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 April 12, 2012, 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, 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, J. T. Hansen, S. L. Hutcherson, L. A. Olson, P. E. Lukowski, M. R. Jones, T. R. Monroe, and T. G. Tamke. Others present included IBEW Local Union members Danny Begley and Charlie Perkins as well as several employees and 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 April 6, 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 February 2012 Comprehensive Financial and Operating Report and approval of the minutes and the excused absence of Directors McGuire and Thompson for the last meeting be approved. The vote was recorded as follows: Cavanaugh – Yes; Green – Absent; McGuire – Yes; Scheve – Yes; Thompson – Abstain; 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 resolution was then read, and upon motion duly seconded, was then placed on roll call. The vote on each resolution is indicated following the description of that resolution.
(Director Green entered the meeting at 10:03 a.m.)
RESOLUTION NO. 5902 authorizes management to award a one-year extension of forestry services contracts. Director McGuire reported that this is to procure services for vegetation management, tree trimming, tree removal, right-of-way clearing and pesticide applications on District property and right-of-way. In July 2006, the Board awarded a three-year contract to Asplundh Tree Expert Company and Wright Tree Service, Inc. with optional annual renewals for an additional three years through August 31, 2012. Over the ensuing six-year period, both companies performed very well and exceeded performance metrics. Asplundh Tree Expert Company and Wright Tree Service, Inc. have offered to extend the expiring contract for one additional year at a reasonable and competitive price. Industry peers have reported that changing contractors for this type of work is often less efficient and more costly than continuing the relationship with a reliable current provider. There are no local providers of this service. The use of the statutory sealed bid process is not applicable to this service. Ms. McGuire also commented both companies have met performance factor ratings as well as having met the emergency call-out metric for 2011. Ms. McGuire asked Vice President Doghman to comment on how the District is able to cut costs without affecting the reliability of our system. Mr. Doghman responded that all projects are evaluated to optimize the work and ensure it is performed in the most effective way possible. He also indicated that tree trimming is critical to customer safety and system reliability as well as ensuring that OPPD adhere to standards set by the North American Electric Reliability Corporation. Director Thompson asked if this contract extension will be before the board each year and Mr. Doghman said the contract will be evaluated at the end of the period to determine whether to extend or rebid the contract. Following the discussion, the vote was recorded as follows: Cavanaugh – Yes; Green – Yes; McGuire – Yes; Scheve – Yes; Thompson – Abstain; Ulrich – Yes; Weber – Yes; and Dodge – Yes. The motion carried.
A copy of the foregoing resolution is filed in the District’s Corporate Records file.
The next item of business was the J.D. Power Business Customer Satisfaction Award presentation.
Chairman Dodge introduced Chris Oberle who is the Senior Partner Energy Practice for J.D. Power & Associates. Mr. Oberle presented the Results Presentation information via power point:
He began by discussing the 2012 Study Overview included the following:
Online interviews completed in two waves
24,385 businesses surveyed
Reporting results by brand
Region/size segment reporting
Same model as previous years
He discussed Industry Performance Trends which included the following information:
Power Quality & Reliability
Billing and Payment
Mr. Oberle reviewed the ratings for the following categories: Midwest Midsize Segment Overall Customer Satisfaction Index, Industry Top Ten on Overall CSI, Industry, Top Ten Small Business Overall CSI, Industry Top Ten Large Business Overall CSI, and Company Image Qualities ratings.
Mr. Oberle then discussed OPPD performance trends as well as the Industry Top Performing Peers for Overall CSI, Power Quality & Reliability, Billing and Payment, Corporate Citizenship, Price, Communications, and Customer Service.
He commented the Management Focus should include:
OPPD scores highest in Midwest Midsize segment on business customer satisfaction
OPPD posts the second highest score in the study
Key opportunities include:
Recontact after power restoration
Increase business paying on OPPD website
Engage OPPD management in business community
Increase energy savings program awareness
Utilize email as primary communications medium
Investigate IVR for improvement
Mr. Oberle displayed OPPD Performance Details - Mean Scores for the following categories: Power Quality & Reliability, Billing & Payment, Corporate Citizenship, Price, and Customer Service CSR Performance as well as Customer Service Web Performance details.
Mr. Oberle concluded the presentation by discussing Account Services Profile information between OPPD and the Peer Set.
At this time, Mr. Oberle congratulated OPPD and presented the 2012 Electric Utility Business award to Chairman Dodge. Mr. Dodge accepted the award on behalf of all OPPD employees and praised the employees for their continuous hard work especially under the adverse conditions of the past year.
The next item of business was the opportunity for those in attendance to address the Board on any items of District concern.
Mr Jeff Pokorny of 4969 S. 149 Ct., Omaha, NE 68137, voiced his concerns on several items including the status of the Fort Calhoun Station. Director McGuire thanked him for his comments and indicated that the Board has asked for a resumption of a report on operations that would be given at each Board meeting.
Mr. Tom Foster, 5211 N. 6 St., Omaha, NE 68110, voiced his concerns on various issues at the Fort Calhoun Station. These concerns were addressed by Vice President Dave Bannister.
Mr. Charles Ostiek, 328 S. 37 St, #1, Omaha, Ne 68131, voiced his concerns over conflicting information between the NRC and OPPD. These concerns were addressed by Vice President Dave Bannister.
Mr. Laverne Thraen, 4728 Cass St., #12, Omaha, NE 68132, voiced additional concerns over conflicting information between the NRC and OPPD, in particular the water issue in the auxiliary building. Vice President Bannister said he would follow up with the NRC. Mr. Thraen also expressed concern over OPPD’s working relationship with the uranium supplier Cameco.
Mr. William Snyder, 401 S. 38 Ave., #5, Omaha, NE 68131, voiced his concerns with the Fort Calhoun Station.
Mr. William Dahl, 6712 S. 91 St., Omaha, NE 68127, commented on the safety and security of nuclear power.
There being no further business, the meeting adjourned at 11:12 a.m.
T. J. Burke D. S. Emerson
Assistant Secretary Corporate Secretary