MINUTES OF THE ANNUAL MEETING OF THE

POWER AUTHORITY OF THE STATE OF NEW YORK

 

March 25, 2008

 

Table of Contents

 

 

 

            Subject                                                                                                                

 

1.              Housekeeping:  Review of Calendar of Trustees’ Meetings for  Balance of Year
 

2.              Consent Agenda:

a.        Minutes of the Regular Meeting held on February 26, 2008                        

b.        Power for Jobs Program – Extended Benefits, Exhibit  ‘2b-A’; ‘2b-B’

 

c.        Replacement Power and Expansion Power – Service, Exhibit  ‘2c-A’; ‘2c-B’;

Tariff Amendments – Notice of Proposed Rulemaking, Exhibit   ‘2c - C’     -                                                                                                                                                                                               

d.        Resolution for the Establishment of a Trustees’ Policy Related to Extension of Credit , Exhibit 10

 

e.        Annual Review and Approval of Guidelines and   Procedures and Annual Reports for the Disposal  of Personal and Real Property , Exhibit,  ‘2e-A’; ‘2e-A-1’;  ‘2e-B’; ‘2e-B-1’                                                                                                  

 

f.         Annual Review and Approval of Guidelines and  Procedures for the Acquisition of Real Property, Exhibit ‘2f-A’            

 

g.       Procurement (Services) Contracts – Business  Units and Facilities – Awards , Exhibit ‘2g-A’                   

 

 h.       Procurement (Services) Contracts – Business Unitsand Facilities – Extensions, Additional Funding and Increases in                Compensation Ceilings , Exhibit,  ‘2h-A’
Resolution

 

Discussion Agenda:

3.                    Financial Reports for the Two Months Ended February 29, 2008 , Exhibit ‘3-A’              

4.                    Report from the President and Chief Executive Officer 

5a.           Allocation of 250 kW of Hydropower , Exhibit, ‘5a-A’; ‘5a-A-1’

Resolution

5.                    St. Lawrence/FDR Power Project – Switchyard Circuit Breaker  Replacement Project – Capital Expenditure Authorization  

 Resolution

 

6.                    Procurement (Services) Contract – Emergency Repair  Services – Blenheim-Gilboa 345 kV High-Pressure Fluid-Filled Cable Replacement  

  Resolution

 

7.                    St. Lawrence/FDR Power Project – Local Community Project Funding

 Resolution

8.                    Tri-Lakes Reliability Project – Supplemental Final Environmental Impact Statement – Adoption of Findings, Exhibit ‘8-A’  

Resolution

9.                    Annual Review and Approval of Certain Authority Policies , Exhibit‘9-A - 9-I’

Resolution

10.                 Motion to Conduct an Executive Session   

11.                 Motion to Resume Meeting in Open Session  

12.                 Annual Review and Approval of Guidelines for the Investment of Funds and 2007 Annual Report on  Investment of Authority Funds        Exhibit, ‘12-A’;  ‘12-B’

Resolution

 

13.                 Annual Review and Approval of Guidelines for Procurement Contracts, 2007 Annual Report of Procurement  Contracts and Open Procurement Service Contracts, Exhibit, ‘13-A-1’; ‘13-A-2’; ‘13-A-3’                                                                             

Resolution

14.                 2007 Financial Reports Pursuant to Section 2800 of the Public Authorities Law and Regulations of the Office of the State Comptroller, Exhibit,‘14-A’; ‘14-B’                                                             

Resolution
 

15.                 Annual Election of Authority Non-Statutory Officers              

                Resolution 

16.                 Presentation: Status - NYPA Power Allocations                        

17.                 Next Meeting                                                                                         Closing                                                                                                                  

 


 

Minutes of the Annual Meeting of the Power Authority of the State of New York held via video conference at the following participating locations at 11:05 a.m.:

1)       New York Power Authority, 123 Main Street, White Plains, NY

2)       Volusia Reporting Company, 432 South Beach Street, Daytona, FL

The following Members of the Board were present at the following locations:

Present:                  Frank S. McCullough, Jr., Chairman (White Plains, NY)

                                Michael J. Townsend, Vice Chairman (White Plains, NY)

                                Elise M. Cusack, Trustee (White Plains, NY)

                                Robert E. Moses, Trustee (White Plains, NY)

                                Thomas W. Scozzafava, Trustee (White Plains, NY)

                                James, A. Besha, Sr., Trustee (White Plains, NY)

                                D. Patrick Curley, Trustee (Daytona, FL)

------------------------------------------------------------------------------------------------------------------------------------------------------

Roger B. Kelley                                    President and Chief Executive Officer

Thomas J. Kelly                                    Executive Vice President, General Counsel and Chief of Staff

Joseph Del Sindaco                             Executive Vice President and Chief Financial Officer

Gil C. Quiniones                                   Executive Vice President – Energy Marketing and Corporate Affairs

Vincent C. Vesce                                  Executive Vice President – Corporate Services and Administration

Steven J. DeCarlo                                 Senior Vice President – Transmission

Angelo S. Esposito                              Senior Vice President – Energy Services and Technology

William J. Nadeau                                Senior Vice President – Energy Resource Management and Strategic Planning

Edward A. Welz                                   Senior Vice President and Chief Engineer – Power Generation

James H. Yates                                     Senior Vice President – Marketing and Economic Development

Thomas P. Antenucci                          Vice President – Project Management

Richard J. Ardolino                              Vice President - Engineering – Project Management

Arnold M. Bellis                                   Vice President and Controller

Paul F. Finnegan                                  Vice President – Intergovernmental and Community Affairs

John M. Hoff                                        Vice President – Procurement and Real Estate

Lesly Y. Pardo                                      Vice President – Internal Audit

Donald A. Russak                                Vice President – Finance

William V. Slade                                   Vice President – Environment, Health and Safety

Thomas Warmath                                Vice President and Chief Risk Officer

Joseph J. Carline                                  Assistant General Counsel - Power and Transmission

Stephen P.  Shoenholz                        Deputy Vice President – Public Affairs

Daniel Wiese                                        Inspector General and Vice President – Corporate Security

Brian C. McElroy                                  Treasurer – Corporate Finance

Lisa A. Cole                                          Deputy Treasurer – Corporate Finance

Anne B. Cahill                                      Corporate Secretary

Angela D. Graves                                 Deputy Corporate Secretary

Dennis T. Eccleston                            Chief Information Officer

John J. Suloway                                   Executive Director – Licensing, Implementation and Compliance

Thomas J. Concadoro                         Director - Accounting – Business Services

Joseph Leary                                        Director - Corporate Community Affairs – Public and Governmental Affairs

Mark D. O’Connor                               Director - Real Estate – Procurement and Real Estate

James F. Pasquale                                Director – Business Power Allocations, Compliance and Municipal and

                                                                    Cooperative Marketing

Michael A. Saltzman                            Director – Media Relations

Michael J. Mitchell                              Project Manager – Project Management

Caroline G. Garcia                                 Manager - Power Contracts – Marketing and Economic Development

Mary Jean Frank                                  Associate Corporate Secretary
Lorna M. Johnson                               Assistant Corporate Secretary

Ricardo Da Silva                                   Electrical Engineer – Project Management


 

Diane Gil                                                Senior Procurement and Material Management System Analyst – Procurement and Real Estate

Oksana U. Karaczewsky                     Senior Procurement Compliance Coordinator – Procurement and Real Estate

Jack Murphy                                         Temporary Public Relations Counsel

 


 

Chairman McCullough presided over the meeting.  Secretary Cahill kept the Minutes.

 


 

1.                   Housekeeping:  Review of Calendar of Trustees’ Meetings for Balance of Year                                      

 

The Chairman submitted the following:

 

Review of Calendar of Trustees’ Meetings for Balance of Year

(all meetings are on Tuesdays at 11:00 a.m.)

 

Date

Location

April 29

White Plains Office

May 20

Blenheim-Gilboa

June 24

St. Lawrence Project

July 29

White Plains Office

September 23

White Plains Office

October 28

White Plains Office

November 25

White Plains Office

December 16

White Plains Office

 

 

 


 

2.                   Consent Agenda:

 

Chairman Frank McCullough asked if any Trustees wanted any item or items moved from the Consent Agenda to the Discussion Agenda, telling them that item #2c (Allocation of 250 kW of Hydropower) was being moved to the Discussion Agenda.  He then asked if any Trustees had any conflicts based on the contract list that had been provided to them with their agenda books.  Chairman McCullough told the Trustees that item #2b (Power for Jobs Program – Extended Benefits) had been approved by the Economic Development Power Allocation Board at its March 18th meeting and that items #2f (Annual Review and Approval of Guidelines and Procedures and Annual Reports for the Disposal of Personal and Real Property) and #2g (Annual Review and Approval of Guidelines and Procedures for the Acquisition of Realty Property) had been reviewed and recommended for approval by the Governance Committee at its meeting on February 26th

 

a.                    Minutes of the Regular Meeting held on February 26, 2008

                The Minutes of the Regular Meeting held on February 26, 2008 were unanimously adopted. 


 

b.             Power for Jobs Program – Extended Benefits

The President and Chief Executive Officer submitted the following report:

SUMMARY

 

“The Trustees are requested to approve extended benefits for 23 Power for Jobs (‘PFJ’) customers as listed in Exhibit ‘2b-A.’  In addition, the Trustees are requested to approve modifications to the benefits for three customers that have applied to have their PFJ benefits reinstated after having been reduced by the Economic Development Power Allocation Board (‘EDPAB’) for non-compliance with their job commitments as detailed in Exhibit ‘2b-B.’  EDPAB has recommended that these customers receive such benefits and modifications. 

 

BACKGROUND

 

                “In July 1997, the New York State Legislature approved a program to provide low-cost power to businesses and not-for-profit corporations that agree to retain or create jobs in New York State.  In return for commitments to create or retain jobs, successful applicants receive three-year contracts for PFJ electricity.

 

“The PFJ program originally made 400 megawatts (‘MW’) of power available.  The program was to be phased in over three years, with approximately 133 MW made available each year.  In July 1998, as a result of the initial success of the program, the Legislature amended the PFJ statute to accelerate the distribution of the power and increase the size of the program to 450 MW.

 

                “In May 2000, legislation was enacted that authorized another 300 MW of power to be allocated under the PFJ program.  Legislation further amended the program in July 2002.

 

                “Chapter 59 of the Laws of 2004 extended the benefits for PFJ customers whose contracts expired before the end of the program in 2005.  Such customers had to choose to receive an ‘electricity savings reimbursement’ rebate and/or a power contract extension.  The Authority was also authorized to voluntarily fund the rebates, if deemed feasible and advisable by the Trustees.

 

“PFJ customers whose contracts expired on or prior to November 30, 2004 were eligible for a rebate to the extent funded by the Authority from the date their contract expired through December 31, 2005. 

 

“PFJ customers whose contracts expired after November 30, 2004 were eligible for rebate or contract extension, assuming funding by the Authority, from the date their contracts expired through December 31, 2005.

 

“Approved contract extensions entitled customers to receive the power from the Authority pursuant to a sale-for-resale agreement with the customer’s local utility.  Separate allocation contracts between customers and the Authority contained job commitments enforceable by the Authority.

 

“In 2005, provisions of the approved State budget extended the period PFJ customers could receive benefits until December 31, 2006.  Chapter 645 of the Laws of 2006 included provisions extending program benefits until June 30, 2007.  Chapter 89 of the Laws of 2007 included provisions extending program benefits until June 30, 2008.

 

“At its meeting of October 18, 2005, EDPAB approved criteria under which applicants whose extended benefits EDPAB had reduced for non-compliance with their job commitments could apply to have their PFJ benefits reinstated in whole or in part.  EDPAB authorized staff to create a short-form application, notify customers of the process, send customers the application and evaluate reconsideration requests based on the approved criteria. 

 

DISCUSSION

 

“At its meeting on March 18, 2008, EDPAB recommended that the Authority’s Trustees approve electricity savings reimbursement rebates to the 23 businesses listed in Exhibit ‘2b-A.’  Collectively, these organizations have agreed to retain more than 20,000 jobs in New York State in exchange for the rebates.  The rebate program will be in effect until June 30, 2008, the program’s sunset.

“Also, at its meeting on March 18, 2008, based on the reconsideration criteria, EDPAB recommended that the Authority’s Trustees approve modifications to the benefits for three customers that have applied to have their PFJ benefits reinstated after they were reduced by EDPAB for non-compliance with their job commitments.

 

                  “The Trustees are requested to approve the payment and funding of rebates for the companies listed in Exhibit ‘2b-A’ in a total amount currently not expected to exceed $1.8 million.  Staff recommends that the Trustees authorize a withdrawal of monies from the Operating Fund for the payment of such amount, provided that such amount is not needed at the time of withdrawal for any of the purposes specified in Section 503(1)(a)-(c) of the General Resolution Authorizing Revenue Obligations, as amended and supplemented.  Staff expects to present the Trustees with requests for additional funding for rebates to the companies listed in the Exhibits in the future.

 

FISCAL INFORMATION

 

“Funding of rebates for the companies listed in Exhibit ‘2b-A’ is not expected to exceed $1.8 million.  Payments will be made from the Operating Fund.  To date, the Trustees have approved $113.3 million in rebates.

 

RECOMMENDATION

 

“The Executive Vice President and Chief Financial Officer and the Director – Business Power Allocations, Compliance and Municipal and Cooperative Marketing recommend that the Trustees approve the payment of electricity savings reimbursements to the Power for Jobs customers listed in Exhibit ‘2b-A.’  It is also recommended that the Trustees approve modifications to the benefits for three customers that have applied to have their Power for Jobs benefits reinstated after they were reduced by the Economic Development Power Allocation Board for non-compliance with their job commitments, as detailed in Exhibit ‘2b-B.’

 

                “The Executive Vice President, General Counsel and Chief of Staff, the Executive Vice President – Energy Marketing and Corporate Affairs, the Senior Vice President – Marketing and Economic Development and I concur in the recommendation.”

 

The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

 

WHEREAS, the Economic Development Power Allocation Board (“EDPAB”) has recommended that the Authority approve electricity savings reimbursements to the Power for Jobs (“PFJ”) customers listed in Exhibit “2b-A”; and

 

WHEREAS, EDPAB has recommended that the Authority approve modifications to three allocations for customers that have applied to have their PFJ benefits reinstated after they were reduced by EDPAB for non-compliance with their job commitments, as detailed in Exhibit “2b-B”;

 

NOW THEREFORE BE IT RESOLVED, That to implement such EDPAB recommendations, the Authority hereby approves the payment of electricity savings reimbursements to the companies listed in Exhibit “2b-A,” and that the Authority finds that such payments for electricity savings reimbursements are in all respects reasonable, consistent with the requirements of the PFJ program and in the public interest; and be it further

 

RESOLVED, that to implement such EDPAB recommendations, the Authority hereby approves modifications to the benefits for three customers that have applied to have their PFJ benefits reinstated after they were reduced by EDPAB for non-compliance with their job commitments, as detailed in Exhibit “2b-B”; and be it further

 

RESOLVED, That based on staff’s recommendation, it is hereby authorized that payments be made for electricity savings reimbursements as described in the foregoing report of the President and Chief Executive Officer in the aggregate amount of up to $1.8 million, and it is hereby found that amounts may properly be withdrawn from the Operating Fund to fund such payments; and be it further

 

  RESOLVED, That such monies may be withdrawn pursuant to the foregoing resolution upon the certification on the date of such withdrawal by the Vice President – Finance or the Treasurer that the amount to be withdrawn is not then needed for any of the purposes specified in Section 503(1)(a)-(c) of the General Resolution Authorizing Revenue Obligations, as amended and supplemented; and be it further

 

RESOLVED, That the Senior Vice President – Marketing and Economic Development or his designee be, and hereby is, authorized to negotiate and execute any and all documents necessary or desirable to effectuate the foregoing, subject to the approval of the form thereof by the Executive Vice President, General Counsel and Chief of Staff; and be it further

 

  RESOLVED, That the Chairman, the President and Chief Executive Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things and take any and all actions and execute and deliver any and all certificates, agreements and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President, General Counsel and Chief of Staff.


