MINUTES OF THE CITY OF HEPPNER CITY COUNCIL MEETING

HEPPNER CITY HALL, 111 N. MAIN STREET, HEPPNER, OREGON

7:00 PM, October 8, 2007

 

NOTE:  Where stated “Motion Carried” is considered unanimous, unless otherwise stated.

 

ATTENDEES:

 

Mayor, Les Paustian

City Manager, Dave DeMayo

Judy Buschke

George Koffler

Jo Ann Burleson

Kay Robinson

Cindi Doherty

Glenn Baker

Joann Burleson

 

Brian Harmon, Public Works Director

Anne Spicer, City Attorney

Rusty Estes, Heppner Fire Department

Sgt Randy Rayburn, Morrow County Sheriff’s Department

 

MEMBERS OF THE PUBLIC IN ATTENDANCE:

 

Tammy Malgesini, East Oregonian

David Sykes, Heppner Gazette

Ryan Miller

Joe Miller

David Green

Cliff Green

Judy Eckman

Sharon Robinson

Dan Van Liew

Ed Struthers

Jerry Healy

Ken Bailey

 

1.  GENERAL BUSINESS

 

    A.  Call to Order.  The October 8, 2007 meeting of the City of Heppner City Council was called to order at 7:00 PM by Mayor Paustian.

 

 

 

 

2.  COMMUNICATIONS FROM THE PUBLIC.

 

 

3.  CONSENT AGENDA.

 

 

    B.  Resolution No. 689-07, A Resolution Approving Accounts Payable for Payment.

 

    C.  Monthly Financial Statement.

 

 

7: 30 PM.  Executive Session concluded.

 

4.  COUNCIL ACTION

 

 

With regard to the list of current bills, Mr. Koffler commented that employee’s names should be omitted from the itemized list of payments.  

 

Question:  Motion Carried.

 

5.  REPORT FROM THE FIRE CHIEF.

 

Fire Chief Estes reported the following activities for the month of September.  

 

    1 Wild land Fire

    2 Mutual Aid – once to Ione, and once to Arlington

    1 Motor Vehicle Accident

    3 Landing Zone Secures

 

The rural fire department purchased two new fire trucks.  They are now painted and the rescue equipment is all contained in one vehicle.  There will be two new fire trucks in service.

 

The new command vehicle is in Mr. Estes’ possession.  CSEPP has reimbursed the fire department for the cost.

 

6.  REPORT FROM COUNTY SHERIFF’S REPRESENTATIVE.

 

    A.  Sgt Rayburn reported that the sheriff’s department had 327.5 hours for September.

 

    B.  Mr. Paustian asked if there had been any more research done on abandoned vehicles.  According to Mr. De Mayo he is still in the process of researching this.  

 

7.  REPORT FROM THE PLANNING COMMISSION.  

 

Mr. Paustian reported the following actions by the Commission:

 

    A.  Approved an application from Bonnie Paullus for a manufactured home to be erected on Tax Lot 3400, Map 2S 26E 27DA (345 Linden Way).  

 

    B.  Application from the cemetery district for expansion was tentatively approved.  According to Mr. De Mayo, this will have to come before the Council within one year for the final major partition approval.  Mr. De Mayo stated that for parcel 3 there is an issue issue of access.  There is no access to the property except perhaps through the Van Liew’s property.  Van Liews would have to grant an easement in order to have formal access to the property.  According to Mr. Paustian, in order to access the Willow Creek Highway, a permit from the County is required.  

 

8.  REPORT FROM HEPPNER HOUSING AUTHORITY.

 

Mrs. Buschke reported the following:

 

    A.  The annual apartment inspection went well.  It was conducted by Mrs. Dubuque and Ms. Turner.  

 

    B.  The Fire Drill went well.  Mrs. Buschke commented that Heppner Family Foods needs to be thanked for keeping the store open and allowing the residents to gather there while the inspection was conducted.  Mr. Baker inquired whether any of the tenants had trouble with the stairs during the fire drill.  According to Mrs. Buschke, there were no problems.

 

    C.  One tenant has moved to a nursing home.  Applications for the vacant apartment are being researched with the Housing Authority.

