MINUTES OF THE CITY COUNCIL MEETING, June 14, 2004

MINUTES OF THE CITY COUNCIL MEETING

June 14, 2004

ATTENDEES:

Mayor, Bob Jepsen

City Manager, Jerry Breazeale

Council Members:

Merle Cowett

Tom Wolff

Cindi Doherty

Kay Robinson

Tim Van Cleave

Bruce Nelson, Public Works

Anne Spicer, City Attorney

Rusty Estes, Fire Chief

Sheriff’s Department:

Deputy Justin Slinger

Sergeant Phil Morris

David Sykes, Heppner Gazette

Absent: Judy Buschke

Members of the Public:

JoyceKay Hollomon

Jerry Hollomon

Ronda Helfrecht

Jamie Helfrecht

1. GENERAL BUSINESS.

A) Call to Order. The June 14, 2004, meeting of the Heppner City Council was called to order at 7:00 PM by Mayor Jepsen.

B) Pledge of Allegiance. Mayor Jepsen led attendees in the Pledge of Allegiance.

C) Announcements.

1) Mayor Jepsen announced that all Council members were present, with the exception of Judy Buschke.

2) Mayor Jepsen announced that today is Flag Day, and is also the 101^st anniversary of the Heppner Flood.

D) Approval of the Minutes from the May 10, 2004 Council Meeting. Minutes were reviewed by members present with the following corrections:

1) Page 5, Para 3A, change to read: that Portion of Shobe Street East of the Riverside Right of Way. This change should be made in both sections of the action on Ordinance 545-04.

2) Page 7, Para 5D, sentence 2. Mr. Wolff would like the sentence to read: “Regarding this letter, Mr. Wolff stated that he doesn’t agree with the calculations as presented in the letter from ODOT.”

3) Page 8, Para b1, line 4. Change “embitterment” to “betterment.”

4. Page 8, Para G, line 7. Change to read “. . . . . . . could terminate the purchase if they so desired.”

2. COMMUNICATIONS FROM THE PUBLIC. None.

3. PUBLIC HEARINGS.

A) Hearing on Use of State Revenue Sharing. No comments.

B) Hearing on City of Heppner Budget for Fiscal Year 2004-2005. Mr. Breazeale identified proposed changes:

1) The first change is a request from the Public Works Department. Page 21. When the budget was drafted, they discussed hiring an additional person year-round for improvements to the water system. Mr. Nelson has requested additional part-time help to assist with additional work during the summer. This would require an increase of $2,206 in the Operations Fund. This would change the transfers to the Operations fund to $40,985, which would make the total Parks Maintenance $59,685. This will provide wages for a part-time utility worker for 11 weeks. This includes Workman’s Comp. State unemployment insurance, FICA, and PERS. This would make the General Fund Contingency $102,357 (page 22). The numbers in the front portion of the document will need to be changed accordingly.

2) Ordinance No. _____, an Ordinance Amending Title 13, The Heppner Flood Damage Prevention Code Penalties for Noncompliance and Declaring an Emergency. Mr. Breazeale explained that this ordinance changes the penalties for noncompliance with the flood ordinance and allows the City to cite daily for a condition that would continue so that if someone was cited for failure to comply with the ordinance, they could be cited daily until they are in compliance.

Public Hearings Closed.

4. COUNCIL ACTION

A) Resolution No. ____ A Resolution Declaring the City’s Election to Receive State Revenues During Fiscal Year 2004-2005.

Motion by Mr. Wolff to approve Resolution No. 565-04, A Resolution Declaring the City’s Election to Receive State Revenues During Fiscal Year 2004-2005. Seconded by Mr. Cowett.

Motion carried unanimously.

B) Resolution No. ____ A Resolution Adopting the City of Heppner Budget for the Fiscal Year Commencing July 1, 2004, Making Appropriations, and Imposing and Categorizing Taxes.

Motion by Mrs. Robinson to adopt Resolution 566-04, a Resolution Adopting the City of Heppner Budget for the Fiscal Year Commencing July 1, 2004. Seconded by Mrs. Doherty. Motion carried: 5 in favor, 1 Opposed (Mr. Wolff).

C) Resolution No. _____ A Resolution Authorizing the Treasurer of Morrow County to Invest the Funds of the City of Heppner Pursuant to ORS 294.035, 294.125 and Other General Authorizations.

Motion by Mr. Wolff to accept Resolution 567-04. Seconded by Mrs. Doherty. Motion carried unanimously.

D) Ordinance No. _____ An Ordinance Amending Title 13, The Heppner Flood Damage Prevention Code Penalties for Noncompliance and Declaring an Emergency. Title read by Mr. Breazeale.

