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; 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; Michael C. Klein, Legal Counsel; Mike A. Drain, Natural Resources Manager; Robert J. McCormick, Legal Counsel; Rochelle A. Jurgens, Assist. Controller; Charles D. Brewster, Legal Counsel; Greg F. Ham, Purchasing Agent; Judy M. Hunt, Assistant Secretary; Cory A. Steinke, Civil Engineer

* * * * * * * *

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 January 9, 2008 were presented. It was moved by Director S. Olson, seconded by Director Dahlgren, that the Board approve the minutes of the January 9, 2008 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, 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 January 25, 2008 were presented. It was moved by Director W. Johnson, seconded by Director Petersen, that the Board approve the minutes of the January 25, 2008 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, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, and Bogle. None voted no and the motion was declared carried.

WATER SERVICE AGREEMENTS AND CANCELLATIONS: The following Water Service Agreements and Cancellations were presented for approval:

It was moved by Director Dahlgren, seconded by Director Nelson, that the Board approve the Water Service Agreements and Cancellations as presented. 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, Bogle, and Dahlgren. None voted no and the motion was declared carried.

CHANGE ORDER NO. 2 – CONTRACT PART 12, KLEINSCHMIDT ENERGY & WATER RESOURCE CONSULTANTS: Change Order No. 12 for Contract Part 12 with Kleinschmidt was presented for approval. The change order is for additional work outside the scope of service at a cost of $1,700.00.

It was moved by Director Petersen, seconded by Director R. Johnson, that the Board approve Change Order No. 2 for Contract Part 12, Kleinschmidt Energy & Water Resource Consultants in the amount of $1,700.00. 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, Bogle, Dahlgren, and Garrett. None voted no and the motion was declared carried.

CLOSURE OF CONTRACT PART 12 – KLEINSCHMIDT ENERGY & WATER RESOURCE CONSULTANTS: A letter from the General Manager to the Board of Directors dated February 4, 2008 was presented.

Gentlemen:

On March 6, 2006, a lump sum bid was awarded to Kleindschmidt Consultants, for the FERC Part 12 Inspection at a cost of $60,200.00. Two change orders were issued resulting in a net increase of $11,100.00 for a total contract amount of $71,300.00. Previous payments amounting to $62,848.80 were made, leaving a balance of $8,451.20.

All work has been completed, inspected and found to be satisfactory. We recommend payment in the amount of $8,451.20 be made to Kleinschmidt Consultants and Contract Part 12 be closed.

It was moved by Director Soneson, seconded by Director Mueller, that the Board authorize payment of $8,451.20 to Kleinschmidt Consultants and that Contract Part 12 be closed. Upon voting on the motion, the following Directors voted therefore: W. Johnson, Knoerzer, Lavene, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, and R. Johnson. None voted no and the motion was declared carried.

WATER SERVICE TRANSFERS: An exhibit showing the listing of Water Service Transfers for 2008 was presented and reviewed with the Board. Total acres for 2008 are 26,739.

It was moved by Director Nelson, seconded by Director Lavene, that the Board approve the Water Service Transfers as presented. Upon voting on the motion, the following Directors voted therefore: Knoerzer, Lavene, 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.

2008 WATER SCHEDULE: The Water Schedule for 2008 is as follows:

Phelps, E67 & E65 Canal Systems – 14 day rotation
1.5 AF contracts $31.92/acre for Amendments not signed, $26.49/acre signed Amendments.

Run	Dates	Phelps/E67	E65
1	6/24 to 7/07	0.14 AF	0.14 AF
2	7/08 to 7/21	0.14 AF	0.14 AF
3	7/22 to 8/04	0.14 AF	0.14 AF
4	8/05 to 8/18	0.14 AF	0.14 AF
		0.56 AF	0.56 AF

BIDS – TRACTOR, HOLDREGE: Three bids for a farm tractor were received on January 22, 2008 as follows:

*Low Bid
Staff is still investigating the tractor from Pfeifer’s Machinery Sales.

