COUNTY COURT OF THE STATE OF OREGON IN AND FOR THE COUNTY OF GRANT, JUNE 14, 2006

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

9:02 am — Called to Order. Present were County Judge Dennis Reynolds and Commissioners Scott W. Myers and Boyd Britton, Court Secretary Mary Ferrioli, Treasurer Kathy Smith, and Fair Manager Stephanie Walters. The Pledge of Allegiance was given to the United States flag.

EXTENSION WARRANTS. The court signed Extension& 4H Service District Warrants 111 to 127.

PROGRAM.MSP: Reynolds/Myers 51; that we add Item D(1) Budgeted Resolution 06-27 Making Budget Transfers / Special Funds MSP: Britton/Myers — that we accept the program with the addition of D(1)

ANNOUNCEMENTS.

Reynolds reported on his June 12 meeting with Herman Financial representative Kim Hilton about a health insurance renewal rate increase of 4 tenths of 1% next year, as opposed to 15% that was estimated.

Criminal Justice Facility. Reynolds reported that Colin Murphy’s deposition would be June 15 and Nash Johnson’s deposition would be June 16, in Portland. He said challenges still exist with repair work done to the facility. A phone call was expected today from legal counsel to clarify rectification of the problem to be done last Saturday. At this time a roof leak is still present at the facility.

Reynolds reported on his June 13 meeting at the former (closed) Hendrix Landfill with DEQ representative Susan Christensen, a DEQ engineer and Roadmaster Mark Hensley to evaluate the site with regard to necessary corrective treatments such as ditching and construction of a pond to control lechate. An instructional follow up letter from DEQ is expected in the near future.

Reynolds reported on the Road Department’s successful placement this week of a temporary bridge at the Pine Creek culvert, as discussed during the last meeting. He added that there was good cooperation from the Forest Service and Oregon Department of Transportation around those activities.

Britton reported on a meeting that he and Commission Myers had planned to attend on Saturday June 10 with a group of inspectors from Portland concerning the Criminal Justice Facility. Reynolds reported on his ongoing communications with legal counsel Brad Lewis about this matter. Myers reported on plans the Porter Construction representative had to fly to John Day from Olympia WA on Friday or Saturday morning to look at facility repairs.

MANAGEMENT TRAINING. Court members evaluated circumstances surrounding a management training opportunity provided for an employee who is less than compliant with this fiscal year’s requirement. Discussion on this subject started during last week’s meeting. Reynolds cited written communication submitted by the Treasurer / Budget Officer regarding instructions the employee was given to make contact with the instructor about re-training. It was noted that the instructor was unable to complete the training timeline stipulated by the court.

Stephanie Walters explained that she didn’t purposely miss the meeting but had been distracted and forgot which caused her late arrival. Walters suggested that she sit down with the Personnel Manager or a court members and complete the booklet to make up the missed training. Britton explained, it was the court’s intent to make sure management employees obtain the training then asked if Walters would be willing to pay the $75 fee for retraining. Walters wasn’t willing to pay the fee. She suggested that the county might want to offer management training that is more specifically geared to departmental activities rather than a generalized topic.

Reynolds explained that the court’s intent was to provide exposure to the educational material. He felt the court could probably work out another opportunity. It was noted that Walters already has the booklet and a certificate for participating. It was suggested that she meet with another Toastmaster to review the portion she missed. Britton offered to make arrangements with Toastmaster Ken Primrose, the first of next week, so Walters can satisfy the retraining requirement before June 21. Walters and the court were comfortable with these arrangements. See next week’s discussion on this subject.

MINUTES. MSP: Myers/Reynolds — that the June 7 Minutes be approved as corrected.

