MINUTES OF THE CITY COUNCIL MEETING FOR JULY 12, 1999


PRESENT: Mayor Jepsen; Council Members: Jerri Sly, Kay Robinson, Skip Matthews, Tim Van Cleave, Rita Hedman; Police Chief: Doug Rathbun; City Attorney: Bill Kuhn; City Manager: Gerald Breazeale; Planning Commission Representative:
ABSENT: Councilors, Mike McGuire; Public Works Director: Dave Winters; Fire Chief Rusty Estes.

VISITORS: Greg Sweek, Ken Roberts, Sheila Dahlman.

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

1.GENERAL BUSINESS

A) Call to Order. Mayor Jepsen called the meeting to order at 7:01 PM.
B) Pledge of Allegiance. Mayor Jepsen led the Pledge of Allegiance to the Flag.
C) Announcements - Mayor Jepsen reported that there were a number of guests at the meeting and they would be introduced later in the evening as they were on the agenda. Mayor Jepsen reported that Mike McGuire was not present due to an excused absence. Mike was attending a Post Office convention. The mayor also reported that there was a vacancy on City Council which would be filled shortly. Mayor Jepsen stated that City Manager Breazeale had some announcements to make. Breazeale announced that he would like to add, under item C) Announcements Oath of Office, and under item G) Correspondence , sub item C) The Heppner Chamber of Commerce, Celebrate Heppner and under Communications from the Public add item C) Liquor License, John Goshner (Buckman's) and add item D) Sheila Dahlman and Ken Roberts, Hospital Expansion. Breazeale also explained that there was a copy of Resolution 373-99 in front of each councilor to replace the resolution furnished in the packetts.
Oath of Office Mayor Jepsen explained that he had received two applications for the position of City Councilor vacated by Loretta Nairns. One from Ryan Miller, and one from Rita Hedman. Mayor Jepsen recommended that Rita Hedman be appointed to fill the vacancy. Mayor Jepsen stated that Rita has served in the past on City Council and he respected her for being willing to serve again. MOTION by Kay Robinson to appoint Rita Hedman to fill the position left vacant by Loretta Nairns. SECOND by Jerri Sly. MOTION CARRIED. City Manager Breazeale led Rita Hedman in the oath of office. Mayor Jepsen informed Councilor Hedman that her term would expire December 31, 2000.
D) Approval of the Minutes of June 14, 1999. Motion by Skip Matthews, Second by Tim Van Cleave, to approve the minutes of the June 14, 1999 City Council Meeting. MOTION CARRIED
E) Approval of the Minutes from the June 7, 1999 Joint City Council/Planning Commission Motion by Kay Robinson, Second by Jerri Sly to approve the minutes of the June 7, 1999 joint City Council/Planning Commission meeting. MOTION CARRIED. ABSTAINED: Skip Matthews
A) Report from Planning Commission - None
G) Correspondence

    a) Willow Creek Baptist Church- Request to use City Park July 19-23. City Manager Breazeale explained that the Baptist Church was requesting the use of City Park on Main Street for vacation bible school between the hours of 9:00 AM to 12:00 Noon, between July 19 and July 23rd. The Public Works Department is aware of the request and have no problem with this schedule. The watering and mowing schedules can be accommodated to allow this use. Breazeale stated that he would recommend approval of this request. Councilor Robinson stated that they used the park last year and it all worked out well. Mayor Jepsen stated that they had indicated a desire to do some community service while in town and could sweep sidewalk and gutters if they so choose. MOTION by Councilor Robinson to approve the request. SECOND by Skip Matthews. MOTION CARRIED.

    b) OEDD - Special Public Works Fund Award. Breazeale reviewed a correspondence from OEDD stating that the City has been approved for a $10,000 Technical Assistance Grant for the Water System Master Plan. A contract should be arriving soon for signatures.

