MINUTES OF THE CITY COUNCIL MEETING FOR January 10, 2000


PRESENT: Mayor Bob Jepsen; Council Members: Skip Matthews, Tim Van Cleave, Rita Hedman, Tom Wolff; Police Chief Doug Rathbun, Public Works Director Dave Winters, City Manager Jerry Breazeale, City Attorney: Bill Kuhn

ABSENT: Councilors: Jerri Sly, Kay Robinson

VISITORS: Karen Wolff, Kelsey Wolff, Ashley Wolff, County Commissioner Dan Brosnan

(Unless otherwise noted, "MOTION CARRIED" indicates all in favor.)

1. GENERAL BUSINESS
A) Call to Order. Mayor Jepsen called the meeting to order at 7:03 P.M..
B) Pledge of Allegiance. Skip Matthews led the Pledge of Allegiance to the Flag.
C) Announcements - Mayor Jepsen welcomed all to the Council Meeting and announced that there was a quorum of the council present. City Manager Breazeale announced that the six month budget summary had been prepared and would be available to any Councilor who would like to have a copy. One was requested by Councilor Wolff. He also stated that the Heppner Coordinating Council would be meeting Tuesday morning at 7:30 AM at the Forest Service Office. The main topic of discussion would be the needs assessment for telecommunications under SB 622.

    D) Swearing in of new Council Member, Tom Wolff Tom Wolff was sworn in by Mayor Jepsen by repeating the oath of office. Mayor Jepsen welcomed Mr. Wolff to the City Council and explained his responsibilities and duties.

    E) Approval of the Minutes from the December 13, 1999 Council Meeting. Mayor Jepsen stated that there was an error on the first page regarding the MIA/POW flag. Where the minutes states "night of" the correct wording would be "National". Councilor Tim Van Cleave stated that on page 5, "Skip McGuire" should be changed to "Skip Matthews". Also, City Manager Breazeale stated that Dave Winters was present at the meeting. Motion was made by Tim Van Cleave, seconded by Skip Matthews to approve the minutes as corrected. MOTION CARRIED.

    F) Report from Planning Commission - No report was given as the Planning Commission did not meet in January.

    G) Correspondence Mayor Jepsen stated that there was correspondence to be reviewed. City Manager Breazeale referred to the letter from Oregon Economic and Community Development stating that the Willow Creek Valley Enterprise Zone was approved including the City of Heppner. The enterprise zone designation includes the hotel/motel exemption. Breazeale also referred to the notice of the Annual Chamber Luncheon to be held at All Saints Episcopal Church, January 11th at 11:00 AM, and the Town and Country Banquet to be held January 13th at the Elk's Lodge at 7:00 PM. Breazeale then referred to a letter from SAIF Corporation stating that the case of Alsea Veneer v. State of Oregon had been settled and there was a check enclosed for the City's share of the settlement. The check was in the amount of $6,852.82.

      2. COMMUNICATIONS FROM THE PUBLIC

    A) Oral communications from the public not on the agenda. - None offered

    B) Intergovernmental Agreement - Willow Creek Valley Enterprise Zone Morrow County Commissioner Dan Brosnan explained that the agreement was similar to the agreement with the City of Boardman. It provides that the City of Heppner will work with Morrow County on issues of extending tax exemptions within the City. He also stated that they would need to appoint a Zone Manager. He was recommending that County Assessor, Greg Sweek, be appointed Zone Manager. Mayor Jepsen asked Commissioner Brosnan if he could supply any more information on the announced tenant for the Kinzua mill site. Brosnan stated that the company would manufacture board made from wheat straw. They would be occupying a couple of the existing buildings according to information available to him. Motion by Skip Matthews, second by Rita Hedman, to approve the Intergovernmental Agreement and appoint Greg Sweek Zone Manager. MOTION CARRIED.


