June 16, 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 June 16, 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 T. J. Burke, M. I. Doghman, E. E. Easterlin, J. T. Hansen, A. J. Minks, L. A. Olson, L. Nelson, L. M. Jacobson, W. J. Lenagh, D. J. Jacobberger, R. J. Rogers, J. J. Hanson, and M. R. Jones. Others present included B. Harding, W. Hutcherson, C. Perkins, J. Sojka, M. Welsch, and several customer owners and OPPD employees.
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 June 10, 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 April 2011 Comprehensive Financial and Operating Report and that the minutes and the approved absence of Directors Thompson and Ulrich for the last meeting be approved. The vote was recorded as follows: Cavanaugh – Yes; Dodge – Yes; McGuire – Yes; Scheve – Yes; Thompson – Abstain; Ulrich – Abstain; 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 next order of business was the J.M. Harding Award presentation. President Gates opened the 28th award ceremony by welcoming everyone to the presentation. Mr. Gates said we are here today to recognize Omaha Public Schools for their innovative energy practices. Mr. Gates acknowledged J. M. Harding’s grandson, Brinker Harding, who is in attendance today. Mr. Gates said the J. M. Harding Award of Excellence was established in 1984 to encourage energy-management efforts and honor organizations and businesses for efficient and innovative use of electricity. Mr. Gates said as the 2011 Harding Award winner, OPS understands the importance of providing conducive learning environments and its facilities create comfortable learning environments that stimulate students and staff. Also the OPS’s Green Schools Initiative is designed to make OPS one of the most energy and resource efficient school districts in the country. At this time, Mr. Gates introduced Dr. John Mackiel, Superintendent of Schools, who accepted the award. Dr. Mackiel thanked the Board for this honor on behalf of all the students and his staff of the Omaha Public Schools. Thereafter, Mr. Gates said that in addition to the J. M. Harding award, proceeds from the Swigart Invitational golf tournament fund two scholarships. The first scholarship is given to a student from UNO with studies in an energy-related field. Mr. Gates introduced this year’s winner, Matthew Goecke. Matthew was unable to attend and his mother, Mrs. Janet Goecke, accepted the award in Matthew’s absence. The second scholarship is awarded to a student from Creighton University with studies in business administration. Mr. Gates introduced Sahr Siddiqi as this year’s winner. Mr. Gates closed the presentation by extending his congratulations to each of this year’s recipients.
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. 5870 authorizes management to commence eminent domain proceedings to acquire land for the new Substation 1366 in Sarpy County. Committee Chair McGuire led the discussion by stating that OPPD has identified the need for a new substation to support the future growth and development of Southeast Sarpy County, maintain exceptional power reliability, and continue to provide excellent customer service. As a result, the Southeast Sarpy Growth & Reliability Project was initiated to identify system upgrades needed to support progressive growth and development, while providing reliable, low-cost electricity, maintain exceptional power reliability, and continue to provide excellent customer service to OPPD’s customers. Existing OPPD infrastructure is adequate in the short-term, but capacity and capital improvements are needed to maintain current reliability and serve future growth. The southeast portion of Sarpy County is poised for additional growth and development, especially along the proposed U.S. Highway 34 corridor, resulting in the need for the new substation in this area.
The location of Substation 1366 will be on the northwest corner of Platteview Road and 27th Street, shown on Exhibit B. The site selection included using a public involvement process and a core team within OPPD across many divisions and departments. Two public open houses were held to present information to landowners, local leaders, and agencies to obtain feedback about the substation and the project. The public involvement core team’s preferred substation selection criteria included the outcome from these meetings, which emphasized distance from homes, schools, recreational areas/facilities, residential platted development and transmission line length. OPPD also considered access to a major intersection, distance the power lines will be traveling to/from the substation and our customers, land constraints from slopes, waterways, and natural features, and impacts to current land use and future development. One land acquisition of approximately 10.5 acres, shown on Exhibit B, will be required to construct the new substation. Negotiations to acquire property voluntarily will begin in late June 2011. Use of eminent domain could be required after all reasonable efforts have been made to acquire land voluntarily. Eminent domain actions will be reported to the Board. Director Thompson said of the five sites that were displayed at the public meetings, the one that was chosen will impact future development in Sarpy County and the Bellevue area, and added that both the Sarpy County Commissioners and the City of Bellevue voted for OPPD to reconsider this location. Mr. Thompson said he would be voting against this item this morning to go along with the wishes of the elected officials of the county and city. Ms. Minks said the District recognizes this corner may impact the future development of Platteview Road, and the OPPD team has worked with the county officials and MAPA to ensure our facilities are moved further to the north to allow space for an adequate intersection at that site. She also indicated that the work has been delayed while the city and county work on the development of that site. Director Ulrich congratulated the team for all of their efforts and on a very successful process similar to past transmission line processes involving the peaking unit and Nebraska City Unit No. 2. He also credited Ms. Minks with leading this effort. Following the discussion, the vote was recorded as follows: Cavanaugh – Yes, Dodge – Yes; McGuire – Yes; Scheve – Yes; Thompson – No; Ulrich – Yes; Weber – Yes; and Green – Yes. The motion carried.