Motion by; Mr. Wolff to adopt Ordinance 546-04. Seconded by Mr. Cowett. Motion carried unanimously.

5. COMMUNICATIONS FROM THE COUNTY SHERIFF REPRESENTATIVE

A) Activity Report. Deputy Slinger reported that Deputy Jewett’s report was not included. Regarding the “detergent sales,” Mrs. Doherty reported that the person had visited her residence. Deputy Slinger stated that her residence is the first one in the city and that most of the incidents reported were outside the city limits, long gravel driveways, shops, and fairly late in the evening. There have not been any more reports, but they have learned that it is an out-of-state vehicle. The County personnel are keeping an eye out for the vehicle, if the vehicle is located they are to find a reason to stop it and determine what they are doing. Deputy Slinger is monitoring this.

B) Police Commission – May 27^th, next meeting June 24. Both Deputy Slinger and Deputy Jewett have been monitoring the Gonty/Wood properties. At this time, they have not had any further complaints. They will continue to monitor. Deputy Jewett has been doing foot patrols on Main Street in the afternoons. Most of the businesses are appreciative of this. Regarding Neighborhood Watch, Deputy Slinger didn’t find any interest from the citizens in the program. If any neighborhoods are interested in this, he will assist them in setting up the program. Mr. Wolff asked if the City has any of the signs, and Deputy Slinger reported that there aren’t any left. Mr. Jepsen stated that if the need arose, people would be willing to purchase the signs. Deputy Slinger stated that the neighborhoods seem to be handling these problems and the Sheriff’s office also has paperwork for people to fill out when they are planning to be out of town. The Deputies then watch the properties on their patrols.

C) Code Enforcement.

1) Monahan property, corner of Court and Cannon Streets. Deputy Slinger reported that the property has been cleaned up and it has also been reported that the occupants of the house on the corner are moving.

2) LeDoux property. Deputy Slinger reported that it has been over a year since the fire. The property does not meet guidelines for rebuilding. The hole in the ground is not safely covered and there are washers and dryers and other debris in the back yard. The Police Commission recommended that the City start action to clean the property. Mr. Wolff feels that there are more liens on the property than it is worth. Mr. Jepsen stated that the City Attorney recommended that we let the property go back to the county for taxes. Mr. Wolff wondered what the City’s liability is if we have an ordinance to clean up the property and don’t do anything. Mrs. Spicer stated that if someone got hurt on the property, the City would be liable. Mr. Wolff asked about the estimated cost of cleaning the property and Mr. Breazeale stated that we were able to get the corrections crew to clean the property, it would be less than $1,000. Mr. Wolff stated that his position would be that the property would never be buildable, possibly with a variance, a manufactured home could be installed. Mr. Wolff asked whether this would become the County’s property and Mrs. Spicer stated that this is correct. Mr. Wolff asked if the property goes back for taxes, would it become the City or County’s responsibility. Mrs. Spicer stated that it would become the County’s responsibility. She also stated that there would be a two-year redemption period on the property after the County takes possession. The City could force the County to clean up the property. According to Mr. Van Cleave, the hole that Mr. LeDoux dug for a cellar is quite deep. The owners of the adjacent property would like the property cleaned up; since their property is for sale and they feel that the condition of the LeDoux property is preventing anyone from buying their property. Mr. Van Cleave stated that the shed on Mr. LeDoux’ property is full of items that Mr. LeDoux wants to keep. Mr. Jepsen stated that he feels that since we have gone this long, could a few more months make any difference. He would like to give Mr. LeDoux a chance to finish retrieving his personal property. Mr. Wolff feels that the citizens want this cleaned up. Mr. Breazeale suggested having the fire department burn the property. Mr. Wolff feels that we should let the fire department burn the main structures and leave the rest for the County. Mr. Breazeale stated that we would have to give Mr. LeDoux thirty days to clean up the property and then the city could have it burned. According to Mr. Jepsen, the neighbors to the rear have stated that the property looks much better than it did. Mrs. Doherty and Mr. Wolff feel that the property should be burned. According to Mr. Breazeale, the first step is to send a letter informing Mr. LeDoux of his rights and then the City would take action. Mr. Cowett wondered if we could state in the letter that the property would be burned.

Motion by Mrs. Robinson to send Mr. LeDoux a letter outlining the City’s proposed actions. Seconded by Mrs. Doherty. Motion carried.