 

 

 


 

c.             Replacement Power and Expansion Power – Service Tariff Amendments – Notice of Proposed Rulemaking                      

 

The President and Chief Executive Officer submitted the following report:

SUMMARY

“The Trustees are requested to authorize the Corporate Secretary to publish a Notice of Proposed Rulemaking (‘NOPR’) in the New York State Register, in accordance with the requirements of the State Administrative Procedure Act (‘SAPA’), to amend the Authority’s current production service tariffs applicable to Replacement Power (‘RP’) and Expansion Power (‘EP’) customers.  Authority staff will address any comments received during the 45-day public comment period and return to the Trustees at a later date to seek final action on the RP and EP service tariffs.

“A comprehensive review of the Authority’s current RP and EP production service tariffs was performed by Authority staff in an effort to update them and to account for certain changes that occurred over time.  The amended tariffs, as proposed, would:

·         add frequently used abbreviations and terms

BACKGROUND

“RP customers are served under Schedule No. NP-F1 and EP customers are served under Service Tariffs No. 46 for resale service and EP-1 for direct service.  Currently, electricity for these customers is sold under direct-sale contracts or under resale agreements between the Authority and the utility purchasing RP or EP from the Authority for resale to any business customers that have received an RP or EP allocation from the Authority.

DISCUSSION

“Authority staff believes that the amended RP and EP service tariffs will be a significant improvement over the existing tariffs.  These changes will, for each tariff, consolidate in one document various tariff provisions (such as those related to the Annual Adjustment Factor) that were adopted at different times, include necessary updated terminology, and improve the organization and formatting.

 

“In addition, the proposed changes to the tariffs will make them more consistent with formatting of other utilities’ tariffs and will make them more readable and understandable for the Authority and its RP and EP customers.

 

“The proposed RP, EP for resale and EP for direct service tariffs are attached as Exhibits ‘2c-A,’ ‘2c-B,’ and ‘2c-C,’ respectively.

 

FISCAL INFORMATION

“Adoption of the proposed RP and EP service tariffs will have no financial impact.  The changes proposed are administrative in nature and have no effect on current production rates.

 


 

RECOMMENDATION

“The Manager Power Contracts recommends that the Trustees authorize the Corporate Secretary to file a Notice of Proposed Rulemaking in the New York State Register for the revision of service tariffs for the Authority’s Replacement Power and Expansion Power Customers.

“The Executive Vice President, General Counsel and Chief of Staff, the Executive Vice President – Energy Marketing and Corporate Affairs, the Senior Vice President – Marketing and Economic Development and I concur in the recommendation.”

The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

 

RESOLVED, That the Corporate Secretary of the Authority be, and hereby is, directed to file a Notice of Proposed Rulemaking for publication in the New York State Register in accordance with the State Administrative Procedure Act to amend the Authority’s current production service tariffs applicable to its Replacement and Expansion Customers, as set forth in the foregoing report of the President and Chief Executive Officer; and be it further

RESOLVED, That the Corporate Secretary of the Authority be, and hereby is, directed to file such other notice(s) as may be required by statute or regulation concerning the proposed tariffs amendments; and be it further

RESOLVED, That the Chairman, the President and Chief Executive Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things and take any and all actions and execute and deliver any and all certificates, agreements and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President, General Counsel and Chief of Staff.


 

d.                    Resolution for the Establishment of a Trustees’ Policy Related to Extension of Credit                     

 

The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

 

WHEREAS, Section 2824(5) of the Public Authorities Law states that “Notwithstanding any provisions of any general, special or local law, municipal charter or ordinance to the contrary, no board of a state or local authority shall, directly or indirectly, including through any subsidiary, extend or maintain credit, arrange for the extension of credit, or renew an extension of credit, in the form of a personal loan to or for any officer, board member or employee (or equivalent thereof) of the authority”;

 

NOW THEREFORE BE IT RESOLVED, That the New York Power Authority’s Board of Trustees hereby adopts a policy that the Board shall not, directly or indirectly, extend or maintain credit, arrange for the extension of credit, or renew an extension of credit, in the form of a personal loan to or for any officer, board member or employee (or equivalent thereof) of the Power Authority.


 

                e.             Annual Review and Approval of Guidelines and Procedures and Annual Reports for the
                               Disposal of Personal and Real Property            

 

The President and Chief Executive Officer submitted the following report:

 

SUMMARY

 

“The Trustees are requested to review and approve the following, which comply with the requirements of the Public Authorities Accountability Act (‘PAAA’) of 2005:  (1) Guidelines and Procedures for the Disposal of Personal Property (‘Personal Property Guidelines’) for the disposition of surplus or obsolete material, equipment and supplies; and (2) Guidelines and Procedures for the Disposal of Real Property (‘Real Property Guidelines’) for transfers of land or interests in land.  Such Guidelines are set forth in Exhibits ‘2e-A’ and ‘2e-B,’ respectively, as attached hereto.  The Trustees are also requested to review and approve the 2007 Annual Reports of the Disposal of Personal and Real Property, as set forth in Exhibits ‘2e-A-1’ and ‘2e-B-1,’ respectively, as attached hereto.

 

BACKGROUND

 

“On January 13, 2006, Governor Pataki signed the PAAA into law, codifying the Model Governance Principles established for public authorities in 2004 by the Governor’s Advisory Committee on Authority Governance.  Among its provisions, the PAAA established new rules for the disposal of public authority personal and real property.  The law also required each authority to draft guidelines consistent with the legislation dealing with these issues, to review and approve such guidelines annually and to prepare an annual report of the disposal of personal and real property (including the full description, price received and name of the purchaser for all such property disposed of by the authority during such period).

 

“At their meeting of March 27, 2007, the Trustees reviewed and approved the amended Personal Property Guidelines and Real Property Guidelines in accordance with the above and Executive Orders issued by Governor Eliot Spitzer providing for restrictions on politics and nepotism in contracting.  At their meeting of April 24, 2007, the Trustees reviewed and approved further amendments to the Guidelines necessitated by the Public Employee Ethics Reform Act (‘PEERA’) of 2007, which became effective on April 25, 2007 and included modified versions of the restrictions contained in the prior Executive Orders.

 

DISCUSSION

 

“The Personal Property Guidelines set forth the methodology detailing the Authority’s policy and procedures regarding the use, award, monitoring and reporting of contracts for the disposal of personal property, and designate a Contracting Officer responsible for the Authority’s compliance with, and enforcement of, such Guidelines.

 

“The Real Property Guidelines set forth the methodology the Authority uses in the following specific areas:

 

§         Maintaining inventory of the real property interests owned or under the jurisdiction of the Authority;

§         Disposing of such interests when they become surplus to the Authority’s needs;

§         Making annual reports of such transactions; and

§         Designating a Contracting Officer responsible for implementing such guidelines.

 

“After reviewing the Personal Property and Real Property Guidelines, staff recommends no substantive changes.  However, a number of editorial changes were made to the Guidelines, as set forth in the redlined copies attached hereto as Exhibits ‘2e-A’ and ‘2e-B,’ respectively.

 

“After being reviewed and approved by the Trustees on or before the 31st day of March each year, the Guidelines and corresponding Annual Reports must be filed with the State Comptroller, the Director of the Budget, the Commissioner of General Services and the State Legislature and posted on the Authority’s website.

 


 

FISCAL INFORMATION

 

“There will be no financial impact on the Authority.

 

RECOMMENDATION

 

“The Vice President – Procurement and Real Estate, the Vice President – Internal Audits and the Director of Real Estate recommend that the Trustees approve the Guidelines and Procedures for the Disposal of Personal  Property for the disposition of surplus or obsolete material, equipment and supplies; the Guidelines and Procedures for the Disposal of Real Property for transfers of land or interests in land and the corresponding 2007 Annual Reports of the Disposal of Personal and Real Property, as set forth in Exhibits ‘2e-A,’ ‘2e-A-1,’ ‘2e-B’ and

‘2e-B-1,’ respectively.

 

“The Executive Vice President, General Counsel and Chief of Staff, the Executive Vice President – Chief Financial Officer, the Executive Vice President – Corporate Services and Administration and I concur in the recommendation.”

 

The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

 

RESOLVED, That pursuant to the provisions of the Public Authorities Accountability Act of 2005, the Authority hereby reviews and approves the Guidelines and Procedures for the Disposal of Personal Property and the Guidelines and Procedures for the Disposal of Real Property, as set forth in Exhibits “2e-A” and “2e-B,” respectively, and attached hereto; and be it further

 

RESOLVED, That pursuant to the provisions of the Public Authorities Accountability Act of 2005, the Authority hereby reviews and approves the 2007 Annual Reports for the Disposal of Personal and Real Property, as set forth in Exhibits “2e-A-1” and “2e-B-1,” respectively, and attached hereto; and be it further

 

RESOLVED, That the Chairman, the President and Chief Executive Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things and take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President, General Counsel and Chief of Staff.

 

                f.              Annual Review and Approval of Guidelines and Procedures for the Acquisition of Real Property

 

The President and Chief Executive Officer submitted the following report:

 

SUMMARY

“The Trustees are requested to approve the Guidelines and Procedures for the Acquisition of Real Property (‘Real Property Acquisition Guidelines’ or ‘Guidelines’) set forth in Exhibit ‘2f-A,’ attached hereto.  These Guidelines comply with the requirements of the Public Authorities Accountability Act of 2005 (‘PAAA’). 

BACKGROUND

“On January 13, 2006, Governor George E. Pataki signed the PAAA into law.  The law codifies the Model Governance Principles established for public authorities in 2004 by the Governor’s Advisory Committee on Authority Governance chaired by Ira Millstein.  Among its provisions, the PAAA requires public authority board members to establish written policies and procedures for the acquisition of real property.

DISCUSSION

“At their March 28, 2006 meeting, the Trustees approved the following: (1) Guidelines and Procedures for the Disposal of Personal Property (‘Personal Property Guidelines’) for the disposition of surplus or obsolete material, equipment and supplies; and (2) Guidelines and Procedures for the Disposal of Real Property (‘Real Property Guidelines’) for transfers of land.

“In order to further comply with the PAAA, staff has drafted the Real Property Acquisition Guidelines.  Heretofore, the Authority has not had a formal policy for the acquisition of real property.

“The Guidelines set forth the methodology that the Authority will use in the following specific areas:

·    Acquisition and Valuation of Real Property

·    Duties of the Director of Real Estate

·    Environmental Compliance

·    Ethical Considerations

·    Annual Reporting

 

FISCAL INFORMATION

“There will be no financial impact on the Authority.

 

RECOMMENDATION

“The Vice President – Procurement and Real Estate and the Director of Real Estate recommend that the Trustees approve the Guidelines and Procedures for the Acquisition of Real Property for acquisitions of land as set forth in Exhibit ‘2f-A.’

“The Executive Vice President, General Counsel and Chief of Staff, the Executive Vice President – Corporate Services and Administration, the Vice President – Internal Audits and I concur in the recommendation.”
 

The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

 

RESOLVED, That pursuant to the provisions of the Public Authorities Accountability Act of 2005, the Authority hereby adopts Guidelines and Procedures for the Acquisition of Real Property (“Guidelines”) as set forth in Exhibit “2f-A” and attached hereto; and be it further

 

RESOLVED, That Authority staff may take any and all steps necessary or convenient to implement such Guidelines; and be it further

 

RESOLVED, That the Chairman, the President and Chief Executive Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things and take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President, General Counsel and Chief of Staff.

 

 

g.             Procurement (Services) Contracts – Business Units and Facilities – Awards
 

The President and Chief Executive Officer submitted the following report:

 

SUMMARY

“The Trustees are requested to approve the award and funding of the multiyear procurement contracts listed in Exhibit ‘2g-A’ for the Authority’s Business Units/Departments and Facilities.  Detailed explanations of the nature of such services, the bases for the new awards if other than to the lowest-priced bidders and the intended duration of such contracts are set forth in the discussion below.

BACKGROUND

“Section 2879 of the Public Authorities Law and the Authority’s Guidelines for Procurement Contracts require the Trustees’ approval for procurement contracts involving services to be rendered for a period in excess of one year.

“The Authority’s Expenditure Authorization Procedures (‘EAPs’) require the Trustees’ approval for the award of non-personal services, construction or equipment purchase contracts in excess of  $3 million, as well as personal services contracts in excess of $1 million if low bidder, or $500,000 if sole source or non-low bidder.

DISCUSSION

“The terms of these contracts will be more than one year; therefore, the Trustees’ approval is required.  Except as noted, all of these contracts contain provisions allowing the Authority to terminate the services for the Authority’s convenience, without liability other than paying for acceptable services rendered to the effective date of termination.  Approval is also requested for funding all contracts, which range in estimated value from $90,000 to $600,000.  Except as noted, these contract awards do not obligate the Authority to a specific level of personnel resources or expenditures.

“The issuance of multiyear contracts is recommended from both cost and efficiency standpoints.  In many cases, reduced prices can be negotiated for these long-term contracts.  Since these services are typically required on a continuous basis, it is more efficient to award long-term contracts than to re-bid these services annually.

Contracts in Support of Business Units/Departments and Facilities:

Corporate Services and Administration

“The contract with Miller Advertising Agency, Inc. (‘Miller’) (Q08-4238; PO# TBA) would become effective on April 1, 2008, subject to the Trustees’ approval.  The purpose of this contract is to provide for recruitment advertising services in support of the Authority’s recruitment efforts in engineering and other specialized technical and financial areas, as well as administrative staff, for its offices and operating facilities.  Services generally include, but are not limited to, refinement and placement of external recruitment advertisements/job postings (including copywriting and design), recommendations concerning which sources of media (i.e., industry-specific targeted websites, associations, schools and alumni groups, newspapers and trade journals, etc.) should be used, and actual placement of the job postings (on websites and in print media, as appropriate), as well as ‘resume mining’ of major and niche online resume databases.  Bid documents were downloaded electronically from the Authority’s Procurement website by 19 firms, including those that may have responded to a notice in the New York State Contract Reporter.  Two proposals were received and evaluated.  Staff recommends award of a contract to Miller, the lowest-priced bidder that is qualified to perform such services and meets the bid requirements.  The intended term of this contract is up to five years, subject to the Trustees’ approval, which is hereby requested.  Approval is also requested for the total amount expected to be expended for the term of the contract, $550,000.