TITLE III. The court reviewed and approved Title III proposed project 60;Murderers Creek Wild Horse Territory Inventory and Educational Outreach Program.61; The 45 day public comment period ended on June 9. No comments were received. Written information previously submitted by Title III Coordinator Sue Newstetter explained the final budget for this project was reduced by $500 for a total of $49,500, because local riders (independent contractors) would be paid ($13,500) rather than Forest Service employees. The total Forest Service portion would total $36,000.MSP: Reynolds/Myers — that we authorize the Murderers Creek Wild Horse Territory Inventory and Educational Outreach project to move forward. MSP: Myers/Reynolds 51; that Judge Reynolds be allowed to sign the Collection Agreement between the Forest Service / Blue Mountain Ranger District and the county associated with this Title III project.

10:00 am 51; Kathy Smith entered.

DEPOT PARK BUILDING. The court continued their June 7 discussion about progress toward identifying a workable budget, necessary before moving forward with the project. Court members and Treasurer Kathy Smith reviewed new cost estimates including value engineering identified by architect Peter Baer including elimination of air conditioning, the fire system and new lighting. It was noted that the $24,000 Meyer Memorial Trust Fund grant award could be used for heating / air conditioning or electrical.

Court members reviewed each project item, discussed details of the architect’s latest cost estimate, and noted items recommended for removal. Britton suggested that the county move forward at this time because where we are financially won’t be known until the public bidding process. It was felt value engineering should be taken into consideration during the bidding process. Reynolds and court members identified other items (totaling about $8,000) that could be removed from the project because they could be done in-house at little or no cost. Reynolds felt demo (parking lot, landscape area, fireplace etc) and ADA ramp excavation could be done outside the project, and should be done before going to advertisement. Myers suggested that Leonard Wolf may be willing to be the architect’s representative on the project.

Smith asked what would happen if the project cannot proceed after the bidding process, with demo work having already been done. Discussion followed about how the county could restore the building’s condition in coordination with Greater Prairie City Community Association and the City of Prairie City. Smith pointed out that there may be conditions to consider due to the building’s historical registry. Reynolds indicated that the architect would handle that aspect of the project. Reynolds noted that architectural oversight was not listed in the project cost.

10:30 am 51; Bill Harrington entered.

Court members shared their thoughts on the project with Bill Harrington, a Prairie City business owner and resident. The court wanted to see demo and exterior paint (as a last resort) removed from the project but HVAC and the fire alarm system added back. Harrington said the Greater Prairie City Community Association might be willing to support the project with some funding and volunteerism. Discussion followed about some items the county could do on it’s own, the need to confirm with Meyer Memorial Trust that $24,000 is still availableas well as timing for clearing the building’s interior, demo and public bidding process. Britton favored making a commitment to move forward today. Reynolds added, so long as the Meyer grant is still available, demo / exterior paint (last resort) are removed, and HVAC and the fire system are added back. MSP: Britton/Myers 51; that Judge Reynolds be authorized to contact Meyer Memorial Trust to see if funds are still available. MSP: Britton/Myers — if funds are still available, that Judge Reynolds be authorized to coordinate with architect Peter Baer about items discussed today, and to move forward with the project. Reynolds confirmed that HVAC and the fire alarm system would be included and that he could go through the line items and pull out any demo. Reynolds noted that a new budget would need to be prepared for the county’s re-application to Meyer Memorial Trust.

PSYCHIATRIC SERVICES. Center for Human Development Director Bill Harrington recommended signature on an Agreement with Darcy A. Martin M.D.PC for 2006-2007 to serve as psychiatric consultant. Discussion followed about the $165 hourly rate, meals / lodging reimbursement at $106.30 per day, travel reimbursement at 35 cents per mile with travel time at $110 per hour. Harrington explained that the county reimbursement policy for meals and lodging was used to calculate the $106.30 figure. Smith didn’t think the total equaled the county’s daily reimbursement rate total. It was noted that the 9% room tax was added to come up with that total figure. Reynolds confirmed that Harrington had Ms. Martin’s insurance on record. Harrington said Ms. Martin has been very responsive to everything the county has asked of her. He explained how her mileage is split for travel between counties and then charged to individual counties. The agreement was signed by all court members.

10:55 am 51; John Boynton and Mark Hensley entered.

