MINUTES OF THE CITY COUNCIL MEETING

 May 13,  2002

PRESENT: Mayor Bob Jepsen; Council Members Tom Wolff, Kari Keown, Skip Matthews, Kay Robinson, Rita Hedman, Tim Van Cleave; City Manager Jerry Breazeale; Public Works Director Craig Canham; City Attorney Bill Kuhn; Police Chief Merle Cowett, Fire Chief Rusty Estes.

VISITORS:  Monika Hunter, Curtis Christiansen, Bruce Harmon, Mindy Christiansen, Tom Sly, Nan Hall, Jerry Healy, Jerry Gentry, Kevin Chick, Rory Bolter.

1.GENERAL BUSINESS

A) Call to Order.  Mayor Jepsen called the meeting to order at 7:00PM

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

C) Announcements: City Manager Breazeale presented three additional items to be covered under correspondence.

D) Approval of Minutes of  April 8, 2002, Council Meeting. Tom Wolff noted that on page two, line 3, “his” should be corrected to read “her.”  Kay Robinson  noted that on page five, paragraph 2, “did not” should be corrected to read “had not.”  Tom Wolff moved to approve the minutes of the April 8, 2002, City Council Meeting, as corrected, second by Kay Robinson.  MOTION CARRIED.

E)      Report from the Planning Commission: Planning Commission representative Jerry Gentry said he had nothing to report.

F)      Correspondence:  City Manager Breazeale presented the following correspondence:

            Letter from Tamara Mabbott, County Planner, informing the Council that on May 16, at 10:00AM there will be another hearing on the raceway.

            Notice regarding the Willow Creek Road litter pickup scheduled for May 28, 5-6:00 PM.

            Mayor Jepsen presented an e-mail from Major Daniel Brewer, Oregon National Guard, reporting that it is again possible that they will be coming to work on the Heritage Plaza project if they can get additional funding later this summer.

Manager Breazeale  presented the remaining correspondence:

      Letter from Oregon Economic Opportunity Development Department notifying the City that it has been awarded a grant of $17,600 for the Unocal Brownfield Reclamation Project (Heritage Plaza).

       Letter from the Oregon Public Employees Retirement System informing the City of an expected increase of between 3.75% and  4.25% of employee payroll costs.

       Letter from the League of Oregon Cities announcing the hiring of Ken Strobeck as its new Executive Director.

       Letter from the Department of Administrative Services notifying the City of the Annual Population Update placing the population of the City of Heppner of 1,390, a decrease of 5.

       Letter from the League of Oregon Cities regarding “Diminishing Returns,” a booklet they have put out explaining the current funding situations of cities.

       Jerry Healy asked if the PERS increase mentioned is dealing with current requirement or unfunded liabilities.  Manager Breazeale answered that it is because of the past two bad market years and consequent lack of money, so employers are being charged more.  Additionally, he reported that the figures are an estimate.  Tom Wolff noted that the letter states that the actual increase will not take effect until July 1, 2003, and will be addressed in next year’s budget.

        A request has been received from Deana Hendrick to hold a wedding in the City Park on Main Street on June 28 at 6:00 PM.  Tom Wolff moved to approve the request, second Kay Robinson.  MOTION CARRIED.

2. COMMUNICATIONS FROM THE PUBLIC

A)     Oral communications from the public not on the agenda: Monika Hunter reported that the celebration in the park, about which she had previously address the Council, is scheduled to begin at 6:00 PM on Friday, June 21, with a children’s hour, a break for refreshments, then an extended “singspiration” will be held.  Everyone, regardless of religious affiliation, is invited to attend.  This part of the celebration is planned to end about 9:00 or 9:30PM and Ms. Hunter inquired if this met with the Council’s approval, since the participants will be using a sound system.  They also wish to base an all-night prayer vigil in the park and park a flat-bed truck on the grass and she asked if this would be possible.  Public Works Director Canham said the sprinklers can be marked and the Public Works Department will need to meet with the coordinators of the event.  Tom Wolff verified that the all-night prayer vigil would be a quiet event, with no amplified sound.  Ms. Hunter said the celebration will conclude at 7:00 AM Saturday with a potluck breakfast.  Motion to approve this use of the park by Kay Robinson, second by Skip Matthews.  MOTION CARRIED.

Monika Hunter announced that she and husband Craig Stroebel will be moving on July 1 to Joseph to serve at the Methodist Church.

                 Tom Sly (speaking after the animal permit requests were dealt with) asked that the City Council include in its statement of goals for the City a concern about the tax rates in the City and the appearance of the curbs and sidewalks in the City, and enforcing the pertinent ordinances.  He suggested that possible means of lowering the taxes in the City should be studied. 

