HomeMy Public PortalAbout02-19-1985 PROCEEDINGS OF THE Chi COUNCIL OF THE
CITY OF RICK, INDIANA, SERVING AS A BOARD •
IN CHARGE OF THE OPERATION OF THE RICH POWER
& LIGHT PLANT, FEBRUARY 19, 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 February 19, 1985 at the hour of 7:00 P.M. in the Municipal Building in said
III 4 City. Chairperson Morris presided with the following members present: - Council-
5 members Elstro, Williams, Brookbank, Hankinson, Whitesell, Parker, Bodiker and
6 Lemoine. Absent: None. The following,business was had to-wit:
7
8 APPROVAL OF MINUTES OF FEBRUARY 4, 1985
9
10 Councilmember Hankinson moved to approve the minutes of the previous meeting as
11 prepared, seconded by Councilmember Brookbank and on unanimous voice vote the
12 motion was carried.
13
14 APPROVAL OF BTr T S AND INVESTMENTS
15
16 Councilmember Whitesell moved to approve the bills already paid and investments
17 purchased, seconded by Councilmember Bodiker and on unanimous voice vote the
18 motion was carried.
19 -
20 Bills Already Paid:
21 Payroll and deductions 2/8/85 148,993.78
22
23 Investments Purchased from:
24 Depreciation Reserve Fund 4,828,933.49
25 Utility Bond Reserve Fund 502,088.09
26 Cash Operating Fund 625,000.00
27 Total Investments 5,956,021.58
28
III29 Miscellaneous Bills Already Paid 71,434.21
30
31 Bond Principal & Interest Payment 39,243.75
32
33 Total Bills Already Paid 6,215,693.32
34
35 Councilmember Whitesell moved to approve bills in the amount of 231,506.03 for
36 payment, seconded by Councilmember Hankinson and on unanimous voice vote the
37 motion was carried. •
38
39 Grand total or all bills approved is 6,447,199.35.
40
. 41 REMARKS BY CHAIRPERSON .
42
43 Chairperson Morris announced that agenda items for the regular Executive Board
44 meeting on February 25, 1985 should be in to her or Mr. Huffman by February 20,
45 1985.
46 UNFINISHED BUSINESS
47
48 Cable TV Study
49
50 Councilmember Elstro asked Mr. Huffman about the quotes he had received regarding
51 the study of Cable TV in the Richmond Area. Mr. Huffman stated that of the
52 quotes received he felt Rice Associates was the best. Chairperson Morris
III53 added this item to the February 25, 1985 Agenda for further study and to decide
54 what items would be-included in the study.
55
56 STREET LIGHT COMMITTEE
57
58 Councilmember Elstro stated that he was working on two (2) areas and would be
59 bringing it to the committee for action.
60
61 REPORT BY GENERAL MANAGER
62,
63 Award Bid for one 1985 One Ton Dump Truck.
64
65 General Manager Huffman presented the tabulation sheet for one (1) 1985 one ton
RP&L Minutes Con't
February 19, 1985
Page 2
•
1 dump truck and recommended the acceptance of the lowest and best bid of Brookbank
2 Chevrolet at 11,330.00 with trade in allowance.
3 •
4 Mr. Huffman told the Board that he had offered the used vehicle to the Street
5 Department and it had been too small for their use.
6
7 Councilmember Hankinson moved to award the bid for a 1985 one (1) ton dump truck
8 to Brookbank Chevrolet, seconded by Councilmember Whitesell and on a voice vote
9 with Councilmember Brookbank abstaining the motion was carried.
10
11 The Disclosure Statement of Councilmember Brookbank was presented as follows:
12
13 Jane Brookbank in compliance with the terms of I.C. 35-44-1-3 (d) (1) through
14 (d) (6) does hereby under the penalty of perjury affirm:
15
16 She is a duly elected member of the Common Council of the City of Richmond,
17 Indiana and a member of the Board of Directors of the Richmond Power & Light
18 Plant.
19
20 She is the wife of Tom Brookbank who is the owner of all the common stock
21 of Tom Brookbank Chevrolet, Inc., from which corporation Richmond Power
22 & Light has agreed to purchase:
23
24 One (1) 1985 one ton dump truck
25
26 She is a guarantor or joint obligor as to certain indedtedness of Tan
27 Brookbank Chevrolet, Inc.
28
29 /s/ Jane Brookbank
30 February 19, 1985
31
32 Disclosure Statements for Councilmembers Brookbank, Parker and Whitesell
33
34 The Clerk presented the Disclosure Statements for Councilmembers Brookbank, Parker
35 and Whitesell stating possible conflicts of interest with their respective places
36 of employment or business interests for purchases by Richmond Power & Light
37 in amounts so small as to not require a formal bidding process for the year 1985.
38
39 NEW BUSINESS
40
41 Funding of Economic Development Director's Office for 1985
42
43 Councilmember Hankinson stated that with the advent of the Office of the Economic
44 Develoment Director for the City of Richmond, Richmond Power & Light's •
45 responsibilities for Industrial Develoj.auent have lessened and he offered the
46 following motion:
47
48 The entire budget of the Office of the Economic Development Director of the
49 City of Richmond, Indiana, be funded by Richmond Power and Light for the
50 year 1985.
51
52 The motion was seconded by Councilmember Elstro.
53
54 Councilmember Hankinson also added that the amount of this money not be used as
55 a cost factor in any future rate cases.
