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

*Arrived late

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.; Tim W. Anderson, Public Relations Mgr.; Mike A. Drain, Natural Resources Manager; Robert J. McCormick, Legal Counsel; Rochelle A. Jurgens, Assist. Controller; Charles D. Brewster, Legal Counsel; 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 December 3, 2007 were presented. It was moved by Director Petersen, seconded by Director Bogle, that the Board approve the minutes of the December 3, 2007 Regular Business Meeting of the Board. Upon voting on the motion, the following Directors voted therefore: Bogle, Garrett, R. Johnson, W. Johnson, Knoerzer, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, and Soneson. None voted no and the motion was declared carried.

The minutes of the Special Meeting of the Board held December 28, 2007 were presented. It was moved by Director R. Johnson, seconded by Director S. Olson, that the Board approve the minutes of the December 28, 2007 Special Meeting of the Board. Upon voting on the motion, the following Directors voted therefore: Garrett, R. Johnson, W. Johnson, Knoerzer, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, and Bogle. None voted no and the motion was declared carried.

The minutes of the Committee Meeting of the Board held December 28, 2007 were presented. It was moved by Director Nelson, seconded by Director S. Olson, that the Board approve the minutes of the December 28, 2007 Committee Meeting of the Board and approve the vouchers for payment. Upon voting on the motion, the following Directors voted therefore: R. Johnson, W. Johnson, Knoerzer, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Bogle, and Garrett. 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:

Director Lavene arrived at the meeting.

It was moved by Director S. Olson, 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: W. Johnson, Knoerzer, Mueller, Nelson, R. Olson, S. Olson, Petersen, Rowe, Soneson, Bogle, Garrett, and R. Johnson. Director Lavene abstained. None voted no and the motion was declared carried.

RIGHT OF WAY TRANSACTIONS: The following right of way transactions were presented for approval:

Director Dahlgren arrived at the meeting.

It was moved by Director Petersen, seconded by Director R. Olson, that the Board approve the Right of Way Transactions as presented above. 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.

BIDS – CHEMICALS: The following bids for chemicals were received on December 21, 2007 as follows:

*Low bid
**Bid only one item

It was moved by Director W. Johnson, seconded by Director Nelson, that the Board award the bid to Van Diest Supply Co. of McCook, NE, in the amount of $39,962.70. 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.

BIDS – VEHICLES: Bids for vehicles were received on December 11, 2007 as follows:

*Low bid
**Did not meet specs

It was moved by Director Bogle, seconded by Director Lavene, that the Board award the bids to the low bidders as highlighted above. 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.

BIDS – KINGSLEY CO2 SYSTEM: Bids for the Kingsley Hydro CO2 system were received on December 19, 2007 as follows:

*Low bid

It was moved by Director Petersen, seconded by Director Mueller, that the Board award the bid to General Fire & Safety Equipment of Lincoln, NE, in the amount of $44,350.00. 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.

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

WORK ORDER/PURCHASE REQUISITION SUMMARY
January 9, 2008

1. Purchase Requisition HA5633 in the amount of $30,624.00 for Clearigate (Van Diest Supply).

2. Construction Work Order 186789 in the amount of $17,557.00 for one program SUV utility vehicle, Holdrege Administration.

a. Purchase Requisition HA5636 in the amount of $17,046.00 for CWO 186789 (Pony Express Chevrolet).

3. Construction Work Order 186790 in the amount of $22,701.00 for one program pickup, Holdrege Administration.

a. Purchase Requisition HA5637 in the amount of $22,040.00 for CWO 186790 (Janssen & Sons Ford).

4. Construction Work Order 186501 in the amount of $19,673.00 for one program pickup, Holdrege Irrigation.

a. Purchase Requisition HA5638 in the amount of $19,100.00 for CWO 186501 (Pony Express Chevrolet).

5. Construction Work Order 107253 in the amount of $27,404.00 for one program pickup, Hydro Division.

a. Purchase Requisition HA5641 in the amount of $19,094.00 for CWO 107253 (Janssen & Sons Ford).