It was moved by Director R. Olson, seconded by Director Nelson, that the Board award the bid to Pfeifer’s Machinery Sales at a cost of $45,675.00 subject to further investigation by staff to insure that the tractor meets Central’s specifications. Upon voting on the motion, the following Directors voted therefore: Lavene, 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.

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

WORK ORDER/PURCHASE REQUISITION SUMMARY
February 4, 2008

1. Purchase Requisition HA5645 in the amount of $44,350.00 for CO2 Fire Extinguisher system (General Fire & Safety Equipment Company).

2. Construction Work Order 186502, in the amount of $45,114.00 for a used farm tractor, Holdrege.

a. Purchase Requisition HA5650, in the amount of 56,450.00 for CWO 186502 (Pfeifer’s Machinery Sales).

It was moved by Director R. Johnson, seconded by Director Petersen, that the Board approve the Work Order/Purchase Requisition Summary as presented. 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, and Lavene. None voted no and the motion was declared carried.

MULTIPLE LOT LEASE WAIVER – MICHAEL WRIGHT: Michael Wright has requested a multiple lot lease waiver as he is purchasing four lots for development. The Power and Recreation Committee recommends approval.

It was moved by Director Bogle, seconded by Director Mueller, that the Board approve the multiple lot lease waiver for Michael Wright as requested. 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, and Mueller. None voted no and the motion was declared carried.

REVISIONS TO LAKEVIEW ACRES LEASE AGREEMENT: Revisions to the Lakeview Acres Lease Agreement were reviewed with the Board. The reason for the revision is that the lease for the area between the deeded property and the water would not get transferred when someone sells their deeded lot as the agreement reads now. The new agreement would automatically terminate that lease agreement upon sale of the deeded land and this applies only to new lease agreements.

It was moved by Director R. Olson, seconded by Director S. Olson, that the Board approve the revisions to the Lakeview Acres Lease Agreement as presented. 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, Mueller, and Nelson. None voted no and the motion was declared carried.

GLENWOOD TOWER LEASE: A lease agreement with Glenwood Telecommunications, Inc. was reviewed at the Committee Meeting of the Board on January 25, 2008.. The agreement is for a room with an outside entrance and space on the existing communications tower at the Holdrege office.

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

JEFFREY LAKE DEVELOPMENT, INC. V. CENTRAL – SEAWALL CASE: The District’s appeal again appears on the Court of Appeals’ proposed call, now for March 18, 19 and 20. It is unlikely, from the number of cases on the current proposed call, that the case will be argued in March.

JEFFREY & MIDWAY V. CENTRAL: The plaintiffs’ motion for summary judgment remains under advisement in the District Court of Lincoln County.

AD HOC COMMITTEE – BOARD VACANCY: Applications for the Board vacancy have been received and the deadline for receiving applications is February 8, 2008. The Ad Hoc Committee will meet to review the applications and set up interviews with the candidates. Due to a relative of one of the Ad Hoc Committee members applying for the Director position, Director W. Johnson has recused himself.

It was moved by Director Lavene, seconded by Director R. Olson, that the Board authorize the President of the Board to appoint a replacement to the Ad Hoc Committee. Upon voting on the motion, the following Directors voted therefore: Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, Mueller, Nelson, R. Olson, and S. Olson. None voted no and the motion was declared carried.

BOARD RETREAT: Dates and location were discussed for a Board Retreat.

It was moved by Director S. Olson, seconded by Director Nelson, that the Board approve scheduling a Special Committee Meeting of the Board for Monday, March 17, 2008, to be held at the Johnson Building in Holdrege beginning at 9:00 AM. Upon voting on the motion, the following Directors voted therefore: Rowe, Soneson, Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Lavene, Mueller, Nelson, S. Olson, and Petersen. Director Bogle and R. Olson voted no. The motion was declared carried.

