PRESENT: Mayor Bob Jepsen; Council Members: Mike McGuire, Kay Robinson, Jerri Sly, Rita Hedman, Tim Van Cleave, Skip Matthews; Police Chief: Doug Rathbun; Public Works Director: David Winters; City Manager Jerry Breazeale; City Attorney: Bill Kuhn; Planning Commission Representative: Howard Gilliam

ABSENT: Fire Chief: Rusty Estes

VISITORS: Suzanne Jepsen, Tom Wolff, Forest Burkenbine, Bert Howling.

(Unless otherwise noted, AMOTION CARRIED@ indicates all in favor.)

1. GENERAL BUSINESS

A) Call to Order. Mayor Jepsen called the meeting to order at 7:02 PM.

B) Pledge of Allegiance. Mayor Jepsen led the Pledge of Allegiance to the Flag.

C) Announcements - Mayor Jepsen welcomed all to the Council Meeting and asked if there were any other announcements. City Manager Jerry Breazeale asked to add item (c) under Correspondence, a letter from Heppner Senior High School.

D) Approval of the Minutes from the July 12, 1999 Council Meeting. Motion by Councilor Kay Robinson, Second by Jerri Sly. MOTION CARRIED.

E) Report from Planning Commission Howard Gilliam reported that the Planning Commission had considered a request from Tom Wolff, Jerry Gentry, and David Allstott for improvement of Thompson Street to less than full City Standards. City Manager Jerry Breazeale described the location of Thompson Street, a platted and unimproved right-of-way, extending south of the hospital helicopter landing pad on Morrow Street. He explained that the right of way would be a dead end street and would be a local access street. Howard Gilliam explained that after considering a variety of issues, the Planning Commission was recommending to City Council that the street be improved to ASkinny Street@ standards with a curb on the west side of the street, storm drainage facilities, and compacted aggregate base ready for paving in a twenty foot width. All properties fronting on Thompson Street would be required to sign a non-remonstrance agreement for the formation of a local improvement district to complete the paving and sidewalks that may be required, prior to receiving a building permit. Howard Gilliam explained how development of the street to the narrower ASkinny Street@ standards would be beneficial to the community. Councilor Jerri Sly asked how the street would affect the operation of the helicopter landing site. Breazeale stated that at present when there is a landing of the helicopter at the landing site emergency service personnel secure the area and prevent traffic from driving through. Residents would be prevented from going to or from their homes for the short time during the landings and takeoffs. If there was an emergency where someone had to leave their home, they would most likely be escorted through. Motion by Mike McGuire to accept the Planning Commission recommendation. Second provided by Skip Matthews. Mayor Jepsen asked if there would be parking on the narrow street. Mr. Gilliam stated that parking would be allowed on the curb (west) side of the street. Mayor Jepsen asked if there were any stipulations on the thickness of the pavement to be provided. Mr. Gilliam answered that the pavement would be installed to City standards. Mayor Jepsen then called for the vote. MOTION CARRIED.

F) Correspondence

a) Request by Kari Keown to use City Park for Kids Club, a Bible based club sponsored by the Heppner Church of the Nazarine. Motion by Tim Van Cleave, Seconded by Rita Hedman. MOTION CARRIED.

b) Oregon Trail Library District collaboration proposal on a joint city hall/library. City Manager Jerry Breazeale explained the proposal that had been submitted by Tony Chavez regarding building a joint city hall and library building. The Library District has outgrown the existing library building in Heppner. The library needs approximately 3,000 sq. ft. for their facility. Expansion of the existing building has been ruled out due to the location in the floodway. The District has looked at several existing buildings in the City and have not found anything suitable. The District expressed interest in perhaps building a library on the city owned property on Main Street between the Shoe Box and the Post Office. Since the City has planned to someday build a new city hall on the property, the idea was proposed to jointly build a building to be shared by City Hall and the Library. There would be a number of advantages of collaborating on a joint facility. One would be the potential savings of economies of scale. Another would be that the two facilities could synergistically make the best use of space and resources. Another advantage would be in financing. A number of funding sources are available to both the City and the Library District. Many of the funding sources would look favorably on a collaborative effort to jointly build a building. Breazeale stated that he had talked with persons with Rural Development and had been informed that such a proposal would fit very well with their funding program and that most likely, financing would be available.

