This meeting was publicly advertised in accordance with Section 84-1411 of the Nebraska Statutes by a notice on Radio Station KUVR on November 26, 2007, giving the time, date, and place of the meeting and the information that the Agenda was available in advance at the Office of the Assistant Secretary.

Individual cards giving the time, date, and place of this meeting were mailed to the Directors on November 16, 2007.

The following Directors were present:
William E. Knoerzer, President; Robert B. Dahlgren; Martin E. Mueller; Robert L. Petersen, Vice President; Robert A. Garrett; Dudley L. Nelson; Roger D. Olson, Treasurer; Robert L. Johnson; K. Scott Olson; Doyle D. Lavene, Secretary; Wendell E. Johnson; David L. Rowe; Geoffrey K. Bogle; Owen J. McDougal, Jr.; Gordon N. Soneson

Also present were the following:
Don D. Kraus, General Manager; Gary L. Bergsten, Controller; Kevin M. Boyd, Gothenburg Division Mgr.; David R. Ford, Irrigation Division Mgr.; Jeff J. Buettner, Info. & Comm. Officer; Eric R. Hixson, Engineering Services Mgr.; Frank C. Vetter, Real Estate Administrator; Greg F. Ham, Purchasing Agent; Van D. Fastenau, Customer Service Super.; Michael C. Klein, Legal Counsel; Mike A. Drain, Natural Resources Manager; Robert J. McCormick, Legal Counsel; Cory A. Steinke, Civil Engineer; Charles D. Brewster, Legal Counsel; Rochelle A. Jurgens, Assist. Controller; Judy M. Hunt, Assistant Secretary; Marcia L. Trompke, Conservation Director

Others present:
Lori Potter, Kearney Hub; Curtis Scheele, NRCS, Holdrege; Marc Groff, The Flatwater Group, Lincoln; John Engel, HDR, Omaha; Ken Christensen, IBEW; John Thorburn, Tri-Basin NRD

* * * * * * * *

The President announced that information for the public concerning the Open Meetings Act is posted in the Board room.

At 9:00 AM, the Board President, William E. Knoerzer, announced that the meeting was open for business and proceeded with roll call.

The minutes of the Regular Business Meeting of the Board held November 5, 2007 were presented. It was moved by Director R. Olson, seconded by Director Mueller, that the Board approve the minutes of the November 5, 2007 Regular Business Meeting of the Board. Upon voting on the motion, the following Directors voted therefore: Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, McDougal, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, and Soneson. None voted no and the motion was declared carried.

The minutes of the Committee Meeting of the Board held November 26, 2007 were presented. It was moved by Director W. Johnson, seconded by Director Petersen, that the Board approve the minutes of the November 26, 2007 Committee Meeting of the Board and approve the vouchers for payment. Upon voting on the motion, the following Directors voted therefore: Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, McDougal, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, and Bogle. None voted no and the motion was declared carried.

PUBLIC INPUT: John Thorburn reported that Tri-Basin NRD is busy with inspecting flow meters and drilling some dedicated observation wells.

WATER SERVICE AGREEMENTS AND CANCELLATIONS: The following termination was presented for approval:

It was moved by Director S. Olson, seconded by Director Mueller, that the Board approve the Water Service Agreement Termination as presented. Upon voting on the motion, the following Directors voted therefore: Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, McDougal, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Bogle, and Dahlgren. None voted no and the motion was declared carried.

BIDS – KINGSLEY HYDRO FENCING: The following bids for Kingsley Hydro Fencing were received on November 19, 2007:

It was moved by Director Bogle, seconded by Director Lavene, that the Board award the bid to Elkhorn Fence Co. of Elkhorn, NE, in the amount of $22,971.00. Upon voting on the motion, the following Directors voted therefore: R. Johnson, W. Johnson, Knoerzer, Lavene, McDougal, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, and Garrett. None voted no and the motion was declared carried.

WORK ORDER/PURCHASE REQUISITION SUMMARY: The following Work Order/Purchase Requisition Summary was presented for approval:

WORK ORDER/PURCHASE REQUISITION SUMMARY
December 3, 2007

1. Construction Work Order 2107158 in the amount of $27,994.00 for Kingsley Hydro fencing.

2. Construction Work Order 186744 in the amount of $62,016.48 for full automation of E65 32.8, 35.5, 36.2S-0.3.

3. Purchase Requisition HA5629 in the amount of $36,038.64 for flow meters (Great Plains Meter) (2008 budget).

4. Purchase Requisition HA5630 in the amount of $578.00 for steel valve flange and gaskets (Schumacher Irrigation) (2008 budget).

