This meeting was publicly advertised in accordance with Section 84-1411 of the Nebraska Statutes by a notice on Radio Station KUVR on April 30, 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 April 20, 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; Gordon N. Soneson

The following Director was absent:
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; Michael C. Klein, Legal Counsel; Mike A. Drain, Natural Resources Manager; Charles D. Brewster, 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; Randy Cromer, Brady; Bob Mann, Brady

* * * * * * * *

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 Special Committee Meeting of the Board held March 30, 2007 were presented. It was moved by Director Petersen, seconded by Director Garrett, that the Board approve the minutes of the March 30, 2007 Special Committee 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 Regular Business Meeting of the Board held April 2, 2007 were presented. It was moved by Director W. Johnson, seconded by Director Nelson, that the Board approve the minutes of the April 2, 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, Soneson, and Bogle. None voted no and the motion was declared carried.

The minutes of the Committee Meeting of the Board held April 27, 2007 were presented. It was moved by Director R. Johnson, seconded by Director Lavene, that the Board approve the minutes of the April 27, 2007 Committee Meeting of the Board with a correction 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, Bogle, and Dahlgren. None voted no and the motion was declared carried.

PUBLIC INPUT: John Thorburn reported on recent rainfall events, flooding, and drainage projects.

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

WORK ORDER/PURCHASE REQUISITION SUMMARY
April 2, 2007 – May 7, 2007

1. Purchase Requisition G2022, in the amount of $20,417.86 for parts and labor to repair C-37 Loader (Nebraska Machinery Company).

It was moved by Director S. Olson, 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: 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.

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

It was moved by Director R. Olson, seconded by Director Mueller, that the Board approve the Water Service Agreements 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, Dahlgren, Garrett, and R. Johnson. Director Lavene abstained. 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 382.0.

It was moved by Director Nelson, seconded by Director S. Olson, 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, Dahlgren, Garrett, R. Johnson, and W. Johnson. Director Bogle voted no. The motion was declared carried.

REVISIONS TO EMPLOYEE HANDBOOK: The Administration Committee recommends approval of the revisions to the Employee Handbook which were part of the Management/Union Negotiations approved in December.

It was moved by Director Garrett, seconded by Director Lavene, that the Board approve the revisions to the Employee Handbook as presented. 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.

EASEMENT EXTENSION – BONNIE NEMECEK: The Power and Recreation Committee recommends Board approval of the request for a one year extension of the Grant of Easement for Ms. Nemecek (Bayside Investments, L.L.C.) as presented at the Committee Meeting of the Board.

It was moved by Director R. Olson, seconded by Director Bogle, that the Board approve the one year extension of the easement for Bonnie Nemecek 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.

EXHIBIT B – AREA ASSOCIATION AGREEMENT: A revision of Exhibit B of the agreement with the area lake association at Johnson Lake was presented with changes to address the types of failure to pay which would be considered a default.

It was moved by Director Soneson, seconded by Director Mueller, that the Board approve Exhibit B as presented. 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.

POWER AND RECREATION COMMITTEE REPORT: Director Petersen reported on the Power and Recreation Committee meeting held May 4, 2007:

a. FGJ Enterprises (Medo’s): This was discussed in Closed Session.

b. Possible New Leases for Combining Lots and Other Purposes: Potential changes to leases to address issues with cabin owners who have two or more lot leases were discussed.

JEFFREY LAKE DEVELOPMENT, INC. V. CENTRAL – SEAWALL CASE: The District’s appeal concerning conditions the District may require for improvements on District property off the leased premises remains pending in the Nebraska Court of Appeals.

JEFFREY & MIDWAY V. CENTRAL: The District has responded to a part of the discovery requests of the Plaintiffs; discovery is continuing.

HIXSON V. CENTRAL: The Nebraska Court of Appeals has not yet scheduled the Plaintiffs’ appeal for oral argument.

PUMPKIN CREEK: Counsel continues to review and research options for administrative action to protect the water supply for Lake McConaughy.

CHANGE DATE OF MAY 25, 2007 COMMITTEE MEETING OF THE BOARD: After discussion, it was moved by Director Garrett, seconded by Director R. Olson, that the Board approve changing the date of the Committee Meeting of the Board, from Friday, May 25, 2007 to Thursday, May 24, 2007, at the Sandhills Convention Center in North Platte to begin at 1:30 PM. 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.

