APPROVED ON AUGUST 22, 2018

BY THE BOARD OF COUNTY COMMISSIONERS

AT THE WEEKLY BUSINESS SESSION

County Administration Workshop: August 9, 20189: 00 a.m.— Board Conference Room

Attending: Commissioners Daniel E. DeYoung, Lily N. Morgan, and Simon G. Hare; Wendy Watkins, Recorder

Chair Daniel E. DeYoung called the meeting to order at 9:00 a.m. Due to guests present, agenda items were takenout of order.

1. LEGAL COUNSEL

A. Resolution No. 2018-_; In the Matter of Referring to Josephine County Voters at the November6, 2018 Election an Advisory Question on Marijuana Taxation

Wally Hicks, County Legal Counsel, discussed Draft MJ Taxation Ballot Title( Exhibit 1). Staffwasdirected to place the item under Administrative Actions on next week's Weekly Business Session Agenda.

B. Resolution No. 2018-_; In the Matter of Referring to Josephine County Voters at the November6, 2018 Election an Advisory Question on Resilient Federal Forests Act

Commissioner Morgan suggested putting it into words that anybody can understand that is not followingpolitics. Commissioner Hare mentioned the opportunity to having a non-binding question that guides themin the administrative rule making that says you need to keep roads open in fire prone regions, such asSouthern Oregon, to combat the threat of catastrophic wildfire. The Board agreed to have Commissioner

Hare and Mr. Hicks work on an advisory question for the ballot. Staffwas directed to place the item underAdministrative Actions on next week's Weekly Business Session Agenda.

C. Resolution No. 2018-_; In the Matter of Referring to Josephine County Voters at the November6, 2018 Election an Advisory Question on Separation Ballot Title

Mr. Hicks reviewed Separation Ballot Title Draft 08-09- 18( Exhibit 2) with the Board. Commissioner

Morgan explained she would like a paragraph in there along the lines of; if Josephine County were toexplore this, there would be considerable investments into what it would take for state taxation, university

systems, transportation, etc. with considerable revenues being expended and she would like the communityto weigh in on whether those expenditures should even happen. Commissioner Hare says he does not feel itis a ripe issue right now and suggests bringing this question forward to a May 2019 ballot. The Boardagreed they are not in favor of costing the tax payers for a second page on the ballot, but if the question willfit on one page with the other advisory questions, the Board agreed to consider the question. Staffwasdirected to place the item under Administrative Actions on next week's Weekly Business Session Agenda.

2. TREASURER

A. Treasurer' s Semi Annual Meeting with the Board of Commissioners as required by the JosephineCounty Investment Policy

Eve Arce, Treasurer, reviewed the semiannual Treasury Report for Quarter Ended June 30, 2018Exhibit 3) with the Board which is required by the Josephine County Investment Policy.

Commissioner Morgan left the meeting at 9:48 a.m.

3. DEPARTMENT BUSINESS

A. Forestry1) Taylor Creek Fire Update

Item has been tabled until next Thursday' s County Administration Workshop.

County Administration Workshop August 9, 2018 Page 2 of 3

B. Community Development1) Economic Development Project Application regarding Collaborative Economic Development

Committee( CEDC) Facilitation

Julie Schmelzer, Community Development Director, mentioned the CEDC made a motion last Mondaynight to ask the City and the County to support a facilitator coming in to have one on one interviews witheach committee members along with the Grants Pass City Councilors and the County Commissioners, overa two-day period, followed by an extended 4 hour facilitator meeting. The facilitator would then create aone- year work plan. The strategic plan that was originally adopted did require a consultant to facilitate thecommittee' s meetings for the first six month, which did not happen, and the CDEC feels they arefloundering and could use a facilitator. The CDEC is requesting$ 7, 500 towards facilitation. CommissionerHare asked if there was an RFP for recruiting the facilitator. Ms. Schmelzer said there is not an RFP but theCity did contract the same consultant they facilitated with in the past. The Board would like to review theresume of the facilitator before moving forward.

C. Community Corrections1) Contract for Professional Services between Deanna Page and Josephine County Community

Corrections for Sex Offender Treatment Services

Nate Gaoiran, Community Corrections Director, advised the Sex Offender Treatment Program providesevaluation and treatment services for offenders who have been convicted of a sexual offense and are under

the supervision of Josephine County Community Corrections. The treatment provider is a masters level,state certified, licensed therapist who uses a multi- model approach consisting ofcognitive behavioralinterventions focusing on insight, accountability and relapse prevention. The Sex Offender TreatmentProgram is an approved component of the Josephine County Community Corrections Plan and completelyfunded with state grant- in-aid dollars and participant fees. Staffwas directed to place the item on theConsent Calendar on next week' s Weekly Business Session Agenda.

4. FINANCE REPORT and BUSINESS UPDATE

Commissioner Morgan said she supports paying the Association of Oregon Counties( AOC) dues for the2018 fiscal year.

Arthur O' Hare, Finance Director, mentioned a couple months ago when we went through the budget process

we had additional funding from SRS and PILT Funding and those funds have not been allocated to specificprograms. Mr. O' Hare plans to work with the department director' s and liaisons to come up with asuggested plan to utilize those funds. Commissioner Morgan, Helen Lulich, Real Property Manager, andMr. O' Hare met with ADAPT to see if they were going to utilize the Hugo Hills property and there weresome concerns with the facility. We decided on a deadline of September 1, 2018 for them to come backwith a decision. Mr. O' Hare discussed the Springbrook software that runs payroll failed and tech support

came out to fix it. The system is very antiquated and he would like to explore newer versions ofSpringbrook and the Board agreed.

5. OTHER BUSINESS (ORS 192. 640(1) "... notice shall include a list ofthe principal subjects anticipated to be considered at the meeting, but thisrequirement shall not limit the ability ofa governing body to consider additional subjects.')

The Board agreed to sign Order No. 2018- 059; In the Matter of Terminating a Land Sale Contractbetween Josephine County and Wave Enterprises, LLC (Exhibit 4) which was carried over from amotion that was made from last Tuesday' s Legal Counsel Update.

Mr. Hicks discussed Order No. 2018- 058; In the Matter of LUBA No. 1995- 032: Douglas B. Simpson and

John Makepeace vs. Josephine County and Darrell and Gale Shoemaker Initiation of a Remand: Proceedingand said the direction from last Tuesday' s Legal Counsel Update was to move this forward to next week' sWeekly Business Session. Commissioner Morgan said she will recused herself. Staffwas directed to placethe item under Administrative Actions on next week's Weekly Business Session Agenda.

County Administration Workshop August 9, 2018 Page 3 of 3

6. BOARD BUSINESS

A. Request for Board Approval for an Indoor Arena RFP

Item has been tabled.

B. Matters from Commissioners

None heard.

7. EXECUTIVE SESSION

a) Update on Collective Bargaining—ORS 192. 660( 2)( d)Item has been tabled.

Meeting adjourned at 10: 34 a.m.

