Minutes of Special Meeting

December 13, 2001

The Board of Directors of the Kittitas Reclamation District met in Special Session on December 13, 2002. Directors in attendance were Chairman Larry Bland, Vice Chairman Ed Wakkuri, Jim Schnebly, Brad Haberman and Urban Eberhart. Also in attendance were Jack Carpenter and Barbara Pettit.

The Agenda was approved as presented.

A motion from Jim Schnebly and seconded by Brad Haberman approved the 2002 wages for non union employees with no wage increase and KRD contributing 100% of the scheduled Copay as specified in the Washington State Health Care Authority schedule for political subdivisions for the following positions: Secretary-Manager, Field Supervisor, Land/RRA Clerk, Office Clerk and Office Manager.

Longevity pay is authorized for the Secretary-Manager on the same schedule approved for the 2001 AFSCME-AFLCIO contract and a $200.00 per month increase for Roger Satnik. The wage schedule for Carol Ready will remain the same as 2001. The motion passed unanimously.

The 2002 budget proposal was presented with Mr. Carpenter explaining changes to individual expense categories. Mr. Carpenter apprised the Board the first payment on the Keechelus Dam will be due in 2002. Mr. Carpenter presented information on repairs to the Cat explaining the estimated repair cost is $16,474.53. A motion from Jim Schnebly and seconded by Brad Haberman approved the Cat repairs at NC Machinery in the sum of $16,473.53. The motion passed unanimously. A motion from Urban Eberhart and seconded by Brad Haberman approved the 2002 Operation and Maintenance Budget in the sum of $2,461,696.00 and the Construction Repayment to the Bureau of Reclamation in the sum of $115,770.00 with interest from the USBR Emergency,

RR & HWY, Pipeline, US Army #1, US Army #2 and US Army #3 O & M Investments used for 2002 Operation and Maintenance with no increase in the 2002 assessment rates with a distribution of 5% Construction Debt Retirement, 95% Operation and Maintenance with 11.75% designated for Keechelus Dam repair costs. The motion passed unanimously.

All Business having been concluded the meeting adjourned.

Larry Bland – Chairman