Harrington requested the court’s signature on two letters that he provided relative to a variance request from the state Office of Mental Health and Addiction Services, and a specific educational plan to meet the clinical supervision requirement. It was pointed out, the next state site review would take place on June 27 and 28. Court members are scheduled to attend at 4 pm June 27. Britton suggested that the court’s letter be placed on County Court letterhead with three signature lines.

EMERGENCY MANAGEMENT. Emergency Management Coordinator John Boynton requested approval to purchase two bookcases to organize important information currently being stored on his office floor. Cost quotes were provided from O’Sullivan at $130, Viking at $140, Quill at $212 and Kings at $258. Boynton recommended purchasing the bookcases currently assembled and displayed on the floor at Kings of John Day. Treasurer Kathy Smith noted that bookcases are not available at this time in surplus. Boynton pointed out, his budget currently allows for the higher expense at Kings. Discussion followed about characteristics of the different bookcases selections. Smith pointed out, if an order is placed, it may be difficult to receive the bill before end of year claims are paid. She added, the Emergency Management budget does not include Capital Outlay next year. Smith talked about ordering and payment procedure through Quill. Reynolds compared bookcase sizes and warranties. Britton supported the purchase at Kings considering the quality of those items and time current constraints. MSF: Britton/Myers51; that John be allowed to purchase the bookcases at Kings as presented. Reynolds voted no because not enough information had been provided on quality and warranty for Kings. However, he noted, the court has always advocated higher quality. Boynton agreed to visit Kings today to obtain additional information on quality and warranty. Britton and Myers voted no. Later, Boynton presented information as requested 51; see below.

In response to Britton’s inquiry, Boynton reported on the June 13 County Safety Committee meeting at the Road Department. Hensley reported on the Road Department’s separate monthly Safety Meeting which is regularly attended by all crew members.

COOPERATIVE PURCHASING. Roadmaster Mark Hensley recommended approval of an Oregon Cooperative Procurement Program Participation Agreement. Reynolds felt the county already had this type of arrangement, but said that he discovered yesterday that was not true. He explained that the agreement allows the county to piggyback on any state competitive bid purchasing contract, as a member of OCPPP. Or, to contract with state purchasing on an hourly basis to locate what is needed if necessary. Reynolds addressed competitive bid purchasing options available for fuel and lubrication products, general and specialized vehicles, paint, signs, computers, medical supplies, and much more. He indicated that available prices won’t be disclosed until becoming a member and paying the $2,000 annual fee. He added, it would be important to track purchases to make sure the annual fee is being recovered. Smith clarified that the policy requirement to obtain three quotes would not be necessary if this method is used, and departments would be allowed to use this option themselves until a Central Purchasing Agent is available at the county. Discussion followed about likely scenarios for utilizing the procurement list for large and small pieces of equipment. Myers felt it would be a useful tool for department’s to use, but they should still obtain court approval for purchases. Hensley felt it would be good to implement the program with monitoring over the next year to see if savings are being realized. MSP: Myers/Britton 51; that the county apply for the Oregon Cooperative Procurement Program and Judge Reynolds be authorized to sign the agreement. Hensley said the original agreement was expected to arrive today from legal counsel.

11:45 am 51; Terri Arnall entered.

RV PARK. The court and John Day-Canyon City Parks & Recreation District staff member Terri Arnall talked about renewal of an Intergovernmental Agreement for management of the RV Park in John Day for the period July 1, 2006 through June 30, 2008. Reynolds reported on the April 6, 2006 meeting he had with District board representatives to discuss next year’s agreement including changes to provide additional monthly accountability to the county. Reynolds planned to prepare a spreadsheet to categorize accountability. It was felt the revised agreement could be signed by the court on June 21 and by the District on June 22. Britton suggested extending the agreement for five years. Smith suggested a three year agreement, like some others, rather than a five year agreement. Reynolds agreed with Smith on the three year term. Arnall reported on failures at Gleason Pool related to pipe breakage and talked about start up procedures scheduled at the pool this week.