    c) Heppner Chamber of Commerce - Celebrate Heppner. Bob Kahl was present to represent the Chamber of Commerce and request that the City sanction the event. Mr. Kahl mentioned that there were two letters in the packett. One from Claudia Hughs asking that the City adopt the event again this year. The City had adopted the event last year and everything went well. The other issue was the table of activities at the event which was from the Merchants Committee. Bob reviewed the list of events and stated that there was not much need for staffing from the City. One area that the City would need to be involved in is the closure of the highway for the activities proposed for Main Street. The highway would be closed from 3:00 PM until 6:30 on the 30th. Mayor Jepsen stated that for the Highway closure we would need to get a permit from ODOT. Mr. Kahl explained that some of the events were sponsored by the Chamber of Commerce and would not need to be covered by the City insurance. These would include the dunk tank and the raffle drawing, blood pressure checks would be sponsored by the hospital. MOTION by Skip Matthews to support the Celebrate Heppner activities. SECOND by Tim Van Cleave. MOTION CARRIED.


2. COMMUNICATIONS FROM THE PUBLIC

    A) Oral communications not on the agenda. None Received

    B) Enterprise Zone Application - Greg Sweek, County Assessor, was acting as enterprise zone manager until the County hires an economic development person. Mr. Sweek reviewed the application that Morrow County had submitted earlier to encompass the Kinzua mill site. That effort was unsuccessful due to the competition for the five zones available. The legislature has opened up ten new zones and will most likely offer five of the zones this fall. The County Court is interested in pursuing the Kinzua site as well as any other site in the Willow Creek Valley included in a Willow Creek Enterprise Zone. One of the issues is whether to include the Hotel/Motel option in the zone description. The County is also trying to determine the interest of the cities in including areas within the enterprise zone for the application. The County would like to have an application ready for submission for the Fall application. OEDD has stated, according to Greg, that the Willow Creek Valley would virtually be assured of having the application approved. Mayor Jepsen asked if the zone could include Lexington since one of the areas identified for industrial development by the Willow Creek Valley Diversification Study was the Lexington Airport property. Greg answered that it could include area outside of the Lexington city limit, but the City of Lexington has stated that they do not want to have the city included within the zone. Lexington has indicated to Greg that they would support what Heppner and Ione would like to do but that they do not want to participate. Some area around Lexington would have to be included in order to extend the zone between Heppner and Ione. The maximum length of the zone between points is 12 miles, and a site around Lexington would be required to stretch the zone. Mayor Jepsen asked what is the maximum length for the time in the enterprise zone. Greg answered that the enterprise zone designation lasts for a maximum of ten years. However, if an industry lands in the zone on the last year, they still get the three year tax exemption even though the zone is being dissolved. Mayor Jepsen stated that if the City of Heppner is not included in the enterprise zone, it would not be able to offer tax incentives for the development of a motel, for instance. Greg confirmed that that would be the case. He also clarified that once the zone is created and property included, it is out of the City's hands to provide the tax incentive. The qualifying business would be able to take advantage of the tax benefits whether or not the City desired it. Where a business meets the statutory requirements for tax exemption within an enterprise zone, the cities and the County have no say in the approval process. If the company were to request a longer time for the exemption, the local governments have some negotiating authority over infrastructure and other issues before the extension of time is granted. Bill Kuhn mentioned that Heppner Economic Development Council had identified a desire for a destination hotel in Heppner and the inclusion of the City within an enterprise zone may be quite desirable. Bill asked Greg if OEDD wanted a larger zone than just the Kinzua site. Greg stated that is correct. OEDD looked more favorably on the other applications that were submitted due, in part, to the larger areas of the other zones. Bill Kuhn suggested that although there is a downside from a tax standpoint, all of the City of Heppner should be included within the zone along with the Urban Growth Area to allow development. Councilor Matthews asked if there were any restrictions on the type of business that could take advantage of the zone. Greg stated that retail business would not qualify. The hotel/motel option is the only non industrial type of business that would qualify. To meet the requirements to extend the tax exemption beyond the standard three years, the industry would have to meet some requirements like their average pay has to be 150% of the County average pay. The question of whether a dairy would qualify was asked by Councilor Matthews. Greg stated that he was unsure and would check on that. Greg stated that the designation of the additional zones and the time for submitting applications was in the hands of Oregon Economic Development. The Governor has signed off on the zones and Art Fish with OEDD said that the applications would be taken this fall, perhaps as early as August. Greg was hoping to avoid a last minute rush like during the last application. Councilor Jerri Sly asked for clarification of the zone and size restrictions. Greg explained that the County would have to provide a legal description of the property included in the zone. Individual parcels could be included within the zone connected only by roadway. The individual parcels could be no further apart than twelve (12) miles. The maximum area within the zone could be no more than twelve (12) square miles. Greg explained that the zone boundary may be amended, however it is a good idea to include all likely or desirable property within the zone to avoid the time constraints and staff time involved with amending the zone. Mayor Jepsen stated that he understood that the chance to locate in an enterprise zone was one of the incentives to locating the Tillamook Creamery in Boardman. The mayor stated that he felt that the entire City should be included within the zone. City Manager Breazeale stated that he felt that providing the incentive of the enterprise zone was important to keeping Heppner and the Willow Creek Valley competitive with other communities which have the advantage of being on a major transportation corridor. Greg Sweek stated that the enterprise zone would only apply to commercial or industrial zoned property. Breazeale asked if the description could include property not so zoned, to allow for potential land use changes. Greg answered that was certainly possible. The zone could include all of a city or urban growth area if desired. Mayor Jepsen asked if Greg was looking for a recommendation from the City Council for the area to include in the zone. Greg stated that would be desirable to have direction from the Council to expedite preparing the application. City Manager Breazeale stated that he would agree with Mr. Kuhn that the City should request that the enterprise zone encompass everything within the Urban Growth Boundary of the City of Heppner. Such zone should include the Kinzua mill site also. MOTION by Kay Robinson with a Second by Tim Van Cleave to request that the County application for the Willow Creek Valley Enterprise Zone include at least the Urban Growth Boundary of the City of Heppner along with the Kinzua mill site. MOTION CARRIED.

