MINUTES OF THE CITY OF HEPPNER CITY COUNCIL MEETING

MINUTES OF THE CITY OF HEPPNER CITY COUNCIL MEETING

SEPTEMBER 13, 2004

ATTENDEES:

Mayor Bob Jepsen

City Manager, Jerry Breazeale

Council Members:

Merle Cowett

Judy Buschke

Kay Robinson

Cindy Doherty

Tom Wolff

Tim Van Cleave

City Attorney, Ann Spicer

Public Works Director, Bruce Nelson

Morrow County Sheriff’s Department, Deputy Adam Bredfield

Morrow County Sheriff’s Department, Deputy Randy Rayburn

Morrow County Sheriff’s Department, Sergeant Phil Morris

Heppner Fire Chief, Rusty Estes

Heppner Gazette Times, David Sykes

Members of the Public:

Lavern Riplinger

Roy Clark

Johann Wood

Randall Peterson

Jerry Healy

Nancy Gochnauer

Keith Lewis

Betty Wilhelm

1. GENERAL BUSINESS

A) Call to Order: The September 13 2004 meeting of the Heppner City Council was called to order at 7:02 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 and welcomed Deputy Randy Rayburn back to the Sheriff’s Department.

2) Mayor Jepsen read a letter from Jan Paustian thanking the City (Roger Ehrmantraut) for repairing the cover over their water meter. She also thanked the City for selecting their property as Yard of the Month for September 2004.

D) Approval of the Minutes for the August 9, 2004 Council Meeting. The August 9 minutes were reviewed. Mr. Wolff requested one correction on Page 5, item C. The last paragraph “Discussion: Mr. Wolff questioned. . . . . “ should be moved to follow Paragraph C.

Motion by Mr. Wolff to approve the August 9, 2004 minutes as corrected. Seconded by Mrs. Robinson. Motion Carried.

E) Correspondence:

1) E-Mail from the City of Pendleton on behalf of the League of Oregon Cities, inviting City Council members, the Mayor, and the City Manager to a “City Hall” day in Pendleton to be held at 9:00 AM on Thursday, October 13. Senator Nelson, Rep. Smith, and Rep. Jenson will be in attendance.

2) Mr. Wolff announced that he has some correspondence, but will retain it until later in the meeting.

2. COMMUNICATIONS FROM THE PUBLIC.

A) Oral communications not on the agenda.

1) Randall Peterson, Peterson’s Jewelers, is attending the meeting to show the plaque that Mrs. Alderman has donated to be mounted in the Veterans Mini-Park. She also has a mounting of an “eagle” to be mounted along with the plaque. This is scheduled to be mounted by volunteers before Veterans’ Day. Mr. Wolff stated that they will work with Mr. Breazeale and Mr. Nelson to ensure that this is mounted properly.

B) Request to use the City parking lot on Main Street south of the Post Office for Octoberfest including beer garden. Nancy Gochnauer

Mrs. Gochnauer is in attendance to request City Council approval to allow use of the parking lot. They have a lot of participation lined up, including the day care center that is planning to hold a mini-carnival for children. They have several activities planned. Murrays are planning a wine tasting and a beer garden is also planned. These will be in accordance with the OLCC rulings. Food will also be served. They are asking for street vendors and other activities are planned. She has obtained permission to close off the street between Willow and May Streets between 6:00 and 10:00 PM for a street dance with live music. All appropriate laws will be covered regarding alcohol consumption. The Sheriff’s Department will monitor traffic control. This will be held on Saturday, October 9, 2004. Mrs. Gochnauer also has event insurance which states that the City is initially insured along with ODOT.

Motion by Mrs. Buschke to grant the request to Mrs. Gochnauer for Octoberfest on October 9, 2004. Seconded by Mrs. Doherty. Motion Carried.

3. PUBLIC HEARINGS

A) Ordinance No. _____, An Ordinance Amending Chapter 13 of the Heppner Code, Which Addresses Flood Damage Protection and Declaring an Emergency.

