April 19, 2009
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 16, 2009, at 10:00 a.m.
Present were Directors M. J. Cavanaugh, N. P. Dodge Jr., J. K. Green, G. C. Hall, J. R. Thompson, D. D. Weber and F. J. Ulrich. Director McGuire 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, E. E. Easterlin, A. J. Minks, D. F. Widoe, G. R. Williams and M. R. Jones. Others present included six representatives from Boone County, including the County Commissioner; Robert Simon from Siemens Energy Inc.; Mark Welsch; and approximately seven additional 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 10, 2009; 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 February 2009 Comprehensive Financial and Operating Report and that the minutes and the excused absence of Director Weber for the last meeting be approved. The vote was recorded as follows: Green – Yes; Hall – Yes; McGuire – Absent; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – 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. 5769 approves the Engineer’s Certification and authorizes management to negotiate and enter into contracts to repair the Fort Calhoun Station emergency diesel generator fuel oil tank. Following discussion, led by Director Green, the vote was recorded as follows: Green – Yes; Hall – Yes; McGuire – Absent; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5770 approves the award of Request for Proposal No. 3004 – Knee Brace Replacements – to Haverfield International Inc. in the amount of $663,137.35. Board Chair Ulrich commented that since the work will be performed using helicopters, there will likely be no incident of crop damage. Following the discussion, led by Director Hall, the vote was recorded as follows: Green – Yes; Hall – Yes; McGuire – Absent; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5771 approves the Engineer’s Certification and authorizes management to negotiate a contract to furnish and install a low nitrous oxide (NOX) combustion system on the boiler of Nebraska City Station Unit 1. Director Hall led the discussion indicating installation of this system addresses the Environmental Protection Agency Regional Haze Rules, a federal mandate. He commented the District has already received approval from the Nebraska Department of Environmental Quality for the necessary permit and the work is scheduled during the 2010 maintenance outage. Board Chair Ulrich inquired about the time frame of the 2010 outage. Vice President Widoe stated the outage includes a major overhaul of Nebraska City Station Unit 1 and is budgeted at approximately six weeks during the fall of 2010. Thereafter, the vote was recorded as follows: Green – Yes; Hall – Yes; McGuire – Absent; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5772 approves the award of Request for Proposal No. 3014 – Relay Panels – to Schweitzer Engineering Laboratories Inc. in the amount of $232,656. Following the discussion, led by Director Hall, the vote was recorded as follows: Green – Yes; Hall – Yes; McGuire – Absent; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5773 authorizes the District to enter into contracts with Cameco Inc., American Fuel Resources, Globe Nuclear Services and Supply, and Lido Park LLC for a combined total contract amount of $14,889,700 to provide a portion of the strategic uranium inventory and 2010 requirements for Fort Calhoun Station. Director Hall led the discussion stating the importance of maintaining a reserve uranium inventory at the nuclear station. He commented this is a volatile market and that this is a good time to enter into the market. Director Hall added because of the favorable pricing structure currently available, the District will seek the remaining 2010 requirements by requesting additional proposals to assure delivery in 2010. Director Green inquired where the uranium is stored until it is needed. Vice President Widoe replied the material will be stored as uranium hexafluoride at the conversion facility and will be sent in for fuel fabrication. The material eventually arrives at Fort Calhoun Station as fabricated fuel. Thereafter, the vote was recorded as follows: Green – Yes; Hall – Yes; McGuire – Absent; 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.
At this time, Board Chair Ulrich recognized Mr. Ross Knott, a banker representing the town of Petersburg, Nebraska. Mr. Knott stated he is part of a community group from Petersburg in support of the District’s request for proposal for a wind farm development in Boone County. He proceeded to introduce the other five people as follows: Monty Reicks, a local lumberyard owner and past president of the community club; Larry Temme, a grocery store owner, landowner and president of the Boone County District 1 school; Doug Koch representing the City of Petersburg and president of the local economic development group; and Diane and Henry (Hank) Thieman, Boone County Commissioner, who has been on the county board for about 30 years. Mr. Knott expressed the County’s desire for wind development in the Petersburg area and offered assistance in facilitating that effort. He mentioned they are looking at large pieces of real estate along rail right-of-ways to set up the infrastructure in anticipation of new ancillary businesses that might support the wind development industry. He commented on potential long-term benefits such as new employment opportunities, permanent residents and the resulting economic impact on their community in the form of increased taxes for schools and businesses. Mr. Knott closed by thanking the Board and offering their support. Board Chair Ulrich thanked Mr. Knott and the group for traveling to Omaha to attend the board meeting and said the District is currently encountering complex transmission and distribution issues and evaluation of proposals is taking longer than originally anticipated. Mr. Ulrich suggested that Vice President Minks make herself available to discuss the process. He asked President Gates to add to his comments. Mr. Gates indicated that Boone County is currently on the short list and management would like to make a decision as soon as possible. He restated the District’s commitment that 10 percent of OPPD’s energy resources be in the form of renewable energy and also thanked the group for coming. Director Hall inquired whether Boone County has been actively involved with the State Legislature regarding the issues before them concerning the wind industry within the state. Mr. Knott said they have conducted meetings at the Albion fairgrounds and other meetings with the Speaker of the House and local legislators to discuss CBED legislation and numerous other topics.
They attended NPPD’s board meeting in November 2008 to voice their support of wind development. Director Hall suggested the Boone County community become involved in the State’s interim wind energy study which will ultimately shape the policy. Thereafter, Director Thompson remarked that Boone County must be prepared for opposition from people disliking transmission lines on their properties.
There being no further business, the meeting adjourned at 10:28 a.m.
A. J. Minks M. C. Bodammer
Assistant Secretary Corporate Secretary