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Home > About Us > Company > Board of Directors

March 2008 Board Meeting Minutes

 

 

March 13, 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 March 13, 2008, at 10:00 a.m.

 

                        Present were Directors M. J. Cavanaugh, J. K. Green, G. C. Hall, A. L. McGuire,  J. R. Thompson, and F. J. Ulrich.  Director N. P. Dodge, Jr. and Director D. D. Weber were absent.  Also present were W. G. Gates, President; M. C. Bodammer, Corporate Secretary; and S. G. Olson, 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, A. J. Minks, C. P. Moriarty, D. F. Widoe, K. A. Roth, C. L. Buettner, M. I. Doghman, G. R. Williams, and M. R. Jones.  Others present were Richard K. Michel, president of I.B.E.W. Local Union #763; and approximately 16 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 March 7, 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 January 2008 Comprehensive Financial and Operating Report and that the minutes for the last meeting be approved.  The vote was recorded as follows:  Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Absent; Green – 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. 5679 approves the 2007 Annual Report for the District’s Health Plan.  The District changed to a self-funded Administrative Services Only (ASO) Health Plan in 1992 and since then has been purchasing insurance coverage providing protection against claims exceeding 120% of the corporate operating budget.  State statutes require that the Board of Directors review and approve the ASO annually. Director Green stated that Coventry Health Care and Ameritas Life Insurance Corp. are the two current health care providers and that two funded reserves are maintained for the Health Plan.  Following the discussion, the vote was recorded as follows:  Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Absent; Green – Yes; and Ulrich - Yes.  The motion carried.

 

                        RESOLUTION NO. 5680 approves the Engineer’s Certification and authorizes Management to negotiate and enter into a contract to provide services for the repair of high pressure turbine components during the 2008 refueling outage.  Director Green led the discussion and indicated that the extent of repairs will not be determined until the high pressure turbine components are inspected during the 2008 refueling outage at Fort Calhoun Station.  Thereafter, he commented that, should repairs be required, it is recommended that Wood Group MVP Turbine Repair Group, Inc. perform the work.  The vote was recorded as follows:  Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Absent; Green – Yes; and Ulrich - Yes.  The motion carried.

 

                        RESOLUTION NO. 5681 approves the award of Request for Proposal No. 2713 – 161 kV Circuit Switchers – to Southern States, LLC in the amount of $252,304.  Director McGuire stated the circuit switchers will be installed at a new substation located on the Cargill campus.  Following discussion, the vote was recorded as follows:  Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Absent; Green – Yes; and Ulrich - Yes.  The motion carried.

 

                        RESOLUTION NO. 5682 approves the award of Request for Proposal No. 2708 – Sub 1305 Preassembled Substation Control Building – to Electrical Power Products, Inc. in the amount of $418,197.  This substation control building is for the new substation located on the Cargill campus.  Following discussion, led by Director McGuire, the vote was recorded as follows:  Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Absent; Green – Yes; and Ulrich - Yes.  The motion carried.

 

                        RESOLUTION NO. 5683 approves the Engineer’s Certification and authorizes Management to negotiate and enter into a contract with PanAmerica Supply, Inc. at a cost not to exceed $913,978 to purchase a spare 28MVA 161-13.8 kV transformer.  Director McGuire stated this purchase is part of the District’s Aging Infrastructure Replacement Plan which was established in an effort to maintain system reliability by updating equipment. She commented that PanAmerica Supply, Inc. offered to amend an existing OPPD contract, which was authorized in January 2008 utilizing the sealed bidding process.  The amended contract would include an additional identical transformer at the same price and delivery schedule.  The equipment was originally scheduled to be acquired in 2009; however, Board Chairman Ulrich commented that a delay would likely result in higher costs and could potentially compromise system reliability. He asked Director McGuire how many similar units the District currently has in service.  Ms. McGuire replied there is a total of 20 units in service, with no spares, and this additional transformer would serve as spare equipment.  Following the discussion, the vote was recorded as follows:  Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Absent; Green – Yes; and Ulrich - Yes.  The motion carried.

 

                        RESOLUTION NO. 5684 approves the award of Request for Proposal No. 2723 – Groundline Inspection and Treatment of Wood Poles – to Pole Maintenance Company, LLC in the amount of $596,583 for the first contract year.  Director McGuire stated bids were submitted based on a base quantity of 3,100 poles, which included a mix of transmission and distribution poles in both the metropolitan and rural areas, and pricing was extended to an estimated 16,100 poles.  Vice President Widoe affirmed that bids on both the base quantity and an extended quantity were requested from bidders in order to provide some flexibility to adjust the quantity needed depending on budget restrictions for a particular year. Director McGuire stated it is anticipated approximately 340 poles will be reinforced during the first year of the contract.  There is a contract option to extend the contract for nine additional one-year periods based on the vendor’s performance.  Director Hall inquired whether the contract included pole replacement.  Vice President Widoe replied that any inspected pole deemed to be not repairable will be replaced using OPPD crews or other contractors at an additional cost.  He continued to explain the process used for reinforcement which is a system of metal bracing that is driven below ground and is banded to the upper portion of the pole at the ground line. He said this reinforcement method will extend the pole life by 20-30 years, nearly doubling the life of the pole and  the  goal is to perform distribution pole inspections every 12 years.  Board Chair Ulrich asked whether the transmission pole inspection schedules, particularly for the line running through farmers’ fields near Nebraska City, will accommodate the farmer’s schedules to avoid field damage.  Mr. Widoe replied this contract runs from April through November, and that OPPD crews will work with the landowners to avoid damage.  The vote was recorded as follows:  Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Absent; Green – Yes; and Ulrich - Yes.  The motion carried.