EXHIBITS:

Exhibit 1 - MJ Taxation Ballot Title Draft 08- 09- 18

Exhibit 2 - Separation Ballot Title Draft 08- 09- 18

Exhibit 3 - Treasury Report for Quarter Ended June 30, 2018Exhibit 4 - Order No. 2018-059; In the Matter of Terminating a Land Sale Contract between JosephineCounty and Wave Enterprises, LLC

E ,h i b i- 1-

MJ Taxation Ballot Title Draft (1) 6/ 9/ 18 n'w '

q)91 rgi

Ballot Measure 2018- XXX

cl' ior\Caption ( 10 words max): r ' c

Advisory question on marijuana taxes. (5 words)

Question ( 20 words max :

In your opinion, should : County be able to tax the production of recreationaland medical marijuana? ( 17 words)

Ballot Summary ( 175 words max):The outcome of the election on this advisory question will not be binding. It willprovide information to the Board of County Commissioners while the Boardformulates policy.

State law currently prevents Counties from taxing marijuana production. InDecember, 2017 the Association of Oregon Counties, which includes ` ounty,

formally recommended that state law be changed so that five Southwest Oregoncounties ( Coos, Curry, Douglas, Jackson and Josephine) could tax marijuanaproduction. Following legislative approval, voters of each county could thendecide whether to impose such a tax. Property tax rates would not be impacted.

The state currently collects annual fees from marijuana producers. Under thecounties' proposal, the state would also collect an annual amount for the county inwhich each grow site is located, and provide that additionally collected amount to

the county. The revenue collected from marijuana producers would be dedicatedto a law enforcement trust fund.

This proposal would not affect the current property tax rate. ( 160 words)

4

4

4

EXPLANATORY STATEMENT

In 1998, Oregon voters passed Measure 67 which modified state law to allow the cultivation, possessionand use of marijuana to treat certain medical conditions when recommended by a doctor. Then, in 2014Oregon voters passed Measure 91 which legalized the recreational use of marijuana. Neither measureaffects federal law, which presently prohibits the cultivation and possession of marijuana.

Since the passage of Measures 67 and 91, the Oregon Legislature has approved statutes and authorizedthe creation of rules and regulations surrounding marijuana regulation and taxation. The stategovernment collects 17 percent of revenue received by commercial marijuana retailers, and sends aportion of the amount it collects to counties. As of July 31, 2018, Josephine County has received

745,526.94 from the state based on sales of marijuana. Additionally, counties are permitted to imposea 3 percent tax on revenue derived from retail sales of marijuana. Josephine County voters approvedsuch a tax as Ordinance 2016-005 at the November 8, 2016 election. As of July 31, 2018, JosephineCounty has received $ 90, 393.98 from local vendors of retail marijuana.

State law currently prevents counties from taxing marijuana production. In December, 2017 theAssociation of Oregon Counties, which includes Josephine County, formally recommended that state lawbe changed so that five Southwestern counties( Coos, Curry, Douglas, Jackson and Josephine) could taxmarijuana production. Following legislative approval, voters of each county could then decide whetherto impose such a tax. Property tax rates would not be impacted.

The state currently collects annual fees from recreational and medical marijuana producers. Under thecounties' proposal, the state would also collect an annual amount for the county in which each grow siteis located, and provide that additionally collected amount to the county. The revenue collected frommarijuana producers would be dedicated to a law enforcement trust fund.

302 words)

I

I

I

ixhibi

Separation Ballot Title Draft (2) / / 18

Ballot Measure 2018- XXX

Caption ( 10 words max):

Should Josephine County explore options for separating from Oregon? (9 words)

Question ( 20 words max):

In your opinion, should Josephine County explore options for becoming part of anew state? ( 15 words)

Ballot Summary ( 175 words max):The outcome of the election on this advisory question will not be binding. It willprovide information to the Board of County Commissioners while the Boardformulates policy.

The United States Constitution provides that portions of states may break away andbecome new states by satisfying two requirements: 1) The state legislature mustconsent, and 2) Congress must consent. Josephine County was created by theterritorial legislature in 1856. It then became part of the State of Oregon when thestate was formed in 1859.

Twenty one counties in Northern California have declared their desire to form anew state called the State of Jefferson. Until now, no Oregon counties have votedon the matter. Based on the 2010 U. S. Census, the proposed State of Jeffersonwould have about 423, 000 residents.

This proposal would not affect the current property tax rate. ( 131 words)

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I

Exhib, + S4dm-

219JOSEPHINE COUNTY, OREGON 1 I14-,,

t EVA L.I. ARCE, TREASURERfir * _ *

c*- , Vit; .fir REPORT FOR QUARTER

ENDED JUNE 30 , 2018

Submitted to the Board of County Commissioners

By lu-e , ,^ L i- e-- 8/ 10/ 18

STATEMENT OF THE TREASURER AND INVESTMENT OFFICER:

The reporting requirements of ORS 208. 090 and ORS 294.085 are fulfilled by this report and the report issuedearlier. The investments ofJosephine County are in compliance with the objectives and the requirements of theInvestment Policy. At June 30, 2018 all bank accounts are in compliance with ORS 295. ( See Attachment B).SUMMARY OF TREASURER' S REPORT:

Total investments and cash ( See page 2 and Attachment A) was$ 35,212,213 at June 30, 2018 compared to28, 135, 170 at June 30, 2017. Interest rates on short-term investments at the Local Government Investment PoolLGIP) is currently at 2.25%, an increase of 0.55% since January 2018. The interest rate has made continual

increases since December 2015. Quarterly statistics for the Treasury Division are shown in Attachment E.The Tax Division mailed 6, 101 trimester reminder notices in April 2018 and 3, 378 delinquent notices were mailedMay 22°`'. At June 30, total collections for property tax levies are at 99.53%. Current year collections at June 30,2018, are at 97.05%, including discounts of 2.54%. Property taxes and delinquent interest collected and turned overto the 16 taxing entities in Josephine County totaled$ 3, 216,053 for the quarter ended June 30, 2018. Quarterlystatistics for the Tax Division are in Attachment E.

RECEIVED BY THE BOARD OF COUNTY COMMISSIONERS:

DATE

Investments, Cash and Other Accounts6/ 30/ 18 12/ 31/ 17 6/ 30/ 17

ACCOUNT TYPE BALANCE BALANCE BALANCE

U.S. Govt. guaranteed obligations— Treasurer's Pool 9,991, 095. 58, 991, 494. 6,976, 915.

Commercial Bank Time Certificate of Deposits—Treasurer' s PoolCommercial Bank Demand 434,960. 694,726. 203,734.

Commercial Municipal Money Market Accounts—Treasurer' s Pool 6,990,406. 3, 535,631. 60, 873.

County Expenditure Outstanding( ZBA Acct) 978,805.) 787,401.) 1, 180,812.)

Total Treasurer' s Accounts 16,437,656. 12,434,450. 6, 060,710.

Local Government Investment Pool( LGIP)—Treasurer's 18, 154,015. 22,244,724. 23,221, 090.

Investment Pool( LGIP)—Restricted 620,542. 1, 773,525. 547, 513.Local Government

Total Local Government Investment Pool. 18, 774,557. 24,018,249. 23, 768, 603.