3. PUBLIC HEARINGS

    A) Low Income Senior and Disabled Persons Water and Sewer Rates. Mayor Jepsen opened the public hearing and asked City Manager Breazeale to explain the proposed adjustment. Breazeale reviewed the history of the Low Income Senior Rate that was established in 1976. While the water and sewer rates for everyone else had been raised from time to time to reflect costs of operating the systems, the rate for low income seniors had not been adjusted. Surrounding cities had been contacted to determine what they had available for reduced rates for low income seniors. Results had varied from no special rate in Pendleton, to a 50% discount in Hermiston. The Hermiston rate also applied to low income disabled persons. The Utilities Commission had studied the senior rate and was recommending that the rate be set at 50% of the base minimum rate for the first 5,000 gallons for water and 50% of the regular rate for sewer and sewer bond. The Utilities Commission was also recommending that the rate be made available to low income disabled individuals. Water usage above 5,000 gallons would be billed at the regular rate of $0.80 per 1,000 gallons. The concept being that the rate was reduced to help low income seniors and disabled persons meet their basic needs for water and sewer service. The Utilities Commission believes that 5,000 gallons is adequate for all basic domestic needs. Water usage above that amount would be discretionary and should be billed at the normal rate. Breazeale reported that letters had been sent to all customers who are currently on the special rate advising them of the proposed rate adjustment and notifying them of the public hearing. A news release was printed in the Gazette Times about the proposed rate adjustment and public hearing. A public notice had also been published in the paper. Breazeale stated that he had received no calls regarding the proposed rate increase other than one caller asking about the time and place for the hearing. He stated that one of the recipients of the low income senior rate had told him in person, that the rate was too low. Breazeale also stated that the rate would apply to renters as well as homeowners. Annual proof of income would be required to ensure that the recipient sill qualified.

    No one was present to give testimony regarding the proposed water and sewer rate adjustment.

    B) Resolution No. 398-2000, A Resolution Adopting the City of Heppner First Supplemental Budget for Fiscal Year 1999-2000.

    Mayor Jepsen opened the public hearing on the supplemental budget. No one was present to testify. Mayor Jepsen closed the public hearing. Motion by Tom Wolff, second by Tim Van Cleave to approve Resolution No. 398-2000. MOTION CARRIED.


4. COMMUNICATIONS FROM THE CHIEF OF POLICE

    A) Code Enforcement Chief Rathbun showed a video tape of the apartment building at 168 W Willow, which was next door to City Hall. He stated that he had received numerous complaints on the property. Evident in the video were trash and debris, a disabled vehicle, and appliances. Motion by Skip Matthews, seconded by Tim Van Cleave to start the formal process to obtain compliance. MOTION CARRIED.

    Rathbun next showed a video on the car lot south of City Hall. The lot contains many unlicenced vehicles and the tenant no longer has a valid vehicle dealer licence. Discussion ensued regarding the history of the car lot and ownership. Motion by Tom Wolff, second by Skip Matthews, to start the cleanup process. MOTION CARRIED.
    B) Activity Report. Police Chief Rathbun had furnished an activity report for his department. Chief Rathbun stated that there was another seatbelt campaign coming up next month and traffic tickets will increase.


5. COMMUNICATIONS FROM THE PUBLIC WORKS DIRECTOR

    A) Activity Report- Public Works Director Dave Winters distributed a list of department activities for December. Skip Matthews asked about the meeting on the bank of Shobe Creek. Dave explained that the Water Control District was contemplating doing work on Shobe Creek within the city limits where it runs parallel to Cannon Street. There has been erosion of the bank and the District wanted to shore it up. He stated that he and City Manager Breazeale had met with Al Osmin to discuss the proposal. Breazeale stated that the proposal was to install stacked concrete blocks along the south bank of the creek. Tom Wolff asked Dave if the City had used Insituform for any sewer repair work. Dave stated that they had not used it due to the high cost. (The following was discussed under Communications from City Manager but is placed here to conform to the agenda.) City Manager Breazeale stated that one of the items not clear on Dave's report is that the altitude valve on Reservoir 2 has been repaired and adjusted. This valve had been inoperable previously and large quantities of water had been wasted into Shobe Creek when the reservoir overflowed. The valve is now functioning properly and the wasting of water will be eliminated for the most part.