       B)  Requests for animal permit renewals from Nathan and Kristen Van Cleave, 605 E. Cowins, (2 sheep); Sally Marlatt, 640 N. Elder Street, (15 hens and 2 roosters); Blair Keithley, 475 Linden Way (2 sheep); Emily and Meaghan Unruh, 329 E. Linden Way (6 rabbits, 4 pigs, 1 rooster) and one request for new animal permit from Jerid Wicklund, 380 NW Union Ave (1 goat).  Motion to approve all requests by Kari Keown, second by Kay Robinson.  MOTION CARRIED.

3. PUBLIC HEARINGS  opened:

A)     Public Hearing Regarding Ordinance No. 533-2002, An Ordinance Vacating an Unnamed County Road and That Portion of Baltimore Street Between Elder Street and State Highway 74, All in Day’s Addition to the City of Heppner, Morrow County, Oregon.

          City Manager Breazeale showed the Council the map of the school site wherein lies the “portion of Baltimore Street between Elder Street and State Highway 74,” which is not actually a street, and the “unnamed County Road,” both of which must be vacated to allow the school construction to proceed.  Tom Wolff noted that he did not see a clear pedestrian easement in the ordinance.  He expressed his concern that wording that alludes to “ingress and egress” offers no assurance that pedestrian traffic might not be constrained at some point.  City Attorney Kuhn said that it would be possible to add wording assuring that sidewalks would be open to public access at all times.  Jerry Healy asked how the City could vacate a road described as “an Unnamed County Road.”  Manager Breazeale stated that his understanding is that when the City was incorporated the County never laid claim to that right of way, so it became a City right of way

B)     Public Hearing Regarding Ordinance No. 534-2002 , An Ordinance Amending Title 11 of the City Code, the City Zoning Ordinance Regarding Road and Street Access; Nursing Homes and Adult Foster Homes, Site Plan Requirements and Adding Fencing and Accessory Facilities Regulations.

       City Manager Breazeale explained that the Planning Commission has been working on many changes in the City Zoning Ordinances in response to the Transportation System Plan.  In order to make the plan work, implementing ordinances were developed.  However, those implementing ordinances recommended by the consultants did not match the City Code.  As a result, changes have been made to the City Code to allow the ordinances to fit in.  He noted that the document is incomplete at this point, such as referencing transportation issues that the City will be dealing with in the future.  However, the Planning Commission decided that the City should codify the issues which have already been worked on, some of which will have immediate application, such as the definition of an assisted living facility.  In addition, the current zoning ordinances do not reference fences, particularly height.  The Planning Commission felt it was necessary to make policy controlling the height of new fences.

       Mayor Jepsen noted that these ordinance changes had come from the Planning Commission with a “do pass” recommendation.

Public Hearings Closed.

Council Action

A) City Manager Breazeale read the title of Ordinance No. 533-2002, An Ordinance Vacating an Unnamed County Road and That Portion of Baltimore Street Between Elder Street and State Highway 74, All in Day’s Addition to the City of Heppner, Morrow County, Oregon, with the addition of language guaranteeing pedestrian access.

       Tom Wolff moved adoption of Ordinance No. 533-2002, An Ordinance Vacating an Unnamed County Road and That Portion of Baltimore Street Between Elder Street and State Highway 74, All in Day’s Addition to the City of Heppner, Morrow County, Oregon, with the addition of language guaranteeing pedestrian access, second by Kari Keown.  MOTION CARRIED.

B)  City Manager Breazeale read the title of Ordinance No. 534-2002, An Ordinance Amending Title 11 of the City Code, the City Zoning Ordinance Regarding Road and Street Access; Nursing Homes and Adult Foster Homes, Site Plan Requirements and Adding Fencing and Accessory Facilities Regulations.

       Tom Wolff moved the adoption of Ordinance No. 534-2002, An Ordinance Amending Title 11 of the City Code, the City Zoning Ordinance Regarding Road and Street Access; Nursing Homes and Adult Foster Homes, Site Plan Requirements and Adding Fencing and Accessory Facilities Regulations, second by Kay Robinson.  MOTION CARRIED

4. COMMUNICATIONS FROM THE CHIEF OF POLICE:

A)     Chief Cowett apologized for the lack of an Activity Report for the Council.  He had been called away by a family illness.  He noted that there had been 83 log entries for the month, seven of which had reports filed and forwarded to the District Attorney.  Another seat belt blitz will begin on May 17 and run through the 26^th.  Chief Cowett attended an ODOT meeting in Bend at which he was notified that Heppner had maintained a 97% seat belt usage.  The February blitz had resulted in a 96% rate.  He also checked and was assured that the seat belt grant is transferable to the County.  Chief Cowett reported that he had spoken to the Police Commission about declaring  unused uniforms surplus and donating them to the Amity Department who will have no budget for uniforms this year.