Total of All Accounts 35, 212, 213. $ 36, 452,699. $ 29, 829,313.

Treasurer' s Statements

Commercial bank demand deposit accounts are non-interest bearing. Interest rates on investment accountsare shown in Attachment A. Other bank account information is shown elsewhere in this report.

All Treasury investments are permitted by the Josephine County Investment Policy, and are within thepercentage requirements of the Policy. The Policy has no restrictions on investments in commercial bankdemand and commercial money market accounts. The Oregon Short Term Fund Board approved the Policyin June 2007; the Board of Commissioners adopted the Policy in 2007 and has re-adopted it each year since.ORS Chapter 295 governs the collateralization of Oregon public funds and provides the statutoryrequirements for the Public Funds Collateralization Program. Bank depositories are required to pledge

collateral against any public funds deposits in excess of deposit insurance amounts. This provides additionalprotection for public funds in the event of a bank loss. According to the Oregon State Treasurer, ORS 295creates a shared liability structure for participating bank depositories, better protecting public funds thoughstill not guaranteeing that all funds are 100% protected. It is the opinion of the Josephine County Treasurer,and other county treasurers, that the collateralization program essentially guarantees 100% of the balances, inexcess of FDIC coverage, of each compliant public depositor. As of June 30, 2018, and as of the date of thisreport, all county deposits comply with the requirements of the Josephine County Investment Policy andORS chapters 295 and 294.

A" third party" custodial agreement for investment safekeeping was completed in June, 2007. As ofJune 30,2018, all securities were held by US Bank Institutional Trust& Custody. All investment transactions, exceptfor direct purchase of bank TCDs, are cleared through this safekeeping arrangement.

On June 30th the Treasurer' s investment maturities extend to January 2020. Allowable short term securitieswhich are becoming competitive with the Local Government Investment Pool. Details of investments heldat June 30, 2018 are shown in Attachment A.

The Josephine County Investment Policy approved by the Oregon Short Term Fund Board, and re-adoptedFebruary 7th, 2018 by the Board of Commissioners, measures performance of the County's investmentportfolio against the performance of the Oregon Local Government Investment Pool and the 90- dayTreasury bill rate. The graph shown below compares the performance of the" Treasurer's Pool" with theLGIP and the 90 day US Treasury Bill, along with the returns on all Treasury investments. Historically theLGIP yield is higher than the Treasurer's Pool in a rising interest rate environment and lower when rates aredropping. These yields are calculated and presented using the Bond Equivalent Yield method( i.e. annualpercentage return calculated over 365 days vs. 360 days).

Investment Returns Analysis —June 30, 2018

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ATTACHMENTS

Attachment A Investment Analysis

Attachment B Compliance Report

Attachment C Cash in Funds

Attachment D Permitted Investments

Attachment E Quarterly Report of Department Activity by Division

Attachment F History of Property Tax Foreclosures

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Josephine County TreasurerCompliance Report June 30, 2018

Percentages Allowed by Account TypeAccount Actual Allowed

Permitted Account Types Balance Percent Percent

A- Investments in U. S. Govt. Obligations S 0.0% 100%

B- investments in U.S. Govt. guaranteed obligations 9,991, 095 27.9% 75%/ 25%

C- Commercial Bank Time Certificates 0.0% 50%/ 25%

C- Commercial Bank Municipal Money Market Account 6,990,406 19.6% Not Limited

C- Commercial Bank Restricted Bond Account 0.0% Not Limited

F- State Local Government Investment Pool( LGIP) 18,774,558 52.5% 100%

H- State& Local Government Securities 0.0% 25%/ 25%

Total% and% allowed in one Agenry or Financial InstitutionTotal Portfolio- Interest Bearing Accounts and Instruments 35, 756, 058 100. 0%

C- Commercial Bank Demand 434,960 Not Limited

C- Commercial Bank Zero Basis Accounts 978,805) Not Limited

Total Cash and Other Bank Accounts 543,845)

Total of All Accounts 35,212, 213

Time

Certificate Percent of Allowed

TCD Percentages Allowed by Institution Balance Portfolio Percentage

S 0. 0°„ 25%

0.0° 0 25"

Total of TCDs in All Institutions 0. 0% 50. 0"/ 4)

Percent of Minimum/ Maximum

Portfolio Maturity Dates Amount Portfolio Allowed Percentage

30 Days and Less S 25, 764,963 72. 1% 10% Minimum

90 Days and Less 26, 763,846 74.9% 25% Minimum

366 Days and Less 27,763,846 77. 6% 100% None

12 Months to 18 Months 2,999,059 8.4% 25% Maximum

18 Months to 36 Months 4,993, 153 14.0% 25% Maximum

Matched Long Term Maturities 0.0% Matched

Total Portfolio S 35,756,058 100.0%

PUBLIC FUNDS COLLATERALIZATION PROGRAM( Effective July 1, 20081

ORS Chapter 295 governs the collateralization of Oregon public funds and provides the statutory requirements for the Public Funds CollateralizationProgram. Bank depositories are required to pledge collateral against any public funds deposits in excess of deposit insurance amounts. This providesadditional protection for public funds in the event of a bank loss.

Banks are required to report quarterly to the Oregon State' 1' reasury, providing quarter-end public funds balances in excess of the FDIC limits, net worth,and FDIC capitalization information.

Public officials are required to verify that deposit accounts in excess of deposit insurance limits are only maintained at financial institutions included on thelist ofqualified depositories found on the Oregon State Treasurer' s web site at:

http:// www.ost.statt.or ur/ divisions/ ftnamr/ collateral/ gnabfieddeporitorerpablicfinndr.htm

On June 30, 2018, and at the date of this report, all reporting requirements of ORS 295 are satisfied.

Attachment B- Compliance Report

General Ledger

Summary Trial Balance s•,-.

Penod: 09 to 12. 2018

Fund Description Balance as of 4/ 1/ 18 Debit This Period Credit This Period Balance as of

