFERS
13
14 Upon recommendation of the Finance Committee,Councilmember Allen moved to approve the following bills for
15 payment,seconded by Councilmember Parker and by unanimous voice vote the motion carried.
16
17 Bills Already Paid
18 Payroll and Deductions 210,272.33
19
20 Investments Purchased From:
21 Cash Operating Fund
22 Bond Sinking Fund
23 Utility Bond Reserve Fund
24 Depreciation Reserve Fund 1,227,015.43
25 Insurance Reserve Fund
26 Consumer Deposit Fund
27 Cash Reserve Fund 600,000.00
28 Group Insurance Fund
29
30 Total Investments
31 Transfer to City in Lieu of Taxes:
32
33 Transfer from Cash Operating Fund to:
34 Payroll Deduction Fund
35
36 Transfers from Depreciation Reserve to:
37 Cash Operating Fund
38
39 Transfers from Consumer Deposit to:
40 Cash Operating Fund
41
42 Transfers from Utility Bond Reserve Fund to;
43 Bond Sinking Fund
44
45 Transfers from Cash Operating;
46 Interest and Bond Principal
47 Bond Sinking Fund
48 Cash Reserve Fund
49 Utility Bond Sinking Fund
50 Depreciation Reserve Fund
51 Insurance Reserve Fund
52 Consumer Deposit Fund
53 Interest and Bond Principal
54 End of Month Petty Cash
55 Revenue Bonds
56 Interest Coupons Redeemed
57 Bond Coupons
58 Miscellaneous Bills Already Paid 127,697.96
59
60 Total Prepaid Invoices 2,164,985.72
61 Total Bills Not Paid 508,016.39
62
63 Grand Total 2,745,002.11
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RP&L Minutes Cont'd
October 18, 1993
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1 REMARKS BY CHAIRPERSON
2
3 Directing her comments to General Manager Irving Huffman, Chairperson Brookbank said she had a conversation
4 with one of his peers at the IMPA dinner recently and he had told her that in his city the light company is charged
5 for the use of the right of way for their street lights. She asked Huffman if he could expound on that. Huffman
6 responded that he had not heard of that but he supposed it was some kind of special thing that that particular city
7 may have. He noted that any time you add a fee to a utility company,whether it be a hidden tax or a direct fee, it
8 goes to the ratepayers. He added that he would have to think that the Public Service Commission would want to
9 look into that, however, he said, they may not have any jurisdiction over that part. Huffman went on to.comment
10 that he felt that practice would be detrimental to the ratepayer because it is a form of a hidden tax to the ratepayer
11 and he said he felt that most cities would not want to impose that kind of burden on the ratepayers.
12
13 Councilmember Elstro said if that would be the case the city would also do the same with the gas company,
14 telephone company and water company since they are utilities, too. Huffman said he thought Councilmember
15 Elstro was right,that if you charged one you would have to charge all, adding that anybody who wanted to use the
16 right of way facilities would get taxed. He said he would like to see the subject pursued by someone who is
17 familiar with utility franchising and utility right of ways because he would question as to what rights would be
18 available since there are streets controlled by the state and the city alike.
19
20 UNFINISHED BUSINESS
21
22 Chairperson Brookbank said several months ago she had asked if some of the old minutes of the meetings at the
23 RP & L service building could be transferred from the tapes and be put on hard copy. She asked Huffman if he
24 knew if his secretary had done that. He answered that he didn't know but would check on it. Chairperson
25 Brookbank said she was asking for specific minutes of some of the meetings concerning the cable TV issue in
26 1985 and added she would check her notes and contact Huffman's secretary herself.
27
28 STREET LIGHT COMMITTEE REPORT
29
30 None
31
32 REPORT BY GENERAL MANAGER
33
34 Huffman said bids had been openedat the Board's October 4 meeting for a five-passenger sedan,a 1994
35 four-door Tempo, and there had been only one bidder which was Fred First Ford with a bid of$11,683 with
36 delivery in six to eight weeks. He recommendedthe bid be awarded to the lowest and best bidder.
37 Councilmember Lundy moved to award the bid to Fred First Ford,second by Councilmember Parker and the
38 motion was carried on a unanimous voice vote.
