MINUTES OF THE CITY COUNCIL MEETING

May 10, 2004

ATTENDEES:

Mayor, Bob Jepsen

City Manager, Jerry Breazeale

Council Members:

Merle Cowett

Tom Wolff

Cindi Doherty

Kay Robinson

Judy Buschke

Tim Van Cleave

Bruce Nelson, Public Works

Anne Spicer, City Attorney

Rusty Estes, Fire Chief

Sheriff’s Department:

Deputy Justin Slinger

David Sykes, Heppner Gazette

Dave Fowler, Planning Commission

Members of the Public:

Jerry Healy

Carmen Healy

Johanne Wood

Joe Burleson

Joan Burleson

Sherry Ewing

Kit George

Skip Connor

1.  GENERAL BUSINESS.

      A)  Call to Order.  The May 10, 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 those present in the Pledge of Allegiance to the Flag.

      C)  Announcements. 

            1)  Mayor Jepsen welcomed attendees to the meeting.  All Council members were in attendance. 

            2)  Mr. Breazeale announced that there was an addition to the Agenda:  Item 9A, Resolution consenting to representation of Kuhn & Spicer for the financing of the City of Heppner’s purchase of the former Klamath First Bank building form the Bank of Eastern Oregon. 

            3)  Mr. Breazeale asked that the Ordinance Amending Title 13, The Heppner Flood Damage Prevention Code Penalties for Noncompliance and Declaring an Emergency, be deleted from the agenda.

      D)  Approval of Minutes from April 12, 2004 Council Meeting.  Council members reviewed the April 12, 2004 minutes.  One minor correction to insert a line space.

            Motion by Mr. Cowett to approve the minutes of the April 12, City Council meeting.  Seconded by Mrs. Robinson.  Motion Carried (Mrs. Buschke abstained due to her absence at the April 12 meeting.)

      E)  Report from the Planning Commission. 

            1)  Mr. Fowler reported on the variance requesting relief from setback submitted by Jerry Gentry for Robert Hires’ garage.  Mr. Fowler stated that terracing was not included in the plan and was not a necessary requirement.  The variance was granted.

            2)  Mr. Jepsen asked Mr. Fowler, in his capacity as shop teacher at the high school, if the class was going to work on the windmill at Heritage Plaza and if so, when would it be done.  Mr. Fowler stated that they are planning this project but are not sure if it will be done in time for the dedication of the Plaza on May 28.

      F)  Correspondence: 

            1)  Mr. Breazeale reported on the Household Hazardous Waste Collection Event, June 4 and 5.  This is hosted by the City of Pendleton and Mr. Nelson reported that the Public Works crew is planning to participate and is gathering material to transport to Pendleton.

            2)  Announcement from Morrow County Planning Department.  Mr. Breazeale reported that discussions on long range water plans for Morrow County have begun.  The purpose of the discussions is to plan how the needs of industry, irrigation, and municipal users will be met in the future.  They are currently advertising for requests for proposals from consultants to develop a long range plan.

            3)  Request from Morrow County Fair Board to hold a kick-off dance in conjunction with Celebrate Heppner on July 30, 2004, in the city park.

            Motion by Tim Van Cleave to approve this request.  Seconded by Mrs. Doherty.  Motion Carried.

            4)  Letter from Johanne Wood concerning the hollyhocks growing along the driveway adjacent to Mrs. Wood’s and the Gonty’s property.  She is asking that the hollyhocks be removed.  Mr. Wolff stated that he spoke with Mr. Gonty and suggested spraying the whole island with Roundup to kill all the vegetation and Mr. Gonty agreed to this proposal.

            5)  Correspondence from Eastern Oregon Rural Alliance requesting information on the amount of available cash in each community in order to determine if there are resources available to look at new ways to manage these funds.  Mr. Breazeale stated that the City invests their money locally.  The consensus of the group was to submit the report since it is public knowledge.

2.  COMMUNICATIONS FROM THE PUBLIC.

      A)  Oral communications from the public not on the agenda.

