NACo - WIR BOARD OF D M W I R C · WIR Financial Report Pages 6-19 Minutes ... County Public Utility District operates two Mid Columbia River Hydro Projects providing retail and wholesale

WIR BOARD OF DIRECTORS MEETING WESTERN INTERSTATE REGION CONFERENCE 2011

CHELAN COUNTY, WA

WEDNESDAY, MAY 18, 2011 WENATCHEE CONVENTION CENTER

WENATCHEE, WASHINGTON

1

Index

WIR Board of Directors Meeting Agenda Page 3 2011 WIR Conference Educational Workshops Pages 4-5 WIR Financial Report Pages 6-19 Minutes from Meeting in Washington, D.C. Pages 20-24 Membership List for the WIR Board of Directors Pages 25-29

2

WESTERN INTERSTATE REGION BOARD OF DIRECTORS

WENATCHEE CONVENTION CENTER – ORCHARD HALL (LOWER LEVEL)

WENATCHEE, WASHINGTON

CHELAN COUNTY

WEDNESDAY, MAY 18, 2011

8:30-12:00

President: Hon. Mike Murray, Commissioner, Lewis and Clark County, MT

1st Vice President: Hon. Ron Walter, Commissioner, Chelan County, WA

2nd Vice President: Hon. Jerome Selby, Mayor, Kodiak Island Borough, AK

Immediate Past President: Hon. Tim Josi, Commissioner, Tillamook County, OR

8:30 Call to Order – Welcome – Announcements

8:40 Roll Call, Approve Minutes

8:50 Report: WIR Financials and Investment Portfolio

Mr. David Keen, Director, Finance and Admin, NACo

9:00 Presentation – Intergovernmental Coordination – Emergency Management Jason Biermann, Snohomish County Department of Emergency Management

9:25 Presentation – Tribal Forest Management

Jim Erickson, Intertribal Timber Council

9:50 Presentation – 2011 Fire Outlook

John Glenn – National Interagency Fire Center (NIFC)

10:10 Report – Secure Rural Schools Update

Paul Pearce, Commissioner, Skamania County, WA

10:25 Report – Overview of Cooperating Agency Training Sessions

Randy Phillips (USDA Forest Service) and Cynthia Moses-Nedd (DOI)

10:45 Report – NACo EELU Steering Committee

Supervisor Brian Dahle, Chairman, NACo EELU Steering Committee

11:00 Legislative Reports and Discussion

• USDA Forest Service Planning Rule Comments (Yates – NACo)

• Secure Rural Schools and PILT Status (Yates – NACo)

• DOI Wildlands Policy Litigation (J. Mark Ward – UAC)

11:15 Legislative Strategy– Fly-in Implementation

a. September PILT Fly-in and Hill Briefing

11:30 New Business – Member Issues

12:00 Adjourn

2011 WIR Conference – Educational Workshops Workshop Block I: 10:15 a.m. – 11:45 a.m. (Thursday)

Innovations in Health Care: Southwest Washington Regional Health Care Authority Room: Fuji (Lower Level)

Four Counties in Southwest Washington are working with the Cowlitz Tribe, local hospitals, health insurance companies, community clinics and non-profit service providers to create a Regional Health Authority (RHA) for primary care, mental health, substance abuse treatment and other social services. RHA is a public-private partnership that is being developed as a new approach supporting Accountable Care Organizations and other providers that serve Medicaid enrollees and other individuals and families in the safety net. Come learn about RHA’s purpose and its positive outcomes.

Collaborative and Cooperative Tribal/County/Community Relationships: The Nisqually River Council Room: Gala (Lower Level)

Attend this workshop and hear how diverse communities can work together to accomplish a sustainable future. The Nisqually River Council is a non-regulatory coordination, advocacy, and education organization that integrates the history, culture, environment, and economy of the watershed into healthy and sustainable future. The Nisqually River flows 78 miles from its source at the Nisqually Glacier on Mount Rainier to its delta at the Nisqually National Wildlife Refuge. The Nisqually is a direct link between the summit snows of Washington’s highest peak and the marine waters of Puget Sound.

Workshop Block II: 1:30 p.m. – 3:00 p.m. (Thursday)

Challenges of Integrating Alternative Energy Sources into the Existing Power Grid Room: Fuji (Lower Level)

The Columbia River Hydro system is referred to as "The Power Belt of The Northwest" literally driving the economy of the Northwest. Puget Sound Energy is a major power supplier and is investing in Wind Generation. Chelan County Public Utility District operates two Mid Columbia River Hydro Projects providing retail and wholesale power throughout the region. Bonneville Power operates Federal Hydro Projects and The Northwest Power Grid distributing power throughout the west. Listen and participate in a discussion of the challenges of integrating new energy production with the current hydro operations and providing future power distribution throughout the west.

Local Challenges from ESA Listings

Room: Gala (Lower Level) In 1997 NOAA Fisheries listed Spring Chinook, Bulltrout and Steelhead as endangered under the ESA. The resulting regulatory action began what is

4

referred to as "The Water Wars” in the Upper Columbia River Basin. The Chelan, Okanogan and Douglas County Commissioners along with The Colville Confederated Tribes and Yakima Nation formed The Upper Columbia Salmon Recovery Board to develop and implement a locally supported plan to recover the listed fish. This collaborative effort has resulted in positive results for the fish as well as had a positive impact on the local economy.

