This meeting was publicly advertised in accordance with Section 84-1411 of the Nebraska Statutes by a notice on Radio Station KUVR on February 25, 2008, 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 February 15, 2008.

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

The following Directors were absent:
William E. Knoerzer, President; K. Scott Olson

Also present were the following:
Don D. Kraus, General Manager; Tim W. Anderson, Public Relations Mgr.; Kevin M. Boyd, Gothenburg Division Mgr.; David R. Ford, Irrigation Division Mgr.; Jeff J. Buettner, Info. & Comm. Officer; Van D. Fastenau, Customer Service Supervisor; Frank C. Vetter, Real Estate Administrator; Michael C. Klein, Legal Counsel; Rochelle A. Jurgens, Assist. Controller; Robert J. McCormick, Legal Counsel; Greg F. Ham, Purchasing Agent; Charles D. Brewster, Legal Counsel; Cory A. Steinke, Civil Engineer; Judy M. Hunt, Assistant Secretary

Others present:
Lori Potter, Kearney Hub; Rich Holloway, Tri-Basin NRD; Senator Tom Carlson, District 38

* * * * * * * *

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

At 9:00 AM, the Board Vice President, Robert L. Petersen, announced that the meeting was open for business and proceeded with roll call.

The minutes of the Regular Business Meeting of the Board held February 4, 2008 were presented. It was moved by Director Lavene, seconded by Director Mueller, that the Board approve the minutes of the February 4, 2008 Regular Business Meeting of the Board. Upon voting on the motion, the following Directors voted therefore: Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Lavene, Mueller, Nelson, R. Olson, Petersen, Rowe, and Soneson. None voted no and the motion was declared carried.

The minutes of the Committee Meeting of the Board held February 22, 2008 were presented. It was moved by Director W. Johnson, seconded by Director R. Johnson, that the Board approve the minutes of the February 22, 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, Lavene, Mueller, Nelson, R. Olson, Petersen, Rowe, Soneson, and Bogle. None voted no and the motion was declared carried.

PUBLIC INPUT: There was no public input.

INFORMAL BIDS – VEHICLES: Informal bids for vehicles were received on February 28, 2008 as follows:

It was moved by Director R. Olson, seconded by Director Dahlgren, that the Board rescind action taken at the January 9, 2008 Board meeting to accept the bid from Janssen & Sons Ford for the two 2007 pickups. Upon voting on the motion, the following Directors voted therefore: Garrett, R. Johnson, W. Johnson, Lavene, Mueller, Nelson, R. Olson, Petersen, Rowe, Soneson, Bogle, and Dahlgren. None voted no and the motion was declared carried.

It was moved by Director R. Johnson, seconded by Director Lavene, that the Board award the bid received on February 28, 2008 for two 2008 Ford pickups to Janssen & Sons Ford, Holdrege, Nebraska in the amounts of $23,600.00 and $20,980.00. Upon voting on the motion, the following Directors voted therefore: R. Johnson, W. Johnson, Lavene, Mueller, Nelson, R. Olson, Petersen, Rowe, Soneson, Bogle, and Garrett. Director Dahlgren voted no. The motion was declared carried.

CLOSURE OF CONTRACT 0-624 – SIEMENS POWER TRANSMISSION & DISTRIBUTION, INC.: A letter from the General Manager to the Board of Directors dated March 3, 2008 was presented.

Gentlemen:

On September 4, 2007, Contract No. 0-624 was awarded to Siemens Power Transmission & Distribution, Inc. for the J-2 circuit breaker at a total cost of $58,869.00.

The equipment has been delivered, inspected and found to be satisfactory. We recommend payment in the amount of $58,869.00 be made to Siemens Power Transmission & Distribution, Inc. and Contract 0-624 be closed

It was moved by Director Soneson, seconded by Director Nelson, that the Board approve payment of $58,869.00 to Siemens Power Transmission & Distribution, Inc. and that Contract 0-624 be closed. Upon voting on the motion, the following Directors voted therefore: W. Johnson, Lavene, Mueller, Nelson, R. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, and R. Johnson. None voted no and the motion was declared carried.

WATER SERVICE TRANSFERS: Exhibit A (attached), listing the Water Service Transfers, was presented for approval. The total of the transfer acres is 55.0.

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

REAL ESTATE TRANSACTIONS: The following real estate transactions were presented for approval:

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

PAYMENT FOR FEDERAL AID BRIDGE: The budget for 2008 includes funds for bridge replacements on the Supply Canal. A statement has been received for Central’s share of the 32.2 bridge which is to be constructed in March in the amount of $81,935.42. The total cost of the bridge is $509, 189.44.

It was moved by Director R. Johnson, seconded by Director R. Olson, that the Board approve payment of $81,935.42 for the 32.2 bridge replacement on the Supply Canal. Upon voting on the motion, the following Directors voted therefore: Nelson, R. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Lavene, and Mueller. None voted no and the motion was declared carried.

COMBINING LEASES – JOHNSON LAKE: The requests for combining lots at Johnson Lake were discussed. A draft of a motion for consideration by the Board was distributed but a number of questions arose regarding lease fees. This item was deferred until after Senator Carlson’s review of legislation with the Board.

LEGISLATION: Senator Tom Carlson, District 38, updated the Board on legislation. Some of the bills discussed were LB1094, LB924, LB609, LB801, the death penalty bill, the no smoking bill, and the helmet repeal bill.

COMBINING LEASES – JOHNSON LAKE CONTINUED: Discussion continued on combining leases at Johnson Lake.

At 10:29 AM, it was moved by Director R. Olson, seconded by Director Bogle, that the Board go into Closed Session to discuss potential litigation. Upon voting on the motion, the following Directors voted therefore: R. Olson, Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Lavene, Mueller, and Nelson. None voted no and the motion was declared carried. President Knoerzer stated that the purpose of the Closed Session was to discuss potential litigation.