    C) Liquor License, John Goshner John Goshner was present to explain his request for changing of the current license do to the formation of a corporation. The renewal application is for Bucknam's Tavern. Mr. Goshner was also requesting to obtain a Class A Dispensers License. According to Mr. Goshner, the rules regarding the license have been changed and Bucknam's would qualify for all of them. No opposition had been expressed by anyone to the license renewal or change. Police Chief Rathbun stated that he had no concerns regarding the operation of the establishment. MOTION by Skip Matthews to recommend the approval of the license applications. SECOND by Jerri Sly. MOTION CARRIED.

    D) Sheila Dahlman and Ken Roberts - Hospital Remodel. Ken Roberts, Architect, gave a presentation to City Council regarding the proposed plans for the hospital remodel and expansion. Ken explained that the hospital was making presentations to the public to explain the plan and gather letters in support of the plan. These letters of support will be helpful in obtaining funding for the project. One of the main goals of the remodel is to make the hospital more efficient. To do this they need to get all of the nursing home on one floor. Presently, the nursing home is downstairs, and the main hospital is on the second floor. The administration is mingled with the emergency room and patient area. This layout is inefficient. The remodel would place the administration in the basement and move the nursing home patients to the second floor. The entrance to the basement would be opened up and make an inviting entry to the hospital. The patient access to the hospital would be available through elevator or stairs from the main entrance. Patients would no longer have to negotiate steps to access the hospital. A dining room would be added to the east end where the existing shop is. The nursing home on the south end would be accessible at ground level from the east side. The shops would be moved under the expansion area and ambulance storage would be added under the nursing home and would be accessed from the West side. The emergency room would be expanded, and ultrasound and mamography equipment would be added. The current trend in the industry is to have more outpatient services and less inpatient service. A pharmacy area would be added. Handicapped accessible bathrooms would be added also. Space for the kitchen would be added as would some common sitting areas. On questioning, Ken stated that there would be room for four ambulances in the garage below the nursing home. Because of code restrictions, the new expansion area would be separated from the old building eleven (11) feet. They would be connected by an enclosed walkway. There would be a round structure on the South end of the addition which would be an activity and dining room. Ken stated that the views from that area are spectacular and maximum advantage would be taken of that. He stressed that for the patients in a nursing home, that was their home and should be as comfortable and inviting as possible. Councilor Rita Hedman inquired into the possibility of a connection with the proposed assisted living facility. Mr. Roberts answered that the administrative connection with the hospital and assisted living facility was still a consideration. The constraints of the existing site where the hospital is would preclude the possibility of the facilities sharing the same site. When asked about the cost of the renovation and expansion, Ken answered that it was under two (2) million dollars. The cost includes Davis Bacon Act, twenty percent contingency, and 1.1 % design fees. He stated that they would be trying to pursue the total package at once. Mayor Jepsen stated that he thought the community would support the expansion as the facility is needed in the area. MOTION by Kay Robinson, SECOND by Jerry Sly to approve the plans for the hospital expansion. (Sheila Dahlman entered the meeting at this time.) Mayor Jepsen introduced Sheila Dahlman, interim administrator for the Morrow County Health District. She thanked the Council for their endorsement of the project.


