HomeMy Public PortalAbout08-18-1986 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, AUGUST 18, 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 August
3 18, 1986 at the hour of 7:00 P.M. in the Municipal Building in said City. Chairman
III 4 Elstro presided with the following Councilmembers in attendance: Williams, Brookbank,
5 Hankinson, Whitesell, Parker, Bodiker, Hutton and Morris. Absent: None. The
6 following business was had to-wit:
7
8 APPROVAL OF CORRECTED MINUTES OF AUGUST 4, 1986
9
10 Councilmember Hutton noted that Councilmember Brookbank's name had been used for
11 both the motion and second on the approval of minutes . Councilmember Hankinson
12 moved to approve the minutes of the previous meeting with the addition of
13 Councilmember Whitesell 's name to the motion, seconded by Councilmember Brookbank
14 and on unanimous voice vote the motion was carried.
15
16 APPROVAL OF BILLS AND INVESTMENTS
17
18 Upon recommendation of the Finance Committee, Councilmember Parker moved to approve
19 bills already paid, investments purchased and bills to be paid as follows, seconded
20 by Councilmember Hankinson and on unanimous voice vote the motion was carried.
21
22 Bills Already Paid
23 Payroll and deductions of 8/8/86 162,133.29
24
25 Investments Purchased from:
26 Depreciation Reserve Fund 4,202,090.00
27 Cash Operating Fund 700,000.00
28 Bond Reserve Fund 679,449.00
III29 Cash Reserve Fund 27,827.00
30 Total Investments 5,609,366.00
31
32 Bonds & Coupons Redeemed 2,343.75
33
34 Miscellaneous Bills Already Paid 74,813.15
35
36 Total Bills Already Paid 5,848,656.19
37
38 Total Bills Not Paid 376,290.92
39
40 Grand Total of All Approved Bills 6,224,947.11
41
42 REMARKS BY CHAIRMAN
43
44 Chairman ELstro reminded the Board of the next regular meeting on August 25, 1986
45 at 7:15 P.M. in the Council Chambers in the Municipal Building.
46
47 UNFINISHED BUSINESS
48
49 Councilmember Bodiker asked about the progress of the consultants from Minnesota
50 and Councilmember Morris asked about the progress of the Gimble Rate Study and
51 also Black and Veech.
52
III 53 Mr. Huffman commented on a letter to the Board regarding the mechanics of hiring
54 a consultant that need to be accomplished before a final vote of the Board on
55 the Black and Veech consulting.
56
57 Councilmember Morris stated that she was referring to the study on the oil fired
58 generator and Mr. Huffman stated that was R.W. Beck and since Clinton & Associates
59 was scheduled for the next meeting it would be best to delay a report from R.
60 W. Beck to a later date.
61
62 Councilmember Morris stated that she thought the time frame on the Gimble Study
63 was for February or March and asked about the delay.
64
65 Mr. Huffman stated the study was up to date and he felt it had not been anything
RP&L Minutes Cont'd .
August 18, 1986
Page 2
1 pressing, but that a presentation could be made to the Board so they could decide
2 what they wanted to do with the study. He stated he would keep the Board to date
3 on a month to month basis regarding the consulting projects.
4
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5 Councilmember Morris stated that she was under the impression that the Gimble
6 Study was urgently needed and Mr. Huffman stated the urgency was from the Board
7 on a rate review and cost of service standpoint .
8
9 Councilmember Bodiker stated it was a part of a group of reports the Board needed
10 to make educated decisions and he wanted to know when it would be finished.
11
12 Pole Life Extension Program
13
14 Mr. Richard Barker explained to the Board that last year he had made a presentation
15 on the pole life extension program regarding extending the life of the wood poles
16 and locating dangerous poles to get off the system. Mr. Barker explained that
17 the average life of a pole is thirty (30) years, but with proper treatment and
18 inspection the life expectancy could be fifty (50) years. Mr. Barker said that
19 in the past they had purchased the materials and had used existing employees to
20 do the labor, but in the last two (2) years the program has been discontinued.
21 Mr. Barker indicated that last year the Board had decided that it would be cost
22 effective to do all the poles with contractural labor.
23
24 Mr. Barker informed the Board that the cost of the pole life extension project
25 was included in the budget and they are ready to notify the contractors to begin
26 their work on the poles .
27
28 Chairman Elstro asked if they find dangerous poles will they be replaced
29 immediately and Mr. Barker stated they do occassionally find poles needing
30 immediate replacement.
31
32 Mr. Barker indicated that the project could be completed prior to winter weather.
33
34 Financial Report - General Manager
35
36 Mr. Huffman reported that the net operating income for the last month was 59,699.69
37 which might seem to be a bad report. Mr. Huffman stated that the report did not
38 include the unaccounted KWH useage relative to a cooler period in July with the
39 hoter season later and the scheduling of the meter readings . He stated this causes
40 a portion of last month to not be on the meter readings .
41
42 Mr. Huffman stated that with the unaccounted sales being 177,000.00 and the in
43 lieu of taxes payment to the City being 41,000.00 more last month and the 64,000.00
44 rate decrease to the consumer, the net operating income would have been 282,000.00.
45
46 Mr. Huffman indicated that the Board needed to take a look at the Year To Date
47 trends to get a good financial picture of the utility.
48
49 Public Comment
50
51 Mr. Richard Knight asked for clarification on the cost per pole of the life
52 extension program and Mr. Barker explained that it cost 30.00 to inspect and treat
53 the pole and 300.00 to put the pole in place.
54
55 ADJOURNMENT
56
57 There being no further business, on a motion duly made, seconded and passed the
58 meeting was adjourned.
59
60
61 Howard J. Elstro, Chairman
62
63 ATTEST:
64 Mary Merchanthouse, City Clerk
65