Minutes of Special Meeting

December 18, 2003

The Board of Directors of the Kittitas Reclamation District met in Special Session December 18, 2003. Directors in attendance were Chairman Brad Haberman, Urban Eberhart, Ed Wakkuri, Larry Bland and Jim Schnebly. Also in attendance were Jack Carpenter, Barbara Pettit, Keli Bender, Tina Webster, Paul Green, Ron Jarmin and Bob Main.

Bob Main and Ron Jarmin addressed the Board regarding the 2004-2006 Union Contract Proposal. Discussion continued regarding contract requests. Bob Main and Ron Jarmin explained any proposal would require approval by a vote of the membership. Bob Main and Ron Jarmin left the meeting at this time.

Moving to Non Union wages a motion from Ed Wakkuri and seconded Urban Eberhart approved the following wage increases; $200.00 per month increase for Keli Bender, Barbara Pettit, Tina Webster and Paul Green and changing Tina Webster from hourly to salaried; Kathleen Satnik be increased to $22.50 per hour; Roger Satnik be increased to $40,000.00 per year and Jack Carpenter, Secretary-Manager, be increased to $58,000.00 per year. The motion passed unanimously.

Mr. Carpenter presented the KRD/DOE/USBR Diversion Reduction Memorandum of Agreement for SB 13.8 enclosed conduit project. A motion from Larry Bland and seconded by Ed Wakkuri approved the Agreement as presented. The motion passed unanimously.

The 2004 Proposed Budget was presented for continued discussion.

Barbara Pettit presented updated 2003 actual revenues and expenses explaining the updated reports reflect expenses and revenues through November, 2003. Lengthy discussion followed on individual expense categories with the consensus this meeting be continued December 19^th.

Bob Main and Ron Jarmin entered the meeting at this time and addressed the Board explaining the Board’s ammendments to the 2004-2006 Union Proposal were presented to the membership and approved.

Chairman Brad Haberman announced the meeting will be continued December 19, 2003.

Bradley W. Haberman – Chairman