HomeMy Public PortalAbout01-19-1993 •
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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 19. 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. Tuesday, January 19, 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:
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6 APPROVAL OF MINUTES OF JANUARY 4.1993
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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.
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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 McBride and on unanimous voice vote the motion carried.
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16 sills Already Paid
17 Payroll and Deductions
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20 Investments Purchased From:
21 Cash Operating Fund 496,245.00
22 Bond Sinking Fund
23 Utility Bond Reserve Fund
24 Depreciation Reserve Fund
25 Consumer Deposit Fund
26 Cash Reserve Fund 103,755.00
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Insurance Reserve Fund
Group Insurance Fund
29 Total Investments 600,000.00
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32 Transfer to City in Lieu of Taxes; 1,500,000.00
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34 Small Business Development Center
35 In Lieu of Taxes: 10,000.00
36 Economic Development center
37 In Lieu of Taxes: 140,000.00
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39 Transfer from Payroll Ded.to:
40 Cash Operating Fund
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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 Utility Bond Sinking Fund
56 Depreciation Reserve Fund
57 Insurance Reserve Fund
58 Consumer Deposit Fund
59 Interest and Bond Principal
60 End of Month Petty Cash
61 Revenue Bonds
62 Interest Coupons Redeemed
63 Bond Coupons
64 Miscellaneous Bills Already Paid 140,747.93
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Total Prepaid Invoices 2,390,747.93
Total Bills Not Paid 518,822.80
Grand Total 2,909,570.73
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RP&L Minutes Cont'd •
January 19, 1993 . ' •• .
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1 REMARKS BY THE CHAIRPERSON j
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3 Chairperson Brookbank appointed a committee to meet with the RP & L staff and TCI when there is
4 communication about cable TV. She designated Councilmember Dickman as chairman and serving with him will
5 be Councilmember Parker and Councilmember.Lundy. Councilmember McBride suggested that there be no
6 further investment by RP & L in cable until the offer by TCI is analyzed and either accepted or rejected.
7 Councilmember Elstro countered with the statement that the Board had voted earlier, 5 to 4, to go into the cable
8 business.City Attorney Thomas Milligan, however,said McBride's motion was in order.
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10 Milligan further stated that as the Board of Directors it sets the policy for RP & L. The board can direct, he said,
11 and stop any further expenditures. Councilmember Elstro and Brookbank disagreed in that the Board members
12 had a right to be at all RP & L staff meetings. Councilmember McBride made a motion that RP & L cease all
13 spending toward the communications project for 30 days and that time could be extended if necessary,second by
14 Councilmember Dickman and carried by a six to three vote.
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16 Ayes:Lundy, McBride,Parker,Allen, Dickman and Brookbank(6)
17 Nays:Elstro, Donat and Hutton(3)
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19 UNFINISHED BUSINESS
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21 Chairman Brookbank directed the newly named Employee Relations Committee, consisting of Councilmember
22 Lundy as chairman, and Councilmembers Hutton and Parker, to discuss the General Manager's precentage
23 increase in salary that was not resolved last year and pass along the information to Councilmember McBride,
24 chairman of the Finance Committee.
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26 STREET LIGHT COMMITTEE REPORT
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28 No report was given.
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30 REPORT BY GENERAL MANAGER
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32 In the absence of General Manager Irving Huffman and in response to the many telephone calls received about
33 the.recent rate increase, Herschel Philpot,CPA at RP&L,spoke to the Board,offering an explanation of the
34 situation.He said most residential customers saw an increase in their bills,solely due to the rate adjustment,
35 through the facility charge,of between$2 and$3 per month.The increase in the bills in January over December
36 was due to an increase in usage. In December, he said, most of the bills were for less than 30 days and in
37 January they were in excess of 30 days and in some cases the difference was as much as five days.He added
38 that the bills in January included the charge for Christmas lights, more heating and a general increase in usage.
39 He explained that the ratepayer really needs to look at the average cost per kilowatt hour of usage in comparing
40 the different rates. He apologized for the failure to communicate this to RP&L customers and also emphasized
41 the RP&L rates are"the most equitable and lowest we could design."
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43 Councilmember McBride suggested that it should be emphasized that the rate increase had nothing to do with
44 cable TV. Philpot responded that it had been stated many times that RP& L is a regulated utility and in no way
45 can subsidize what it does for cable.
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47 Chairperson Brookbank read a letter from Huffman who had to be out of town. In it,he gave the background on
48 RP& L's communication with TCI and pointed out errors he said had been made in the Palladium-Item resulting in
49 misinformation. He noted that the Board hadn't heard an evaluation of the proposal from the RP&L consultants
50 or the RP&L staff but upon receipt of the TCI proposal no information was being withheld.
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52 Councilmember Donat expressed concern about the motion made earlier to stop the spending as to whether it
53 tied the hands of the RP&L consultants. Milligan said the Board has the authority to run the affairs of RP&L
54 and the motion will simply keep RP&L from paying out any more money for consultants until the Board has an
55 opportunity to check it out.
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57 Milligan added that anything to this point can be paid.He further explained that the motion simply tied up
58 Huffman's authority to spend money for the next 30 days,creating a situation where he will have to report to the
59 Board and make complete disclosures of everything that has taken place,noting all the expenditures,so the
60 Board can make an intelligent decision about the TCI proposal.
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62 Chairperson Brookbank announced that those Councilmembers wishing to attend the annual dinner of the
63 Richmond/Wayne County Chamber of Commerce Saturday,January 30,should contact Huffman's secretary,
64 Susan Williams by Thursday.
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RP&L Minutes Cont'd
January 19, 1993
Page 3
1 Finance Manager,to conduct RP&L's part of the evening in his absence.Elaborating, he said Cox,who is one of
2 the key senior managers is retiring the end of February after"faithfully serving RP&L for 38 years."He noted
3 Cox's biggest accomplishment is the millions of dollars he has earned for RP&L through his prudent investment.
4 of its reserve and operating funds. He asked that the Board join him,the customers of RP&L and the employees,
5 in wishing Cox an enjoyable and prosperous retirement. In conclusion, he announced that Philpot,who has been
6 with RP&L for more than 26 years,will be stepping in to fill the vacancy left by Cox who was recognized by the
7 Board and audience with a round of applause.
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9 ADJOURNMENT
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11 There being no further business,on a motion duly made,seconded and passed the meeting was
12 adjourned.
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19 Jane Brookbank,Chairperson
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26 ATTEST:
27 Norma Carnes,City Clerk
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