County Court of the State of Oregon s1

IN THE COUNTY COURT OF THE STATE OF OREGON IN AND FOR THE COUNTY OF GRANT

MARCH 23, 2011 Pursuant to notice made to the newspaper of general circulation throughout Grant County, the radio station in Grant County and e-mail distribution list, a regular meeting of the County Court was held at the County Courthouse in Canyon City OR.

9:03 am -- Call to Order. Present were Judge Mark R. Webb, Commissioners Scott W. Myers and Boyd Britton, Secretary Mary Ferrioli, Treasurer Kathy Smith, local citizen Rob Stewart and Reverend Flora Cheadle. A Pledge of Allegiance was given to the US flag. An opening prayer was given by Pastor Cheadle.

CLAIMS. The court had reviewed and approved claims and Extension District Warrant No. 146. A hand check to Quill was approved in the amount of $25.16 for Victim Assistance.

PROGRAM. MSP: Webb/Myers -- to accept the program with approval of the hand-check.

ANNOUNCEMENTS. Myers and Britton both mentioned that they had been contacted by a citizen about the court’s proposed consulting services agreement with US Forest Capital LLC.

Britton said he spoke with Harney County Judge Steve Grasty about issues associated with Oregon Trail Electric Cooperative. Britton had missed attending the Farm Bureau meeting on March 21st.

Webb would travel to Salem today for mental health meetings tomorrow on the budget and transformations the state wants to undertake for service delivery systems. He also planned to see the Governor’s chief natural resource staff to discuss the county’s priorities.

Britton cited the need to address Oregon Department of Forestry’s fire protection rate increase. He talked about problems with the condition of the snowplow truck used at the airport and suggested the airport might want to share the fair’s manual shift truck for snowplowing. He had not been able to share this idea with the Fair Manager to get her thoughts.

MINUTES. MSP: Webb/Myers -- to approve the March 16th minutes as amended.

BMCC. The court considered the Blue Mountain Community College-Grant County Center’s request to assist GED students’ in funding their $135.00 testing fee. Britton had encouraged the request since there’s a real financial need and could help these individuals to have better job skills, earn more money, and contribute to the local economy. Myers said the Commission on Children & Families had discussed this and he’s personally, through his business, considered making a scholarship donation if it could be a tax deduction. Other discussion took place about the potential of utilizing unexpended funds within the Road Department’s BMCC line for this school-related assistance. MSP: Britton/Webb – to allocate the requested student testing assistance in the amount of $1,350.00 from the appropriate BMCC

MINUTES OF THE GRANT COUNTY COURT MARCH 23, 2011 APPROVED 1 line within the Road budget

LETTER OF SUPPORT. The court considered Community Connection of Northeast Oregon’s request for a letter supporting continued Community Services Block Grant funding to counties in 2011. Davidson provided sample letters addressed to Congressman Greg Walden and Senators Ron Wyden and Jeff Merkley. The letters were signed by all court members.

CONSULTING SERVICES. Court members discussed a consulting services proposal from Jay Sullivan of Jamison and Sullivan, Inc. to help obtain extended mandatory funding for PILT. Jay Sullivan was the Interior congressional liaison charged with PILT and Cy Jamison had administered the program as Director of the BLM. Both individuals have dealt with the issue as staff on Capitol Hill. Current legislation requiring mandatory PILT funding expires in 2012 and will revert to reduced payments to counties, if Congressional action is not taken. Eastern Oregon counties are being asked to individually pay a monthly fee of $1,000, plus reasonable expenses. Webb explained that county payments are specifically dedicated to road or schools, but PILT is discretionary, goes to the General Fund and would extend one year beyond county payments. Webb agreed that PILT was significant, but was personally uncomfortable with the proposal until he sees a better description of services and a time line. Myers agreed there’s a lack of specific information. Britton felt it was possibly an investment well-spent and wanted to see monthly reporting on lobbying. Webb planned to contact Sullivan, other counties and our Congressional offices.

AOC DUES. The court reviewed an invoice in the amount of $29,123.84 representing Association of Oregon Counties’ membership dues for 2011. The Forest Management Sub- Committee fee had doubled from what was paid last year. Treasurer Kathy Smith explained that the bill would be split between the General Fund and Road Department. She added that the budget line is short in order to pay this bill, but enough authority is in the Materials & Services category. Before the invoice is approved, Webb planned to find out why the forest fee has doubled.

