RECORD OF THE PROCEEDINGS

OKANOGAN COUNTY BOARD OF COMMISSIONERS

November 6, 2006

Update – Planning
Greg Wilder reported on changes to the draft 3-party agreement for the sewer system. Greg noted that the Tribe has concerns about bones that were found on site in that they were not processed correctly. However, while he understands their concerns it was determined that they were not human. They are working to get the road in shape for winter. Nick Christoph noted an upcoming telephone conference with DOE and discussed salmon recovery issues with the board. Greg briefed the commissioners on potential new developments in the northern part of the county.

Discussion – Funding – Historical Society
Bud Fisher stated that the Historical Society would like to be included in the county budget since they are the "Okanogan County Historical Society". The society was organized in 1963 to preserve the history and heritage of Okanogan County. The four historical museums have approximately 20,000 visitors per year. The society would like to receive annual funding of around $25,000 from the hotel motel tax money before it goes to the TAB Board for distribution. The society currently holds photographic collections dating back to 1910 that need to be maintained in a controlled climate. In the society’s articles of corporation, the county agreed that all the assets of the society would go to the county if the society were to fold as an organization. Commissioner Lampe asked where they get their current funding from. Besides donations the admissions are $2.00 but are on a voluntary basis. Commissioner Hover would like to see a budget on how funds would be used. Commissioner Lampe stated that he sees the need to preserve the photographs. Commissioner Peterson explained that some research would need to be done to determine if the county can provide the funds to the society. The Commissioners explained that they would add their request to the budget wish list.

Motion – Preauthorization of In-county Meals - Commissioners
Commissioner Lampe moved to authorize the purchase of items for lunch with the Council of Governments meeting on November 8, 2006, to be reimbursed through the Council of Governments. Motion was seconded and carried.

Discussion – Various Concerns – Kinross Mine
Senator Morton, Joel Kretz, Loren Roberts, Susie Ives

Commissioner Peterson opened the meeting and explained that the meeting was called to discuss issues and recent complaints as well as to meet Loren Roberts and new staff with Kinross. She mentioned the support that has been given by the commissioners over the last several years including needed legislation and funding options for the road improvements. It has not been an easy process in developing the good neighbor agreement. The Commissioners of both Okanogan and Ferry County worked to get the supply route established. There are several things; county roads, haul routes, EIS and CAB agreements; hiring of local people, and how to handle complaints that need to be discussed. So far the Commissioners have been able to keep a lid on the citizens concerns through the CAB. The Beaver Canyon route is of main concern. Ferry and Okanogan County are the ones who have been here and supported the mine in an effort to improve the economy of the counties. Loren Roberts, cited a merger that was made this morning.

Clyde Gillespie left on his own accord and left a big hole. Clyde was the Buckhorn Manager who moved planning and permitting forward. Michael Widby, Construction Manager will be heading up the construction work. He introduced other members of the Kinross team. They explained that the dual use permit allows the use of Cow Camp Road and the west ridge of Pontiac Ridge Road. It was difficult to find the proper crushed rock for the road and after it was laid the Forest Service then told them to stop using the road. They tried to work with the FS and offered to post a bond. Then they went to bid to find material to crush and bring to the site. Toroda Creek Road is only preliminary prepared and the do not want to damage it before it is completed. Although staff caught the trucks going the wrong path it took a while to get the situation corrected. Kinross is visible and trucks are not always going to their site. Kinross explained that the definition of local is from the Idaho Border on the East, the Okanogan Valley to West the Canadian Border to the North and the I 90 corridors to the South for contractors and subcontractors. Commissioner Peterson explained that "local" means Okanogan and Ferry Counties. The two counties have partnered together in support of the mine and its benefits for our citizens. Commissioner Peterson quoted that there is to be 70% use of local people in these two counties during construction and operation. Rep Joel Kretz stated that unless the situation changes the local support would diminish. The contracts will go out to all contractors in the designated area and will be given to the low bidder. They appreciate the Commissioners ongoing support and the have half of the needed state permits. There is a significant permit for water discharge and there will be a notice going out to hold a meeting and would appreciate the Commissioners attendance. Kinross has been preparing a defense for any stay or appeal. It has become a costly and slow process, but they are going to continue to doing the work. They are aware of the requirements and the expectations of the community. Sometimes the decisions made do not always make sense. Water is being purchased in addition to the existing water rights. The Commissioners thanked them for coming to discuss these concerns.