News Release from
The Central Nebraska Public Power and Irrigation District

Date: Nov. 5, 2007
Contact: Tim Anderson, Public Relations Manager
Phone: (308) 995-8601

Nov. 5, 2007 Board Meeting Summary

(HOLDREGE, Neb.) -- The Central Nebraska Public Power and Irrigation District's board of directors approved the appraisal provided by cabin-owners at Johnson Lake at Monday's monthly meeting.

The new appraisal was used to set rent amounts for lake lots for the next ten years.

Annual rent for the next ten years will be based on a percentage of the estimated market value for an average Tier 1 lot. The new amounts will go into effect on March 1, 2008 and will be phased in over a three-year period.

Central's board accepted the lot appraisal provided by an appraiser hired by the Appraisal Response Group, a group of lake lessees formed by Johnson Lake Development, Inc., to represent cabin-owners during the reappraisal process.

The JLDI appraisal of the market value for an average Tier 1 lot at the lake was $45,000, while Central's appraisal estimated the market value for an average Tier 1 lot at $61,400.

Annual rent for Tier 1 lots, which comprise the majority of lake lots, will be $1,416.67 in 2008; $1,833.34 in 2009 and $2,250 for years 2010 through 2018. The previous rent was $1,000/year.

Rent for Tier 2 lots will be $833 in 2008; $867 in 2009; and $900 in 2010 through 2018. The previous rent was $800/year.

Rent for Tier 3 lots will be $450 for years 2008 through 2018. The previous rent was $600/year.

Rent for Tier 4 lots will be $416.67 in 2008; $433.34 in 2009; and $450 in 2010 through 2018. The previous rent was $400/year.

Rent for Tier 5 lots will be $112.50 for years 2008 through 2018. The previous rent was $250/year.

In other action at Monday's meeting:

• The board authorized final payment to Dredge America of Kansas City, Mo., for the removal of debris and sediment from the base of the Outlet Tower at Lake McConaughy. Total cost of the project, which involved removal of 2,188 cu. yds. of sediment and larger debris that was partially blocking portals at the base of the structure, was $376,545. Removal of the material was accomplished with a dredge and teams of divers over a 38-day period.

Water released from Lake McConaughy primarily passes through the Outlet Tower. The material had accumulated around the base of the tower over the years. While water releases were not significantly affected, continued accumulation of sediment and debris could have eventually blocked one of more of the portals at the bottom of the lake.

• The board approved a motion directing staff to investigate opportunities to temporarily and/or permanently transfer water rights to other uses from acres for which irrigation service has been cancelled.

• The board approved the 2008-09 operating budget for Johnson Lake Development, Inc., which includes the management fee Central pays to JLDI for services at the lake. The 2008-09 budget projects expenditures of $54,095 compared to $49,800 in the 2007-08 budget.

Major budget items include sanitation services, provision of a grass/tree dump, newsletter publication expenses, officers' fees and insurance. Mowing fees -- which are not included in the budget, but are also paid by Central -- amount to $6,500.

• The 2007-08 water year operations plan was presented to the board. The plan, prepared jointly by Central and the Nebraska Public Power District, anticipates similar water supply conditions and operations during the current water to those that occurred during 2006-07. The plan covers storage, release, lakes levels, canal diversions, and hydropower generation for the two projects.

• The directors approved Central's participation in an interlocal agreement with the South Platte River Compact Coalition. The purposes of the agreement are to provide the authority, resources, services, studies, and facilities needed to investigate rights and entitlements granted by the South Platte River Compact with the State of Colorado. If feasible and beneficial, the coalition would be authorized to apply for and hold all necessary permits and/or water rights for exercising the those rights.

• General Manager Don Kraus reported that the Nebraska Game and Parks Commission has approved changes to the designation and management of the Clear Creek Wildlife Management Area (WMA) at the west end of Lake McConaughy. The changes enlarge the boundaries of the WMA relative to the shoreline, which will permit public hunting opportunities in a larger area.

The change is consistent with Central's Land and Shoreline Management Plan on file with the Federal Energy Regulatory Commission and the lease between Central and NGPC and was made in response to lower water levels at the lake. Between Oct. 25, 2007 and March 1, 2008, the Clear Creek WMA's boundary will change to follow the shoreline as the lake's water level fluctuates. State regulations in the Lake McConaughy State Recreation Area, where hunting is not permitted, will remain in force.

• Natural Resources Manager Mike Drain discussed with the directors the limitations of a Cooperative Hydrology Study modeling report regarding the impact of groundwater use on inflows to Lake McConaughy.
The discussion stemmed from a presentation at the Nebraska Association of Resources District conference in late September and a pamphlet that minimized the impact of groundwater pumping on flows entering Lake McConaughy.

The pamphlet was not prepared by COHYST researchers and, Drain said, ignores the limitations written into the documentation accompanying the model.

"We're not ignoring the model," he said, "but we're not ignoring the model's significant limitations either."

• Irrigation Division Manager Dave Ford reported that meetings with customers have been scheduled on Nov. 16 at 8 a.m. at the Elwood Civic Center; 10 a.m. at the Bertrand Community Building; 1 p.m. in the middle room of the Phelps County Ag Center in Holdrege; and 3 p.m. at the Minden Exchange Bank & Trust.

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