BUDGETED RESOLUTION. The court reviewed and signed Resolution 06-27 Making Budgeted Transfers / Special Funds, from Women Infants & Children ($6,635) to Maternal & Child Health, from Bioterrorism ($4,476) to Maternal & Child Health and from Sanitarian ($604) to Women Inf & Children.

12:00 pm 51; Lunch Recess. At 1:00 pm the meeting reconvened. Present were all court members, the Court Secretary and Fair Manager Stephanie Walters

FAIR CONTRACTS. Fair Manager Stephanie Walters recommended signature on the following documents associated with the fairgrounds and the 2006 County Fair — 1.) Intergovernmental Agreement with the City of John Day for joint acquisition, maintenance and scheduled use of a60;ground hog61; tiller, and city use of the county’s John Deere tractor; 2.) Professional Services Agreement with Joe Shinkle and Band (entertainment); 3.) Professional Services Agreement with Joni Harms (entertainment); and 4.) Professional Services Agreement with Godfrey the Magician (entertainment). Discussion followed about

various scheduled events to be conducted by the above contractors.

1:05 pm 51; Larry Pierce entered.

Court members expressed their appreciation for the fair event contracts they are now seeing which is a big improvement over how this matter had been handled in the past. Fair Manager Larry Pierce recommended approval of the contracts. Three Professional Services Agreements were signed by the court. Pierce indicated that the ground hog tiller would be used as an indoor-outdoor groomer at the fairgrounds and the city would use it for vegetation removal at the lagoon ponds. He thought the tiller would improve the look of the arena. Walters and Pierce believed the ground hog was a piece of heavy-duty equipment available at a competitive price. Discussion followed about details on the tiller’s operation and use. The tiller agreement was signed by the court.

MAP MAINTENANCE AGREEMENT. The court reviewed and signed Intergovernmental Agreement No. 1575 with the Department of Revenue to provide map maintenance through June 30, 2007. The Assessor previously recommended that this annual agreement be approved by the court.

1:30 pm — Elaine Husted entered.

FORECLOSURE REQUEST. Reynolds explained a foreclosure request the county received for property located in Mt. Vernon with unpaid taxes for a number of years. He explained that foreclosure in Grant County is normally done by the DA’s office with a delinquency notice being served by the Tax Collector. Otherwise, he added, the Department of Revenue would be authorized to contact the Attorney General to proceed with foreclosure proceedings. Reynolds noted, with instability in the DA’s office over the past few years, this process has not moved forward. Discussion took place about statutory procedure associated with the sale of foreclosed property and the collection of back taxes according to assessed value.

BUDGET HEARING. At 1:30 pm, acting as governing body of Grant County Extension& 4H Service District, the court conducted a public hearing on the district’s 06-07 budget. Reynolds opened the hearing to public input. It was noted, other than District Budget Officer Elaine Husted, no one was present to offer input on the proposed budget. Husted planned to have the budget adopted June 28 to allow more time for changes due to anticipated warrants.

1:40 pm 51; At the court’s request, Treasurer Smith entered, and explained, the public would need to know about additional changes to the district’s budget. All proposed changes need to be in the public record before adoption of the budget. Reynolds felt the hearing could be adjourned to a date and time certain.

Husted addressed cash carryover in the amount of $58,000 due to savings of about $22,000 in some lines. She suggested increasing the cash on hand and transferring that amount to the Reserve Fund for the vehicle because it has over 78,000 miles. Reynolds dispensed with additional requests for opponent and proponent testimony; none was offered on the first request. MSP: Reynolds/Myers — that we adjourn the Extension & 4H Service District’s budget hearing to June 28 at 9:00 am.

1:55 pm 51; John Boynton entered.

EMERGENCY MANAGEMENT (continued). Emergency Management Coordinator John Boynton provided information from King’s regarding the durability and warranty on bookcases he proposes to purchase. Boynton said King’s department store manager Tom Wilson told him the bookcases are from Wood Images with an oak wrap and masonite backing and a 10% cost reduction could be given plus a one year warranty. It was noted that King’s price would be $232.20. Boynton felt the bookcases looked sturdy and very nice. He said Mr. Wilson told him no problems had been reported. MSP: Myers/Britton — that we authorize Mr. Boynton to purchase the bookcases at the King’s Store. Myers believed they were of higher quality than the lower priced items and that they are assembled and available on the floor. Reynolds voted no because he didn’t believe there was concrete evidence to thoroughly convince everyone this is a better product than the others. Later, a significant difference was discovered in the quality of bookcases.

