March 15, 2012
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 15, 2012, at 10:00 a.m.
Present were Directors M. J. Cavanaugh, N. P. Dodge, J. K. Green, L. Scheve, D. D. Weber, and F. J. Ulrich. Also present were W. G. Gates, President and S. M. Bruckner and T. Meyerson, General Counsel for the District. Mr. Dodge, 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, S. L. Hutcherson, L. A. Olson, P. E. Lukowski, M. R. Jones, and R. J. Rogers. Others present included several customer owners.
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 the same in the Omaha World-Herald and Outlets; by displaying such notice on the Arcade Level of Energy Plaza since March 9, 2012; 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 2012 Comprehensive Financial and Operating Report and the minutes for the last meeting be approved. The vote was recorded as follows: Cavanaugh – Yes; Green – Yes; McGuire – Absent; Scheve – Yes; Thompson – Absent; Ulrich – Yes; Weber – Yes; and Dodge – 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. 5899 authorizes management to negotiate and enter into a contract(s) to furnish 480V electrical isolation devices and services for the Fort Calhoun Station. Director Ulrich reported that this contract is for additional electrical isolation between redundant electrical distribution buses provides further reliability of the Fort Calhoun Station’s design to ensure the safety of the public. Additional electrical isolation is required between redundant buses of the 480 volt distribution system prior to advancement of the reactor into mode 1 or mode 2. The engineering and qualification testing of the isolation devices is technologically complex and unique. Compliance with the sealed bidding provisions of the Nebraska Revised Statutes Sections 70‑637 through 70-639, as amended, would be impractical and not in the public’s best interest. The total value of the engineering, materials, and services contract is estimated at $1.0 million. Mr. Ulrich added that management has yet to make the determination if the work is actually necessary, but due to the timing and importance of this item for restart of the station, management felt it prudent to go forward with this item. Following the discussion, the vote was recorded as follows: Cavanaugh – Yes; Green – Yes; McGuire – Absent; Scheve – Yes; Thompson – Absent; Ulrich – Yes; Weber – Yes; and Dodge – Yes. The motion carried.
RESOLUTION NO. 5900 authorizes management to award a contract to furnish, install, and commission the upgraded turbine control system on Unit No. 2 at the Nebraska City Station. Director Weber reported that in 2010, the District was informed by Toshiba International Corporation of the obsolescence of components used in the turbine and exciter systems at Nebraska City Station Unit 2. Two feasible approaches were evaluated. The first was a controls upgrade migration package from the original equipment manufacturer. The second approach was to incorporate the control logic in the existing Distributed Control System originally furnished by Emerson. Bids were received from Emerson and Toshiba International Corporation for RFP 3670. Burns and McDonnell has evaluated and recommended Toshiba International Corporation for a firm lump sum price of $587,600. This recommendation is based on their proposal, answers to questions during the evaluation process, and economic and technical evaluation of their proposal and pricing. The equipment will be installed by Toshiba International Corporation during the scheduled spring 2013 outage. Following the discussion, the vote was recorded as follows: Cavanaugh – Yes; Green – Yes; McGuire – Absent; Scheve – Yes; Thompson – Absent; Ulrich – Yes; Weber – Yes; and Dodge – Yes. The motion carried.
RESOLUTION NO. 5901 authorizes management to extend funding of the operations and maintenance agreement for the Elk City Station. Director Weber reported that in September 2000, the Board of Directors authorized management to negotiate a contract with Waste Management Inc. (WMI) for a landfill gas to energy facility at the Douglas County Landfill. WMI is the owner of the landfill. In March 2001, the Board of Directors authorized management to enter into agreements with WMI to install a 3.2 MW station with the understanding additional capacity may be added as the landfill expands. In 2005, there was sufficient landfill gas to expand the facility by adding an additional 3.2 MWs. The Board of Directors authorized management to negotiate the expansion of this facility. The first five years of the joint agreement for both plants will expire in April 2012. An estimated $6,000,000 will be required to fund operations and maintenance of the station for an additional five years. Director Green added how successful this project has been and his hopes for Sarpy and Cass Counties to be able to work with OPPD to have a similar project for their landfills. Following the discussion, the vote was recorded as follows: Cavanaugh – Yes; Green – Yes; McGuire – Absent; Scheve – Yes; Thompson – Absent; Ulrich – Yes; Weber – Yes; and Dodge – 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.
Ms. Frances Mendenhall of 3715 Hamilton, Omaha, NE 68131, asked for additional information on the NRC red finding event at the Fort Calhoun Station, and the information was provided by Vice President and Chief Nuclear Officer Dave Bannister.
Mr. Hendrik van den Burg, professor of economics at UNL, asked the Board to consider other alternatives to generate electricity rather than relying on coal.
Mr. John Pollack, 1412 N. 35 Street, Omaha, NE 68131, briefed the Board on the country’s changing climate.
There being no further business, the meeting adjourned at 10:33 a.m.
J. T. Hansen
D. S. Emerson