HomeMy Public PortalAbout06-17-1985 PROCEEDINGS OF THE COMMON COUNCIL OF 'l'tiE
CITY OF RICHMOND, INDIANA, SERVING AS ABOARD
IN CHARGE OF THE OPERATION OF THE RICHMOND POWER
& LIGHT PLANT, JUNE 17, 1985
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 June 17, 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 in attendance:
5 Councilmembers Elstro, Williams, Brookbank, Hankinson, Whitesell, Parker,
6 Bodiker, and Lemoine. Absent: None. The following business was had to-wit:
7
8 APPROVAL OF MINUTES OF JUNE 3, 1985
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 Councilmember Lemoine requested the minutes of the Executive Board meeting of
15 April 17, 1985 be changed to reflect the members of the Board that were present
16 at that meeting.
17
18 APPROVAL OF Bn TS AND INVESTMENTS
19
20 Councilmember Whitesell stated that the Finance Committee had reviewed bills
21 already paid, and investments purchased . and found them to be in order.
22 Councilmember Whitesell moved to approve the following, seconded by
23 Councilmember Bodiker and on unanimous voice vote the motion was carried.
24
25 Bills Already Paid
26 Payroll and deductions of 5/31/85 160,147.40
27
28 Investments Purchased from
29 Cash Operating Fund 892,000.00
30 Cash Reserve Fund 280,710.00
31 Depreciation Reserve Fund 313,683.00
32 Utility Bond Reserve Fund 8,600.00
33 Total Investments 1,495,393.00
34
35 Payment of Bond Principal & Interest 1,250.00
36
37 Miscellaneous Bills Already Paid 574,065.97
38
39 Total Bills Already Paid 2,230,856.37
40
41 Councilmember Whitesell stated that the Finance Committee found bills to be
42 paid in the amount of 190,707.87 in order and moved that they be approved for
43 payment, seconded by Councilmember Bodiker and on unanimous voice vote the motion
44 was carried.
45
46 Grand total of all approved bills is 2,421,564.24. .
47
48 REMARKS BY CHAIRPERSON
49
50 Chairperson Morris reminded the Board of the Executive Board meeting at the
51 Richmond Power & Light Service Building at 7:00 P.M. on June 24, 1985. Agenda
52 items should be in to the Chairperson or the General Manager by June 19, 1985.
53
54 UNFINISHED BUSINESS
55
56 Councilmember Whitesell moved to return Motion #1 of the Finance Committee made
57 on February 19, 1985 from the table to the Board for action, seconded by Councilmember
58 Lemoine and on the following call of the role the motion was carried.
59
60 Ayes: Elstro, Williams, Brookbank, Hankinson, Whitesell, Parker, Bodiker, Lemoine,
61 and Morris (9)
62 Nays: None
63
64 Councilmember Whitesell read Motion # 1. I move to direct the finance committee
65 to obtain the services of '.:.al- properly qualified accounting firm to review RP&L's
RP&L Minutes Cont'd
June 17, 1985
Page 2
1 financial status and provide information requested including the following:
2 1. Levels of fund reserves required to meet bonding requirements and the
3 various regulatory agency requirements.
4 2. Levels of funds recommended for replacement of facilities short and
5 long term.
6 3. Funds necessary for various day to day activities.
7 4. Levels of invested funds to provide various levels of return and their
8 affect upon operating return.
9
10 This report and review will be with the total Board. Action resulting from
11 information provided will be at the direction of the full board and management
12 of RP&L.
13
14 Councilmember Brookbank told the Board that she had talked with many representatives
15 of public utilities at the recent Power Conference and they all said they obtain
16 general operating reviews every one (1) or two (2) years.
17
18 Councilmember Bodiker stated that the questions raised about Richmond Power
19 & Light have cast doubt on this recommendation by the Finance Committee and
20 the position of the Board of Directors. He indicated that this has been a decisive
21 and planned proposal by the Finance Committee and for clarification he offered
22 the following statement and amendments to Motion # 1.
23
24 In recent weeks certain questions, related to Richmond Power & Light, have
25 been in issue. The nature of these questions has cast doubt on this and
26 past Boards. The resultant actions and reactions ahve been very divisive
27 within our community. We need unity and planned progress in these most
28 difficult times. It is in this spirit, I offer the following:
29
30 I move to amend the motion to read as follows:
31
32 I move to direct the finance committee to screen and recommend, to the
33 full board, two (2) properly qualified accounting or consulting firms
34 (including approximate cost of each) to review RP&L's status and provide
35 information requested including the following:
36
37 1. Levels of fund reserves required to meet bonding requirements and the
38 various regulatory agency requirements.
39 2. Levels of funds recommended for replacement of facilities short and
40 long term.
41 3. Funds necessaryfor various day to day activities.
42 4. Levels of invested funds to provide various levels of return and their
43 effect upon operating return.
44
45 The full board shall select one of the recommended firms. The board shall
46 provide an adequate amount of money in the 1986 Budget to acquire the
47 services of the selected firm during the first quarter of 1986.
48
49 The following should be used as a guide for the finance committee and the
50 contracted firm:
51
52 Assuring RP&L's continued benefit to the City of Richmond and to RP&L's
53 customers is very important. Providing for necessary growth, capital
54 equipment replacement and day to day operating funds is essential--obtaining
55 a reasonable return on operations is likewise included.
56
57 Customer service rates must be at the lowest possible structure which allows
58 for the items which have been indicated (within local, state and federal
59 law) . It is thus very important that RP&L's Board of Directors be equipped
60 with the proper information to direct RP&L in the achievement of these
61 objectives.