 

9.  PUBLIC HEARINGS

 

Public Hearings Opened at 7:40 PM

 

 

Mr. Koffler asked if the franchise can be transferred.  According to Mrs. Spicer, according to the ordinance, the franchisee cannot transfer the franchise without prior written approval from the Council.  A transfer could be accepted if the Council is completely comfortable with it.  Otherwise a new franchise would have to be written.  Mr. Koffler had asked why several individuals were making presentations when it is his understanding that Mr. Green had sold his business, subject to the franchise being assigned.  According to Mr. Paustian, if Mr. Green sold the business and the Council failed to award the purchaser the franchise, the purchaser would be in an awkward position of having the equipment but unable to operate in Heppner.

 

Mr. Baker asked if the franchise was subject to competitive bidding requirements.  According to Mr. De Mayo, it is not.  The franchise is not being bought or sold by the City.  The City awards the right to do business within the City limits.  Mr. Baker wondered if people were allowed to compete for the right to do business in the City.  According to Mr. De Mayo, there are certain responsibilities that are spelled out in black and white in the franchise.  He feels that if the Council awards the franchise, the Council should see if the people who would like the franchise could meet these responsibilities.  Mrs. Spicer agreed.

 

Presentation:

 

    Mr. Ryan Miller of Miller & Sons presented the following to the Council members.  

 

    1.  Miller & Sons is a family owned business.  They have been in business in Heppner since 1977.  They have 9 full time and 3 part time employees.  At the present time, they have enlarged their business to include larger construction and excavating business.  They also have a Redi-Mix concrete business and a custom rock crushing business.

 

    2.  Mr. Miller and Mr. Green have agreed to the purchase of Heppner Garbage Disposal, contingent upon Council’s decision to transfer the franchise to Miller & Sons.

 

    3.  If awarded the franchise, Miller & Sons would begin training one of his employees this month.  As of November 1, 2007, Miller & Sons would assume full operations of the business.  

 

    4.  Miller & Sons is prepared to accept full responsibilities of the franchise agreement, to include the following:

 

        a.  All solid waste will be dumped at Finley Buttes Landfill.  This will be in compliance with DEQ requirements.

        b.  Miller & Sons currently carries $1 million liability insurance which is twice the amount required.

        c.  Miller & Sons have made arrangements with Wheatland Insurance for the $20,000 bond that is required.  This has been approved.

        d.  Miller & Sons has agreed to purchase all of Mr. Green’s equipment.  Miller & Sons has additional vehicles that could be used for collection, if necessary.

        e.  Miller & Sons is open daily and will publish their home and cell phone numbers to the public.

        f.  Miller & Sons will pick up garbage from anyone requesting service as long as it is paid for and does not contain any illegal waste.  

        g.  Miller & Sons will upgrade existing equipment and maintain it in good repair.

 

The current franchise agreement expires in 2011.  Mr. Miller stated that he is not proposing any rate changes unless the cost of fuel goes up.  Mr. Miller also provided a proposed route map and pick-up schedule.

 

Questions from Council:

 

    1.  Mr. Koffler asked where Mr. Miller would park his trucks.  Mr. Miller stated that they would be parked on his property out of town.

 

    2.  Mr. De Mayo asked about availability of repair parts since some of the vehicles are older.  According to Mr. Miller, he does not expect a problem with this.  

 

    3.  Mr. Paustian stated that a decision on the franchise will be made later in the meeting.  

 

    4.  Mr. Paustian stated that the City will miss Mr. Green.  

 

    B.  Inquiry:  Possible Rent of “Old Dentist Office.”

 

    1.  Mr. De Mayo stated that Mr. Ed Struthers has approached him with regard to renting the space on May Street which was previously leased by Hayden Family Dentist in the rear of City Hall.  At the time the City purchased the City Hall building, the space was rented for $825.00 per month including utilities.  The space is currently being used for storage.

 

    2.  Mr. Struthers is investigating leasing the space for a living space along with his son’s computer business.  There is currently a kitchen and bathroom in the space and Mr. Struthers would like to install a shower where the dark room is presently located.  

 

Mr. Koffler asked if the zoning would allow a residence in the space.  According to Mr. De Mayo, it would be allowed, for example, the apartment behind Hollomon’s.  

