MINUTES OF THE CITY OF HEPPNER CITY COUNCIL MEETING

HEPPNER CITY HALL, 111 N. MAIN STREET, HEPPNER, OREGON

7:00 PM, June 12, 2006

 

ATTENDEES:

 

Mayor Tim Van Cleave

City Manager, Dave DeMayo

Judy Buschke

Cindi Doherty, Council Chairman

George Koffler

Tom Wolff

Glenn Baker

Kay Robinson

 

Rusty Estes, Heppner Fire Department  (Left meeting early)

Bruce Nelson, Public Works Director  (Left Meeting early.  

Bill Kuhn, City Attorney

Sgt Randy Rayburn, MCSD

 

Note:  Due to bad weather, Councilman Wolff had to leave the meeting shortly after it was called to order.

 

I.  Call to Order/Agenda Additions or Deletions

 

The June 12, 2006 meeting of the Heppner City Council was called to order at 7:00 PM by Mayor Tim Van Cleave.

 

    A.  Mayor Van Cleave led attendees in the Pledge of Allegiance to the Flag.

 

    B.  Additions to, or deletions from the agenda.  None.

 

II.  Consent Agenda.  

 

 

    B.  Accounts Payable (the bills):  Resolution No.638-06.  (Monthly Financial Statement is for information only.)

 

Discussion:  Mr. Koffler asked whether the City is being reimbursed by the insurance company for the damage at the Senior Center.  According to Mr. De Mayo, the insurance will cover the damages, but not the repairs, which are unknown at this time.  The insurance has paid for the cleanup and damages to Mr. Mc Roberts’ unit.  The City reimbursed Mr. Mc Roberts for his meals and the insurance will cover the motel bill.  Nothing has been done on the new damage.

 

 

Action:

 

 

(Note Mr. Wolff left the meeting at this time:  7:08 PM)

 

 

    A.  Correspondence from the Public.

 

        1.  Letter, April 24, 2006, US Dept. of Homeland Security, FEMA.  Mr. De Mayo commented that the letter congratulated former City Manager Breazeale on his work on the National Flood Insurance Program’s Community Rating System.  A FEMA representative is planning to attend the next Council meeting.

 

    B.  MCGG response to installation of a meter for the tree Line—Riverside Avenue.  This letter indicates that MCGG no longer wants to pay for the hookup of a meter and the water to the trees  Mr. Baker expressed concerns about whether there was written agreement for this.  According to Mr. Van Cleave, there was no written agreement.  Mr. De Mayo stated that the water usage for the Little League was very high and installation of a separate meter was considered to monitor the usage for the trees.  Mr. Ripple, MCGG, does not approve a separate meter.  Mr. De Mayo also stated that when the resolution was passed to give 200,000 gallons to the Little League, having the trees on this caused the water usage go up.  The meter for the trees is installed and ready to hook up with lines, etc.  Water for the trees still goes through the Little League meter.  Mr. Koffler asked if it was important to hook up the meter since the City is giving the water to the Little League and for the trees.  All the water is metered.  Mr. Van Cleave stated that the Little League might want to have the meters separate so that their usage could be determined.  Mr. Ripple had expressed concerns that once the meters are separated that the City would start charging for the water.

 

Mr. Baker stated that the role of the City should be defined on this.  He feels Parks and Recreation is a part of local government.  Mr. Van Cleave asked about the cost of installing the meter.  According to Mr. De Mayo, the cost would not be very expensive—approximately $3,000, to include installing the lines.  Mr. Van Cleave and Mr. Koffler expressed their opinion to leave things as they are, but to have a written water use agreement between the parties.  Mr. De Mayo suggested that the City Attorney stipulate that Morrow County Grain Growers allows the use of their property by the Little League.  Mr. Kuhn stated that the agreement could be in force as long as the City allows the use of the water.  Mr. Koffler agreed with Mr. De Mayo.

 

Action:

 

Motion by Mr. Koffler that the City Manager strike an agreement with the Grain Growers in writing to allow the City to provide water to their trees as long as they agree to maintain the property and allow the Little League to use their property for that purpose.  Seconded by Mrs. Robinson.  

 

Discussion:  Mr. De Mayo agreed to furnish a draft agreement to the Council at their next meeting.

 

Question:  Motion Carried.

 

 

Public Hearings opened at 7:15 PM.