6/30/ 18

10 General Fund 5,020,240.93 4, 896,630. 85 3,086,002.78 6,830,869. 00

11 Public Works 292, 687.06 3, 445,311. 35 2,212, 125. 24 1, 525,873. 17

12 Public Safety 3,879, 138. 29 3, 904,392. 70 2, 570, 774. 84 5, 212, 756. 15

13 Community Corrections 2,827, 796. 86 1, 322, 506.25 1, 786,192. 92 2, 364,110. 19

14 Public Health 274, 439.42 455, 323. 16 555, 110. 85 174,651. 73

15 Mental Health 792, 945. 04 2, 646, 433. 39 2, 380,695. 05 1, 058,683. 38

16 Grant Projects 930,477. 75 372, 616.38 105, 469. 18 1, 197,624.95

17 Jail& Detention 2, 878,848.44 882, 055.02 2, 105, 227. 34 1, 655,676. 12

20 Building and Safety 1, 184,324. 04 376, 775. 51 246, 738. 79 1, 314,360.76

22 Court Security 5, 112. 71 19, 831. 23 20, 319. 39 4, 624.55

23 Fairgrounds 88,848. 22 244,711. 82 224,671. 20 108, 888. 84

24 Parks 484, 534.16 585, 273. 75 544,113. 46 525, 694.45

25 Transit 254, 054.76 874, 511. 74 909,005. 13 219, 561. 37

26 Animal Shelter& Control 657, 073. 33 155, 626. 55 296, 591. 79 516, 108. 09

30 Clerk Records 18, 733.61 6, 631. 56 2, 644. 72 22, 720.45

31 DA Forfeiture 139, 430.47 751. 58 0.00 140, 182. 05

32 DA Special Programs 32, 695.04 27, 757. 30 32, 719. 52 27, 732.82

33 Juvenile Justice Special Prgms 49, 583. 74 22, 870.14 55, 501. 15 16, 952. 73

34 Public Land Corner Presery 85, 421.39 50,601. 71 42,405. 34 93, 617. 76

35 PW Special Projects 170, 367.47 29,338. 84 26, 553. 91 173, 152. 40

40 Administrative Internal Svc 827, 172. 49 1, 222,082. 32 1, 144, 190.48 905,064.33

41 Co Fleet& Facilities Services 605,275. 66 1, 045,756.86 989, 697. 13 661,335. 39

42 Insurance Reserve 670,659. 61 289, 170. 38 251, 778.88 708,051. 11

43 Payroll Reserve 322, 669. 35 86, 580. 74 94, 193.00 315,057. 09

44 Payroll Clearing 1, 237, 312. 25 4,215, 941. 66 5,660,668. 10 207,414. 19

46 Roads and Bridges Reserve 4, 242, 515. 87 1, 068,261. 94 1, 564,863. 24 3, 745,914. 57

47 Property Reserve 1, 357, 024.25 175, 590.29 350,235. 93 1, 182, 378. 61

48 Equipment Reserve 1, 494,832. 21 272, 777.26 560,598. 28 1, 207, 011. 19

49 Forestry Reserve 725,284.81 63, 474.43 88,853.04 699, 906.20

50 Commissary 106,466. 58 328, 493. 24 331,970. 97 102, 988. 85

51 G. P. Airport 428,894. 68 335, 333. 74 372, 393. 66 465, 954.60

52 I. V. Airport 196, 743.45 599, 979. 53 655, 822. 09 252, 586.01

60 Adult Jail Facility Debt Servi 993, 031. 28 79, 322. 25 1, 025,000. 00 47, 353. 53

61 PERS Bond Debt Service 1, 863, 629.80 458, 585. 91 1, 171, 168. 75 1, 151, 046. 96

71 County School 4, 008.67 257,994. 65 261, 860. 51 142. 81

72 Human Service Programs Trust 40, 592.94 208. 27 20,491.36 20, 309. 85

74 Library Programs Trust 739.40 3. 96 0.00 743. 36

75 PEG Access Trust 32, 457. 54 174.94 0. 00 32, 632. 48

76 Sheriff Forfeiture Fund 34, 955. 26 188. 41 0.00 35, 143. 67

77 Sheriff Programs Trust 86, 829. 26 4, 502.98 1, 632. 00 89, 700. 24

11179 Potential Refund Credit 326,385. 24 1, 759.36 0. 00 328, 144. 60

80 4H Extension District 293,083. 47 25, 396.87 23, 100.00 295,380. 34

81 4H Building Reserve 308, 295. 76 21, 690. 17 0. 00 329,985. 93

82 Deputy Sheriff Relief 5, 679. 91 30. 59 0. 00 5,710.50

83 DA Ckg- USB Witness Revolving 1, 053. 30 0.00 0. 00 1, 053. 30

84 Domestic Violence 800.40 4,925. 00 4,100. 00 1, 625.40

85 Expanded Lien Release 6, 506.64 874. 00 3,804.00 3, 576.64

86 Statutory Liens 0.05 0. 00 0.00 0. 05

87 Perform. Bond 168, 570. 20 19,953. 22 0. 00 188, 523. 42

88 Pre- Payments Trust 4, 616. 87 4,908. 65 0. 00 9, 525. 52

Attachment C- Cash in FundsPage 1

Fund Description Balance as 014/ 1/ 18 Debit This Period Credit This Period Balance as of

6/ 30/ 18

90 Uncashed Cks 98.302 12, 117. 95 2, 555. 17 5, 552. 74 9, 120. 38

91 Holding Suspense 658. 40 1, 051, 418.00 1, 051,013. 00 1, 063.40

92 Childrens Trust Fund 2,088.03 209. 81 0.00 2, 297. 84

93 Car Seat Trust 2, 398. 21 12. 91 0.00 2, 411. 12

94 Assessment& Tax 109, 552. 29 273, 764.45 168, 930.95 214,385. 79

95 JoCo Juvenile Trust 762. 71 4. 09 0.00 766.80

96 Special Advocate Trust 0. 00 0. 00 0.00 0.00

97 Tri Trust Fund 2, 376.86 12. 79 0.00 2,389. 65

98 Unsegregated Taxes 2, 277, 271.33 3, 805, 565. 21 5,460, 259.95 622, 576. 59

99 Segregated Taxes 8, 854.22 4, 922,237. 10 4,901, 503. 81 29, 587. 51

37,617, 643. 67 40, 959,691. 98 43,366, 544.47 35, 210, 791. 18

Attachment C- Cash in FundsPage 2

PERMI I IbD INVESTMENTS UNDER THE JOSEPHINE COUNTY INVESTMENT POLICY

Type A. Legally issued general obligations of the United States:Co Description

USTRS U.S. Treasury Bills, Notes, Bonds,STRIPS U.S. Treasury Strips.

Type B. US Government Agency Securities and Instruments of Government-Sponsored Enterprises:Description

FFCB Federal Farm Credit Banks,

FHLB Federal Home Loan Banks,

FHLMC Federal Home Loan Mortgage Corp.,FICB Federal Intermediate Credit Bank,

FICO Financing Corporation,FLB Federal Land Bank,

FNMA Federal National Mortgage Assoc.,

SLMA Student Loan Marketing Assoc.,TVA Tennessee Valley Authority.

Type C. Deposits in Commercial Banks which maintain a head office or branch in the State of Oregonin the capacity of a bank. As required by ORS Chapter 295, the County Treasurer will beresponsible to ensure that a Certificate of Collateral Participation has been issued by the institution

to collateralize outstanding demand deposits and Time Certificates of Deposits:fde Description

TCD Time Certificate of Deposits,

CDARS TCDs issued through the Certificate of Deposit Registry Service as allowed byORS 295.004

DDA Demand Deposit Accounts,

MMA Municipal Money Market Accounts.

Type D. Deposits in Mutual Savings Banks, Savings and Loan Associations and Federal Credit Unionswhich maintain a head office or branch in the State of Oregon in the capacity of a Mutual SavingsBank, Savings and Loan Association or Credit Union. The County Treasurer will be responsible toensure that a Certificate of Collateral Participation has been issued by the institution to collateralizeoutstanding Certificates of Deposits:

Description

CD Certificate of Deposit.