3. PUBLIC HEARINGS

    A) Abatement of Nuisance at 220 Willow Street, Map 2S 26 35BB, Tax Lot #6900. Chief Rathbun asked that the matter be continued pending work being performed at the property. The owners have been working on cleaning up the nuisance and have to travel from California to do the work. The owners are working with the Chief Rathbun to ensure that the essential work gets done.


4. COMMUNICATIONS FROM THE CHIEF OF POLICE

    A) Code Enforcement. Doug showed a video of property at 280 East Matlock. Doug has been responding to complaints about nuisance conditions at the residence. He was asking for Council direction on whether he should start the formal enforcement procedures. MOTION by Councilor Robinson, SECOND by Councilor Matthews to start enforcement on clean up of the property of Phillip Kight, 280 E Matlock. MOTION CARRIED.

    B) Activity Report. Chief Rathbun explained that he has had a number of old cars towed from the right-of-ways in the City. This was part of the code enforcement activity. He also reported that Assistant Chief Merle Cowett may be retiring soon. He is considering joining the peacekeeping force in Kosovo. Chief Rathbun reported that he is posting an announcement for receiving a list of people who would potentially be interested in filling a position of Senior Patrol Officer. In his opinion, the City is too small for an Assistant Chief. Should Merle turn in his resignation, he would like to have a list of potential candidates to fill a position. The new description for Senior Patrol officer would be second in command and the position would require a minimum of five years experience. Mayor Jepsen referred to the activity report supplied by Chief Rathbun and asked whether the citations reflected the activity relating to the seat belt enforcement program. Chief Rathbun said that many of the citations under the program were written by reserve officers and are not reflected on the activity report which relates only to full time police officers.