Workshop Block III: 10:45 a.m. – 12:15 p.m. (Friday)

Myth Busters: Can Performance Measures Make County Services More Efficient, Effective, and Economical? Room: Fuji (Lower Level)

The public expects and deserves accountability and assurance that public services are delivered in an effective and efficient manner. This workshop will break down the mystique of performance measures and help you understand how to use them as a tool to make services, processes and work more efficient, effective and economical. Come learn how and why to use performance and accountability measures providing examples and case studies you can take back to your county.

Maintaining Vibrant Ag Economies While Balancing the Demands of

Municipal Water, Irrigation, and Upstream Uses Room: Gala (Lower Level)

Food and production agriculture is Washington State's top industry, topping $35 billion annually, employing 160,000 people and contributing 11% percent to the state's economy. Regulations, labor shortages, adequate workforce housing, decreased funding for ag research and the need to develop new farmer and ranchers are all challenges facing the agricultural economy. Learn about innovative approaches to meet these challenges that can also help your county maintain a viable ag economy.

5

Western Interstate Region Financial Review

For the three months ended March 31, 2011 The Western Interstate Region (WIR) financial operations are separated into three distinct areas: operations, the conference and the Public Lands Trust. Operations: WIR operations are supported by membership dues paid by the participating state associations of counties in the 15 western states. This budget supports a portion (approx. 25%) of Ryan Yates, the NACo Associate Legislative Director working on public lands policy issues. Ryan administers the WIR membership operations, supports the WIR policy priorities and coordinates the WIR Board and Executive Committee meetings, which are also provided for in this budget. All of the 2011 dues have been collected, however, in the accompanying financial reports dues revenue through March appears as only one third of annual dues because the revenue is spread over the twelve months in the fiscal year. Salaries reflect the actual hours charged by Ryan to the WIR project budget. Overhead, MIS and Web charges are allocated to the project based on the number of hours charged to WIR. Based on the most recent review of the financial activity we are projecting that operations will end year at or slightly ahead of the budget. WIR Annual Conference: The conference focuses on the public lands and other issues critical to the western region of the United States by providing county officials with the opportunity to hear speakers, discuss legislation, network with other officials and share ideas and information. The conference is managed by the NACo conference staff. Registration revenue is tracking a little behind last year (277 in 2010) and we have reduced the revenue forecast accordingly. In addition we changed credit card processors, which resulted in substantially lower fees. Salaries reflect the actual hours charged by the conventions staff and overhead, MIS and Web charges are allocated based on those hours charged. All of the expenses are in line with the budget and the conference is projected to be at or near break-even, which is slightly lower than originally budgeted. Public Lands Trust: The trust is funded through annual assessments to WIR member state associations and the funds are used for special activities supporting the WIR public lands policy agenda, particularly the advocacy effort for the PILT program. Included in the 2011 budget are amounts for the WIR fly-in and contributions to the National Forest Counties and Schools Coalition (NFCSC) and the National Endangered Species Fund (NES). For the third year in a row there were no assessments due to the large balance in the trust accounts. Through March31, 2011 no funds have been expended. See the investment update for details of the investment activity.

6

2008

ACTUAL2009

ACTUAL2010

ACTUAL2011 YTD

2011 FORECAST

2011 BUDGET

41945 Dues (95,888.00)$ (95,888.00)$ (95,888.00)$ (23,971.86)$ (95,888.00)$ (95,000.00)$ 50015 Salaries 24,186.00 30,961.60 36,885.64 4,437.81 30,348.32 30,348.32 50190 Ben: Benefits Allocation 7,373.00 9,560.19 11,732.41 2,106.55 10,444.04 10,444.04 50540 Professional Dev & Training - - - - - - 50670 Contributions - - - - - - 50715 Reproduction 349.00 241.12 1,777.02 310.24 1,500.00 1,500.00 50720 Printing_Production - - - - - - 50725 USPS_Express Mail & Handling Fee 135.00 27.48 191.56 3.96 25.00 25.00 50740 General Supplies 51.00 34.00 139.89 220.00 50.00 50.00 50750 Telephone_Fax_Cell & Other Comm 1,024.00 1,771.44 1,263.32 34.71 1,200.00 1,200.00 50805 MIS Support (ALLOC) 1,776.00 2,137.30 2,478.05 365.40 2,052.48 2,052.48 50810 WEB_On-Line Svc (ALLOC) 613.00 737.00 854.50 126.00 707.75 707.75 50910 Rent Allocation 4,875.00 6,945.82 7,360.57 1,290.75 6,807.80 6,807.80 51010 Staff Travel (Travel,Hotel) 11,824.00 12,728.77 9,455.93 1,409.68 9,800.00 10,100.00 51015 Business Meals 491.00 136.17 574.00 143.04 500.00 500.00 51020 Business Entertain 141.00 375.60 276.36 109.20 300.00 300.00 51105 Executive Transportation 773.00 - - - - - 51125 VIP & Committee Tvl (not exec) 2,247.00 300.00 - 299.22 300.00 - 52003 C&M-Meeting Set-up/Rental 300.00 - 52005 C&M-Comp Registration (interco) 300.00 250.00 - - 250.00 250.00 52020 C&M-Equipment Rental_AV 792.00 332.66 1,231.63 - 925.00 925.00 52030 C&M-Speaker Fees & Travel 1,619.00 328.23 3,435.85 - - - 52040 C&M-Reception_Banquets 1,004.00 3,973.60 2,158.20 - 1,000.00 1,000.00 52050 C&M-Entertainment - 180.00 - - - - 52055 C&M-F&B Other 4,338.00 999.10 1,629.55 759.89 900.00 900.00 52065 C&M-Transportation 1,034.00 - - - - - 52090 C&M-Misc. Other - 23.50 - - - - 52420 Plaques, Recognitions, Gifts - 168.00 327.69 - 350.00 350.00 52500 Overhead (ALLOC) 24,279.00 32,791.80 39,223.98 6,373.10 36,144.00 36,144.00

