This meeting was publicly advertised in accordance with Section 84-1411 of the Nebraska Statutes by a notice on Radio Station KUVR on June 25, 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 June 15, 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; Gordon N. Soneson

The following Directors were absent:
Geoffrey K. Bogle; Owen J. McDougal, Jr.

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

Others present:
Lori Potter, Kearney Hub; 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 June 1, 2007 were presented. After discussion, it was moved by Director Petersen, seconded by Director Lavene, that the Board approve the minutes of the June 1, 2007 Regular Business Meeting of the Board. Upon voting on the motion, the following Directors voted therefore: Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, 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 June 22, 2007 were presented. It was moved by Director Soneson, seconded by Director W. Johnson, that the Board approve the minutes of the June 22, 2007 Committee Meeting of the Board and approve the vouchers for payment. Upon voting on the motion, the following Directors voted therefore: Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, and Dahlgren. None voted no and the motion was declared carried.

PUBLIC INPUT: John Thorburn reported on 1) the dedicated observation well project; 2) Tri-Basin is working with the Twin Valley Weed Management Area downstream of Harlan County Dam on a project to address the riparian invasive vegetation problems; 3) the interns have begun working with Marcia Trompke; and 4) the Tri-Basin NRD is working on the Integrated Management Plan and a joint committee meeting will be scheduled between Tri Basin and Central.

BIDS – LUMBER: The following bids for lumber were received on June 21, 2007.

It was moved by Director S. Olson, seconded by Director Nelson, that the Board award the bid to KACO Supplies of Grand Island in the amount of $50,200.29. Upon voting on the motion, the following Directors voted therefore: R. Johnson, W. Johnson, Knoerzer, Lavene, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Dahlgren, and Garrett. None voted no and the motion was declared carried.

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

WORK ORDER/PURCHASE REQUISITION SUMMARY
June 1, 2007 – July 2, 2007

1. Purchase Requisition HA5615, in the amount of $50,200.29 for lumber (KACO Supplies, Grand Island).

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

WATER SERVICE AGREEMENTS & CANCELLATIONS: The following amendments to water service agreements were presented for approval.

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

RIGHT OF WAY TRANSACTIONS: The following was presented for approval.

(NOTE: This Application was executed in exchange for a replacement Permit to Construct. A Permit to Construct was approved on May 2, 1997, for the placement of a buried 10-inch pipeline and riser for transporting feedlot run-off water from the north side of the Phelps Main at Milepost 9.6 to the south side of the canal (SW¼ 19-8-19-Lester H. Nelson & Sons Inc., owner). The 1997 Permit to Construct contained a $100.00 annual fee. The replacement Permit to Construct has been executed by Lester H. Nelson & Sons Inc. for the same purpose as the 1997 Permit except it no longer contains the $100.00 annual fee.)

It was moved by Director Petersen, seconded by Director R. Johnson, that the Board approve the right of way transaction as presented above. Upon voting on the motion, the following Directors voted therefore: Lavene, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Dahlgren, Garrett, R. Johnson, W. Johnson, and Knoerzer. None voted no and the motion was declared carried.

PERMIT TO CONVEY SUMMARY: Three additional Permits to Convey Water were reviewed with the Board of Directors. There are a total of nine Permits to Convey Water for the year.

2007 BUDGET REVISIONS: The following revisions were presented to the Board of Directors, and discussed: 1) Salt Cedar Removal Project, 2) Control Tower Debris Removal, 3) Increase in Allocated Overhead for the Kingsley Division, and 4) the 13.8 Kv Bus Repair.

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

LAKE MCCONAUGHY LESSEES NEGOTIATIONS: This was discussed in Closed Session.

IRRIGATION RATES – 2008: Discussion was held regarding an increase in the 2008 irrigation rates.

It was moved by Director R. Johnson, seconded by Director Petersen, to direct staff to include an irrigation rate increase of $2.00 per acre in the 2008 budget and to conduct meetings with irrigators in the fall of 2007 regarding a rate increase beginning in 2008 with the final decision on an irrigation rate increase to be made in December 2007 and in conjunction with the 2008 budget approval.

It was moved by Director Lavene, seconded by Director Dahlgren, to table the motion until the September Board meeting. Upon voting on the motion, the following Directors voted therefore: Nelson, R. Olson, Dahlgren, Garrett, and Lavene voted yes. Directors R. Johnson, W. Johnson, Knoerzer, Mueller, S. Olson, Petersen, Rowe, and Soneson voted no. The motion failed.

It was moved by Director Petersen, seconded by Director Lavene, to amend the original motion to read:

“to direct staff to include an irrigation rate increase in the 2008 budget and to conduct meetings with irrigators in the fall of 2007 regarding a rate increase beginning in 2008 with the final decision on an irrigation rate increase to be made in December 2007 and in conjunction with the 2008 budget approval.”

Upon voting on the motion, the following Directors voted therefore: R. Olson, Petersen, Rowe, Soneson, Garrett, R. Johnson, W. Johnson, Knoerzer, and Mueller voted yes. Directors Dahlgren, Lavene, Nelson, and S. Olson voted no. The motion was declared carried.

CONTRACT WITH NEBRASKA DEPARTMENT OF ENVIRONMENTAL QUALITY – LAKE OGALLALA CIRCULATION: A dredging contract for Lake Ogallala with the Nebraska Department of Environmental Quality using Section 319 funds was presented for approval.