Councilor McGuire inquired about the original provisions for the existing library building. Breazeale answered that the building is owned by the City so long as it is used as a library. It is not clear from the agreements what happens when the library moves out. City Attorney Bill Kuhn clarified that the City deeded the area under the footprint of the building to the County. Amanda Duval donated the money to the County to build the building. If the Library moves out, the City and the County will have to negotiate the future of the building.

Questions were asked about funding and the need for moving the library. Breazeale stated that the funding would have to be worked out. There is no budgeted funds for such a facility at this time. The present library is too small and in order to get new books in, old books have to be removed. Bill Kuhn explained that libraries today need computer equipment and access to the internet. There is additional space requirements for such equipment. Bill explained that neither organization had funding and that a combined facility was just a concept at this time. Breazeale stated that it would take community support for such a project and would most likely take a bond issue. The proposal would be developed over several years.

Councilor McGuire stated that he felt there was no harm in looking further into the matter. Breazeale stated that it may be more cost effective to build a new facility than to renovate the existing City Hall to make it more suitable for public use. Mayor Jepsen said there was quite a long time frame in which to research the matter before anything was decided.

Consensus was to further look into the proposal.

c) Letter from Heppner Senior High School. Breazeale read the letter that was submitted by Ron Anthony regarding the closure of the road that runs behind (west) of the High School. The letter stated that the road to the front (east) of the building would be made a two way street. The road to the rear of the school would be opened for games and other school events. Breazeale explained that Mr. Anthony had approached the Technical Advisory Committee regarding this matter and had received a positive response. The long range plan would be to make the road to the front of the building a public street.

2. COMMUNICATIONS FROM THE PUBLIC

A) Oral communications from the public not on the agenda. Suzanne Jepsen, Chairperson for the Willow Creek Valley Assisted Living Corporation, addressed the Council regarding the latest proposal for building an assisted living facility. The nonprofit group is looking for the City to be a potential partner for obtaining financing for the facility. Suzanne Jepsen explained the process that had been completed to date. A phone survey and demographic analysis indicated that there was not enough support for a thirty (30) unit facility. A thirty unit facility was proposed as the smallest facility that could be self supporting and would qualify for state grants and loans. There was indications from the survey and analysis that there was need for a twelve (12) to fourteen (14) unit facility. By combining the operation of an assisted living facility with a hospital for shared administration and staffing, the smaller facility could qualify for state funding and could be financially feasible. The Morrow County Health District Board unanimously authorized their administrator, Sheila Dahlman, to cooperate on the project. Sheila had given Suzanne the name of James Rippy Associates who builds small assisted living facilities of ten (10) to sixteen (16) units in small communities. He has built several facilities. One is in Odessa and another in Wilbur that are in the same situation as Heppner. The one in Odessa has tied in with the small local hospital and is very successful. It filled up right away and Jim believes that one here in Heppner would also fill quickly. He expressed confidence that getting tenants would not be a problem. If the local facility partnered with the hospital, the Willow Creek Valley Assisted Living Corporation would still have a stand alone building on the site that had been selected that overlooks the lake and the valley. The partnering would include using the hospital administration and billing services, their purchasing of supplies and food, dietitian services, janitorial services, and transportation services. Mr. Rippy has spent a couple of days with the WCVAL committee and visiting with members of the community. The WCVAL committee wants to watch the success of the hospital before making the partnership. The concept would only work with the partnership of the hospital, however, according to Mrs. Jepsen. She went on to explain that the Port of Morrow would donate the property and provide site work and trenching. Columbia Basin Electric Cooperative would donate the electric line extension to the facility.