(6,664.00)$ 9,115.38$ 25,408.15$ (5,982.31)$ 7,716.39$ 8,604.39$

Western Interstate Region: OperationsStatement of Activity through March 31, 2011

7

2008 ACTUAL

2009 ACTUAL

2010 ACTUAL

2011 ACTUAL

2011 FORECAST

2011 BUDGET

40710 Registration (133,610.00)$ (98,915.00)$ (103,895.00)$ (54,540.00)$ (90,000.00)$ (94,520.00)$ 40715 Registration Refunds 6,500.00 6,915.00 8,860.00 690.00 6,000.00 6,144.00 42510 Sponsors General (17,000.00) (5,000.00) (10,000.00) (5,000.00) (5,000.00) (10,000.00) 50015 Salaries 20,185.00 17,669.73 16,653.94 106.94 15,302.07 15,302.07 50190 Ben: Benefits Allocation 6,321.00 5,354.03 5,075.48 72.96 5,266.04 5,266.04 50610 Mkt-Add Placements (interco) - - - - - - 50640 Mkt-Printing_Production 1,379.00 1,292.00 1,086.00 1,178.00 1,200.00 1,200.00 50645 Mkt-Postage Handling & Mail Fee 2,115.00 1,631.30 1,875.83 - 1,800.00 1,800.00 50715 Reproduction 122.00 59.58 1,154.52 - 100.00 100.00 50720 Printing_Production 992.00 - - - 1,200.00 1,200.00 50725 USPS_Express Mail & Handling Fee 107.00 14.13 21.44 - 25.00 25.00 50740 General Supplies 3.00 58.50 - 177.32 75.00 75.00 50745 Bank, Credit Card Fees 4,175.00 3,393.87 2,591.52 829.97 2,500.00 2,800.00 50750 Telephone_Fax_Cell & Other Comm 144.00 50.42 119.55 29.18 120.00 120.00 50760 Office Maintenance 56.00 61.00 70.39 13.05 60.00 60.00 50805 MIS Support (ALLOC) 1,882.00 1,387.65 1,677.65 15.95 1,555.85 1,555.85 50810 WEB_On-Line Svc (ALLOC) 649.00 478.50 578.50 5.50 536.50 536.50 50820 Software and Equipment Maintenance 2.05 - - - - 50910 Rent Allocation 4,584.00 3,828.37 4,605.71 57.45 5,160.48 5,160.48 51010 Staff Travel (Travel,Hotel) 3,803.00 3,839.42 2,711.02 - 2,600.00 2,600.00 51015 Business Meals 502.00 43.00 62.13 - 65.00 65.00 51125 VIP & Committee Tvl (not exec) 435.00 - - - 51020 Business Entertain 305.00 211.85 128.95 - 250.00 250.00 52003 C&M-Space Rent, Set Up, Dec. 606.00 - 540.00 - 2,450.00 2,450.00 52010 C&M-Registration Costs (all) 2,945.00 283.34 383.89 94.31 1,530.00 1,530.00 52015 C&M-Signs 1,958.00 765.00 - - 600.00 600.00 52020 C&M-Equipment Rental_AV 9,489.00 1,738.64 9,236.00 - 9,200.00 9,200.00 52040 C&M-Speaker Fees & Travel - - - - 3,000.00 3,000.00 52040 C&M-Reception_Banquets 21,633.00 13,561.65 7,971.69 - 11,600.00 11,600.00 52055 C&M-F&B Other 474.00 92.00 - - 1,130.00 1,130.00 52060 C&M-F&B Staff 2,313.00 1,146.38 1,672.63 - 1,950.00 1,950.00 52075 C&M-Shipping 1,929.00 950.00 699.05 - 1,100.00 1,100.00 52090 C&M-Misc. Other - - - - 1,000.00 1,000.00 52305 Insurance 247.00 250.98 270.09 67.56 270.24 270.24 52425 Subs/Pubs/Dues 319.92 - 350.00 350.00 52500 Overhead (ALLOC) 16,890.00 18,858.53 16,328.52 199.25 18,224.34 18,224.34 ** Rev/Costs (37,867.00)$ (19,978.08)$ (29,200.58)$ (56,002.56)$ 1,220.52$ (7,855.48)$