2:10 pm 51; Dana Brooks, Marilyn Makela, Kerryanne Woomer and Mark Hensley entered.

CHILDREN& FAMILIES’ SPONSORED MEETING. Commission on Children & Families Director Dana Brooks requested approval to purchase light snacks and refreshments for the Oregon Progress Board meeting at the Outpost Restaurant from 2 51; 4 pm on June 23. Brooks explained, the Commission was hosting an informational presentation by Acting Oregon Progress Board Executive Director Rita Conrad. She said the Outpost normally charges a $50 room rental fee which could be waived if appetizers, estimated at $40-$59, are ordered for the meeting. MSP: Britton/Reynolds 51; that the Grant County Commission on Children and Families be allowed to purchase snacks and refreshments for the Oregon Progress Board event as requested.

DRUG& ALCOHOL POLICY / EMPLOYEE TRAINING. Commission on Children & Families Director Dana Brooks, Prevention Specialist Kerryann Woomer and the court talked about a previous court request for Prevention Specialist Kerryanne Woomer to assist with drafting county policy on a60;Drug Free Workplace61; i.e. pre-employment drug testing (to address federal assurances) and a presentation on drugs & alcohol for the purpose of employee training. Woomer said she could provide a range of informational options available for drug-free workplace compliance and drug & alcohol training for managers. Myers offered to be the contact for Brooks and Woomer since he is liaison to the department.

2:25 pm 51; Bob Phillips entered.

ROAD FACILITY CAPITAL OUTLAY. Roadmaster Mark Hensley presented the court with local cost quotes for a lawn mower to use at the new Road Department Multi Complex as follows: Ace Hardware at $219 for a 2161; 7HP 3 yr warranty, True Value Hardware at $340 for a 2161; 6.5HP 2 yr warranty and at $269 for a 2161; 5.5HP 2 yr warranty, and JD Rents at $369.95 for a 2161; 7HP 2 yr warranty. MSP: Reynolds/Myers — that we authorize acquisition of one 2161; 7HP lawn mower with the lowest competitive bid of $219 at Ace Hardware.

LAKE CREEK CAMP. Lake Creek Camp board member Bob Phillips appeared in court to ask if the Lake Creek Organization, a private non-profit, would be eligible as a taxing district in the county’s surplus equipment process. Phillips hoped to purchase a computer from the county surplus. Because the organization does not levy taxes, he was told it would be considered as general public and could submit a bid during the county’s surplus bid process that is planned for August.

FOREST SUPERVISOR. The court made a phone call and spoke with Malheur National Forest Supervisor Stan Benes and Prairie City District Ranger Brooks Smith to inquire about a recent contact from citizens who wish to meet with the Forest Service about authority to burn or cut trees along roads.

VOCA GRANT APPLICATION. Victim Assistance Director Karen Johnston previously recommended the court’s signature on a Victims of Crime Act Basic Program Grant Application for the period October 1, 2006 through September 30, 2007 in the amount of $10,000 with a $2,500 match from CAMI funds. All funds would cover 20% of salary and benefits for the Victim Assistance Director’s position.

Brief discussion also took place between Treasurer Smith and Reynolds regarding the federal grant application that is being prepared at this time for a Deputy District Attorney. Smith pointed out that Johnston is responsible for the quarterly reporting requirements. However, she has not provided Smith with a copy of those reports. Smith is required to sign as the fiscal agent for this project. Johnston indicated that she would begin providing quarterly reports to Smith. MSP: Britton/ Reynolds 51; that Judge Reynolds be allowed to sign the VOCA grant application as requested.

2:55 pm — Adjourned

Respectfully Submitted,

Mary R. Ferrioli

County Court Secretary