MINUTES OF THE CITY OF HEPPNER CITY COUNCIL MEETING

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

7:00 PM, December 10, 2007

 

NOTE:  Where stated “Motion Carried” is considered unanimous, unless otherwise stated.

 

ATTENDEES:

 

Mayor, Les Paustian

Interim City Manager, Steve Bogart

Judy Buschke

Keith Lewis

Jo Ann Burleson

Kay Robinson

Cindi Doherty

 

Brian Harmon, Public Works Director

Ann Spicer, City Attorney

Rusty Estes, Heppner Fire Department

Sgt Randy Rayburn, Morrow County Sheriff’s Department

 

MEMBERS OF THE PUBLIC IN ATTENDANCE:

 

Tammy Malgesini, East Oregonian

David Sykes, Heppner Gazette

Judy Eckman, City Treasurer

Jerry Healy

Tom Wolff

Sharon Robinson

John Bowles, MCSD

Richard Stoddard, Barnett & Moro

Becky Harmon

 

1.  GENERAL BUSINESS

 

 

 

    C.  Announcements/Agenda Additions.  

 

        1)  Mayor Paustian introduced Steve Bogart who will be serving as Interim City Manager during the period that Mr. De Mayo is serving on active military duty.  A motion is required to allow Mr. Bogart signature authority on checks for Bank of Eastern Oregon Account 7610064292.  

 

Action:  Motion by Mrs. Buschke to grant Mr. Steve Bogart, Interim City Manager, signature authority for checks drawn on the Bank of Eastern Oregon Account 7610064292.  Seconded by Mrs. Burleson.  Motion Carried.

 

Comment:  Mr. Bogart stated that he is now bonded with the City of Heppner.

 

        2)  Old Dentist Office.  Mr. Paustian announced that he has received correspondence from Tim Dickenson expressing an interest in leasing the “old dentist office” located behind City Hall for a chiropractic office.  Mr. Paustian tasked Mr. Bogart to investigate this further.  A previous request from Ed Struthers for possible leasing the space at a later date will be followed up on to ensure that this request is no longer active.  

 

 

 

 

 

 

5.  REPORT FROM THE FIRE CHIEF.

 

Fire Chief Estes reported the following actions for the year ending December 10:

 

Heppner Fire Department had 85 page-outs this year.  This is up from the average of 65-72.

 

Chief Calls  - 547

Car wrecks – 21 MVAs

Calls out in the rural district – 16

Inside City calls – 9

Secured landing zone – 14

Assisted ambulance – 3

Car fire – 1

False Alarms – 3

Mutual Aid given – 15

Mutual Aid requests – 1

Chemical Spills/smells – 1

Flue Fire – 1

Wind Damage – 2

 

Mr. Wolff announced that there is a scheduled meeting in January for the combined fire districts.  

 

6.  REPORT FROM COUNTY SHERIFF’S REPRESENTATIVE.

 

    A.  The hourly report for November totaled 379 hours.  There is one vacancy.  The hourly breakdown shows the hours spent in Heppner.

 

    B.  With regard to abandoned vehicles, Mr. Paustian reported that Sgt Rayburn and other members of the Police Commission are working to implement a program called Junks Slips 101 which is a State program wherein abandoned vehicles can be disposed of and will benefit both the City and the Sheriff’s office by simplifying the process.  Several members of the Police Commission are also working on revising the abandoned vehicles ordinance.  

 

    C.  Mrs. Buschke stated that she has received comments from citizens on the response time to 911 calls made in Heppner.  The response times are sometimes very slow.  According to Sgt Rayburn, the response times sometimes depend on the severity of a call, i.e., barking dog complaints are not considered severe.  Currently, there is one deputy assigned to Heppner, and Deputy Bowles is also on-call in Heppner.  A full crew has been hired; however, the new deputies are in training.  Deputy Bowles stated that he always responds in a timely manner.  