Energy Marketing and Corporate Affairs

Energy Services and Technology

“The contract with Millennium Maintenance and Electrical Contractors, Inc. (‘Millennium’) (Q07-4192; PO# TBA) would become effective on April 1, 2008, subject to the Trustees’ approval.  The purpose of this contract is to provide for warranty work for lighting projects, as part of the Authority’s Energy Services Programs (‘ESPs’).  Services include, but are not limited to, providing electrical installation services to replace lamps, ballasts, fixtures and/or other appurtenances that have been installed under the ESPs, primarily in the Southeastern New York region.  Such replacement will be done on individual fixtures that fail within one year of installation, on an ‘as needed’ basis.  Bid documents were downloaded electronically from the Authority’s Procurement website by three firms, including those that may have responded to a notice in the New York State Contract Reporter.  One proposal was received and evaluated.  Staff recommends award of a contract to Millennium, the sole responding bidder, which is qualified to perform such work and meets the bid requirements.  The intended term of this contract is up to three years, subject to the Trustees’ approval, which is hereby requested.  Approval is also requested for the total amount expected to be expended for the term of the contract, $100,000.  All costs will be recovered by the Authority.

Marketing and Economic Development

“The contract with Quantec LLC (Q08-4262; PO# TBA) would become effective upon the filing of the next Consolidated Edison Company of New York, Inc. (‘Con Ed’) delivery service rate case, which is anticipated to occur on or about May 1, 2008, subject to the Trustees’ approval.  The Public Service Commission is expected to grant Con Ed a one-year rate increase (rather than the three years requested by Con Ed).  The anticipated filing by Con Ed is expected to request another rate increase for at least the two previously-requested years.  The Authority is obligated to actively intervene in all Con Ed rate cases on behalf of its governmental customers.  The purpose of this contract is to provide for consulting services in connection with the anticipated Con Ed delivery service rate case that Con Ed is expected to file.  Quantec has spent the past eleven months as the Authority’s consultant on the Con Ed delivery service rate case filed in May 2007; the firm has been integral to the development of the Authority’s strategy and position.  It would not be practical or cost-effective to hire a new consultant, since the next case will rely heavily upon the facts and circumstances of the case just concluded.  The new award is therefore made on a sole source basis and meets the requirements set forth in the Procurement Guidelines, which allow for a sole source award where ‘services are required to extend or complement a prior procurement and it is impracticable or uneconomic to have a source other than the original source continue the work.’  The intended term of this contract is up to two years, subject to the Trustees’ approval, which is hereby requested.  Approval is also requested for the total estimated amount expected to be expended for the term of the contract, $400,000  (including contingency).  If additional funding should be required to support rate case work that cannot be projected at this time, approval of such additional funding will be in accordance with the Authority’s EAPs.

Power Generation

“Due to the need to commence services, the contract with ICx Transportation Group, Inc. (‘ICx’; 4500154550) became effective on February 28, 2008, subject to the Trustees’ subsequent  approval as soon as practicable, in accordance with the Authority’s procurement policies and EAPs.  The purpose of this contract is to provide for design services for security system upgrades at the Niagara Power Project.  Bid documents were downloaded electronically from the Authority’s Procurement website by 18 firms, including those that may have responded to a notice in the New York State Contract Reporter.  Six proposals were received and evaluated.  Staff recommends award of a contract to ICx, the lowest-priced qualified bidder that meets the bid requirements.  The two lower-priced bidders were disqualified by the Evaluation Team on the basis of a lack of understanding of the specified design scope in the Request for Proposals or a lack of the product (e.g., sensors) experience required to perform the engineering scope of this project.  The intended term of this contract is approximately twenty-two months, subject to the Trustees’ approval, which is hereby requested.  Approval is also requested for the total estimated amount expected to be expended for the term of the contract, $430,000 (including contingency).
 

“Due to the need to commence services, the contract with LaBella Associates, P. C. (‘LaBella’; 4500154519) became effective on February 28, 2008, subject to the Trustees’ subsequent approval as soon as practicable, in accordance with the Authority’s procurement policies and EAPs.  The purpose of this contract is to provide for engineering and design services for the wall and berm project for Niagara University (‘NU’), pursuant to an agreement between the Authority and NU for construction of a visual barrier between the Authority’s switchyard and NU property.  Services include all labor, materials, equipment and supervision necessary to produce construction drawings, technical specifications, construction inspections and final as-built drawings of the NU wall and berm.  Bid documents were downloaded electronically from the Authority’s Procurement website by 32 firms, including those that may have responded to a notice in the New York State Contract Reporter.  Five proposals were received and evaluated.  Staff recommends award of a contract to LaBella, the lowest-priced bidder that is qualified to perform the work and meets the bid requirements.  The intended term of this contract is approximately 22 months, subject to the Trustees’ approval, which is hereby requested.  Approval is also requested for the total amount expected to be expended for the term of the contract, $112,000 (including contingency).

“The contract with PB Power, Inc. (Q08-4229; PO# TBA) would become effective on April 1, 2008, subject to the Trustees’ approval.  The purpose of this contract is to provide for the services of an independent consultant to perform dam safety inspections and reviews and issue reports for the Niagara and Jarvis Power Projects, as mandated by the Federal Energy Regulatory Commission (‘FERC’).  The resume(s) of the specific independent consultant(s) employed by PB Power must also be approved by FERC.  Bid documents were downloaded electronically from the Authority’s Procurement website by 23 firms, including those that may have responded to a notice in the New York State Contract Reporter.  Five proposals were received and evaluated.  Staff recommends award of a contract to PB Power, the lowest-priced evaluated bidder (including evaluation of hourly rates for potential additional work that may be required by FERC), which is qualified to perform such work, meets the bid requirements and which has provided satisfactory service under the current contract.  FERC also requires the independent consultant to be available to respond to follow-up questions for a period of five years and, historically, FERC has required the Authority to use the FERC-approved independent consultant to perform follow-up work.  The intended term of this contract is five years, subject to the Trustees’ approval, which is hereby requested.  Approval is also requested for the total amount expected to be expended for the term of the contract, $220,000.

“The contract with Professional Health Services, Inc. (‘PHS’) (BG-0108; PO# TBA) would become effective on May 1, 2008, subject to the Trustees’ approval.  The purpose of this contract is to provide for on-site annual medical/occupational physical examinations and other medical services for approximately 110 employees at the Blenheim-Gilboa Pumped Storage Power Project, in accordance with all applicable safety and health standards and Authority policy.  Bid documents were sent to seven firms, including those that may have responded to a notice in the New York State Contract Reporter.  Two proposals were received and evaluated.  Staff recommends award of a contract to PHS, the lowest-priced bidder, which is qualified to perform such work and meets the bid requirements.  The intended term of this contract is three years, subject to the Trustees’ approval, which is hereby requested.  Approval is also requested for the total amount expected to be expended for the term of the contract, $90,000.

“The contract with RFJ Insulation Contractor, Inc. (‘RFJ’) (Q07-4204; PO# TBA) would become effective on April 1, 2008, subject to the Trustees’ approval.  The purpose of this contract is to provide for installation of new insulation and repair of existing insulation at the Poletti and 500 MW Power Projects and the Flynn and Small Clean Power Plants.  Bid documents were downloaded electronically from the Authority’s Procurement website by 12 firms, including those that may have responded to a notice in the New York State Contract Reporter.  Two proposals were received and evaluated.  Staff recommends award of a contract to RFJ, the lowest-priced bidder, which is qualified to perform such work and meets the bid requirements.  The intended term of this contract is three years, subject to the Trustees’ approval, which is hereby requested.  Approval is also requested for the total amount expected to be expended for the term of the contract, $600,000.

“Due to the need to commence services, the contract with Stantec Consulting Services, Inc. (‘Stantec’; 4500154532) became effective on February 28, 2008, subject to the Trustees’ subsequent approval as soon as practicable, in accordance with the Authority’s procurement policies and EAPs.  The purpose of this contract is to provide for design engineering services for rehabilitation of the Niagara River intake gate hoist structures at the Niagara Power Project.  Bid documents were downloaded electronically from the Authority’s Procurement website by 30 firms, including those that may have responded to a notice in the New York State Contract Reporter.  Three proposals were received and evaluated.  Staff recommended award of the subject contract to Stantec, the lowest-priced bidder, which is qualified to perform such services and meets the bid requirements.  The intended term of this contract is three years, subject to the Trustees’ approval, which is hereby requested.  Approval is also requested for the total estimated amount expected to be expended for the term of the contract, $287,000 (including contingency).

“The contract with Stockholm Oil, Inc. dba Reliable Waste Systems (‘RWS’) (6000086751; PO# TBA) would become effective on April 1, 2008, subject to the Trustees’ approval.  The purpose of this contract is to provide for refuse removal and disposal services for the St. Lawrence/FDR Power Project.  Services include furnishing all necessary containers for refuse, recyclables and insulators, as needed, and include the container, hauling, landfill and disposal fees.  Bid documents were sent to four firms, including those that may have responded to a notice in the New York State Contract Reporter.  Two proposals were received and evaluated.  Staff recommends award of a contract to RWS, the lowest-priced bidder, which is qualified to perform such work and meets the bid requirements.  The intended term of this contract is three years, subject to the Trustees’ approval, which is hereby requested.  Approval is also requested for the total amount expected to be expended for the term of the contract, $175,000.

“The contract with Walter T. Gorman, PE, PC (Q08-4230; PO# TBA) would become effective on April 1, 2008, subject to the Trustees’ approval.  The purpose of this contract is to provide for engineering permitting services to support multiple projects at the Poletti and 500 MW Power Projects and the Small Clean Power Plants, as needed.  Services include, but are not limited to, ensuring compliance with all applicable permitting requirements for power plants issued by the New York City Department of Buildings and the New York City Fire Department.  Bid documents were downloaded electronically from the Authority’s Procurement website by 22 firms, including those that may have responded to a notice in the New York State Contract Reporter.  Two proposals were received and evaluated.  Staff recommends award of a contract to WT Gorman, the lowest-priced bidder that meets the bid requirements and is qualified to perform the work.  The intended term of this contract is 1.75 years, subject to the Trustees’ approval, which is hereby requested.  Approval is also requested for the total estimated amount expected to be expended for the term of the contract, $170,000.

FISCAL INFORMATION

“Funds required to support contract services for various Business Units/Departments and Facilities have been included in the 2008 Approved O&M Budget.  Funds for subsequent years, where applicable, will be included in the budget submittals for those years.  Payment will be made from the Operating Fund.

“Funds required to support contract services for capital projects have been included as part of the approved capital expenditures for those projects and will be disbursed from the Capital Fund in accordance with the project’s Capital Expenditure Authorization Request.  Payment for the contracts in support of Energy Services Programs will be made from the Energy Conservation Effectuation and Construction Fund.  All costs, including Authority overheads and the cost of advancing funds, will be recovered by the Authority consistent with other Energy Services and Technology Programs.

RECOMMENDATION

“The Vice President – Engineering, the Vice President – Project Management, the Vice President – Environment, Health and Safety, the Inspector General and Vice President – Corporate Security, the Director – Energy Services, the Director – Human Capital and Development, the Manager – Power  Contracts, the Regional Manager – Northern New York, the Regional Manager – Western New York, the Regional Manager – Central New York and the Regional Manager – Southeastern New York recommend the Trustees’ approval of the award of multiyear procurement contracts to the companies listed in Exhibit ‘2g-A’ for the purposes and in the amounts set forth above.

“The Executive Vice President, General Counsel and Chief of Staff, the Executive Vice President – Chief Financial Officer, the Executive Vice President – Corporate Services and Administration, the Executive Vice President – Energy Marketing and Corporate Affairs, the Senior Vice President – Energy Services and Technology, the Senior Vice President – Marketing and Economic Development, the Senior Vice President and Chief Engineer – Power Generation and I concur in the recommendation.”

The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

RESOLVED, That pursuant to the Guidelines for Procurement Contracts adopted by the Authority, the award and funding of the multiyear procurement services contracts set forth in Exhibit “2g-A,” attached hereto, are hereby approved for the period of time indicated, in the amounts and for the purposes listed therein, as recommended in the foregoing report of the President and Chief Executive Officer; and be it further

RESOLVED, That the Chairman, the President and Chief Executive Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things, take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President, General Counsel and Chief of Staff.
 

h.             Procurement (Services) Contracts – Business Units and Facilities – Extensions, Additional Funding

                                and Increases in Compensation Ceilings

                                                                                                                                                                                               

The President and Chief Executive Officer submitted the following report:

SUMMARY

 

“The Trustees are requested to approve the continuation and funding of the procurement (services) contracts listed in Exhibit ‘2h-A’ in support of projects and programs for the Authority’s Business Units/Departments and Facilities.  The Trustees are also requested to approve increases in the compensation ceilings of the contracts with RJ Associates LLC and North American Energy Services, as well as an increase in the aggregate compensation ceiling of the contracts with LJ Gonzer Associates, Rotator Staffing Services, Inc. and SUN Technical Services, Inc.  Detailed explanations of the nature of such services, the reasons for extension, the additional funding required and the projected expiration dates are set forth below.

BACKGROUND

“Section 2879 of the Public Authorities Law and the Authority’s Guidelines for Procurement Contracts require the Trustees’ approval for procurement contracts involving services to be rendered for a period in excess of one year.

“The Authority’s Expenditure Authorization Procedures (‘EAPs’) require the Trustees’ approval when the cumulative change order value of a personal services contract exceeds the greater of $250,000 or 35% of the originally approved contract amount not to exceed $500,000, or when the cumulative change order value of a non-personal services, construction, equipment purchase or non-procurement contract exceeds the greater of $500,000 or 35% of the originally approved contract amount not to exceed $1 million.

DISCUSSION

“Although the firms identified in Exhibit ‘2h-A’ have provided effective services, the issues or projects requiring these services have not been resolved or completed, and the need exists for continuing these contracts.  The Trustees’ approval is required because the terms of these contracts exceed one year and/or because the cumulative change order limits will exceed the levels authorized by the EAPs in forthcoming change orders.  All of the subject contracts contain provisions allowing the Authority to terminate the services at the Authority’s convenience, without liability other than paying for acceptable services rendered to the effective date of termination.  These contract extensions do not obligate the Authority to a specific level of personnel resources or expenditures.

“Extension of each of the contracts identified in Exhibit ‘2h-A’ is requested for one or more of the following reasons: (1) additional time is required to complete the current contractual work scope or additional services related to the original work scope; (2) to accommodate an Authority or external regulatory agency schedule change that has delayed, reprioritized or otherwise suspended required services; (3) the original consultant is uniquely qualified to perform services and/or continue its presence and re-bidding would not be practical or (4) the contractor provides a proprietary technology or specialized equipment, at reasonably negotiated rates, that the Authority needs to continue until a permanent system is put in place.


 

Contracts in Support of Business Units/Departments and Facilities:

Energy Marketing and Corporate Affairs

Energy Services and Technology

                “The contract with Carrier Corporation (4500136990) provides for the furnishing, delivery and installation of ventilation controls at the New York City Transit Kingsbridge Bus Depot, as part of the Authority’s Energy Services Programs.  The original award, which was competitively bid, became effective on May 20, 2007 for a term of less than one year.  An extension of approximately three months is now requested in order to include additional work requested by the customer.  The current contract amount is $958,020; staff estimates that an additional $50,000 will be required for the additional work and extended term.  The Trustees are requested to approve the extension of the subject contract through August 31, 2008, as well as the additional funding requested.  All costs will be recovered by the Authority.

