HomeMy Public PortalAbout09-02-1986 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, SEPTEMBER 2, 1986
1 The Common Council of the City of Richmond, Indiana, serving as a Board in charge
2 of the operation of the Richmond Power & Light Plant, met in regular session
3 September 2, 1986 at the hour of 7:00 P.M. in the Municipal Building in said
III 4 City. Chairman Elstro presided with the following Councilmembers present: Williams,
5 Brookbank, Hankinson, Whitesell, Parker, Bodiker, Hutton and Morris. Absent:
6 None. The following business was had to—wit:
7
8 APPROVAL OF MINUTES OF AUGUST 18, 1986
9
10 Councilmember Hankinson moved to approve the minutes of the previous meeting
11 as prepared, seconded by Councilmember Brookbank and on unanimous voice vote
12 the motion was carried.
13
14 APPROVAL OF BILLS, TRANSFERS AND INVESTMENTS
15
16 Upon recommendation of the Finance Committee, Councilmember Parker moved to approve
17 the following bills already paid, transfers made, investments purchased and bills
18 to be paid, seconded by Councilmember Hankinson and on unanimous voice vote the
19 motion was carried.
20
21 Bills Already Paid:
22 Payroll and deductions of 8/22/86 156,046.60
23
24 Transfers from Cash Operating Fund to:
25 Depreciation Reserve Fund 91,000.00
26 Bond Sinking Fund 71,521.88
27 Cash Reserve Fund 172,224 .00
28
III29 Total Transfers 334,745.88
30
31 Investments Purchased from:
32 Depreciation Reserve Fund 3,418,582.00
33 Bond Reserve Fund 103,440.00
34 Cash Operating Fund 2,106,254.12
35 Bond Sinking Fund 71,521.88
36 Cash Reserve Fund 467,648.00
37
38 Total Investments 6,167,447.00
39
40 Bonds and Coupons Redeemed 787.50
41 -
42 Miscellaneous Bills Already paid 529,791.70
43
44 Total Bills Already Paid 7,188,817.68
45
46 Total Bills Not Paid 873,482.83
47
48 Grand Total of All Approved Bills 8,062,300.51
49
50 REPORT FROM STREET LIGHT COMMITTEE
51
52 Councilmember Hankinson stated that he has one request he is working on and expects
53 two (2) more for the next meeting.
III 54
55 REPORT BY GENERAL MANAGER
56
57 General Manager, Irving Huffman, read the following statement into the record:
58
59 Richmond Power & Light is one of the most successful electric utilities
60 in the United Stated. We have not been successful for just the past 2 years.
61 We have been succesful for many, many years .
62
63 How do you measure success? We have one of the lowest electric rates in
64 the United States ; definitely the lowest in Indiana. We have a strong,
65 modern electric system built for the future. We pay our employees a fair
RP&L Minutes Cont'd
September 2, 1986
Page 2
1 wage, and we fund monies in our Depreciation Reserve Fund for worthwhile
2 future projects .
3
4 In January we paid to the City of Richmond $1,585.570. That is a very healthy
5 sum of money. Next, January we are scheduled to pay the City $1,729,134.
6 We have just incresed our monthly funding by $41,006.41, inorder to be able
7 to provide the City $2,066,677. for 1988. Since its beginning RP&L has
8 funded the entire budget of the Economic Development Office. That is
9 approximately $150,000. per year.
10
11 Except for the Energy Cost Adjustments, we are living on a 1980 income.
12 1980 was the year of our last rate increase. If you refer to our monthly
13 financial report you can see we are having an excellent 1986.
14
15 Richmond Power & Light is outgrowing its Service Building garage. We are
16 now required to park many of our vehicles ourside subject to inclement
17 weather. We want to properly house those vehicles, inorder that they will
18 have a longer life expectancy and also be readily available during storms
19 and other severe weather.
20
21 As a part of our long range planning, we now are proposing to add approximately
22 9,720 square feet of space to our garage area. The estimated cost of the
23 addition is $408,240. plus $151,459. for reconstruction work, site work,
24 and architects and engineers fees . The total project is estimated to cost
25 $559,699. The project will be paid for from those funds already provided
26 for our long range planned projects .
