HomeMy Public PortalAbout04-21-1980 PROCEEDINGS OF THE COMMON COUNCIL OF THE
CITY OF RICHMOND, INDIANA, SERVING AS A BOARD
IN CHARGE OF THE OPERATION OF THE RICHMOND POWER
AND LIGHT PLANT, APRIL 21, 1980
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 April 21, 1980 at the hour of 7:00 p.m. in the Municipal Building of
4 said City. Councilman Ahaus presided with the following memebers present:
5 Messrs. Elstro, Paust, Hankinso, Parker, Carter and Mills. Absent: Messrs.
6 Williams and Welch. The following business was had, to-wit:
7
III 8 Councilman Elstro moved to approve the minutes of the previous meeting as
9 presented, seconded by Councilman Mills and on unanimous voice vote the
10 motion was carried.
11
12 Councilman Carter moved to approve the following bills, transfers and invest-
13 ments as presented, seconded by Councilman Hankinson and on unanimous voice
14 vote the motion was carried.
15
16 APPROVE THE FOLLOWING:
17 Bills in the amount of $1,163,405.33
18 Bonds and Interest Coupons 2,993.75
19 1 Payroll 97,043.79
20
21 TRANSFERS FROM CASH OPERATING FUND TO:
22 Cash Reserve Fund 64,029.17
23 Bond Sinking Fund 71,115.41
24 Depreciation Reserve Fund 87,506.84
25
26 INVESTMENTS PURCHASED:
27 * Cash Operating Fund 451,884.59
28 ** Cash Operating Fund - 495,000.00
29 * Bond Sinking Fund 71 ,115.41
30 Cash Reserve Fund 64,029.17
31 *** Depreciation Reserve Fund 87,506.84
32
III 33 U.S. Treasurey notes (repurchase agreements) .maturing 6/16/80
34 yielding 14.0% interest
35 ** U.S. Treasury notes (repurchase agreement) maturing 4/21/80,
36 yielding 10.5% interest
37 *** C.D. maturing 10/11/80, yielding 15.0% interest
38
39 Chairman Ahaus announced the Executive Committee will be meeting. April 28
40 at 7:00 p.m. at RP&L.
41
42 Councilman Mills, Chairman of the Street Light Committee, stated a request
43 was sent to the Board of Works requesting lighting on South 11th and 12th
44 and this received Board approval. He stated he received a request for
45 lighting on North "J" between 10th and 12th. He noted there are five (5)
46 lights on the south side in this section approximately 150' apart and feels
47 this is sufficient. He requested Councilman Elstro look at the area.
48
49 General Manager Irving Huffman submitted a joint agency resolution to the
50 Board. The joint agency has been discussed for several years and now per-
51 missive legislation has been passed to form this agency. It is necessary
52 for those participating in the agency to pass resolutions and ordinances
53 with those other cities. The resolution is presented to this Board and
54 there will be aai ordinance on first reading before Common Council. This
55 allows RP&L to become a member of the joint agency but does not obligate
56 them to any projects. These would have to first be reviewed and the costs
57 projected. This body would decide these issues. There can be some "up-
"' front" money in the study stages and this Board will review to see if RP&L
59 wants to get involved in studies for proposed projects. Any expenditures
60 will be refunded back to the cities in bond sale if the project goes through;
61 if it does not go through, the "up-front" money will not be refunded. Mr.
62 Huffman requested authorization that the joint agency resolution be signed.
63 Councilman Mills so moved, seconded by Councilman Elstro and on a call of
64 the roll the following was recorded: Ayes: Elstro, Paust, Hankinson, Parker,
RP&L Minutes Cont'd. -
April 21, 1980
Page 2
1 Carter, Mills and Ahaus. Noes: None. The vote being seven (7) to zero (0)
2 in favor of passage of the Joint Agency Resolution. Mr. Huffman encouraged
3 passage of Ordinance No. 36-1980 before Common Council. Mr. Huffman noted
4 this body will want to elect a representative for this agency by early July.
5
6 Reporting on the proposed rate increase, Mr. Huffman noted the Chairman of
7 the Commission has set the rate case down for hearing June 2 in Indiana-
8 polis. The Chairman has set the public hearing for the same date. These
9 hearings are different than a normal trial because all testimony has to be
10 pre-filed. The public counselor has had his staff review RP&L's books and
11 he is currently preparing his material to be used in the rate case.
12 Councilman Carter pointed out RP&L is way over budget and he feels there
13 is no need for a 17% increase. Chairman Ahaus noted RP&L is under the pro-
14 jected expenses. Several Councilmen expressed concern over the increase
15 being justified. Councilman Elstro requested RP&L staff get facts and
16 figures together for the meeting next Monday night.
17
18 Mr. Huffman stated the Indiana Air Pollution Control Board has set a hearing
19 concerning state implementation plan APC 22 which is the regulation which
20 listed us as a non-attainment area. This alleges they have picked up a
21 violation. RP&L is unable to obtain data as the only information they have
22 received is very skimpy. There are two (2) monitoring stations. Immedi-
23 ately after the IAPCB ruled in RP&L's favor last May, the station was brought
24 in and it took eight (8) months to get the first violation. A solution to
25 the problem is quite expensive. Mr. Huffman stated he feels RP&L is on
26 trial next Thursday. The IAPCB would disagree saying they are only talking
27 about the state implementation plan. Mr. Huffman stated he feels this is
28 the first step. They hide behind laws passed so the agency does not need
29 to be accountable. The approximate cost would be two million dollars. This
30 would triple over twenty years. A customer using 1000 kwh average would be
31 $45.00. An agency must be accountable for its decisions and they should be
32 made with economic justification.
33
34 There being no further business on motion duly made, seconded and passed
35 the meeting was adjourned.
36
37 Rick Ahaus
38 Chairman
39
40 ATTEST: JoEllen Trimble
41 City Clerk