            1)  Mrs. Burleson announced that representatives from the Hager Park Neighborhood Committee are attending the meeting concerning the BMX park.  The park is a mess and cannot be used by community youth in its present condition.  Although the City workers cleaned up the park last week, it is still an eyesore.  The Snoopy house needs to be dismantled and removed, along with the large portable restroom.  John Bowles had been working on plans to revamp the BMX park so that it could be better used by community youth.  Mrs. Burleson stated that the consensus of the committee was that if nothing is going to be done with the BMX track, it should be leveled and planted with grass.  Mr. Connor stated that he is not against the youth using the park, but that it needs to be supervised, fenced, and regulated.  He stated that the bike traffic on the road causes a hazard for drivers. 

            Mr. George stated that the dust is a major problem for residents in the area.  Mr. Healy stated that the park is a real eyesore and needs to be taken care of or leveled and grass planted.  He objects to the portable restroom being located across the street from the residential area.  He feels the City should maintain the property.

            Mrs. Burleson stated that the sprinklers for the watering system stick up causing a danger for the children and she feels there will eventually be an accident.  She stated that Mr. Bowles has a plan outlined and felt that he could get volunteers to assist.  The committee has developed a three-phase plan.  Phase One would be leveling the property; Phase Two would be landscaping and installing irrigation; Phase Three would be permanent restrooms. 

            Mrs. Ewing stated that Mr. Bowles has a plan and would like to work with people to make the track usable.  Neighbors are willing to assist the City with patrolling the property through the Neighborhood Watch Program. 

            Mrs. Burleson stated that in order for the plan to work, they need the backing of the City Council.  Mr. Van Cleave would like the committee to get their plans together and present them to the City Council.  Mr. Jepsen stated that a plan needs to be drafted and presented to the Council for their recommendation.  Mr. Wolff stated that when the BMX track was originally put together, the sponsors had guaranteed that it would not become a problem.  He was concerned about what could be done in the next week to take care of the problem.  Members present agreed that the Snoopy house needs to be dismantled and removed and the portable restroom taken away.  Mr. Jepsen stated that he would like to give people a chance to use the park and doesn’t want to see it leveled.  Mr. Breazeale stated that the City crew has a lot of work to do at this time of year and not enough staff to do the maintenance at the park at this time.  He stated that when Heritage Plaza is finished, there may be more resources to work on Hager Park.  Mrs. Ewing asked whether once the property is leveled, what needs to be done and Mr. Breazeale stated that they could possibly apply for grants. 

            According to Mr. Jepsen, there is a temporary water system at the park right now.  Mr. Wolff asked if a cover crop should be planted once the property is leveled.  Mr. Cowett asked how the property would be maintained once it is leveled.  Mr. Nelson stated that he does not have the staff to work on the park on a regular basis.  Committee members agreed that they would like the park leveled and grass planted until a proper BMX track can be developed.  Mrs. Buschke feels the park should be leveled and grass planted, and asked how long it would take for the City to level the park and Mr. Nelson stated that it would probably take two days.  The committee members agreed that the park should be leveled and grass planted. 

            Motion by Mr. Wolff that the City authorize the neighborhood enhancement committee from Hager Street to proceed with dismantling and removing the Snoopy house and making plans and facilitating the leveling of the current BMX track as they so desire, and if they cannot arrange to obtain the equipment to do this, the City will come through at the City’s convenience and proceed according to their specifications.  Seconded by Mrs. Robinson. 

            Discussion:  Mrs. Doherty feels that the City needs to take care of this.  Mr. Nelson stated that he probably won’t be able to get this done for two weeks.

            Question called for by Mayor Jepsen:  Motion carried.

            Mrs. Burleson volunteered to contact Mr. Bowles and relay this information to him so that he can make a decision as to future plans for the BMX track.

8:05 PM, meeting recessed. 

8:15 PM, meeting reconvened.

2.  COMMUNICATIONS FROM THE PUBLIC (continued).

      Items B through J.  Requests for Animal Permit (Renewals). 

      Motion by Mr. Wolff to renew all listed permits subject to neighborhood complaints.  Seconded by Mrs. Buschke.  Motion carried.

3.  PUBLIC HEARINGS

      A)  Ordinance No. ______, An Ordinance Vacating that Portion of Morgan Street Between Riverside Avenue and that Portion of Morgan Street Previously Vacated by City Ordinance 405 all in the City of Heppner, Morrow County, Oregon. 