Type E. Repurchase Agreements ( Repo's): Master Repurchase agreements are required with any bankdealing in Repurchase Agreements.

Code Description

REPO Repurchase Agreements

Type F. Local Government Investment Pool (LGIP): To the limit of ORS 294.810,$ 43,889, 508Effective 1/ 1/ 2011, not limited for funds invested temporarily on behalf of another government unit.

Type G. Bankers Acceptances:Code Description

BA Bankers Acceptances

Type H. Municipal Securities :

fait Description

MUNI State and Local Government Securities

Attachment D—Permitted Investments

Josephine County Treasurer/ Tax CollectorReport of Activity for Quarter Ending June 30, 2018

APR- JUN FISCAL YEAR APR-JUN • FISCAL YEAR

Line 2017 2016- 17 2018 2017- 18

No.

1 TREASURY DIVISION ACTIVITY

2 # Receipts Issued 865 3, 089 847 3. 312

3 # Revenue Receipts( JV's)( ACH's) 1, 383 4, 751 1, 460 5, 510

4 # Checks/Wires 167 1, 027 205 1, 126

7 $ Average Portfolio 29,259,256 $ 32, 875.757 $ 36,014,042 $ 37, 156,572

8 $ Interest Earnings Receipted 99,719 332,582 157,528 513,342

9 $ Interest Earnings Accrued 89,002 350, 018 170,723 502, 766

10 $ Fees Generated- Treas Investment Fee 17, 587 79,433 21, 759 85, 542

11 # Checks Processed( cleared) 1, 899, 8, 080 2,057 8, 183

12 # Tax Distributions 3 16 3 16

13 $ Tax& Delinq. Interest Distributed 2, 904,143 $ 63, 163,673 $ 3, 216,053 $ 73. 545, 982

0 0

14 TAX DIVISION ACTIVITY o 0

15 # Statements Mailed 5,946 58, 161 0 52. 566

16 # Delinquent Notices Mailed 3,205 3, 205 2,943 2, 943

17 # Tax Warrants Issued on MH & BPP 0 61 220 369

18 # Liens Satisfied MH & BPP 18 146 17 141

19 # Notices of Foreclosure Cert& 1st Class 0 395 228 666

20 # Properties Published as Foreclosed 0 32 0 110

21 # Properties Redeemed 4 57 1 22

22 # Properties Deeded 0 5 0 1

23 # Tax Refunds Processed/ Issued 23 402 21 419

24 $ Amount of Tax Refunds Issued 14, 196 402,631 2,452 381, 227

Refunds over$ 10K 0 0 2

25 # of Tax Journal Vouchers 20 151 22 232

26 # of Tax Accounts Re-billed 0 65 0 36

27 # Destro reed Property Applications 0 6 0 3

28 I# Active Bankruptcies# of Properties 75 78 40 58

29 # Prepay Recei tis Issued 7 46 7 53

31 # Register Receipts Issued 5, 101 30.068 5,108 32. 414

32 # e-Payments Processed 330 2, 015 630 2, 994

33 # Lockbox Payments Processed 0 13, 146 0 8. 395

34 # Address Changes 86 617 142 934

35 $ Fees Generated 1, 818 27, 565 2,314 26,627

36 % Current Taxes Collected ($) 96.810% 96. 810% 97.050% 93.585%

37 I$ Current Year Taxes Uncollected 2, 135, 760 2. 135, 760 $ 2, 326,439 $ 2, 326,439

38 Number of Current Accounts Uncollected 2, 571 2, 571 2,973 2, 973

39 % 1- 3 Years Delinquent($) 1. 371% 1. 371% 1. 299% 1. 299%

40 $ 1- 3 Years Delinquent Uncollected 2, 533, 539 2, 533, 539 $ 2, 509, 190 $ 2. 509. 190

1 41 Number of accountsl- 3 years Uncollected 2, 467 2. 467 2,437 2.437

42 % 4 & More Years Delinquent($) 0. 093% 0. 093% 0. 109% 0. 109%

43 '$ 4& More Years Delinquent Uncollected 866, 570 866, 570 $ 1, 084, 981 1, 084,981

44 Number of accounts 4& More Yrs De Iq Uncollect€ 401 401 422 442

Collected Includes Discounts Given) 2. 54%

Attachment E- Quarterly Report of Department Activity by Division

Josephine County Treasurer and Tax CollectorHistory of Property Tax Foreclosures

Through June 30, 2018

Number of Date Number of

Number of Date of Properties Foreclosed Number of Properties

Year of Year Properties Foreclosure With Property Properties OwnerForeclosure Delinquent Published Judgment Judgment Deeded Deeded Occupied

1987 1984/85 188 11/ 4/ 1988 52 4/ 16/ 1991 10

1989 1985/86 130 11/ 24/ 1989 51 4/ 13/ 1992 13

1990 1986/87 133 10/ 25/ 1990 54 7/ 27/1994 8

1991 1987/88 125 12/ 13/ 1991 51 8/ 6/ 1994 9

1995 1988/89 110 10/ 8/ 1992 54 4/ 24/ 1995 6

1993 1989/90 133 10/22/ 1993 35 6/ 6/ 1996 8

1994 1990/91 100 10/21/ 1994 38 4/ 10/ 1997 5 0

1995 1991/ 92 97 10/ 18/ 1995 38 4/ 28/ 1998 6 0

1996 1992/93 94 10/ 8/ 1996 45 5/ 10/ 1999 11 1

1997 1993/94 104 10/ 8/ 1997 43 6/ 9/ 2000 4 0

1998 1994-95 111 10/ 5/ 1998 40 10/ 15/2001 6 1

1999 1995-96 73 10/ 18/ 1999 32 6/ 19/2002 2 0

2000 1996-97 57 10/ 18/ 2000 28 5/ 14/ 2003 2 0

2001 1997- 98 38 10/ 5/ 2001 23 5/ 11/ 2004 3 0

2002 1998- 99 33 10/ 9/ 2002 23 9/ 5/ 2005 2 0

2003 1999- 00 20 10/ 9/ 2003 11 7/ 28/ 2006 2 0

2004 2000- 01 33 10/6/ 2004 14 12/ 21/ 2006 1 0

2005 2001- 02 35 10/ 28/2005 13 3/ 18/ 2008 1 0

2006 2002- 03 21 10/ 17/2006 10 1/ 27/2009 2 0

2007 2003- 04 18 10/ 10/ 2007 7 11/ 30/ 2009 0 0

2008 2004- 05 21 10/ 6/ 2008 10 2/ 22/2011 2 0

2009 2005- 06 33 10/ 14/2009 16 3/ 26/2012 1 0

2010 2006- 07 63 10/ 12/ 2010 37 4/ 22/ 2013 3 0

2011 2007-08 54 10/ 11/ 2011 29 5/ 9/ 2014 5 0

2012 2008- 09 71 10/ 9/ 2012 45 8/ 4/ 2015 5 0

2013 2009- 10 49 10/ 29/ 2013 29 1/ 28/2016 4 1

2014 2010- 11 276 10/ 15/ 2014 171 2/ 9/ 2017 3 1?