Western Interstate Region: ConferencesStatement of Activity through March 31, 2011

8

Western Interstate RegionPublic Lands Trust Fund

2008

Actual

2009

Actual

2010

Actual

3/31/2011

Actual 2011

Budget

Balance Fwd 101,175$ 105,341$ 90,760$ 77,800$ 77,800$

Member Assessments 27,739$ -$ -$ -$ -$ Interest/Dividends/Fees 2,488 1,837 1,663 211 - Realized G/(L) (4,588) 458 43 (8) - Unrealized G/(L) (1,458) 363 1,912 (74) -

Total Revenue $24,181 $2,658 $3,619 $129 $0

Salary & Benefits -$ -$ -$ -$ -$ Intern - - - - - Travel - 4,633 69 - 650 VIP & Committee Tvl - - 5,105 - 18,000 Meetings - - 850 - 1,500 Contributions 20,000 12,500 10,000 - 15,000 Print& Production - - - - - Admin/Other 15 106 555 - - Overhead - - - - -

Total Expense $20,015 $17,239 $16,580 $0 $35,150

Net PL Trust $4,166 ($14,581) ($12,961) $129 ($35,150)

Trust Bal 12/31 $105,341 $90,760 $77,800 $77,928 $42,778

Trust Account ReconciliationInvestment Balance $75,887 $78,584 $80,637 $70,787Cash Balance 34,937 34,898 9,819 9,797 $110,824 $113,482 $90,456 $80,584Reimbursement due to NACo ($5,483) ($22,722) ($12,656) ($2,656)Trust Fund Balance $105,341 $90,760 $77,800 $77,928

9

Investment Presentation for

NACo WIR Reserve

April 28, 2011

Prepared byChase Deters, CFP ®, ChFC

Data as of: March 31, 2011f 3 ,10

Table of Contents

- Market Summary

- Portfolio Allocation

Money Grow it For Good®

- Portfolio Performance

- Fund Performance

- Outlook

Money. Grow it For Good®11

Market Summary - 2010

March was a tumultuous end to the first quarter with stocks losing almost all of theirgains for the year before rebounding for the best first quarter for US stocks since1998. Unrest in the Middle East and specifically Egypt and Libya made markets pauseand have driven up oil prices considerably. Japan was stricken by a massive one‐twopunch from an 8.9 magnitude earthquake and following tsunami that causedtremendous destruction throughout the country and killed thousands. With the

Money Grow it For Good®

g yensuing nuclear crisis Japanese stocks fell 17.5%, however the market was able topare losses with foreign aid. The quarter continued to see strong corporate earningsreports and improving economic conditions highlighted by falling unemployment,which contributed to growing investor confidence in the market. The improvingconditions resulted in continued outflow from fixed income investments into equitiesdespite the several market shocks that occurred. As a result, fixed incomeperformance was mostly flat for the quarter.


NACo WIR Reserve - Objectives & Allocation

-The NACo WIR Reserve is designed to preserve capital and provide income for short term funding needs.

-The IPS states a mix of 95% to fixed income and 5% to cash.

-As of March 2011 the allocations are in line with their targets. There is a slight underweight to cash after the recent withdrawal but still within its

Weight Current ValueTarget

Percent Target ValuePercent

VarianceDollar

Variance

Intermediate Bond 17.1% 12,093$ 15.0% 10,618$ 13.9% 1,475$

Short Bond 80.1% 56,697$ 80.0% 56,630$ 0.1% 67$

Cash 2.8% 1,997$ 5.0% 3,539$ ‐43.6% (1,542)$

100.0% 70,787$

Description

M G i F G d®

slight underweight to cash after the recent withdrawal, but still within its target rebalance range.


Year to Date Last 12 Months Since Incept.

Beginning Value 80,637$ 79,177$ 79,177$ Net Contributions (10,000)$ (10,000)$ (10,000)$ Capital Appreciation (82)$ 582$ 582$ Income 291$ 1,270$ 1,270$ Management Fees (59)$ (243)$ (243)$

Description

NACo WIR Reserve - Performance-The WIR Reserve portfolio rose 2.00%, or $1,610 over the trailing 12 months.

-Year to date, the portfolio is up 0.15%.

-The portfolio has beaten the a age e t ees (59)$ ( 43)$ ( 43)$Other Expenses ‐$ ‐$ ‐$ Ending Value 70,787$ 70,787$ 70,787$ Total Investment Gain/Loss 150$ 1,610$ 1,610$

Time Weighted (gross) 0.23% 2.31% 2.31%

Time Weighted (net) 0.15% 2.00% 2.00%Portfolio Benchmark 0.11% 2.28% 2.28%Difference 0.04% ‐0.28% ‐0.28%

Benchmark Comprised of: **Inception date as of: 6/30/200706/07 - 02/08: Russell 3000 (32.5%), FTSE AW ExUS (17.5%), BarCap Agg (45%), BofAML US TBill 3M (5%)03/08 - 09/10: BarCap Agg (30%), BarCap US Gov 1-3 Yr (35%), BofAML US TBill 3M (35%)10/10 - Pres: BarCap Agg (15%), BarCap US Gov 1-3 Yr (80%), BofAML US TBill 3M (5%)

Performance is net of mutual fund fees and Raffa Wealth Management advisory fees. You are encouraged to compare the account information in this report to the account information sent to you from the account custodian.