62
63 This report and review will be with the full board. Action resulting from
64 inforamtion provided will be at the direction of the full board and
65 management of RP&L.
•
•
RP&L Minutes Cont'd
June 17, 1985
Page 3
1 Councilmember Hankinson seconded Councilmember Bodiker's motion to amend Motion
2 # 1.
3
III 4 Councilmember Whitesell stated that the amended version changed the original
5 by requiring two (2) firms be solicited and the whole Board make final
6 decision on the hiring of a firm.
7
8 Councilmember Bodiker stated that was correct along with the funding being added
9 in the 1986 budget..and work would commence in the first quarter of 1986.
10
11 Councilmember Whitesell stated it was not the intention of the finance committee
12 to prohibit management input on new policy. recommendations.
13
14 Chairperson Morris asked if finance committee would determine what should be
15 included in the review and Councilmember Bodiker stated that the 1986 Finance
16 Carunittee would make those decisions and the full board and management would
17 enact the recommendations.
18
19 Chairperson Morris asked if the amended motion prevented the review from being
20 started until 1986 and Councilmember Bodiker stated that the 1985 finance
21 committee would screen the firms and make the presentation to the Board for
22 their selection in 1985 with work to begin the first quarter of 1986.
23
24 The motion to amend Motion #1 was adopted on the following call of the roll:
25
26 Ayes: Elstro, Williams, Brookbank, Hankinson, Whitesell, Parker, Bodiker, Lemoine
27 and Morris (9)
28 Nays: None
III 29 •
30 Councilmember Whitesell moved for the adoption of Amended Motion. # 1, seconded
31 by Councilmenber Hankinson and on the .following call of the role the motion
32 was carried.
33
34 Ayes: Elstro, Williams, Brookbank, Hankinson, Whitesell, Parker, Bodiker,
35 Lemoine and Morris (9)
36 Nays: None
37 •
38 STREET LIGHT C' TI'EE`'REPORT
39
40 Councilmember Bodiker asked the policy of the Board regarding the placement
41 of street lights in alleys. He stated he had received an inquiry on a high
42 vandalism area in an alley between Main.and National Roads and S.W. 4th and
43 5th Streets.
44
45 Councilmember Elstro said that he would look at the area in question.
46
47 REPORT OF THE GENERAL MANAGER
48
49 General Manager Irving Huffman told the Board that it was heart warming to see
50 such a large group of persons in the audience for the Richmond Power & Light.
51 meeting. He stated that when the public realized there was money in the till
. 52 the interest jumped up. He said that he wished there was this much interest
53 all the time.
54
55 Mr. Huffman told the Board that financial reports were available for the the
56 first four (4) months of the year and being a member of IMPA causes the reports
57 to be issued late. He stated with the new interest in the utility, the public
58 was invited to look at the reports and he would be happy to go over the reports
59 with anyone. He also stated that they take pride in Richmond Power & Light
60 and like to showoff the facilities.
61
62 Mr. Huffman stated that power sales are down 2;,8P-o-ands they may net make>the' .Hri
63 projected sales with the weather we are having in 1985. He also said that there'
64 is a decrease in the net operating income of 867,974.65 since this time last
65 year.
RP&L Minutes Cbnt'd
June 17, 1985
Page 4
1 Councilmember Lemoine also welcomed the audience participation and stated that
2 the Board should begin a more aggressive program of public information.
3
4 Chairperson Morris thanked the Finance Committee for all their work involved
5 in developing the motion passed by the Board.
6
7 Mr. Andrew Cecere, 101 South 10th Street, thanked and congratulated the Board
8 for their tremendous step toward undergirding economic growth in the community
9 and reminded the Board that the power of the Board resides within the Board
10 itself.
11
12 NEW BUSTh ESS
13
14 Cost of Service Study
15
16 Councilmember Hankinson moved to have the Board of Directors direct the General
17 Manager to retain the services of Mr. Don Gimble to update the cost of services
18 study and review the rate structure for the staff of RP&L to keep continually
19 updated with the study to be done immediately. Councilmember Elstro seconded
20 the motion.
21
22 Councilmember Bodiker asked if this study was done now would it be outdated
23 by the time the consultants completed the review for the Board per the prior
24 motion.
25
26 Mr. Huffman stated that it would not be out of date since the staff of RP&L
27 would keep the information up to date. He also stated that the Public Service
28 Commission insists this be updated on a regular basis.
29
111
30 Councilmember Lemoine asked why this has not been done before now and Mr. Huffman
31 stated it was done two (2) years ago and the Board has not authorized it to
32 be done since.
33
34 Councilmember Williams stated that the cost of service study would be helpful
35 to do the review slated for the first quarter of 1986.
36
37 Mr. Huffman stated that it would be of assistance to have this completed prior
38 to have access to up to date information.
39
40 Councilmember Lemoine requested more research and information on the cost of
41 the study for the Board to review at its next meeting and moved to table the
42 motion for the cost of service study and rate structure review. The motion
43 was seconded by Councilmember Brookbank and was passed on the following call' Of
44 the roll:
45
46 Ayes: Brookbank, Whitesell, Bodiker, Lemoine and Morris (5)
47 Nays: Elstro, Williams, Hankinson and Parker (4)
48
49 ADJOURNMENT
50
51 There being no further business, on a motion duly made, seconded and passed
52 the meeting was adjourned.
53 •
54 0,�,�
55 Lynn IN� e o iagn
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58 ATTEST: m ,Yk 1/2.
59 Mary M rc thouse, City Clerk
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