September 18, 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 September 18, 2008, at 10:00 a.m.
Present were Directors M. J. Cavanaugh, J. K. Green, G. C. Hall, A. L. McGuire, J. R. Thompson, F. J. Ulrich and D. D. Weber. Director N. P. Dodge Jr. was absent. 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, M. I. Doghman, J. J. Hanson and M. R. Jones. Others present were R. K. Michel, President of I.B.E.W. Local Union #763; and approximately 18 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 September 12, 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 reviewed the July 2008 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 – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Absent; 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.”
At this time, Chairman Ulrich noted that a change had been made to the tentative agenda which was previously published. Resolutions No. 5721 and 5722, both pertaining to the issuance and sale of electric system revenue bonds, were removed from the agenda following the September 16, 2008, Committee meetings due to elevated uncertainties on Wall Street over the course of the week. Thereafter, Chairman Ulrich called upon President Gates to address the rationale for this decision. Mr. Gates stated that in August the Board of Directors had authorized the District to sell and issue $105 million of the 2008 Series A Electric System Revenue Bonds. He remarked these bonds have already entered the investment market on Wall Street and many bond orders have been placed; however, poor financial conditions for bonds have eliminated the institutional investment sales market for the time being. Because of the current adverse market conditions, OPPD’s Chief Financial Officer and the District’s financial advisors have recommended that the bond issue be pulled off the bond market for a short period of time. Mr. Gates commented the District anticipates to re-enter the market within the next month and emphasized this action will not adversely affect the District’s AA+ bond rating. Management’s decision was made in the best interests of OPPD’s customer-owners and the District. President Gates closed by stating he anticipated the Board’s support on this bond issue will be requested in about one month.
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. 5723 approves the award of Request for Proposal No. 2845 – 161 kV Power Transformers – to Delta Star, Inc. in the amount of $4,988,922. Following discussion, the vote was recorded as follows: Green – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Absent; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5724 authorizes the District to sell 0.17 acre of property at Substation No. 1249 to Douglas County in the amount of $20,245. Director McGuire stated the property is located in the vicinity of 180th & Q Streets and affirmed that the temporary easement associated with the property sale would be for the construction period only. Director Green inquired whether the District will be paid separately for the easement or whether it is included in the total amount. It was confirmed that it is a separate transaction and Vice President Minks will provide the dollar figure to the Board. Thereafter, the vote was recorded as follows: Green – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Absent; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5725 approves a resolution of recognition to the employees of Omaha Public Power District for their collective storm restoration efforts. Mrs. Bodammer, Corporate Secretary, read the resolution in its entirety. Fourteen employees were in attendance representing various departments throughout the District that assisted in restoring electricity following the devastating June 27, 2008 storm. These employees were: Blaine Dinwiddie, Jeff Ballard, Danko Pike, Bill Bergeron, Mel Tyree, Kurt Teten, Mike Norris, Jean Sayles-Jacobson, Ben Koziol, Jim Ramirez, Dan Waggoner, Brant Dangel, Doug Madison and Jennifer Johnston. Chairman Ulrich complimented all employees for their professionalism and perseverance in restoring electric service in a safe and timely manner. President Gates also commented OPPD’s employees responded above and beyond the call of duty to the needs of the District’s customer-owners. He remarked that, although this resolution specifically notes the June 27 storm, employees responded in a similar manner following several preceding storms during a particularly high storm season this summer. Mr. Gates thanked the Board for their support in approving several improvements in operations that allowed the District’s employees to efficiently respond to restoration challenges. Thereafter, each Director commended the employees for being District ambassadors and for the good will they create within the community on a daily basis. The Board and Management gave a standing ovation to the employees in attendance and asked them each to introduce themselves and the departments they represent. Thereafter, the vote was recorded as follows: Green – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Absent; and Ulrich - Yes. The motion carried.
Copies of the foregoing resolutions are filed in the District’s Corporate Records file.
Next, Chairman Ulrich recognized Mr. Chris Oberle, Senior Director – Energy, at J. D. Power and Associates. Mr. Oberle stated his purpose for attending the Board meeting was to present OPPD with its eighth consecutive J. D. Power and Associates Award and provide the Board with research on the excellent service the District is providing to its residential customers (see PowerPoint presentation attached hereto). Mr. Oberle commented the Electric Utility Residential Customer Satisfaction Study has been conducted throughout the United States since 1999. OPPD has been included in the study for eight years and has won an award each of those eight years. He said the 2008 study was conducted between April and May 2008. Utility brands are reviewed by region and size and categorized into eight award sections based on geography and utility residential customer base size. Mr. Oberle reviewed the residential electric customer satisfaction model and explained the six weighted composites and ratings of the model including: power quality and reliability, price, billing and payment, corporate citizenship, communications, and customer service.
The District scored No. 1 in the “Midwest Midsize Segment” overall customer satisfaction index and every factor scored in the survey resulted in the highest rankings ever recorded for OPPD. Thereafter, Mr. Oberle compared OPPD’s scores within each benchmark set of survey composites. The lowest scores for OPPD were noted on IVR service transactions; however, scores had actually improved in nearly all other areas. He congratulated the Board of Directors and Management on maintaining the high level of customer service and presented the award to Chairman Ulrich. Thereafter, photographs were taken of Mr. Oberle, Mr. Ulrich and Mr. Gates.
There being no further business, the meeting adjourned at 10:35 a.m.
(Chairman Ulrich requested that employees remain for a photoghaph session with Board members and the framed employee recognition resolution.)
A. J. Minks M. C. Bodammer
Assistant Secretary Corporate Secretary