39
40 Huffman noted that the second item of-business was to take bids for a 55-foot material handling aerial device,
41 otherwise known as a bucket truck. He said RP&L has a 1980 truck with a 1980 bucket,which makes it 13 years
42 old. He said that piece of equipment has to operate up and around high voltage equipment so it is necessary that
43 it be good and reliable. He indicated RP&L would like to change from a straight bucket truck and go to a material
44 handling aerial device,explaining that that is a bucket truck but is equipped with a jib on the end to hang
45 transformers weighing anywhere from 750 to 2,000 pounds. He said he would like to receive bids at the
46 November 1 meeting and noted that on the agenda is a motion requesting authorization from the Board.
47 Councilmember Parker asked about the old truck, noting that its future needs to be established now. Huffman
48 responded that-he left that open for the Board to decide, adding that the value is around$5,000.He said since it is
49 a bucket truck it could perhaps be adapted to tree trimming and would be a lot better than the big line truck the
50 City got from RP&-L earlier this year. He added that he felt that whatever value is placed on the old truck that the
51 Board should keep in mind that that value should be deducted from the cost of the new truck. Councilmember
52 Parker asked if it would be possible to ask for two bids and Huffman said he had done so, asking for a base bid
53 and deduction for the trade-in value.Councilmember Parker moved to allow Huffman to receive bids for the truck,
54 second by Councilmember Donat and the motion was carried on a unanimous voice vote.
55
56 Huffman gave the Board an update on the Whitewater Valley station, noting that work had been completed on
57 Unit No. 1 and it had been put on line. Currently Unit No.2 has been taken down for normal fall maintenance. He
58 said seven contractors are onsite,`with some crews having only a couple of-workers while others have several.
59 These contractors include Kennedy Tank which is doing work on the No.2 percipitator which involves$46,000
60 worth of material and the contractor cost is$83,604;Oberle&Associates is installing a new dribble plate on the
61 main conveyor;Wagner Smith is installing an underground duct bank;Trisco Co. is working on tying in the brick
62 and the areas of the.building,that have faulted,tying into the steel work; Inter Fab is replacing the tube shields in
63 the No.2 boiler;General Electric is installing the supervisory equipment on the No.2 turbo generator;and Ross
64 Hill is working on the variable frequency drive on the induced draft band of Unit No.2-which saves a tremendous
65 amount of horsepower.Huffman said RP& L is not only an asset to the community as asupplier of electrictiy but
it has a lot of people employed over and above the normal day to day work.
RP&L Minutes Cont'd
October 18, 1993
Page 3
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1 Councilmember Parker said that last week it looked like every community in Indiana was at RP& L at the
2 lineman's school, noting that the parking lot was full of trucks from all over the state. He said he felt that speaks
3 highly of the staff and the expertise at RP&L. Huffman said he likes to think that RP&L's school is more
4 attractive because it has its own people and suppliers coming in putting on the schools concerning the equipment
5 and the 15 instructors vary from its own people all the way to the manufacturer's representative. He said he feels
6 it is a boost to the economy in that while going to the school the 30 students have to stay here which means they
7 eat a lof of meals supplied by the local restaurants.
8
9 Councilmember Allen noted that Councilmember Parker had brought a person to the meeting who might be
10 interested in RP&L's fly ash, adding that she has always believed in utilizing that instead of spending money to
11 haul it away. Huffman said he hopes there is something that comes of it, adding that the Indiana Michigan Electric
12 Company had been working with marketing procedures of fly ash as early as 1930.He said the industry itself is
13 trying to find some way to utilize it and are looking into it as far as chemical content of the ash,so if it could be
14 bound up in a brick or concrete,that would be a good way to dispose of it. He said if fly ash is used in concrete it
15 gives a stronger bond because you utilize less water and you'll get a stronger mix making a good binder material.
16 He added that the industry is having a difficult time because not as much concrete is being used due to less
17 building and fewer roads being built.He said many of the states specify that fly ash be used in the concrete in
18 public projects but Indiana has avoided that because the contractors'associations don't want to bother with it.