It was moved by Director Soneson, seconded by Director Nelson, that the Board approve the Work Order/Purchase Requisition Summary as presented. Upon voting on the motion, the following Directors voted therefore: W. Johnson, Knoerzer, Lavene, McDougal, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, and R. Johnson. None voted no and the motion was declared carried.

INTEGRATED MANAGEMENT STUDY: Mr. John Engel of HDR Engineering in Omaha along with Mr. Marc Groff of The Flatwater Group, gave a presentation on the model development process for the Integrated Management Study. Staff recommends that the Central District participate in the study through an Interlocal Agreement. Mike Drain reported on the best estimate for costs of the study which would be $107,610.00 and up to $5,000.00 from Lee Wilson.

It was moved by Director Garrett, seconded by Director Nelson that the Board authorize the General Manager to enter into an Interlocal Agreement on behalf of the Central District along with Nebraska Public Power District, Central Platte Natural Resources District, the Department of Natural Resources and the Twin Platte Natural Resources District for the purpose of expanding the Integrated Management Study to develop work scopes under tasks 1(a) and 1(b) and any other tasks that would affect Central facilities. The District cost will be an amount not to exceed $107,610.00 plus $5,000.00 for work by Lee Wilson, subject to staff and legal review. Upon voting on the motion, the following Directors voted therefore: Knoerzer, Lavene, McDougal, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, R. Johnson, and W. Johnson. None voted no and the motion was declared carried.

The staff reviewed the possibility of a grant from the U.S. Bureau of Reclamation for $170,100.00. Staff recommends approval of the following resolution:

RESOLUTION 07-8

WHEREAS, The Central Nebraska Public Power and Irrigation District’s (Central) Board of Directors has entered into an interlocal agreement with the Nebraska Public Power District, the Central Platte Natural Resources District, the Twin Platte Natural Resources District, and the Nebraska Department of Natural Resources to contract with the engineering firm of HDR for assistance in developing and evaluating the conjunctive management scenarios for a portion of the Platte Valley that includes Central’s irrigation service area; and

WHEREAS, the Board has reviewed and supports the proposal submitted; and

WHEREAS, Central is capable of providing the amount of funding and in-kind contributions specified in the funding plan; and

WHEREAS, if selected for a System Optimization Review, Central will work with the U.S. Bureau of Reclamation to meet established deadlines for entering into a cooperative agreement.

NOW THEREFORE BE IT RESOLVED, that the Board of Directors authorizes staff to file a grant application with the U.S. Bureau of Reclamation for funding to facilitate participation in an Integrated Management Study of the Platte Valley’s Water Resources.

It was moved by Director R. Olson, seconded by Director Lavene, that the Board approve Resolution 07-8 as presented. Upon voting on the motion, the following Directors voted therefore: Lavene, McDougal, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Dahlgren, Garrett, R. Johnson, W. Johnson, and Knoerzer. Director Bogle voted no. The motion was declared carried.

SALARIED PERSONNEL WAGE SCALE ADJUSTMENT – 2008: The Administration Committee recommends a 2.5% adjustment to the Salaried Personnel Wage Scale for 2008.

It was moved by Director Garrett, seconded by Director McDougal, that the Board approve the 2.5% adjustment to the Salaried Personnel Wage Scale for 2008. Upon voting on the motion, the following Directors voted therefore: McDougal, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, and Lavene. None voted no and the motion was declared carried.

WAGE SCALE ADJUSTMENT – HOURLY PERSONNEL NOT COVERED BY UNION AGREEMENT: The Administration Committee recommends a $.65 per hour adjustment to the 2008 hourly wage scale for the five hourly confidential personnel not covered by the Union agreement.

It was moved by Director McDougal, seconded by Director Petersen, that the Board approve the $.65 per hour adjustment to the 2008 hourly wage scale for the five hourly confidential personnel that are not covered by the Union agreement. Upon voting on the motion, the following Directors voted therefore: Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, and McDougal. None voted no and the motion was declared carried.

2008 IRRIGATION RATES: Discussion was held on irrigation rates for 2008. The proposed 2008 budget includes a $2.00 per acre increase.

It was moved by Director McDougal, seconded by Director R. Johnson, that the Board approve a $5.00 per acre increase to 2008 irrigation rates making the per acre rate $35.53 and the IPCCP base rate $29.49.

It was moved by Director Lavene, seconded by Director Dahlgren, to amend the original motion to approve a $.51 per acre increase making the per acre rate $30.12 and the IPCCP base rate $25.00. Upon voting on the motion, the following Directors voted therefore: Nelson, R. Olson, Soneson, Dahlgren, and Lavene voted yes. Directors S. Olson, Petersen, Rowe, Bogle, Garrett, R. Johnson, W. Johnson, Knoerzer, McDougal and Mueller voted no. The motion was defeated.