 

                        RESOLUTION NO. 5685 approves the award of Request for Proposal No. 2733 – Installation of Underground Distribution Facilities – to CRC Contractors, Inc. in the amount of $453,205.  Director McGuire stated this is a one-year contract for labor only, with four optional one-year renewal periods, and will be used on a demand basis only.  Following discussion, the vote was recorded as follows:  Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Absent; Green – Yes; and Ulrich - Yes.  The motion carried.

 

                        RESOLUTION NO. 5686 approves the award of Request for Proposal No. 2732 – Underground Cable Replacement – to Nielsen Construction in the amount of $1,122,750.    Director McGuire explained this is a one-year contract, with four optional one-year renewal periods to be awarded based on the contractor’s performance.  The work is part of the District’s aging infrastructure replacement projects and provides additional construction labor to support the District’s current resources.  She commented the work is very sensitive because it involves a high degree of customer relations interaction since crews must enter customers’ backyards in order to perform the cable replacement work.  Following discussion, the vote was recorded as follows:  Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Absent; Green – Yes; and Ulrich - Yes.  The motion carried.

 

                        RESOLUTION NO. 5687 approves the award of Request for Proposal No. 2684 – North Omaha Station Unit 1 Low Temperature Superheater – to Chicago Tube & Iron in the amount of $1,337,449.  Director McGuire stated the contract is for design and supply of materials and includes replacement tubes which are long-lead delivery items.  She said an installation contract will be bid separately and will be brought to the Board for consideration in early 2009.  Ms. McGuire called upon Vice President Widoe to clarify a point of interest regarding the large difference in the Engineer’s Estimate and the low bid.  Mr. Widoe explained it was decided to delete the replacement inlet headers from the contract scope, and that this component was included in the original Engineer’s Estimate which was considerably higher.   Thereafter, the vote was recorded as follows:  Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Absent; Green – Yes; and Ulrich - Yes.  The motion carried.

 

                        RESOLUTION NO. 5688 approves the compensation adjustment for Vice President Timothy J. Burke.  Following discussion led by Director Hall, the vote was recorded as follows:  Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Absent; Green – Yes; and Ulrich - Yes.  The motion carried.

 

                        Copies of the foregoing resolutions are filed in the District’s Corporate Records file.        

 

                        The next order of business was the opportunity for comment on other items of District business. 

 

                        At this time, the Chair recognized Mr. Edward Rollerson, who introduced himself to the Board as the pastor of the Fellowship Christian Center at 3211 Pinkney Street (933-9516).  He stated he has a concern with the elimination in 2003 of the District’s policy allowing for the refund of deposits to customers in good standing.  The previous policy allowed for the return of deposits to companies after four years of timely payments, and the new policy stipulates the deposit be retained by the District for the life of the business.  Mr. Rollerson stated this is unjust and that the policy needs to be reviewed.  Board Chair Ulrich replied that the Board is aware of his concern and a full review of the policy, including historical and current related policies, is being gathered by management.  He said the findings will be presented to the Board in the near future and will also be communicated to Mr. Rollerson and other concerned customers.  Director McGuire asked President Gates for a more specific timeframe and he replied the review would be done within the next 30 days.  Director McGuire inquired whether deposits earn interest on individual accounts.  Vice President Moriarty replied the deposits do earn interest and that interest is set by the Board of Directors each year.  He added the interest rate that the Board has set in previous years is 150 basis points or 1-1/2 percent greater than what is paid by the three largest banks in Omaha.  Director Cavanaugh inquired how much money is currently being held in this deposit account.  Mr. Moriarty said it holds $18 million currently, but this amount continually fluctuates.   Board Chair Ulrich thanked Mr. Rollerson for coming to the meeting to discuss his concern.

 

                        There being no further business, the meeting adjourned at 10:35 a.m.

 

A. J. Minks                                        M. C. Bodammer

Assistant Secretary                            Corporate Secretary

 

 

 

 

 

 

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bullet Preliminary 2014 Corporate Operating Plan
bullet Sustainablity Update March 20 2014
bullet Energy Assistance Program (EAP)/Common Fund

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