HomeMy Public PortalAbout07-17-1989 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. JULY 17. 1989
1 The Common Council of the City of Richmond, Indiana,serving as a Board in charge of the operation of the
2 Richmond Power & Light Plant, met in regular session July 17, 1989 at the hour of 7:00 P.M. in the Municipal
3 Building in said City. Chairman McBride presided with the following Councilmembers in attendance: Elstro,
4 Lundy, Brookbank, Hankinson, Hutton, Parker Morris and Paust. Absent: None. The following business was had
5 to-wit:
6
7 APPROVAL OF MINUTES OF JULY 3.1989
8
9 Councilmember Brookbank moved to approve the minutes of the previous meeting as prepared,
10 seconded by Councilmember Hutton and on unanimous voice vote the motion was carried.
11
12. APPROVAL OF BILLS. INVESTMENTS AND TRANSFERS
13
14
15 Bills Already Paid
16 Payroll and deductions 185,640.02
17
18
19 Investments Purchased :
20 Cash Operating Fund 1,250,000.00
21 Bond Sinking Fund .00
22 Utility Bond Reserve Fund 654,447.15
23 Depreciation Reserve Fund 851,301.61
24 Consumer Deposit Fund 100,000.00
25 Cash Reserve Fund .00
26
27 Total Investments 2,855,748.76
28
29 Transfers from Depreciation Reserve to:
30 Cash Operating Fund 537,645.98
31
32 Transfers from Utility Bond Reserve Fund to;
33 Bond Sinking Fund 55,856.25
34
35 Transfers from Cash Operating :
36 Bond Sinking Fund .00
37 Cash Reserve Fund .00
38 Utility Bond Sinking Fund .00
39 Depreciation Reserve Fund 00
40 Total Transfers
41
42
43 Revenue Bonds .00
44 Interest Coupons Redeemed 50,212.50
45 Coupons Purchased .00
46 Miscellaneous Bills Already Paid 83,042.81
47 Total Bills Not Paid 660.036.48
48
49 Grand Total of Al Approved Bills 4,428,128.80
50
51
52
53 Upon recommendation of the Finance Committee, Councilmember Elstro moved to approve the investments
54 purchased,transfers made and bills to be paid,seconded by Councilmember Hankinson and on unanimous voice
55 vote the motion was carried.
56
57 REMARKS BY CHAIRMAN
58
59 None were presented
60
61 STREET LIGHT COMMITTEE REPORT
62
63 None was presented.
64
65 REPORT BY GENERAL MANAGER
RP&L Minutes Cont'd
July 17, 1989
Page 2
1 Mr.Richard Barker informed the Board there would be no meeting of the Executive Board for July.
2
3 Mr. Barker gave the Board an overview of critical issues facing power industries. Mr. Barker said that power
4 industries will be undergoing tremendous change in the next ten to twenty years and he sees the small utilities
5 failing because management will fail to recognize the changes and respond. He said in the next twenty years it is
6 predicted that only 25 of the 210 investor owned utilities will survive.
7
8 Mr. Barker stated that there are over 3,000 public power systems and many will fail, merge or change. He said a
9 recent meeting of IMPA addressed a system wanting to join and even though they offered low rates,they were
10 concerned with the poor system. He said being successful was not only having low rates and power utilities in the
11 future would have to be creative and flexible and anticipate change and respond.
12
13 Mr. Barker said the key to survival was to recognize issues important to us and one of the first issues with
14 Richmond Power&Light was competitiveness. He explained the utility was not a monopoly since there are
15 alternate forms of energy available and they are also always in competition with other power utilities.
16
17 Mr. Barker stated that they way to stay competitive was with rates. He said RP&L's industrial rates were low,but
18 were less competitive than the residential rates. He said the second was to compete effectively was with
19 customer satisfaction and loyalty and the third way is a good professional image. Mr. Barker said there is also a
20 forth way which is growth that allows the reduction of fixed costs.
21
22 Mr.Barker said another key issue to survival is power supply,to maintain adequate capacity and with IMPA there
23 is a long term power supply and belongning to IMPA gives a lot more clout and more options.
24
25 Mr. Barker said the transmission and distribution system is also another key issue and it had to be good and
26 reliable. He added that RP&L's transmission system is being overloaded and they are looking into distribution
27 with some of the lines beig quite old and needing rebuilt which means plenty of capital needs to be available.
28
29 Mr. Barker told the Board that environmental affairs are another issue in survival and RP&L prefers to be a part of
30 forming legislation in order that is be reasonable and they can live with it. He concluded with stating that to
31 survive they must stay abreast of trends and anticipate, plan and act or they can close their doors.
32
33 The Board congratulated Mr.Barker on a fine report.
34
35 ADJOURNMENT
36
37 There being no further business, on a motion duly made,seconded and passed the meeting was
38 adjourned.
39
40
41
42
43
44 Don McBride, Chairman
45
46
47
48
49 ATTEST:
50 Mary Merchanthouse, City Clerk
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65