It was moved by Director Lavene, seconded by Director Dahlgren, to amend the original motion that an irrigation rate increase as recommended would only take effect when there is a full water supply to deliver. Upon voting on the motion, the following Directors voted therefore: R. Olson, S. Olson, Soneson, Dahlgren, Garrett, Lavene, and Nelson. Directors Petersen, Rowe, Bogle, R. Johnson, W. Johnson, Knoerzer, McDougal, and Mueller voted no. The motion was defeated.

It was moved by Director Lavene, seconded by Director Dahlgren, to amend that the increase in the original motion would only take effect when the same allocation limit be placed on groundwater users above Lake McConaughy. Upon voting on the motion, the following Directors voted therefore: S. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, McDougal, Mueller, Nelson, and R. Olson voted no. The motion was defeated.

It was moved by Director Lavene, seconded by Director Dahlgren, to amend the original motion that the rate increase would only take effect when Central collects a $10.00 per groundwater irrigated acre recharge fee in the three counties served by the Central District. Upon voting on the motion, the following Directors voted therefore: Dahlgren, Lavene, and Nelson voted yes. Directors Petersen, Rowe, Soneson, Bogle, Garrett, R. Johnson, W. Johnson, Knoerzer, McDougal, Mueller, R. Olson, and S. Olson voted no. The motion was defeated.

It was moved by Director Lavene, seconded by Director Nelson, to amend the original motion to increase the 2008 irrigation rate to $2.00 per acre instead of $5.00 per acre thus making the per acre rate $31.92 and the IPCCP base rate $26.49 per acre. Upon voting on the motion, the following Directors voted therefore: Soneson, Knoerzer, Lavene, Nelson, R. Olson, and Petersen voted yes. Directors Rowe, Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, McDougal, Mueller, and S. Olson voted no. The motion was defeated.

Upon voting on the original motion of setting the per acre rate at $35.53 per acre and the IPCCP base rate $29.39 per acre, the following Directors voted therefore: Bogle, Garrett, R. Johnson, W. Johnson, McDougal, Mueller, S. Olson, and Rowe voted yes. Directors Soneson, Dahlgren, Knoerzer, Lavene, Nelson, R. Olson, and Petersen voted no. The motion was declared carried.

The Board recessed for lunch at 11:35 AM and reconvened at 12:25 PM.

It was moved by Director McDougal, seconded by Director Garrett, to reconsider the irrigation rate increase. Upon voting on the motion, the following Directors voted therefore: Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, McDougal, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, and Soneson. None voted no and the motion was declared carried.

It was moved by Director McDougal, seconded by Director Garrett, that the Board amend the original motion for the $35.53 per acre rate to a $31.92 per acre rate making the IPCCP base rate $26.49. Upon voting on the motion, the following Directors voted therefore: Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, Nelson, R. Olson, Petersen, and Soneson voted yes. Directors McDougal, Mueller, S. Olson, and Rowe voted no. The motion was declared carried.

Upon voting on the original motion for a per acre rate of $31.92 for 18” of service making the IPCCP base rate $26.49 per acre, the following Directors voted therefore: R. Johnson, W. Johnson, Knoerzer, Lavene, Nelson, R. Olson, S. Olson, Petersen, Soneson, and Bogle voted yes. Directors Dahlgren, Garrett, McDougal, Mueller, and Rowe voted no. The motion was declared carried.

2008 BUDGET: Rochelle Jurgens explained revisions made to the 2008 budget since the Committee Meeting of the Board.

It was moved by Director McDougal, seconded by Director Petersen, that the Board approve the 2008 budget as explained. Upon voting on the motion, the following Directors voted therefore: R. Johnson, W. Johnson, Knoerzer, Lavene, McDougal, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, and Garrett. None voted no and the motion was declared carried.

MEDICARE SUPPLEMENT BIDS: One bid was received for Medicare Supplement Insurance from United American Insurance Co. The insurance has increased by $107/individual or 4.8%. Staff recommends accepting the bid from United American Insurance Co. which is the current carrier.

It was moved by Director Petersen, seconded by Director Nelson, that the Board accept the bid from United American Insurance Co. in the amount of $2,255 per individual. Upon voting on the motion, the following Directors voted therefore: W. Johnson, Knoerzer, Lavene, McDougal, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, and R. Johnson. None voted no and the motion was declared carried.

COOK PROPERTY LEASE BID: Only one bid was received and it was staff’s recommendation to offer the land to Peterson Land & Cattle Co. at the Board approved rate. The total cost of the land lease is $8,818.00.

