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Home > About Us > Company > Board of Directors

November 2010 Board Meeting Minutes

 

 

Thursday, November 18, 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 November 18, 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, D. C. Mueller, G. R Williams, P. F. Hanger, T. G. Tamke, J. J. Hanson, and M. R. Jones.  Others present included C.Perkins of IBEW Local Union No. 763, Ken Dowdy of IBEW Local Union No. 1483, Steve Boyer of Third Planet Wind Power, Chris Oberle of JD Power & Associates, and Mark Welsch.

 

                        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 November 12, 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 September 2010 Comprehensive Financial and Operating Report and that the minutes for the last meeting be approved.  The vote was recorded as follows:  Thompson – Yes; Ulrich – Yes; Weber – Yes, Cavanaugh – Yes; Dodge – Yes; Hall – Yes; McGuire – 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.”

 

                      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. 5840 authorizes management to award a contract for modification installation services for the 2012 refueling outage at the Fort Calhoun Station.  Director Dodge led the discussion that Resolution No. 5824 authorized management to negotiate with contractors for specialty services modifications critical to the power uprate project.  Modifications include replacement of three existing condensate pumps and motors, replacement of three existing main feedwater pumps and motors, replacement of two existing low pressure feedwater heaters and associated feedwater heater level control drain valves, replacement of two existing main steam safety valves with atmospheric dump valves, replacement of the suction cans on each of the three existing heater drain pumps, and modification of several pipe supports on the main steam and main feedwater systems.  Five contractors submitted bids and Babcock & Wilcox Nuclear Energy was the lowest and best bid in the amount of $24,022,878.   It is recommended that the contract be awarded to Babcock & Wilcox Nuclear Energy.  Chairman Green asked if the valve work would be done by Babcock & Wilcox Nuclear Energy and Vice President Bannister indicated the valve work would be done by Crane Nuclear.  Following the discussion, the vote was recorded as follows:  Thompson – Yes; Ulrich – Yes; Weber – Yes; Cavanaugh – Yes, Dodge – Yes; Hall – Yes; McGuire – Yes; and Green – Yes.  The motion carried.            

 

                        RESOLUTION NO. 5841 authorizes management to execute long-term agreement(s) with the Nebraska Public Power District for a total of 18 megawatts of wind-generated electricity. Director McGuire led the discussion indicating OPPD currently has about 142 megawatts of renewable generating capacity including wind, landfill gas, and solar arrays, and OPPD’s goal is to have 460 megawatts in wind power by the year 2020.  OPPD has the opportunity to participate with NPPD to purchase 18 megawatts.  Ms. McGuire added this site has a 40% capacity factor and this purchase would bring the District’s total renewable capacity to 160 megawatts.  Ms McGuire indicated this purchase is ahead of schedule; however the opportunity and price are very good and we believe now is the time to make the purchase.  Director Thompson inquired based on reliability and low cost, excluding the government demands, how is this beneficial for the District.  Vice President Minks said the site has a 40% capacity factor which means it should be delivering energy 40% of the time and the price is approximately 30% lower than the price the District is paying at Flatwater and that relative to the capabilities currently on the market, this is a very good deal for OPPD.  Following the discussion, the vote was recorded as follows:  Thompson – Yes; Ulrich – Yes; Weber – Yes; Cavanaugh – Yes, Dodge – Yes; Hall – Yes; McGuire – Yes; and Green – Yes.  The motion carried.            

 

                        RESOLUTION NO. 5842 authorization to award a contract for uranium supply for the Fort Calhoun Station.  Director Cavanaugh led the discussion stating the contract is to purchase uranium beginning in 2013 and represents approximately 25% of the District’s requirements through 2017.  Ten proposals from seven difference companies were received, and after analysis, the recommendation is to award the contract to Cameco, Inc., in the amount of $34,062,000. Chairman Green inquired as to the difference in the total evaluated present value of $24,410,000 and the total estimated cash flow of $34,062,000.  Vice President Easterlin indicated the Net Present Value is the difference between the value of a dollar today and the value of a dollar in the future.  Consequently, the $34,062,000 includes the effect of inflation over time and up to 7% discount factor.  Director Hall inquired that this purchase represents 25% of the District’s requirements and asked what the plan is to meet the additional requirements during the years of 2014 through 2017.  Mr. Hansen indicated the District would go back to the market and purchase the additional requirements.  Following the discussion, the vote was recorded as follows:   Thompson – Yes; Ulrich – Yes; Weber – Yes; Cavanaugh – Yes, Dodge – Yes; Hall – Yes; McGuire – Yes; and Green – Yes.  The motion carried