2015 2011- 12 39 10/ 22/2015 28 2018 1 0

2016 2012- 13 31 10/6/ 2016 21 2019

2017 2013- 14 110 10/6/ 2017 55 2020

0

li

Attachment F - History of Property Tax Foreclosures

This graph shows the US Treasury 2 year rate from 8/ 7/ 2008 to 8/ 7/ 2018. You' ll notice that the 2 yearinterest rate is in the highest range it has been in since mid- 2009. Graphs of the 1 year, 3 year, and 5

year US Treasury rates look very similar to this one.

GTO2 Govt 95) Corn. are 96} Actions 91) Edit Yield Chart

08/ 07/ 2008 - 08/ 07/ 2018 ' M Yld Cnv USD • May. Avns y! - Key Events i1D 3) 1M 6M YTD 11. SY Max Daily • Table Chart Content

81q)) 8

BEFORE THE BOARD OF COUNTY COMMISSIONERS FOR JOSEPHINE COUNTYSTATE OF OREGON

In the Matter of Terminating a Land )Sale Contract Between Josephine ) ORDER No. 2018-059

County and Wave Enterprises, LLC )

WHEREAS, the Josephine County Board of Commissioners, by Contract executed onJune 20, 2018, agreed to sell to Wave Enterprises, LLC, and Wave Enterprises, LLC agreed tobuy, three parcels of land located within the County, said parcels being described in theContract, a copy of which is attached hereto as Exhibit 1 and is incorporated herein as if fully setforth; and

WHEREAS, a Memorandum of the said Contract was duly recorded by the Josephine

County Clerk as Document number 2018- 7871 in the Official Records of Josephine County; and

WHEREAS, the Contract was conditioned upon performance of certain conditions bypurchaser Wave Enterprises, LLC, including but not limited to the timely payment of monthlypayments in amounts certain, specifically $ 825. 69 due on July 1, 2018 and $ 729. 69 due onAugust 1, 2018; and

WHEREAS, the Josephine County Board of Commissioners finds that the said paymentshave not been made, and that the said purchaser has had ample time to cure the default, noattempt to do so having been made; and

WHEREAS, Oregon statutes, including but not limited to ORS 275. 220 provide specificremedies to Josephine County in this instance;

NOW THEREFORE, the Josephine County Board of Commissioners hereby orders:

1. The said Contract between Josephine County and Wave Enterprises, LLC ishereby terminated, cancelled, rescinded, set aside, and rendered void;

2. Title to the described property remains vested in Josephine County, and anyinterest held or claimed by Wave Enterprises, LLC is void as a result of this termination;

3. A copy of this Order shall be recorded by the Josephine County Clerk;

4. A copy of this Order shall be served on Wave Enterprises, LLC and upon itsregistered representative in the same manner as summons is served by the Sheriff;

Order No. 2018- 059

5. Josephine County may file legal action to have a court declare that any interestheld by Wave Enterprises, LLC is void and that title vests solely in Josephine County;

DATED: August Oct , 2018.

JOSEPHINE COUNTY

OBRD OF COMMISSIONERS

0"Daniel E. 6e oung, , air

r0

ily . Mort- n, Vice- Chairc

Simon G. Hare, Comm sioner

Order No. 2018-059

LAND SALE CONTRACT

Josephine County, Oregon

This Agreement is made by and between JOSEPHINE COUNTY, a political subdivision of theState of Oregon, hereinafter called COUNTY, and WAVE ENTERPRISES, LLC, a South Dakotacorporation, hereinafter called PURCHASER.

WITNESSETH:

In consideration of the terms and conditions hereinafter stated, the parties agree as follows:

1. COUNTY agrees to sell to PURCHASER and PURCHASER agrees to purchase from COUNTYthose certain tracts of land, with improvements thereon, identified as follows:

Parcel 1: Assessor's map 36- 06- 34- 00-001400- 00, more particularly described as follows:

Beginning at the Southwest corner of Tract 82, Township 36 South, Range 6 West of theWillamette Meridian; Thence East 300 feet; Thence North 300 feet; Thence

Southwesterly to the point of beginning.

Chicago Land Co. Subdivision

All in Township 36 South, Range 6 West of the Willamette Meridian.

R321143 - Demaray Drive - 18a- 09)

Parcel 2: Assessor's map 35- 06-20- A0- 004800- 00, more particularly described as follows:

The North 50 feet of the following:

Beginning at the Southwest corner of the Northeast quarter of Section 20, Township 35South, Range 6 West of the Willamette Meridian; thence North 1150 feet, more or less,to a point 400 feet South of the South right of way line of the Merlin Galice Road; thenceEast 100 feet; then South 1150 feet; more or less, to the South line of the Northeastquarter of said Section; then West 100 feet to the point of beginning.

LESS AND EXECPT: Beginning at the intersection of the West line of the NortheastQuarter of Section 20, Township 35 South, Range 6 West of the Willamette Meridian,Josephine County, Oregon, and the South right of way line of the Merlin Road; thenceSouth along said West line 425 feet to the true point of beginning; thence continueSouth on said West line 25 feet to the Northwest corner of that tract described inJosephine County Deed Book 243, page 561; thence East on the North line of said tract100 feet to the Northeast corner thereof; thence North 25 feet; thence West 100 feet tothe true point of beginning.

I

R338120 - Stonebrook VVay - 18a- 17)

Parcel 3: Assessor's map 35- 06- 20- A0- 004801- 00, more particularly described as follows:

Beginning at the intersection of the West line of the Northeast Quarter of Section 20,Township 35 South, Range 6 West of the Willamette Meridian, Josephine County,Oregon, and the South right of way line of the Merlin Road; thence South along saidWest line 425 feet to the true point of beginning; thence continue South on said West

JOSEPHINE COUNTY LAND SALE CONTRACT: Property ID: R321143( 18a-09); R338120( 18a- 17); R338121 ( 18a- 18)Page 1 of 6

EXHIBIT

PAGE

line 25 feet to the Northwest corner of that tract described in Josephine County DeedBook 243, page 561; thence East on the North line of said tract 100 feet to the Northeastcorner thereof; thence North 25 feet; thence West 100 feet to the true point of beginning.

