April 17, 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 April 17, 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, 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; and approximately seven 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 April 11, 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 February 2008 Comprehensive Financial and Operating Report and that the minutes and the excused absences of Director Dodge and Director Weber for the last meeting be approved. The vote was recorded as follows: McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – 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. 5689 approves the award of a contract to Ames Construction for the construction of the Nebraska City Staging and Maintenance Tracks in an amount not to exceed $5,602,891. Director Hall referred the questions posed by Board Chair Ulrich concerning the time projection for the completion of this construction to Vice President Widoe, who responded the project will commence in May 2008 and will be completed in October 2008. Following the discussion, the vote was recorded as follows: McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5690 authorizes and directs the President and Executive Officer of the District to inform the Nuclear Regulatory Commission (NRC) of the list of management personnel with NRC security clearance. Following discussion, the vote was recorded as follows: McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5691 authorizes the rejection of the single bid received on Request for Proposal No. 2781 – Fort Calhoun Station 480 Volt Load Center Main and Bus Tie Breakers – and authorizes management to negotiate and enter into an acceptable contract. Director Green led the discussion indicating that rejection of the bid resulted from lack of sufficient technical information from the single bidder to ensure compliance with required technical specifications. He affirmed this action allows the District to negotiate with other vendors. Director Weber questioned the legality of renegotiating with additional vendors without discussing first with the original bidder. Steve Bruckner of General Counsel added that, from a legal standpoint, there is very limited, if any, ability for the District to engage in follow-up dialog with vendors during a sealed bid process, such as this one. He added that the Nebraska State Statutes allow the Board the option to reject any bid that is not responsive, and to then engage in dialog that would normally take place during negotiations to achieve the desired results and still comply with statutory provisions. Following the discussion, the vote was recorded as follows: McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5692 approves the award of Request for Proposal No. 2749 – Relay Panels – to Electrical Power Products, Inc. in the amount of $296,133. Director McGuire led the discussion indicating the materials will be used for various substation projects including the new substation at Cargill’s campus, as well as some aging infrastructure replacement projects at substations near 108th & Blondo Streets. Following discussion, led by Director McGuire, the vote was recorded as follows: McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5693 approves the award of Request for Proposal No. 2743 – 13.8 kV Metalclad Switchgear – to Pedersen Power Products Division: E. A. Pedersen Company in the amount of $333,333. Director McGuire noted this work is part of ongoing efforts at the Cargill campus and called upon Vice President Burke to summarize the current work plan at Cargill. Mr. Burke said his staff, in conjunction with Vice President Widoe’s construction group, expect the Cargill campus project to be operational by the end of 2009. He said the project includes the installation of several large electrical boilers which will create the steam necessary for operations. He stated the District has an agreement with Cargill which protects OPPD in a couple of areas: (1) in the event the overall project is cancelled by Cargill, Cargill will be required to repay OPPD for all costs associated with the project, including all capital and O&M costs; the total project costs are estimated at approximately $20 million; and (2) on the energy side, when the project is completed and the Cargill units become operational, Cargill must generate at least $10 million of incremental revenue for OPPD for a minimum of five years ($50 million). Mr. Burke said this is a relatively conservative estimate and remarked this is a strong investment for both OPPD and Cargill. Thereafter, he replied to Director Thompson’s question concerning the additional load growth expected from the Cargill project, stating that 150 MW additional load (which includes 80 MW on-peak load) is expected, representing a significant expansion. Following the discussion, the vote was recorded as follows: McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – 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 10:20 a.m.
A. J. Minks M. C. Bodammer
Assistant Secretary Corporate Secretary