Office of Secretary

Minutes of Special Meeting

September 19, 2002

The Board of Directors of the Kittitas Reclamation met in Special Session on September 19, 2002.

Directors in attendance were Chairman Ed Wakkuri, Vice Chairman Brad Haberman, Jim Schnebly, Urban Eberhart and Larry Bland. Also in attendance were Ron Jarmin, Paul Green, Gary Johnson, Jack Carpenter, Barbara Pettit, John Smith and Legal Counsel John Gilreath.

Mr. Carpenter apprised the Board 4 bids were received on the Skyhook Pipeline Project by the date and time specified.

Belsaas and Smith   $ 4.65 per lineal foot   $ 82,182.10

Morgan & Sons   $ 4.68 per lineal foot   $ 82,712.31

MRM Construction   $ 7.24 per lineal foot   $127,956.65

TJ’S Bulldozing   $16.25 per lineal foot   $266,662.50

Mr. Carpenter suggested KRD consider purchasing a new backhoe and install the pipeline. Paul Green explained the job could take two – three years using KRD equipment and labor depending on other KRD maintenance. Larry Bland expressed concern with shutting water off early for two to three years. Mr. Carpenter stated as long as there are landowner needs the ditch will not be shut down early.

Gary Johnson addressed the Board explaining the KRD crews are under a union contract and would be available as needed. Paul Green stated using KRD equipment and employees would require sharing with KRD known and unknown fall and spring maintenance.

Ron Jarmin presented information and price quotes on new backhoes.

John Smith addressed the Board explaining his bid is based on completing the project in two months.

A motion from Urban Eberhart and seconded by Larry Bland authorized accepting the Skyhook Pipeline Construction Bid from Belsaas and Smith bid of $4.65 per lineal foot for a total of $82,l82.10. The motion passed unanimously.

All Business having been concluded the meeting adjourned.

Edward R. Wakkuri – Chairman