R338121 - Stonebrook Way- 18a- 18)

2. PURCHASE PRICE, TERMS AND DEED: The purchase price of the property which

PURCHASER agrees to pay shall be the sum of Twenty Six Thousand Dollars ($ 26, 000. 00) payable asfollows:

a. The sum of One Thousand Nine Hundred Dollars ($ 1, 900. 00) paid upon execution ofthis document, receipt of which is hereby acknowledged.

b. The balance of Twenty Four Thousand One Hundred Dollars ($ 24, 100. 00) shall bepayable in monthly installments of Seven Hundred Twenty Nine and 69/ 100ths Dollars ($ 729.69). Saidmonthly installments are based on an amortization period of Thirty Six ( 36) months with interest at therate of nine percent ( 9. 00%) per annum. The first monthly payment of Eight Hundred Twenty Five and69/ 100ths Dollars ($ 825. 69), which includes the recording cost of Ninety-Six Dollars ($ 96. 00), shall be

due on July 1, 2018. Subsequent monthly payments of Seven Hundred Twenty Nine and 69/ 100thsDollars ($ 729.69) shall be due on the 1st day of each consecutive month thereafter until the whole sumof both principal and interest has been paid in full. Payments shall first be applied to interest accrued tothe date of payment, then to any amounts past due COUNTY under this agreement other than principalor interest, and then to the principal amount owing.

c. The entire contract balance plus all accrued but unpaid interest thereon shall be paid in

full on or before July 1, 2021.

d. PURCHASER may at any time pay off without penalty the entire balance of the purchaseprice remaining due, together with interest due thereon at the above specified rate to the date ofpayment.

e. At such time as PURCHASER has complied with all the terms of this contract, the

COUNTY shall convey its interest only by a Quitclaim Deed.

f. Unless otherwise directed by COUNTY in writing, payments and all written notices andcommunications to COUNTY shall be sent to:

Josephine County Treasury500 NW Sixth St., Dept. 14

Grants Pass, OR 97526

g. Unless otherwise directed by PURCHASER in writing, all written notices andcommunications to PURCHASER as required by this contract shall be sent to:

Dan Priebs Dakota Agent Services, LLC

Wave Enterprises, LLC 110 E. Center St Suite 2053

451 Abegg Rd. Madison. SD 57042

Merlin, OR 97532

3. TAXES AND LIENS: PURCHASER agrees to pay all taxes and liens hereafter levied upon theproperty and all public or private liens which may hereafter be imposed upon the property as the samebecome due and before they become delinquent. In the event PURCHASER defaults in the payment ofany taxes or liens, the COUNTY may, but shall not be obligated to, pay said taxes or liens on behalf of

JOSEPHINE COUNTY LAND SALE CONTRACT: Property ID: R321143( 18a- 09): R338120( 18a- 17); R338121 ( 18a- 18)Page 2 of 6

EXHIBIT __t

PAGE

PURCHASER, all of which sums so added to the principal balance shall bear interest at the rate ofsixteen percent( 16%) compounded annually from the date of payment by the COUNTY.

4. TAXES STATEMENT: Until a change is requested, all tax statements shall be sent to:

Dan Priebs

Wave Enterprises, LLC

451 Abegg Rd.Merlin, OR 97532

5. INSURANCE: PURCHASER shall keep in force at all times a policy of fire insurance, withstandard extended coverage endorsements, on a replacement cost basis covering all improvements onthe property, in an amount sufficient to avoid application of any coinsurance clause and with losspayable to COUNTY under a standard mortgagee's clause and PURCHASER as their respectiveinterests may appear. Said insurance policy shall also include liability coverage of not less than fivehundred thousand dollars ($ 500, 000. 00) per occurrence.

6. INDEMNIFICATION: PURCHASER shall defend and hold COUNTY, its Commissioners,officers, employees and agents harmless from all claims, losses, damages or liability of any kind arisingout of or in any way connected with PURCHASER' S use or possession of the property.

7. NO STRIP, WASTE, OR SEVERANCE: PURCHASER agrees that PURCHASER shall notcommit any strip or waste on the property, or sever any growing timber from said premises, nor shallthe PURCHASER suffer or permit any strip, waste or severance to be committed on such premises.

8. POSSESSION: PURCHASER shall have the possession of, and the income from the premises

so long as PURCHASER is not in default in the performance of PURCHASER' S agreement withCOUNTY, but shall forfeit PURCHASER' S rights under such agreement and to all payments made

pursuant thereto if PURCHASER fails to pay such purchase price of any part thereof, principal orinterest, or to pay, before delinquency, the taxes thereafter levied against the premises, or commits orsuffers any strip or waste of or on such premises, or violates any other reasonable provision of suchagreement which the County Commissioners may see fit to require. Josephine County Agents mayenter on the property at reasonable times for the purpose of inspecting the property on prior writtennotice delivered to the PURCHASER.

9. ASSIGNMENT: PURCHASER agrees that PURCHASER shall not assign this contract orPURCHASER' S rights hereunder without the written consent of the COUNTY.

10. DEFAULT AND REMEDIES FOR DEFAULT: In the event PURCHASER fails to make twoconsecutive payments provided for herein, or any of them, punctually and under strict terms and at thetimes above specified, or commits or suffers any strip or waste of or on such premises, or the otherterms or conditions of this contract, time of payment and strict performance being declared to be theessence of this contract, then the COUNTY at its option, shall have the right:

a. To cancel this contract in accordance with ORS 275. 220 or other applicable laws.b. To foreclose this contract by suit, in equity, or assert any other right existing by law or in

equity.

In the event of such cancellation or foreclosure all of the right and interest herein created or thenexisting in favor of PURCHASER derived under this contract PURCHASER shall utterly cease, and theright to possession of real property above described and all rights acquired by the PURCHASER shallrevert to and revest in COUNTY without an act of reentry or any other act of COUNTY to be performed,and without any right of PURCHASER of return, reclamation or compensation for moneys paid on

JOSEPHINE COUNTY LAND SALE CONTRACT: Property D: R321143( 18a- 09); R338120( 18a- 17): R338121 ( 18a- 18)4 Page 3 of 6

EXHIBIT

PAGE _..

account of the purchase of said property, as absolutely, fully and perfectly as if this contract and suchpayments had never been made; and, in the event of such default, all payments heretofore made onthis contract are to be retained by and belong to COUNTY as the agreed and reasonable rent of saidpremises to the time of such default.

COUNTY, in the event of such default, shall have the right to immediately, or at any time thereafter,enter upon the real property aforesaid without any process of law and take immediate possessionthereof, together with all improvements and appurtenances thereon or thereto belonging.

The remedies provide COUNTY above are nonexclusive and in addition to any other remedies providedby law.

11. ATTORNEY' S FEES: In the event suit of action is instituted to enforce any of the provisionshereof, PURCHASER agrees to pay such sum as the trial court may adjudge reasonable forCOUNTY' S attorney fees in said suit or action, and if an appeal is taken from any judgment of the trialcourt, PURCHASER further agrees to pay such sum as the appellate court may adjudge reasonable asCOUNTY' S attorney fees on appeal, together with all costs allowed by law.

12. CONDEMNATION: In the event of appropriation of said real property or any portion thereof byany public or private corporation under the laws of eminent domain, the sum or sums of moneyreceived by PURCHASER in payment of said appropriation shall be forthwith paid to COUNTY byPURCHASER on the purchase price of said property as on additional payment on the principal and anyaccrued unpaid interest over and above the regular annual payments, and other payments due asherein expressed; provided, however, that in no event shall said payments be more than the fullpurchase price stated herein.

13. WAIVER: Failure by COUNTY at any time to require the performance by the PURCHASER ofany of the provisions hereof shall in no way waive or affect COUNTY' S right hereunder to enforce thesame, nor shall any waiver by COUNTY of any breach be held to be a waiver of any succeeding breachor a waiver of this Clause.