5. COMMUNICATIONS FROM THE PUBLIC WORKS DIRECTOR.

    A) Activity Report. Public Works Director Dave Winters was not present. City Manager Jerry Breazeale stated that Mr. Winters had left a written report of department activities. The report stated that the water main extension on Skyline Drive has been completed and is in now in operation. Public Works personnel have been checking the St. Patrick's Senior Apartments to ensure that the light bulbs are replaced as they go out. Two youths have been hired under the CAPCO program for the summer. A hole in the alley behind the Senior Center had opened where an old coal chute used to be. Public Works people have repaired the hole. The pipe and materials have been ordered for the extension of an 8 inch water main to the fairgrounds. The materials are being purchased by the County of Morrow and the Fairboard. The County is digging the trench and City crews will do the installation. The main will extend from Stansburry Street to the new arena. The extension was necessary to provide adequate water for the fire sprinkler system. The benefit to the City is that the main can be extended further along Highway 74 and looped back into the main on Fairview Way. This will solve a pressure and flow problem for the residents on Fairview Way. Breazeale also reported that the noxious weed, dalmation toadflax, has appeared on the old swimming pool property. Our crews have removed it and will be keeping a watch to ensure that it does not return. Breazeale explained that dalmation toadflax is on the Morrow County "A" list. Councilor Robinson asked for clarification of the weed. Breazeale stated that it resembles a yellow snapdragon and is very prolific. Because it is quite attractive, people may not recognize it as a noxious weed. Well 3 is back in service. All City backflow devices have been tested. Two devices were found to be defective and need to be repaired. The next step is to have the private devices tested. Two new valves have been installed on the 8 inch main on Riverside Ave. These valves were installed with the line live and under pressure. Breazeale explained the process used to install the valves. Breazeale reported further that a drainage problem at Gilmore and Willow had been solved by the repair of a collapsed drain line. Councilor Skip Matthews asked whether the water supply for the fairgrounds was from the creek or from the City system. Breazeale answered that they were using City municipal water. The fairgrounds does have a well which is highly productive and they have indicated that the City could use it as a source of supply, if that would be desirable. This potential water source will be included in the water system study to be conducted soon. Bob Kahl asked if there would be a fill point for fire tank trucks on the line main extension. Breazeale answered that there would be a fire hydrant installed near the end of the line at the arena which could be used for filling trucks and also to pressurize the fire sprinkler system.

    B) Utilities Commission Meeting. City Manager Jerry Breazeale reported that the Utilities Commission had its first meeting on June 29th. A copy of the draft minutes had been distributed to all the Councilors. Discussed was a proposed main line extension policy for the extension of water and sewer mains. The policy would require mains to be extended at property owner expense when requests for new service are received from property owners not adjacent to an existing main. Extending mains rather than permitting service lines to be extended would provide long term benefits to both the City and the land owner. The land owner would receive better service at potentially reduced cost with the capability of obtaining fire protection. The City would benefit from having orderly development and the potential to provide service to additional customers. The only disadvantage according to Breazeale, was that in some cases the initial cost of the extension may be prohibitive. The City could provide a program by which property owners extending mains could be reimbursed a portion of their cost for extending the main from future connections to the main. The Utilities Commission was recommending that this policy be pursued. Also discussed was the "Neighborhood Enhancement Team", a conceptual plan which would allow volunteers to do projects to enhance the appearance, safety, and systems of the City. Volunteers under the program would be covered by City liability and worker's compensation insurance. The participants would also have access to City equipment for use on City approved projects. The use of equipment would be as established under administrative policy, and to operate major equipment like backhoes, participants would have to take a training course and be certified competent by the Public Works Director. An example of projects that could be done under such a program, according to Breazeale, was the replacement of damaged sidewalks. The "Neighborhood Enhancement Team" could remove and dispose of old and damaged sidewalks, set forms and prepare the subgrade, and pour and finish the concrete. The adjacent property owner would be expected to pay for the cost of materials such as gravel for subgrade and the concrete. Such a program would lessen the burden for adjacent property owners, reduce liability for the property owner and the City, and would make the City more attractive and welcoming to visitors and residents. Jerri Sly stated that this would free up Public Works crews from having their time taken up by numerous small projects that may be desirable but should be the responsibility of the property owner. Breazeale stated that Public Works Department personnel would not be able to volunteer to work under the program. Also discussed at the meeting was renewal of the sewer discharge permit. One of the requirements on the new permit is to install a gauging station on Willow Creek. This could be an expensive and disruptive activity. The City will seek to profile the creek bank and use depth measurements to determine flow. This would be less disruptive to the creek bank and would be less expensive. DEQ will have to approve this plan before it can be implemented. Another concern under the requirements of the permit is the 85% removal requirement. This could be difficult under current conditions where inflow to the plant is at a low concentration for B.O.D. (biochemical oxygen demand) but this is a requirement of EPA and it is not likely that the requirement could be changed. The permit requires additional monitoring for temperature and ammonia. The permit allows extension of the irrigation season to year round as long as the golf course can use the water.