Discussion: Mr. Breazeale explained that Chapter 13 is our flood ordinance that deals with regulating the type of activities that are allowed within the flood zone and the flood way. The City is requesting through DLCD to obtain a reduction in our flood insurance by participating in the Community Rating System. This is through the insurance services office and if communities that participate can fulfill the criteria, an automatic reduction of 10% of the premium rate for properties in the flood zone is available. Our insurance carrier has stated that it is not 10% of the current premium, due to the government putting a stiff base fee on the premium. The portion is actuarially figured on the flood rate that would be adjusted. It is still a fairly substantial amount.

According to Mr. Breazeale, we have completed most of the items that the state has asked us to do to qualify for the community rating system. The State Floodplain Coordinator has visited the community, inspected the flood ordinance, reviewed our record-keeping system for applications for development in the floodplain, and they stated that everything is ready with the exception of a few adjustments in our flood ordinance. These are minor changes: 1) Statement by a registered engineer that a building will not cause the base flood to rise if it is put in the floodway; this is required before a permit to build in the floodway can be issued; 2) The other requirement is regulating RV’s that are parked in the floodway which is considered a high hazard area where water moves through at high velocity. It requires that they be self-contained and movable, that they not be permanently affixed to the site, unless they meet the same criteria that a manufactured home is required to meet. They may not be kept on site for more than 180 days and be licensed for highway use so that they can be moved readily if a flood occurred. The idea is that you don’t want to have a lot of things n the floodway that will restrict the flood waters. We are looking at a reduction in our floodplain area and our floodway, but this is talking about the flood insurance portion of that.

Mr. Jepsen explained that this portion of the meeting is for public hearings and is open for comments. No Council action is taken until the hearing is closed.

B) Resolution No. ______ A Resolution Declaring Certain Property a Nuisance and Ordering Cleanup of Property. 560 NW Gale Street, Map No. 2S 26 s6CC, Tax Lot 8100. Mr. Breazeale reported that this property has been cleaned up.

C) Resolution No. ______ A Resolution Declaring Certain Property a Nuisance and Ordering Cleanup of Property. Kirk and August Street, Map No. 2S 26 35BC, Tax Lot 5500. Mr. Breazeale reported that this property was cleaned up by the youth workers. Mr. Jepsen and Mr. Wolff have inspected the property.

D) Resolution No. _____ A Resolution Declaring Certain Property a Nuisance and Ordering Cleanup of Property. 225 South Court Street, Map No. 2S 26 35BC, Tax Lot 5500. This property is owned by Mr. Roy Clark. Mr. Clark thanked the Council for notifying him and stated that he had been working on the inside of his house and had not taken the time to clean up the weeds. He has had the vehicles removed. Subject property is a separate lot from the house. Council members agreed that the property is looking much better.

E) Resolution No. ______ A Resolution Declaring Certain Property a Nuisance and Ordering Cleanup of Property. 280 East Hill Street, Map 2S 26 35CB, Tax Lot 900. According to Mr. Wolff this is former City/County property and is now owned by Mr. Riplinger. Mr. Riplinger stated that he has been working on the property and plans to rebuild the retaining wall. Mr. Jepsen stated that the property looks good. The City authorized a sewer line on the edge of the property and Mr. Jepsen cautioned Mr. Riplinger to be aware of this. He stated that he is.

F) Resolution No. ______ A Resolution Declaring Certain Property a Nuisance and Ordering Cleanup of Property. 535 Matlock Street, Map 2S 26 35BC. Mr. Breazeale reported that this is the property owned by John Le Doux which has been under discussion for quite some time. Mr. Wolff reported that he had checked the property today and it appears that Mr. Le Doux hasn’t done any more work. Mr. Jepsen stated that the property is in the same condition as it was 30 days ago. Council members felt that Mr. Le Doux should be given another 30 days. Deputy Rayburn stated that he had previously worked with Mr. Le Doux and it is his feeling that this action will go on forever. He feels we need to stop giving extensions. In answer to Council’s questions as to what the options are, Mrs. Spicer stated that the choices have not changed; we can clean up the property and place a lien on it. However, it is unlikely that the City will ever recover their money. We can foreclose on the property with a lien against it, and the County will take it over. Mr. Le Doux has paid enough back taxes to avoid foreclosure at this time. It may be time to force the issue and clean the property. Deputy Rayburn stated that he feels we should get another work crew in to clean it. Mr. Cowett stated that this has been an ongoing problem for several years. If we do go in and clean it up, what will stop Mr. Le Doux from continuing this pattern. Mr. Van Cleave stated that he doesn’t think Mr. Le Doux will haul any more items to the property. He stated that one of the reasons Mr. Le Doux is keeping the property is so that he can use it for storage. According to Mrs. Spicer, we can only clean up the items specifically identified in the letter.