PLATTE RIVER RECOVERY & IMPLEMENTATION PROGRAM: A report on the Governance Committee meeting in Denver on May 1-2, 2007 was presented. Jerry Kenny of HDR was selected as the new Executive Director. Also discussed was a letter from the Governor of Wyoming concerning Senate bill 752 and House bill 1462. In that letter the petition for abandonment of the storage space needed for the Pathfinder Modification Project filed by the town of Saratoga was discussed.

SOUTH PLATTE GROUP: This was discussed in Closed Session

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

LAKE MCCONAUGHY LESSEES PROPOSAL: Discussion was held regarding the proposal presented by the Lake McConaughy Lessees asking that the lessees be allowed to purchase their leased lots. Staff recommends that Central not pursue this approach.

It was moved by Director Garrett, seconded by Director S. Olson, that the Board reject the offer from Lake McConaughy Lessees. 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.

LAKE MCCONAUGHY LESSEES, INC.: This was discussed in Closed Session.

PERSONNEL: There were no personnel matters.

BOARD COMMENTS: The following Board comments were presented: 1) questions were raised concerning the news article about Nebraska Public Power District putting a call on the Niobrara River; and 2) comments were made concerning a letter which appeared in the Kearney Hub recently.

DIRECTORS’ ATTENDANCE: It was moved by Director R. Johnson, seconded by Director Nelson, that the Board excuse the absence of Director McDougal from the Board Meeting. 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.

OPERATIONS REPORT: The following operations reports were presented:

a. Gary Bergsten reported that he has started on the 2006 reconciliation.

b. Kevin Boyd reported on the latest rainfall event upstream of Jeffrey Lake and that trash has flowed into the Jeffrey forebay. The trash is being removed with a mobile crane. He also has received notice from the Department of Roads concerning approvals for two bridges in Lincoln County in the Federal Aid Program. Bids will go out this fall on the bridge replacements. Discussion was held on Central digging a trench in Lake Ogallala to improve circulation for the trout.

c. Mike Drain reported on the process that has been going on for the past three years on the application for the amendment to the description of the District project in the FERC license. FERC has called and said that there is a complication with the application. Mike will be traveling to Washington DC on May 17, 2007 to discuss the situation.

d. Van Fastenau reported that the water service transfers were advertised and included a transfer for Doyle Lavene of 235 acres which was added after the Board approved the process.

e. Dave Ford reported on the observation wells and a video was shown of the cleaning of the E65 siphon using the pigging process.

f. Marcia Trompke reported that the ammonia applied to the fields changes to nitrates rather quickly because of all the rain and suggested that soil samples be taken to make sure there is nitrogen in the soil.

g. Tim Anderson reported that the legislative session is winding down. LB 564 is in final reading and LB 701 was signed by the Governor.

h. Cory Steinke reported on snow pack, inflows and the elevation of Lake McConaughy is 3219.1.

i. Don Kraus reported that he will be on vacation May 17, 18 and 21, 2007.

At 10:24 AM, it was moved by Director R. Olson, seconded by Director Lavene, that the Board go into Closed Session to discuss Medo’s Resort, Pumpkin Creek, South Platte Group, North Platte NRD discussions, and Lake McConaughy Lessees, Inc.. 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. President Knoerzer stated that the purpose of the Closed Session was to discuss Medo’s Resort, Pumpkin Creek, South Platte Group, North Platte NRD discussions, and Lake McConaughy Lessees, Inc.

CLOSED SESSION

At 11:46 AM, it was moved by Director Bogle, seconded by Director Mueller, that the Board return to Regular Session. 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. President Knoerzer state that the issues discussed in Closed Session were Medo’s Resort, Pumpkin Creek, South Platte Group, North Platte NRD discussions, and Lake McConaughy Lessees, Inc.

FGJ ENTERPRISES (MEDO’S RESORT): It was moved by Director Garrett, seconded by Director Mueller, that the Board approve the recommendation by the Power and Recreation Committee regarding the leases with FGJ Enterprises (Medo’s Resort), subject to legal review. Upon voting on the motion, the following Directors voted therefore: Soneson, Bogle, Dahlgren, Garrett, R. Johnson, W. Johnson, Knoerzer, Mueller, Nelson, R. Olson, S. Olson, Petersen, and Rowe. Director Lavene voted no. The motion was declared carried.

The meeting adjourned at 11:48 AM.

ATTEST:  THE CENTRAL NEBRASKA PUBLIC POWER AND IRRIGATION DISTRICT

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