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HomeMy Public PortalAbout12-21-1981 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, DECEMBER 21, 1981 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 3 session December 21, 1981 at the hour of 7:00 p.m. in the Municipal Building 4 of said City. Chairman Welch presided with the following members present: 5 Messrs. Elstro, Ahaus:, Hankinson, Mills, Parker, Carter and Paust. Absent: 6 Williams. The following business was had, to-wit: 7 8 APPROVAL OF MINUTES OF' DECEMBER 7, 1981 9 10 Councilman Hankinson moved to approve the minutes of the previous meeting as 11 received, seconded by Councilman Ahaus and on unanimous voice vote the motion 12 was carried. 13 14 APPROVAL OF BILLS 15 16 Councilman Hankinson moved to approve the bills in the amount of $421 ,637.38, 17 seconded by Councilman Ahaus and on unanimous voice vote the motion was carried. 18 19 REMARKS. BY CHAIRMAN 20 21 Chairman Welch, on behalf of all members, wished the staff at RP&L a Merry 22 Christmas and a Happy New Year. 23 24 REPORT BY GENERAL MANAGER 25 26 OPEN BIDS FOR ONE ARTICULATED FRONT END LOADER. 27 28 City Attorney Ed Anderson examined proof of publication and found it to be in 29 order. Councilman Mills moved the proof be accepted and filed, seconded by 30 Councilman Ahaus and on unanimous voice vote the motion was carried. 31 32 The following bids were received and recorded: 33 34 State Equipment Company John Deere Model 644C $112,500 - list price 35 62,169 - del. price 36 37 Indiana Equipment Company, Inc. International Huff Model 530 $ 76,924.95 38 39 Korte Brothers, Inc. Trojan Model 2000 $ 63,713. 40 41 MacAllister Machinery Co. Inc. Catipillar 950B $105,438.25 42 43 Kitchen Machinery, Inc. Fiat Alice 645B $ 75,500 44 45 Kitchen Machinery, Inc. Fiat Alice FR-15 $ 81,000 46 47 Rish Equipment Co. International 530 $ 82,999 48 49 Rudd Construction Equipment Corp. Clark 75C $ 78,148.85 50 51 Dravo Marks Fiat Alice 645B $ 77 ,950. 52 53 Mr. Huffman requested the bids be referred to him for evaluation, tabulation III 54 and recommendation. Councilman Ahaus so moved, seconded by Councilman Mills 55 and on unanimous voice vote the motion was carried. 56 57 Chairman Welch thanked the bidders for their interest. 58 59 REQUEST TO RECEIVE BIDS FOR 42 GAPLESS METAL OXIDE ARRESTERS 60 61 Mr. Huffman requested authorization to receive bids for 42 gapless metal oxide 62 lightening arresters at the next meeting. Councilman Elstro so moved, seconded 63 by Councilman Hankinson and on unanimous voice vote the motion was carried. RP&L Minutes Cont'd. December 21, 1981 Page 2 - 1 REPORT ON JOINT AGENCY 2 3 A meeting was held last Friday with the Public Service Company of Indiana 4 concerning the Joint Agency meeting with them on negotiation for contract 5 to purchase a quarter interest in Gibson 5. The consulting firm has run a 6 study which indicates that the most economical method that all the utilities, 7 including the generating utilities, can go by is to buy .power from the agency 8 and then the agency in turn has contracts with I&M, PSCI and other utilities 9 in the area. This allows the group to shop for the unit you want to become a 10 part of; today, the best unit to buy is Gibson 5, because it will be commercial 11 before next year at this time. It is equipped with a scrubber. The indication 12 from the studies is that it is best for the municipal systems to buy their power 13 from the agencies and then those municipal systems having generating equipment 14 will sell their power to the agency. The cities are reimbursed their fixed cost 15 and then there is a split-the-savings arrangement for the sale of the power. 16 RP&L would run unit #2 fifty (50) weeks of the year and unit #1 thirty-one (31) 17 weeks of the year. This would get better utilization from the equipment and 18 the overall power purchase will be less from the Joint Agency than it is cur- 19 rently from I&M. As soon as the contract is consumated, we will be apart owner 20 in the PSC of Indiana Transmission Systems. It will be necessary for the Agency 21 to have a contract, similar to RP&L's' interchange contract with I&M, and also 22 one with NIPSCO to transmit the power to the I&M cities that are served. It is 23 also to RP&L's benefit to maintain a contract with I&M for supply of power be- 24 cause at certain times their power will be cheaper than Public Service. The 25 contract will be available for review in about four (4) weeks at which time 26 R. W. Beck Co. will make a presentation. 27 28 Mr. Huffman stated RP&L will have to start looking at a rate increase, as the 29 industrial usage has dropped off from past normal. Councilman Carter stated 30 he would be reluctant to grant an increase due to the profits shown by the Plant. 31 32 Mr. Huffman, on behalf of management of RP&L, wished the Board a Merry Christmas 33 and a Happy New Year. 34 35 ADJOURNMENT 36 37 There being no further business on motion duly made, seconded and passed 38 the meeting was adjourned. 39 40 Bing Welch 41 Chairman 42 43 ATTEST: JoEllen Trimble 44 CityClerk