G i G d®

pbenchmark by 0.04% year to date, but has trailed the benchmark by -0.28% over the trailing 12 months due to the holdings being higher quality and shorter duration than the benchmark. The portfolio has exceeded the benchmark on a gross basis, but is trailing the benchmark slightly net of fees.


Investment Name Percent Market ValueLast 12 Months

% Rank

Last 3 Years

% Rank

Last 5 Years

% Rank

Last 10 Years

% Rank

17.1% 12,093$ 5.1% 4.0% N/A N/A

17.1% 12,093$ 5.0% 60 5.2% 71 N/A N/A N/A N/ABarCap US Agg Bond TR USD 5.1% 5.3% 6.0% 5.6%

80.1% 56,697$ 2.2% 0.9% N/A N/A

68.5% 48,473$ 2.3% 42 3.4% 32 4.9% 18 4.3% 18

NACo WIR Reserve - Bond Fund Review

Intermediate Bond

Short Bond

Vanguard Total Bond Market ETF

Vanguard Short-Term Federal Inv ,$11.6% 8,224$ 2.9% 67 4.1% 1 N/A N/A N/A N/A

BarCap US Govt 1-3 Yr TR USD 1.7% 2.5% 4.2% 3.8%

2.8% 1,997$ 0.0% 0.2% N/A N/A

2.8% 1,997$ 0.0% 0.2% 1.8% 1.7%BofAML US Treasury Bill 3 Mon 0.2% 0.5% 2.2% 2.2%

Schwab US Treasury Money

Past performance is no guarantee of future results and there is always a risk that an investor may lose money. Information contained has been gathered from sources we believe to be reliable, but we do not guarantee the accuracy or completeness of such information. Indices are not available for direct investment and performance does not reflect expenses of an actual portfolio. Expenses would reduce the

annualized return illustrated. Performance figures are gross of RWM's investment advisory fee as described in its form ADV which is available upon request. The incurrence or inclusion of the Raffa Wealth Management fee will have the effect of decreasing performance results. For example, an advisory fee of 1% compounded over a ten year period would reduce a 10% return to an 8.9% annual return.

Cash

giShares Barclays 1-3 Year Credit Bond

Please note that while funds may be measured against the same benchmark, their peer groups may be different. Please refer to the Fund Performance Commentary section that will explain the differences in the fund rankings in greater detail.

i d®Money. Grow it For Good®15

Comment on Individual Fund PerformanceOverall the individual mutual funds have compared well in relation to their benchmarks and peer groups. We note a few funds' performances:

-The Vanguard Total Bond Market fund has been ranked poorly compared to its universe, however the universe is small consisting of 18 funds and also compares broad bond market funds like the Vanguard fund with corporate specific funds which have performed better over the past three years.

-The Vanguard Short Term Federal has been a very strong performer compared to its benchmark f

M G i F G d®

and peer universe. It has exceeded the benchmark by 0.6% and 0.9% for the trailing 12 months and trailing three years and has ranked highly in its large universe.

-The iShares Barclays 1-3 Credit Bond fund has moved around quite a bit compared to its universe due to the very small universe size it is compared against. We believe this is a good fund that will continue to deliver strong yields for its short investment horizon.


Fund Ranking UniverseThe following are the asset class descriptions and universe sizes:

Intermediate Bond:

-Vanguard Total Bond Market is included among 18 funds in the intermediate term bond category for exchange traded funds.

Short Bond:

M G i F G d®

-Vanguard Short-Term Federal is included among 165 funds in the short government category.

-iShares Barclays 1-3 Year Credit Bond is included among 7 funds in the short bond category for exchange traded funds.


Market Outlook

Investors remained confident in the markets over the first quarter despiterepeated shocks that one would have expected to derail the continued stockmarket rally. Employment, the engine for growth in the US, is starting togather steam and economists raised their GDP growth rate expectations forthe US in 2011. However, market challenges abound with the European debtcrisis still simmering, the housing market slumping further, food and energyprices rising, and uncertainty over the Fed’s next move. The recent resiliencyof the market will need to continue in order to combat these manychallenges.

Recent global events underscore the importance of diversifying fully andefficiently over all markets and sectors. While the short term can be a bumpyride, we believe your portfolio is positioned to take advantage of the marketand deliver an efficient return in the long term.


Disclosures

Past performance is no guarantee of future results and there is always a risk that an investor may lose money. Information contained has been gathered from sources we believe to be reliable, but we do not guarantee the

accuracy or completeness of such information. Indicies are not avaialble for direct investment and performance does not reflect expenses of an actual portfolio. Returns are shown net of mutual fund expenses and RWM's

advisory feeadvisory fee.

i d®Money. Grow it For Good®19

Minutes WIR Board of Directors

NACo Legislative Conference Washington, DC

Saturday, March 5, 2011

Commissioner Mike Murray, WIR President, called the meeting to order and welcomed members to the NACo Legislative Conference. [1:05] Roll Call (Matt Fellows) [1:07]

