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HomeMy Public PortalAbout11-18-1968 MINUTES OF THE MEETING OF THE COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA, SERVING AS A COM- MITTEE IN CHARGE OF THE OPERATION OF THE RICHMOND POWER & LIGHT PLANT, NOVEMBER 18, 1968 The Common Council of the City of Richmond, Indiana, serving as a com- mittee in charge of the operation of the Richmond Power & Light Plant met in regular session in the Council Chambers in the City Building in said City, November 18, 1968, at the hour of 7:00 o'clock P.M. (EST) . Councilman Geier presiding with the following members being present: Messrs. Elstro, Henn, Hilligoss, F. Marino, P. Marino, Paust and Stigleman. Absent: Blackwood. The following business was had to-wit: Councilman Stigleman moved that the minutes of the previous meeting stand as read, seconded by Councilman F. Marino and on unanimous voice vote was carried. Councilman Stigleman moved that the following be approved, seconded by Councilman Paust and on unanimous voice vote was carried. Approve the following: Bills in the amount of $ 160,156.70 1 Payroll 56,545.79 Interest Coupons on Revenue Bonds 227.50 Transfer from Cash Operating Fund to: Depreciation Reserve Fund $ 36,000.00 Cash Reserve Fund 49,146.60 Utility Bond Fund 21,530.21 Announcement was made of a meeting of the Light Plant Board for Monday, evening, Nov. 25, at 7 p.m. at the Light Plant to discuss the budget. Councilman Hilligoss asked whether or not the pension contract was in force, Chairman Geier answered that it was. He said the amendments were not yet finalized, and that the City Attorney had advised that a pension never be closed to amendments. Councilman Henn asked whether or not the employees want the pension plan, and whether or not everyone must belong. Mr. Geier answered that the employees do want the pension plan but that not everyone must belong. Councilman Hilligoss wanted to know what percentage of their salary do employees get at retriement? Mr. Earl Beck, Light Plant Manager, answered that varied with the length of service, usually it is between 50% and 60%. The formula used is 12% of salary times the number of years of service. Mr. Beck read a letter from Delmer Cox, accountant, stating that after fund transfers Monday, there would be $540,000.00 available for investment in the Cash Reserve, which amount could be invested in U.S. Treasury Bills that will mature December 26, 1968 and would be available for the City Dividend. Councilman Stigleman moved that the Light Plant should place the order with the Second National Bank for the Treasury Bills, seconded by Councilman Elstro and on unanimous voice vote was carried. Mr. Beck discussed future increase in operating costs of RP&L, due to increase in wages and large increase in cost of coal. Most of the added expense will be borne by industrial users of electricity. Mr. Beck discussed the Yankee-Dixie Power Association proposal. Under the proposal, Yankee-Dixie would supply low cost energy to utilities from New England to Florida. Three 2-million kilowatt plants located in the Appalachian coal fields would inter-connect the existing systems in 22 states, of which Indiana is one. It is estimated that Y-D could reduce cost of electricity by 25% in high-usuage areas. It is run on a non-pr®t'it basis and no federal funds are involved. Cost of membership to RP&L would be $250.00 per year. We have a ten-year contract with Indiana-Michigan. It is not yet known when the Y-D Project will be completed. Mr. Beck said that could possibly be used as a bargaining lever with Indiana-Michigan, He will attend a meeting of the Y-D Association to be held in French Lick, Ind. , and will report back to the Board afterwards. There being no further business on motion duly made, seconded and carried, the meeting adjourned. /s/ Jerry Geier, Chairman ATTEST: Lo to Hoskins, City Clerk