HomeMy Public PortalAbout04-16-1979 •
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, APRIL 16, 1979
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 16, 1979 at the hour of 7.:00 p.m. in the Municipal Building
4 of said City. Councilman. Ahaus presided with the following members present:
5 Messrs. Elstro, Williams, Austerman, Whitesell, Mills, Carter, Paust,.a: d Welch.
6 Absent: None. The. following business was had, to wit: -III -
7
8 Chairman Ahaus noted the minutes of the April 2, 1979 meeting should be
9 corrected to read "Cash Operating Fund $700,000.00". Councilman Paust moved
10 to approve the minutes as corrected, seconded by Councilman Mills and on
11 unanimous voice vote, the motion was carried.
12
13 Councilman Carter moved to approve the .following bills; transfers and investments,
14 seconded by Councilman Welch and on unanimous voice vote, the motion was
15 carried:
16
17 APPROVE THE FOLLOWING:
18 Bills in the amount of $ 334,384.84
19 Bonds and Interest Coupons 125.00
20 1 Payroll 90,656.01
21
22 TRANSFERS FROM CASH OPERATING FUND TO:
23 Cash Reserve Fund- - 67,105.92
24 Depreciation Reserve Fund 91,000.00
25 Utility Bond Sinking Fund 68,438.33
26
27 INVESTNENTS PURCHASED
28 * Cash Operating Fund 1,095,000.00 .
29 ** Utility Bond Reserve- Fund 371,371.00
30 ** Consumers Deposit Fund 18,342.00
III31 ** Cash Reserve Fund 67,797.00
32 ** Depreciation Reserve. Fund 287,175.00
33
• 34 * Short Term U.S. Treasury notes yielding, 10.125% and. 91/4%
35 ** U.S. Treasury•Notes yieldirig,.'10.:125% and maturing October 1979
36 . . . .
37 Chairman Ahaus• noted the Executive meeting will be. next Monday at 7:00 at
38 RP&L. Mr. Arnold Leas will be present at this meeting.
39
40 Chairman Ahaus welcomed Terry Whitesell:as a`member of the-Board of Directors
41 of RP&L.. , .. - •
42
43 Councilman Carter has furnished the Board with copies of the following.
44 Depreciation Reserve Fund Policy change:
45 . •
46 III. DEPRECIATION .RESERVE FUND POLICY
47
48 The committee recommends the following: If the net operating income
49 (before interest income and interest expense) is less than $150,000.00
50 per month based on a year. to date accumulative average ,orif. theCash
51 . Operating Fund balance drops below $850,000.00, all property and plant
52 . expenditures should be paid from the Depreciation Reserve Fund, unless
53 special authorization, or some restrictive law, rule or code prohibits
54 the expenditure being paid from the Depreciation Reserve Fund. The
55 Finance Committee should determine which fund.-should be used to pay for
III 56 items costing more than $50,000.00. As long as power generating equipment,
- 57 other major equipment, and purchase power costs keep excalating in price,
58 no less than $2,500,000.00 should:be maintained in the Depreciation
59 Reserve Fund. The maximum- should be determined annually by the Board.
60 (See Exhibit #2-A)
RP&L Minutes Cont.
April 16, 1979
Page 2
1 Councilman Mills moved to accept the Depreciation Reserve Policy change,
2 seconded by Councilman Carter and on unanimous voice vote, the motion was
3 carried.
4
5 Councilman Mills reported that the Street Light Committee is recommending
6 a street light on South llth, as requested by a group of residents.
7
8 General Manager Irving Huffman presented tabulation on one (1) four-wheel
9 drive vehicle and two (2) four door cars. He recommends the bid of
10 Kurdys Br,00kbank Chevrolet of $7,566.46 for the four-wheel drive as being
11 - the lowest and best bid.
12
13 Councilman Elstro moved- to accept the recommendation of Mr. Huffman, seconded
14 by Councilman Paust and on a call of the roll, the following was recorded:
15 Ayes: Elstro, Williams, Austerman, Whitesell, Mills, Carter, Paust, Welch
16 and Ahaus. Noes: None. The vote. being nine (9) to zero (0) in favor of
17 the motion.
18
19 Mr. Huffman recommends the bid of Fred First Ford for the two (2) four door
20 cars at $4,628.84 each be accepted as the best and lowest bids.
21
22 Councilman Paust moved to accept the recommendation of Mr. Huffman, seconded
23 by Councilman Williams and on a call of the roll, the following was recorded:
24 Ayes: Elstro, Williams, Austerman, Whitesell, Mills, Carter, Paust, Welch
25 and Ahaus. Noes: None. The vote being nine (9) to zero (0) in favor of the
26 motion.
27
28 City Attorney Ed Anderson examined proof of publication for a 45 H.P. trencher
29 and back hoe and found it to be in order. Councilman Mills moved the proof
30 be accepted and filed, seconded by Councilman Welch and on unanimous voice
31 vote, the motion was carried.
32
33 The Ffollowing bids were received and recorded: Davis Equipment $23,610.00
34 with an alternate bid of $20,990.00; Vermeer of Indiana, Inc. $23,748.00;
35 Ditch Witch $23,998.00.
36 - .
37 Councilman Mills moved to refer the bids to Mr. Huffman for .study, review
38 and tabulation, seconded by Councilman Carter and on unanimous voice vote,
39 the motion was carried.
40
41 Mr. Huffman stated the letter received by RP&L for maintenance work done
42 on Line 633 has been rescended. Mr. Huffman stated the line is profitable
43 and there are no subsidies. RP&L rate is based upon a volume freight rate
44 so any rate increase would be an across-the-board type increase.
45
46 Councilman Austerman..requested input from other Councilmen as to changing
47 the Policy & Implementation Committee to an Executive Committee composed of
48 four (4) Councilmen and three (3) management.
49
50 Mr. Huffman invited Board members to the Indiana Municipal Electric Association's
51 annual meeting at Lee's Inn on April 25th and 26th.
52
53 There being no further business on motion duly made, seconded and passed, the
54 meeting was .adjourned.
55
56 Rick Ahaus
57 Chairman
58 ATTEST: JoEllen Trimble
59 City Clerk