Suzanne explained that she had met with City Manager Jerry and discussed potential financing options. Jerry had suggested that the committee pursue several financing options, one would be a conventional loan, a loan through Rural Development, the Port of Morrow, GEODC, and other state and federal loans and grants. A financial consultant would need to be hired for to pursue all the potential options that may be available. Jim Rippy was not in favor of pursuing federal grants and loans due to the long processing time and the fact that they would place numerous constraints on the project. He suggested that the community show their support for the project by raising a substantial amount of money, perhaps as much as $200,000. Such private donations would give the lending institutions the assurance that the project would be successful. She had visited with George Koffler with the Bank of Eastern Oregon, and he suggested that WCVAL partner with the City for financing to obtain a municipal interest rate.

Attorney Bill Kuhn asked who would be in charge of the employees. It was made clear that the City would not be responsible for staffing. Suzanne stated that the building would be leased to the Health Care District for operation. The Willow Creek Valley Assisted Living Corporation would own the building, or if another option is pursued, the City would be the owner of the building. In any event, WCVAL would stay involved.

Mayor Jepsen stated that the reason the municipal financing is being considered is to obtain a better interest rate. Suzanne explained that she didn=t expect an answer right away, but wanted the Council to know all the avenues being pursued. City Manager Breazeale asked for Council direction regarding considering to assist with the financing. Councilor Robinson stated that there was no reason not to give the proposal further consideration as a decision would come later after all the facts were known. Breazeale stated that would allow the committee to consider all the available options.

Suzanne Jepsen informed the Council that there would be two town hall meeting on September 8^th at the Senior Center. One would be held at noon and the other would be held at 7:30 PM. She hoped that all the Councilors would attend. Mr. Rippy would be present to portray his vision of a small assisted living complex. She stated that the committee would be looking for $200 non refundable deposits to reserve space in the facility. There will also be a request for donations to show community support and to make the project affordable.

3. Public Hearings

A) Abatement of Nuisance at 220 Willow St., Map 2S 26 35BB, Tax Lot #6900. Police Chief Rathbun stated that the owners of this property are working on cleaning up the property and he was not looking for any Council action at this time.

B) Abatement of Nuisance at 280 Matlock St. Map 2S 26 35BC, Tax Lot #8600. Chief Rathbun stated that this property has been under enforcement before. He then showed a video of the property. Chief Rathbun suggested that Mr. Kight be given a thirty (30) day notice to clean up. Motion by Kay Robinson, Seconded by Mike McGuire, to approve Resolution No. 376-99, A Resolution Declaring Certain Property a Nuisance and Ordering Cleanup of Property Belonging to Phillip Kight. MOTION CARRIED.

4. COMMUNICATIONS FROM THE CHIEF OF POLICE

A) Liquor License. Chief Rathbun stated that he had received a licence request for the new owner of the Central Market. There were no problems with the application. Rathbun recommended approval. At this time Bert Howling was introduced by Forest Burkenbine as the new owner of Central Market. Chief Rathbun also stated that there were five (5) other licences up for renewal. Motion by Skip Matthews to approve the liquor license for Central Market. Second was provided by Jerri Sly. MOTION CARRIED.

Kate=s Pizza was also requesting renewal of their liquor license as was the Chevron Station, Court Street Market, The Country Rose, and the Elks Lodge. Chief Rathbun stated that there were no problems with any of them. Motion by Jerri Sly, Second by Skip Matthews. MOTION CARRIED.

Rathbun stated that there was also an application for a license for Cal=s Restaurant. The license was for a license to sell hard liquor. This would make two establishments on Main Street selling hard liquor. Chief Rathbun was recommending approval at this time as there was no history at Cal=s Restaurant. Motion by Skip Matthews to approve the license for Cal=s. Second by Rita Hedman. MOTION CARRIED.

B) Code Enforcement. (This item was discussed earlier, but is placed here to conform to the agenda. Police Chief Rathbun reported that he had received a complaint regarding nuisance conditions on property on Chase Street where a small corral is located. He played a video tape of the property and the conditions found there. After viewing the tape, Council determined that there was not sufficient evidence to prompt a nuisance enforcement.

