#Short Answer
Replace if( r.getColumn() != 5 )
by if( r.getColumn() != 5 && r.getRow() != 1 )
.
#Long answer
&&
is the AND operator r.getRow() != 1
compares the row of the edited cell with the row number that you want to be skipped.
##Full code minimal modification
function onEdit() {
var s = SpreadsheetApp.getActiveSheet();
var r = s.getActiveCell();
if( r.getColumn() != 5 && r.getRow() != 1) { //checks the column & row
var row = r.getRow();
var time = new Date();
time = Utilities.formatDate(time, "GMT-07:00", "MM-dd-yyyy HH:mm:ss");
SpreadsheetApp.getActiveSheet().getRange("E" + row.toString()).setValue(time);
};
};
##Full code improved
Taking advantage that onEdit() event gets an event object that include the range.
function onEdit(e) {
var r = e.range;
var s = r.getSheet();
if( r.getColumn() != 5 && r.getRow() != 1) { //checks the column & row
var row = r.getRow();
var time = new Date();
time = Utilities.formatDate(time, "GMT-07:00", "MM-dd-yyyy HH:mm:ss");
SpreadsheetApp.getActiveSheet()s.getRange("E" + row.toString()).setValue(time);
};
};
#References