 

    A.  FY 06/07 Budget Hearing.  Mr. Van Cleave stated that Mr. Wolff had expressed concerns about the Rural Fire District and how much they owe the City.  According to Mr. De Mayo, the fee is based on the number of calls.  The percentage of calls is based on a rolling ten year average and they have gone up.  Mr. Van Cleave stated that on Page 8 of the budget, Mr. Wolff’s concern was that the transfer amount was estimated on the bottom total instead of the top total.  Mr. Van Cleave explained that the percentage amount was based on the 2004/2005 actual Fire Protection Expenditure amount and this is where the 2006/2007 Rural Fire District contract revenue amount came from.  It had nothing to do with the transfer because there was no transfer that year.  This could be an issue for the 2007/2008 budget.  Mr. Wolff didn’t think that the figures should be based on the $51,981 total, but on the $37,481 + $6,500 total.  The actual amount of $44,229 for 2004/2005 was used as the figure to come up with the amount that they owed.  Mr. Wolff was opposed to approving the budget due to concerns on Rural Fire District Contract amount, but Mr. Van Cleave stated that this is irrelevant because there was no transfer for 2004/2005.

 

Mr. Koffler asked Mr. De Mayo if he recommended any changes to the budget and he stated not at this time.  

 

Mr. Koffler had a question on the permanent rate.  According to Mr. De Mayo, this figure is fixed by law.  The permanent rate for the City is 10.629.  This figure is furnished by the Assessor’s office.  

 

    B.  State Revenue Sharing.  No Discussion.

 

Public Hearings closed at 7:25 PM.

 

 

 

 

 

    A.  Chief, HFD.  Mr. De Mayo reported that he had talked to Chief Estes about the City yard.  Most of the concrete has been removed by Mr. Britt.  Most of the remaining material is debris which needs to be hauled to Finley Butte by the fire department.  It is necessary to haul the material to Finley because there could be asbestos and other dangerous materials.  It will be hauled off as soon as funds are available from donations by the Fire Department Auxiliary.  There will be no cost to the City.  

 

(Note:  Councilman Wolff returned to the meeting at 7:30 PM.)

 

    B.  MCSD.  Sgt Rayburn reported that they are sitting well on their hours.  Things are picking up on the incident report.  No Police Commission meeting was held in May.  With regard to code enforcement actions, they go to court on June 13 on the Rollis’ action.  Mr. Rollis will be fined.  He is working on cleaning up the weeds in his yard.

 

The vehicle and metal crushing operation was very successful.  They hauled off 209.43 tons of scrap metal, i.e., vehicles, refrigerators, washers, and dryers, etc.  They picked up 102 cars.  

 

Things have gotten active in Heppner with the recent action which has resulted in a very large drug case.  Deputy Bowles is handling the case.  Information will be released later.

 

Sgt. Rayburn will begin working on code enforcement actions later this month.  Mr. Van Cleave stated that the Beautification/Parks and Lands Commission has discussed making sure that the grass and weed issue is actively pursued.  

 

    C.  PW Director.  Since Mr. Nelson was not available, Mr. De Mayo reported the following:

 

The boulders and berms are in place at the old pool site  The fence is finally repaired at Hager Park and they are working on plans for this site.  They are working on the irrigation line.  Mr. De Mayo talked with Ken Bailey and they may put in a couple of storm drains, depending on the price:  One of these will be on Baltimore Street, where Mary Ella Johnson’s basement on Baltimore Street has been continually flooded.  On Hill Street Mr. Bailey has also looked at what work can be done to correct drainage problems in that area.  Mr. De Mayo complimented the Public Works crew on their response to the recent power outage.  They checked all the systems to ensure that everything was working properly.

 

Mr. Wolff inquired about the water revenues.  He commented that the annual increase in revenue is lower and more funds are needed to make the payment and maintain the 10% retainage.  He hopes the City will have enough funds this year.  Mr. Wolff is concerned about the cash flow problem in the future.  He is concerned about raising revenue or decreasing costs.  Mr. Baker asked if these revenues should be dedicated now.  Mr. Wolff believes water usage is down because of the raised rates, and foresees a shortage of funds in the future.  Mr. De Mayo stated that future personnel costs will decrease some with the retirements of Mr. Ehrmantraut and Ms. Devin.  Mr. Wolff stated that steps should be taken now to ensure that funds are available in the future.  This will be handled through the budget process.

 

    D.  Planning Commission.  No report—a meeting was not held in June.

 

    E.  Housing Authority.  

 

Mr. De Mayo reported that the leaking problem at the senior center continues.  Mr. Koffler asked whether the problem is insufficient drainage from the roof.  Mr. De Mayo stated that there are other problems.  On the first years ago, the building had a different front with awnings.  The drain off of the awnings went through the area where apartment 129 is now located and through #129 into the storm drain.  When the remodeling was done, a plug was installed.  The plug has worn out and the water did not go through the drain.  A piece of plastic was stuck in the pipe between the second and first floor.  This was removed.  However, the workers are sure that this is not the only problem.  They suspect the whole pipe needs to be replaced.  Mr. De Mayo suspects there is also structural damage.  The other problem is over the pantry where the drain goes down from the roof, wood surrounds the drain.  The wood has gotten wet and is rotting.  Therefore, when it rains, the water goes straight through the rotten wood and into the pantry.  The other issue is where the big drain comes out from #129 down to the storm drain, the drain to the storm drain is a 4 inch line, and the storm drain is a 2 inch line.  The roof is no longer the issue, but the pipe on top of the roof does not drain properly.  The plan is that the insurance company is having Alliance out of Pasco to come back down to Heppner to discuss repairs.  Mr. De Mayo suspects there are more problems.