    B) Utilities Commission Meeting Mayor Jepsen stated that there would be a Utilities Commission meeting on January 18th at City Hall, at 8:00 AM.

    C) Acceptance of Thompson Street Water and Sewer Lines Mayor Jepsen stated that the water and sewer lines that were installed on Thompson Street need to be accepted. Mayor Jepsen reminded Council of the relocation of the water line that crossed a parcel of property that fronted on Thompson Street. Motion by Skip Matthews, second by Rita Hedman, to accept the water and sewer lines installed on Thompson Street. MOTION CARRIED.


6. COMMUNICATIONS FROM THE FIRE CHIEF - Chief Rusty Estes was not present.


7. COMMUNICATIONS FROM THE CITY MANAGER

    A) Resolution No.399-2000, A Resolution Approving Accounts Payable for Payment. Motion by Tim Van Cleave, second by Tom Wolff. MOTION CARRIED.

    B)Resolution No 400-2000, A Resolution Approving the Transfer of Appropriations Within the 1999-2000 Budget. Breazeale reviewed the proposed transfers which were necessary to provide for payment of certain bills and anticipated expenses. Motion by Skip Matthews, second by Rita Hedman. MOTION CARRIED.

    C) Resolution No 401-2000, A Resolution Establishing a Discounted Water and Sewer Rate for Disabled Individuals on a Low and Limited Income and Individuals 65 Years or Older on a Low and Limited Income. Breazeale explained that this was the resolution to implement the recommendation of the Utilities Commission. Motion by Tom Wolff, second by Tim Van Cleave to approve Resolution No. 401-2000. MOTION CARRIED.

    D) Resolution No. 402-2000, A Resolution Establishing Goals for 2000. City Manager had presented a draft resolution based on the discussions of the previous meeting. Upon review of the goals in the resolution, Tom Wolff asked to change the wording under the 7th bolded item to drop the word develop and start with the word maintain so the goal would read: Maintain a strong and responsive law enforcement and crime prevention system, including citizen participation, to curtail the growth of crime and vandalism. Mayor Jepsen stated that the City has supported new industry in the local area and asked if this was covered or if it needed to be added. The goals were reviewed to determine if this was stated clearly anywhere in the draft goals.

    Skip Matthews asked to add a goal which would read: Promote business recruitment in Heppner and the Willow Creek Valley. Motion by Skip Matthews, seconded by Tom Wolff to approve Resolution No. 402-2000 with the above changes. MOTION CARRIED.

    E) Water System Master Plan- Progress Report. Breazeale explained that he had been gathering data on the water system for the computer model and loading it into the City's computer. He stated that he had run a few scenarios and needed to work out some problems with the model. He explained that the system, although small, is incredibly complex due to many different pipe routings that cross and overlap and may or may not be tied in together. Mayor Jepsen stated that we were making progress on the plan and hoped that we could accomplish much of what we set out to do.

    F) Heppner Coordinating Council - Oral report. City Manager Breazeale stated that the Heppner Coordinating Council had discussed the possibility of establishing a web site for marketing Oregon's Willow Creek Valley. The Coordinating Council was very supportive of the idea and wanted to see it proceed. HEDC was approached with the idea of publishing on the web the marketing brochure prepared by Elesco on Oregon's Willow Creek Valley. HEDC indicated strong support for the idea and wished to sponsor the site. The Port of Morrow is also supportive and has offered financial assistance. Jerry Breazeale stated that the next meeting would be Tuesday the 11th at the Forest Service Office and the main topic of the meeting would be the community telecommunication needs assessment. This is required by SB 622 prior to funding under the bill. Lisa Breckenridge with GEODC would be at the meeting to gather information and to explain the process.