 

Mr. Koffler feels the City Manager should be allowed to negotiate terms of the lease, etc.  Mr. Baker feels that this would provide the City with additional income.  Mrs. Buschke agreed.

 

Public Hearing closed at 8:00 PM.

 

 

11.  REPORT FROM THE PUBLIC WORKS DEPARTMENT.

 

 

Discussion:  Mr. Koffler asked about the cold mix installation.  According to Mr. Harmon, the cold mix will be used to repair some of the streets and the Elder Street bridge.  The boards on the bridge will be tightened.  Boards on the Kirk Street bridge have been tightened.  

 

With reference to the public notice for the drinking water, Mr. Harmon suggested using colored paper in the future.  Mr. Struthers asked about chlorination.  According to Mr. Harmon, chlorination is not being done at this time.  There is no requirement from the State.  This is a savings for the City.  Chlorination was discontinued in April.  Normally, the City takes two water samples per month.  However, this month five samples are required because a previous sample tested positive for coliform bacteria.  

 

Council members did not report any “fuzzy water.”

 

Mr. Paustian stated that the new street sweeper is available for inspection.  

 

Mr. Harmon reported that the pistol range has been cleaned.  Mr. Paustian asked about a report from DEQ on the refuse at the City Yard.  Once this is approved, Mr. De Mayo intends to have a work crew from the prison finish cleaning the yard.  Debris will be hauled to Finley Butte.

 

The City has received permission to use the remaining fill material for other projects.

 

12.  REPORT FROM THE CITY MANAGER

 

    A.  Mr. De Mayo reported that most of the items contained in the report have been addressed previously

 

    B.  With regard to Item 3, the FEMA Flood Insurance Study, there have been no challenges to the documents and findings.  FEMA has requested these documents be incorporated into the Flood Control and Prevention section of the City code.  According to Mr. De Mayo, unless there is a justifiable reason, the City needs to incorporate this into the City ordinance.  There is also a new class of structures called critical facilities.  These are schools, hospitals, nursing homes, fire, police, and emergency response installations, or installations which produce, use, or store hazardous materials or hazard waste.  These critical facilities cannot be built in the floodplain.  The elementary school is not affected by this ruling.  There are also new requirements as regards basements and crawl spaces which cannot be constructed in the floodplain.  

 

    C.  The new street sweeper has arrived and the old sweeper needs to be declared excess.

 

    D.  Mr. Harmon has successfully completed his one-year probation as Public Works Director and is officially the Public Works Director.

 

    E.  Mr. De Mayo reported that there was a water incident at the Sr. Center.  The tenant in apartment 301 was filling her kitchen sink and she walked away from it for a considerable period of time.  The sink overflowed onto the kitchen floor; went through the kitchen floor to the ceiling below in apartment 201.  All the water caused the acoustical tile to get wet and drop onto the floor in this apartment.  The water also seeped through the floor of apartment 201 into the main lobby.  The tenant in apartment 201 has been relocated to the motel until her apartment has been cleaned/repaired.  

 

 

 

Discussion:

 

Mr. Paustian reported that Mr. Green has sold Heppner Garbage Disposal to Mr. Miller, pending Council’s decision on the franchise award.

 

Mr. Baker questioned the announcement on Channel 3 wherein Mr. Green had requested a Public Hearing.  The hearing was subsequently cancelled.  Mr. Baker questioned the fact that Request for Proposals had not been advertised.  Mrs. Spicer recommends that the Council consider this a transfer of the franchise from Mr. Green.  Mr. De Mayo stated that originally, there were three applicants interested in the business.  Mr. Baker wants to ensure that this can be transferred.  According to Mr. De Mayo, the competitive bid process does not enter into the picture since the City is not transferring the business.  Mrs. Doherty commented that if the new owner does not meet the terms of the franchise, it could be terminated.  According to Mr. Paustian, the issue has been advertised through the news media that the issue was being considered.  According to Mrs. Spicer, Council has two options:  1)  Terminate Mr. Green’s franchise and start the process from scratch, or 2)  Allow the franchise to be transferred.  

 

 

 

 

Discussion:  Mr. De Mayo reported that the vehicle had been advertised for sale, but that no bids were received.