            Discussion:  The wording in the agenda should be corrected to read  “Ordinance No. ______, An Ordinance Vacating that Portion of Morgan Street Between Riverside Avenue and that Portion of Morgan Street Previously Vacated by City Ordinance 405, Vacating that Portion of Shobe Street East of the Riverside Right of Way, all in the City of Heppner, Morrow County, Oregon.  Mr. Wolff asked that the City maintain an easement and would like the word “underground” struck from the ordinance so that it would include all utilities.

Public Hearing Closed. 

4.  COUNCIL ACTION

      A)  Ordinance No. ______, An Ordinance Vacating that Portion of Morgan Street Between Riverside Avenue and that Portion of Morgan Street Previously Vacated by City Ordinance 405, Vacating that Portion of Shobe Street Eastof the Riverside Right of Way, all in the City of Heppner, Morrow County, Oregon. 

      Motion by Mr. Wolff to approve Ordinance 545-04.  Seconded by Mrs. Doherty.  Motion carried.

5.  COMMUNICATIONS FROM THE COUNTY SHERIFF REPRESENTATIVE

      A)  Activity Report.  Deputy Slinger informed the Council that a report from Deputy Rietmann is not included.  Mr. Healy asked about the solution of the recent dog poisonings and Deputy Slinger stated that due to a shortage of officers, the problem has not been further investigated at this time.  Mr. Wolff asked about the agreement to have three deputies on duty in the City and currently there are only two, and why are three deputies not on duty as agreed.  Mr. Wolff feels that we are paying for three people and we should have them available.  Deputy Slinger will speak with the Sergeant and one Under sheriff and prepare an answer for Mr. Breazeale.  Mr. Wolff stated that the city required a three-year commitment from these officers and they should fulfill their three year tours of duty.  Mr. Breazeale stated that he will review the minutes to determine the decision that was made on this and Mr. Jepsen will also investigate.

            On the ordinances that have been dealt with by the Police Commission, Bill Green’s property has been cleaned up.  There has been some work done on the Breeding property; the wood has been stacked and some of the vehicles have disappeared from the property.  The former Greenup property on Union Street is being cleaned by the lender.  So far, there has been little progress.

      B)  Police Commission.  Minutes of the April 20, 2004 meeting are included in the packet.  Next meeting will be held on May 27.

      C)  Code Enforcement. 

            1)  Reference the Le Doux property, the year for rebuilding on the property expired on March 29.  Deputy Slinger distributed pictures of the current condition of the property.  Deputy Slinger is asking for the Council’s decision on what to do with the property.  He stated that he doesn’t see a quick end to this problem.  Mr. Breazeale stated that he has discussed the issue with Mr. Kuhn whereby they could get a state permit to clean the property and attach a lien on it.  There are a number of liens on the property and a city lien would be subordinate to the other liens.  Mr. Van Cleave stated he has been working with Brent Cook, building inspector, to see if Mr. Le Doux could rebuild on the property and a reply has not been received.  Mr. Van Cleave stated that with the time line, this would negate leaving the wall on the property.  Mr. Breazeale stated that since the one year is up, the wall would need to be removed, according to Mrs. Spicer.  She stated that Mr. Le Doux could apply for a variance through the City Planning Commission to rebuild on a non-conforming lot.  Mr. Wolff asked if Mr. Le Doux was able to obtain a loan through Habitat for Humanity could he still rebuild on the lot, and according to Mrs. Spicer there is more debt on the property that it is worth, and the liens would go against the property until it is sold.  Mrs. Spicer advised letting the property go back for taxes.  Mr. Wolff asked about the time frame for the foreclosure and Mrs. Spicer stated that there is an additional period of time after the four year expiration date.  Deputy Slinger stated that he brought up the property so that it could be cleaned up.  This issue will be brought before the Police Commission at their next meeting. 

      D)  Letter, Oregon Department of Transportation, April 19, 2004, Subject:  Traffic Speeding Concern Gilmore Street.  Regarding this letter, Mr. Wolff stated that he doesn’t agree with the calculations as presented in the letter from ODOT and feels the local Sheriff’s Department figures concerning the amount of traffic and speeds on the street are more correct.  Mr. Cowett stated that the north-bound traffic is slowing down and that the down hill speeds quoted in the ODOT letter are believable.  Mr. Wolff does not think the speeds are believable.  Deputy Slinger asked that people keep an eye out and if they see people speeding to call the Sheriff’s Department. 