56
57 Councilmenber Whitesell asked if this had been reviewed in Richmond Power & Lights
58 finances and Mr. Huffman explained that RP&L would transfer funds to the City
59 General Fund to be used for the Economic Development Director's Office.
60
61 Mr. Barden stated that this motion directs the proper paper work to be started
62 'to accomplish the transfer of funds.
63
64 Councilmember Bodiker asked if it would be legal to transfer within the budgetary
65 year and Mr. Barden explained it was legal since RP&L was not as restrained as
RP&L Minutes Cont'd •
February 19, 1985 .
Page 3
- 1 the Civil City.
2
The motion to fund the Office of the Economic Development Director for 1985 was
III4 passed on the following call of the roll:
5
6 Ayes: Elstro, Williams, Brookbank, Hankinson, Whitesell, Parker, Bodiker, Lemoine
7 and Morris (9)
8 Nays: None
9
10 Chairperson Morris thanked Councilmember Hankinson for his motion.
11
12 Mr. Huffman stated that the Economic Development Office is doing a very good job
13 and he hopes the office will continue to have the freedom to do this fine job.
14
15 Motions to Obtain the Services of an Accounting Firm and Interview Consulting ,
16 Firms Qualified in Electrical Systems .
17
18 Councilmember Whitesell made the following statement:
19
20 Assuring RP&L's continued benefit to the City of Richmond and to RP&L's
21 customers is very important. Providing for the necessary growth, capital
22 equipirent replacement and day to day operating funds is essential--
23 obtaining a resonable return on operations is likewise included.
24 .
25 Customer service rates must be at the lowest possible structure which allows
26 for the items which have been indicated. It is thus very important that
27 RP&L's Board of Directors be equipped with proper information to direct
28 RP&L in the achievement of these objectives. ,
III 29
30 I therefore, offer the following motions:
31
32 I move to direct the finance committee to obtain the services of a properly
33 qualified accounting firm to review RP&L's financial status and provide
34 infoiiiiation requested including the following:
35
36 1. Levels of fund reserves required to moot bonding requirements and the
37 various regulatory agency requirements.
38 2. Levels of funds recommended for replacement of facilities short and long
39 term.
. 40 3. Funds necessary for various day to day activities.
41 4. Levels of invested funds to provide various levels of return and their
42 effect upon operating return.
43
44 This report and review will be with the total Board. Action resulting from
45 infoundtion provided will be at the direction of the full board and management
46 of RP&L.
47
48 Councilmember Brookbank seconded the motion.
49
50 Councilmember Parker asked what the purpose was and Councilmember Whitesell stated
51 that it would give an overview of the financial status and the information requested
52 would give the Board technical and financial knowledge.
III 53
54 Councilmember Bodiker stated that he would like more time to study the motion
55 .for possible amendments or omissions. Councilmember Bodiker moved to table
56 the motion for further study, seconded by Councilperson Hankinson and on the
57 following vote the motion was carried.
58
59 Ayes: Elstro, Williams, Hankinson, Parker and Bodiker (5)
60 Nays: Brookbank, Whitesell, Lemoine and Morris (4)
61
62 Councilmember Whitesell also offered the following motion:
63
64 In addition to the financial areas of review essential for the Board's
65 determination of short and long term direction, the Board likewise must have
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•
RP&L Minutes Cbnt'd •
February 19, 1985
Page' 4
1 an overview of present operations and also consider operating alternatives
2 to insure that the customers needs and the citizens of Richmond best
3 interests are being met in addition to providing for proper operations:
4
5 I would thus move to direct the Board of Directors Executive Conanittee
6 members to interview prospective consulting firms that are qualified in
7 electrical systems. The objective of the interview would'be to determine
8 the consulting firm's credentials and ability to provide reco[lLuenclations
9 to the Board for areas which include the following:
10
11 1. Methods which would achieve lower "peak power" purchase commitments and
12 thus their cost impacts.
13
14 2. Methods which would allow for taking broader advantage of the excess
15 power available in the Midwest.
16
17 3. Actions which might be initiated towards the various regulatory agencies
18 and legislative bodies which woUJd allow for more efficient and economical
19 operation ofa municipal utility.
20
21 4. Overall establishment of operating performance criteria for a utility
22 of RP&L's size, scope and capabilities.
23
24 After review of such firms the Executive Board shall report back to the full
25 Board with cost projections and recommendations for further actions of which
26 the full Board must authorize.
27
28 Councilmember Lemoine seconded the motion.
29
lir
30 Councilmember Hankinson moved to table the motion for further study, seconded
31 by Councilmember Bodiker and on the following vote the motion was carried:
32
33 Ayes: Elstro, Williams, Hankinson, Parker and Bodiker (5)
34 Nays: Brookbank, Whitesell, Lemoine and Morris (4)
35
36 Councilmember Williams cautioned the Board to be certain that all Federal and
37 State regulations regarding municipal utilities are taken into consideration before
38 changes are considered at RP&L.
39
40 ADJCURNMENT
41
42 There being no further business on a motion duly made, seconded and passed the
43 meeting was adjourned.
44 97,e240 - i37,4444'
45
46 Lynn Nepote Morris, Chaiiperson
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49 •
50 ATTEST:
51 Ma M ch thouse
52 City Clerk
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