PUBLIC HEARINGS CLOSED.

4. COUNCIL ACTION (Note the numbers in the Council Action section have been changed to correspond with the actions listed in the Public Hearings).

A) Ordinance No. 547-04 An Ordinance Amending Chapter 13 of the Heppner Code, Which Addresses Flood Damage Protection and Declaring an Emergency. Motion by Mrs. Robinson to pass Ordinance No. 547-04. Seconded by Mrs. Doherty. Motion Carried.

Items B-E) Motion by Mr. Wolff to pass on the Proposed Resolutions Items B, C, D, and E. Seconded by Mr. Cowett. Motion Carried.

F) Resolution No. _____ A Resolution Declaring Certain Property a Nuisance and Ordering Cleanup of Property. 535 Matlock Street, Map 2S 26 35BC.

Discussion: Mr. Jepsen stated that as Mayor, he feels this property is kind of a “Catch 22” and he doesn’t see any alternatives to jump in and clean it up and put out a lot of money by the City. He is in favor of letting this go a little longer. It has gone on for several years. His feeling is probably to do nothing and let it wait for a while. Mr. Nelson stated that he has some dirt from a project on Riverside that he can dump on the property to fill up the hole a little better. This is the first load he has had since the last Council Meeting. Mayor Jepsen stated that Mr. Nelson could go ahead with this. Council is in agreement with this. Mrs. Buschke stated that she is not in favor of letting the property go any longer, but doesn’t know what needs to be done. Mr. Van Cleave stated that he is not sure either. Mr. Cowett stated that he has dealt with this property when he was with the City Police Department and all he heard was problems after problems and nothing was ever done unless he actually went there in person and “pushed” Mr. Le Doux to do something. Mrs. Doherty thinks that we need to send him a letter identifying everything by inventory that needs to be done. She feels if we go this way, we should give Mr. Le Doux another thirty day extension. Mr. Wolff feels that we should not spend city money to clean up the mess. Neighboring property owners could not sell their property next to Mr. Le Doux and finally let it go back and left town.

Mr. Healy asked how Code Enforcement worked since there are lots of properties around town with “junky old storage sheds” on them and what is the difference between those and Mr. Le Doux’ property. However, there are safety issues with Mr. Le Doux property. Mrs. Robinson brought up another property that in the past had to be cleaned continuously. Mrs. Doherty stated that we have spent too much time on Mr. Le Doux’ property and she feels we should quit. Mr. Van Cleave stated that one of Mr. Le Doux’ problems is that he doesn’t have a driver’s license or a rig. Mr. Van Cleave has been involved in helping Mr. Le Doux in the past and he will try to at least get the appliances off the property and somehow make it less of an eyesore.

Mrs. Gochnauer stated that she feels that this sends a message to the rest of the citizens and wondered if it would be possible to levy a fine for every day, month, etc., against the property if he does not clean it up and if it gets to a certain point that the City could foreclose if he does not pay the fine. Mr. Wolff replied that the property already has liens on it which far exceed the value. For Mr. Le Doux to try and rebuild any structure is futile because he will never have title to the property. Mr. Van Cleave stated that he has been trying to get Mr. Le Doux to release the property, but so far has not been able to. Mr. Jepsen stated that he feels he and Mr. Van Cleave should talk to Mr. Le Doux and if progress is made, Council should relook the situation in thirty days. Mr. Riplinger asked what kind of fill we need for the hole and Mr. Breazeale explained that Mr. Le Doux would have to give his permission to Mr. Riplinger to do this. His phone number is 509-582-7056. This issue will be re-visited next month.