9:40 am – local student Justin Joslin entered

ORDER. Court members reviewed and signed Order 11-01 to Transfer Jurisdiction of County Roads to the City of John Day as a result of the public hearing held on March 16th.

AMENDED RESOLUTION. At the request of Community Counseling Solutions, Inc. the court reviewed and signed Resolution 11-11 that Amends Resolution 09-25 to eliminate specific CCS employees named as County Financial Assistance Administrator.

BUDGET RESOLUTION. The court signed Resolution 11-12 Making Budgeted Transfers to Material & Child Health, for payroll-related expenses, from WIC in the amount of $6,794.00, from Bioterrorism in the amount of $300.00, and from Sanitarian in the amount of $3,250.00. 9:55 am -- Colin English entered

AIRPORT. Cash shortfalls in the Airport Reserve Fund and the Airport Fund were discussed

MINUTES OF THE GRANT COUNTY COURT MARCH 23, 2011 APPROVED 2 with Airport Manager Colin English and Treasurer Kathy Smith. English felt the deficit resulted in part from the AWOS agreement, necessary fuel station repairs, and the lack of fuel sales to generate revenue. He suggested having a discussion on restructuring some of the funds in terms of what they are used for i.e. the AWOS agreement may be more appropriate as an operation expense. However, he understood a deficit would remain until the economy and aviation business i.e. fuel sales improve. Discussion followed about revenue generation from fuel sales and fuel flows associated with repel academy activities over 8 weeks this year, and additional aircraft parking. Webb asked if AWOS expense for the communications network, maintenance and testing could be shared with the Forest Service. At this time, English was not sure how those costs might be broken out.

Smith had reported the Airport Reserve has had a cash shortfall since 2008-2009, but the extent was not noticed until balancing for the terminal project was done for final closeout. The shortfall is due to the contract with Vaisala and the fuel sales not being enough to cover expenses. The total shortfall to date is (-$23,816.32). Smith said that $43,044 will be received as the last revenue from Title 3 for the terminal project and will help make up the shortfall in the Airport Reserve. This fund has a minimum annual expense of $5,400 with revenue only coming from fuel sales.

Smith had estimated the Airport Fund to have a cash shortfall of $20,000-$25,000 by June 30th. She said the court will need to decide what to do with increasing expenses and decreasing revenue. Smith noted that, although the cost of utilities may be less per square foot, the new terminal has more square feet to pay for with insufficient revenue to cover the cost. English indicated that the biggest cost increase has been for electrical usage due to scaling up the size of the terminal. Britton said that has, in part, to do with OTEC’s monthly demand charge.

Webb and Smith felt it wouldn’t be until the end of the year before actual costs for operation are known. Smith said $100,000 is currently coming to the airport (other than fuel sales revenue) to cover operations -- $45,000 USFS Management Fee, $25,000 Video-Lottery revenue and the $20,000 General Fund transfer. She said the court needs to consider making an estimated $30,000 transfer from the General Fund this year to make up the shortfall. Webb believed the airport was carrying itself now as never before. Smith did not agree and said that’s another discussion. She said part of the Management fee is being used to cover expenses for increased square footage. English reported, with the Forest Service reimbursement, monthly heating fuel costs during the winter have gone down even with additional square footage. Webb felt the airport needed to operate annually on revenue received, without depending on fuel sales. English identified expenses paid by the Forest Service and felt the dumpster expense may need to be adjusted during the winter. He added that land leases remain the same, but hangar lease rates were increased last year to a regional standard. English said the Forest Service land lease is up this year allowing a rate renegotiation, as well as admin and reimbursement rates that are annually evaluated in the Operational Agreement. It was noted there’s some revenue generated from meetings at the airport, excluding those held by the county and Forest Service.

English introduced the idea of possibly looking at costs and benefits associated with making the airport an “airport authority.” However, this lengthy process would require County Court approval, an adequate tax base approved through a General Election, and then state approval. Britton recommended waiting to see how things are running after one full year of operations. English thought there were alternatives with regard to how and where we are spending money

MINUTES OF THE GRANT COUNTY COURT MARCH 23, 2011 APPROVED 3 at the airport. He would like to look at suitable long term solutions. Current conditions with the airport truck used for snowplowing and the idea of sharing the truck at the fairgrounds were discussed. It was noted that the courtesy cars are fairly old and worn so it’s been expensive to maintain them.