It was moved by Director Dahlgren, seconded by Director Nelson, that the Board approve staff’s recommendation of offering the Cook property land lease to Peterson Land & Cattle at a total lease amount of $8,818.00. Upon voting on the motion, the following Directors voted therefore: Knoerzer, Lavene, McDougal, Mueller, Nelson, R. Olson, S. Olson, Petersen, Soneson, Bogle, Dahlgren, Garrett, R. Johnson, and W. Johnson. Director Rowe voted no. The motion was declared carried.

JOHNSON LAKE LAND LEASE BID: Staff recommends offering the lease to Kurt & Erin Kugler at the same per acre rate as the 2005 – 2007 lease. Total cost of the land lease is $8,702.75.

It was moved by Director Bogle, seconded by Director Nelson, that the Board approve leasing the Johnson Lake land to Kurt & Erin Kugler at a total cost of $8,702.75. Upon voting on the motion, the following Directors voted therefore: Lavene, McDougal, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, and Knoerzer. None voted no and the motion was declared carried.

CASUALTY INSURANCE PREMIUM REPORT: Greg Ham presented a review of the rates on the insurance premiums for 2007 and noted that the rates would decrease. The District will be going out for bids in 2008 for a three year term.

CONSERVATION DIRECTOR/IRRIGATION WATER MANAGEMENT SPECIALIST REPORT: Curtis Scheele, Irrigation Water Management Specialist (IWMS), gave a power point presentation on 2007 activities: 1) Environmental Quality Incentive Program (EQIP); 2) On Farm Field Demonstration; and 4) other activities.

Marcia Trompke, Conservation Director, reported on 1) the conservation sites; 2) the Nebraska Agricultural Water Management Demonstration Network (NAWMDN); 3) the subsurface drip irrigation sites; and 4) metering.

JEFFREY LAKE DEVELOPMENT, INC. V. CENTRAL – SEAWALL CASE: The appeal remains pending in the Nebraska Court of Appeals.

JEFFREY & MIDWAY V. CENTRAL: The plaintiffs have submitted a brief in support of their motion for summary judgment. The District’s brief in opposition must be filed on or before December 6.

HIXSON V. CENTRAL: The Court of Appeals has decided to dismiss the plaintiffs’ appeal. The District Court’s decision was affirmed by the Court November 27. The District Court had sustained the District’s motion for summary judgment, and dismissed the plaintiffs’ complaint. The Court of Appeals affirmed the District Court’s action.

PLATTE RIVER RECOVERY AND IMPLEMENTATION PROGRAM: The next meeting for the Program is December 11-12, 2007 in Denver. Also a conference call will be held on Wednesday regarding insurance bids.

PERSONNEL: Discussed in Closed Session.

BOARD COMMENTS: There were no comments.

DIRECTORS’ ATTENDANCE: All Directors were in attendance.

OPERATIONS REPORT: The following operations reports were presented:

a. Gary Bergsten reported that he continues to work on the 2008 budget and updating the reduction comparisons.

b. Kevin Boyd reported that the Surveillance Monitoring Plan has been filed and the District should soon have the exemption from the Bureau of Reclamation regarding the RRA forms for Glendo.

c. Cory Steinke reported on inflows and that Keystone diversion started today.

d. Jeff Buettner has been working on the grant from the Bureau of Reclamation for the Integrated Management Study. He also reported that a project tour was held for students from the Technical Agricultural School in Curtis.

e. Don Kraus reported that there will be more customer meetings and there will be a water users meeting in February.

At 2:01 PM, it was moved by Director Petersen, seconded by Director Nelson, that the Board go into Closed Session to discuss personnel Upon voting on the motion, the following Directors voted therefore: McDougal, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, and Lavene. None voted no and the motion was declared carried. President Knoerzer stated that the purpose of the Closed Session was to discuss personnel.

CLOSED SESSION

At 2:03 PM, it was moved by Director R. Olson, seconded by Director Garrett, that the Board return to Regular Session. Upon voting on the motion, the following Directors voted therefore: Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, and McDougal. None voted no and the motion was declared carried. President Knoerzer stated that the issue discussed in Closed Session was personnel.

PERSONNEL: It was moved by Director Petersen, seconded by Director Rowe, that the Board approve the personnel action discussed in Closed Session. Upon voting on the motion, the following Directors voted therefore: Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, McDougal, and Mueller, None voted no and the motion was declared carried.

It was moved by Director Garrett, seconded by Director Mueller, that the Board approve the Employment Agreements with Leonard France and William David Campbell as presented in Closed Session. Upon voting on the motion, the following Directors voted therefore: R. Olson, S. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, McDougal, Mueller, and Nelson. None voted no and the motion was declared carried.

The meeting adjourned at 2:05 PM.

ATTEST:  THE CENTRAL NEBRASKA PUBLIC POWER AND IRRIGATION DISTRICT

Doyle D. Lavene, Secretary
By William E. Knoerzer, President