Chief Rathbun had taped another property of Chuck Matteson that had weeds and assorted debris on the premises. Rathbun listed a number of items that would need to be done to come into compliance. Motion by Councilor Sly, Seconded by Rita Hedman, to send a compliance letter to Chuck Madison to clean up the property. MOTION CARRIED.

C) Activity Report. Chief Rathbun stated that he had obtained a Chevrolet 4x4 diesel pickup from the Army at no cost. The truck will be painted white to match the rest of the fleet in Public Works. Chief Rathbun also distributed copies of the monthly report.

5. COMMUNICATIONS FROM THE PUBLIC WORKS DIRECTOR

A) Public Works Director David Winters reported that they had installed the 8 inch main to the Fairgrounds from the grade school. The tie in with the high pressure main on Stansburry is yet to be completed. The sewer samples are now being delivered to Pendleton by Dave Sykes every Wednesday since they make that trip every week. This will free up Public Works Staff for other things. He reported that a leak had been repaired on South Court Street and a broken meter shut off had been repaired at the Chevron Station after a truck drove over the valve and broke it. Took the Dodge pickup in for recall work, cleaned out the planters along Main Street and sent off letters regarding testing of backflow devices. Dave stated that the requirement for backflow device testing was a State mandate. Customers will have the option of paying the tester directly or having the cost of the testing added to their water bills. Discussion ensued regarding where backflow devices were required and when they had to be tested. Dave then explained that the newly acquired pickup would be painted and would be used for the snow plow and sander. The utility box would be removed from the leased vehicle and placed on the Dodge pickup. The leased vehicle would then be returned to the State. As Dave explained, that after October, the insurance company would no longer provide replacement insurance on that vehicle. Public Works Director Winters explained the work being done on the telemetry system as some components are not working properly. He was hopeful that the problems would be found and repaired soon. Dave then showed a photo of the old swimming pool and building on South Main. He stated that he would like to remove the old wood shading attached to the roof as it was in a state of poor condition and made a bad impression. Consensus was to go ahead and remove the shade structure as the crew had time.

6. COMMUNICATIONS FROM THE FIRE CHIEF

Chief Estes was not present and no report was offered.

7. COMMUNICATIONS FROM THE CITY MANAGER

A) Resolution No.377-99, A Resolution Establishing the Neighborhood Enhancement Team. City Manager Breazeale reviewed the proposal for the Neighborhood Enhancement Team which would allow volunteers to do public improvement projects and be covered by City liability insurance and workers compensation insurance. All projects proposed to be done with the Neighborhood Enhancement Team would be first approved by the City Council to ensure that the project met the expectations of Council, and to prevent any unauthorized use of City equipment. Motion by Mike McGuire to approve Resolution No. 377-99. Seconded by Skip Matthews.

MOTION CARRIED

B) Resolution No. 378-99, A Resolution Setting Policy for the Extension of City Water and Sewer Mains and for Providing Water and Sewer Service to Property Not Adjacent to a City Water or Sewer Main. Jerry Breazeale explained that this item had been discussed at the last City Council meeting as a result of discussions with the Utility Commission. The policy would require mains for water and sewer to be extended where service is requested beyond where an existing main is available. The property owner requesting service would pay for the cost of the extension. The main would be the property of the City. A reimbursement agreement could be offered to the party(s) paying for the extension where other benefitted properties connecting to the main would pay their proportionate share of the cost. This would ensure that other benefitted properties would not get a free ride because their neighbor had paid for the cost of providing service. Motion by Councilor Skip Matthews, Seconded by Councilor Mike McGuire, to approve Resolution No. 378-99. MOTION CARRIED.

C) This item was tabled due to ongoing work on property nuisance abatement.

D) Resolution No. 379-99, A Resolution Approving Account Payable for Payment. Motion by Mike McGuire, Second by Skip Matthews, to approve Resolution No. 379-99.