5. COMMUNICATIONS FROM THE COUNTY SHERIFF REPRESENTATION.

A) Activity Report. Deputy Rayburn reported that he has just come back on duty did not see anything that needed to be discussed. Deputy Slinger is on vacation.

B) Police Commission. No discussion.

C) May and Gale Street Intersection. (This item was discussed following the Code Enforcements). According to Mr. Jepsen, this has been discussed in several Commission meetings, Beautification and Utilities. Mr. Breazeale stated that the property discussed is the island between the City right of way. In the past, the island has been maintained by the neighboring property owners, but due to disagreements among the owners, the commissions decided that the property should be cleared and weeded and some type of low maintenance vegetation planted. City Council approval is needed before the work begins. Mrs. Wood, one of the property owners adjoining the right-of-way, had several questions about what was going to be planted was told that this will be a Public Works decision.

Motion by Mr. Wolff that the City take control of the island in their right-of-way and do whatever is necessary to minimize future City labor required to maintain the island area. Seconded by Judy Buschke.

Mr. Wolff stated that he would like to further add that he finds the corner attractive when it is maintained, he likes the trees, the junipers, and the rock work. He doesn’t like the concept of the City spending 300 hours per year maintaining it. He thinks if it is retrofitted so that the City spends four to five hours a year maintaining it, that has to be adequate. Initially, more time will be required to clear the property.

Question: Motion Carried.

D) Code Enforcement. Mr. Wolff stated that there are a couple of properties that need investigated: 555 Jones Street and the Mark White property on Water Street. On the White property there are a couple of old couches and air conditioners outside the home. Mrs. Wood asked what the code was on couches on front porches and Mr. Wolff replied that the ordinance says that there can’t be any derelict furniture or appliances that would harbor rodents, fire hazards, etc. This would apply to derelict furniture and whether it is going to be used or not. Mr. Jepsen stated that there is also derelict property in some sheds behind Mr. Clark’s property. Mrs. Wood also stated that there is a property behind the old TV shop that is unsightly.

Mr. Healy asked if the code enforcements are complaint-driven or code enforcement office reported and was told that they are both. If a citizen sees something that needs attention, he could contact the Sheriff’s Department.

E) Additional Discussion. None.

6. COMMUNICATIONS FROM THE PUBLIC WORKS DEPARTMENT

A) Activity Report. Mr. Nelson reported the following:

1) They have isolated the meters at Wilkinsons; separated the cattle troughs from the houses and installed separate meters.

2) The telemetry system has been moved to the new Public Works building.

3) The water leak near Wilkinsons has been repaired.

4) The 4x4’s and plywood are up at Hager Park in preparation for installing a sprinkler system. CBEC has installed the power.

5) Mr. Holt’s property on Water Street has been taken care of.

6) Mrs. Wood voiced her concerns about the water from the sprinklers in Heritage Plaza running in the road and Mr. Nelson stated that the sprinklers are being adjusted.

B) Utilities Commission. Nothing to report.

C) Parks and Lands Commission. Nothing to report.

D) Water System Status Report. Nothing to report. The drawings for the water project are being finalized in preparation for going out for bid in October. Reports are that bids on other projects in the state are coming in higher than in previous years.

E) Water for Little League Field. Mr. Breazeale reported that the water usage for the Little League field has gone over their limit for another month. They found out that that meter also feeds the trees that go along the right-of-way for the old railroad bed that were planted on the Grain Growers property. The City has been unable to determine how much water was actually used by the Little League, but it doesn’t seem like it is very much because the field is very dry. Mr. Breazeale has talked to the Grain Growers and they are willing to have a separate meter installed, and would pay for the hookup for the meter but not for the water. Mr. Breazeale stated that this should help everyone so that the Little League knows when they are using water and when they have leaks and the Grain Growers will know if they have leaks and when they are using too much water. The trees use quite a bit of water when they are growing. A drip system is installed, but the trees use a lot of water. Mr. Wolff stated that he felt that the Grain Growers should not pay for the water for the trees and that the City should pick up the tab since the trees enhance the City. However, the water use needs to be monitored.

Motion by Mr. Wolff that the City pick up the current bill for the Little League water meter, no matter where the water went. Seconded by Mrs. Doherty.