6. COMMUNICATIONS FROM THE PUBLIC WORKS DEPARTMENT

A) Activity Report. Mr. Nelson reported that his crew has been very busy repairing leaks. They have installed a meter on Wilkinson’s property. The have hung the flower baskets on Main Street and are installing a water line on Elder Street to the “lower field” at the elementary school. They have gotten rid of the hazardous waste and are scheduled to dig for the hazardous material reportedly buried in the City yard. They have shut off Well 1. Well 2 is being used as the main well. They are getting ready to hook up chlorine to Reservoir 1. They have been working on major leaks. Mr. Breazeale distributed a picture of a major leak which ran right through a feed lot. This particular leak is on Wilkinson’s property and was a tap off the main line coming down from Well 1. It was still in the right-of-way and a meter has been installed. Mr. Jepsen complimented Mr. Breazeale on walking the line to find leaks. Since the large leak was fixed, the reservoir has been holding. Mr. Breazeale showed a graph of the leak’s progression from the telemetry system. Mr. Breazeale has compiled information on the operation of the wells and reservoirs which he is presenting to the Chamber of Commerce. He also stated that the City is using more water than they are recovering.

B) Utilities Commission meeting. Mr. Jepsen reminded Council members of the tour of City facilities on Thursday, June 17. All members stated that they plan on attending. Mrs. Doherty may not be able to attend due to commitments at her job. The group will meet at City Hall.

C) Parks and Lands. Next meeting, June 28. Mr. Wolff asked if the Parks and Lands commission had made a recommendation to the Council on the Sale or Lease of City Property to Green Feed. According to Mr. Breazeale this was a consensus of members present at the June 1 meeting. (A quorum was not present at this meeting.)

D) Sewage Spill. Mr. Nelson stated that this was operator error and there may be a fine imposed. He is in the process of drafting a check list so that this does not occur in the future.

E) Recent Water Shortage Curtailment Plan. Covered earlier.

F) Additional Discussion. Mr. Cowett reported that the foot bridge by the bowling alley has a loose board that needs repairing.

7. COMMUNICATIONS FROM THE FIRE CHIEF.

Chief Estes reported that a burning ban in the City will be in effect beginning June 25. The Chief’s meeting was held last Thursday in Hermiston. Their burning bans went into effect this week. A notice will be published in the Gazette. This is the fifth year of the drought and with the rain we have had, the 100 year fuels are double what they have been in the past.

8. COMMUNICATIONS FROM THE CITY MANAGER

A) Sale of Property at 510 S. Main Street. Mr. Breazeale informed the Council that the City has received two offers on subject property. Mrs. Hollomon is attending the meeting to explain the offers.

1) The first offer is from Mike Hann, Ukiah. He has been pre-qualified by the bank for a loan. His offer was $20,000, with $300 earnest money, with a closing date of NLT July 29, 2004. H asked for a contingency on qualifying the house. With this sale, the commission to Willow Creek Realty would be $1200.

2) The second offer is from Walter Curry, Stanfield, for $30,000 cash. He issued a $300 note payable on June 17. The balance payable at closing would be $29,700. The commission this sale is $1800. Closing would be on or before June 25.

3) Mr. Hann submitted an addendum offering $29,000 with financing and a requirement that the seller pay for pest and dry rot inspections and treatment if needed.

4) Both offers require installation of smoke alarms on the property.

Motion by Mr. Wolff to accept the offer from Walter Lee Curry for $30,000 to close on June 25, selling as-is with the real estate firm to see that proper smoke detection devices are installed by the real estate firm, the expense to be deducted from the proceeds at closing. Seconded by Mrs. Doherty.

Discussion: Mrs. Hollomon stated that this is a valid offer and she has sold other property to this client. On the Hann offer, closing could be delayed due to the repairs required for the rural direct loan.

Question called for: Motion Carried unanimously.

B) Lease of City Property to Jamie and Ronda Helfrecht, Green Feed and Seed.

Discussion: Mr. Breazeale informed the Council that after the June 1 Parks and Lands commission meeting, he had proposed to the Helfrechts that the City could possibly do a no-cost lease for subject property if they would be willing to pay for the cost of the attorney to draw up the contract, subject to a number of conditions which are outlined on the summary sheet. Mr. Breazeale read the summary sheet outlining the terms of the lease. Mr. Helfrecht felt this lease outlined all the terms he required, with the exception of the length of the lease. The Helfrechts felt five years was a reasonable term for the lease. Mrs. Helfrecht stated that the reason they weren’t purchasing the property at this time is that it would cost more for an appraisal than the property is worth. Mrs. Spicer stated that she felt the five year term was appropriate.