27
28 R.W. Clinton & Associates, our consultants, advise "Should you consider
29 using a steel insulated panel witha metel liner panel on the interior, we
30 would estimate that you might save approximately $14,400. , however, as you
31 know, we would not recommend this material." Steel buildings require
32 additional maintenance and do not offer the same resistance to normal wear
33 and tear over time as compared to the existing cement block, insulation,
34 and brick exterior.
35
36 If you spread $14,400. over 50 years we realize only a savings of $480.
37 per year; not enough to offset the required extra maintenance costs .
38
39 We have had considerable discussion concerning the proposed garage. We
40 have provided time for questions and we have provided answers to the questions.
41 The next step is to have an architect to design the addition and prepare
42 construction and bid specifications for this addition. After the
43 specifications have been prepared it will then be necessary for bids to
44 be received for the construction. From the bids it will be necessary to
45 determine if the bids and the project still falls within acceptable limits.
46 If all items are acceptable then the project would be awarded to the successful
47 contractor. Now is the time to determine if you want to go ahead and start
48 the process with the intent to complete the project, provided all
49 requirements are met along the way. If it is not your intent to complete
50 the project the first step should not be taken.
51
52 Board of Director Members, what is your pleasure?
53
54 Councilmember Brookbank stated that she had called around for the costs of new
55 buildings and found that they could be built for 29.00/sq. ft. and she felt that
56 the 42.00/sq. ft. was overpriced and that the Board needs bids .
57
58 Chairman Elstro stated they would get bids, they are only approving the preparation
59 of the specifications for bidding the structure.
60
61 Mr. Huffman stated they would not know the total cost of the project until the
62 bids come in and that they have estimated a fair cost with information available.
63 Mr. Huffman stated that if the Board did not intend to complete the project they
64 should not proceed with the preparation of the specifications.
65
RP&L Minutes Cont'd
September 2, 1986
Page 3
1 Councilmember Whitesell stated that he concurred the structure was needed, but
2 he felt there was a problem with the cost of the building.
3
4 Mr. Huffman stated they were investing in a long range plan for a building and
5 felt it was best ,to go with the proposal.
6
7 Councilmember Hankinson moved to authorize R.W. Clinton & Associates to design
8 and prepare construction and bid specifications for an addition to the garage
9 area of the Richmond Power & Light Service Building. The motion was seconded
10 by Councilmember Williams.
11
12 The motion was adopted on the following call of the roll:
13
14 Ayes: Williams, Hankinson, Parker, Bodiker, and Elstro (5)
15 Nays: Brookbank, Whitesell, Hutton and Morris (4)
16
17 Mr. Huffman reported on the LIMP Project and the use of Black & Veatch as
18 consultants. He said that he had already received the Board's approval and that
19 he had properly advertised for consultants and did not receive any inquiries
20 from any other interested firms. Mr. Huffman asked the Board's authority to
21 engage Black & Veatch as a consulting firm on the LIMB Project.
22
23 Councilmember Hankinson moved to authorize the General Manager to hire Black
24 & Veatch as a consultant on the LIMB Project. The motion was seconded by
25 Councilmember Williams .
26
27 Councilmember Bodiker asked if that motion had not been previously approved to
III28 budget funds for consulting firms on a year to year basis.
29
30 Mr. Huffman stated he would like to have approval for 1987.
31
32 Councilmember Hankinson amended his motion to include calendar year 1987 and
33 Councilmember Williams seconded the amended motion.
34
35 Councilmember Bodiker asked what the cost would be and Mr. Huffman stated it
36 would 116,930.00 if it involved everything, but he does forsee it costing the
37 entire amount.
38
39 Councilmember Bodiker asked if the 116,930.00 was for a four (4) year period
40 and Mr. Huffman stated it was.
41
42 Councilmember Bodiker stated that the Board needed the amount of funds to be
43 approved for 1987.
44
45 Councilmember Whitesell stated that those amounts had been decided in the meeting
46 of the Executive Board and he moved to authorize the hiring of Black & Veatch
47 in conformance with the motion approved at the Executive Board meeting. The
48 motion was seconded by Councilmember Parker.
49
50 Councilmembers Hankinson and Williams withdrew their motions and the motion of
51 Councilmember Whitesell was passed on unanimous voice vote.
52
III 53 ADJOURNMENT
54
55 There being no further business, on a motion duly made, seconded and passed the
56 meeting was adjourned.
57
58
59 Howard J. Elstro, Chairman
60
61 ATTEST:
62 Mary Merchanthouse, City Clerk
63
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