14. SUCCESSOR INTEREST: The covenants, conditions and terms of this agreement shall extend

to and be binding upon and inure to the benefit of the heirs, administrators, executors, and assigns ofthe parties hereto; provided, however, that nothing contained in this paragraph shall alter therestrictions hereinabove contained relating to assignments.

15. TITLE POLICY: COUNTY makes no warranties or guarantees, expressed or implied, as to thecondition of title of the property subject to this agreement. Title insurance, if any, shall be purchased atPURCHASER' S election and at PURCHASER' S expense.

16. NO WARRANTIES; AS IS: COUNTY makes no other warranties, express or implied, regardingthe property of the condition or state of repair thereof, it being understood by all parties that theproperty will be conveyed to the PURCHASER AS IS.

17. DEVELOPMENT: All actions and costs necessary to develop the property being sold under thisagreement ( the property) shall be borne by PURCHASER. COUNTY makes no warranties, expressedor implied, as to the ability to develop the property under current land use law. COUNTY, in COUNTY' Scapacity as owner of the property, shall cooperate with PURCHASER in PURCHASER' S attempts toobtain necessary permits for development of the property. In the event of any application byPURCHASER, such as permit applications, further subdivision of the property or replatting of theproperty, which requires the consent of COUNTY due to COUNTY' S ownership of the property, suchconsent shall not be unreasonably withheld. When appropriate, such consent shall be given in writingby the Josephine County Board of Commissioners or the Board of Commissioners' designee.

JOSEPHINE COUNTY LAND SALE CONTRACT: Property ID'. R321143( 18a- 091; R338120( 18a- 17); R338121 ( 18a- 18)Page 4 of 6

pC I16IT

PAGE

18. PRIOR AGREEMENTS: This document is the entire, final and complete agreement of the

parties pertaining to the sale and purchase of the property, and supersedes and replaces all prior orexisting written and oral agreements ( including any earnest money agreement) between the parties ortheir representatives relating to the property.

19. NOTICE: Any notice under this contract must be in writing and will be effective when actuallydelivered in person or three days after being deposited in the U. S. Mail, registered or certified, returnreceipt requested, postage prepaid and addressed to the party at the address stated in this contract orany other address either party may designate by written notice to the other.

20. GOVERNING LAW; JURISDICTION; AND VENUE: This contract has been entered into in

Oregon and the property is located in Oregon. This contract shall be governed and construed inaccordance with the laws of the State of Oregon without resort to any jurisdiction' s conflict of laws, rulesor doctrines. Any claim, action, suit or proceeding ( collectively, " the claim") between COUNTY andPURCHASER that arises from or relates to this agreement shall be brought and conducted solely and

exclusively within the Circuit Court of Josephine County for the State of Oregon. If, however, the claimmust be brought in a federal forum, then the claim shall be brought and conducted solely and

exclusively within the United States District Court for the District of Oregon filed in Jackson County,Oregon.

21. HEADINGS: The headings herein contained are for reference only and are not to be construedas party of this agreement.

22. AUTHORITY: By signing this contract the person signing affirmatively represents that he or sheis fully authorized so to act.

23. STATUTORY DISCLAIMER: The following disclaimer is made pursuant to ORS 93. 040.ORS 93.040( 1) " BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRINGFEE TITLE SHOULD INQUIRE ABOUT THE PERSON' S RIGHTS, IF ANY, UNDER ORS 195. 300, 195.301 AND195. 305 TO 195. 336 AND SECTIONS 5 TO 11, CHAPTER 424. OREGON LAWS 2007, SECTIONS 2 TO 9 AND17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. THISINSTRUMENT DOES NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS INSTRUMENT INVIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNING OR ACCEPTINGTHIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THEAPPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEINGTRANSFERRED ISA LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92. 010 OR 215. 010,TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO DETERMINE ANY LIMITS ON LAWSUITSAGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30. 930, AND TO INQUIRE ABOUT THERIGHTS OF NEIGHBORING PROPERTY OWNERS. IF ANY. UNDER ORS 195. 300, 195. 301 AND 195.305 TO195. 336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17,CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010."

ORS 93. 040( 2) '' THE PROPERTY DESCRIBED IN THIS INSTRUMENT MAY NOT BE WITHIN A FIREPROTECTION DISTRICT PROTECTING STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWSAND REGULATIONS THAT, IN FARM OR FOREST ZONES, MAY NOT AUTHORIZE CONSTRUCTION ORSITING OF A RESIDENCE AND THAT LIMIT LAWSUITS AGAINST FARMING OR FOREST PRACTICES. ASDEFINED IN ORS 30. 930, IN ALL ZONES. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THEPERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON' S RIGHTS, IF ANY, UNDERORS 195. 300, 195. 301 AND 195. 305 TO 195. 336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER8, OREGON LAWS 2010. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSONACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTYPLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLYESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92. 010 OR 215. 010, TO VERIFY THE APPROVED

JOSEPHINE COUNTY LAND SALE CONTRACT: Property ID: R321143( 18a- 09); R338120( 18a- 17); R338121 ( 18a- 18)Page 5 of 6

AGE

USES OF THE LOT OR PARCEL, TO VERIFY THE EXISTENCE OF FIRE PROTECTION FOR STRUCTURES

AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS

195. 300, 195. 301 AND 195. 305 TO 195. 336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007,

SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8,

OREGON LAWS 2010."

IN WITNESS WHEREOF, the parties have executed this agreement on the day and year written below.

PURCHASER: , COUNTY:

WAVE - TRP' ISES, LLC JOSEPHINE COUNTY

BOARD OF COMMISSIONERS

Absent at Signingriebs, Member Daniel E. DeYoung, Chair

C- 7-/ EP

Date ily N. oroo n, Vice Chai

Simon G. Hare, Coplmissioner

Date

STATE OF OREGON

ss.

County of Josephine

This document was acknowledged before me on d 1 20 IS , by Dan Priebs,as a Member of Wave Enterprises, LLC.

al RatakOFFICIAL STAMP otary Public for • egon

NOTARYCLE RENEE RODGEN My Commission Expires: 1, q ' LD2tt' . I NOTARY PUBLIC-OREGONCOMMISSION NO. 967566

MY COMMISSION EXPIRES OCTOBER 19, 2021

STATE OF OREGON

ss.

County of Josephine

This instrument was acknowledged before me on this 2ptk) day of l liA ( 7(_ , 207 byLAG ti! VfOr gtn S'tifl c-) I-fa as

members of the Josephirt6 County Board of Commissioners.

V t' Y 8/-a-IA) R-0./0OFFICIAL STAMP Notary PubliOor Oregon

el WENDY LEE WATKINS My Commission Expires: - 1 i 12Y lNOTARY PUBLIC- OREGON

COMMISSION NO. 940869A

MY COMMISSION EXPIRES JULY 12, 2019

JOSEPHINE COUNTY LAND SALE CONTRACT: Property ID: R321143( 18a- 09); R338120( 18a- 17); R338121 ( 18a- 18)Page 6 of 6

MIBIT1 ,PAGE ° Y