Thursday, August 11, 2011
The regular meeting of the Board of Directors of the Omaha Public Power District was held in the Board Room on the Atrium Level of Energy Plaza East on August 11, 2011, at 7:00 p.m.
Present were Directors N. P. Dodge, J. K. Green, A. L. McGuire, L. Scheve, J. R. Thompson, and D. D. Weber. Also present were W. G. Gates, President and S. M. Bruckner, General Counsel for the District. Mr. Green, Board Chair, presided, and Ms. Emerson, Corporate Secretary, recorded the minutes. Other members of Management present were D. J. Bannister, T. J. Burke, M. I. Doghman, E. E. Easterlin, J. T. Hansen, S. L. Hutcherson, L. A. Olson, J. W. Thurber, T. J. Tamke, J. J. Hanson, and M. R. Jones. Others present included M. Welsch, R. Miller, and J. Pollack, and M Thompson.
The Corporate Secretary read the following:
“Notice of the time and place of this meeting was publicized by notifying the area news media; by publicizing same in the Omaha World-Herald and Outlets; by displaying such notice on the Arcade Level of Energy Plaza since August 5, 2011; and by mailing such notice to each of the District’s Directors on that same date.
“A copy of the proposed agenda for this meeting has been maintained, on a current basis, and is readily available for public inspection in the office of the District’s Corporate Secretary.
“Additionally, a copy of the Open Meetings Law is available for inspection in the public meeting book located in this meeting room.”
It was moved and seconded that the Board reviewed the June 2011 Comprehensive Financial and Operating Report and that the minutes for the last meeting be approved. The vote was recorded as follows: Dodge – Yes; McGuire – Yes; Scheve – Yes; Thompson – Yes; Weber – Yes; and Green – Yes. The motion carried.
Thereafter, the Corporate Secretary read the following:
“Persons wishing to address the Board on a particular item are asked to approach the microphone as that agenda item is discussed. Comments will be heard following Board discussion of the item and prior to a vote by the Board. Persons wishing to address the Board on all other matters will have an opportunity before the close of the meeting.”
The following resolutions were then read, and upon motion duly seconded, were placed on roll call. The vote on each resolution is indicated following the description of that resolution.
RESOLUTION NO. 5878 approves an updated Statement of Investment Policy for the OPPD Retirement Plan. Committee Chair Thompson led the discussion by stating that the District retained Rogerscasey, the District’s Retirement Plan Consultant, to perform an Asset/Liability Study for the Retirement Plan. The purpose of the Study was to evaluate the Retirement Plan’s asset allocation in the context of its liabilities to determine if asset allocation changes should be considered. The Study provided a comprehensive framework for evaluating the Plan’s current asset allocation relative to other potential asset allocations, including alternative asset classes, to determine if an alternative asset allocation would be more effective in meeting the Plan’s liabilities and investment objectives. Numerous alternative asset classes were reviewed and screened with several new asset classes being included as options in the Study. Several Asset Allocation portfolios were modeled by Rogerscasey and reviewed by the Trust Selection Committee. The Trust Selection Committee is recommending several changes to the Statement of Investment Policy. Based on modeling results, recommended changes to the current investment portfolio are expected to provide higher average annual returns and lower volatility than those forecasted for the current portfolio. The Policy has been updated to reflect the proposed changes. Primary changes to the Policy include: five new asset classes have been added, asset allocation targets and ranges for each asset class have been revised, Plan objectives have been updated, Plan performance and fund manager expectations have been updated, diversification guidelines have been updated, and a policy deviations provision was added. Following the discussion, the vote was recorded as follows: Dodge – Yes; McGuire – Yes; Scheve – Yes; Thompson – Yes; Weber – Yes; and Green – Yes. The motion carried.
Copies of the foregoing resolution are filed in the District’s Corporate Records file.
Thereafter, Board Chair Green welcomed Jeff Conklin, Senior Director of Energy Utility and Smart Energy Practice with JD Power & Associates, who was at the meeting to present OPPD’s its 11th JD Power Award for exceptional residential customer service. Director Green commented on the importance of not only achieving excellence, but maintaining that excellence over a sustained period of time is even more of a significant contribution. He also praised the dedication of every employee and how proud he is to be part of the OPPD team.
At this time Mr. Conklin addressed the Board by stating that he is pleased to be presenting OPPD with its 11th award. Mr. Conklin said JD Power measures customer satisfaction in the following categories: Reliability, Price, Billing and Payment, Corporate Citizenship, Communications, and Customer Service. He noted that not only did OPPD score the highest of any utility in these categories, but OPPD’s scores far exceeded the second best participant in the segment we are measured. Thereafter photographs were taken with Chairman Green and President Gates.
The next item of business was the opportunity for those in attendance to address the Board on any items of District concern.
Mr. Mark Welsch, 5611 Howard St., Omaha, NE 68106, informed the Board of Dr. James Hansen’s visit to the area last week. Dr. Hansen is one of the foremost scientists active in the research of human-caused global warming and climate change.
There being no further business, the meeting adjourned at 7:23 p.m.
E. E. Easterlin D. S. Emerson
Assistant Secretary Corporate Secretary