Discussion: Mr. Jepsen asked if the Grain Growers would pay for the pipe and the meter for their property and was told that they would.

Question: Motion Carried.

F) Additional Discussion: None.

7. COMMUNICATIONS FROM THE FIRE CHIEF

ISO Rating Report. Chief Estes reported that the ISO investigators were here for two days and the rating for the City was changed one full number, resulting in a Class 5. The items marked down were reserve trucks and reserve ladders and reserve hose. What this means is that there will be a reduction in fire insurance rates. The city water received 38% out of 40% rating, and dispatch also got high marks. The insurance company is looking into the meaning of the 5 rating and this means that insurance rates for commercial accounts in Heppner should drop. Mayor Jepsen commented that this was very good. Mr. Estes stated that they will ask for another inspection in approximately two years. He also stated that inspectors were very thorough.

Mrs. Wood asked if the fireman knew where the hydrants are and Mr. Estes assured her that they are aware of all the hydrants and locations in Heppner.

8. COMMUNICATIONS FROM THE CITY MANAGER

A) Purchase of Klamath 1^st building from Bank of Eastern Oregon. Mr. Breazeale announced that the City closed escrow on the purchase of the Klamath 1^st building on Thursday, September 9. The City now owns the property and the Gazette Times now owns the present City Hall. The City also owns the Gazette Times building. The new City Hall will be cleaned and the next Council meeting will be held in the new building. The major move is planned for September 23 and on September 24, business will be conducted in the new building. There should be no interruptions in business. There is a night drop for people to drop off their bills after hours. Crews are working on getting the bathrooms ADA compliant before we move in. Mayor Jepsen stated that he doesn’t want the present Council table moved to the new building.

B) Flood Study – Status Report. Mr. Breazeale stated that the City still has not received the signed Mapping Activity Statement from FEMA. FEMA’s contact person has been involved in working on the hurricane in Florida. Contractors are doing work in advance of this and are in the area doing a GPS survey and doing aerial flights so they can determine where they are at. The end date when a map will be furnished is targeted for December 2006.

C) Land Use Committee – UGB expansion project model plan - Intergovernmental agreement. Mr. Breazeale and Carla McClane, Morrow County Planning Department, met with the respective property owners on September 8. Mr. Breazeale produced the map that was used and illustrated the area that was proposed for expansion of the UGB. Most of the property is between the existing golf course and the Kinzua industrial site. There is also land across the road. Two property owners in that area asked to be removed from the UGB expansion. There terrain is such that they would not benefit from the UGB expansion. Taking them out would not have much affect.

The question was asked whether the City could pass a resolution stating that the City wouldn’t annex any of the UGB property without the property owners’ consent, or if they needed to hook to water or sewer. Mr. Breazeale checked with the City Attorney and he said it wouldn’t be appropriate to limit the Council’s authority to take an action. However, practically speaking, it is very difficult to annex property if the property owner doesn’t want to be annexed. This is usually done by a petition from the property owner and involves a lengthy process. It would also involve a petition which would have to be approved by the neighboring property owners. This would require over 50% of the owners in favor. Mr. Breazeale explained that if a sewer line was installed to pick up the Kinzua property that could serve those properties if they had a failing septic tank and if they were within 300 feet of the pipeline, DEQ would require them to connect to the public sewer. This would occur whether or not they were annexed. If the properties weren’t in the UGB, sewer could not legally be provided to them by state law, and they couldn’t do anything with their property since because DEQ would not let them put in a new septic system. By being in the UGB, they could connect to the sewer. There is no requirement to do this if the septic system is working properly, but it does remove a lot of the restrictions that would be on the property with Exclusive Farm Use (EFU) which most of the area is zoned now. This means a 160 acre parcel would be required to build a dwelling. If one of the existing dwellings was destroyed, it would be considered a non-conforming use and if the owners did not rebuild within a year, they would have to apply through the variance process to erect another building on the property. This would add another layer of difficulty in the EFU zone, whereas if the property is in the UGB and zoned appropriately, there would be no problem for potential subdivision. People have requested either industrial or commercial zoning in a number of cases and we do know that some of that property is already in industrial use.