    G) Speed Zone Reduction- North Highway 207/74 Mayor Jepsen stated that this speed reduction request was submitted some years ago by Gary Marks and was just now completed. Chief Rathbun stated that he wanted to reduce the speed along the highway by the swimming pool to 25 MPH. Breazeale reported that the recommendation was to leave all the speed zones as they are except for the short portion from Riverside to where the speed changes to 35. The recommendation was to lower the speed from 55 to 45. The City has the option to accept the recommendation as it is, do nothing which would leave the zones as they currently are, or to appeal the decision. After discussion, Skip Matthews made a motion to accept the recommendation. A second to the motion was made by Rita Hedman. MOTION CARRIED.


Mayor Jepsen asked City Manager Breazeale if there were any other items for discussion. Breazeale stated that the Association of Oregon Counties was asking for support of legislation to provide counties and schools with revenue from federal lands to replace lost funds due to reduced timber harvests. Morrow County Commissioner Dan Brosnan explained that timber harvests are now well below historical levels. Because of the reduced harvests, the owl protection bill for the west side of the Cascades, and the safety net was established for the east side of the Cascades. Both are set to expire soon. Two bills were introduced, one in the House and one in the Senate. He explained the formulas proposed to pay counties for public lands within the state. The Association of Oregon Counties is asking for additional support for the concept of providing revenue from the federal government for public lands within the state. Sixty percent of the land in Oregon is in federal ownership and the US government pays no taxes on that land. Motion by Skip Matthews, second by Tim Van Cleave to endorse the concept of federal payments to the schools and counties for lands within the states. MOTION CARRIED.



8. COMMUNICATIONS FROM THE CITY ATTORNEY

    A) Local Improvement District Ordinance City Attorney Bill Kuhn reported that there had been little progress on the proposed ordinance.

    B) Code Enforcement Mr. Kuhn reported that he had discussions with the District Attorney regarding enforcement of local codes. The District Attorney would be meeting with all of the cities in Morrow County and informing them of the policy of code enforcement.

    C) St. Patrick's Senior Center Financing Mr. Kuhn reported on the work being done to provide financing for the Housing Authority to renovate the building. The proposed package would involve extending the terms on the existing general obligation bond for a longer period on the remaining balance. The additional funds needed for the renovation would be secured by the building equity. The goal is to keep the monthly payments at the current level.


    9. COMMUNICATIONS FROM THE MAYOR/CITY COUNCILORS

    A) Mayoral recommendations for appointments to boards and commissions. Mayor Jepsen reported that it was time for him to make his annual appointments for boards and commissions. He made the following appointments: Planning Commission; Howard Gilliam, and Deborah Kendrick. Budget Committee; Jim Wishart and Joyce Kay Hollomon. Housing Authority Board; Barb Watkins and Karen Dubuque. St. Patrick's Committee; Claudia Hughs and Cara Osmin. Christmas Parade of Lights; Darrel Raver and Bob Kahl. Police Commission; Rita Hedman. Personnel Committee; Tom Wolff. Motion by Skip Matthews to approve Resolution 403-2000, A Resolution Ratifying Appointments to Committees, Boards, Commissions, and Positions. Second provided by Tom Wolff. MOTION CARRIED.

    B) Beautification Commission- Set first meeting date. Mayor Jepsen stated that a meeting date had not been established for the Beautification Commission. Consensus was to have City Manager Breazeale notify the Councilors of the date he can establish, preferably in February.


    Mayor Jepsen asked if there were any other items for discussion. Councilor Skip Matthews reported that agriculture in Morrow County was suffering from a combination of low prices coupled with drought. Without the Federal subsidies programs, many farms could go out of business.


    Mayor Jepsen reported that the deal with Union Oil had not been obtained at this point. He had been expecting the papers to be in the mail. Jepsen stated he would remove the fence around the property as soon as the agreement has been obtained.


ADJOURNMENT
The meeting was adjourned at 8:50 PM