June 5, 2008
The regular meeting of the Board of Directors of the Omaha Public Power District was held in the Board Room on the Atrium Level of Energy Plaza East, on June 5, 2008, at 10:00 a.m.
Present were Directors M. J. Cavanaugh, N. P. Dodge Jr., *J. K. Green, G. C. Hall, A. L. McGuire, J. R. Thompson, F. J. Ulrich and D. D. Weber. Also present were *W. G. Gates, President; M. C. Bodammer, Corporate Secretary; and S. G. Olson and S. M. Bruckner, General Counsel for the District. Mr. Ulrich, Board Chair, presided, and Mrs. Bodammer, Corporate Secretary, recorded the minutes. Other members of Management present were D. J. Bannister, *T. J. Burke, *A. J. Minks, C. P. Moriarty, D. F. Widoe, D. G. Ried, G. R. Williams, J. J. Hanson, and M. R. Jones. Others present were R. K. Michel, president of I.B.E.W. Local Union #763; two interns from Fraser Stryker PC LLO, and three customer-owners and employees of the District. (*Note: Director Green entered the meeting at 10:05 a.m. and Mr. Gates, Mr. Burke and Ms. Minks entered the meeting at 10:20 a.m.)
The Corporate Secretary read the following:
“Notice of the time and place of this meeting was publicized by notifying the area news media; by publicizing same in the Omaha World-Herald and Outlets; by displaying such notice on the Arcade Level of Energy Plaza since May 30, 2008; and by mailing such notice to each of the District’s Directors on that same date.
“A copy of the proposed agenda for this meeting has been maintained, on a current basis, and is readily available for public inspection in the office of the District’s Corporate Secretary.
“Additionally, a copy of the Open Meetings Law is available for inspection in the public meeting book located in this meeting room.”
It was moved and seconded that the Board has reviewed the April 2008 Comprehensive Financial and Operating Report and that the minutes for the last meeting be approved. The vote was recorded as follows: Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Absent; Hall – Yes; McGuire – Yes; Thompson – Yes; and Ulrich - Yes. The motion carried.
Thereafter, the Corporate Secretary read the following:
“Persons wishing to address the Board on a particular item are asked to approach the microphone as that agenda item is discussed. Comments will be heard following Board discussion of the item and prior to a vote by the Board.”
The following resolutions were then read, and upon motion duly seconded, were placed on roll call. The vote on each resolution is indicated following the description of that resolution.
RESOLUTION NO. 5704 approves the Engineer’s Certification and authorizes the District to negotiate and enter into contracts for the design, materials and equipment, and installation services associated with intake structure modifications at the Fort Calhoun Station. The discussion was led by Director Hall who stated that waiving the sealed bid process is being recommended to the Board at this time due to the complex technology required to address the modifications and equipment installation. Director Ulrich and Director McGuire both inquired about the evaluation process used to determine the best equipment for the project and Director Hall called upon Vice President Bannister to explain the process. Mr. Bannister responded that several screen designs have been examined at various power stations in order to select the most appropriate equipment possible, and he indicated this is the single largest maintenance item at Fort Calhoun Station. (Note: Director Green arrived during this discussion at 10:05 a.m.) Following the discussion, the vote was recorded as follows: Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5705 authorizes management to enter into a membership agreement with Southwest Power Pool. Director Ulrich inquired how or if membership will affect the District’s off-system sales market. Vice President Widoe replied that membership in Southwest Power Pool (SPP) will more likely have a positive influence by offering OPPD better opportunities for sales throughout SPP and other markets. He commented this particular fact was one of the primary advantages and the main cost driver in the selection process. Further questions were raised regarding OPPD’s membership role in the organization. Mr. Widoe explained that, although OPPD, NPPD and LES negotiated together as a group with common interests related to transmission and the development of membership protocol, OPPD will actually be an individual member of SPP. He added there will be a representative selected from a Nebraska utility to serve on the SPP Membership Committee, probably from either OPPD or NPPD. Following the discussion, the vote was recorded as follows: Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5706 approves the award of Request for Proposal No. 2797 – 161 kV Transmission Steel Poles – to Sabre Tubular Structures in the amount of $1,847,892. Following the discussion, led by Director McGuire, the vote was recorded as follows: Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5707 approves the award of Request for Proposal No. 2724 – North Omaha Station Unit 4 Reheater Replacement – to Irwin Industries in the amount of $1,570,044.34. Following discussion, led by Director McGuire, the vote was recorded as follows: Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5708 approves the Engineer’s Certification and authorizes the District to enter into a contract with Pratt & Whitney Power Systems for the repair of Sarpy County Station, Units 4B, 5A and 5B, at an estimated cost of $300,000. The discussion was led by Director McGuire. (Note: President Gates, Vice President Burke and Vice President Minks entered the meeting at 10:20 a.m. during the discussion of this item.) Board Chair Ulrich inquired when these units will be back in service. Vice President Widoe replied the 5A and 5B units have been disassembled and will be shipped back within the next several days. The repair time in the shop is about one week. The units will then be reinstalled and will become operational before July 1, 2008. When Units 5A and 5B are returned, the 4B unit will be shipped to the Pratt & Whitney shop and should be returned by July 12. He added these units typically have low operational costs and run very efficiently so it is very important to get them back in service as soon as possible. Thereafter, Director Ulrich asked why Unit 4A was not being repaired at this time. Mr. Widoe explained that Unit 4A was out of service during the summer of 2006 when the unit lost some last stage seal bolting. The unit was repaired in late 2006 at the Pratt Whitney shop and during that time the same power turbine issue was addressed. During the recent inspection, Unit 4A was reinspected and no damage was found needing repair. Thereafter, the vote was recorded as follows: Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5709 authorizes the Board of Directors to establish the final date and time for receipt of proposal information on coal supply, rail transportation, and track maintenance contracts. Following discussion, led by Director McGuire, the vote was recorded as follows: Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; and Ulrich - Yes. The motion carried.
Copies of the foregoing resolutions are filed in the District’s Corporate Records file.
At this time, Director Thompson inquired on the status of recent storm damage within the OPPD service territory. President Gates reported that most of the severe damage occurred in Ceresco and called upon Vice President Widoe to provide a damage and repair assessment. Mr. Widoe reported the storms moved through the area starting about 7:30 p.m. on June 4 with significant damage in the Ceresco and Ashland areas, and subsequent storms moved through again on the morning of June 5. At the peak approximately 3,000 customers were without power. The District’s System Operations group declared a system disturbance which is the lowest level of a declared storm. There was great response provided by OPPD crews overnight. Troubleshooters handled most of the metropolitan area outages and only nine metropolitan customers were without power this morning (June 5). Mr. Widoe reported there are currently nearly 1,000 customers without power, approximately 600-700 of these from the Ceresco/Ashland area. A minimum of 30 OPPD structures have been lost on the 69 kV transmission line going to Ceresco and the engineering group is working to scope materials and provide guidance to the crews for replacing those structures as quickly as possible.
There being no further business, the meeting adjourned at 10:26 a.m.
D. F. Widoe M. C. Bodammer
Assistant Secretary Corporate Secretary