March 17, 2011
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 March 17, 2011, at 10:00 a.m.
Present were Directors M. J. Cavanaugh, N. P. Dodge, J. K. Green, A. L. McGuire, L. Scheve, 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, M. I. Doghman, E. E. Easterlin, J. T. Hansen, A. J. Minks, W. J. Lenagh, C. L. Buettner, D. C. Mueller, T. D. Pilmaier, R. J. Rogers, J. J. Hanson, and M. R. Jones. Others present included S. Boyer from Third Planet Windpower, LLC, T. Rinne, D. Corbin, M. Welsch, J. Pollack, R. Miller, Ken Dowdy (Local Union No. 1483) Doug Madison and Chris Cernik (union stewards), Mike Baker and Mark McColley, (business managers from trade union halls) and customer Ted Strasser.
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 March 11, 2011; 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 January 2011 Comprehensive Financial and Operating Report and that the minutes and the excused absence of Director Dodge for the last meeting be approved. The vote was recorded as follows: Cavanaugh – Yes; Dodge – Yes; McGuire – Yes; Scheve – Yes; Thompson – Yes; Ulrich – Yes; Weber – 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. Persons wishing to address the Board on all other matters will have an opportunity before the close of 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. 5862 authorizes management to delay the elimination of Rate Schedule No. 117 Trailer Court Rate from April 1, 2011 to June 1, 2011. Committee Chair McGuire led the discussion by stating in January 2011, the Board approved Resolution No. 5854 to eliminate Rate Schedule No. 117 (Trailer Court Rate) effective April 1, 2011. The Trailer Court Rate was authorized in May 1976 under Resolution No. 2411. The rate provides a 4% discount on the aggregate bill amount for providing “operations and collections” services to select mobile home parks receiving service in the name of the park owner. Trailer court owners on this rate expressed concerns about the elimination of the Trailer Court Rate and the requirements that they pay minimum monthly bills for all vacant trailer park sites. Given expressed customer concerns, the District recommends delaying the effective date of the Trailer Court Rate elimination from April 1, 2011 to June 1, 2011. Extending the termination date will allow for continued discussions between trailer court owners and OPPD management.
At this time, Mr. Ted Strasser of Home Trailer Park, 6902 N. 16 Street approached the microphone to inform the Board of his concern to discontinue the rate. Ms. McGuire indicated Customer Service Operations is looking into other alternatives and will inform the Board of a decision. Following the discussion, the vote was recorded as follows: Cavanaugh – Yes, Dodge – Yes; McGuire – Yes; Scheve – Yes; Thompson – Yes; Ulrich – Yes; Weber – Yes; and Green – Yes. The motion carried.
RESOLUTION NO. 5863 authorizes management to negotiate and execute Interlocal Agreements between the Omaha Public Power District and Nebraska public agencies subject to review and approval of any such Interlocal Agreement by District Counsel. Committee Chair McGuire led the discussion indicating Nebraska Revised Statutes allow for two or more public agencies to enter into agreements with one another for cooperative action pursuant to the Interlocal Cooperation Act. Interlocal Agreements allow two or more agencies to cooperate on projects and initiatives that are in the best interest of both parties. She indicated the Board has previously authorized Interlocal Agreements with municipalities and public school districts. These agreements allow for sole source opportunities to provide energy services for conservation, electric technologies and other services that OPPD has the ability to provide to other customer-owners.
She also mentioned that OPPD is currently having conversations with other public agencies including UNMC and Peru State College to provide additional energy products to help them save on their energy usage. Each Interlocal Agreement that is executed will be reported to the Board of Directors. Following the discussion, the vote was recorded as follows: Cavanaugh – Yes; Dodge – Yes; McGuire – Yes; Scheve – Yes; Thompson – Yes; Ulrich – Yes; Weber – Yes; and Green – Yes. The motion carried.
RESOLUTION NO. 5864 authorizes management to award a contract to Hyundai Heavy Industries in the amount of $890,871 for the purchase of a 161 – 13kV power transformer and spare bushings. Committee Chair Cavanaugh stated this transformer will serve as a spare for 41 units of this size currently in service. Eight proposals were received and all were technically responsive and seven were legally responsive. The Engineer’s Estimate for the total contract is $1,200,000. Mr. Cavanaugh added that this price is significantly lower than the price the District would have received for the same item just a year ago. Director McGuire expressed her concern over the ability of Hyundai to deliver the equipment given the situation in Japan and the potential for change in the world markets. Vice President Doghman indicated the recent events in Japan could impact the April 2012 delivery date; however, he said the power transformer is a spare, and if it cannot be delivered on time, the District has mobile substations that can be used. Following the discussion, the vote was recorded as follows: Cavanaugh – Yes, Dodge – Yes; McGuire – Yes; Scheve – Yes; Thompson – Yes; Ulrich – Yes; Weber – Yes; and Green – Yes. The motion carried.
RESOLUTION NO. 5865 approval of compensation adjustments for a Corporate Officer. Director Ulrich led the discussion by indicating these are yearly adjustments and commented on the exemplary performance of Mr. Burke. Mr. Ulrich proposed a 2.75% salary increase effective April 1, 2011. Following the discussion, the vote was recorded as follows: Cavanaugh – Yes, Dodge – Yes; McGuire – Yes; Scheve – Yes; Thompson – Yes; Ulrich – Yes; Weber – Yes; and Green – Yes. The motion carried.
Copies of the foregoing resolutions are filed in the District’s Corporate Records file.
The next order of business was the Sustainable Energy Update presentation. Mr. Dean Mueller, division manager - Sustainability Energy and Environmental Stewardship, began the presentation by reviewing OPPD’s current and future renewable energy projects. The combined effort of current and future projects will produce 184 MW which is 46% of OPPD’s 2020 goal of 400 MW.
Dean also discussed OPPD’s Environmental Stewardship efforts which include OPPD’s Green Team, hybrids and electric vehicles, cleaning products, recycling, and technology changes. The goal is a demand reduction of 50 MW by the end of 2012.
Ms. Cynthia Buettner, division manager - Customer Service Operations, reviewed OPPD’s energy conservation and efficiency initiatives which include mass market products, public service programs, government partnerships, and OPPD’s air conditioner cycling program.
Mr. Bill Lenagh, division manager- Customer Sales and Service, reviewed Commercial & Industrial Demand Side Management initiatives as well as the Digi Roof Top Unit (RFU) Pilot Program.
The next item of business was the opportunity for those in attendance to address the Board on any items of District concern.
Dr. Richard Miller, professor at Creighton University, advised the Board of additional material on climate science and the challenge of reducing fossil fuel emissions by 40% under 1990 levels by 2020 (handout attached). Chairman Green thanked Dr. Miller for his comments.
There being no further business, the meeting adjourned at 11:00 a.m.
|A. J. Minks
||D. S. Emerson