It was moved by Director Nelson, seconded by Director W. Johnson, that the Board approve the dredging contract with the Department of Environmental Quality as presented, subject to legal approval. Upon voting on the motion, the following Directors voted therefore: Petersen, Rowe, Soneson, Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, Mueller, Nelson, R. Olson, and S. Olson. None voted no and the motion was declared carried.

CONTRACT WITH OLSSON ASSOCIATES – LAKE OGALLALA CIRCULATION IMPROVEMENTS: A contract with Olsson Associates for engineering and survey work at Lake Ogallala was presented for approval.

It was moved by Director S. Olson, seconded by Director Lavene, that the Board approve the contract with Olsson Associates as presented, subject to legal review. Upon voting on the motion, the following Directors voted therefore: Rowe, Soneson, Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, Mueller, Nelson, R. Olson, S. Olson, and Petersen. None voted no and the motion was declared carried.

JEFFREY LAKE DEVELOPMENT, INC. V. CENTRAL – SEAWALL CASE: Briefs have been filed by the parties in the Nebraska Court of Appeals. The court will schedule the appeal for oral argument. Based upon the court’s current schedule, it is expected that oral argument will be scheduled in 12-15 months.

JEFFREY & MIDWAY V. CENTRAL: Discovery is continuing. The District has responded to the plaintiffs’ request for admissions, interrogatories and request for production of documents. The District will serve interrogatories and a request for production of documents on the plaintiffs.

HIXSON V. CENTRAL: The plaintiffs’ appeal remains pending in the Nebraska Court of Appeals.

PLATTE RIVER RECOVERY AND IMPLEMENTATION PROGRAM: A conference call was held last Friday and it was reported that the contract with Jerry Kenny has been finalized and that the contract with the Nebraska Community Foundation has been extended.

NORTH PLATTE NRD DISCUSSIONS: This was discussed in Closed Session.

PERSONNEL: There were no personnel actions.

BOARD COMMENTS: There were no Board comments.

DIRECTORS’ ATTENDANCE: It was moved by Director Petersen, seconded by Director Lavene, that the Board excuse the absence of Directors Bogle and McDougal from the Board Meeting. Upon voting on the motion, the following Directors voted therefore: Soneson, Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, Mueller, Nelson, R. Olson, S. Olson, Petersen, and Rowe. None voted no and the motion was declared carried.

Director Soneson left the meeting.

OPERATIONS REPORT: The following operations reports were presented:

a. Gary Bergsten reported the MOU pertaining to the 2001-2003 Audit by NPPD had been signed and a check had been sent to NPPD. The Audit for 2004-2006 began about 10 days after previous MOU was signed. Also work is still ongoing on the 2006 Kingsley Division Reconciliation.

b. Kevin Boyd reported that work on bank repairs after the heavy rains is almost complete and irrigation meters are ready for the irrigation season. He also reported some of the wiring at J-1 is being replaced and that tiles at J-2 are being replaced and there were some cooling problems at J-2.

c. Dave Ford reported on the beginning of the irrigation season, E65 is at capacity and Phelps is at 480 cfs.

d. Tim Anderson reported that a lot of compliments have been received regarding the water placed in Elwood Reservoir.

e. Marcia Trompke reported that there may be more money coming through EQIP for the salt cedar project.

f. Cory Steinke reported on inflows and Lake McConaughy is at elevation 3218.3. Johnson Lake is at elevation 3217.8 and that some of the Environmental Account water was released last Thursday.

g. Don Kraus discussed a Power and Recreation Committee meeting date. The meeting is scheduled for July 25, 2007 at 9:30 AM. Also an Irrigation Committee meeting was scheduled for July 13, 2007 at 10:00 AM.

At 10:29 AM, it was moved by Director R. Olson, seconded by Director Lavene, that the Board go into Closed Session to discuss Lake McConaughy Lessees negotiations and North Platte NRD discussions. Upon voting on the motion, the following Directors voted therefore: Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, Mueller, Nelson, R. Olson, S. Olson, Petersen, and Rowe. None voted no and the motion was declared carried. President Knoerzer stated that the purpose of the Closed Session was to discuss Lake McConaughy Lessees negotiations and North Platte NRD discussions.

CLOSED SESSION

At 11:29 AM, it was moved by Director Petersen, seconded by Director Garrett, that the Board return to Regular Session. Upon voting on the motion, the following Directors voted therefore: Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, and Dahlgren. None voted no and the motion was declared carried. President Knoerzer state that the issues discussed in Closed Session were Lake McConaughy Lessees negotiations and North Platte NRD discussions.

LAKE MCCONAUGHY LESSEES NEGOTIATIONS: It was moved by Director Garrett, seconded by Director Rowe, to instruct the General Manager to make a counteroffer to Lake McConaughy Lessees, Inc. per the discussion held in Closed Session. Upon voting on the motion, the following Directors voted therefore: Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, Mueller, Nelson, R. Olson, S. Olson, Petersen, and Rowe. None voted no and the motion was declared carried.

The meeting adjourned at 11:32 AM.

ATTEST:  THE CENTRAL NEBRASKA PUBLIC POWER AND IRRIGATION DISTRICT

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