The next step to go forward would be to go through the process of making application to amend the UGB. A joint project between the county and the City of Heppner has been discussed. Morrow County has proposed hiring Martin Davis to do the required staff reports and the total project cost to do this would be $1500 plus $200 in expenses, ½ paid by the City and ½ by the County, which equates to $850 for each entity. Considerable staff time is involved and neither the County nor the City have the resources to do this. We do not have the actual agreement, but an intergovernmental agreement has been proposed where the county would hire Mr. Davis to do the work and would bill the City for the project and the City would write the County a check.

Mr. Jepsen asked if Mr. Breazeale needed further direction from the City Council before proceeding and he stated that he would like authorization to enter into an intergovernmental agreement to work with Morrow County and pay the $850. This does not mean that the UGB will be expanded. This would not happen until the City acts on it and declares it so, and also requires the County’s approval.

Mrs. Buschke asked if the property owners that attended the meeting were opposed to the UGB being extended, or were they just concerned about being annexed into the City. According to Mr. Breazeale, the main concern was annexation. Mr. Wolff stated that he had some correspondence from one property owner (Mrs. Patton) concerning the meeting. In this letter, the opinion was expressed that this process be discontinued until the property owners had a chance to research the issue further. Mr. Jepsen asked Mr. Breazeale what his feeling was from the meeting and Mr. Breazeale stated that when he left the meeting he felt that the property owners wanted assurance that they would not be annexed into the city, and that they wanted assurance from the City Attorney that the property would not be annexed. Mrs. Buschke stated that the people who contacted her felt that the process was moving too fast. Mr. Wolff feels that the whole process should be dropped completely. Mr. Breazeale stated that there are still people who want to be included in the UGB and that the state-funded study showed that there was a need for the UGB expansion. He also stated that he understands the feelings of those people who are concerned about UGB expansion. The Morrow County Planning Department has stated that they are behind this expansion. The County Court believes that we need to act on this now since there is interest from the state. Much of the property currently in the UGB is not acceptable because of location and the owner does not want to develop it. Mr. Breazeale stated that this is a project funded by the state and we either need to move forward or drop it. Mr. Wolff stated that has also talked to Pam Schmidt and she feels it might be a good idea to be in the UGB. Mayor Jepsen asked if the Patton property could be left out and Mr. Breazeale stated that this would not make sense due to the location. Mr. Cowett asked about the properties across the highway and Mr. Breazeale stated that some of those owners had not responded or shown interest. Mrs. Buschke stated that she feels Mrs. Patton is asking for more time and Mr. Breazeale stated that he feels those that are opposed won’t change their minds. According to Mr. Breazeale the County is ready to move forward, but he could wait until the next meeting to sign the Intergovernmental Agreement. Mrs. Doherty asked Mr. Breazeale if he felt there was enough interest in moving forward. Mrs. Buschke asked if there was enough time to wait and Mr. Breazeale stated that we could. Mrs. Buschke felt we should notify the people that they have until the next Council meeting for a decision and if they need questions answered, it is up to them to come forward.

Mayor Jepsen asked Mr. Wolff if he still feels this should be dropped and Mr. Wolff replied that he would like to talk to the people again and explain their options. Ms. Doherty’s feeling is that the owners are mainly concerned that they would be annexed into the City. Mr. Wolff asked what the down side is for not moving ahead with the Intergovernmental Agreement and Mr. Breazeale stated that the City would lose $850.00 and a lot of time that has been expended on this project. Council members agreed that we wait an additional 30 days. Mr. Breazeale stated that this could be done. Mr. Wolff stated that he would like more time to talk to the property owners and suggested authorizing City Management to go ahead and have the Intergovernmental Agreement drafted and present it to the Council at their next meeting. Mr. Healy asked if the citizens in the city would pay for having City water and sewer extended if annexation occurred. Mr. Breazeale stated that the only way the citizens of the City would pay for this was if the Council decided it was in the city’s best interest to do that.

The tax repayment for properties converted from EFU deferral was discussed in length and Mr. Wolff felt that this should be left to Greg Sweek, County Assessor, to define.