 

Mr. Koffler stated that the Council needs to take immediate decisive action to fix this or we will not be able to keep tenants in the building.  Mr. De Mayo discussed a possible option for routing the drainage off the roof.  However, the City does not have the expertise to handle this.  This could be an expensive fix.  Alliance quoted Mr. De Mayo a price of $30,000 to repair the drain system.  Amount of insurance coverage is unknown.

 

There are currently four vacancies which includes apartment 129, which is not rentable at this time.  Mr. Koffler asked Mr. De Mayo if he was pleased with the response from the insurance company.  Mr. De Mayo stated that they are probably doing the best they can under the circumstances.  

 

Another issue that was discussed is that there is not a strong reserve.  Mr. Koffler asked about the status of the refinance.  Mr. De Mayo stated he had trouble getting the as-builts.  These have been located and Mr. De Mayo will start working on the refinance.  He would like to refinance in order to lower the payments, but rents will have to be increased slightly.  He suggested a cost of living increase each year.  Mr. Wolff is concerned that a rent increase will not raise the reserve, but suggested an annual rent increase equal to the Social Security increase percentage would be equitable.  Mr. Koffler stated that a lower interest rate would help to build up the reserve.  A fully occupied building would also help.  According to Mrs. Buschke, a plan is needed right now.  

 

    F.  City Manager.  

 

    1.  Bruce Kelly Way.  Mr. Edmundson has brought this issue to Mr. De Mayo’s attention.  Although the Council approved naming a portion of Upper Chase Street, Bruce Kelly Way after a hero of the 1903 Heppner Flood, a sign has never been posted.  Mr. Edmundson would like a sign placed on this section of the street.  Mr. De Mayo stated that a sign will be ordered and installed.  Council members noted that the Corps of Engineers gate has been open for some time.

 

    2.  Little League Fields.  Mr. De Mayo stated that the current resolution is not realistic because every year they go over the 200,000 gallon limit and every year they are authorized more usage.  Mr. De Mayo gave the current figures on usage.  Mr. Baker stated that he would like some kind of estimate on what the usage should be for this area.  Mr. Van Cleave asked Mr. De Mayo to talk to Jay Gibbs on this issue to determine whether the usage could be cut.  

 

    3.  Vacation of Race Track Street.  Mr. De Mayo stated that this issue will be covered at the next Council meeting.

 

    4.  St Patrick’s Senior Center Leak.  This issue was discussed earlier in the meeting.  

 

    5.  Alfalfa Street Bridge.  Mr. De Mayo stated that the repairs are complete.  The insurance company paid $6,000.  This covered the engineering estimate and actual repairs with a safety margin.

 

    6.  AT&T Cell phone accounts.  Mr. De Mayo reported that Cingular has taken over our accounts.

 

    7.  Water Right for Well #5.  The application will be sent out on 13 June 2006.

 

    8.  Heppner Flash Flood Emergency Plan.  This will be discussed later in the meeting.

 

    9.  Election Cycle.  The election cycle for several Council positions and the Mayor position is about to start.  Mr. Van Cleave announced that he is not planning on running for Mayor again.  Mr. Koffler suggested that the Council spend some time brainstorming candidates—Mr. Van Cleave agreed.  

 

    10.  Bid on sidewalk project.  Mr. De Mayo announced that F&G Services turned in the only bid on the sidewalk project.  The bid is slightly over the $50,000 grant cost.  The cost has to be under $50,000.  This will be discussed later in the meeting.  

 

    11.  Moore Construction.  Mr. De Mayo reported that Ace Consultants has written a letter to Moore Construction., Right now the North Court Street costs are $9,700 approximately and the Gale Street costs $10,100.  Their retainage right now is about $58,400 +/-.  There is also approximately $1,000 in attorney fees.  They have received the letter and are talking to their attorney.  Wen Jou, Ace Consultants, thinks their attorney will advise them to own up to this, but there is a chance that it could go to arbitration.  They expect an answer from Moore some time next week.  Mr. De Mayo explained the process with the retainage.  Mr. Kuhn explained the process.  He has been researching this with the engineer.  Wen Jou has written a letter to Moore telling them that they should pay the City.  Mr. Kuhn is hopeful that Moore’s attorney will encourage them to pay the City.  Mr. Kuhn doesn’t think that the City will pay the final payment until the issue is resolved.  There should be further information by the next Council meeting.

