July 14, 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 July 14, 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, 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, J. T. Hansen, S. L. Hutcherson, L. A. Olson, T. R. Monroe, T. J. Richards, T. J. Tamke, P. E. Lukowski, and M. R. Jones. Others present included Senator Haar, K. Wainwright and L. Rea (LWVGO), C. Perkins, M. Welsch, R. Miller, J. Pollack, as well as a KETV news crew.
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 8, 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 May 2011 Comprehensive Financial and Operating Report and that the minutes 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. 5876 authorizes management to negotiate and enter into a contract to replace damaged switchgear equipment at the Fort Calhoun Station. Committee Chair Dodge led the discussion by stating that Electrical Bus 1B4A was damaged by fire on June 7, 2011 and requires replacement. The engineering, procurement and installation of the replacement load center switchgear are technologically complex and unique. Management has secured an Engineer’s Certification certifying that compliance with the sealed bidding provisions of the Nebraska State Revised Statutes 70-367 would be impractical and not in the public’s interest. The total value of the engineering, procurement and installation contract is estimated at $1.0 million. Chairman Green asked if this would lead to replacement of any other buses, and Vice President Bannister indicated his staff is looking at all of the buses and as of now, does not expect any other issues. Director McGuire asked if any other plants have experienced problems with these buses, and Mr. Bannister said he is not aware of any other nuclear plants experiencing any issues. 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. 5877 authorizes management to award a two-year contract extension for the purchase and delivery of pebble quicklime to the Nebraska City Station Unit 2. Committee Chair Cavanaugh led the discussion indicating that Nebraska City Station Unit 2 is equipped with a spray dryer absorber (SDA) to reduce airborne SO2 emissions. SDA operation requires a steady supply of pebble quicklime. Approximately 50,000 tons of pebble lime is consumed each year. The existing contract with Mississippi Lime Company expires July 31, 2011, but can be extended for up to two years. According to the US Geological Survey Index, the District’s future costs would be well below the national average. In addition, Mississippi Lime has provided above average service and lime quality for the past three years. The contract extension will be for a two year period starting August 1, 2011 to July 31, 2013. Director Ulrich asked about the disposition of the lime after its use, and Vice President Hansen said the lime is mixed with the ash and is transported to the landfill. 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, Chairman Green informed the public that the duration of this Board meeting is shorter due to the fact that the Board approved a resolution at the June meeting that gave management authorization to make expenditures as needed to ensure the District’s facilities are protected from flood waters. He also indicated that, as noted in the Omaha World Herald, significant expenditures have already been made in preserving the assets and maintaining the viability of the District’s resources while providing electricity on a daily basis.
Chairman Green then introduced Kennetta Wainwright and Liz Rea, who represent the League of Women Voters of Greater Omaha, and Senator Ken Haar.
The next item of business was the opportunity for those in attendance to address the Board on any items of District concern.
Mr. John Pollack, 1412 N. 35 Street, Omaha, NE 68131, expressed his appreciation to all OPPD employees for their efforts in protecting the Fort Calhoun Station during the flood and briefed the Board on the upcoming heat-related weather pattern while noting the opportunity for additional wind energy.
Senator Ken Haar, 13901 NW 126 St., Malcom, NE 68402 acknowledged the monumental task that OPPD has been faced with during the flood and expressed his appreciation for all employees’ efforts. Senator Haar also informed the Board that a grant has been awarded that will enable every school in Nebraska to have an energy STAR audit. He closed by urging the Board to take action to increase renewable energy.
There being no further business, the meeting adjourned at 10:20 a.m.
J. T. Hansen D. S. Emerson
Assistant Secretary Corporate Secretary