Kari Keown moved that unused uniforms be declared surplus and be donated to Amity, second by Tim Van Cleave.  A visitor inquired if there was other materials in the police department that might be donated.  Chief Cowett said that an inventory is underway and distribution will be determined at a later date.  The question was called and MOTION CARRIED.

Chief Cowett reported that CSEPP is buying new radios for patrol cars which will be changed over to 400 megawatts.  The portables being used now by the City department, which were purchased with Police Department funds,  are not compatible with that prospective change and Chief Cowett asked whether the current radios need to be declared surplus or if they can be transferred to the Public Works Department.

Chief Cowett reported that complaints of speeding on Water Street have increased.  He spot-checked the street and only ticketed one driver for excessive speed.

Chief Cowett reported that the Police Commission will continue to meet after the County takes over police services, and a Sheriff’s Department representative will attend meetings.

City Manager Breazeale reported that Officer Mike Sweek is no longer an employee of the City of Heppner.  As a result, the Sheriff’s Department is providing coverage until the agreement between the City and the Sheriff’s is effective.  Manager Breazeale presented a Memorandum of Understanding to that effect.

Motion by Rita Hedman to approve the Memorandum of Understanding between the City of Heppner and the Morrow County Sheriff’s Department to provide police coverage until the effective date of the contract between the City of Heppner and the Morrow County Sheriff’s Department, second by Tom Wolff.  MOTION CARRIED.

Chief Cowett introduced Rory Bolter, Morrow County Sheriff’s Department.  Deputy Bolter is one of the officers who will be providing coverage through the month of June.

Code Enforcement:  Chief Cowett presented video of the work which has been done to improve the condition of the Bowling Alley property.  Additional video was shown of two other properties adjacent to each other behind the commercial property owned by Dr. Wenberg on Main Street.  Several unlicensed vehicles are visible from Center Street.  On adjacent property owned by Millers, there is a hole just off Center Street which is about 4-6 inches deep and covered with broken boards plus material requiring cleanup. Kari Keown expressed concern about proceeding with enforcement procedures on one of the properties because she knew there had been illness in the family.  Jerry Gentry encouraged the Council to take a hard line approach on the ordinances and set examples whenever possible. Manager Breazeale noted that the Nuisance Abatement process is complaint driven.  Jerry Gentry asked why the process had to be complaint driven when the ordinances are in place. Kay Robinson pointed out that parties have thirty days notice to respond or rectify the problem.

Motion by Kari Keown to proceed with the first step of the enforcement procedure, sending the notification letter, on both properties, second by Rita Hedman. MOTION CARRIED.

       C) The next meeting of the Police Commission will be May 30, 2002.

5.       COMMUNICATIONS FROM THE PUBLIC WORKS DIRECTOR:

         A)  Public Works Director Craig Canham presented his activity report and showed video of Pump #1 and parts removed from the pump.  He discussed the work done on Pumps #1 and #2. He reported that he is establishing a monthly routine of checking out the pumps.   Director Canham noted that his report on the needs of the sewer system strongly recommends an increase in sewer rates, from the current $26.90 to $30.00. He further noted that unanticipated expenditures in this year’s budget had completely cleaned out the sewer fund assets.

            Rita Hedman asked whether the $7000 taken from the Water Fund and the Sewer Fund (each) to purchase property for potential parking for the proposed Library/City Hall had been spent.  Manager Breazeale responded that $5,600 from each had been spent and the Budget Committee will be addressing that issue on May 14. 

        B) The next Utilities Commission meeting will be May 16.

6.   COMMUNICATIONS FROM THE FIRE CHIEF:  Chief Estes reported that he is pursuing grants and is waiting for word on them.  He further reported that the department has been asked to look into the possibility of burning down the old junior high building and gym.  The State Fire Marshall and District Chief will be here May 16 to look at the site.  All toxic materials will be removed by the first week in July.

7.       COMMUNICATIONS FROM THE CITY MANAGER:

A)     Because of presence of interested parties, Manager Breazeale asked that Item J of the      agenda, “Disposition of Property South of Public Works Shop on Gale Street,” be addressed at this point.

