HomeMy Public PortalAbout04-07-1980 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 7, 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 7, 1980 at the hour of 7:00 p.m. in the Municipal Building of
4 said City. Councilman Ahaus presided with the following members present:
5 Messrs. Elstro, Williams, Hankinson, Welch, Parker, Carter, Mills. and Paust.
6 Absent: None. The following business was had, to-wit:
7
8 Councilman Williams moved to approve the minutes of the previous meeting as
III 9 presented, seconded by Councilman Mills and on unanimous voice vote the motion
10 was carried.
11
12 Councilman Carter moved the following bills and investments be approved as
13 presented, seconded by Councilman Welch and on unanimous voice vote the motion
14 was carried.
15
16 APPROVE THE FOLLOWING:
17 Bills in the amount of $ 509,281.23
18 Bonds &Interest Coupons 30,041.25
19 1 Payroll 96,346.17
20
21 INVESTMENTS PURCHASED
22 * Cash Operating Fund 14,855.41
23 ** Cash Operating Fund 1,310,000.00
24 * Cash Reserve Fund 64,029. 17
25 * Bond Sinking Fund 71,115.42
26 Depreciation Reserve Fund 104,778.09
27
28 * Treasury, bills and notes (repurchase agreements) maturing in
29 6 months, yielding 15.0% interest
30 Short term investments, agreements)(repurchase a p g ) yeilding 10.5 to
31 14.0% interest
32
III 33 Chairman Ahaus presented a policy change reported out of Executive Committee
34 for approval of capital expenditures as follows: "Any expenditure of a capital
35 nature,, (includes any expenditure for new equipment to service a customer or
36 replace existing equipment and any item which is in the capital improvement
37 budget) , which is more than $10,000.00 shall be brought to the Board of Direc-
38 tors for review and approval at a regularly scheduled meeting, unless it is
39 determined by management that an emergency or emergency situation exists,
40 at which time the expenditure is permissable without prior approval. However,
41 an explanation for the emergency expenditure should be submitted to the
42 Board within thirty (30) days.
43
44- Councilman Williams moved to adopt the policy, seconded by Councilman
45 Parker and on unanimous voice vote the motion was carried.
46
47 General Manager Irving Huffman reported on potential costs RP&L would be
48 encountering becasue of alleged violations. for S02. A figure of two million
49 was cited, which was 'taken from reviewing a similar type of installation.
50 Black & Veatch indicated the present stacks could not be extended because
51 of foundation problems. He has conferred with Black & Veatch and P. W. Beck
52 as far as potential costs to consumer if changes have to be made. The con-
53 sultants both gave a figure of $12,000. R. W. Beck did not include any
54 testing of equipment. RP&L's plant was erected by Black & Veatch and they
55 have all the drawings. Since the quotations are essentially the same price,
56 Mr. Huffman recommended to accept Black & Veatch's. proposal dated March 20,
57 1980 as it appears on motion submitted on the agenda.
III 58
59 Councilman Ahaus read the motion "We accept the Black and Veatch letter
60 proposal Black & Veatch 003R83 dated March 20, 1980 on a cost plus basis with
61 a ceiling of $14,000". Following discussion the motion was amended to add
62 "and proceed pending results of the hearing on April 23 b the Indiana Air
63 Pollution Control Board". Councilman Mills moved to accept the motion,
64 seconded by Councilman Elstro and on a call of the roll the following was
RP&L Minutes cont'd.
April 7, 1980
Page 2
1 recorded: Ayes: Elstro, Williams, Paust, Hankinson, Welch, Parker,Carter,
2 Mills and Ahaus. Noes: None. The vote being nine (9) to zero (0) in favor
3 of passage of the motion.
4
5 Mr. Huffman reported on the recent Infared Fly Over. Texas Instrument will be
6 conducting their school to read these prints on May 7. The State of Indiana
7 has agreed to pay the cost of the school, which is approximately $1,000. The
8 school will be put on here in Richmond and the State will send six (6) re-
9 presentatives to gain knowledge of the infrared pictures. RP&L and CEEMP will
10 have representatives present. After this school, the prints will be made
11 available to the customers.
12 111
13 Mr. Huffman stated RP&L has received notification from Black-Beauty Coal
14 Company that there will be a price increase. Their costs have gone up $4.43
15 per ton since June 30, 1979. An outside consultant varified these costs.
16 Black Beauty cannot absorb the total cost=so April 1 the increase to RP&L
17 will be $2.33. This will show up as an additional cost to the consumer but
18 not for a six (6) month period. This increase cost will reflect $1.06 per
19 1,000 KWH use. The original contract price was $22.88 at the mine and freight
20 charges are over and above that. The truck price is $32.60 and rail price is
21 $32.75 with the April 1 increase.
22
23 There being no further business on motion duly made, seconded and passed the
24 meeting was adjourned.
25
26 Rick Ahaus
27 Chairman
28
29 ATTEST: JoEllen Trimble
30 City Clerk