 

 

8.  REPORT FROM HEPPNER HOUSING AUTHORITY.  

 

Mrs. Buschke reported the following:

 

    A.  Andrews Architects performed the architectural inspections of the apartments on December 6 and 7.  

 

    B.  Six members of the Housing Authority have volunteered to attend the meeting in Salem on January 8, 2008.  The plan is to use the Senior Bus for transportation.  

 

    C.  Tentative plans are to have the elevator repaired during the remodeling processing.  During the last wind storm the elevator was shut down due to problems getting the door to shut because of the draft.

 

    D.  The tenants in the center are excited about the work starting.  One tenant has given notice to vacate due to the rent structure under the grant.

 

    E.  Mrs. Buschke reported that the architects have requested that the second apartment remain vacant during the construction which will enable work to be done quicker.

 

11.  REPORT FROM THE PUBLIC WORKS DEPARTMENT.

 

Mr. Harmon reported the following:  

 

    A.  Mr. Harmon reported on Item 3 in the City Manager’s Report which pertains to the DEQ fine.  They are in the process of working with the DEQ on getting the fine reduced.  The fine is approximately $3500.  By the first of February they have to have a supplemental plan done and Memorandum of Agreement with DEQ and this is being worked on.  They have to come up with several things that can be done.  Mr. Paustian stated that this subject was brought up during a meeting with State Representatives and a representative from the Governor’s office, he and Mr. De Mayo discussed this issue in depth.  The emphasis was that small towns like the City of Heppner cannot afford to hire a licensed wastewater engineer and there are a lot of things that have been by-passed.  As a result, DEQ comes in and imposes fines.  He hopes this will be looked into.

 

    B.  Mr. Harmon reported that purchase orders for the plant repairs are attached, i.e., grinder, backup generator, and parts for the trickling filter.  The chlorination system has been done, but the purchase order for this is not included.

 

    C.  The tree in the park will be discussed with the “tree company” on Tuesday.

 

    D.  The tree by the Post Office will be decorated by Public Works on Tuesday.

 

    E.  Mr. Bogart commented that he appreciated the fact that the streets were sanded early this morning.  According to Brian this is the worst December weather-wise since he has been here.  Mr. Paustian stated that the issue with the sander truck is being worked on.  

 

12.  REPORT FROM THE CITY MANAGER.

 

 

    B.  Old Business

 

 

Discussion:  Mr. Wolff stated that this is for the cemetery.  Several years ago, the Port of Morrow donated a parcel of land behind the Van Liew’s home and behind Larry Mills’ home to the Cemetery District.  This has been recently divided into three parcels which is the major partition submitted for final approval.  

 

        2.  Resolution No. 694-07, A Resolution Approving the Subdivision of Parcel #01, Tax Lot 2500, Map 2S 26E 35CC, Henceforth Known as the “West View Addition” of the Heppner Masonic Cemetery (Final Application).

 

Discussion:  Mr. Wolff stated the facts leading up to the subdivision of Parcel No. 1 which is currently fenced off and seeded in grass.  Before using this space for burial plots, it was discovered that the subdivision needed to be filed.  This work is complete with the exception of Council approval.  This will be a raised stone area.

 

Mr. Wolff stated that the ground in the new parcel can be dug to 6-8 feet.  There is a major City water line running through the parcel and the City has been issued a 30 foot wide easement over the top of the water line.  This should be adequate space for the next 20 +/- years.  Mr. Bogart stated that as soon as the subdivision plat is approved and signed it will be recorded expeditiously.

 

Action:

 

        a.  Motion by Mrs. Burleson to approve Resolution No. 693-07, A Resolution Approving the Major Partition of Tax Lot #2500, Map 2S 26E 35CC, (Final Application).  Seconded by Mrs. Buschke.  Motion Carried.

 

        b.  Motion by Mrs. Buschke to approve Resolution No. 694-07, A Resolution Approving the Subdivision of Parcel #01, Tax Lot 2500, Map 2S 26E 35CC, Henceforth Known as the “West View Addition” of the Heppner Masonic Cemetery (Final Application).  Seconded by Mrs. Doherty.  Motion Carried.