• Mike Murray, Lewis and Clark County Commissioner, MT • Ron Walter, Chelan County Commissioner, WA • Tim Josi, Tillamook County Commissioner, OR • Walter Armijo, Sierra County Commissioner (for Ron Brown, Sierra County Sheriff),

NM • Dickie Chang, Kauai County Council Member (he also introduced a couple new WIR

members, Hawaii County Council Member Angel Pilago and Kauai County Council Member Melvin Rapozo), HI

• Robert E. Cope, Lemhi County Commissioner, ID • Gordon Cruickshank, Valley County Commissioner, ID • Brian D. Dahle, Lassen County Supervisor, CA • Clinton Farlee, Ziebach County Commissioner, SD • David Finigan, Del Norte County Commissioner, CA • Tom Fransway, Humboldt County Commissioner, NV • Alan Gardner, San Miguel County Commissioner, CO • James P. Ithurralde, Eureka County Commissioner, NV • John Martin, Garfield County Commissioner, CO • Dennis Onishi, Hawaii County Council Member, HI • Lesley Robinson, Phillips County Commissioner, MN • Dan Shoun, Lake County Commissioner, OR • Lynn H. Stevens, San Juan County Commissioner, UT • Douglas Thompson, Fremont County Commissioner, WY

Ex-officios present: • Dan Chadwick, Executive Director, IAC • Cindy Delancey, Executive Director, WCCA • Wes Henderson, Dep. Exec. Dir, NAC (sitting for Jeffrey Fontaine) • L. Brent Gardner, Executive Director, UAC • Eric Johnson, Executive Director, WSAC • Mark Johnson, Executive Director, NDAC • Mike McArthur, Executive Director, AOC • Craig A. Sullivan, Executive Director, County Supervisors Association of AZ • John Taylor, Executive Director, CCI • Kathie Wasserman, Executive Director, AML • Bob Wilcox, Executive Director, SDACC

20

MOTION: Approval of minutes from Lewis & Clark County, MT [1:15] • Moved Tim Josi, Second Brian Dahle

o Motion carried Ron Walter made a pitch (tourism, etc) for the upcoming WIR Conference in Chelan County, WA [1:16] Harris Sherman, Undersecretary, Natural Resources and Environment, USDA [1:20]

Started off by examining challenges facing nation’s counties. • National Forests

o USFS oversees 9% of US landmass, 193m acres o Natural Resources Conservation has a strong program to preserve forests, an

enormous benefit to the nation—but there is a disconnect with the public. o Forests are a huge source of recreation and critical to the economy—how

effective we are depends on the success of forest species. o 110m acres in “significant need” of restoration, climate change has resulted in

new pest control problems (e.g. Bark Beetle, 5-10m acres of wildfire p/year) o Stressed issues of Rights-of-Way and increased Wild Lands fire challenges,

indicated there is a great deal of work to do at all levels of government • Strategy

o Collaboration: the ability of the Federal Government to work with states, counties, tribes, all stakeholders to reach solutions—there is a clear interest in making our forests resilient

o Anxious to seek out new partnerships—e.g. electrical utilities, recreational interests

o In the face of budget realities, we will have to flourish if we want to meet challenges, and not just on Federal Lands, ALL lands—there can no longer be “random acts of conservation,” needs to be a more integrated, global approach that takes into account the priorities of safety and restoration, and this must be done by a collective effort in conjunction with counties.

o Read the Great Outdoor Report, http://americasgreatoutdoors.gov/report/, young people are spending 50% less time outdoors than they have in the past—there is a need to connect youth to the importance of forest stewardship with things like summer programs and work study

• Federal Role for County Government o National Planning Rule—critically important to USFS in reaching out to counties,

we need county input: May 16 deadline. o Obama released his budget, authorizes $328m for SRS…no aspect of the budget

is safe. Land/Water Conservation dropped by the House…Senate? o NRCS, www.nrcs.usda.gov/, is hugely important, volunteers working with

landowners on issues of water/air quality, energy, management, “landscape scale” efforts—many programs are offered

Q&A [1:40] • Paul Pearce: RATs unpopulated. Why?

o We are in the process of selecting RATs, next couple of weeks, sorry.

21

http://americasgreatoutdoors.gov/report/�

• Douglas Thompson: One of the biggest problems we face is in planning—it doesn’t happen fast enough, and it doesn’t happen in a timely manner.

o We’re analyzing how we respond, and it’s really amazing how much time is spent just analyzing projects, we have to jump through all kinds of hoops…how can we improve? We’re looking at it. There needs to be a programmatic process.

Closing remarks: Discretionary funding looks to be out the door—go make an appointment with your member and make your views heard on Capitol Hill. Make the most of your time here. John Anderson, Agricultural Economist, AFBF [1:50]

Food prices are a huge issue and lately everyone is paying attention to the Ag economy, which outperformed the general economy in 2010, showing strong employment growth in non-metro counties, high commodity prices but also increasing costs of production. Livestock prices have done phenomenally well in the past fiscal.

• Big Picture: the United States does not have excess capacity like we used to, demand has grown so much that capacity is nearly gone. Emerging markets are producing an increased global demand, and production is having keeping up with use; mirroring this are the rising production costs. Increased prices beget higher costs of production—cost of land is also a factor on these prices, and currently we have the most active land market since the 1980s. Is there another bubble? It’s a frothy market and a fragile scenario, higher interest rates might seriously damage the land market.