Motion by Mr. Wolff that the City enter into the lease agreement with the Helfrechts for subject property. Seconded Mrs. Doherty.

Additional discussion: Mr. Wolff asked what the tax revenue would be and Mr. Breazeale explained that once the lease is signed, the Assessor would appraise the property and put it on the tax rolls. Mrs. Spicer stated that in essence the rent would be the property taxes.

Question: Motion Carried unanimously.

C) North Main Street Bridge Repair. According to Mr. Breazeale, the bridge has been repaired by the County Public Works department with assistance from the City Public Works. A bill has been submitted to the Miller’s insurance company and so far, nothing has been heard back from them. Mr. Breazeale stated that he feels that the insurance will pay for this, that the price is reasonable, and we now have a high-way rated bridge. Mr. Wolff stated that he was very pleased with the repair of the bridge. Mr. Jepsen agreed that the bridge is excellent. Several members questioned removal of the sign and Mr. Nelson stated that he is leaving the sign up until the insurance claim is paid. Mr. Wolff asked if there had been any more discussion on forming a local improvement district to get the road paved. Mr. Breazeale stated that the residents would have to start the process and get the City Council’s approval. Mrs. Spicer stated that everything is ready to go as soon as the residents get their portion of paperwork together. Mr. Wolff stated that he would ask them to get things together to get the ball rolling.

D) Old Pool to Skate Park Grant Application. Mr. Breazeale informed the Council that he has applied for a grant from the Forest Service under their community applications grants to get minimum work started to make the site usable, to include fencing, railing around the pool, patch broken tiles, steps, and posting of rules. He has asked for $12,500 and Marsha Kemp has taken it personally to get approval.

E) Riverside Avenue Improvements Proposed Grant Applications. Mr. Breazeale reported that he has submitted a grant application to the Forest Service for $25,000 for sidewalks to continue those sidewalks down to the ball field on Riverside. This equates to 1,000 feet at $25.00 per foot. Ms. Kemp also took this in to be reviewed/approved. Mr. Breazeale also has plans to apply for $25,000 from the Small Cities Allotment Program and approximately $500,000 from the BikePed program through ODOT and also enhancement funds. Some of these will be under the stand-alone project so that one project does not depend on approval of the others. Mr. Breazeale also discussed the plans for realigning Riverside that he had discussed with Mr. O’Brien, Morrow County Public Works, Mr. Wolff asked if there was enough room to make turning lanes, etc., and Mr. Breazeale stated that this would be up to the engineers. Moved of the Heppner sign was discussed since it is in the right-of-way.

F) Flood Study – Status report. Mr. Breazeale reported that he had e-mailed FEMA on the status. Their reply stated that they are just about ready to issue a statement on what is taking place. Mr. Breazeale expects to receive the activity statement shortly. The project is moving forward.

G) Land Use Committee – UGB expansion project model plan. Status report. Mr. Breazeale has asked DLCD for the status of this and they stated that this was a City decision as to whether to move forward. Mr. Jepsen stated that he had met with the Mayor of Ontario and he stated that they had had good cooperation with DLCD.

H) Purchase of Klamath 1^st Building – Inspection Report. Mr. Breazeale reported that after the earnest money agreement was entered into, he asked for a building inspection and contacted Ralph Eckis, Certified Home Inspector, who is qualified to inspect the Klamath 1^st Building. Mr. Breazeale stated that he was very impressed with his thoroughness. He pointed out the tunnel under the bank which Mr. Breazeale stated that he personally entered. Mr. Eckis’ recommendation was that we have a professional engineer look at it. Mr. Breazeale contacted Ron McGinnis of RD Engineering who did an additional investigation and he will have a report by the next Council meeting. However, Mr. McGinnis did not seem overly concerned and stated that the tunnel looked structurally sound since it had been there for a hundred years and should last another hundred years. One of the concerns was the floor joists on the east end of the building where there is some dry rot, possibly water coming from the parking lot. Mr. McGinnis’ recommendation was to put another wall inside attached to the basement floor to support the joists, possibly of steel or treated lumber.

There were also concerns on the condition of the roof. Mr. Breazeale contacted a roofing contractor and their estimate to replace the whole roof on both parts of the building would cost $12,695; to do the lower roof, $4,710, which is the one the inspector had the most concern with. The upper roof is a larger roof and would $7,985 to re-roof. Mr. Jepsen asked what type of roof would be used and Mr. Breazeale stated that this would be a membrane roof. Mr. Breazeale suggested negotiating with the Bank of Eastern Oregon to get the price reduced. Mr. Wolff questioned the front foundation wall next to the sidewalk and Mr. Breazeale stated that the inspector was not too concerned about this. Mr. Wolff then asked if there were comments on the fascia and Mr. Breazeale stated that this would be included in the roof report. Mr. Wolff stated that he liked the idea of working with Mr. Koffler on the roof condition and has concerns about the comments from the inspector about the water running behind the soffits and down into the upstairs. He feels this needs to be corrected.