6. Construction Work Order 107254 in the amount of $19,395.00 for one program pickup, Hydro Division.

a. Purchase Requisition HA5639 in the amount of $17,500.00 for CWO 107254 (Janssen & Sons Ford).

7. Construction Work Order 107255 in the amount of $25,487.00 for one program pickup, Hydro Division.

a. Purchase Requisition HA5640 in the amount of $22,930.00 for CWO 107255 (Janssen & Sons Ford).

8. Purchase Requisition HA5643 in the amount of $39,962.70 for chemicals (Van Diest Supply).

9. Construction Work Order 2107159 in the amount of $69,839.00 for Kingsley Hydro CO2 System.

It was moved by Director Bogle, seconded by Director Dahlgren, that the Board approve the Work Order/Purchase Requisition Summary 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.

Two Purchase Requisitions were in error with the correct amounts as follows - (HA5636 - $15,800.00 and HA5637 - $20,050.00). The cost was lower than the amount reported to the Board.

JOHNSON LAKE LOT RECLASSIFICATION AND EXHIBIT A TO LEASE AGREEMENT: Staff recommends reclassifying 120 Mallard Beach from a Tier 4 lot to a Tier 1 lot, include a hardship clause in the new lease agreement and revise Exhibit A to the lease to indicate the change from a Tier 4 lot to a Tier 1 lot for 120 Mallard Beach.

It was moved by Director Soneson, seconded by Director Petersen, that the Board approve the lot reclassification for 120 Mallard Beach from a Tier 4 lot to a Tier 1 lot, include a hardship clause in the new lease agreement and revise Exhibit A to the lease to indicate the change from a Tier 4 lot to a Tier 1 lot for 120 Mallard Beach. 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.

HARDSHIP REQUESTS: The Power and Recreation Committee recommended approval of the hardship requests for 2008.

It was moved by Director Bogle, seconded by Director Rowe, that the Board approve the hardship requests for 2008 as recommended by the Power and Recreation 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.

REAL ESTATE LEASES: The following real estate leases were presented for approval:

It was moved by Director Nelson, seconded by Director Dahlgren, that the Board approve the real estate leases as presented above. Upon voting on the motion, the following Directors voted therefore: Rowe, Soneson, Bogle, 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.

BYLAWS REVISION: The following revision to page 13 of the bylaws was presented for approval:

The Controller and his assistants shall receive such compensation as recommended approved by the General Manager and approved by the Board of Directors. The Controller and such of his assistants as are authorized to sign checks and certify their correctness, shall each give a fidelity bond with a corporate surety in such amounts, and in such form, as the Board of Directors may determine, conditioned upon the faithful performance of his duties, which bond shall be filed with the Secretary. The District shall handle the administrative details of the bond application and shall pay the premium thereon.

It was moved by Director Garrett, seconded by Director Petersen, that the Board approve the Bylaws revision as presented. 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.

COMPENSATION POLICY – DECISION MAKING AUTHORITY: The following revision to the Compensation Policy – Decision Making Authority was presented for approval:

Compensation Policy - Decision Making Authority
Approved Revised by Board on July 7, 1997 January 9, 2008

The Board of Directors hereby vests in the General Manager authority to make the following decisions as to employee compensation for hourly and salaried personnel (except for the General Manager):

--Determination of control points for hourly job classifications.
--Determination of control levels for salary job classifications.
--All step/grade changes.
--All budgeted bonuses.
--Approval for hiring a new employee when the employee is filling a replacement hourly position as a result of an employee transfer, promotion, retirement, resignation, or termination (including replacements of seasonal employees).
--Compensation of the Controller

The Board of Directors hereby retains the authority to make all other decisions as to employee compensation for hourly and salaried personnel including, but not limited to, the following:

--Adjustments to the Hourly Wage Rate Schedule.
--Adjustments to the Salaried Wage Rate Schedule.
--Approval of total payroll adjustments as a part of the annual budget.
--Final approval of hiring new employees and setting their starting grade/step unless the employee is filling a replacement hourly position as a result of an employee transfer, promotion, retirement, resignation or termination (including replacement of seasonal employees).
--Compensation of the General Manager.
--Compensation of the Controller.

