July 15, 2010
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 15, 2010, 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 and S. M. Bruckner and T. F. Meyerson, General Counsel for the District. Mr. Green, Board Chair, presided, and Ms. Emerson, Corporate Secretary, recorded the minutes. Other members of Management present were D. J. Bannister, T. J. Burke, M. I. Doghman, E. E. Easterlin, J. T. Hansen, A. J. Minks, J. J. Hanson, M. R. Jones, and D. L. Stattler Others present included L. Nano, B. Paap, customers Lester Lantis, Ted Strasser, and M. Welsch, and other union personnel.
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 9, 2010; 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 2010 Comprehensive Financial and Operating Report and that the minutes for the last meeting be approved. The vote was recorded as follows: Dodge – Yes; Hall – Absent; McGuire – Yes; Thompson – Yes; Ulrich – Yes; Weber – Yes, Cavanaugh – Yes; and Green – 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.”
(Note: at 10:06 am Director Hall joined the meeting)
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. 5826 approves the Engineer’s Certification and authorizes Management to negotiate and award a contract for valve maintenance services during the 2011 and 2012 Fort Calhoun Station refueling outages. Director Dodge led the discussion stating the resolution authorizes the District to contract with Crane Nuclear, Inc. to repair, replace, and test various valve and valve operators during the 2011 and 2012 Fort Calhoun outages. Mr. Dodge indicated the work is technically complex and a limited number of contractors are capable of performing the work. Mr. Dodge commented that in 2009 the Utility Service Alliance (USA) of which OPPD is a member, entered into a contract with Crane Nuclear, Inc., to provide the services at participating utilities. Because of the complex nature of the work, the need to perform this work during the upcoming outages, and the ability to discuss the needs of the Fort Calhoun Station with the vendor to achieve the most reasonable cost, the Nuclear Oversight Committee recommends passage of this resolution. Chairman Green commented that Crane Nuclear, Inc. did not perform satisfactory work for OPPD during the 2009 Fort Calhoun outage and in fact cost OPPD additional money and delayed the outage, and asked what guarantee OPPD has that the same issues do not occur. Vice President Bannister indicated that he has met with the president of Crane Nuclear, Inc., and they have done their own root cause analysis as has OPPD. Crane Nuclear, Inc., has taken action in the areas of oversight supervision, the level of work that is performed, the training that is given, and the work documents that OPPD supplies. He also indicated the planning process will begin earlier giving Crane Nuclear more lead time to work with OPPD staff to ensure a quality product. Mr. Bannister indicates they are committed to provide the level of work that OPPD requires. Mr. Bannister indicated Crane Nuclear will also use their own highly-trained technicians to work on these types of valves as well as hire local individuals to perform some of the non-technical work. Director Hall said, in summary the issues identified from the root cause analysis were supervisor problems and Mr. Bannister agreed along with ensuring Crane Nuclear employees understand OPPD processes. Director McGuire inquired that the contract is for 2011 and 2012 and what recourse does OPPD have if Crane does not perform satisfactorily during the 2011 outage. Mr. Bannister indicated there is an out clause that can be acted upon if work is not completed satisfactorily during the 2011 outage. Director Ulrich asked if this work is associated with the power uprate project and Mr. Bannister indicated this work is not associated with the power uprate project and is considered normal maintenance work. Director Thompson asked if there are implications for Crane Nuclear if they do not meet the performance standards set by OPPD.
Mr. Bannister indicated there are clauses included in the contract if the performance standards are not met. Following the discussion, the vote was recorded as follows: Dodge – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Ulrich – Yes; Weber – Yes; Cavanaugh – Yes; and Green – Yes. The motion carried.