Mr. Breazeale reported that Mr. McGinnes was not too concerned about the soffit problems. Mr. Wolff inquired about the broken water pipes and Mr. Breazeale stated that there were leaks in the hot water pipes and possibly the cold water pipes as well. There is no hot water anywhere in the building due to the water heater being disconnected because of broken pipes. Mr. Wolff suggested using this as a negotiating point with the bank. The building has been vacant since January 2004. Mr. Wolff stated that there has been leakage in the wall in the Chamber office in the past and this had been repaired.

Mrs. Spicer suggested approving the Resolution to Approve a Borrowing to Finance the Purchase of a Building for the New City Hall, with the authorization to negotiate the discussed items on the inspection.

Motion by Mrs. Doherty that we go ahead with the condition of negotiating with the bank on the conditions outlined in the inspection and approve Resolution 568-04. Seconded by Mrs. Robinson.

Motion Carried – 5 votes in favor, 1 vote opposed (Mr. Wolff).

Mr. Wolff stated that he feels this is too much money for a building that needs fixing. Mr. Spicer stated that there can be an emergency Council Meeting to discuss the findings on the negotiations. This meeting will have to be held quickly. She stated the resolution allows Mr. Breazeale and Mr. Jepsen to do the appropriate negotiations. Mr. Wolff stated that he will go along with the Council’s decision after the negotiations, whether he agrees or not.

J) Water System Improvements. Status report. Mr. Breazeale reported that there are no further developments. The engineers are still moving forward on drawing up their plans.

K) Resolution No. ______ A Resolution Adopting Sewer Usage Charges.

Motion by Mrs. Doherty to Approve Resolution No. 569-04, A Resolution Adopting Sewer Usage Charges. Seconded by Mr. Van Cleave.

Motion Carried – 5 Votes in favor, 1 vote opposed (Mr. Wolff)

L) Resolution No. _____ A Resolution Approving the Transfer of Appropriations Within the 2003-2004 Budget.

Motion by Mr. Wolff to approve Resolution No. 570-04, A Resolution Approving the Transfer of Appropriations Within the 2003-2004 Budget. Seconded by Mrs. Robinson.

Motion Carried.

M) Resolution No. ____, A Resolution Approving Accounts Payable for Payment.

Motion by Mr. Wolff to approve Resolution No. 571-04, A Resolution Approving Accounts Payable for Payment. Seconded by Mrs. Doherty.

Motion Carried.

N) Renewal of Audit Contract, Barnett and Moro. Mr. Breazeale recommended renewing the contract for another three years. Mr. Wolff stated that he feels this sounds good to him with the exception that the audit report should be to the Council by the November Council meeting. He feels the pricing is reasonable. He would like the six month period for delivery be amended to read that their report should be ready by the November Council meeting.

Motion by Mr. Wolff that we renew and extend the current contract with Barnett & Moro subject to item 4 being adjusted to delivery within a reasonable time being no later than the regularly scheduled November Council meeting. Seconded by Mrs. Doherty.

Discussion: Mr. Wolff stated that the audit for CBEC is due in September. Mr. Jepsen stated that Barnett and Moro was chosen because of their good reputation.

Question: Motion Carried unanimously.

O) May Financial Statement. According to Mr. Breazeale the City is pretty much in line with the budget.

9. COMMUNICATIONS FROM CITY ATTORNEY. None.

10. COMMUNICATIONS FROM THE MAYOR/CITY COUNCILORS.

Mrs. Doherty asked about the procedure for registering candidates for the next election. According to Mr. Jepsen, it is August 30. Mr. Jepsen also suggested Mr. Van Cleave as a candidate for Mayor.

A) Beautification Commission – Next meeting July 8.

B) Heppner Housing Authority. Next meeting June 28. Mr. Jepsen also brought up the question of someone to fill the Heppner Housing Authority board position and stated that Billie Lacey has agreed to serve.

Motion by Mr. Wolff to appoint Billie Lacey to the Heppner Housing Authority Board.

Motion Carried.

C) Heritage Plaza Dedication, May 28. Mr. Jepsen reported good attendance with a lot of representation from the community. Mr. Wolff stated that he has heard many favorable comments of the wonderful addition to the City.

Meeting adjourned at 9:12 PM.