HomeMy Public PortalAbout10-04-1993 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.OCTOBER 4. 1993
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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 4, 1993, in the Municipal
3 Building in said City. Councilperson Brookbank presided with the following Councilmembers in attendance:
4 Elstro, Lundy, Donat, Parker, Allen, Dickman and Hutton. Councilmember McBride was absent. The following
5 business was had to-wit:
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7 APPROVAL OF MINUTES OF SEPTEMBER 20.1993
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9 Minutes were not available for approval.
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11 APPROVAL OF.BILLS. INVESTMENTS AND TRANSFERS
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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.
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16 BilIs Already Paid
17 Payroll and Deductions 211.445.81
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19 Investments Purchased From:
20 Cash Operating Fund 1,4750,000.00
21 Bond Sinking Fund
22 _Utility Bond Reserve Fund
23 Depreciation Reserve Fund 91,000.00
24 Consumer Deposit Fund_
25 Cash Reserve Fund 137,500.00
26 Insurance Reserve Fund
27 Group Insurance Fund
28 Total Investments 1,978,500.00
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32 Transfer to City in Lieu of Taxes from;
33 Cash Reserve Fund 137,500.00
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36 Transfer from Payroll Ded.to;
37 Cash Operating Fund 13,727.86
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39 Transfers from Depreciation Reserve to:
40 Cash Operating Fund
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42 Transfers from Consumer Deposit to:
43 Cash Operating Fund
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45 Transfers from Utility Bond Reserve Fund to;
46 Bond Sinking Fund
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48 Transfers from Cash Operating ;
49 Interest and Bond Principal
50 Bond Sinking Fund
51 Cash Reserve Fund
52 Utilty Bond Sinking Fund
53 Depreciation Reserve Fund 91,000.00
54 Insurance Reserve Fund
55 Consumer Deposit Fund
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57 Interest and Bond Principal
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59 End of Month Petty Cash
• 60 Revenue Bonds
61 Interest Coupons Redeemed
62 Bond Coupons
63 Miscellaneous Bills Already Paid 234,918.11
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65 Total Prepaid Invoices 2,667,091.78
Total Bills Not Paid 632,826.71
Grand Total 3,299,918.49
RP&L Minutes Cont'd
October 4, 1993 1<
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1 REMARKS BY THE CHAIRPERSON
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3 No remarks
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5 UNFINISHED BUSINESS
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7 None
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9 STREET LIGHT COMMITTEE REPORT
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11 None
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14 REPORT BY GENERAL MANAGER
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17 General Manager Irving Huffman opened bids for the Continuous Emissions Monitoring Equipment,asking for a
18 motion for proof of publication of the bids in the local newspaper on September 23 and 30. Councilmember
19 Dickman so moved,second by Councilmember Parker and the motion was carried on a unanimous voice vote.
20 Huffman said he had received four bids but had expected more.
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22 Bids received were from First Control Solutions Incorporate of Springfield,Mo.with a lump sum price of$456,266
23 and fabrication period(delivery requirement)from March 1, 1994 to April 1, 1994; Mechanical Systems Inc.of
24 Sun Prairie,Wis.with a lump sum price of$452,600 and fabrication period from January 1, 1994 to February 1,
25 1994;King Victor Boy Inc. (KVB)of Irvine Calif.with a lump sum price of$257,100 and frabrication period from
26 December 1, 1993 to April 15, 1994;and Columbia Scientific Industries of Austin,Texas with a lump sum bid of
27 $506,758 and a fabrication period of November 1993 to April 15, 1994. Huffman stated he was unable to find the
28 bid bond in the KVB package.
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30 Councilmember Parker moved to refer the bids to the general manager for tabulation, evaluation and
31 recommendation,with a second by Councilmember Hutton. In answer to a question by Councilmember Dickman,
32 Huffman said he had expected around six bids. He explained that this is a relatively new requirement by EPA and
33 carries a very short timetable. He added that the industry is having a lot of problems meeting the standards EPA
34 has outlined, noting that if the utility's longterm equipment would fail for some reason the plant must be shut
35 down and that is, in his opinion,a ridiculous requirement,but it is the law. It means, he said,that all the industries
36 are having to buy duplicate equipment so that if something happens to one item there is a backup.
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38 In meetings he attended in Atlanta,Ga. and Buffalo, N.Y., Huffman said one of the major complaints was that the
39 equipment, and especially the software connected with the equipment, has been very faulty and some people are
40 beginning to wonder if maybe they should have three and four backup systems. He added that idealistically some
41 of the environmental people give the impression that rather than dispatch your plant by economy they want you
42 to dispatch them environmentally. In other words,dispatch the most economical plant first,and then work up to a
43 higher cost plant,which Huffman said means only one thing, everybody's bills are going to go up by following that
44 procedure. He noted the cost of the equipment and the fact that spare parts are required which means the utility is
45 going to have a lot of money wrapped up in equipment.The motion was carried on a unanimous voice vote.
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47 Huffman submitted proof of publication for bids for a five-passenger sedan which appeared in the local newspaper
48 on September 23 and 30.Councilmember Dickman moved for approval,second by Allen and the motion was
49 carried on a unanimous voice vote.Huffman said only one bid had been received,adding that local suppliers had
50 been notified and it would be his recommendation, before opening the bid,that the auto be purchased from this
51 lone bidder which was Fred First Ford Inc.The bid was on the proper forms and for one four-door sedan
52 five-passenger 1994 Tempo at a price of$11,683 with delivery within six to eight weeks. Councilmember Hutton
53 moved to refer the bid to the general manager for tabulation, evalutation and recommendation,second by
54 Dickman and the motion was carried on a unanimous voice vote.
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56 Councilmember Parker commented that if after review Huffman finds that the bid does meet the required
57 specifications he feels this bid defintely should be awarded, regardless of any bids received after tonight. Huffman
58 commented that the two-week time frame allowed was advantageous to local suppliers, adding that it has been
59 the opinion of this board that is should try to do business locally.
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61 Huffman said he had an item of correction to the local newspaper which stated that fines do not go to the agency
62 for their support; noting that is true for the federal government. Any money paid to the EPA does go to the U.S.
63 Treasury to try to hold down.the deficit.However, any fines levied by the Indiana Environmental Management
64 Division are paid directly to that division. He said the intent of the recently passed law is to try to receive more
65 money trhough fines so they have more money to support the operation.
RP&L Minutes Cont'd
October 4, 1993
Page 3
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2 NEW BUSINESS
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4 None
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6 ADJOURNMENT
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8 There being no further business,on a motion duly made,seconded and passed the meeting was
9 adjourned.
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17 Jane Brookbank,Chairperson
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24 ATTEST:
25 Norma Carnes, City Clerk
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