RESOLUTION NO. 5827 authorization to award a contract to purchase eight 161 kV power circuit breakers. Director Cavanaugh led the discussion by stating this contract is to purchase eight power circuit breakers for work associated with increased customer demand, the Fort Calhoun uprate, and replacement of aging equipment. He also indicated that six proposals were received and four are technically and legally responsive. Mr. Cavanaugh is recommending award of the contract to the lowest bidder which is Siemens Energy, Inc. in the amount of $631,480. Chairman Green asked if this work is to accommodate additional customers coming on line, and Vice President Doghman indicated this work is to replace breakers in several projects as required in the Transmission and Distribution Improvement Program as well as the Fort Calhoun line.
At this time, Chairman Green asked Vice President Doghman to update the Board on the restoration progress caused by heavy thunderstorms that hit the service territory Wednesday evening, July 14. Mr. Doghman indicated high winds and lighting knocked out power to approximately 32,000 customers. OPPD had 38 line crews working the metro area and 16 line crews working in the rural areas. OPPD also had 11 down wire teams working. At this time, OPPD was getting 10 additional crews from NPPD and 3 additional crews from LES that will support OPPD in the restoration process. The damage assessment teams should complete their assessment by noon today with an estimated time of restoration available Thursday afternoon. Mr. Doghman also indicated there were three 69 kV transmission lines damaged with the main one being in Valley, NE. Also there are 14 69kV structures down. At this time, there are still approximately 4500 customers without power and there have been no safety incidents reported.
Following the discussion on the 161 kV power circuit breakers, the vote was recorded as follows: Dodge – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Ulrich – Yes; Weber – Yes; Cavanaugh – Yes; and Green – Yes. The motion carried
RESOLUTION NO. 5828 authorization to sell the North Bend office as surplus property. Director Cavanaugh led the discussion by stating the North Bend office has been declared surplus property. He also indicated based on OPPD policy, the property has been appraised and if OPPD receives an offer above 90% of the appraised value, OPPD will proceed with the sale. If no offers meet that standard, OPPD will return to the Board with alternate offer(s) or sell at auction. Following the discussion, the vote was recorded as follows: Dodge – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Ulrich – Yes; Weber – Yes; Cavanaugh – Yes; and Green – Yes. The motion carried.
RESOLUTION NO. 5829 approval of the 2010 labor contract negotiations with the International Brotherhood of Electrical Workers (I.B.E.W.) Local Union Nos. 763 and 1483, and the International Association of Machinists and Aerospace Workers (I.A.M. and A.W.) Local Lodge No. 31. Director Ulrich indicated for the past several months, management has been involved in negotiations with the three unions and have negotiated a two-year contract extension with a 2.5% general wage increase retroactive to June 1, 2010 and a 2.75% general wage increase effective June 1, 2011. Mr. Ulrich commented that many items both sides brought to the table will require an education process and longer-term negotiations than what could be reached during this settlement. Management thought this in the best interest to make the agreement at this time and continue with the educational process for the longer term items such as benefits, etc. Mr. Ulrich indicated that with current Commission of Industrial Relations (CIR), education and long term negotiations are in the best interest of all concerned. Mr. Ulrich also congratulated Mr. Burke and his negotiating team on this successful settlement. Chairman Green also added his congratulations to the three local union negotiation teams for reaching an appropriate agreement on behalf of their employees over the next two years. Following the discussion, the vote was recorded as follows: Dodge – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Ulrich – Yes; Weber – Yes; Cavanaugh – Yes; and Green – Yes. The motion carried.
Copies of the foregoing resolutions are filed in the District’s Corporate Records file.
The next item of business was the opportunity for those in attendance to address the Board on any items of District concern. Mr. Ted Strasser of Home Trailer Park, 6902 N. 16 Street, Omaha, NE, approached the microphone to discuss his concern over the way his OPPD bill prints. President Gates indicated to Mr. Strasser that OPPD would take this as an action item and continue to engage with Mr. Strasser.
There being no further business, the meeting adjourned at 10:25 a.m.
A. J. Minks D. S. Emerson
Assistant Secretary Corporate Secretary