                “The contract with Optimal Energy, Inc. (4500138428) provides for an energy conservation assessment/study of the Authority’s Southeast New York (‘SENY’) Governmental Customers and audits of their facilities, to identify additional cost-effective load management and energy conservation measures, as part of the Authority’s Energy Services Programs (‘ESPs’).  The study examined the energy use by building type and end-use, as well as the forecast for energy consumption, and made recommendations to implement existing technologies and practices to lower end-use electricity requirements of the Authority’s customers over a ten-year period.  The original award, which was competitively bid, became effective on  April 2, 2007 for a term of less than one year.  A two-month extension is now requested in order to complete the following two tasks:  1) perform an additional model run to develop the economic potential and maximum achievable potential based on updated load data and actual energy sale information; and 2) review and analyze completed projects and assess their cost-effectiveness under a variety of approaches.  The current contract amount is $350,000; staff estimates that an additional $35,000 will be required for the extended term.  The Trustees are requested to approve the extension of the subject contract through May 31, 2008, as well as the additional funding requested.

Law Department

“At their meeting of March 28, 2006, the Trustees approved the award of a two-year sole source contract to Brian R. Meara Public Relations (4500122711), in the amount of $160,000, to provide for the continuation of public relations consulting services in connection with the Authority’s various Southeastern New York generation facilities (‘Projects’).  Mr. Meara’s knowledge of the substantive issues associated with the Projects, and of the parties involved with the projects, has proven to be and remains directly relevant and applicable, and the Authority has an ongoing need for the continuation of his services.  His seasoned community liaison skills are critical to addressing imminent community concerns, as Mr. Meara possesses the ability to work professionally and personally with the New York City Council, borough presidents, and community board leaders.  An extension of up to two years (to be issued in one-year increments) is now requested to continue Mr. Meara’s services.  The current contract amount is $160,000; staff projects that an additional $160,000 may be required for the extended term.  The Trustees are requested to approve the extension of the subject contract through March 31, 2010, as well as the additional funding requested.

Power Generation

Increases in Compensation Ceiling:

“At their meeting of March 28, 2006, the Trustees approved the award of a contract to RJ Associates LLC (‘RJA’; 4500119574), in the amount of $450,000, to provide for consulting services to perform comprehensive site-specific engineering analyses to calculate the Probable Maximum Precipitation (‘PMP’) and Probable Maximum Flood (‘PMF’) at the Blenheim-Gilboa Pumped Storage Power Project (‘B-G’), pursuant to Federal Energy Regulatory Commission (‘FERC’) requirements.  The award was made on a sole source basis, since RJA, in concert with its subcontractor Applied Weather Associates, performed the initial study (which was awarded as the result of a competitive bidding process) and developed complex, detailed and unique numerical models for calculating the PMF, specific to the B-G drainage basin.  In addition, both firms possess unique qualifications and expertise in this very specialized field and their approach and analyses have been accepted by FERC for other projects.  FERC also required that the Authority establish an independent Board of Consultants (‘BOC’), approved by FERC, to oversee, assess and direct the engineering studies conducted by the Authority’s consultant,  RJA.  Accordingly, the BOC requested that significant additional and more detailed supporting analyses be performed to justify assumptions and contemplated methodologies used in the original study/analysis.  Additionally, in January 2008, the New York City Department of Environmental Protection (‘NYC DEP’) provided the Authority with a redesign of its Gilboa Dam spillway, which is situated directly upstream of the Authority’s lower reservoir dam at B-G.  The Authority must evaluate the impact of this redesign on the Authority’s B-G Project, including possible remediation alternatives.  It is critical for the Authority to be able to respond to FERC, NYC DEP, the New York State Department of Environmental Conservation (‘NYS DEC’) and the BOC, and to identify and manage any potential negative impacts of the redesign on the Authority in a timely manner.  An additional $250,000 was subsequently authorized, in accordance with the Authority’s Guidelines for Procurement Contracts and EAPs, to meet these requirements.  A 2.8-year extension is now requested in order to address the aforementioned issues using the models RJA developed and to respond to any emergent questions or issues raised by FERC, NYC DEP, NYS DEC and/or the BOC.  The current contract amount is $700,000; staff estimates that an additional $500,000 will be required for the extended term.  The Trustees are requested to approve the extension of the subject contract through December 31, 2010, and to approve the additional funding requested, thereby increasing the compensation ceiling to $1.2 million.

“At their meeting of September 26, 2006, the Trustees approved the award of a contract to North American Energy Services (‘NAES’; 4500133069), in the amount of $2,144,167, to provide for the operation and maintenance (‘O&M’) of the New York City Department of Environmental Protection’s (‘NYC DEP’) East Delaware and Neversink hydroelectric facilities (‘Facilities’).  The original award, which was competitively bid, became effective on November 29, 2006 for an initial term of 19 months, with an option to extend for 2 additional years.  (There are provisions in the contract to extend the contract term for additional periods of time, to a maximum of nine years; requests to exercise any such further renewal options and approval of additional funding beyond the current levels will be presented to the Trustees for review and approval as needs arise.)  At their meeting of October 30, 2007, the Trustees approved an additional $3.61 million to implement capital projects necessary for the proper maintenance and operation of the Facilities.  A two-year extension is now requested to exercise the contract option for the continuation of such O&M services.  The current contract amount is $5,754,167; staff anticipates that an additional $2.4 million will be required for the extended term.  The Trustees are requested to approve the extension of the subject contract through June 30, 2010, as well as the additional funding requested, thereby increasing the compensation ceiling to $8,154,167.  All contract renewals between the Authority and NAES are subject to the Operating Agreement between the Authority and NYC DEP.  The City of New York, acting through NYC DEP, will reimburse the Authority for all direct and administrative overhead costs.

Increase in Aggregate Compensation Ceiling:            

“At their meeting of September 20, 2005, the Trustees approved the award of contracts to three firms, LJ Gonzer Associates (4500112958), Rotator Staffing Services, Inc. (4500112954) and SUN Technical Services, Inc. (4500112957), in the aggregate amount of $6 million, to provide the services of temporary engineering personnel to support the Authority’s facilities, as needed.  Services may include engineers and technicians in the following disciplines: electrical, mechanical, structural/civil, licensing, environmental, facility (heating, ventilation and air-conditioning and plumbing), fire protection, chemical, construction and construction management, cost and scheduling, instrumentation and control, estimating, quality assurance/quality control and code compliance, as well as warehousemen, engineering aides and clerical aides.  The original awards, which were competitively bid, became effective on October 9, 2005, for an initial term of three years and three months, with an option to extend for an additional year.  Such personnel have supported several long-term capital projects, including the Life Extension and Modernization (‘LEM’) and upgrade programs for the St. Lawrence/FDR, Niagara and Blenheim-Gilboa (‘B-G’) Projects.  Currently, approximately 12 such temporary engineering personnel work under these three active contracts to provide continued support for the ongoing LEM programs, and also to provide additional support, including environmental,  code compliance and construction support for the Niagara, B-G and small hydroelectric projects and the wind farms at the St. Lawrence/FDR Project.  The current contract amounts total $5,260,546 (of the $6 million previously approved by the Trustees); staff estimates that an additional aggregate $2 million will be required for the remaining year of the initial contract term, as well as for the option year (through December 2009), to support the aforementioned work, requiring the increased use of such services to meet the Authority’s needs.  It should be noted that the contractors have agreed to hold their mark-up rates, which are among the lowest in the industry, firm through 2008.  The Trustees are requested to ratify the extension of the subject contracts through December 31, 2009, as well as the additional funding requested, thereby increasing the compensation ceiling to $8 million.  Such contracts will be closely monitored for utilization levels, available approved funding and combined total expenditures.

 

Transmission

“The contract with Navigant Consulting, Inc. (4500142537) provides for the development, training and implementation of a Reliability Compliance Process (‘Process’) for the Authority.  The primary objective of the Process is to ensure that the Authority’s facilities are operated in full compliance with all applicable new and existing reliability standards, criteria and regulatory requirements mandated by the Federal Energy Regulatory Commission (‘FERC’), the North American Electric Reliability Corporation (‘NERC’) and the Northeast Power Coordinating Council (‘NPCC’).  The original award, which was competitively bid, became effective on June 15, 2007 for an initial term of one year, with an option to extend for an additional year.  A 6.5-month extension is now requested to exercise part of the option year in order to complete the original scope of work, which was delayed due to changes in approach, as well as organizational changes in the consultant’s project team.  Such extension will provide the additional time needed to complete the required tasks.  The current contract amount is $295,000; staff anticipates that no additional funding will be required for the extended term.  The Trustees are requested to approve the extension of the subject contract through December 31, 2008, with no additional funding requested.

FISCAL INFORMATION

“Funds required to support contract services for various Headquarters Office Business Units/Departments and Facilities have been included in the 2008 Approved O&M Budget.  Funds for subsequent years, where applicable, will be included in the budget submittals for those years.  Payment will be made from the Operating Fund.

“Funds required to support contract services for capital projects have been included as part of the approved capital expenditures for those projects and will be disbursed from the Capital Fund in accordance with the Project’s Capital Expenditure Authorization Request (‘CEAR’).

RECOMMENDATION

“The Vice President – Engineering, the Vice President – Project Management, the Vice President – Environment, Health and Safety, the Vice President – Business Development and Asset Management, the Executive Director – Reliability Standards and Compliance, the Director – Energy Services, the Director – Cost Control and Electric Transportation, the Regional Manager – Western New York, the Regional Manager – Central New York and the Regional Manager – Southeastern New York recommend the Trustees’ approval of the extensions, additional funding and increases in compensation ceilings of the procurement contracts discussed within the item and/or listed in Exhibit ‘2h-A.’

                “The Executive Vice President, General Counsel and Chief of Staff, the Executive Vice President – Chief Financial Officer, the Executive Vice President – Corporate Services and Administration, the Executive Vice President – Energy Marketing and Corporate Affairs, the Senior Vice President – Energy Services and Technology, the Senior Vice President and Chief Engineer – Power Generation, the Senior Vice President – Transmission and I concur in the recommendation.”


 

The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

 

RESOLVED, That pursuant to the Guidelines for Procurement Contracts adopted by the Authority, each of the contracts listed in Exhibit “2h-A,” attached hereto, is hereby approved and extended for the period of time indicated, in the amounts and for the purposes listed therein, as recommended in the foregoing report of the President and Chief Executive Officer; and be it further

RESOLVED, That pursuant to the Authority’s Expenditure Authorization Procedures, an increase in the compensation ceiling of the contracts with RJ Associates LLC and North American Energy Services, as well as an increase in the aggregate compensation ceiling of the contracts with LJ Gonzer Associates, Rotator Staffing Services, Inc. and SUN Technical Services, Inc., are hereby approved, as recommended in the foregoing report of the President and Chief Executive Officer, in the amounts and for the purposes listed below:

                                                                                            Contract Approval   Projected

                                                                                                    (Increase in                      Closing

                O&M                    Compensation Ceiling)    Date        

 

Provide for the operation
and maintenance of NYC
DEP’s East Delaware and

                                Neversink hydroelectric

                                facilities:

 

                                North American Energy

                                Services 4500133069

 

                                Previously approved amount              $5,754,167                           06/30/10

 

                                Additional amount requested                    2,400,000

 

                                REVISED COMP. CEILING           $ 8,154,167

 

 


 

 

                                                                                            Contract Approval   Projected

                                                                                                    (Increase in                      Closing

                                 O&M and Capital                           Compensation Ceiling)            Date        

 

                                Provide for the services of

temporary engineering

personnel to support the

Authority’s facilities,

as needed:

 

                                LJ Gonzer Associates

                                4500112958

 

                                Rotator Staffing Services, Inc.

                                4500112954

 

                                SUN Technical Services, Inc.

                                4500112957

 

                                Previously approved amount                  $6,000,000                       12/31/09

 

                                Additional amount requested                  2,000,000

 

                                REVISED COMP. CEILING      $8,000,000

 

                               

O&M

 

Provide for Probable Maximum
Flood studies for B-G and related

                                analyses, as may be requested by

                                FERC, NYC DEP, NYS DEC or

                                Board of Consultants:

 

                                RJ Associates LLC

                                4500119574

 

                                Previously approved amount             $  450,000                             12/31/10

 

                                Additional funding authorized

                                per EAPs                                                       250,000

 

                                Additional amount requested                    500,000

 

                                REVISED COMP. CEILING         $1,200,000

 

 

AND BE IT FURTHER RESOLVED, That the Chairman, the President and Chief Executive Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things, take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President, General Counsel and Chief of Staff.

3.                   Financial  Reports for the Two Months Ended February 29, 2008

Mr. Arnold Bellis presented the highlights of the financial reports to the Trustees.


 

4.                                                 Report from the President and Chief Executive Officer

                President Roger Kelley mentioned the extraordinary events of the past weeks resulting in a change of leadership in the State.  He said that the Authority had worked closely with Governor Paterson in his former role, supporting his ambitious goals for enhancing clean energy supplies and energy efficiency.  President Kelley said that the Authority has been in touch with the Governor’s Office since Governor Paterson’s swearing-in and has conveyed the message that the management and staff of the Authority remain dedicated to carrying out the essential work we undertake every day operating hydroelectric and other clean generating facilities and transmission lines and in providing other key energy services.  President Kelley added that he anticipated that the Authority’s relationship with the Governor’s Office would remain unchanged in the near term and that he expected the Governor to continue many of his predecessor’s initiatives. 

President Kelley reported on the following issues:

Unaccounted for Energy (“UFE”) Charges:  The January 2008 power bills for two of the Authority’s full-requirements customers, the villages of Lake Placid and Tupper Lake, contained extraordinarily large UFE charges, which are imposed through the billing processes of the New York Independent System Operator (“NYISO”).  Lake Placid’s bill increased by approximately $1.2 million, of which $262,000 was for UFE and the balance for other NYISO charges.  Tupper Lake’s bill was nearly doubled by UFE and other NYISO charges.  With the Chairman’s consent, the Authority agreed to suspend the UFE charges pending an investigation into the cause and allow the two customers to spread the NYISO charges over several months, thus smoothing out the spikes.  The biggest concern with regard to the UFE is that for Lake Placid and Tupper Lake the loss factor is reportedly 28.7% -- the average for a system is about 3%.  Authority staff is involved in discussions with NYISO, the Public Service Commission and National Grid to address the UFE issue, and President Kelley will report back next month on the progress of those discussions.

RFP#5:  Progress is continuing on RFP#5, which was issued in November 2007 to seek bids for up to an additional 500 MW of in-city (NYISO Zone J) capacity to meet the ongoing locational capacity requirements of the Authority’s New York City Governmental Customer (“Governmental Customer”) loads.  The Authority’s team, along with representatives of the Governmental Customers, continues to review and evaluate the bids received in response to the RFP and remains on track to have their analysis complete for a recommendation to the Trustees at next month’s meeting.

15X15 Initiative:  Contracts authorized by the Trustees at the February meeting for energy audit services for the Governmental Customers program and the Statewide Energy Services Program have been executed and the work is proceeding.

Clean Energy Collaborative and Executive Order 111 Meeting:  President Kelley will be attending this meeting in Albany on Friday, March 28th

State Budget:  The Authority has not heard much more about the budget than what has been reported in the media.  Last week, the Authority forwarded the remaining $30 million voluntary contribution payment to the State, bringing the total contribution paid for the 2007-08 State Fiscal Year to $230 million.

