Office of Secretary
Minutes of Regular Meeting
February 3, 2004

The Board of Directors of the Kittitas Reclamation District met in regular session on February 3, 2004 at the District Office. Directors in attendance were Chairman Urban Eberhart, Vice Chairman Jim Schnebly, Larry Bland, Ed Wakkuri and Brad Haberman. Also in attendance were Carol Ready, Ken Hasbrouck, Paul Green, Kathleen Satnik, Roger Satnik, Well Bartsma, Steve Lathrop, Ben George, Brian Lenz, Janeice Jump, George Cockill, Jack Carpenter, Barbara Pettit and Legal Counsel John Gilreath.

A motion from Ed Wakkuri and seconded by Larry Bland approved the agenda as presented with the addition of an Executive Session. The motion passed unanimously.

Deviating to USBR Master Crossing Agreement Jack Carpenter presented updated information on the USBR Master Crossing Agreement explaining Puget Sound Energy has concerns regarding a bill received from the USBR for a power crossing. Brian Lenz addressed the Board explaining the costs from the USBR for power crossing has increased significantly the last few months explaining a power crossing permit was filed with the USBR in September, 2002 and the USBR billing was just received making it difficult to notify customers of costs in a timely manner. Discussion followed with the consensus KRD continue to request authority to approve the permitting for utility crossings under the Master Crossing Agreement and request a meeting with USBR to discuss the process and billing for crossing. Brian Lenz left the meeting at this time.

Deviating to Taneum Canal Company Stockwater Update Ben George apprised the Board Taneum Canal Company is currently in negotiations with the several agencies including the USBR and DOE regarding winter delivery of stockwater.

Deviating to CH2MHill Mr. Carpenter distributed the feasibility investigation/scope of work for re-regulation reservoirs at Page and Johnson Canyon prepared by Dick Haapala explaining the costs were larger than anticipated and suggested it be submitted to YRBWEP as soon as possible. Steve Lathrop addressed the Board regarding integrating and meeting the needs of KRD and MountainStar. Discussion followed with the recommendation KRD and MountainStar meet with Dick Haapala and discussion continue on the March agenda.

Deviating to lateral .02 pipe request Well Bartsma addressed the Board requesting piping of the .02 pipeline explaining he has contacted landowners on the pipeline and they have expressed interest in piping the .02 lateral. Mr. Bartsma further explained he had it sized for piping by an irrigation consulting firm explaining 24" would provide adequate room with graduating sizes as needed. Discussion followed regarding funding with the recommendation inquiries be made into all possible funding sources. Well Bartsma left the meeting at this time.

Returning to the Agenda the Minutes of the January 6, 2004 meeting were approved as presented by a motion from Ed Wakkuri and seconded by Larry Bland. The motion passed unanimously.

Ken Hasbrouck presented a water update explaining inflows are increasing to above normal with the warmer weather and storage capacity is 70% of average. Ken further explained the USBR anticipates all reservoirs will likely fill with a normal runoff.

Kathleen Satnik presented a KCWP update explaining KRD has a new DOE 319 Grant Manager and the FY2005 DOE Grant application was submitted and has been received by DOE. Kathleen apprised the Board she is attending Kittitas County water entity board meetings when possible. Kathleen apprised the Board the next KCWP Board Meeting will be February 24^th with Tom Myrum and Linda Crerar scheduled for a presentation and extended an invitation to Board members.

Carol Ready presented a Manastash Project update explaining approximately 35% of her time is attributable to YTAHP and 65% to the Manastash Project. Carol further distributed a letter explaining the Manastash Project is continuing to move forward.

Mr. Carpenter distributed the 2004-2006 Union Contract for review and signatures.

Mr. Carpenter presented the Taxable Fringe Benefit-Meal Reimbursement Policy for review and signatures. A motion from Jim Schnebly and seconded by Brad Haberman approved the Taxable Fringe Benefit-Meal Reimbursement Policy as presented. The motion passed unanimously.

Mr. Carpenter presented updated information on the 1146 SCADA Gage Station explaining the USBR has committed to constructing the stilling well and concrete slab with funding up to $12, 000.00. Mr. Carpenter furhter explained work is continuing with Bob Johnson for finalization on design and installation of the project.

Moving to Keechelus Dam update Mr. Carpenter distributed a letter from William McDonald, USBR, confirming the repayment schedule based on the original cost of $32 million with any cost increases owed in June 2005 and December 2005 if required.

Continuing under Old Business and moving to Kittitas County Roads Standards Urban Eberhart presented updated information explaining an alternate draft written by the citizens advisory group is being reviewed at weekly meetings with the citizens advisory group by the Kittitas County Commissioners in conjunction with the public works draft. Mr. Eberhart further explained public meetings are scheduled for a later date.

Moving to New Business Mr. Carpenter presented the Betty Houplin Secregations Sec. 28 Twn. 19 Rng. 18 for pre-approval subject to meeting the general guidelines. A motion from Brad Haberman and seconded by Larry Bland approved the Betty Houplin Segregations as presented subject to meeting the general guidelines. The motion passed unanimously.

Mr. Carpenter requested approval for the purchase of a 1991 Int. 7100 Dump Truck in the sum of $21,659.75. A motion from Brad Haberman and seconded by Larry Bland approved the purchase as presented. The motion passed unanimously.

Mr. Carpenter requested approval for the purchase of a 1997 Ford F150 pickup in the sum of $8,841.25. A motion from Jim Schnebly and seconded by Brad Haberman approved the purchase as presented. The motion passed unanimously.

Mr. Carpenter presented a list of equipment to be junked. A motion from Larry Bland and seconded by Ed Wakkuri approved junking of the equipment presented. The motion passed unanimously.

Upcoming Meetings:

February 13^th     River Ops.   Yakima

February 18^th     WSWRA

February 19^th     Yakima River Basin Water Storage Feasibility Study   Yakima

February 19^th     Manastash Creek Engineering SubCommittee   Ellensburg

February 24^th     KCWP Board   Ellensburg

February 29^th     Joint Board   Yakima

The Board adjourned to Executive Session at 2:18 p.m. for 5 minutes to Discuss Legal Matters with a motion from Brad Haberman and seconded by Ed Wakkuri. The Board returned to Regular Session at 2:23 p.m. with a motion from Brad Haberman and seconded by Jim Schnebly. The motion passed unanimously.

The Directors monthly payroll vouchers were presented for signatures and checks distributed accordingly.

The Summary Vouchers for December expenses Vouchers #23486 & 23520-23580 & 23583-23615 in the sum of $ 318,280.68 were presented for approval. A motion from Ed Wakkuri and seconded by Jim Schnebly approved the Summary Vouchers as presented. The motion passed unanimously.

All Business having been concluded the meeting adjourned.