 

 

        1.  Supplemental Budget.  Mr. Bogart reported that upon examining the Council Agenda, he discovered that with regard to the supplemental budget, that the supplemental budget was incomplete in that when a new fund is created, a hearing is required.  He requests consideration of the supplemental budget until the January 2008 Council meeting.  Funds can be expended from the sewer fund since it is an established fund.  Hopefully, the supplemental budget can be approved before funds for the housing authority are needed.  Mr. Bogart has discussed this with the auditor.

 

        2.  Auditors Presentation to the City Council.

 

Mr. Stoddard, Barnett & Moro, presented the following to the Council.

 

        a.  Page 5, Independent Auditor’s Report.  Mr. Stoddard stated that this is what is commonly referred to as a clean audit report.  The City accounting is a modified cash basis within the financial statements.  There was nothing derogatory to report within the financial statements.  There will be another report that discusses internal controls.

 

        b.  Page 8, Management’s Discussion and Analysis.  Net assets at year end in thousands shows that the City’s cash position at June 30, 2007 is better than it was in 2006.  There is more cash on hand, and at the time net assets were slightly lower than they were the previous year.  One of the reasons this happens is some of the capital assets have depreciated in a systematic manner over time and the City has not acquired many additional assets.  

 

        c.  Page 9, Management’s Discussion and Analysis.  Financial Highlights.  This discusses the revenues and expenses of the city.  These are similar from year to year; revenues are slightly lower, expenses higher, and net assets dropped by about $65,000.  At the same time, cash went up.  

 

        d.  Pages 13, 14.  Statement of Net Assets – Modified Cash Basis; Statement of Activities – Modified Cash Basis.  This discusses the assets and cash that the City had on June 30, 2007.  It also discusses the debt and what is due within the next year, how much debt the City has overall, and how much net assets the city has when the liabilities are subtracted from the assets.  

 

Page 14 discusses the City’s operation, Governmental Operations and Business-type activities, i.e., water, sewer, and housing.  It lists the expenses and related charges for service, operating grants, and capital grants.  This also discusses the taxes the city received and other revenues and transfers from government activities to the business activities.  

 

        e.  Page 63, Report on Internal Control Over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Audit Standards.  

 

Internal Control Over Financial Reporting.  “A significant deficiency in overall internal accounting control exists because the functions of handling cash and the recording of financial transactions are not adequately separated.”  This means that there are two people that work in City Hall, the City Manager and a Treasurer/City Recorder.  Ultimately the duties are not segregated so that no one person has control of the funds and records at the same time.  One of the things they recommend that the City look for ways that it can make sure that one person is watching over the other.  Bank reconciliations are a great way to do this; one does it and the other initials it that it has been done.  One person should provide oversight over the other.  Mr. Stoddard stated that the current system has been in place for a number of years

 

        f.  Management Letter.  Council members reviewed the management letter.  This contains four items.  Bank reconciliations.  Is the City Manager Reviewing?  This is a recommendation.  Debt covenants.  The safe drinking water loan has a covenant that Net Revenues of the Water Fund need to be 110% of the annual debt service.  Both the City Manager and Council need to monitor this covenant for compliance.  The insurance expense is being posted as an expense of the General Fund.  This could cause expenses in the proprietary funds to be understated.  They recommend that expenses that benefit multiple funds be posted to the Internal Service Fund and allocated to the individual funds from there.  

 

The city has more funds than in prior years, but assets are increasing with repairs.  

 

    3.  Presentation to Council by Miller & Sons.—Ryan Miller.

 

Mr. Miller presented the following with reference to Miller & Sons Disposal Service, LLC.

 

        a.  Mr. Miller purchased the business from David Green.  Prior to Mr. De Mayo’s departure from Heppner, Mr. Miller had discussed the billing procedures with him.  Mr. Green’s last bill increase, which was the first in ten years, raised the bills 20%.  This raise came out to odd numbers.  Mr. Miller would like to streamline the billing system, and distributed a proposal which showed the present rates, and proposed rates based on sizes of cans, dumpsters, etc.  This would standardize the rates throughout the area.  The base rate for a 32 gallon can would be $11.00 with a $1.50 charge for additional pickups.  Dumpster rental would be $5.00 per month, with $50.00 per month for four pickups per month, with additional pickups for $12.50 each.  