Recent Federal Energy Regulatory Commission (“FERC”) Rulings:  During the last several weeks, FERC issued rulings regarding interconnection and deliverability that affects the Authority.  Once Authority staff has completed their review of these rulings, the Trustees will be briefed on them at an upcoming meeting. 

 


 

5a.           Allocation of 250 kW of Hydropower  

 

The President and Chief Executive Officer submitted the following report:

 

SUMMARY

 

                “The Trustees are requested to approve an allocation of available Replacement Power (‘RP’) totaling 250 kW to Time Release Sciences, Inc.  In addition, the Trustees are requested to adjust an allocation previously awarded to Time Release Sciences, Inc., as discussed below.

 

BACKGROUND

 

“Under Section 1005(13) of the Power Authority Act, as amended by Chapter 313 of the Laws of 2005, the Authority may contract to allocate or reallocate directly, or by sale for resale, 250 MW of firm hydroelectric power as Expansion Power (‘EP’) and up to 445 MW of RP to businesses in the State located within 30 miles of the Niagara Power Project, provided that the amount of power allocated to businesses in Chautauqua County on January 1, 1987 shall continue to be allocated in such county. 

 

“Each application for an allocation of EP or RP must be evaluated under criteria that includes, but need not be limited to, those set forth in Public Authorities Law Section 1005(13) (a), which sets forth general eligibility requirements.

 

“Among the factors to be considered when evaluating a request for an allocation of hydropower are the number of jobs created as a result of a power allocation; the business’ long-term commitment to the region as evidenced by the current and/or planned capital investment in the business’ facilities in the region; the ratio of the number of jobs to be created to the amount of power requested; the types of jobs created, as measured by wage and benefit levels, security and stability of employment and the type and cost of buildings, equipment and facilities to be constructed, enlarged or installed.

 

“On October 22, 2003, the Authority, National Grid, Empire State Development Corporation and the Buffalo Niagara Enterprise signed a Memorandum of Understanding (‘MOU’) that outlines the process to coordinate marketing and allocating Authority hydropower.  The entities noted above formed the Western New York Advisory Group (‘Advisory Group’) with the intent of better using the value of this resource to improve the economy of Western New York and the State of New York.  Nothing in the MOU changes the legal requirements applicable to the allocation of hydropower. 

 

DISCUSSION

 

                “At their meeting of April 27, 2004 the Trustees approved a 600 kW allocation of Replacement Power to Time Release Sciences, Inc. in return for a commitment to add 206 jobs to a base of 108 positions.  After the allocation was awarded, the company redesigned the process used to manufacture its product.  As a result, the creation of jobs did not materialize as promised.  Staff is requesting that the Trustees reduce the allocation and job commitment to 200 kW and 65 positions, respectively.

               

                “Staff recommends and the Advisory Group supports the available power being allocated to Time Release Sciences, Inc as set forth in Exhibit ‘5a-A.’  The Exhibit shows, among other things, the amount of power requested, the recommended allocation and additional employment and capital investment information.  This project will help maintain and diversify the industrial base of Western New York and provide new employment opportunities.  It is projected to result in the creation of 5 jobs.   

 

RECOMMENDATION

 

“The Director – Business Power Allocations, Compliance and Municipal and Cooperative Marketing recommends that the Trustees approve an allocation of 250 kW of hydropower to Time Release Sciences, Inc. and that the Trustees reduce the allocation and job commitment for a prior allocation to Time Release Sciences, Inc. to 200 kW and 65 positions, respectively.

“The Executive Vice President, General Counsel and Chief of Staff, the Executive Vice President – Energy Marketing and Corporate Affairs, the Senior Vice President – Marketing and Economic Development and I concur in the recommendation.”

 

The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

 

                RESOLVED, That the allocation of 250 kW of Replacement Power, as detailed in Exhibit “5a-A,” be, and hereby is, approved on the terms set forth in the foregoing report of the President and Chief Executive Officer; and be it further

 

                RESOLVED, That the allocation and job commitment for an allocation previously awarded to Time Release Sciences, Inc. be reduced to 200 kW and 65 positions, respectively; and be it further

 

                RESOLVED, That the Chairman, the President and Chief Executive Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things, take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President, General Counsel and Chief of Staff.


 

 


 

5.                   St. Lawrence/FDR Power Project – Switchyard Circuit Breaker Replacement Project Capital Expenditure Authorization                         

 

The President and Chief Executive Officer submitted the following report:

 

SUMMARY

 

                “The Trustees are requested to authorize capital expenditures of $11.6 million for replacing 13 circuit breakers at the St. Lawrence/FDR Power Project (‘STL’) and Willis Substation (the ‘St. Lawrence/FDR Power Project Switchyard Circuit Breaker Replacement Project’ or ‘Project’) over a four-year period.

 

BACKGROUND

 

“Section 2879 of the Public Authorities Law and the Authority’s Guidelines for Procurement Contracts require the Trustees’ approval for procurement contracts involving services to be rendered for a period in excess of one year.

“The Authority’s Expenditure Authorization Procedures (‘EAPs’) require the Trustees’ approval for the award of non-personal services, construction or equipment purchase contracts in excess of  $3 million, as well as personal services contracts in excess of $1 million if low bidder, or $500,000 if sole source or non-low bidder.

“In a number of operations, the ITE-type 230 KV circuit breakers in the St. Lawrence switchyard failed to operate properly, which caused backup protection circuits and additional circuit breakers to initiate.  These events reduced system reliability and delayed system restoration.

 

“Recent inspections and further analysis have determined that 13 of the existing ITE-type 230 KV circuit breakers are susceptible to mis-operations during short current interruptions when clearing faults.  Consequently, it is recommended that these circuit breakers be replaced with modern, state-of-the-art SF6 gas-type circuit breakers in use at other Authority facilities.

 

“In order to expedite and coordinate the circuit breaker replacement work over a four-year period, Project Management has been working with Project and Engineering staff to produce construction drawings and specifications.  The Project includes replacing 12 ITE-type 230 KV breakers in the STL switchyard and 1 ITE-type 230 KV breaker at the Willis Substation. 

 

“Due to the fabrication and lead time needed for the circuit breakers, the Authority plans to award the contract for all 13 SF6-type circuit breakers this year; 1 circuit breaker will be released, delivered and installed this year.  Subsequent releases will be on a yearly basis, with 4 circuit breakers scheduled for release and installation each year.  Proposals were solicited for these new circuit breakers and their installation through the competitive bid process.  The required control, power and fiber optic cables will also be procured in 2008.   

 

“Once the first circuit breaker has been installed, the Project team will compile ‘lessons learned’ and modify the design documents for the next set of construction documents before proceeding with installation of the remaining 12 circuit breakers.  The overall project schedule will be April 2008 through December 2011.

 

               


 

“The Trustees are requested to approve the overall expenditure for this multiyear project, as summarized below:

 

Description

Total

Engineering

$     900,000

Construction Management

       400,000

Procurement

    2,600,000

Construction

    6,700,000

Authority Direct/Indirect

    1,000,000

Total

$11,600,000

 

“Funds for installing the first circuit breaker have been included in the 2008 approved capital budget. 

 

FISCAL INFORMATION

 

“Payments will be made from the Capital Fund.

 

RECOMMENDATION

 

“The Vice President – Project Management, the Vice President – Procurement and Real Estate, the Vice President – Engineering, the Regional Manager – Northern New York and the Project Manager recommend that the Trustees authorize capital expenditures of $11.6 million in accordance with the Authority’s Expenditure Authorization Procedures for the St. Lawrence/FDR Power Project Switchyard Circuit Breaker Replacement Project.

 

“The Executive Vice President, General Counsel and Chief of Staff, the Executive Vice President and Chief Financial Officer, the Executive Vice President – Corporate Services and Administration, the Senior Vice President and Chief Engineer – Power Generation, the Vice President – Controller and I concur in the recommendation.” 

 

                Mr. Michael Mitchell provided an overview of staff’s recommendations to the Trustees.  In response to questions from Trustee Elise Cusack and Chairman McCullough, Mr. Mitchell said the previous circuit breakers had been in place for 35 years and that the expected life of the replacements was 35 years or longer.  Responding to a question from Trustee James Besha, Mr. Mitchell said that switchyard operations should be unaffected for a period of time if some of the circuit breakers failed since the configuration of the system is a “breaker-and-a-half” arrangement.

The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

 

RESOLVED, That in accordance with the Authority’s Guidelines for Procurement Contracts and Expenditure Authorization Procedures, capital expenditures are hereby approved, as recommended in the foregoing report to the President and Chief Executive Officer, in the amount of $11.6 million for the St. Lawrence/FDR Power Project Switchyard Circuit Breaker Replacement Project; and be it further

                                                                                                                 

RESOLVED, That the Chairman, the President and Chief Executive Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things and take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President, General Counsel and Chief of Staff.


 

 

6.                   Procurement (Services) Contracts – Emergency Repair Services – Blenheim-Gilboa 345 kV High-Pressure Fluid-Filled Cable Replacement

 

The President and Chief Executive Officer submitted the following report:

 

SUMMARY

 

                “The Trustees are requested to ratify the President and Chief Executive Officer's February 25, 2008 interim approval to increase the compensation ceiling limit of an existing contract with USi of Armonk, New York to allow for the emergency replacement of the Units 1 and 2 power feeder cables at the Blenheim-Gilboa Pumped Storage Plant (‘B-G’).

 

BACKGROUND

 

“Section 2879 of the Public Authorities Law and the Authority’s Guidelines for Procurement Contracts require the Trustees’ approval for procurement contracts involving services to be rendered for a period in excess of one year.

“The Authority’s Expenditure Authorization Procedures (‘EAPs’) require the Trustees’ approval when the cumulative change order value of a personal services contract exceeds the greater of $250,000 or 35% of the originally approved contract amount not to exceed $500,000, or when the cumulative change order value of a non-personal services, construction, equipment purchase or non-procurement contract exceeds the greater of $500,000 or 35% of the originally approved contract amount not to exceed $1 million.

“On March 27, 2007, the Trustees approved three contracts to provide emergency repair services for the Authority’s land-based high-pressure fluid-filled (‘HPFF’) and solid dielectric transmission systems up to 345 kV, installed in various locations throughout New York State, on an ‘as-needed’ basis.  These contracts enable the Authority to respond, in a timely manner, to failures of critical land-cable transmission facilities, thereby minimizing system interruptions and associated costs and precluding the need for emergency sole-source awards.

 

“The contracts were awarded to Prysmian Cables & Systems of South Plainfield, New Jersey, USi of Armonk, New York and Infrasource Power, LLC DBA EHV Power Corporation of Pompey, New York for a period of up to four years and for a combined total amount of $1 million for the term of the three contracts.  It was intended that one of the companies would be selected to implement future repairs contingent on the nature of the repairs.

 

“At approximately 4:00 p.m. on February 6, 2008, a B-phase cable ground fault occurred on the B-G Unit 2, 345 kV HPFF pipe-type output feeder, which spans a distance of approximately 1,000 linear feet in an underground tunnel between the transformer and the switching facilities.

 

“After this failure, USi was contacted to make the repairs.  USi was selected for this task because of its knowledge of this type of system and its previous experience at B-G.

 

DISCUSSION

 

“Based on a review of the failure data and previous information gathered regarding the feeder circuits, there is sufficient information to conclude that a systemic failure mode is occurring in the B-G 345 kV feeder circuits, thus resulting in a loss of reliability.  Engineering has concluded that future failures are almost a certainty given the technical evidence.  Accordingly, complete replacement is being recommended to provide a lasting solution.

 

“A sectionalized circuit repair, as was done in the past, was considered but eliminated because of the time associated with the repair and the concern that it would not address the inherent problem.  As a result, Engineering endorsed the installation of a new three-phase circuit, in its entirety, from the transformer yard terminator to the switching yard terminator.  Additionally, it appears that all four circuits at B-G are prone to the same failure mode and Engineering has recommended that Units 1, 3, and 4 345 kV feeder circuits also be replaced.

“USi has mobilized at the site and, along with a subcontractor, has begun removal of the existing cable and installation of a new 345 kV circuit.  It is expected that this work will take approximately four weeks to complete, at which point Unit 2 will return to service providing power to the grid.

 

“Concurrently, Unit 1 is offline for life extension and modernization work.  This outage is expected to last until June 1, 2008, at which point Unit 1 will be returned to service.  The replacement of the Unit 1 345 kV circuit was not a planned activity.  However, given the potential for failure, Authority staff recommends taking advantage of this time period before Unit 1 returns to service to replace the entire circuit and ensure reliability, particularly during the summer peak-load period.  It is estimated that the potential revenue loss would be approximately $690,000 if B-G Unit 1 exhibits a failure and is not available during a five-week summer period.

 

“The scope of work envisioned is beyond the contract awarded to USi for emergency repair services.  As a result, costs associated with cable replacement may be above the $1 million contract ceiling previously approved by the Trustees.

 

“It is recommended that the compensation ceiling be increased to $3 million to allow USi to properly replace the 345 kV circuits associated with Units 1 and 2 at B-G.

 

“The intent is also to replace the feeder circuits on Units 3 and 4 at a later time.  These installation activities will be competitively bid.  A Capital Estimate Authorization Request summarizing all costs to date (Units 1 and 2) and any future costs (Units 3 and 4) will be prepared and presented to the Trustees in conjunction with another item later this year, at which point the Trustees will be asked to approve the accumulated costs associated with these current repairs together with the costs associated with the future replacement of Units 3 and 4.

 

FISCAL INFORMATION

 

                “Payments will be made from the Authority’s Capital Fund.

 

RECOMMENDATION

 

“The Senior Vice President and Chief Engineer – Power Generation, the Vice President – Project Management, the Vice President – Engineering, the Vice President – Procurement and Real Estate and the Regional Manager – Central New York recommend that the Trustees increase the USi contract compensation ceiling limit to $3 million.

 

“The Executive Vice President, General Counsel and Chief of Staff, the Executive Vice President and Chief Financial Officer, the Executive Vice President – Corporate Services and Administration, the Vice President – Controller and I concur in the recommendation.”

 

                Mr. Ricardo Da Silva provided an overview of staff’s recommendations to the Trustees.  In response to a question from Chairman McCullough, Mr. Da Silva said that this increased compensation ceiling had not been included in the Authority’s 2008 budget.

                The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

 

                RESOLVED, That pursuant to the Guidelines for Procurement Contracts and the Expenditure Authorization Procedures adopted by the Authority, the contract compensation ceiling for USi be increased to $3 million as recommended in the foregoing report of the President and Chief Executive Officer in the amounts and for the purposes listed below:

 


 

Purpose:    Provide for emergency replacement of the

    Units 1 and 2 power feeder cables at the

    Blenheim-Gilboa Pumped Storage Plant

 

Contractor:  USi (Contract No. 4600001821)

 

 

               

                                                            Capital                                       Contract Approval

               

                Contract Award                                           $1,000,000

 

                Change Order                                              $2,000,000

 

Revised Contract

                Compensation Ceiling                                $3,000,000

 

AND BE IT FURTHER RESOLVED, That the Chairman, the President and Chief Executive Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things and take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President, General Counsel and Chief of Staff.