Manager Breazeale presented the report requested By the Council on the disposition of the Gale Street property.  Manager Breazeale reminded the Council that if City Hall is remodeled, parking may be required.  He noted that keeping the property at this time is not costing the City and a party interested in leasing it has approached the City.  The potential lease could bring in $2400 per year.  The property should sell for at least $30,000.  If the property goes back on the tax roll, yearly payments to various taxing districts would be:  City of Heppner-$256.84; Oregon Trail Library District-$4.83; Willow Creek Park and Rec. District-$8.09; Morrow County-$78.75; Unified Recreation District-$8.69; Water Control District-$3.23; Morrow County Health District-$11.53; Morrow County School District-$136.40.  The total tax liability per year would be $508.06.  Manager Breazeale recommended that the water and sewer departments be reimbursed for their expense and the property be retained until the final plan is developed for improvements to City Hall.  In the meantime, the property could be leased to a business on a month-to-month basis, with the understanding that that the lessee would be required to install a restroom facility and pay all utilities.  Kari Keown clarified that if the property becomes a rental it goes back on the property tax rolls.  Manager Breazeale agreed and that the lessee would pay the taxes.  Curtis Christiansen, the party interested in leasing the property, said he is seeking a permanent arrangement.  The building is large enough for his growing needs.  Tom Wolff asked if the City has a time frame for a definite decision on a minimum lease period or a way to monitor quality of renovation.  Manager Breazeale responded that permits and codes will control the renovation. City Attorney Kuhn suggested incorporating City preferences in the lease.  Tom Wolff voiced his concern that it might appear that the City is becoming a landlord and taking a tenant from a currently occupied privately owned commercial facility and putting them in a city-owned facility.  Mr. Christiansen, who currently occupies a building owned by the Northwestern Motel, noted that the Motel has sold and he understands there are plans to add rooms in the building he currently occupies.  Jerry Healy asked if the City can dispose of property without a public bid process and if Manager Breazeale had said that the water and sewer funds would be reimbursed and, if so, where does that money come from. Manager Breazeale responded that a sale can take place without bids and that the sewer and water fund reimbursements would come from the General Fund. Mindy Christiansen asked if the purchase asking price was going to be impacted by having improvements done and having a thriving business in place.  Tom Wolff acknowledged that the property market can be effected that way.  City Attorney Kuhn noted that right-of-first-refusal clauses typically included in a lease-option-to-buy agreement cover that situation.  Jerry Gentry said he would personally like to see the City get out of the real estate business.  An immediate sale would take care of all the concerns expressed.  Manager Breazeale suggested that this would be an excellent time to put the property to use by the Christiansens.  Manager Breazeale noted that a draft lease has been prepared. City Attorney Kuhn  noted that Mr. Christiansen wants a firm lease-option-to-buy agreement and Manager Breazeale is recommending keeping the City’s options open on the use of the property and he asked for clearer direction.  Manager Breazeale suggested a one-year lease with option to renew.

Motion to negotiate a lease with the Christiansens for a term of one year and option to renew by Tim Van Cleave, second by Kari Keown.  MOTION CARRIED.

    B)  Motion to approve Resolution No. 490-2002;  A Resolution Approving Accounts Payable for Payment by Kay Robinson, second by Kari Keown.  After a brief discussion for clarification of some of the bills, the question was called. MOTION CARRIED.

C)     Housing rehabilitation project: Manager Breazeale reported that the Morrow County Court voted to apply for the housing rehabilitation grant of $500,000.

D)     Motion to  approve Resolution No. 491-2002, A Resolution Defining Employee Medical, Dental and Vision Benefits.  Manager Breazeale reported that the City’s current policy Plan IV with Blue Cross, Blue Shield is being discontinued.  However, the City has the option of going with Plan V-A, which provides better coverage with a preferred provider plan.  All local providers and all provider specialists currently being used by City employees are covered.  UCR Vision coverage is better under the new plan.  These plans plus dental can be paid for in full at less cost than the current plan.  Manager Breazeale recommends approval of the plan change.

Motion to approve Resolution No. 491-2002, A Resolution Defining Employee Medical, Dental and Vision Benefits by Kari Keown, second by Kay Robinson.  MOTION CARRIED.

E)      Court & May Street Project: Manager Breazeale reported that bids on the project were opened on April 24^th.  Low bidder was Dice Construction at $85,653.25.

Motion to award the bid for the Court and May Street Project to Dice Construction in the amount of $85,653.25 by Kay Robinson, second by Kari Keown.  MOTION CARRIED.