RESOLUTION NO. 5871 authorizes management to commence eminent domain proceedings to acquire permanent easements required for the construction of new 161kV and 69kV transmission lines and relocation of existing 161kV and 69kV transmission lines in Sarpy County. Committee Chair McGuire led the discussion indicating that OPPD has identified the need for construction and relocation of transmission lines required to support the future growth and development of Southeast Sarpy County, maintain exceptional power reliability, and continue to provide excellent customer service. Easements necessary for the project include up to 22 landowners with 29 tracts, which will be required to construct new and relocate existing power lines. Negotiations to acquire property voluntarily will begin in late 2011 and conclude in early 2012. Use of eminent domain could be necessary after all reasonable efforts have been made to acquire easements voluntarily. Eminent domain actions will be reported to the Board. 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. 5872 authorizes management to award a contract to install North Omaha Station Unit No. 2 boiler tube sections. Committee Chair Cavanaugh led the discussion indicating that sections of the waterwall arch and the (LTSH) tubing of the Unit No. 2 boiler have been evaluated and are recommended for replacement in order to maintain reliable operation of the unit. Installation of OPPD supplied materials will occur during a scheduled maintenance outage that will begin on September 17, 2011. Proposals were received from five vendors and all bids were technically and legally responsive. The Engineer’s Estimate at the time of the bid opening was $1,950,000. 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. 5873 authorizes management to waive sealed bid requirements for procurement of material, equipment, and services in response to District flooding. Committee Chair Cavanaugh led the discussion indicating that due to the volume of water released from upstream dams, the Missouri River is flowing at extremely high levels through Nebraska, Iowa, and Missouri. The high river levels already have caused some flooding in the District’s service area and pose a threat to the District’s electric system, including its power generation facilities located on the Missouri River. To address this threat, the District has initiated business continuity plans which include the procurement of necessary material, equipment, and services to protect District personnel and assets. The time required by the sealed bid process to procure necessary equipment, material, and services could result in damage to existing equipment or a delay in restoring power. Therefore, it is impractical and not in the public interest to utilize the sealed bid process to repair, replace, and maintain the electric system under these circumstances. The District has cash reserves, as specified in the Corporate Operating Plan, and are available for these types of expenditures. 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. 5874 approves the appointment of a Corporate Officer. Chairman Ulrich led the discussion by stating Sherrye Hutcherson emerged from the list as the top candidate and reviewed her qualifications as well as her strengths that she brings to the position. Ms. Hutcherson thanked the Board for their trust and she looks forward to working with the Board of Directors and the other members of Senior Management. 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. 5875 honors Adrian J. Minks upon her retirement. Chairman Green led the discussion by stating he has always been impressed by her diligence to her work and the support for the people that work for her and it has been a pleasure to work with Adrian. Several other directors expressed their appreciation for her service to OPPD. At this time, Chairman Green presented Ms. Minks with a framed resolution. 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.
At this time, President Gates presented the President’s Award to Adrian J. Minks.
Gary said one might think the award was designed specifically for Adrian, because she exemplifies everything the award stands for. Mr. Gates Gary thanked Adrian for how she helped chart the course of OPPD, and noted that her influence on the company will be felt for decades.
The next item of business was the opportunity for those in attendance to address the Board on any items of District concern.
Mr. Brinker Harding thanked the Board for continuing the tradition of the J. M. Harding Award as well as the two scholarships. Mr. Brinker presented the Board with a photograph of the closing meeting of the final step in the conversion of the Nebraska Power Company in 1946.
Mr. Mark Welsch, 5611 Howard St., Omaha, NE, thanked Chairman Green for the opportunity for the Nebraska Chapter of 350.org to work with Dean Mueller and OPPD on a proposal to reduce CO2 from power plants. Attached is a document that includes Mr. Welsch’s comments, the 350.org Nebraska Climate Mitigation Proposal, and an Op-Ed article that appeared in the June 15 Lincoln Star.
There being no further business, the meeting adjourned at 10:50 a.m.
A. J. Minks D. S. Emerson
Assistant Secretary Corporate Secretary