 

    12.  Six month evaluation for Mr. De Mayo.  The six-month evaluation for Mr. De Mayo is due.  Mr. De Mayo has enclosed a format which was used in the past for Council’s review/editing.  Mr. Van Cleave stated that he thought this format should be shortened.  He explained the process for Council members.  Mr. Wolff feels that there should be an executive session at next council meeting to review their comments.  Mr. Koffler suggested possibly holding an executive session at a separate date.  

 

Action:  

 

Suggestion by Mr. Koffler that the Council meet separately to do the evaluation and then share the evaluation at the next Council meeting during executive session.  Meeting to be held on June 19, 2006, at 7:00 PM at City Hall.  Council agreed to this.

 

Discussion :  Mr. De Mayo stated that he will take care of the Public Notice to the Gazette Times.  He stated that he did not have a review at his last assignment.  

 

    13.  St. Patrick’s Senior Center Refinancing.  Discussed previously.

 

    14.  Baltimore Street.  Mr. De Mayo mentioned that Baltimore Street is platted between Willow Creek and the Elementary School and it doesn’t make sense to have this continue.  Mr. Kuhn will research this further.

 

    G.  City Attorney.  Mr. Kuhn stated that he has already reported on most of his efforts for last month.  On the Race Track Street vacation, he reported that he is waiting for Coppock Surveying to furnish legal descriptions for Matlock Street.

 

    H.  Council Members.

 

    1.  Mrs. Buschke asked about horses on the sidewalk and leaving manure.  Mr. Van Cleave stated that according to the ordinance they are under the same obligation as other pet owners.  Mr. Wolff stated that he had witnessed a log truck stop for four horses and avoid a dangerous accident.  

 

    2.  Mr. Wolff reported on an LOC meeting he attended in Pendleton.  He reported that he received a lot of good material from the session.

 

    3.  Mr. Koffler stated that he wanted to emphasize the weed problems in town.  Mr. Van Cleave stated that people should contact the Sheriff’s Department or City Hall on these problems.  

 

    4.  Mr. Baker asked Council to be on alert on the recent drug problems in Heppner.  According to Mr. Van Cleave, this is not a school problem and also involves adults.

 

 

    A.  Acceptance of Contractor Bid for Sidewalk Project.  According to Mr. De Mayo, some of the items in the bid will be cut in order to keep the cost under $50,000.  Additionally, there may be some funds in the Footpaths and Bikeways to help with some of this.  Mr. De Mayo would like the bid approved, contingent on the adjusted amount being under the $50,000 limit.

 

Action:  

 

Motion by Mrs. Doherty to accept the bid from J and G Services for the City of Heppner, Highway 207, curb, sidewalk and drainage project, contingent on the amount of the bid being reduced to under $50,000.  Seconded by Mr. Baker.  Motion Carried.

 

    B.  Sale of TL #6300.  Mr. De Mayo stated that Mr. Kuhn had advised him on the method of disposing of excess property.  The recommended method was to advertise the property for sale at the assessed value.  The only response was from Morrow County Grain Growers who agreed to purchase the property at the assessed value ($2800.00).

 

Action:

 

Motion by Mr. Wolff to accept the bid from Morrow County Grain Growers for the assessed price.  Seconded by Mrs. Buschke.  Motion Carried.

 

    C.  Amendment of the Heppner Flash Flood Emergency Plan.  According to Mr. De Mayo, there were several changes to the plan as follows:

 

        1.  The plan will go into effect when the Corps of Engineers Storm Alert System reaches Level 3.

 

        2.  The Fire Chief will be the Incident Commander.

 

        3.  The phone numbers for the Points of Contact were updated.

 

Mr. De Mayo recommends adoption of the Changes.

 

Action:  

 

 

VII.  New Business.

 

    A.  Acceptance of Engagement Letter—Barnett & Morrow P.C.  

 

 

Action:

 

Motion by Mr. Koffler to approve the Engagement Letter from Barnett & Moro, P.C. dated May 20, 2006, between Barnett & Moro, P.C. and the City of Heppner.  Seconded by Mrs. Doherty.  Motion Carried.  

 

    B.  A Resolution Authorizing the Treasurer of Morrow County to Invest the Funds of the City of Heppner Pursuant to ORS 294.035, 294.124, and other General Authorization.

 

Action:

 

 

 

IX.  Adjournment.  Meeting adjourned at 8:50 PM.