May 14, 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 May 14, 2009, 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, and F. J. Ulrich. Director Weber 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, M. I. Doghman, G. R. Williams and M. R. Jones. Others present included Mr. Chris Oberle, J. D. Power and Associates Senior Director; C. E. Perkins from I.B.E.W. Local Union #763; Mark Welsch; seven representatives from the District’s Customer Care Service department; and approximately five additional customer-owners and employees of the District. (*Note: Director Green arrived at 10:07 a.m. after the discussion and consideration of Resolution No. 5774.)
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 May 8, 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 March 2009 Comprehensive Financial and Operating Report and that the minutes and the excused absence of Director McGuire for the last meeting be approved. The vote was recorded as follows: Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Yes; Green – 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.”
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. 5774 approves the Engineer’s Certification and authorizes management to negotiate and enter into a contract for valve services required for the Fort Calhoun Station 2009 refueling outage at an estimated cost of $2,500,000. In the absence of Director Green, Director Dodge called upon Vice President Bannister to summarize the content of this resolution. Mr. Bannister stated Crane Nuclear, Inc. was selected and will supplement the Fort Calhoun Station crews to reduce the time necessary to perform the large volume of work. He said the estimated cost for these services is a reduced price that has been made available to the District because of Fort Calhoun Station’s affiliation with the Utilities Services Alliance, Inc. (USA); however, management is taking the process one step further and will attempt to further negotiate an even lower price. Following the discussion, the vote was recorded as follows: Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Yes; Green – Absent; and Ulrich - Yes. The motion carried. (Note: Director Green arrived just after the vote.)
RESOLUTION NO. 5775 approves the Engineer’s Certification and authorizes management to purchase four new reactor coolant pump motors for the Fort Calhoun Station at an estimated cost of $4,000,000. Director Green led the discussion stating one motor will be installed during each of the next three refueling outages and the removed equipment will be maintained in storage for emergency purposes. Thereafter, the vote was recorded as follows: Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Yes; Green – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5776 authorizes award of a contract to General Electric International for equipment and installation services to uprate the main generator to support the Fort Calhoun Station Extended Power Uprate project at a cost of $13,275,950. This action was included in Resolution No. 5717 which was authorized on August 14, 2008. Director Green indicated this particular action is being presented for approval at this time to inform the Board on the current project status. It was noted by Director McGuire that General Electric International’s time table for project completion is in line with the desired duration of the refueling outage. Board Chair Ulrich also noted that several other proposals were evaluated in the process. Thereafter, the vote was recorded as follows: Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Yes; Green – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5777 authorizes approval by the Board of Directors to enter into a property exchange agreement allowing the District to transfer ownership of a 0.22 acre parcel of Arbor Line railroad right of way for a 0.22 acre parcel adjacent to the railroad staging tracks. Director Hall stated this action is necessary to provide adequate right of way to accommodate moving the county road adjacent to the staging tracks that were recently constructed for the longer trains delivering coal to the Nebraska City Station. He commented no additional District funds will be spent because equal amounts of property are being exchanged in the agreement. Following discussion, the vote was recorded as follows: Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Yes; Green – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5778 approves the Engineer’s Certification and authorizes management to purchase a used 69 kV replacement transformer for Substation 967, near Cook, Nebraska, from Sunbelt Tranformer at a cost of $194,450. Following discussion, led by Director Hall, the vote was recorded as follows: Hall – Yes; McGuire – Yes; Thompson – Yes; Weber – Absent; Cavanaugh – Yes; Dodge – Yes; 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 an opportunity for comment on other items of District business. There were no members of the general public wishing to speak. Board Chair Ulrich turned the meeting over to Chris Oberle, Senior Director - Energy, for J. D. Power and Associates. Usual visual aids, Mr. Oberle reviewed results from the 2009 Electric Utility Business Customer Satisfaction Study which ranked OPPD in first place among the 90 largest electric utilities (those serving more than 33,000 business accounts each). This was the first time OPPD was included in the study and Mr. Oberle commented that OPPD’s reputation for customer service satisfaction is well known throughout the industry. He said, unlike the residential study in which OPPD has also performed well, the component weights of the business study are fairly equal because business customers expect their utilities to perform well in every single area. The components included in the study included: customer service, power quality and reliability, billing and payment, corporate citizenship, price, and communications. Mr. Oberle reviewed the methodology used in the study, the factors that influence business customer satisfaction, and discussed the scores in each category. Following his presentation, he presented the award to Board Chair Ulrich and President Gates. Director Ulrich commented, on behalf of the Board, the award is totally due to the efforts of OPPD’s employees and he recognized and congratulated them for their dedication. Thereafter, he asked Vice President Burke to introduce the seven members from the Customer Care Service department who were in attendance including Bev Baggett and Lorraine Quinn, plus five new employees from their department.
A copy of the J. D. Power and Associates presentation is appended to these proceedings.
There being no further business, the meeting adjourned at 10:40 a.m.
A. J. Minks M. C. Bodammer
Assistant Secretary Corporate Secretary