10:25 am – News Reporter Scotta Callister and Georgia Patterson entered

DEPOT PARK. City of Prairie City Public Works Director Georgia Patterson visited with the court about the National Weather Service’s Cooperative Observer Agreement that’s needed to access gauge and telemetry equipment being installed at Depot Park. The equipment was previously located at the Prairie City Ranger District, but the new Prairie City Station is located at Depot Park. Patterson was given permission to sign the agreement, as the Prairie City Cooperative Observer. MSP: Webb/ Myers-- to allow Georgia, as the Prairie City Observer, to sign the National Weather Service agreement for placement of the weather observation equipment.

Patterson requested approval to construct a 12’ x 10’ Pump House at Depot Park. Cost quotes were previously provided, according to a Pump House Specifications List, by Kevin Kimberling @ $5,748, Michael Voigt @ $11,833.75, and Double “C” Construction @ $11,700. Since Kimberling’s quote was significantly lower, Patterson had asked the individual to refigure the cost estimate based on specifications. She reported that Kimberling rechecked the prices, was confident with the quote, and told her he would not attempt to increase his fee. Patterson had also checked local references as to the quality of Kimberling’s work. The court confirmed that the individual is CCB licensed, bonded and insured. MSP: Webb/Myers-- to award the Pump House construction project to Kevin Kimberling in the amount quoted at $5,748 .00 without further cost to the city or county. Patterson said that work would begin when the weather permits. She planned to send the appropriate letters to Kimberling and the other bidders and provide the county with copies.

10:50 am Mark Hensley entered

ROAD BUDGET. Roadmaster Mark Hensley said new revenue from the CR 62 Preservation Project has prompted the department to replace its 19 year old chip spreader and convert the radio system to narrow band. He’d like to take money from the existing Oil line for the chip spreader and take money from the Road Construction line for the radio system. Hensley estimated the chip spreader would cost approximately $215,000 and the radio conversion would be about $75,000. Britton had suggested that Hensley look into possibly sharing chip spreader services with other entities. Hensley planned to ask around about sharing or leasing for the county’s short term need. Hensley said we also need to decide on remodeling or replacing the radio building on Dixie Mountain, but that should be covered within the radio conversion. Hensley has been working with Wheeler’s Communications and would be receiving more information on building replacement. If it is not replaced Hensley felt a new interior and metal roof, plus moving the door to the pitched roof side would be just fine. These adjustments would be discussed at the next Budget meeting.

MINUTES OF THE GRANT COUNTY COURT MARCH 23, 2011 APPROVED 4 11:05 am -- Rod Osgood entered.

EXECUTIVE SESSION. Webb said, although discussion will be held under Executive Session, the court doesn’t believe the issue is disciplinary. However, the union is treating the matter as disciplinary. At 11:05 am the court held an Executive Session under ORS 192.660(2) (b) to consider the dismissal or disciplining of, or to hear complaints or charges brought against a public officer, employee, staff member or individual agent associated with a union represented road employee. Webb recited the State Attorney General’s Sample Script to Announce the Start of Executive Session. All court members were present, IUOE representative Rod Osgood and Road employee Terry Brandsma. The court returned to General Session at 11:55 am and no motion was made.

Recess for lunch until the court reconvened at 1:15 pm. Present were Commissioners Myers and Britton and the Court Secretary. Judge Webb had traveled to Salem this afternoon for a meeting.

TITLE 2. The court reviewed and prioritized the following Title 2 project proposals that had been discussed with project representatives last week.

Grant County Herbicide Cost Share Assistance; Infrastructure Maintenance of Grant County Roads for Noxious Weed Control; John Day River Watershed Function Phase II; MNF Allotment Improvement Phase 2; County Road 18 Thinning and Fuels Reduction; Range EIS Archeological Surveys; Blue Mountain Summit Snow-Park NEPA; NFJD Ranger District Noxious Weeds; Olive Lake Dock Replacement; Blue Mountain District Wild Horse Gather Contract; Dad’s Creek Fuels Reduction; Grant County Noxious Weed Eradication; Grant County Small Diameter Thinning. Shared funding was recommended for three projects -- NF Juniper Restoration, Grant SWCD Cooperative Riparian Improvement and Blue Mountain District Water Development and Fence Improvement and Construction. MSP: Britton/Myers – to authorize Commissioner Myers’ signature on the proposals if Judge Webb is unavailable on Friday, March 25th.

2:45 pm – Adjourned

Respectfully Submitted,

Mary R. Ferrioli County Court Secretary

MINUTES OF THE GRANT COUNTY COURT MARCH 23, 2011 APPROVED 5