F)      Planning Grant through the Quick Response Program of D.L.C.D. progress report: Manager Breazeale presented a letter explaining the outcome of the study on hotel-siting in the community.

G)     Free Water/Sewer and policy clarification:  Manager Breazeale presented a list of those receiving free water and sewer.  He said there is nothing in the record to indicate why the churches in town are getting free water up to the minimum usage.  Parsonages are billed. Tom Wolff asked why the Catholic Church pays, as does Lynda Crane’s Church.   These discrepancies will be checked out.  In addition, water and other services have traditionally been given to the library, museum, Little League and the Willow Creek Water Park. Manager Breazeale asked if the Council  wish to continue allowing 13,000 gallons free for all churches as recognized by the County Assessor, bill parsonages for use and to provide free water to the Willow Creek Water Park, the Little League, Library and Museum. There was a consensus that the practice should be continued.

Manager Breazeale said he would prepare a resolution to that effect and  present it at the next Council meeting.

H)     Baker/Morrow Partnership report and small cities funding:  Manager Breazeale  reported that there are $10,000 grants available to small cities, the recipients of which are decided upon by the Board of the Baker/Morrow Partnership.  The Willow Creek Valley Assisted Living Facility requested a grant of $40,000 from the partnership.  The partnership has not received all of the grant moneys to disburse.  They have suggested that the Cities of Heppner, Lexington and Ione might agree to donate their $10,000 to the Assisted Living Facility to help them meet expenses. 

Kari Keown moved that the City contribute the anticipated $10,000 grant money to the Assisted Living Facility, second by Rita Hedman.  MOTION CARRIED (Tom Wolff opposed, Bob Jepsen abstained).

I)       Memorandum of Understanding with PARC for USDA-RUS grant/Loan application.  Manager Breazeale presented a request to have Public Affairs Research Consultants apply for the City’s water system grant/loan through USDA/Rural Utilities Services.  Due to time constraints, Manager Breazeale suggested hiring PARC to do the grant application. Concern was expressed about the cost and whether someone local could do the grant writing.  While there are local people who are going to be training as grant writers, it was felt that the magnitude of this grant ($5,000,000) requires an experienced professional.

Motion to hire PARC to prepare the USDA-RUS grant/loan application for the water system by Kari Keown, second by Bob Jepsen.  MOTION CARRIED.

J)      Volunteer Resolution for Policy Year 2002-2003:  Manager Breazeale presented the resolution which provides volunteers with Workers’ Compensation Insurance.  Tom Wolff asked several questions about the information on tax liability for volunteers, such as Budget Committee, St. Patrick’s Celebration chairs, etc., which had been prepared by the City’s carrier.  It was determined that additional information was required before adoption of the resolution, and action was deferred until the June City Council meeting.

K)     City Manager Breazeale presented the Financial Report for April  2002, noting that the only cause for alarm is the status of the sewer department.

L)           Manager Breazeale reported that it is now time for review of the franchise fee agreement with Columbia Basin and  the Utilities Commission has recommended that the City change the Columbia Basin franchise fee from 2% to 5% to bring the City of Heppner into line with the other cities who have franchise fee agreements with Columbia Basin.  Jerry Healy presented a historical perspective on the franchise agreements into which Columbia Basin has entered (which range from 2% to 5%) and noted that the raise would put Columbia Basin at a disadvantage competitively with other local utilities. No action was required at this time.

8.       COMMUNICATIONS FROM THE CITY ATTORNEY:

             City Attorney Kuhn reported that a draft of the agreement with the Morrow County Sheriff’s Department for police services has been prepared and has been reviewed by Sheriff Denton and forwarded to Morrow County Counsel.

9. COMMUNICATIONS FROM THE MAYOR/CITY COUNCILORS

                   A) The Beautification Commission meeting will be May 9.

             B)  Mayor Jepsen reported that the Heppner Housing Authority meeting was not held due to lack of quorum and that the Heppner Housing Authority will next meet May 28.

C)     Tom Wolff reported that the Willow Creek Valley Economic Development Group will be meeting May 15.

D) Rita Hedman has submitted her resignation from the Heppner City Council.  The June meeting will be her last.

E)      Additional Discussion: Mayor Jepsen reminded Council Members that the Budget Committee will be meeting May 14. 

Mayor Jepsen reminded members that 2003 will be the centennial of the Heppner Flood and will fall within the 2002-2003 budget year.  He is still hoping to find interested parties to plan a commemoration.

Meeting adjourned into executive session at 10:20 Meeting returned from executive session at 10:39 with no action taken.

Meeting adjourned  10:40