The Board of Directors of the Kittitas Reclamation District met in Special Session on December 14, 2007. Directors in attendance were Chairman Ed Wakkuri, Urban Eberhart, Paul Weaver and Jim Schnebly and Larry Bland. Also in attendance were Kenneth Hasbrouck and Barbara Pettit.

Non Union wages were discussed. A motion from Jim Schnebly and seconded by Paul Weaver approved a 3.% increase in wages effective January 1, 2008 for Ken Hasbrouck, Roger Satnik, Paul Green, Keli Bender, Barbara Pettit and Tina Webster. The motion passed unanimously. A motion from Urban Eberhart and seconded by Jim Schnebly authorized longevity be included in the 3% increase. The motion passed unanimously.

The 2008 budget proposal was presented for review and discussion. Lengthy review and discussion followed. A motion from Paul Weaver and seconded by Larry Bland approved the 2008 O & M Budget in the sum of $2,913,595.98 and the USBR Construction Debt Retirement in the sum of $113,786.00 for a total of $3,027,381.98 with interest from the USBR Emergency Fund, RR & HWY, Pipeline, O & M, Army #1, #2 and #3, R-O-W and Keechelus Dam Investments used for 2008 operation and maintenance and the Special Projects Investment be used to offset Special Projects expense in the 2008 Budget. The motion passed unanimously.

A motion from Paul Weaver and seconded by Larry Bland approved the 2008 assessment rate with no increase and a distribution of 4.5% to Construction Debt Retirement and 95.5% to Operation and Maintenance with 4.7% of the Operation & Maintenance designated to the Special Projects Account. The motion passed unanimously.

Ken Hasbrouck requested the Compensatory Time year end payoff for non union employees be amended to allow employees the option to carry over 80 hours to the new year or request a payoff to zero. A motion from Urban Eberhart and seconded by Larry Bland authorized the Compensatory Time amendment as presented. The motion passed unanimously.

Ken Hasbrouck requested Paul Green be authorized to carry over annual leave exceeding the 160 hour approved carryover to be used in March, 2008 and reimbursed at the 2007 rate. A motion from Urban Eberhart and seconded by Larry Bland authorized the request as presented. The motion passed unanimously.

All Business having been concluded the meeting adjourned.

Ed Wakkuri - Chairman

Kenneth J. Hasbrouck - Secretary-Manager

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