 


 

7.                   St. Lawrence/FDR Power Project – Local Community Project Funding

 

The President and Chief Executive Officer submitted the following report:

 

SUMMARY

 

“The Trustees are requested to approve a program for the payment of funds for public projects proposed by the towns of Lisbon, Waddington, Louisville and Massena and the Village of Waddington in connection with settlement agreements related to the relicensing of the St. Lawrence/FDR Power Project (‘Project’).  The level of funding provided for projects within a municipality would approximate that collected from the sale of surplus lands in that municipality.

 

BACKGROUND

 

            “At their meeting of October 30, 2001, the Trustees approved the filing of the application to the Federal Energy Regulatory Commission (‘FERC’) for a new license for the Project.  Based on the Trustees’ actions, the Authority entered into settlement agreements with local governments, federal and State resource agencies and several non-governmental entities.  On February 6, 2003, the Authority filed an Offer of Settlement with FERC, which incorporated these agreements, including the Relicensing Settlement Agreement (‘RSA’) between the Authority and the towns of Lisbon, Waddington, Louisville and Massena; villages of Massena and Waddington, St. Lawrence County and three school districts (collectively, the ‘Local Government Task Force’).  Pursuant to the RSA, the Authority agreed to transfer to the four named towns, the Village of Waddington and several hundred adjoining landowners, for nominal fees, a total of approximately 600 acres of land formerly within the Boundary of the Project.  Approximately 350 acres will be transferred to the four Towns and one Village and approximately 250 acres will be transferred to the several hundred adjoining landowners.  By order issued October 23, 2003, FERC approved the settlement agreements and issued the Authority a new 50-year license for the Project. 

 

“The New York State Office of the Attorney General (‘OAG’) subsequently reviewed the land transfer program and indicated a New York State constitutional infirmity to the effect that State lands to be conveyed to private persons must be conveyed for the fair market value and not merely a nominal sum.  The OAG advised that land conveyances to the municipalities for nominal fees could proceed.

 

“Pursuant to the OAG determination, these lands have been independently appraised and the sale of the lands to adjoining landowners for fair market value is well under way. 

 

DISCUSSION

 

“The determination by the OAG that lands be conveyed at fair market value created an inconsistency with the RSA.  Many landowners stated that the Authority was breaching the RSA and negotiations should be reopened.  After several public meetings with Authority and OAG staff, representatives of the Local Government Task Force and most adjoining landowners accepted the fact that the Authority has to receive fair market value for the parcels to be conveyed to adjoining landowners.  To address these circumstances, the Authority proposed that funds be made available to the municipalities for community support for the purpose of funding municipal projects serving a public purpose.  The level of funding provided for projects within a municipality would approximate that collected for land sold in that municipality.  This approach is acceptable to the municipalities and is consistent with the RSA.  The OAG indicated that it did not object to this concept.  Since these payments relate to Project relicensing, the Authority’s corporate policy on Contributions and Sponsorships is not applicable. 

 

“The conceptual elements of this community support program were previously discussed with the Trustees.  Now the Authority has received a request from the Town of Lisbon for funds to support the reconstruction of a bathhouse at the Town Beach.  With the receipt of this first request, the Trustees are requested to formally approve this program.  As with the reconstruction of the Town Beach bathhouse, future individual projects funded by this program will be reviewed for compliance with the State Environmental Quality Review Act.

 

FISCAL INFORMATION

 

                 “Funds would be provided to the municipalities for community projects serving a public purpose in amounts proportional to the revenues collected in each municipality.  Approximately $1.4 million could be collected if all of the surplus lands were purchased by the adjoining owners at the current appraised value.  To date, the Authority has received approximately $177,000.

 

RECOMMENDATION

 

“The Executive Director – Licensing, Implementation and Compliance recommends that the Trustees approve a program for the disbursement of funds received from the sale of surplus lands within the towns of Lisbon, Waddington, Louisville and Massena and the Village of Waddington to these municipalities for municipal projects providing public benefit.

 

“The Executive Vice President, General Counsel and Chief of Staff, the Executive Vice President – Energy Marketing and Corporate Affairs, the Executive Vice President – Corporate Services and Administration, the Vice President – Intergovernmental and Corporate Affairs and I concur in the recommendation.”

 

                Mr. John Suloway provided an overview of staff’s recommendations to the Trustees.  In response to a question from Trustee Besha, Mr. Suloway said that this funding would be issued on a project-by-project basis following a resolution by the legislative body for the particular municipality seeking funding that the money being requested will be used for projects to benefit the public.  Responding to a question from Chairman McCullough, Mr. Suloway said that this funding had not been anticipated as part of the relicensing process.  Mr. Thomas Kelly said that the State Constitution requires that when State entities are selling land to private landowners, they receive fair market value for the land; however, land can be sold to municipalities at nominal value.  In response to another question from Trustee Besha, Mr. Suloway said that the money from these land sales would be coming in over the next several years.  

The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

 

                RESOLVED, That the President and Chief Executive Officer or his designee be, and hereby is, authorized to approve the payment of funds from the sale of certain lands to the towns of Lisbon, Waddington, Louisville and Massena and the Village of Waddington on the terms set forth in the foregoing report of the President and Chief Executive Officer; and be it further

 

                RESOLVED, That the President and Chief Executive Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things, take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President, General Counsel and Chief of Staff.


 

8.                   Tri-Lakes Reliability Project Supplemental Final  Environmental Impact Statement Adoption of Findings

 

The President and Chief Executive Officer submitted the following report:

 

SUMMARY

 

“The Trustees are requested to:  (1) adopt the Certification and Statement of Findings (‘Findings’) set forth in Exhibit ‘8-A’ and (2) approve the actions adopted in the Findings.  The Findings are based on the information collected and analyses performed as reflected in the Supplemental Final Environmental Impact Statement (‘SFEIS’) prepared for the Tri-Lakes Reliability Project and accepted on March 3, 2008.  The action that is the subject of these Findings is the construction of a 3.4-mile Route 56 alternate route (‘Route 56 Alternative’) instead of the original Adirondack Park Agency-permitted route, which is a 6.9-mile section of the transmission line around the Raquette Boreal State Forest Preserve (‘Forest Preserve’). 

 

BACKGROUND

 

                “At their meeting of October 26, 2004, the Trustees authorized a settlement agreement among the Authority, National Grid and the villages of Tupper Lake and Lake Placid (‘Agreement’), which was ultimately approved by the Federal Energy Regulatory Commission (‘FERC’).  The Agreement, in part, provides for two independent projects, the construction of substation equipment (the Static Var Compensator ‘SVC’ Project) to provide the Adirondack transmission system with better voltage regulation and a new transmission line and related substation/regulator facilities (the ‘Tri-Lakes Reliability Project’ or ‘Project’) to alleviate serious transmission deficiencies and enhance reliability in the Lake Placid, Tupper Lake and Saranac Lake area of the Adirondacks.  As part of the Agreement, the Authority agreed to finance the two projects and license the transmission line and related facilities.  National Grid agreed to design, construct, operate and maintain the transmission line and to license, design, construct and operate and maintain the SVCs.  The transmission line and SVCs will be owned by the Authority until January 31, 2012, at which time the Project will be conveyed to National Grid and National Grid will pay the Authority the Project Cost.

 

“The transmission line consists of approximately 26 miles of a new 46 kilovolt (‘kV’) line sharing wood pole structures and right-of-way (‘ROW’) with existing distribution lines in some locations, new 46 kV lines on wood poles within new ROW in others, a new 115/46 kV substation facility in the Town of Parishville and a new regulator station in the vicinity of the existing Piercefield Substation in the Town of Piercefield.

 

“In May 2005, APA, the New York State Department of Environmental Conservation (‘NYSDEC’) and the New York State Department of Transportation (‘NYSDOT’) agreed that the Authority would be Lead Agency, pursuant to Article 8 of the Environmental Conservation Law, the State Environmental Quality Review Act (‘SEQRA’), for the Project.  The Authority’s implementing regulations for SEQRA are found at 21 NYCRR Part 461.

 

                “On December 12, 2005, the Authority issued a Positive Declaration for the Project that proposed to install a new 46 kV transmission line to upgrade the reliability of the electric system in the Tri-Lakes Region.  Subsequently, a Draft Environmental Impact Statement (‘DEIS’) was developed, public hearings were held and a Final Environmental Impact Statement (‘FEIS’) was issued. 

 

“On February 28, 2006, the Authority, as lead agency, adopted a Findings Statement that accepted the mitigation measures outlined in the FEIS and approved the proposed action.  On March 13, 2006, APA issued its order approving the Project.  This approval plus those issued by the U. S. Army Corps of Engineers on July 23, 2007 and the State Historic Preservation Office on July 6, 2007 completed all the necessary regulatory approvals to start construction on the new 46 kV transmission line along the route described in the FEIS. 

 

“In April and May 2006, representatives of several environmental groups, policymakers and other opinion leaders requested that the Authority and National Grid consider modifying the permitted route so that it does not bypass the Forest Preserve but remains adjacent to the State Highway 56 ROW that crosses Forest Preserve lands, which requires an amendment to Article XIV of the New York State Constitution.  After meeting with these various interest groups, it was agreed that the Authority, National Grid and the interest groups would work together to gain a Constitutional Amendment permitting the exchange of certain lands from within and without the Forest Preserve.  In the meantime, to maintain the FERC-approved project completion date, staff from the Authority and National Grid negotiated an agreement with NYSDEC, which has jurisdiction over the Forest Preserve, for the construction of the Route 56 Alternative to allow the construction of the line, in part, on Forest Preserve lands in anticipation of the passage of a Constitutional Amendment.  The agreement was executed on February 7, 2008.

 

“On September 10, 2007, construction of the 46 kV line began and has been divided into three discrete segments:  Northern, Southern and Central. 

 

·                          Northern Segment:  The entire 8.5 miles of ROW of the Northern Segment of the route has been cleared and all wood pole structures have been installed. 

 

·                          Southern Segment:  Work on the 11.5-mile Southern Segment of the facility began during the last week of January 2008.  Approximately 4.5 miles of the Southern Segment ROW has been cleared and access has been established.  Pole sleeve installation, wood pole delivery and on-site framing work are ongoing.

 

·                          Central Segment: Construction on the Central Segment of the line has been postponed in response to a request from various environmental groups to amend the route from around the Forest Preserve to the Route 56 Alternative. 

               

“Authority and National Grid staff and their consultants developed and evaluated the Route 56 Alternative considering environmental impacts, engineering, constructability and cost.  Based on the information collected and analyzed, the SFEIS and application to APA were prepared as summarized in the following Discussion section.

 

“As the Lead Agency, the Authority is responsible for preparing these Findings.  Therefore, the Findings are prepared pursuant to Part 461 and, in particular, Section 461.13.  Section 461.13 requires that before actions that are the subject of an Environmental Impact Statement (‘EIS’) can be approved by the Trustees, they must:  (1) consider the EIS, (2) make the Findings specified in Exhibit ‘8-A’ and (3) prepare a written statement describing the basis for their Findings.

 

DISCUSSION

 

“The alternative route to the permitted 6.9-mile section of the transmission line around the Forest Preserve was evaluated by Authority and National Grid staff and their consultants.  A supplemental Draft Environmental Impact Statement (‘SDEIS’), which evaluated the feasibility of re-routing a short segment of the transmission line and discussed the environmental impacts of the proposed alternate route, was prepared.  The proposed alternate is to install the transmission line along and adjacent to the New York State Route 56 ROW for a distance of 3.4 miles rather than build the previously approved 6.9-mile cross-country segment around the Forest Preserve.  The route along Route 56 impacts adjacent Forest Preserve lands for a distance of 1.46 miles. 

 

“The Authority issued a Positive Declaration for the proposed Route 56 Alternative and a Notice of Completion of the SDEIS on January 3, 2008.  The public comment period on the SDEIS ended on February 4, 2008.  The SFEIS addresses the public comments received on the SDEIS and modifies the SDEIS to incorporate new or revised information about the Route 56 Alternative.

 

“After review of the public comments, a SFEIS was accepted on March 3, 2008 and filed with APA and NYSDEC on March 5, 2008.  It is anticipated that APA’s Board will issue its order at either its April or May meeting.  To enable APA Board action, APA staff has indicated to Authority staff that the Board wants the Authority’s Trustees to adopt a Statement of Findings based on the SFEIS, certify these findings and approve the actions adopted in the certificate of findings.

 

“The Findings in Exhibit ‘8-A’ are based on the evaluation of the actions as reflected in the SFEIS.  The following facts and conclusions from the SFEIS support these Findings.

 

“Project operation is anticipated to have a beneficial effect on the Tri-Lakes Region.  The Project will enhance the reliability of the power delivery system in the villages of Tupper Lake and Lake Placid and the Region and should significantly reduce the number of power outages in the area.  Benefits of increased reliability include fewer outages during the winter when the loss of heat can create significant public safety concerns, fewer lost days of school and fewer losses to area businesses from closure due to outages.  The Route 56 Alternative proposed is shorter and has potentially fewer environmental impacts.  In the event the Route 56 Alternative is not approved by APA, the Authority and National Grid will construct and operate the Project as approved by APA in March 2006.  

 

“The SFEIS and Appendices demonstrate that this Project will be capable of meeting all federal and State regulatory standards and criteria.  Extensive efforts have been made to avoid negative impacts on environmental, agricultural, archaeological and historical resources; rare, threatened and endangered species; wetlands and water resources land use and visual resources.  In cases where there are effects, mitigation measures have been identified and will be implemented so that the Project has the least possible negative impacts on the environment.

 

FISCAL INFORMATION

 

“Adoption of the Findings has no fiscal impact on the Authority.

 

RECOMMENDATION

 

                “The Vice President, Environment, Health and Safety and the Executive Director – Licensing, Implementation and Compliance recommend that the Trustees adopt the Certification and Statement of Findings in Exhibit ‘8-A’ and approve the actions adopted in the Statement of Findings, consistent with the foregoing and the attached resolution.

 

                “The Executive Vice President, General Counsel and Chief of Staff, the Executive Vice President and Chief Financial Officer, the Executive Vice President – Energy Marketing and Corporate Affairs and I concur in the recommendation.”

 

                Mr. Suloway presented an overview of staff’s recommendations to the Trustees.  In response to a question from Trustee Besha regarding what happens in the event attaining the constitutional Amendment is unsuccessful, Mr. Suloway said that the New York State Department of Environmental Conservation (“NYSDEC”) expects the Authority to pursue a good-faith effort to gain passage of the amendment, which would permit the transmission line to cross over State Forest Preserve lands near an existing right-of-way.  Mr. Kelly added that the Authority is working with NYSDEC on such an amendment and in the event the effort is unsuccessful, a legal basis exists for the facilities to remain.  Chairman McCullough said that the Authority is making a good-faith effort to have such a constitutional amendment enacted, adding that the Tri-Lakes Reliability Project would be providing a very important redundant source of power to the North Country.