19
20 Referring to a recent newspaper article, Chairperson Brookbank noted that there are three Councilmembers who
21 represent businesses which are members of the Chamber, more specifically Councilmember Lundy, Donat and
22 herself. She asked Huffman to respond to what differences in philosophy RP&L and the Chamber have.
23
24 Huffman said he,quite frankly,doesn't understand what they talking about in philosophy.Councilmember Elstro
25 interrupted, noting that he personally felt it isn't RP&L's problem but the Chamber's. He said in the last three or
26 four months most of the people who have appeared before Council have been leading Chamber members.He
27 said he agrees with Huffman in that he feels this past Council has done more than any organization to bring jobs
28 into the City. Huffman said he wanted to correct a false statement appearing in the Palladium-Item dated October
29 7, 1993,which stated that Jerry Easley, president and executive officer at the Richmond/Wayne County Chamber
30 of Commerce,said if RP& L does pull out of the Chamber the biggest effect would be the Chamber's push on
31 economic development. Huffman said he didn't recall anyone every discussing whether or not RP&L was going
32 to pull out of the chamber, adding that he felt that was a decision that should be made by this Board.
33
34 Huffman said Easley commented that everyone in the county is headed in the same direction in the economic
35 development efforts and it would be a shame for RP&L to go in a different direction because they have always
36 been a major player in the economic development. Huffman said RP&L has been the only player, noting that
37 membership in the Chamber has nothing to do with the ever present, active and enthusiastic role RP& L plays in
38 the industrial development in the Richmond area.He said the RP &L Board and the management team have
39 always supported the Richmond economic growth and development board since its founding in 1984 and are
40 currently supporting the present group. He said he resents the statement and false inuendos that RP&L is going
41 in a different direction and reminded the Board of the role RP& L played in Amcast, Hill's Pet Foods,Landis
42 Plastics, Primex Plastics and many other successful projects in Richmond, plus the active role the utility is playing
43 in all the current projects and proposed projects underway.
44
45 Huffman questioned the hidden agenda of Jan Passmore and Easley in making such statements and to imply that
46 RP&L may not cooperate in the future. He added that he thinks it is quite unfair of the newspaper to write about
47 how great RP& L is then in the same article imply that it is tearing the community up and it is not going in the right
48 direction. He said he thinks it is unfair for the Chamber to take that attitude and also the Palladium-Item.
49
50 Councilmember Dickman asked Huffman if the newspaper had always quoted him properly or had taken his
51 comments out of context. Huffman answered that this is an adult subject and when you start charging somebody
52 with these kind of inuendos you have to move out of the little kid playing and into the adult area. He added that he
53 feels that the reporting staff, and the editorial staff in this case, has a responsibility to the ratepayers of RP&L
54 and to the citizens of Richmond to be a responsible entity and report properly.Councilmember Dickman said he
55 agreed that RP& L has been a big supporter of economic development and a lot of it has been financial but they
56 haven't done it alone.They've had help from the employees and director housed in the City building.
57
58 Huffman said RP& L has always been a factor when it comes to discussing rates with customers just as the
59 Water Company and the Sanitary District are factors. He said he would like to think that the three probably do
60 more in the non-paying area to get industry to come into this area. He added that as far as the facility of the
61 economic development,that is paid out of the RP& L money along with the staff they have and the mailings they
62 make. He said RP& L has paid over the years for the brochures over an above the$150,000 it puts into the
63 facility. Councilmember Dickman asked Huffman if he felt that a lot of the projects have been in conjunction with
64 the Chamber,working together,such as in the case of the Amcast project. Huffman responded that he didn't think
65 the Chamber played much of a role and was not that much of a factor in the Amcast property or the Hill's Pet
Foods project.
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RP&L Minutes Conti -
October 18, 1993 • • •
Page 4 -
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1 Councilmember Donat asked if anyone from the Chamber had contacted Huffman personally after receiving
2 Clarke's letter.Huffman answered that he had had no contact with the Chamber in the past three or four years.
3 Councilmember Dickman questioned Huffman about a comment made by Easley who stated that he had talked
4 with Huffman personally asking if Clarke or someone from RP& L would want to be on the Chamber Board and he
5 got the impression that contact had been made in the last year or less. Huffman admitted that the conversation
6 Councilmember Dickman alluded to had taken place by telephone and had occurred about a year ago,but added
7 that was the only communication. Councilmember Dickman said he had understood from Easley that Huffman was
8 happy that the Chamber had called because he had not been invited to be a part of the Board for 25 years. He said
9 he seemed thrilled with the idea,according to Easley, and it seemed like they got started off on the right foot.Then,
10 the cable TV issue came along and apparently they got on different tracks and things haven't been right ever since.
