February 14, 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 February 14, 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. 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, G. R. Williams, J. J. Hanson, and M. R. Jones. Others present were Richard K. Michel, president of I.B.E.W. Local Union #763; and approximately ten customer-owners and employees of the District.
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 February 8, 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 December 2007 Comprehensive Financial and Operating Report and that the minutes for the last meeting be approved. The vote was recorded as follows: Green – Yes; Hall – Yes; McGuire – Yes; Thompson – Abstain; Weber – Yes; Cavanaugh – Yes; Dodge – Abstain; 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. 5675 approves the 2008 Standing Committee assignments for the Board of Directors. Following discussion, led by Director Cavanaugh, the vote was recorded as follows: Green – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; and Ulrich – Yes. The motion carried.
RESOLUTION NO. 5676 approves award of Request for Proposal No. 2693 – Steel Poles for Line 34 Rebuild CKT 1533, Substation 1209 to Substation 1252 – to TransAmerican Power Products, Inc. in the amount of $514,140. Following discussion, led by Director McGuire, the vote was recorded as follows: Green – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; and Ulrich – Yes. The motion carried.
RESOLUTION NO. 5677 authorizes Management to enter into a contract with FreightCar America in an amount not to exceed $21,479,310 for the purchase of 285 new rapid discharge aluminum coal cars to be delivered during the fourth quarter of 2008. Director McGuire led the discussion and stated requests for proposals were initially sent to 15 coal car builders and coal car leasing companies, and the bid proposals received were later reduced to three final proposals. Director McGuire commented the proposal from FreightCar America is more than $2 million lower than the budget estimate. Director Green inquired whether the cost will be prorated among the Nebraska City Power Partners and the District. Vice President Widoe replied the entire fuel stock expense associated with Nebraska City Station Unit 2, including fuel and fuel-related transportation expense, will be prorated with the other participants. Director Thompson asked for clarification that this contract is for the purchase of two train sets and that a third set might be required. Mr. Widoe stated at least two sets are needed at this time, and that fleet performance will be evaluated, as well as the ability to shift trains between North Omaha Station and Nebraska City Station. He said it may ultimately become necessary to purchase a third train set in order to support the generation requirements of Nebraska City Station Unit 2. Board Chair Ulrich inquired how much larger the coal inventory will be when Nebraska City Station Unit 2 becomes operational and Mr. Widoe affirmed it will double in size. He remarked there are currently over 830,000 tons of coal on site, and approaching one million tons, which is the target inventory.
Thereafter, the vote was recorded as follows: Green – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; and Ulrich – Yes. The motion carried.
RESOLUTION NO. 5678 approves the appointment of David J. Bannister as Vice President and Chief Nuclear Officer, and Assistant Secretary, effective February 24, 2008. Following discussion, led by Director Weber, the vote was recorded as follows: Green – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; and Ulrich – Yes. The motion carried.
Copies of the foregoing resolutions are filed in the District’s Corporate Records file.
There being no further business, the meeting adjourned at 10:14 a.m.
A.J. Minks M.C. Bodammer
Assistant Secretary Corporate Secretary