                The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

 

RESOLVED, That the Trustees adopt the Statement of Findings set forth in Exhibit “8-A” as supported by the Supplemental Final Environmental Impact Statement prepared for the Tri-Lakes Reliability Project as referenced in the foregoing report of the President and Chief Executive Officer; and be it further

 

RESOLVED, That the Vice President – Environment, Health and Safety be directed to sign, in the name of the Trustees, the Certification of Findings (Exhibit “8-A”) to Approve/Fund/Undertake the actions that were the subject of the Supplemental Final Environmental Impact Statement and that he cause that Certification to be served on all involved agencies; and be it further

 

RESOLVED, That the Trustees approve the actions adopted in the Certification and Statement of Findings, which were the subject of the Supplemental Final Environmental Impact Statement; and be it further

 

RESOLVED, That the Chairman, the President and Chief Executive Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things and take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President, General Counsel and Chief of Staff.


 

9.                   Annual Review and Approval of  Certain Authority Policies 

 

The President and Chief Executive Officer submitted the following report:

 

SUMMARY

 

                “The Trustees are requested to approve certain Authority policies as required by Section 2824 of the Public Authorities Law and Section 2 of Article II of the Authority’s By-laws.

 

BACKGROUND AND DISCUSSION

 

                “Section 2824 of the Public Authorities Law requires the Authority’s Trustees to, among other things, establish policies regarding the payment of salary, compensation and reimbursements to, and establish rules for the time and attendance of, the chief executive and senior management, and Section 2 of the Authority’s By-laws requires the Authority’s Trustees to approve annually the salary, compensation, and benefits as well as time and attendance policies of the chief executive and all senior management.

 

                “The Authority’s policies relating to salary, compensation, benefits and time and attendance of its employees, inclusive of the chief executive and all senior management are attached as Exhibits ‘9-A’ through ‘9-I’ and respectively entitled:

 

A.                  Salary Administration Policy  (EP 2.1), last revised: 1/25/08;

B.                   Variable Pay Plan (EP 2.6) , last revised: 1/2/08;

C.                   Employee Benefits Eligibility (EP 3.1), last revised: 2/18/04;

D.                  Reimbursement of Employee Meal Costs (CAP 1.5), last revised 4/06/07;

E.                   Petty Cash (CAP 4.1), last revised: 6/15/06;

F.                   Attendance & Flexible Hours (EP 4.6), last revised: 8/22/03;

G.                   Vacation (EP 3.2), last revised: 1/1/08;

H.                  Sick Time and FMLA (EP 3.3), last revised: 7/18/02; and

I.                     Travel (CP 2-1), last revised: 11/15/06.

 

RECOMMENDATION

 

                “It is recommended that the Trustees approve the Authority’s policies related to salary, compensation, benefits and time and attendance which are applicable to all Authority employees, including the chief executive and senior management personnel.

 

                “I concur in the recommendation.”

 

                Ms. Anne Cahill presented the highlights of staff’s recommendations to the Trustees.  Following a discussion initiated by Trustee Besha, the item was tabled until later in the meeting.

The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

 

                RESOLVED, That pursuant to Section 2824 of the Public Authorities Law and Section 2 of Article II of the Authority’s By-laws, the below listed policies of the Authority relating to salary, compensation, benefits and time and attendance of its employees, including the chief executive and senior management, are hereby approved:

 

                A.            Salary Administration Policy (EP 2.1), last revised: 1/25/08;

                B.            Variable Pay Plan (EP 2.6), last revised: 1/2/08;

                C.            Employee Benefits Eligibility (EP 3.1), last revised: 2/18/04;

                D.            Reimbursement of Employee Meal Costs (CAP 1.5), last revised 4/6/07;

                E.             Petty Cash (CAP 4.1), last revised: 6/15/06;

                F.             Attendance & Flexible Hours (EP 4.6), last revised: 8/22/03;

                G.            Vacation (EP 3.2), last revised: 1/1/08;

                H.            Sick Time and FMLA (EP 3.3), last revised: 7/18/02; and

                I.              Travel (CP 2-1), last revised: 11/15/06.

 

AND BE IT FURTHER RESOLVED, That the Chairman, the President and Chief Executive Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things and take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President, General Counsel and Chief of Staff.

 


 

10.                Motion to Conduct an Executive Session

               

“Mr. Chairman, I move that the Authority conduct an executive session to discuss matters in connection with (i) a current or future investigation; and (ii) the proposed acquisition of securities or the sale and exchange of securities.”  Upon motion duly made and seconded, an Executive Session was held.


 

11.                Motion to Resume Meeting in Open Session

Mr. Chairman, I move to resume the meeting in Open Session.”  Upon motion duly made and seconded, the meeting resumed in Open Session.

 


 

 

12.                Annual Review and Approval of Guidelines for the Investment of Funds and 2007 Annual Report on

Investment of Authority Funds                            

 

The President and Chief Executive Officer submitted the following report:

 

SUMMARY

 

            “The Trustees are requested to review and approve the attached 2007 Annual Report on Investment of Authority Funds (Exhibit ‘12-A’).

 

 BACKGROUND

 

            “Section 2925 of the Public Authorities Law requires the review and approval of an annual report on investments.  Pursuant to the statute, the attached report includes Investment Guidelines that set standards for the management and control of the Authority’s investments, a summary of the Guidelines, the total investment income earned in 2007, a statement on fees paid for investment services, the results of an independent audit, a detailed inventory report for each of the Authority’s seven portfolios at December 31, 2007 and a summary of purchases from dealers and banks.  The approved annual report is filed with the State Division of the Budget, with copies to the Office of the State Comptroller, the Senate Finance Committee and the Assembly Ways and Means Committee.  The report is also available to the public upon written reasonable request. 

 

DISCUSSION

 

            “In 2007, the Authority’s investment portfolio averaged approximately $1.04 billion and earned approximately $52 million.  This level of earnings is $18 million more than in 2006.  The increase in investment earnings is due to an increase in the average size of the portfolio combined with higher reinvestment rates in 2007.  Income for the year from the Authority’s portfolios had an average yield of 4.79%, exceeding the Authority’s established performance measure by 7 basis points (7/100 of 1%).  The performance benchmark for 2007 was the 3-year rolling average yield of the 2-year Treasury note plus an average of 60 basis points. 

 

“At December 31, 2007, the portfolio consisted of 4% in direct obligations of the U. S. government; 9% in mortgages guaranteed by the U. S. government, 76% in agencies (government sponsored enterprises); 1% in Certificates of Deposit and Repurchase Agreements and 10% in Municipal Bonds.

 

“In December 2006, the Authority’s Trustees authorized staff to initiate the establishment of a trust for other post-employment benefits (‘OPEB’) obligations, with the trust fund to be held by an independent custodian.  During 2007, the Authority partially funded its prior service OPEB obligation by contributing $100 million to the trust fund, which is presently invested in a U. S. Treasury Money Market fund.  Pursuant to prior Trustee resolution, the Authority will make additional contributions during 2008 so as to fund approximately 75% of its prior service OPEB obligation; allocate the contributions to the various approved asset classes and evaluate performance of the trust fund before making recommendations to the Trustees on additional actions.

 

“Investment management fees associated with the Nuclear Decommissioning Trust Fund totaled $797,556 in 2007 and were paid from such Trust Fund.  In accordance with Nuclear Regulatory Commission mandate, this Trust is managed by external managers beyond the Authority’s administrative control.  It is noted that since the Nuclear Decommissioning Trust and the OPEB Trust are separately managed by external managers, these Trusts’ balances are not included in the portfolio figures listed above.           


 

“In connection with its examination of the Authority’s financial statements, Ernst & Young LLP (‘E&Y’) performed tests of the Authority’s compliance with certain provisions of the Investment Guidelines, the State Comptroller’s Investment Guidelines and Section 2925 of the Public Authorities Law.  E&Y’s report, a copy of which is attached as Exhibit ‘12-B,’ states that the results of its examination disclosed no instances of noncompliance by the Authority.  Consequently, staff believes the Authority is in compliance with the Investment Guidelines, the State Comptroller’s Investment Guidelines and Section 2925 of the Public Authorities Law.

 

“The Investment Guidelines and procedures have not been amended since last presented to and approved by the Trustees at their meeting of March 27, 2007.  They remain fundamentally sound and meet the requirements of the Authority.  Furthermore, these Guidelines continue to meet the requirements of Section 2824(1)(e) of the Public Authorities Accountability Act of 2005, which requires the Authority’s Trustees to establish written policies and procedures with respect to investments.

 

RECOMMENDATION

 

            “The Treasurer recommends that the Trustees approve the attached 2007 Annual Report on Investment of Authority Funds.

 

            “The Executive Vice President, General Counsel and Chief of Staff, the Executive Vice President and Chief Financial Officer, the Vice President – Finance and I concur in the recommendation.”

 

The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

 

            RESOLVED, That the 2007 Annual Report on Investment of Authority Funds be, and hereby is, approved; and be it further

 

                RESOLVED, That the Chairman, the President and Chief Executive Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things, take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President, General Counsel and Chief of Staff.

 


 

 


 

13.                Annual Review and Approval of Guidelines for Procurement Contracts, 2007 Annual Report of Procurement Contracts and Open

                Procurement Service Contracts                         

 

The President and Chief Executive Officer submitted the following report:

 

SUMMARY

 

                “The Trustees are requested to approve the 2007 Annual Report of Procurement Contracts (‘Annual Report’) (Exhibit ‘13-A-3’) and the Guidelines for Procurement Contracts (‘Guidelines’) (Exhibit ‘13-A-2’) and to review open service contracts exceeding one year that were active in 2007 as detailed in the Annual Report (Exhibit ‘13-A-3’).  An Executive Summary is set forth in Exhibit ‘13-A-1.’

 

BACKGROUND

 

                “Section 2879 of the Public Authorities Law (‘PAL’), which governs the administration and award of procurement contracts equal to or greater than $5,000, requires public authorities to adopt comprehensive guidelines detailing their operative policy and instructions concerning the use, awarding, monitoring and reporting of procurement contracts.  The Authority’s Guidelines were adopted by the Trustees at their meeting of October 31, 1989 and were implemented as of January 1, 1990.  The Guidelines have been amended as required and approved annually since that date.  The current Guidelines were approved by the Trustees at their meeting of April 24, 2007.

 

“Section 2879 of the PAL also requires authorities to review and approve such guidelines annually and to file a report regarding procurement contracts with the Division of the Budget, the Department of Audit and Control, the Department of Economic Development, the Senate Finance Committee and the Assembly Ways and Means Committee.  The Annual Report must include a copy of the Authority’s current Guidelines, details concerning any changes to the Guidelines during the year and particular information concerning procurement contracts.  For each procurement contract included in the report, the following information must be identified:

 

[A] listing of all procurement contracts entered into [by the Authority], all contracts entered into with New York State business enterprises and the subject matter and value thereof, all contracts entered into with foreign business enterprises, and the subject matter and value thereof, the selection process used to select such contractors, all procurement contracts which were exempt from the publication requirements of article four-C of the economic development law, the basis for any such exemption and the status of existing procurement contracts.

               

“Lastly, Section 2879 of the PAL requires an annual review by the Trustees of open service contracts exceeding one year.  Those long-term service contracts exceeding one year and awarded after January 1, 1990 are also included in the Annual Report.

 

DISCUSSION

 

                “The 2007 Annual Report is attached for the Trustees’ review and approval (Exhibit

‘13-A-3’).  The Annual Report reflects activity for all procurement contracts equal to or greater than $5,000, as identified by the Authority’s SAP computer system, that were open, closed or awarded in 2007, including contracts awarded in 1990 through 2007 that were completed in 2007 or were extended into 2007 and beyond.  In addition, fossil fuels transactions as reported by the Fuels Planning and Operations group and financial-related services as reported by Corporate Finance, both part of the Business Services Business Unit, are included in the Annual Report of Procurement Contracts.  All additional information required by the statute is also included.  The Trustees are requested to approve the attached Annual Report pursuant to Section 2879 of the PAL prior to submittal thereof to the Division of the Budget, the Department of Audit and Control, the Department of Economic Development, the Senate Finance Committee and the Assembly Ways and Means Committee.

 

                “A copy of the Guidelines effective March 25, 2008 (Exhibit ‘13-A-2’) is attached to the Annual Report.  These Guidelines are amended in accordance with recently enacted Executive Orders, as set forth in Exhibit

‘13-A-1.’

 

“The Guidelines generally describe the Authority’s process for soliciting proposals and awarding contracts.  Topics detailed in the Guidelines include solicitation requirements, evaluation criteria, contract award process, contract provisions, change orders, Minority/Women Business Enterprise (‘M/WBE’) requirements, employment of former officers and reporting requirements.  The Guidelines have been designed to be self-explanatory.

 

RECOMMENDATION

 

                “The Vice President – Procurement and Real Estate recommends that the Trustees approve the 2007 Annual Report of Procurement Contracts, the Guidelines for Procurement Contracts and the review of open service contracts as attached hereto in Exhibits ‘13-A-1’ through ‘13-A-3.’

 

                “The Executive Vice President, General Counsel and Chief of Staff, the Executive Vice President – Corporate Services and Administration, the Executive Vice President – Chief Financial Officer, the Senior Vice President and Chief Engineer – Power Generation and I concur in the recommendation.”

 

                Mr. John Hoff presented the highlights of staff’s recommendations to the Trustees.  In response to a question from Trustee Besha, Mr. Hoff said that competitive searches were used to obtain information on the qualifications, key personnel and rates for such things as legal services that did not lend themselves for Requests for Proposals.  Trustee Besha said that the report was extremely detailed and thorough, for which Mr. Hoff said that Ms. Diane Gil deserved the credit.

                The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

 

                RESOLVED, That pursuant to Section 2879 of the Public Authorities Law and the Authority’s Procurement Guidelines, the Annual Report of Procurement Contracts, as listed in Exhibit “13-A-3,” and the Guidelines for the use, awarding, monitoring and reporting of Procurement Contracts (Exhibit “13-A-2”), as amended and attached hereto, be, and hereby are, approved; and be it further

 

                RESOLVED, That the open service contracts exceeding one year be, and hereby are, reviewed and approved; and be it further

 

RESOLVED, That the Chairman, the President and Chief Executive Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things, take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President, General Counsel and Chief of Staff.

 


 

Exhibit “13-A-1”

 

 

POWER AUTHORITY OF THE STATE OF NEW YORK

2007 ANNUAL REPORT OF PROCUREMENT CONTRACTS

 

EXECUTIVE SUMMARY

 

The Power Authority of the State of New York (the “Authority”) is a corporate municipal instrumentality and political subdivision of the State of New York.  The Authority generates, transmits and sells electric power and energy principally at wholesale.  The Authority’s primary customers are municipal and investor-owned utilities and rural electric cooperatives located throughout New York State, high load factor industries and other businesses, various public corporations located within the metropolitan area of New York City, and certain out-of-state customers. The Authority does not use tax revenues or State funds or credit.  It finances construction of its projects through bond and note sales to private investors and repays the debt holders with proceeds from operations.

 

The Authority continued a major effort to implement energy services programs which include the installation of high efficiency lighting, motors and controls; conversion to efficient chiller and boiler plants; and clean renewable distributed generation at customer sites statewide.  Other efforts include an electric transportation program to promote the use of electric-drive vehicles (cars, pick-up trucks and buses) throughout the State.

 

The Authority requires the services of outside firms for accounting, engineering, legal, public relations, surveying and other work of a consulting, professional or technical nature to supplement its own staff, as well as to furnish varied goods and services and perform construction work.  Many of these contracts are associated with the construction, maintenance and operation of the Authority's electric generating facilities and transmission lines, as well as with support of the energy efficiency projects noted above.