 

 

    2.  Declaration of old street sweeper as excess property.  

 

 

    3.  Ordinance – Update of Flood Control and Prevention, Section No. 13, City Code.  Title:  An ordinance Amending Chapter 13 Flood Damage Prevention and Declaring an Emergency.  Ordinance No. 561-07.  

 

 

    4.  Wastewater Plant Repairs and Upgrade – Resolution Approving a loan.  

 

Discussion:  Mr. De Mayo reported that the resolution was prepared by the bond attorneys, Preston, Gates, and Ellis, and is a legal requirement.  It has been recommended by the Utilities Commission.  Mr. Harmon stated that a time line for the repairs will be provided to the Utilities Commission at their next meeting.  Mr. De Mayo read the title of the resolution:  Resolution No. 690-07, A Resolution of the City of Heppner, Morrow County, Oregon Authorizing the Execution and Delivery of One or More Lease Purchase, Loan or Similar Financing Agreements.  (Principal Amount NTE $260,000).  

 

Action:  Motion by Mrs. Buschke to approve Resolution No. 690-07, A Resolution of the City of Heppner, Morrow County, Oregon Authorizing the Execution and Delivery of One or More Lease Purchase, Loan or Similar Financing Agreements.  (Principal Amount NTE $260,000).  Seconded by Mrs. Robinson.  

 

In Favor:  Buschke, Baker, Burleson, Paustian, Robinson, Doherty

Abstained:  Koffler

Motion Carried.

 

    5.  Tentative Approval of Major Partition – Heppner Masonic Cemetery.

 

Discussion:  Mr. Paustian stated that this issue has been recommended by the Planning Commission.  Mr. De Mayo emphasized that the issue of access needs to be stipulated as a condition, i.e., some type of easement.  The tentative approval needs to state a condition that there needs to be an easement to Parcel 3 (subject parcel).  There is no easement at this time.  Mr. Paustian stated that Mr. Van Liew had originally agreed to the easement through his property, but has withdrawn his approval and is considering it further.  Mr. Paustian stated that there are other possible approaches.  Mr. De Mayo added that the property abuts the current cemetery on the east, but not on the west.  Mr. Koffler questioned why the property could not be entered from the east.  According to Mr. De Mayo, there needs to be a permanent easement to Parcel 3.  An easement accessing Willow Creek Road has to meet County requirements.  The cemetery board does not foresee requiring access to Willow Creek Road.  According to Mrs. Spicer, if the cemetery board decided to sell Parcel 3, a permanent access is required.

 

 

    6.  Lease of “Old Dental Office.”  

 

 

13.  REPORT FROM THE CITY ATTORNEY.  

 

Discussion:  Mrs. Spicer stated that the Peddler Ordinances need to be modified.  According to her, the ordinance could be written to allow certain exceptions.  Mr. De Mayo is researching the signs that were previously installed at the entries to the City.  

 

14.  REPORT FROM THE MAYOR/CITY COUNCILORS.  

 

 

    B.  Tippage Fees.  Mr. Paustian stated that the County Count will hold a public meeting on November 9, 2007, at 9:00 AM.  Mr. Paustian expects this to be a productive meeting.

 

    C.  Next Council Meeting will be held on November 11, 2007.

 

    D.  There will be a Small Cities Meeting in Heppner on October 17, 2007, at John’s Place, 11:00 AM to 1:00 PM.  Mayors and League of Oregon Cities personnel will be in attendance.  The City of Heppner will cover the charges for the meal.

 

8:37 PM – Meeting Adjourned to Executive Session.

 

8:45 PM – Executive Session Concluded.

 

Action:  

 

Motion by Mr. Koffler that the City of Heppner offer Moore Excavation the sum of $10,000 plus retainage in the amount of $58,000 for a total of $68,000 inclusive of all recoverable interest and attorney fees and other recoverable costs and fees.  Seconded by Mrs. Robinson.

 

In favor:  Burleson, Koffler, Buschke, Doherty, Robinson, Paustian

Opposed:  Baker

Motion Carried.

 

Mrs. Spicer will convey this to the attorneys on Tuesday (October 9).  The attorney wants to make the offer by Friday (October 12) so that Moore has to respond on Monday.  According to the attorney, the next step is to start the discovery.  In the future, Mr. Koffler would like the information regarding this issue to be provided several days in advance in order to allow time for reviewing it in detail.