HomeMy Public PortalAbout01-20-1986 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, JANUARY 20, 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, January
3 20, 1986 at the hour of 7:00 P.M. in the Municipal Building in said City.
4 Chairperson Elstro presided with the following members present: Councilmembers
5 Williams, Brookbank, Hankinson, Whitesell, Parker, Bodiker, Lemoine and Morris.
6 Absent: None. The following business was had to-wit:
7
8 APPROVAL OF MINUTES OF JANUARY 6, 1986
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10 Councilmember Morris moved to approve the minutes of the previous meeting as prepared,
11 seconded by Councilmember Bodiker and on unanimous voice vote the motion was carried.
12
13 APPROVAL OF BTFJ S, TRANSFERS AND INVESTMENTS
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15 Upon recommendation of the Finance Committee, Councilmember Whitesell moved to approve
16 bills already paid, transfers made and investments purchased as follows, seconded
17 by Councilmember Bodiker and on unanimous voice vote the motion was carried.
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19 Bills Already Paid:
20 Payroll and deductions of 1/10/86 166,037.27
21
22 Payments to City of Richmond:
23 In Lieu of Taxes 1,585,570.00
24 Pension for City Employees 381.33
25 Total Payments to City 1,585,951.33
26
27 Investments Purchased from:
28 Depreciation Reserve Fund 1,007,300.00
III29 . Utility BOnd Reserve Fund • 38,202.00
30 Cash Operating Fund 861,331.00
31 Cash Reserve Fund 492,436.00
32 Total Investments 2,399,269.00
33
34 Bonds and Coupons Redeemed 503,662.50
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36 Miscellaneous Bllls Already Paid 743,635.01
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38 Total Bills Already Paid 5,398,555.11
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40 Councilmember Whitesell stated the Finance Committee had inspected unpaid bills in
41 the amount of 598,736.66 and moved that payment be approved, seconded by Councilmember
42 Lemoine and on unanimous voice vote the motion was carried.
43
44 Grand total of all approved bills was 5,997,291.77. .
45
46 Councilmember Williams commented on the payment to the City in lieu of taxes and
47 the fact that this was a record return to the City. He stated he would_ like.the
48 public to be aware of the return to the City from RP&L.
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50 REMARKS BY CHAIRPERSON
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52 Chairperson Elstro requested the Clerk to read the following Press Release:
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54 This statement is issued to set straight those facts which. were misrepresented
55 in the Sunday, January 12th Palladium-Item editorial. At our last Board meeting
56 questions were raised about the cost of remodeling the RP&L Service Building
57 lobby and these questions were straight-forwardly and accurately answered.
58 However, because the information was evidently misunderstood by. a few, we wish
59 to repeat the facts and amplify them with additional detail.
60
61 Over the last several years, we have undertaken a remodeling of the Service
62 Building, doing a little work eacy year. Remodeling of the hallways; lobby,
63 and entryway were scheduled for 1984 and 1985 and a total of $27,000.00 was
64 budgeted for the lobby and entryway - $8,200. in 1984 and $7,000. in 1985.
65e work was completed in 1985 at a total cost of $16,062.45 which was $862.45
RP&L ,Minutes Cont'd
January 20, 1986
Page 2
1 or 5.7% more than the amount budgeted. To avoid exceeding our overall budget,
2 we decided to forgo another project to make up the difference. Therefore, there
3 was no overrun in the overall budget.
4 •
5 The estimate and schedule for this work were originally made in 1983. The
6 1985 budget was prepared in September, 1984 and at that time it was estimated
7 that the work would continue on schedule. However, it was subsequently delayed.
8 with the following result:
9 1984 1985
10 Budgeted $8,200.00 $7,000.00.
11 Spent 5,987.75 10,074.70
12 Variance ($2,212.25)under $3,074.70 over
13
14 Total variance: $862.45 or 5.7% over budget
15
16 Taking into account the fact that this project's cost was estimated two years
17 in advance, we do not feel that the overrun is excessive.
18
19 Those of us who are experienced in the Utility's operation understand that
20 although we prepare an annual budget, Richmond Power and Light is not an annual
21 business, that is, its projectsand operations often take 2, 3, or even 5 or
22 more years to compelte and can not always be precisely broken down on an annual
23 basis. THis is not peculiar to RP&L, it is the norm for the utility industry
24 as a whole.
25
26 The Board of Directors approves all budgets and continually monitors the utility's
27 expenditures. Each month, the utility compiles and issues a 19 page detailed
28 financial and statistical report and a 9 page budget report. Admittedly much
29 of the data is complex because the business itself is complex. However, help
30 in understanding the reports and even further_detail is always available to
31 thosewho will simply take the trouble to ask.
32
33 Councilmember Hankinson commented that the total cost of 16,062.45 also included
34 the weatherization of the entryway and energy closure for the front door, thereby
35 lessening the cost of the lobby by 3,154.42.
36
37 1986 Committees
38
39 Chairperson Elstro announced the following committee appointments for 1986:
40
41 Finance Committee - Larry Parker, Chm; Richard Bodiker, Terry Whitesell and
42 Jack Elstro. •
43
44 Employee Relations Committee - Marion Williams, Chm. ; Jane Brookbank and Joan
45 Lemoine.
46
47 Street Light Committee - Jim Hankinson, Chm. ; and Lynn Morris.
48
49 Executive Committee - Marion Williams, Larry Parker, Jim Hankinson, Three members
50 of RP&L Management and Jack Elstro.
51
52 STREET LIGHT CONMII1TEE REPORT
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54 Chairperson Elstro stated that the committee had approved lights on Peacock Road
55 and S.W. 19th Street and would be forwarding them to the Board of Works for approval.
56
57 REPORT BY GENERAL MANAGER
58
59 Receive Bids for Three (3) - 1986 Cars
60
61 General Manager Huffman informed the Board that they needed to replace a 1977 Maverick,
62 a 1977 ' ton Chevrolet truck and a 1980 Toyota Truck with three 1986 cars. He said
63 the vehicles would be assigned to the Line Superintendant, Assistant Line
64 Superintendent and the Meter Department.
65
• RP&L Minutes. Cont'd
January 20, 1986
Page 3
1 Councilmember Hankinson moved to authorize the General Manager to receive bids for
2 three (3) 1986 cars on February 3, 1986, seconded by Councilmember Whitesell and
3 on unanimous voice vote the motion was carried.
4
5 NEW BUSINESS
6 •
7 Chairperson Elstro announced the regular meeting.of the RP&L Executive Board on January
8 27, 1986.. at 7:00 P.M. at the Service Building.
9 - .
10 ADJOURNMENT
11
12 There being no further business, on a motion duly made, seconded and passed the meeting
13 was adjourned.
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17 • Howard Jack Elstro, Chairperson
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19
20 ATTEST:
21 ' Mary Merchanthouse, City Clerk
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