It was moved by Director Nelson, seconded by Director Soneson, that the Board approve the revised Compensation Policy – Decision Making Authority as presented. 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.

SAFETY PROGRAM: It was proposed that a consultant be hired for the Central District Safety Program. The consultant will attend meetings, provide training, and inspect all District facilities. One proposal from Common Sense Safety from Cozad has been received at a cost of $12,000.00 per year. Kevin Boyd reported on insurance issues. Discussion was held regarding the agreement stating that full payment be made up front.

It was moved by Director Bogle, seconded by Director Petersen, that the Board approve hiring Common Sense Safety from Cozad for one year for the Safety Program, subject to staff’s review of an appropriate payment schedule. 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.

JEFFREY LAKE DEVELOPMENT, INC. V. CENTRAL – SEAWALL CASE: There were no changes since the Committee Meeting of the Board.

JEFFREY & MIDWAY V. CENTRAL: There were no changes since the Committee Meeting of the Board.

HIXSON V. CENTRAL: It was reported that a filing by Hixson was reported in the Lexington Clipper.

RESOLUTION 08-1: The following resolution was presented for approval:

RESOLUTION 08-1

WHEREAS, the Directors of The Central Nebraska Public Power and Irrigation District wish to convey appreciation to Owen J. McDougal, Jr. for his service on the Board of Directors, and

WHEREAS, Mr. McDougal served as a member of the Board from 1991 through 2007, and

WHEREAS, Mr. McDougal served as Treasurer during seven years of his term as Director of The Central Nebraska Public Power and Irrigation District.

THEREFORE BE IT RESOLVED that the Members of the Board wish to take this means to express sincere appreciation for his contributions to the Board and to the Central District.

It was moved by Director Garrett, seconded by Director Lavene, that the Board approve Resolution 08-1 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.

PLATTE RIVER RECOVERY AND IMPLEMENTATION PROGRAM: The next Governance Committee meeting will be held February 12-13, 2008 in Kearney.

PERSONNEL: It was moved by Director R. Olson, seconded by Director Petersen, that the Board approve the personnel action as presented in Closed Session at the Committee Meeting of the Board. 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.

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 is still working on investments.

b. Kevin Boyd reported on 1) work at J-2; 2) a new heat pump was installed in the Gothenburg office; 3) bank repair south of Brady; 4) tree burning at Jeffrey Island; and 5) bids were awarded for the two Federal Aid bridges between Gothenburg and Brady.

c. Mike Drain reported that Lake McConaughy is at elevation 3214.7 which is 34% of capacity and he also reported on snow pack. He updated the Board on Keystone diversions going into Sutherland Reservoir.

PUBLIC INPUT: John Thorburn reported that the joint Tri-Basin NRD/Central meeting has been scheduled for January 24 at 1:00 PM. The Holdrege Water Conference was also mentioned.

d. Dave Ford reported that Jim Bennett will be retiring this month and a retirement party will be held on January 24 in Bertrand at 3:00 PM at the City Hall. He also reported on the Tri-Basin NRD meeting which he attended.

e. Tim Anderson reported that the Nebraska Legislature is now in session.

f. Jeff Buettner reported on the Holdrege Water Conference to be held on January 31 at the Phelps County Ag Center.

g. Eric Hixson reported that Kingsley had cooling water problems and it was switched from deep well water to penstock water.

h. Don Kraus reported that a fully executed copy of the Interim Water Service Contract No. 089E6A0061 was received from the Bureau of Reclamation. Discussion was also held about scheduling a Board Retreat.

At 9:45 AM, it was moved by Director Lavene, seconded by Director S. Olson, that the Board go into Closed Session to discuss personnel. 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. President Knoerzer stated that the purpose of the Closed Session was to discuss personnel.

CLOSED SESSION

At 9:55 AM, it was moved by Director Garrett, seconded by Director Petersen, that the Board return to Regular Session. 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. President Knoerzer stated that the only issue discussed in Closed Session was personnel.

The meeting adjourned at 10:17 AM.

ATTEST:  THE CENTRAL NEBRASKA PUBLIC POWER AND IRRIGATION DISTRICT

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