      E)  No Additional Discussion.

6.  COMMUNICATIONS FROM THE PUBLIC WORKS DEPARTMENT.

      A)  Activity Report.  Mr. Nelson reported that his crews have been busy the past two weeks doing weed removal at the fairgrounds and the high school.  They have been cleaning catch basins with the help of community service workers.  Additionally there have been some major leaks on Willow Creek which have taken a lot of time.  Last Friday, the Public Works crew worked with the County on rebuilding the bridge on North Main Street.  Community Service workers have been assisting with street cleaning.  Heritage Plaza has been mowed for the first time.  Most of Public Works’ work has been done on the leaks on Willow Creek.  Mr. Breazeale commented that the new bridge will be fully highway rated.  Insurance claims on this are being negotiated.  Mr. Nelson distributed photos of the bridge rebuild and the leaks on Willow Creek.

            Mrs. Spicer brought up the fact that the Heritage Plaza sign is a traffic hazard since it limits visibility for vehicles turning on to the highway.  According to Mr. Breazeale, the sign is in compliance with the clear vision area.  A Stop bar will be installed at the edge of the sidewalk.

7.  COMMUNICATIONS FROM THE FIRE CHIEF  Nothing new to report.  Chief Estes stated that vehicles have been inspected and passed inspection.  Heppner, Lexington, and Ione had the only decontamination trailer that passed within the time from given. 

8.  COMMUNICATIONS FROM THE CITY MANAGER

      A)  Resolution No. _____, A Resolution Approving Accounts Payable for Payment.  Motion by Mr. Wolff to approve resolution 562-04, Approving Accounts Payable for Payment as listed.  Seconded by Mrs. Robinson.  Motion carried.

      B)  Resolution No. _____, A Resolution Authorizing a Short Term Intrafund Loan within the Consolidated Reserve Fund from the Utility Deposit Refund.  Mr. Breazeale explained that this is on the Department Reserve Account that is about to be depleted.  The City would like to do an interim loan from the Utility Deposit Account, which is necessary due to the large amount of work that has been done recently and the Reserve account has a low balance.  This will be a loan to give more spending authority to cover expenses for the critical repairs that have been done in the last few weeks.  This would be a loan through this budget year.  Mr. Wolff asked if we would have to do a budget increase to get the spending authority.  According to Mr. Breazeale we have joint spending authority and this is to ensure that there is adequate cash to pay for the repairs.

            Motion by Mr. Wolff to approve resolution 563-04.  Seconded by Mrs. Doherty.  Motion carried. 

      B1)  North Main Street Bridge Repair.  According to Mr. Breazeale, construction has been authorized in advance of receiving insurance money with the County to complete the work.  The City has authority through the General Reserve Fund.  Mr. Wolff asked if there was any concern about betterment from the insurance company, and Mr. Breazeale stated that he is sure they will try to make that case.

      C)  Land Use Committee – UGB expansion project model plan.  Status report.  Mr. Breazeale is meeting on Friday, May 14, with the Governor’s representative and a representative from DLCD to hear comments on this.

      D)  Riverside Avenue Proposed Improvements.  The City is looking to get Riverside Avenue improved by next year.  He is working with ODOT and Morrow County Public Works to get this done. 

      E)  Flood Study – Status Report.  The study is underway, although there is nothing in writing as far as the procedures being used.

      F)  Sale of City Hall and Purchase of Gazette Times Property.  In response to the original offer submitted by David and April Sykes, the City prepared a Counter-offer to the Sykes proposal.  The Sykes refused this counter-offer and submitted their own Counter-offer to reduce the difference of $5000 requested by the City to $2500.  All other terms would remain the same.  According to Mr. Jepsen, the Parks and Lands Commission recommended that the Council accept the Sykes last counter offer.  Motion by Mr. Van Cleave to accept this proposal.  Seconded by Mrs. Doherty.  In Favor:  Cowett, Buschke, Robinson, Doherty, Jepsen.  Opposed:  Wolff.  Motion carried. 