• Key Challenges o Dealing with increasing regulatory burden, onerous use & restriction o Escalating costs and related budget issues o Still-shaky consumer demand

• Outlook o Major commodity prices will remain favorable o Ag has been and will be a bright spot in the economy

Net farm income in 2010 was $94.7bn and while there will be regional disparity in income from farm businesses, higher average net incomes are projected in 2011 for non-livestock farm production. We have a strong market, but costs will be phenomenal. People raise the question of corn prices going up, why isn’t beef going down? Our country’s meat supply is extremely tight. NACo 2nd VP Candidate Linda Langston, Linn County, IA [2:20] Kathleen Sgamma, Director of Government & Public Affairs, Western Energy Alliance [2:22]

WEI represents more than 400 companies in the West that drill for natural gas and realizes the issues facing counties with regard to public/wild lands issues and natural gas. Everyone wants an energy balance, but what is it? A strong case is made against drilling on public lands, but a mere .07% of US natural gas reserves are on public lands.

• Abilities to solve problems are hampered by “paralysis by analysis,” cumbersome requirements and policies

• Policies of the previous administration were more beneficial to acting on Wildlands Policy issues, current course is the wrong direction

22

• There is a definite need to put decisions in the hands of counties and not the Federal government

o Average permitting time (BLM) is 206 days, leasing efforts are severely curtailed

The Federal government needs help at the county level in discussing oil and gas production issues, make use of your time here and make the case to your Congressman.

Jim Healy, DuPage County, IL, 2011 Rail Conference [2:58]

Sponsored by NACo, NLC, AASHTO, NARC and APTA, this conference will focus on the impact of freight and passenger rail on county, city and state governments and their citizens and businesses. It will look at the movement of freight in the urban, suburban and rural communities of the United States and discuss who will pay to modernize and expand passenger and freight rail systems. www.naco.org/railconference.

Dustin Van Lieu, Executive Director, National Cattleman’s Beef Association [3:00]

DOI Secretarial Order 3310 is regulatory overreach and onerous, makes outrageous demands from localities. Pressure from radical environmentalists results in this.

• Legislative Update o Senate CR this past Friday excludes DOI 3310 language o A two week extension was signed]

• EAJA Reform: in two weeks there will be new legislation to amend EAJA to limit the $/hr lawyers can charge for cases, and it ratchets down the ability of the wealthy to take advantage of system

• Antiquities Act: Main problem from this 1906 act is it restricts multiple uses and impedes grazing, Sen. Crapo and Rep. Nunes have bills that would amend natural monument accountability

• The current administration is not making full use of the applicable, available tools to deal with Wild Horse/Burro issues

• HR509, S249 [not sure of bill number] might amend the ESA to D-list gray wolves, which puts the management back into the hands of states. o Robert Cope raised the point that this would be a huge issue for counties losing

revenue when wolves are taken back off the D-list. Marc Kelley, Partnership for Rural America Campaign [3:17]

Current advocacy efforts for SRS are a Dear Colleague making a budget request that funding be moved to mandatory rather than discretionary, and that the current $328m is not enough. There is a good signal at least that the current administration is willing to play ball.

• Interaction with your MoCs o We have framed letters of thanks for members who have supported SRS and

urge you to deliver them o Lately no one is thanking Congress, and it’s important now more than ever to

make your voice heard to your member. To echo the Undersecretary’s remarks earlier, make the most of your time here—go and speak

with your member on Capitol Hill.

23

NACo CFO David Keen, WIR Financial Report [3:27] Legislative Update/Strategy Discussion [3:31]

Tim Josi: It has been brought to the committee’s attention that a WIR/PL member has been circulating a letter in opposition to the NACo letter sent to Ken Salazar, signed as a NACo committee member. If there is a disagreement over policy what can we do? Subverting NACo’s policy message isn’t the answer.

Ron Walter: The issue isn’t so much the disagreement with policy, if a person disagrees with a policy that a NACo committee passes that’s fine but you shouldn’t associate yourself to the organization in the opposition letter—send it on your own.

Mike Murray: We’ve had a great lineup of speakers today and some good discussion. Are there any other issues or questions? If not, I’d like to ask Alan to offer a prayer and we can adjourn. Prayer, Adjourn [3:35]

24

5/9/2011 Page 1 of 5

Hon. Walter C. Armijo Commission Chair Sierra County 855 Van Patten Street Turth Or Consequences, NM 87901-3228

Phone: (575)894-6215 Fax: (575)894-9548 Email: [email protected]

Hon. Robert E. Cope Commissioner Lemhi County 1610 Main Street Salmon, ID 83467


Hon. Joel Bousman Commissioner Sublette County Box 250 Pinedale, WY 82941-0250


Hon. Dickie Chang Council Member Kauai County 4386 Rice St., RM 101 Lihue, HI 96766-1819

Phone: (808)241-6356 Fax: Email: [email protected]

Board Members

Hon. Tim Josi Commissioner Tillamook County 201 Laurel Avenue Tillamook, OR 97141-0000


Past President

Hon. Jerome Selby Borough Mayor Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615


