HomeMy Public PortalAbout07-01-1985 PROCEEDINGS OF THE CORN COUNCIL OF THE
CITY OF RICE, INDIANA, SERVING AS A BOARD
IN CHARGE OF THE OPERATION OF THE RICHM)ND POWER
& LIGHT PLANT,. JULY 1, 1985
1 The Common Council of the City of Richmond, Indiana, serving as a Board in
2 charge of the operation of the Richmond Power & Light Plant, met in regular session
3 July 1, 1985 at the hour of 7:00 P.M. in the Municipal Building in said City.
III 4 Chairperson Morris presided with the following members present: Councilmembers
5 Elstro, Williams, Brookbank, Hankinson, Whitesell, Parker, Bodiker and Lemoine.
6 Absent: None. The following business was had to-wit:
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8 APPROVAL OF MINUTES OF JUNE 17, 1985
9
10 Councilmember Hankinson moved to approve the minutes of. the previous meeting as
11 prepared, seconded by Councilmanber Brookbank and on unanimous voice vote the motion
12 was carried.
13 APPROVAL OF B1TM, TRANFERS AND INVESTMENTS
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15 Councilmanber Whitesell moved to approve the following bills already paid, transfers
16 made and investments purchased, seconded by CouncilmeMber Brookbank and on unanimous
17 voice vote the motion was carried.
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19 Bills Already Paid:
20 Payroll and Deductions 6/14/85 159,853.05
21
22 Transfers from Cash Operating Fund to:
23 Utility Bond Sinking Fund 70,688.54
24 Depreciation Reserve Fund 91,000.00
25 Cash Reserve Fund 145,006.91
26 Total Transfers 306,695.45
27
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28 Investments Purchased From:
I29 Depreciation Reserve Fund 721,800.00
30 Cash Operating Fund ' 1,475,304.55
31 Utility Bond Sinking Fund. 120,688.54
32 Consumers Deposit Fund 100,000.00
33 Utility Bond Reserve Fund 91,175.00
34 Cash Reserve Fund 336,566.91
35 Total Investments 2,845,535.00
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37 Payment of Band Principal & Interest 1,250.00
38
39 Miscellaneous Bills Already Paid • 132,059.90
40
41 Total Bills Already Paid 3,445,393.40
42
43 Councilmember Whitesell moved to approve claims in the amount of 1,014,223.68 for
44 payment, seconded by Councilmember Hankinson and on unanimous voice vote the motion
45 was carried.
46
47 Total amount of all bills approved was 4,459,617.08.
48
49 UNFINISHED BUSINESS •
50 -
51 Tabled Motion on Cost of Service Study
52
I53 Councilmember Hankinson moved to remove the motion regarding the Cost of Service •
54 Study from the table for action, seconded by Councilmember Parker and on unanimous
55 voice vote the motion was carried.
56
57 It was decided action would be taken on this motion after the General Manager's
58 Report.
59
60 REPORT BY GENERAL MANAGER
61
62 Mr. Huffman presented the Board a letter regarding the Cost of Service Study. He
63 stated he had contacted two (2) of the firms suggested by Mr. George Bergeron of
64 Alcoa Corporation. Mr. Huffman said that the other two (2) suggestions consisted
65 of a power company and one (1) firm they were not familiar with.
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RP&L Minutes Cont'd
July 1, 1985
Page 2
1 Mr. Huffman said he had contacted Stone & Webster and Becktel Corporation. Stone
2 & Webster's quote was for 45.00 per hour to 160.00 per hour with a project
3 manager assigned locally and the computer program would cost 5,000.00 for a total
4 estimated cost of 55,000.00 to 62,000.00. The quote received fran Becktel was for
5 55.00 per hour to 75.00 per hour for a total of 50,000.00 to 75,000.00.
6
7 Mr. Huffman also receiveda quote from Don Gimble at 22.00 per hour to 65.00 per
8 hour plus expenses and a per mile rate for a total of 39,000.00. Mr. Huffman also
9 said Mr. Gimble guarantees the study to be acceptable to the Public Service
10 Commission.
11
12 Mr. Huffman recommended the firm of Donald Gimble do the Cost of Service Study.
13
14 Mom'. Huffman commented that all other studies to be done will be contingent upon
15 the Cost of Service Study and it will be based on the last six (6) months of 1984
16 and first six (6) months of 1985. Once the Study is in place the staff at RP&L
17 will be able to keep it updated.