 

According to Mr. Miller, Mr. Green did not have a standard fee for dumpster pickups.

 

Proposed Rates submitted by Mr. Miller are as follows:

 

32 Gallon Can: 1 Can    $11.00

                 Each additional Pick-up - $1.50 per can

              2 Cans $17.00

              3 $23.00 – 3 Cans

45 Gallon Can - $17.00 – counts as 2 C

Dumpster Rental - $5.00 per month

 

Detailed list of other charges are on file at City Hall.

 

Mrs. Doherty asked about charges if there was no pickup for a week.  Mr. Miller intends to send out a letter with his December billing outlining procedures for the service.  For instance, if a customer does not have their garbage can set out at the curb, there would be a $2.50 charge for this extra service.  

 

Mr. Miller discussed the condition of three bridges in town, one on North Main Street near the shop building Mr. Miller purchased from Mr. Green, Elder Street, and Sperry Street.  The bridge limits are not adequate to carry the weight of his trucks, although there are no problems at this time.  He would like a letter from the City allowing him to cross the bridges with no fault.  Mr. Paustian stated that the City does not currently have funds to rebuild the bridges.  Mr. Paustian asked if Mr. Miller could alter his schedule so that the garbage in these areas could be picked up when his truck is not full.  Mr. Harmon stated that Mr. De Mayo had discussed rebuilding the bridges in the future with the State.  Mr. Paustian stated that there are concrete beams in Southern Oregon that have been donated to the City; however, transportation is a problem.  This is to take of the bridge on Sperry Street.

 

Mr. Miller discussed a drop box for bills, possibly one in City Hall and one in the Bank of Eastern Oregon.  Council members were agreeable to this.

 

Action:  Motion by Mrs. Buschke to allow Miller and Sons Disposal to install a locked drop box installed in City Hall for the purpose of receiving garbage service payments.  Seconded by Mr. Lewis.  Motion Carried.

 

Mr. Miller added that beginning 1 January 2008, billing will be done quarterly for residential customers.

 

Mr. Miller added that he is purchasing a new backup truck, an 89 Ford with a 20 yard box.  He also purchased a roll-off truck and one roll-off box.  Rates may vary and are based on Hermiston Disposal’s rates.  

 

Mr. Bogart stated that a resolution is required to raise the rates and this issue will be scheduled for coverage in the January 2008 meeting.  Mr. Paustian stated that this should be advertised.

 

NOTE:  AT THIS TIME, THE CONSENT AGENDA/COUNCIL ACTION WILL BE DISCUSSED.

 

3.  CONSENT AGENDA.  

 

    B.  Resolution No. 695-07, A Resolution Approving Accounts payable for payment.

    C.  Monthly Financial Statement.

 

Discussion:  None.

 

4.  COUNCIL ACTION.  

 

Action:  Motion by Mrs. Robinson to approve the Consent Agenda, to include Minutes of October 8, 2007 City Council Meeting and Resolution No. 695-07, A Resolution Approving Accounts payable for Payment, and Monthly Financial Statement.  Seconded by Mrs. Doherty.  Motion Carried.

 

MEETING ADJOURNED TO EXECUTIVE SESSION AT 8:20 PM.

 

Executive Session conducted per ORS 192.660 (1) (h) (Litigation).

 

15.  EXECUTIVE SESSION CONCLUDED AT 8:40 PM.

 

Action:  Motion by Mr. Lewis that the City of Heppner authorize the attorney to make the proposal to offer $90,000 cash.  This proposal will include the $58,000 retainage.  Seconded by Mrs. Burleson.  Motion Carried.  

 

16.  Additional Discussion.

 

 

17.  ADJOURNMENT.  Meeting adjourned at 8:52 PM.