11
12 Huffman said he felt the cable TV issue did not have anything to do with it, adding that because it is the Chamber
13 of Commerce it should be expected to take the business interest of people who would be affected by cable TV. He
14 added that as far as differences in philosophies are concerned,it goes back to attitudes. He said these go back to
15 the days of his predecessor, Earl Beck,and was some 25 years before Huffman became general manager which
16 was prior to the Chamber days when it was the Committee of 100. He said there had been some division or some
17 comments made between this Board and the Chamber. He noted that this attitude had been expressed at a
18 Chamber meeting which he attended,where it was stated that the Chamber was going to get certain things
19 accomplished and would put the pressure on the Board to get it done.Councilmember Dickman asked how many
20 years ago that had been and Huffman said it had probably been about ten.
21
22 Huffman said this has been and ongoing thing and the philosophy is still there.He said the pressure will be put on
23 the Board and the attitude is such that this Board doesn't know how to govern.He added, however,that RP&L has
24 been successful over all-these years under not only this Board but its predecessors and has built a tremendous
25 utility. Huffman said he feels the Board has done an excellent job. He said he feels that one of the advantages
26 obtained by trying to change a board,which is apparently coming out of the Chamber,is that it means you put
27 things back into the political arena as to who appoints this Board. He said he feels the voters would be hurt
28 because right now the voters are the ratepayers. Councilmember Dickman questioned Huffman's use of the term,
29 hidden agenda,asking why the Chamber would invite him or an RP& L representative to sit on the Board if they
30 had a hidden agenda. He said it sounds to him like the Chamber wants to work with RP& L and he doesn't
31 understand the basis for some of Huffman's claims. He suggested that perhaps Huffman should sit down with the
32 Chamber and discuss these things rather than make assumptions.Huffman responded that these are not just
33 assumptions and recalled being asked to come to the Chamber for a meeting with a couple of customers when
34 some people thought that RP&L would be looking for a rate increase and when he got there he was confronted by
35 25 people.He said it was misrepresented and the meeting was a bashing of RP& L and himself. He said he
36 remembered that during that same meeting one community leader stated that as long as RP&L had.that kind of
37 money in the reserves he was not going to see this City go down the drain.
38
39 Councilmember Donat said it was unfortunate that the letters written by Clarke and Passmore were given to the
40 Palladium-Item.She said had that not happened perhaps some of the problems might have been worked out. She
41 said it did appear that Passmore made some assumptions that were not in Clarke's letter. She said she also read
42 the opinion in the newspaper October 17 which stated that it would behoove this Board to make sure that RP&L is
43 run in a businesslike and accountable fashion.She added that at the very least,the State Board of Accounts would
44 make sure that RP&L is run in a businesslike and accountable fashion, noting that RP& L has one of the lowest
45 electric utility rates in the state and if it was not run in a businesslike fashion that would not be the case.
46
47 Councilmember Donat said she believed that the communication from the Chamber to RP& L had reached the
48 point that is most unfortunate and rather than allow the newspaper to become athird party person it would be best
49 to ignore them and get down to business with the Chamber and RP& L management meeting one on one.She
50 said she agreed with Huffman in that she had not heard anyone say anything about RP& L pulling out of the
51 Chamber.She said she believes that is a decision that the Board must make in an accountable and businesslike
52 fashion,in determining.what the Chamber provides RP& L and if the utility is not receiving beneficial services
53 according to the amount of money it pays then perhaps the membership should be dropped. However,if RP&L is
54 being served and.being helped that is a question for another meeting when it is time to renew the membership.
55
-56 ADJOURNMENT -
57
58 There being no further business,on a motion duly made, seconded and passed the meeting was adjourned.
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63 Jane Brookbank, Chairperson
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ATTEST: -
Norma Carnes,City Clerk •
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