Out of seven banks and one credit union that have branches in Baker City, just two businesses — Community Bank and Old West Federal Credit Union — haven’t received federal bailout money.

Officials at Old West Federal Credit Union (which isn’t eligible for the federal aid) and Community Bank credited their financial stability to their focus on using money deposited locally to make loans to local individuals and businesses, rather than investing in national or international sub-prime markets.

“We haven’t participated in the federal bailout, nor would we be eligible,” Old West President Ken Olson said. “I’m confident Old West can continue successfully without participating in the federal bailout.”

Even during a recession, striving to retain good employees is a smart investment for businesses and agencies due to the high turnover costs and the shortage of qualified workers, according to the Oregon Employment Department.

The cost of replacing workers varies depending on the the level of training and skill the job requires.

Although fast food restaurants, as an example, often thrive in a high-turnover environment because of the ease of training and deep pool of workers to draw from, recruitment and training costs in other industries can cost businesses tens of thousands of dollars, said Malcolm Boswell, a workforce analyst with the Employment Department.

Becky Guthrie (standing), talks with Jarod Bates, 17, and Fantasia Paschal, 15, about workplace safety, which is the topic of a training video the youths watched Wednesday afternoon. (Baker City Herald/Ed Merriman)

At the Oregon Worksource Center in Baker City, Eric Labonte and Becky Guthrie help workers hone skills ranging from resumé writing and interviewing to computer programs, customer service, math, work safety practices and others needed to land the right job when the opportunity arises.

Guthrie is a youth case manager worksource development specialist at the Worksource Center at 1575 Dewey Ave. in Baker City (across the street from the David J. Wheeler Federal Building).

The Oregon Senate approved two bills Wednesday containing a $176 million package of deferred maintenance and capital construction projects expected to create as many as 3,000 jobs statewide.

The projects, which are slated to begin by April 1, are located in all 36 counties, at all seven state universities and all 17 community colleges, according to a report issued by Senate President Peter Courtney, D-Salem.

Senate Republicans led by Ted Ferrioli, R-John Day, opposed Senate Bills 5532 and 338, calling the legislation a “borrow-and-spend stimulus package” that “doesn’t do enough to ensure the creation of long-term jobs for families across Oregon.”

A procedural motion designed to send the bills back to the budget-writing Ways and Means Committee to craft a more bipartisan stimulus effort failed by an 18-12 vote along party lines.

2008 was a dismal year for the industry, but Community Bank posted significant earnings

Community Bank announced earnings Tuesday of $1.19 million for the fourth quarter of 2008, and $4.1 million for the year – both significant improvements from 2007.

The Joseph-based bank’s loans grew by $29 million, or 14.3 percent, last year mostly due to increased lending to agricultural and small business customers. Despite growth in the loan portfolio, credit quality remains strong, according to AJ Tarnasky, Community Bank’s chief credit officer.

 “We’ve steadily grown our loan portfolio by focusing on relationships with local farmers and businesses, not speculative real estate deals outside our market areas,” Tarnasky said.

baker City Herald file photo/ S. John Collins

“We’ve laid off 50 percent. We are down drastically,” said Clint Morrison, Behlen plant manager.

Prior to the layoffs that have taken place gradually over the past six months, Morrison said the plant in Baker City employed just under 100 people.

“It’s the economic downturn. It has affected sales of all of our products,” Morrison said, adding that the company’s primary products built at the Baker City plant include gates, panels and chutes and other products for the livestock industry and residential and commercial metal fencing and railings.

Baker City company turning logging waste into firewood, and other viable options might include making landscaping mulch

From left, Lane Perry of Elkhorn Biomass in Baker City, Chuck Gambil of Forest Capital and Rick Wagner, biomass coordinator with the Oregon Department of Forestry, talked about the potential market for bundles of firewood split and wrapped at Elkhorn Biomass.

“We are seeing some of the lowest log prices we have seen in many years,” said Bob Parker, forestry agent with the Oregon State University Extension Service in Baker County.

As an example, Parker said 18-inch diameter ponderosa pine logs sold to Boise Cascade in La Grande this time last year brought $550 to $650 per 1,000 board-feet, depending on grade.

Today, similar logs are worth $300 to $350  per 1,000 board-feet — and buyers are scarce.

Gregg Miles says artificial insemination is cheaper, and can produce better calves

Gregg Miles of North Powder had a booth at Saturday’s Cattleman’s Workshop in La Grande, where he touted the benefits of artificial insemination for cattle breeding. (Baker City Herald/Ed Merriman)

The first benefit Miles mentioned to those who paused at the booth he and his father, Myron Miles, set up as two of the sponsors of the workshop is the ability to quickly improve herd genetics and the calf crop by impregnating cows with semen from top bulls costing as much as $100,000.

Most ranchers can’t afford to buy such bulls as herd sires.

Gregg Miles cited published research showing that AI, using top-rated bulls, costs about $40 to produce a calf, while the average cost using bulls that aren’t quite as highly rated ranges from $13 to $20 per calf.

Don Killingsworth was one of the speakers at Saturday’s Cattlemen’s Workshop in La Grande. (Baker City Herald/Ed Merriman)

“This workshop has grown every year, but this is by far the largest crowd we’ve ever had,” said Ron Rowan, an organizer of the Cattleman’s Workshop who works as the marketing manager at Beef Northwest Feeders headquartered in North Powder.

“I think we had 250 last year, and this year we had about 350,” Rowan said. “This workshop is gaining a reputation as one of the best. We have nationally recognized speakers, and people in the cattle business recognize they can come to La Grande and not have to go all over the country to hear these guys.

“People are seeing that they can come here and get value to take home to their ranches,” Rowan said.

Several speakers talked about the benefits of cross-breeding programs, including recommendations on what breeds of bulls and cows add the most value to calf crops.

Tom Brock, right, accepted the Man of the Year award from last year’s co-recipient, Gregg Hinrichsen, far left, and Debi Bainter of the Baker County Chamber of Commerce. (Baker City Herald/Ed Merriman)

“Not many in Baker County know of Tom and his amazing capacity to give. Tom is just a quiet volunteer; he is a silent volunteer,” said Ginger Savage of the Baker 5J School Board in a nominating letter.

She described Brock as “one of those volunteers that is working to keep kids out of the News of Record section of the newspaper” by helping keep kids off drugs and alcohol.

“Tom works with kids who do not go out for football, basketball or scouts,” she said. “Tom doesn’t give up on them and he gives them a reason to go to school.”

One of the things Tom does is helps kids build wheelchair ramps and do home improvement projects for low-income residents of Baker County through the Baker Middle School Builders Club he founded five years ago, according to a nominating letter from Shandra Lee.