E) Resolution No. 376-99, A Resolution Declaring Certain Property a Nuisance and Ordering Cleanup of Property Belonging to Phillip Kight. (This item was addressed earlier under public hearings.)

F) Resolution No. 380-99, A Resolution Addressing Concerns Regarding the Year 2000. City Manager Breazeale explained that this resolution was at the request of the insurance company. They were requiring certain things to be done in order to be covered for Y2K problems that may arise. The insurance company wants assurance that the City is taking all necessary and reasonable steps to ensure that critical systems do not fail. This resolution address the major concerns. Motion by Councilor Kay Robinson, Seconded by Councilor Tim Van Cleave. MOTION CARRIED.

G) Special City Allotment Resolution No 381-99. City Manager Breazeale stated that the City has the opportunity to apply for a $25,000 grant from the Oregon Department of Transportation to improve City streets that are inadequate for the capacity they serve, or are in a state of deterioration. Breazeale explained that the grant application required a resolution. Motion by Councilor Kay Robinson with a Second by Councilor Rita Hedman, to approve Resolution No. 381-99. MOTION CARRIED.

H) Additional Discussion. City Manager Breazeale stated that the City had purchased a digital camera. This camera can be used for numerous projects and for publication of the newsletter.

Mayor Jepsen asked about sidewalks on Thompson Street. Breazeale stated that the construction of sidewalks would be included as part of the local improvement district for the paving of Thompson Street. The non-remonstrance agreements that will be signed will include the construction of sidewalks as one of the project requirements.

Breazeale also stated that the Heppner Coordinating Council would be meeting on Tuesday, August 10^th at the Forest Service conference room at 7:30 AM.

8. COMMUNICATIONS FROM THE CITY ATTORNEY.

A) Foreclosure on Rita Heath Property. City Attorney Bill Kuhn stated that the sale was held with no buyers bidding on the property. There were two prospective buyers, but neither were willing to pay what the City has expended on the property. Bill recommended that the City negotiate with the prospective buyers to try to arrive at a suitable price. There would be substantial cleanup cost involved before the property would be very marketable. Ms. Heath would be given reasonable opportunity to remove her personal property. Mr. Kuhn was recommending that the administration negotiate with prospective buyers to get the cleanup done and get the best price out of the property.

B) Impound Ordinance. Bill reviewed with the Council the progress that has been made on drafting the ordinance. It should be ready for passage at the next meeting to be held in September. He had met with the Justice of the Peace and she was prepared to deal with issues which may arise from enforcement of the ordinance. Bill explained the purpose of the ordinance was to provide for impoundment of vehicles for felony violations such as drunk driving, driving while suspended, and driving uninsured. When a stop is made for any of those violations, the vehicle would be towed and impounded. The owner of the vehicle could only get the vehicle back when they could prove that they were in compliance of the law and had paid any required fees.

Attorney Kuhn reviewed progress being made on the use of citations for code violations. The prosecution of the violation would be handled by City police. The judge will be briefed on City Ordinance and the procedures to be followed. Once the arrangements have been made, the police will be able to write tickets for code violations and prosecute before the judge.

As a last issue, Bill was looking into developing an ordinance to provide for formations of local improvement districts. The City does not have an ordinance dealing with LIDs at this time. The basic idea behind the local improvement district, according to Mr. Kuhn, was to give property owners the ability to pay for public improvements over a number of years, usually between ten (10) and thirty (30) years. Bill stated that he was not familiar with the process and was working to get all the necessary information that would be needed. Mayor Jepsen asked Bill if he would be getting ordinances from other cities to use as a model. Bill answered that he would contact the League of Oregon Cities to get copies of some examples to be used.

9. COMMUNICATIONS FROM THE MAYOR/CITY COUNCILORS

Mayor Jepsen stated that he had no communications but asked Skip Matthews how the swimming pool was doing. Mr. Matthews explained that the pool was holding its own and should be able to operate for another year.

ADJOURNMENT

The meeting was adjourned at 9:40 PM