Council consensus was to wait an additional 30 days and authorized City Management to go ahead and have the Intergovernmental Agreement drafted and present it to the Council at their next meeting.

D) Resolution No. ______, A Resolution Approving Accounts Payable for Payment.

Motion by Mrs. Robinson to approve Resolution 580-04, a Resolution Approving Accounts Payable for Payment. Seconded by Mrs. Doherty.

Discussion: Mr. Wolff questioned the bill to Galls Incorporated for $971.99. Mr. Breazeale explained that this for a light bar for the Police car. He also questioned the bill from Grizzle & Hunter Plastic LLC, $1327.07, which Mr. Breazeale explained was for sprinklers for the golf course. The bill from Reese Concrete Products for $250.00 was for catch basins for the Holt property.

Question: Motion Carried.

F) August Financial Statement: According to Mr. Breazeale, the City is still in good financial condition.

G) Franchise Agreement for WindWave Communications.

1) Mr. Breazeale reported that the WindWave has approached the City to obtain a franchise agreement. They have provided the City Attorney with a draft agreement and they are willing to pay their 5% of revenue to the City for their internet service. This is a very aggressive young company and plans to construct a building here in town, install more fiber optics, and provide wireless internet service. They are starting to take subscriptions on the wireless service. Mr. Breazeale does not have the agreement as of this date. Mr. Breazeale informed them that he would ask City Council to grant permission for them to use the right-of-way while the franchise agreement is completed. They have also checked with Public Works and locating facilities, but they have some substantial work that needs to be done in the City right-of-way in the next month. The agreement will not be available until October. Some time ago when they moved the fiber from the school to the Court House they asked about the franchise agreement and the City agreed to waive it until a future date. This is important since they are in competition with CenturyTel who does pay franchise fees. Mr. Wolff asked if CenturyTel’s franchise fees were paid on the phone service or on their total billings. Mr. Breazeale stated that it is only on the dial access phone service. Mr. Wolff asked Mr. Breazeale what his opinion for Council was on this issue. Mr. Breazeale stated that we have an agreement with CenturyTel from a long time ago, which doesn’t allow the City to audit their records, and until it expires, we are living with the old agreement which is a long term agreement. The City’s other franchise agreements allow for an audit.

Mr. Wolff asked whether we needed to contact CenturyTel since they are now selling internet service and ask for a franchise agreement on that service. Mr. Breazeale replied that we can investigate this since they have raised the issue on WindWave. Other internet providers in the area are also looking into this. According to Mr. Breazeale WindWave has built franchise fees into their business plan. Mr. Healy commented that franchise fees could be a hindrance to a new business if they pay franchise fees and others do not.

Motion by Mr. Wolff to authorize City Management to go ahead with a proposed franchise agreement with WindWave Communications in the City of Heppner. Seconded by Mrs. Buschke.

Motion Carried.

9. COMMUNICATIONS FROM CITY ATTORNEY

Ms. Spicer stated that these will be covered in Executive Session.

10. COMMUNICATIONS FROM THE MAYOR/CITY COUNCILORS

A) Beautification Commission – Next meeting October 14, 2004.

B) Heppner Housing Authority

1) The next meeting will be held on September 27, 2004.

B) The Senior Center is full and operating. Repairs are being taken care of.

C) Mayor/Councilor Comments

1) Mayor Jepsen stated that he has pictures of the opening of the new Boardman City Hall which he will bring to the next meeting. He encouraged Council Members to visit the Boardman City Hall when they are in Boardman.

MEETING RECESSED AT 9:23 PM.

MEETING RECONVENED FOR EXECUTIVE SESSION AT 9:30 PM.

EXECUTIVE SESSION CONCLUDED AT 10:00 PM.

The following motions are a result of items discussed in Executive Session.

A) Motion by Mrs. Doherty to authorize the Sheriff’s Department to take actions to remove the dogs identified as dangerous dogs under dog control. Seconded by Mrs. Robinson.

Motion Carried.

B) Motion by Mr. Wolff that the City Attorney negotiate with the insurance company to settle the action on the repair and replacement of the bridge to the City’s best advantage.

Seconded by Mrs. Robinson.

Motion Carried.

Meeting adjourned at 10:02 PM.