18
19 Chairperson Morris asked in what form the guarantee would be and Mr. Huffman stated
20 there would be no additional cost.
21
22 Councilmember Lemoine asked if Stone and Webster and Becktel have made presentations
23 to the Public Service Commission and Mr. Huffman stated that Stone and Webster have
24 made presentations and Becktel has worked on Marble Hill.
25
26 Councilmember Lemoine asked if Mr. Huffman had contacted other Indiana firms that
27 have made presentations before the Public Service Commission and Mr. Huffman said
28 he had not since he felt those submitted were acceptable.
29
30 Councilmember Lemoine asked if the PSC would address the IMPA question before the
31 Cost of Service Study and Mr. Huffman stated that would go along with the Cost of
32 Service Study.
33
34 Councilmember Hankinson moved to authorize General Manager Huffman to proceed with
35 the Cost of Service Study yet this fall before the Management Review would start
36 and to consider the finn of Donald Gimble & Associates to do the study.
37
38 Councilmember Lemoine requested the Cost of Service Study not be tied to the
39 Management Review.
40
41 Councilmember Bodiker asked if Becktel and Gimble would furnish the computer program
42 at no charge and Mr. Huffman stated that Becktel would assist RP&L to establish .
43 the program and so would Gimble.
44
45 Councilmember Whitesell asked if there was a charge by Gimble for the presentation
46 to the PSC and what the rate was. Mr. Huffman stated it was included in the 39,000.00
47 and not broken out.
48
49 Councilmember Whitesell asked if we were premature in assuming there would be a
50 PSC presentation and indicated without the rate testimony Stone & Webster could
51 be in the range of 40,000.00 to 57,000.00.
52
53 Mr. Huffman stated this study was on a cost per hour basis and would be a 700 to
54 800 manhour job.
55
56 Chairperson Morris asked if 39,000.00 was the ceiling and Mr. Huffman said yes he
57 has asked for ceiling figures.
58
59 Councilmember Elstro asked that the motion be repeated.
60
61 Councilmember Hankinson moved to authorize the General Manager to proceed to engage
62 Donald Gimble & Associates to perform the Cost of Service Study yet this fall.
63 The motion was seconded by Councilmember Elstro.
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65 - - -
RP&L Minutes Cont'd
July 1, 1985
Page 3
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1 The motion for the Cost of Service Study was passed on the following call of the
2 role:
3 •
4 Ayes: Elstro, Williams, Brookbank, Hankinson, Parker and Bodiker (6)
5 Nays: Whitesell, Lemoine and Morris (3)
6
7 Councilmember Whitesell asked to see a copy of the formal letter requesting the
8 Don Gimble presentation and the final copy of the letter authorizing Gimble to do
9 the Cost of Service Study.
10
11 Councilmember Brookbank also requested the written copies of the quotes received
12 by telephone from the other firms.
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14 Mr. Huffman stated he would forward copies to the Board.
15
16 Councilmember Lemoine stated she voted no because she feels all the, possibilities
17 have not been explored and she needed more information.
18
19 Councilmember Whitesell stated he also voted no because he needed more information.
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20
21 Chairperson Morris said she did not support the motion because she felt the issue
22 was too important to rush into so hastily.
23
24 Mr. Huffman commented he was requested by the Board to gather the information for
25 the meeeting tonight and Councilmember Elstro said RP&L has had a good track record
26 with Donald Gimble and Associates.
27
I28 Mr. Huffman presented the Board with copies of an Electric Rate Schedule including
29 rates for locations such as Cleveland, Chicago, New York, Minneapolis, Denver,
30 Seattle, etc,. The comparison with Richmond Power & Light shows Richmond Power &
31 Light to be very competitive in nature with low rates and a profitable company.
32
33 Councilmember Hankinson suggested this was the type of good news the press could
34 report.
35
36 Councilmember Bodiker also presented articles on Indiana Power & Light facing a
37 30% rate increase with a new generator and one on SO2 effects.
38
39 •
40 ADJOURN
41
42 There being no further business, on a motion duly made, seconded and passed the
43 meeting was adjourned.
45 4/
46 PI'
n -4is, Chairman
47 1
48 ATTEST:'
49 ary rch thouse
50 City Clerk
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