HomeMy Public PortalAbout10-15-1979 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, OCTOBER 15, 1979
1 The Common Council of the City of Richmond, Indiana, serving as a Board
2 in charge of the operation of the Richmond Power & Light Plant, met in
3 regular session October 15, 1979 at the hour of 7: 00 p.m. in the Municipal
4 Building of said City. Chairman Ahaus presided with the following members
5 present: Messrs. Elstro, Williams, Austerman, Whitesell, Mills, Carter,
6 Paust and Welch. Absent: None. The following business was had, to-wit:
78 Councilman Williams moved to approve the minutes of the previous meeting,
9 seconded by Councilman Mills and on unanimous voice vote, the motion was
10 carried.
11
12 Councilman Carter noted on the bills, transfers and investments that some of
13 the treasury notes that have been purchased are about to mature. He wonders
14 if they are buying treasury notes 'or treasury bills. He stated the notes
15 would have been purchased since. the previous Richmond Power & Light meeting.
16 Chairman Ahaus recommended Councilman Carter give Delmar Cox a. call to clear
17 this matter. Councilman Austerman suggested a look be taken as to where
18 investments are being made with the local community in mind. He .suggested
19 purchasing locally. Councilman Carter suggests representatives of the two
20 (2) local banks get with Delmar Cox and update the agreement made in 1972 or
21 1973; also, look -at the money market and C.D.'s investing locally if the interest
22 is competitive. Councilman Austerman would feel better .if someone represents
23 him as a member of the Finance Committee as he is employed by Second National
24 Bank. Councilman Mills pointed out that this Board had told Delmar Cox to
25 invest the funds even for short periods of time.
26
27 Councilman Carter moved_to approve the following .bills, transfers and
28 investments with a follow .up to Delmar -Cox on treasury notes as noted here,
29 seconded by Councilman Welch and on unanimous 'voice vote, the motion was
30 carried. ,
31
32 APPROVE THE FOLLOWING:
33 Bills in the amount of - $. 649,425.09 .
34 Bonds and Interest Coupons 150.00
35 1 Payroll 93,551.96
36 •
37 TRANSFERS FROM CASH OPERATING FUND TO:
38 Cash Reserve Fund 64,029.17
39 Bond Sinking Fund • 68,188.33
40
41 INVESTMENTS PURCHASED
42 * Cash Operating Fund 250,000.00
43 ** Cash Operating Fund 140,000.00
44 * Depreciation Reserve Fund 102,960.00
45
46 * Treasury notes maturing 12/19/79, yielding 10.5% interest
47 ** Treasury notes maturing 10/19/79, yielding 10.5% interest
48
49 Councilman Carter will get with Delmar Cox on investment procedures.
50
51 Chairman Ahaus noted .the next Executive Meeting will be Monday, October 22
52 at RP&L at 7: 30 p.m.
53
54 Councilman Mills looked at 608 Peacock in the alley on a request for a street
III55 light in this location. There are two over-hanging limbs that would block
56 out .the alley from the placement of the light to 6th Street. He suggested
57 Councilmen Whitesell and Elstro go with him to take a look at it,before
58 giving a recommendation.
59
60 General Manager Irving Huffman gave the following statement:
RP&L Minutes Cont.
October 15, 1979
Page 2
1 Richmond Power and Light was advised today by Conrail that our intrastate
2 volume freight rate increased from $7.12 per ton to $7.46 per ton. This will
3 mean in about three months our rate payers will see a 17 cents increase for
4 each 1000 KWH usage.
5
6 In. addition last Thursday in Chicago the Illinois - Indiana Coal and Coke
7 Committee of Western Railways held a public hearing to receive protests to their
8 proposed 22 percent increase to intrastate volume freight rates for coal. This
9 increase would eliminate the volume rate and raise the intrastate rate to the
10 single car interstate rate.
11
12 Our attorney Paul Hirsch,. of Haymaker, Hirsch&.Fink,' Indianapolis, along
13 with representatives of Indianapolis Power & Light, Public Service Company
14 of Indiana, Northern Indiana Public Service Company and Peabody Coal Company
15 spoke in opposition to the 22 percent proposed increase. The Committee of
16 Railroads plan to study the opposition remarks and then will file for the increase
17 later this year at the Public Service Commission's of Indiana and Illinois.
18
19 If we lose the volume intrastate rate, our rate payer will not only receive
20 another probable 50 cent increase per 1000 KWH of electrical usage, but we will
21 loose old P.C. 633 and through freight service from Conrail. Losing the volume
22 intrastate rate would cause the subsidizing of P.C. 633 not to be cost effective.
23 All citizens of Richmond would lose.
24
25 Early 1975 our freight rate wat $4.63 per ton. Effective today, the rate
26 is $7.46 per ton. This represents a $2.83 or 61 percent increase in less than
27 5 years. In addition the railroad wants another 22 percent increase by early
28 next year.
29 �.
30 We are and will continue to oppose this seco d' increase, jointly with
31 P .S .C.I., N.I.P.S .CO, I.P. & L., Peabody Coal Co. :and others.
32 -r
33 We actually have no other choice, if we want to -keep 633 open and our
34 customers rates down.
35
36 There being no further business on motion duly made, seconded and, passed
37 the meeting was adjourned. -
38
39 Rick Ahaus
40 Chairman
41
42 ATTEST: JoEllen Trimble
43 City Clerk