6. COMMUNICATIONS FROM THE FIRE CHIEF
Chief Estes was not present at the meeting.

7. COMMUNICATIONS FROM THE CITY MANAGER

    A) Resolution No. 373-99 A Resolution Declaring the City of Heppner's Election to Provide Worker's Compensation Coverage to Volunteers/Community Service Workers. City Manager Breazeale explained that the resolution was requested by City County Insurance to define coverage for volunteers. Currently coverage is provided for volunteer fire fighters and police reserve officers. The resolution would expand the coverage to the Mayor and Councilors and to all City volunteer workers and community service workers. This resolution allows coverage to the people who work on any City sanctioned activity such as the St. Patrick's Committee and Celebrate Heppner. Bob Kahl, city insurance agent, gave his prospective on the proposed coverage. Not only would it provide some protection to the City from potential claims, it is a nice gesture to try to protect those who give their time for the City. Mr. Kahl explained the various options available to the City and some of the issues associated with them. The extra cost for premiums for the proposed coverage would be approximately $150 per year for an estimated 200 hours of volunteer work. Breazeale explained that the rate was

    figured using minimum wage. If a volunteer suffered an injury that resulted in lost time from their regular job, their reimbursement for loss of wages would not be very great. MOTION by Councilor Robinson to approve Resolution No. 373-99. SECOND by Councilor Rita Hedman. MOTION CARRIED.

    B) Resolution Declaring Certain Property a Nuisance and Ordering Cleanup of Property Belonging to Alan and Mary Mathews. This matter was tabled pending satisfactory cleanup of the property.

    C) Resolution No. 374-99 A Resolution Adopting the Heppner Community Strategic Plan. City Manager explained that the reason that the plan was presented for adoption was to formally recognize the Heppner Strategic Plan as guiding document for the City of Heppner. The plan was developed over a period of nine months by a committee of community citizens with extensive efforts to obtain public comment. By adoption the Council is stating that the plan will be used to guide administration and staff in meeting the needs of the community. MOTION by Councilor Tim Van Cleave, SECOND by Councilor Jerri Sly. MOTION CARRIED.

    D) Resolution No. 375-99 A Resolution Approving Accounts Payable for Payment. MOTION by Councilor Skip Matthews, Second by Councilor Kay Robinson. MOTION CARRIED.

    E) Irish Twin City Selection of Candidates. Mayor Jepsen referred to the list of candidates that had been received to be entertained for a possible twin city for Heppner. The four cities in Ireland that had been submitted were Abbeydorney, Dingle, Carrick-on Shannon, and Cashil. After discussion, the city of Carrick-on-Shannon was chosen as the city to be contacted for a potential twin city. The winning candidate will be announced at Celebrate Heppner according to Breazeale.

    F) Other Discussion (The following was discussed earlier, but is placed here to conform to the agenda) Mayor Jepsen asked City Manager Breazeale if he had any thing else for discussion. Breazeale answered that one of the goals in the Heppner Strategic Plan was additional housing. He stated that a survey had been prepared to inquire into the market potential for a new subdivision in Heppner. He stated that it is important that anyone thinking of, or desiring to build a new house or move into a new house, to complete the survey. If sufficient interest is expressed, a new subdivision would likely result. If insufficient response is received, potential developers would probably not be interested in investing in this community.


8. COMMUNICATIONS FROM CITY ATTORNEY
A) City Attorney Bill Kuhn stated that the Rita Heath property is still scheduled for sale on August 3rd. A hearing had been held regarding the sale at which Ms. Heath appeared. Ms. Heath failed to produce evidence which would stop the sale. Mr. Kuhn stated that he had reviewed the ordinances to implement the Transportation System Plan and had submitted written comments. He had also drafted an impound ordinance which should come to Council in the future.

9. COMMUNICATIONS FROM MAYOR/CITY COUNCIL MEMBERS
There were no comments from the Mayor or City Councilors.


ADJOURNMENT.
The meeting was adjourned at 9:18 PM.