July 9, 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 July 9, 2009, at 7:00 p.m.
Present were Directors N. P. Dodge Jr., J. K. Green, G. C. Hall, A. L. McGuire, J. R. Thompson, D. D. Weber and F. J. Ulrich. Director Cavanaugh was absent. Also present were W. G. Gates, President; M. C. Bodammer, Corporate Secretary; 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, J. J. Hanson, M. W. Nichols and K. A. Roth. Others present included eight other members of Mr. Roth’s Nebraska City Station Unit 2 project team; three representatives from HDR; J. Sefried and Darrell Ely representing the Richardson County Board of Supervisors; four representatives from JW Prairie Wind Power, LLC (juwi); Lynn Moorer (attorney from Lincoln); D. F. Begley from IBEW Local Union #1483; and approximately four additional customer-owners and employees of the District including Jan Roth (wife of Ken Roth) and Diane Ulrich (wife of Chairman Ulrich).
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 July 2, 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 May 2009 Comprehensive Financial and Operating Report and that the minutes and the excused absence of Director Cavanaugh for the last meeting be approved. The vote was recorded as follows: Thompson – Yes; Weber – Yes; Cavanaugh – Absent; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – 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. 5787 approves the Engineer’s Certification and authorizes Management to procure one refurbishment kit from Flowserve Corporation to refurbish the reactor coolant pump mechanical seals at Fort Calhoun Station at a cost of $196,672. Director Green led the discussion and indicated the Board of Directors authorized similar action the previous month for the same exact equipment at the same cost; however, it was discovered that one additional refurbishment kit is needed to maintain an adequate spare parts inventory. Following discussion, the vote was recorded as follows: Thompson – Yes; Weber – Yes; Cavanaugh – Absent; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5788 approves the award of Request for Proposal No. 3071 – 345-161 kV Autotransformer – to HICO America in the amount of $3,133,345. Following discussion, led by Director Hall, the vote was recorded as follows: Thompson – Yes; Weber – Yes; Cavanaugh – Absent; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5789 approves the Engineer’s Certification and authorizes Management to negotiate and enter into a contract with Siemens Power Generation to inspect, repair and procure replacement parts for the Sarpy County Station Unit 3 combustion turbine in an amount not to exceed $6,500,000. Following the discussion, the vote was recorded as follows: Thompson – Yes; Weber – Yes; Cavanaugh – Absent; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5790 authorizes Management to execute a long-term Power Purchase Agreement with Flat Water Wind Farm, LLC, for 60 megawatts of wind-generated electricity. Director Hall led the discussion and commented about the District’s intention to increase its sustainable energy efforts. This agreement is an opportunity that will assist in reaching this goal. He said Flat Water Wind Farm is a Class 4 wind area located within the District’s service territory. Thereafter, Director Hall called upon Marc Nichols, Division Manager – Sustainable Energy and Environmental Stewardship, to present an overview of the various steps leading up to the Flat Water Wind Farm project. He stated this project is one way for OPPD to cost effectively integrate renewable energy into the District’s generation mix. Mr. Nichols remarked this is a good time financially to enter into a power purchase agreement.
Following the presentation, there was considerable discussion among the Board regarding responsibilities of the District, the developer and the landowners in connection with both future transmission lines that will be built and wind turbines that will be located on landowners’ properties. Thereafter, Ms. Lynn Moorer (404 South 27th Street, Lincoln, Nebraska), an attorney representing a number of residents and landowners in southeastern Nebraska who are customers of OPPD, approached the microphone. Ms. Moorer spoke in favor of the agreement with the Flat Water Wind Farm. She encouraged OPPD to ramp up its use of renewable energy quickly and in a major way. Ms. Moorer stated her opinion that a decrease in dependence on fossil and nuclear fuels is needed and that climate change should be addressed in a single-minded, focused way now and in the long term. She also commented that wind and other renewable resources that are available in Nebraska should be developed wherever possible. Thereafter, Jim Sefried (Chairman of the Richardson County Board of Supervisors) approached the microphone and commended the Board on their foresight and courage to move ahead with the project in spite of the current economic recession. He commented that Richardson County is very appreciative and excited about the venture. Following the discussion, the vote was recorded as follows: Thompson – Yes; Weber – Yes; Cavanaugh – Absent; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5791 is a resolution of appreciation in recognition of the Nebraska City Station Unit 2 project team. The Corporate Secretary read the resolution in its entirety acknowledging the men and women involved in the construction of Nebraska City Station Unit 2. Director Hall led the discussion commending Vice President Widoe and those in attendance representing the project team. Mr. Hall commented that one factor that makes OPPD successful in the industry is that it possesses a diverse mix of generation resources including fossil, nuclear and gas generating plants. That diversity gives OPPD an advantage over many utilities, especially in the public power field. He commented the Nebraska City Station Unit 2 is an important step moving into the future because it was designed and constructed to include state-of-the-art technology that promises to provide clean, efficient electricity for its customer-owners. He again commended the project team who made it possible to complete the project on schedule and on budget. On behalf of the Board, Director Hall asked the team members present to inform their coworkers of the Board’s pride in their successful efforts. Thereafter, he called upon President Gates to introduce the project team members present:
Ken Roth – Division Manager, Projects and Construction
Bud Eidem – Manager, Power Projects
TimYager, Manager Operations Engineering
Igor Cherko – Manager, Environmental and Regulatory Affairs
John Wichman, Senior Production Operations Engineer
Eric Bender, Production Operations Engineer
Dave Wetrosky, Supervisor of Operations
David Aderemi, Production Operations Engineer
Patty Nansel, HDR Project Controls Administrator
Matt Fergusen, HDR Vice President
Karl Fryklind, HDR Vice President
Mr. Gates also recognized the following individuals who were unable to attend the meeting:
Dave Wesely, OPPD Site Construction Manager
Sue Badberg, OPPD Administrative Clerk
Bob Becker, HDR Project Manager
Thereafter, Mr. Gates deferred the discussion to Chairman Ulrich who also thanked the employees and project team and reaffirmed the importance of the District’s fossil fuel plants as an extremely reliable source of electricity for OPPD’s ratepayers. Following the discussion, the vote was recorded as follows: Thompson – Yes; Weber – Yes; Cavanaugh – Absent; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – Yes; and Ulrich - Yes. The motion carried.
Following the vote, Director Hall asked the project team members to come forward for presentation of the framed resolution and thanked them for coming to the meeting..
Copies of the foregoing resolutions are filed in the District’s Corporate Records file.
There being no further business, the meeting adjourned at 7:48 p.m.
A. J. Minks M. C. Bodammer
Assistant Secretary Corporate Secretary