CLOSED SESSION

At 11:05 AM, it was moved by Director R. Olson, seconded by Director Mueller, that the Board return to Regular Session. Upon voting on the motion, the following Directors voted therefore: Petersen, Rowe, Soneson, Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Lavene, Mueller, Nelson, and R. Olson. None voted no and the motion was declared carried. President Knoerzer stated that the issues discussed in Closed Session were potential litigation.

It was moved by Director Lavene, seconded by Director W. Johnson, that the agenda item for combining leases at Johnson lake be delayed until clarification is brought back to the Board by the Power and Recreation Committee. Upon voting on the motion, the following Directors voted therefore: Soneson, Bogle, Dahlgren, Garrett, W. Johnson, Lavene, Mueller. Directors R. Johnson, Nelson, R. Olson, Petersen, and Rowe voted no. The motion was declared carried.

AGRICULTURAL LEASES: The following agricultural leases were reviewed with the Board. The leases are for the term of March 1, 2008 through February 28, 2011.

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

BYLAWS AMENDMENT: The following amendment to the District Bylaws was presented for approval:

SECTION 12. Board of Directors Expenses and Compensation:
Each member of the Board of Directors shall be paid his or her actual expenses, while engaged in the business of the District under the authority of the Board of Directors. In addition, Effective January 1, 2001, in addition, each member of the Board of Directors shall be compensated for his or her services to the District at One Hundred Seventy Five Dollars ($175.00) per day for every regular or special meeting of the Board of Directors attended by such member and for every meeting of a duly appointed committee of the Board of Directors attended by such member, including all meetings held by means of electronic or telecommunication equipment. Provided, if more than one meeting is held in a single day, then such compensation shall be for only one of the meetings. Provided further, except as to the President, such compensation shall not exceed Five Thousand Eight Hundred Dollars ($5,800.00) per year per member, and as to the President, such compensation shall not exceed Six Thousand Four Hundred Dollars ($6,400.00) per year, Effective January 1, 2002, each member of the Board of Directors shall be compensated for his or her services to the District at Two Hundred Dollars ($200.00) per day for every regular or special meeting of the Board of Directors attended by such member and for every meeting of a duly appointed committee of the Board of Directors attended by such member, including all meetings held by means of electronic or telecommunication equipment. Provided, if more than one meeting is held in a single day, then such compensation shall be for only one of the meetings. Provided further, except as to the President, such compensation shall not exceed Six Thousand Seven Hundred Twenty Dollars ($6,720.00) per year per member, and as to the President, such compensation shall not exceed Seven Thousand Five Hundred Sixty Dollars ($7,560.00) per year.

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

JEFFREY LAKE DEVELOPMENT, INC. V. CENTRAL – SEAWALL CASE: The Court of Appeals scheduled the District’s appeal for oral argument on March 19 at 9:00 AM in the Court of Appeals courtroom in Lincoln.

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

CONJUNCTIVE MANAGEMENT STUDY: An agreement for the Conjunctive Management Study was presented for approval. The agreement states that Central would contract with the Interlocal Cooperative Agreement for development of conjunctive management tools by HDR with the same financial limits of $107,610.00 plus $5,000.00 for work by Lee Wilson which was approved at the December 3, 2007 Board meeting.

It was moved by Director R. Olson, seconded by Director Bogle, that the Board approve the agreement to contract for securing the conjunctive model work for the Conjunctive Management Study, subject to legal review. Upon voting on the motion, the following Directors voted therefore: Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Lavene, Mueller, Nelson, R. Olson, Petersen, Rowe, and Soneson. None voted no and the motion was declared carried.

NORTH PLATTE NRD INTEGRATED MANAGEMENT PLAN: There was a meeting regarding the North Platte NRD Integrated Management Plan on February 28th in Scottsbluff with the discussion focused on goals and objectives.

AD HOC COMMITTEE – BOARD VACANCY: The Ad Hoc Committee presented a recommendation for the replacement for the board vacancy created by the resignation of Jim McDougal.

It was moved by Director R. Johnson, seconded by Director Nelson, that the Board appoint Mr. Neal Hoff of Hastings as the new director from Adams County. Upon voting on the motion, the following Directors voted therefore: Dahlgren, Garrett, R. Johnson, W. Johnson, Lavene, Mueller, Nelson, R. Olson, Petersen, Rowe, Soneson, and Bogle. None voted no and the motion was declared carried.

Mr. Hoff will be seated as a Director of the Central District Board as soon as possible.

PLATTE RIVER RECOVERY AND IMPLEMENTATION PROGRAM: A conference call was held last week regarding the EA bypass agreement and insurance.

PERSONNEL: There were no personnel matters.

BOARD COMMENTS: There were no Board comments.

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

OPERATIONS REPORT: The following operations reports were presented:

a. Kevin Boyd reported on the status of the Kingsley Dam Break Analysis.

b. Dave Ford reported that the Irrigation Service Specialists have completed water scheduling and he also reported on bridge work.

c. Jeff Buettner updated the Board on the Panhandle Tour and reported that more seats are available for the tour. He also reported that the Kearney Area Chamber of Commerce tour for this summer will be the first week of June.

d. Cory Steinke reported that Lake McConaughy is at elevation 3219.5 which is 5.7’ higher than this time last year.

e. Don Kraus reported that there is a COHYST meeting on Tuesday, March 4th in Grand Island.

The meeting adjourned at 11:30 AM.

ATTEST:  THE CENTRAL NEBRASKA PUBLIC POWER AND IRRIGATION DISTRICT

Doyle D. Lavene, Secretary
ByWilliam E. Knoerzer, President