PLATTE RIVER RECOVERY AND IMPLEMENTATION PROGRAM: The next meeting of the Platte Program will be February 11-12, 2008 in Kearney. There was a Finance Committee conference call last Friday where discussion was held on developing the Land Action Committee reimbursement policy. One bid was received for the Whooping Crane monitoring program. Program insurance was also discussed. The Senate subcommittee has approved language regarding approval of the authorization of the Platte River Program and authorization of the Pathfinder modification project subject to the Wyoming Legislature approval.

PROPONENTS OF SOUND SCIENCE FOR LOWER PLATTE RIVER POLICY DECISIONS – INTERLOCAL AGREEMENT: The Interlocal Agreement for Proponents of Sound Science For Lower Platte River Policy Decisions was discussed in detail at the January 25, 2008 Committee Meeting of the Board.

It was moved by Director Petersen, seconded by Director Nelson, that the Board approve the participation by Central in the Interlocal Agreement as discussed with a cost of $5,000.00 and authorize Don Kraus to sign the agreement and to also authorize Don Kraus and Mark Peyton as representatives for the Central District. Upon voting on the motion, the following Directors voted therefore: Soneson, Bogle, 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.

PERSONNEL: There were no personnel items to discuss.

LEGISLATION: Legislative bills 924, 975 and 1041 will be up for hearing this week. LB924 is in regard to providing offsets to stream flow depletions and protection of those offsets. LB975 changes provisions relating to river flow enhancement bonds and repeal the original section. LB1041 is in regard to protecting water purchased or leased by the State and will present neutral testimony on LB 975. Staff is working with an NSIA/NWRA coalition to address the issues.

OUT OF STATE TRAVEL: The following out of state travel for February 2008 was approved by the General Manager.

BOARD COMMENTS: The following comment was presented: 1) questions were raised regarding an article on the website regarding the pipeline in eastern Colorado. More information will be provided at a later date.

DIRECTORS’ ATTENDANCE: All Directors were in attendance.

OPERATIONS REPORT: The following operations reports were presented:

a. Kevin Boyd reported on Gothenburg maintenance activities. He also reported that the Dam Break Analysis which is due at FERC has not been completed and an extension was requested. An update on the Part 12 Inspection was presented.

b. Mike Drain reported that there is a possibility of a trip to the Chicago FERC office regarding the Part 12 Inspection. He also reported that the Central Platte NRD is proposing paying some surface water users to cease using their surface water appropriation and convert to groundwater irrigation with a significant water credit.

c. Jeff Buettner reported that February 3rd was the last day for eagle viewing at the hydro plants.

d. Rochelle Jurgens reported that McDermott & Miller has begun the audit for 2007. She will also have a report on health care costs at the February Committee Meeting of the Board.

e. Frank Vetter reported that Johnson Lake bills were sent out on January 25th and billings for Lake McConaughy will go out on February 25, 2008.

f. Eric Hixson reported on the EPRI workshop he attended recently.

g. Cory Steinke reported that Lake McConaughy is at elevation 3216.6 which is 36% of capacity and 5.7 feet higher than this time last year.

At 10:33 AM, it was moved by Director R. Olson, seconded by Director Garrett, that the Board go into Closed Session to discuss double lots at Johnson Lake and the North Platte NRD Integrated Management Plan. Upon voting on the motion, the following Directors voted therefore: Bogle, 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. President Knoerzer stated that the purpose of the Closed Session was to discuss double lots at Johnson Lake and the North Platte NRD Integrated Management Plan.

CLOSED SESSION

At 10:53 AM, it was moved by Director Mueller, seconded by Director S. Olson, that the Board return to Regular 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, Rowe, Soneson, and Bogle. None voted no and the motion was declared carried. President Knoerzer stated that the issues discussed in Closed Session were double lots at Johnson Lake and the North Platte NRD Integrated Management Plan.

President Knoerzer announced that Dudley Nelson has been appointed to serve on the Ad Hoc Committee - Board Vacancy.

The meeting adjourned at 10:56 AM.

ATTEST:  THE CENTRAL NEBRASKA PUBLIC POWER AND IRRIGATION DISTRICT

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