 

                        RESOLUTION NO. 5843 authorization to award a contract for janitorial services.  Director Cavanaugh led the discussion stating the currently the district has 17 separate janitorial contracts with six difference vendors at 22 OPPD locations.  The current process is labor intensive and can result in some inconsistent levels of service and security compliance.  Recommendation is to have one vendor provide janitorial services and the recommendation is to award the contract to ABM Janitorial Services.  They currently provide services at Fort Calhoun, Nebraska City, Cass County, Sarpy County and Tecumseh.  This new contract will save the District approximately $225,000 and will begin on January 1, 2011 with full implementation by June, 2011.  The contract amount for approval is $1,224,624 and includes renewals for five years.  Director McGuire inquired if this was an example of the LEAN process and commented it is an excellent example.    Ms. Minks commented this was not a LEAN process and was developed by Leisha Nelson, manager – Facilities Services and Real Estate. Director Weber asked why the consolidation of the 17 contracts was not done earlier and Ms. Minks said, at one time, it had been done, and after years of modifying the process, we are back to this option.  Chairman Green added that, in the past, as facilities began voicing concerns over the quality of the services, the contracts were pulled from those vendors which ultimately caused the District to contract with multiple vendors . Following the discussion, the vote was recorded as follows:  Thompson – Yes; Ulrich – Yes; Weber – Yes; Cavanaugh – Yes, Dodge – Yes; Hall – Yes; McGuire – Yes; and Green – Yes.  The motion carried. 

 

                       RESOLUTION NO. 5844 approval of the 2011 Board of Directors meeting schedule. Chairman Green reviewed the list of 2011 Board meetings and noted the exceptions in the months of May and August.  The May meeting was moved to support the Nuclear Energy Assembly and August will be an evening meeting at Energy Plaza.   All other meetings will be the first Thursday following the tenth of the month at 10:00 am at Energy Plaza.  Following the discussion, the vote was recorded as follows:  Yes; Thompson – Yes; Ulrich – Yes; Weber – Yes; Cavanaugh – Yes, Dodge – Yes; Hall – Yes; a McGuire – Yes; and Green – Yes.  The motion carried. 

 

                          Copies of the foregoing resolutions are filed in the District’s Corporate Records file.    

 

                          Thereafter, Board Chair Green invited Chris Oberle, Senior Director – Energy Practice, from J. D. Power and Associates to give a presentation on the results of the “2010 Electric Utility Residential Customer Satisfaction Study.”  Mr. Oberle stated his purpose for attending the Board meeting was to congratulate OPPD on its tenth consecutive J. D. Power and Associates Award for residential customer satisfaction in its category. 

 

                        Mr. Oberle said the rankings are based on an independent survey of customers.  He reviewed the residential electric customer satisfaction model and explained the six weighted components and detailed ratings of the model including:  power quality and reliability (27%), price (22%), billing and payment (19%), corporate citizenship (13%), communications (13%) and customer service (6%).  OPPD scored No. 1 in the “Midwest Midsize Segment” overall customer satisfaction index which is a very competitive category.  This segment includes utilities serving between 125,000 and 499,999 residential customers.  He also commented that OPPD’s customer service representatives (CSR’s) are among the highest rated in the country. Mr. Oberle congratulated the Board of Directors and Management on maintaining the consistent high level of customer service and presented the award to Chairman Green.  Director Weber asked if J.D. Power analyses the statistical significance of the data, and Mr. Oberle indicated that information is done and noted where it was located in the presentation.  Thereafter, photographs were taken and Chairman Green concluded with comments of appreciation on the strengths and efforts of the District’s Call Center employees and Management.  Vice President Burke commented on the continued strength of Senior Management’s commitment to customer service.  Director Hall inquired as to what is done internally with the information provided by J.D. Power and Associates.  Mr. Burke said Chris routinely presents to the critical division mangers and managers and that a J.D. Power Action team has been formed to create initiatives to align our key areas to support these initiatives. 

 

                        There being no further business, the meeting adjourned at 10:55 a.m.

 

 

 

 

A. J. Minks                                                                  D. S. Emerson             

Assistant Secretary                                                       Corporate Secretary

 

 

Board of Directors

bullet Board Mtg Schedule
bullet Board Mtg Minutes
bullet Committee Mtg Agendas
bullet Board Mtg Agenda
bullet Rules for Public Participation
bullet Approved Board of Directors Redistricting
bullet Preliminary 2014 Corporate Operating Plan
bullet Sustainablity Update March 20 2014
bullet Energy Assistance Program (EAP)/Common Fund

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