      G)  Earnest Money Agreement for Purchase of the old Klamath Federal building from the Bank of Eastern Oregon.  This transaction is submitted as a Municipal Lease Purchase Agreement which outlines conditions of the agreement, and is contingent upon receipt of  satisfactory roof and building inspections.  The agreement also lists the property to remain in the building and the property to be removed.  Mr. Wolff requested more information on a Municipal Lease Purchase Agreement.  According to Mr. Breazeale, this type of agreement is an arrangement wherein future City Councils could terminate the purchase if they so desired.  It is essentially a purchase contract, but is technically a lease whereby it is non-binding on future City Councils.  It is a way to obtain the best financing and get the tax benefits for the lenders.  Mr. Wolff asked if the agreement benefits the city and Mrs. Spicer stated that this does benefit the city by driving down the interest rate; additionally, the bank will not be required to pay taxes on the sale.  Mrs. Spicer stated that she will correct the agreement to include the front counter in the list of property remaining in the building.  Mrs. Doherty stated that the Forest Service would like to acquire the window in the door of the old Forest Service office in the upstairs section of the building at some time in the future. 

      H)  Water System Improvements – Status report.  Mr. Breazeale reported that this project is moving forward.  Currently, engineers are locating utility lines and easements.  Roger Ehrmantraut has been assisting with this.

      I)  April Financial Statement.  According to Mr. Breazeale, accounts remain positive with the exception of the sewer and water reserve account.  Generally, the financial condition is satisfactory.  Mr. Wolff questioned the water revenue sheet and noted that approximately $86,500 new dollars have been raised.  He asked if the projected additional revenue for the remainder of the year will be adequate to cover the water system payments.  Mr. Breazeale stated that these figures are close to the projection.  The amount of revenue will depend on water consumption during the warm weather. 

      J)  Approve June 30, 2003 Financial Audit.  Motion by Mr. Wolff to approve the June 30, 3003 financial audit as presented by the City’s audit firm.  Seconded by Mrs. Doherty.  Motion carried. 

9.  COMMUNICATIONS FROM THE CITY ATTORNEY. 

      A)  Mrs. Spicer stated that under the proposed resolution consenting to representation of Kuhn & Spicer for the financing of the City of Heppner’s purchase of the former Klamath First Bank Building from the Bank of Eastern Oregon, they are not representing the Bank of Eastern Oregon in this transaction, only the city.  This resolution acknowledges that since the firm represents the bank on other matters, there could be a conflict of interest under the Oregon Code of Professional Responsibility and that if such a conflict does arise, they will bow out and not represent either party.  This resolution discloses this fact and gives authorization from the City in order to complete this part of the transaction. 

Motion by Mrs. Buschke to approve Resolution 564-04.  Seconded by Mrs. Robinson.  Motion carried.

10.  COMMUNICATIONS FROM THE MAYOR/CITY COUNCILORS

      A)  Beautification Commission.  The next meeting will be held on May 13. 

      B)  Heppner Housing Authority.  The next meeting will be held on June 1.

      C)  Heritage Plaza Dedication.  The grand opening and dedication of Heritage Plaza will be held on May 28, 11:  AM.

      D)  Resignation of Jacqueline M. Allstott from Heppner Budget Committee, appointment of new committee member.  Mr. Jepsen nominated Barbara Hayes as Mrs. Allstott’s replacement.

            Motion by Mr. Van Cleave to accept the appointment of Mrs. Hayes.  Seconded by Mr. Cowett.  Motion carried.

      E)  Mayor/City Councilor comments.

            1)  Mr. Nelson asked about the Council tour of the water and sewer systems by the City Council.  This is scheduled for June 17 at 9:00 AM. 

            2)  Mr. Jepsen stated that the Heppner Housing Authority gave approval to sign a new contract with the elevator maintenance company at approximately 50% of the previous contract.  There is a vacancy on the Housing Authority Board.  The person appointed too fill the vacancy needs to be a resident of the Senior Center.

            3)  Mr. Wolff stated that the residents of North Main Street would like to form a local improvement district to pave the street by the Dubuque’s property on Campbell way.  This will be presented to the Parks and Lands committee at their next meeting.

Meeting adjourned at 9:35 PM.