Second Vice President

Hon. Ron Walter Commissioner, Chair Chelan County 5433 Squilchuck Rd. Wenatchee, WA 98801-0000


First Vice President

Hon. Mike Murray Commissioner, Chair Lewis And Clark County 316 N. Park Avenue Helena, MT 59601-5059


President

Western Interstate Region Board of Directors

25

5/9/2011 Page 2 of 5

Mr. James P. Ithurralde Commissioner Eureka County P.O. Box 88 Eureka, NV 89316-0088


Hon. Art Goodtimes Commissioner, Chair San Miguel County P.O. Box 1170 Telluride, CO 81435-1170


Hon. Mark C. Herrington Supervisor Graham County 921 Thatcher Blvd. Safford, AZ 85546-0000


Hon. Daniel Joyce County Judge Malheur County 251 B Street W, #5 Vale, OR 97918-0000


Hon. Clinton Farlee Commission Chair Ziebach County P.O. Box 16 Dupree, SD 57623-0000


Hon. Gordon Cruickshank Commissioner Valley County P.O. Box 1350 Cascade, ID 83611-1350


Hon. Brian D. Dahle Supervisor Lassen County 1215 K Street, Suite 1650 Sacramento, CA 95814


Hon. Alan D. Gardner Commissioner Washington County 197 East Tabernacle St George, UT 84770-3443


Hon. David Finigan Supervisor Del Norte County 981 H Street, Suite 200 Crescent City, CA 95531


Hon. Tom Fransway Commissioner Humboldt County P.O. Box 514 Winnemucca, NV 89446


26

5/9/2011 Page 3 of 5

Mr. L. Harold Blattie Executive Director Montana Association of Counties 2715 Skyway Drive Helena, MT 59602-1213


Ex-Officios

Mr. Ryan R. Yates Associate Legislative Director National Association of Counties 25 Massachusetts Avenue, NW Washington, DC 20001-0000


NACo Staff Liaison

Hon. Dennis Onishi Council Member Hawaii County 25 Aupuni Street Hilo, HI 96720


Hon. Dale Patten Commissioner McKenzie County P. O. Box 812 Watford City, ND 58854-0812

Phone: (701)842-2715 Fax: Email: [email protected]

Hon. John Martin Commissioner, Chair Garfield County 108 8th St #213 Courthouse Glenwood Springs, CO 81601-3363


Hon. Todd Mielke Commissioner Spokane County 1116 West Broadway Avenue County Courthouse Spokane, WA 99201-2004


Hon. Douglas Thompson Commissioner, Chair Fremont County 450 North Second Street, Room 205 Lander, WY 82520-0000


Hon. Daron P. Smith Commissioner Millard County 50 South Main Street Fillmore , UT 84631


Board Member

Hon. Lesley Robinson Commissioner, Chair Phillips County 2422 Lazy JD Road Dodson, MT 59524


27

5/9/2011 Page 4 of 5

Mr. Paul McIntosh Executive Director California State Association of Counties 1100 K Street, Suite 101 Sacramento, CA 95814-3932

Phone: (916)327-7500 (506) Fax: (916)441-5507 Email: [email protected]

Ms. Nicole Stickler Executive Director Arizona Association of Counties 1910 West Jefferson Street Phoenix, AZ 85009-5223


Mr. Mike McArthur Executive Director Association of Oregon Counties 1201 Court St NE, Ste 300 Salem, OR 97301


Mr. Jeffrey Fontaine Executive Director Nevada Association of Counties 304 S Minnesota Street Carson City, NV 89703-4270


Mr. Dan Chadwick Executive Director Idaho Association of Counties P.O. Box 1623 Boise, ID 83701-1623


Ms. Cindy Delancey Executive Director Wyoming County Commissioners Association 409 West 24th Street P.O. Box 86 Cheyenne, WY 82006


Mr. L. Brent Gardner Executive Director Utah Association of Counties 5397 S. Vine Street Salt Lake City, UT 84107-6757


Mr. Eric Johnson Executive Director Washington State Association of Counties 206 10th Avenue, SE Olympia, WA 98501-1333


Mr. Mark Johnson Executive Director North Dakota Association of Counties 1661 Capitol Way Bismarck, ND 58501-2195


Mr. Paul Gutierrez Executive Director New Mexico Association of Counties 613 Old Santa Fe Trail Santa Fe, NM 87505-0308


28

5/9/2011 Page 5 of 5

Ms. Kathie Wasserman Executive Director Alaska Municipal League 217 Second Street, Suite 200 Borough Seat Juneau, AK 99801-1332


Mr. Bob Wilcox Executive Director South Dakota Association of County Commissioners 222 E Capitol Ave Suite 1 Pierre, SD 57501-0000


Mr. Craig A. Sullivan Executive Director County Supervisors Association of Arizona 1905 W. Washington St., Suite 100 Phoenix, AZ 85009-5274


Mr. John Taylor Executive Director Colorado Counties, Inc. 800 Grant Street, Suite 500 Denver, CO 80203-2987


29

Documents

NACo - WIR BOARD OF D M W I R C · WIR Financial Report Pages 6-19 Minutes ... County Public Utility District operates two Mid Columbia River Hydro Projects providing retail and wholesale