 

PROCUREMENT GUIDELINES (Exhibit “A-2”)

 

In compliance with the applicable provisions of Section 2879 of the Public Authorities Law, as amended, the Authority has established comprehensive guidelines detailing its operative policy and instructions concerning the use, awarding, monitoring and reporting of procurement contracts.

 

The Guidelines describe the Authority's process for soliciting proposals and awarding contracts.  Topics detailed in the Guidelines include solicitation requirements, evaluation criteria, contract award process, contract provisions, change orders, Minority/Women Business Enterprise (“M/WBE”) requirements, employment of former officers and reporting requirements.  The Guidelines have been designed to be self-explanatory.

These Guidelines, approved by the Authority's Trustees, were implemented on January 1, 1990, and have been reviewed annually and amended as necessary since then.  A redlined copy of the Guidelines, which will become effective March 25, 2008, is attached hereto with the following changes as highlighted below.

 

1.             DEFINITIONS   Pages 1-2, Section 2, Paragraph B

 

Clarified types of services characterized as “Construction Service Contracts.”

 

2.             SOLICITATION REQUIREMENTS    Page 5, Section 3.I Paragraph 3

 

Deleted entire paragraph as it is duplicative of Section 2.A.

 

3.             EVALUATION OF PROPOSALS      Page 10, Section 4 Insert paragraph H:

 

“H.          The specifications set forth in any solicitation prepared under these Guidelines were based upon information available at the time of the preparation of the solicitation. Thus, the Authority may diverge from the specifications of any solicitation if after review of the proposals responsive to such solicitation, the Authority deems it prudent in light of its experience, the circumstances of the solicitation and/or potential cost savings. Such divergence from the specifications should be immaterial, for example only, as to qualifications, quantity, quality, term, services and/or price.”

 

4.             CONTRACT PROVISIONS             Page 14, Section 7, Paragraph B

 

Deleted items 19 and 20 as they are now included in the contract appendices only.

 

5.             REPORTING REQUIREMENTS & PROCUREMENT RECORD  Page 18, Section 11, Paragraph B

 

This amendment provides that the Annual Report of Procurement Contracts will be posted to the Authority’s public website.

 

6.             The remaining changes to the Guidelines are ancillary to those above and/or appropriate for clarity.  Such editorial changes are set forth in the attached, redlined exhibit.

 

The revised Guidelines were presented to the Governance Committee on February 26, 2008, and are presented for reviewed and approved by the Trustees at this meeting of March 25, 2008.

 

ACCOMPLISHMENTS

 

Major procurement efforts in 2007 included purchase of goods, services and construction work in support of the Authority's operating projects and headquarters facilities, Life Extension and Modernization (“LEM”) Programs at Niagara and St. Lawrence, and the Energy Services and Technology (“EST”) Programs as mentioned above.  Procurement is continuing efforts to optimize use of the Authority’s credit card system for procurements under $5,000 and the SAP procurement and materials management system, as well as supporting the requirements of our operating and capital projects and headquarters operations.

 

(1)     Credit Card Procurement System (“CCPS”)

 

The Credit Card Procurement System is used to procure goods and services valued under $5,000.  At the end of 2007, the Authority had approximately 145 cardholders in both headquarters and operating facilities.  The average value of a single transaction was approximately $460.  The monthly average for the number of credit card transactions was 820 per month, with an average monthly value of $379,000, totaling more than $4,500,000 in the report year (compared to nearly $4,400,000 in 2006).

               

(2)     Negotiated Savings Program

 

The Authority’s procurement staff established a goal of achieving 1.6% of non-fuel expenditures (for contracts exceeding $50,000) in additional savings by negotiating improved pricing and other commercial terms with recommended low bidders and resolving back charges and claims with the Authority’s outside vendors and contractors.  Actual negotiated savings for 2007 by Corporate Procurement, White Plains Procurement Group exceeded $5,035,000 or 1.92% of non fuel expenditures for contracts exceeding $50,000.

 

(3)     Supplier Diversity Program (“SDP”)

 

In 2007, the Authority continued to optimize the use of M/WBEs to provide goods and services in support of Authority operations.  As noted in Attachment I, in 2007, the Authority awarded over $17,000,000 for goods and services to M/WBE firms.  This included direct and indirect procurements of office supplies, computer equipment, chemicals, consulting services, temporary engineering personnel and design.  In 2007, 8.5% of total reportable procurement expenditures were spent with NYS certified M/WBEs, still exceeding NYPA”S New York State Goal of 6%. 

 

The Authority includes subcontracting goals for M/WBE firms in non-construction procurements of more than $25,000 and construction procurements of more than $100,000.  Staff will continue to pursue other direct and indirect procurement opportunities wherever possible. 

 

The Authority continues to focus on increasing opportunities for M/WBE firms to participate in investment banking activities and Treasury bill investments, as well as including an M/WBE firm as a co-manager in the Tax-Exempt Commercial Paper Program.  In 2007, M/WBE investment banking firms purchased and sold more than $1 billion (in principal) of securities transactions for the Authority and we are looking to increase that amount for 2008.

 

In June 2007, the Authority hosted its 17th Annual Purchasing Exchange for M/WBEs in White Plains.  The 18th Exchange will take place in June 2008.

 

Procurement representatives also worked closely with, and remain members of, the National Minority Business Council, the Association of Minority Enterprises of New York, the New York/New Jersey Minority Purchasing Council, the Long Island Hispanic Chamber of Commerce, Professional Women in Construction and the African American Chamber of Commerce for Westchester and Rockland Counties, to name a few.

 

ANNUAL REPORT - 2007 PROCUREMENT CONTRACTS (Exhibit “A-3”)

 

The Annual Report includes specific details of procurements of $5,000 or greater awarded since January 1, 1990 that were active in 2007.  There were 2,415 such contracts with an estimated value of nearly $3.3 billion, which also includes fossil fuel and corporate finance expenditures. 

 

Total procurement expenditures in 2007 exceeded $774 million.  This included more than $495 million for the purchase of fossil fuels. 

 

Approximately 60% of the contracts active in 2007 were closed in 2007. 

 

As noted in Attachment II: 

 

 

It should also be noted that while approximately 51% of the total number of 2007 non-fuel contracts covered by the Report exceeded $25,000, the total value of those contracts was approximately 99% of the total non-fuel expenditures.

 

Attachment III indicates that, based on the total value of the contracts included in the Annual Report, approximately 97% of the total dollars expended (including fuels and corporate finance) were for contracts that were competitively bid.  In terms of the numbers of contracts processed (Attachment IV), approximately 72% were competitively bid and 28% were sole Major reasons for the higher number of sole source awards in 2007 include the purchase of spare parts and services from original equipment manufacturers (OEM), particularly for initial procurement of the operating spares at the 500MW Combined Cycle Plant and the outages at the Flynn Power Plant, as well as procurement on an emergency basis and/or from proprietary sources. 

 


 

14.                2007 Financial Reports Pursuant to Section 2800 of the Public Authorities Law and Regulations of the Office of the State Comptroller                            

 

The President and Chief Executive Officer submitted the following report:

 

SUMMARY

 

“The Trustees are requested to approve the financial report for the year ended December 31, 2007 and authorize the Corporate Secretary to submit this report to the Governor, legislative leaders and the State Comptroller pursuant to Section 2800 of the Public Authorities Law, as amended by the Public Authorities Accountability Act of 2005.  In accordance with  regulations adopted by the Office of the State Comptroller (‘OSC’), the Trustees are also requested to approve a report of actual vs. budgeted results for the year 2007 and authorize making this report available for public inspection at not less than five convenient public places throughout New York State, and posting it on the Authority’s web site.

 

BACKGROUND

 

              “The Public Authorities Accountability Act of 2005 (‘PAAA’) reflects the State’s commitment to maintaining public confidence in public authorities by ensuring that the essential governance principles of accountability, transparency and integrity are followed at all times.  To facilitate these objectives, the PAAA established an Authority Budget Office (‘ABO’) that monitors and evaluates the compliance of State authorities with the requirements of the Act.  The PAAA became effective with the Authority’s fiscal year beginning January 1, 2006.  The PAAA amended Section 2800 of the Public Authorities Law to require that financial reports submitted by a State authority under Section 2800 be certified by the chief executive officer and chief financial officer and approved by the authority’s board.

 

                            “Following rulemaking proceedings undertaken pursuant to the State Administrative Procedure Act, OSC implemented regulations on March 29, 2006 that address the preparation of annual budgets and related reporting requirements by ‘covered’ public authorities, including the Authority.  These regulations establish various procedural and substantive requirements relating to the budgets and require the chief financial officer to report publicly not later than 90 days after the close of each fiscal year on actual versus budgeted results. 

 

DISCUSSION

 

“The Trustees are requested to approve the required financial report for the year ended December 31, 2007 (Exhibit ‘14-A’) and authorize the Corporate Secretary to submit this report to the Governor, legislative leaders and the State Comptroller pursuant to Section 2800 of the Public Authorities Law, as amended by the PAAA.  This report was reviewed by the Audit Committee at its meeting of February 26, 2008.  The Trustees are also requested to approve a report of actual vs. budgeted results for the year 2007 (Exhibit ‘14-B’) and authorize making this report available for public inspection at not less than five convenient public places throughout New York State, and posting it on the Authority’s website.

 

FISCAL INFORMATION

 

                “There is no anticipated fiscal impact.

 

RECOMMENDATION

 

                “The Vice President – Controller recommends that the Trustees approve and authorize submittal of the attached reports (Exhibits ‘14-A’ and ‘14-B’) as discussed herein.

 

                “The Executive Vice President, General Counsel and Chief of Staff, the Executive Vice President and Chief Financial Officer and I concur in this recommendation.”

 

                Mr. Thomas Concadoro presented the highlights of staff’s recommendations to the Trustees.  Mr. Kelly said that the report required by the Office of the State Comptroller had been certified by both President Kelley, as Chief Executive Officer of the Authority, and Mr. Joseph Del Sindaco, as Chief Financial Officer of the Authority.

The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

               

WHEREAS, pursuant to Section 2800(1) of the Public Authorities Law, the Authority is required to annually submit to the Governor, the Chairman and Ranking Minority Member of the Senate Finance Committee, the Chairman and Ranking Minority Member of the Assembly Ways and Means Committee and the State Comptroller, within 90 days after the end of its fiscal year, a complete and detailed report or reports setting forth certain information regarding, among other things, certain financial information; and

 

WHEREAS, pursuant to Section 2800(3), financial information submitted under Section 2800 shall be approved by the Authority’s Board of Trustees and shall be certified in writing by the Chief Executive Officer and the Chief Financial Officer of the Authority that based on the officer's knowledge the information provided therein (a) is accurate, correct and does not contain any untrue statement of material fact; (b) does not omit any material fact which, if omitted, would cause the financial statements to be misleading in light of the circumstances under which such statements are made and (c) fairly presents in all material respects the financial condition and results of operations of the Authority as of, and for, the periods presented in the financial statements; and

 

WHEREAS, the Chief Executive Officer and Chief Financial Officer have so certified as to the financial information contained within the attached reports for the fiscal year ending December 31, 2007 as evidenced by a writing dated even date hereof;

 

NOW THEREFORE BE IT RESOLVED, That pursuant to Section 2800 of the Public Authorities Law, the financial reports attached hereto are adopted and the Corporate Secretary be, and hereby is, authorized to submit to the Governor, the Chairman and Ranking Minority Member of the Senate Finance Committee, the Chairman and Ranking Minority Member of the Assembly Ways and Means Committee, the State Comptroller, the Division of the Budget and the Authority Budget Office the attached financial report for the year ending 2007 in accordance with the foregoing report of the President and Chief Executive Officer; and be it further

 

RESOLVED, That pursuant to 2 NYCRR Part 203, the attached report of actual vs. budgeted results for the year 2007 is approved in accordance with the foregoing report of the President and Chief Executive Officer; and the Corporate Secretary is authorized to make the approved report available for public inspection at not less than five convenient public places throughout New York State, and post the report on the Authority’s website; and be it further  
 

RESOLVED, That the Chairman, the President and Chief Executive Officer, the Executive Vice President and Chief Financial Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things and take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President, General Counsel and Chief of Staff.
 

15.                Election of Authority Non-Statutory Officers

 

The Chairman submitted the following report:

 

SUMMARY

“The Trustees are requested to consider the election of certain non-statutory officers of the Authority.

BACKGROUND AND DISCUSSION

“Article IV, Section 2 of the Authority’s By-laws provides for the election of certain non-statutory officers by the Trustees.  Section 3 of the same Article provides that such non-statutory officers shall hold office for a term expiring at the Trustees’ next Annual Meeting, or until their successor is elected. 

RECOMMENDATION

“It is recommended that the below named non-statutory officers provided for in Article IV of the By-laws, adopted December 18, 1984, and last amended on October 30, 2007, be elected by the Trustees to hold office for terms expiring at the next annual meeting of the Trustees in 2009, or until their successor is elected. In addition, the current salary of each below named officer, as approved by the Compensation Committee, is hereby approved and shall be subject to adjustment during such term in accordance with applicable Authority policies, as amended.

Roger B. Kelley                                    President and Chief Executive Officer

                Joseph M. Del Sindaco                       Executive Vice President – Chief Financial Officer

                Thomas J. Kelly                                    Executive Vice President and General
Counsel

                Gil C. Quiniones                                   Executive Vice President – Energy Marketing and Corporate Affairs

                Vincent C. Vesce                                  Executive Vice President – Corporate
Services and Administration

                Edward Welz                                         Executive Vice President – Power Generation

                Anne B. Cahill                                      Corporate Secretary”

The following resolution, as submitted by the Chairman, was unanimously adopted.

                               

RESOLVED, That  pursuant to Article IV, Section 2 of the Authority’s By-laws, the following individuals are hereby appointed to the position listed next to their name for terms expiring at the next annual meeting of the Trustees in 2008, or until their successor is elected: 

 

Roger B. Kelley                   President and Chief Executive Officer

                Joseph M. Del Sindaco       Executive Vice President – Chief Financial Officer

                Thomas J. Kelly                   Executive Vice President and General Counsel

 

                Gil C. Quiniones                 Executive Vice President –Energy Marketing and Corporate Affairs

 

                Vincent C. Vesce                 Executive Vice President – Corporate Services and Administration

                Edward Welz                        Executive Vice President – Power Generation

                Anne B. Cahill                     Corporate Secretary

AND BE IT FURTHER RESOLVED, That the current salary of each above named officer is hereby approved and shall be subject to adjustment during such term in accordance with applicable Authority policies, as amended.

 

 

16.                Presentation: Status – NYPA Power Allocations

 

                Mr. James Yates made a presentation on the status of the Authority’s power programs.  Afterwards, Chairman McCullough thanked Mr. Yates for the terrific overview.

17.                Next Meeting

 

The next Regular Meeting of the Trustees will be held on Tuesday, April 29, 2008, at 11:00 a.m., at the Clarence D. Rappleyea Building, White Plains, New York, unless otherwise designated by the Chairman with the concurrence of the Trustees.

 


 

Closing

                On motion duly made and seconded, the meeting was adjourned by the Chairman at approximately

1:40 p.m.

 

 

 

 

Anne B. Cahill

Corporate Secretary