MINUTES OF THE CITY OF HEPPNER CITY COUNCIL MEETING

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

7:00 PM, November 14, 2005,

ATTENDEES:

Larry Mills, Interim City Manager

Tim Van Cleave, Mayor

Council Members:

Cindi Doherty

George Koffler

Tom Wolff

Glenn Baker

Kay Robinson

Anne Spicer, City Attorney

Morrow County Sheriff’s Department, Sgt. Randy Rayburn

Heppner Gazette Times, David Sykes

Absent: Judy Buschke

Members of the Public:

Bob Jepsen

David Allen

1. GENERAL BUSINESS

A) Call to Order. The November 14, 2005 meeting of the City of Heppner City Council was called to order at 7:02 PM by Mayor Tim Van Cleave.

B) Pledge of Allegiance. Mayor Van Cleave led attendees in the Pledge of Allegiance.

C) Announcements.

Mayor Van Cleave announced that there are two additions to the Agenda:

1) Intergovernmental Agreement Between the City of Heppner and Morrow County Authorizing personal services of David Allen. In order to allow Mr. Allen to leave the meeting early, Mr. Van Cleave stated that discussions on this issue will be discussed under Communications from the Public Not on the Agenda.

2) Exhibit A – Current Bills

D) Correspondence. Mayor Van Cleave announced that the correspondence included in the packet were for information only.

2. COMMUNICATIONS FROM THE PUBLIC NOT ON THE AGENDA

A) Mayor Van Cleave introduced Mr. David Allen, Morrow County District Attorney/County Counsel. Mr. Allen briefed the history of the Urban Growth Boundary (UGB) Expansion. The process was started two years ago to investigate the residential/industrial land needs of the City of Heppner. This was initiated by economic development to have “shovel-ready” sites for industrial development. The purpose was to expand the Heppner UGB to abut the old mill site which would enable the City to run services (water and electricity) as an abutting property up to the mill site to enable it to be “shovel-ready.” In the past, the City had contracted with OTAK to do a needs assessment of all the available properties in Heppner. Martin Davis was then hired through a cooperative Intergovernmental Agreement between the City and the County, at a price of $1700.00 to complete a staff report and draft the ordinances and zoning amendments to affect the UGB expansion. At one point, the City held informational meetings and many attendees were concerned about annexation of their property into the City. Mr. Davis passed away before the reports could be completed.

The state has been pressuring the county to complete the study and Mr. Allen has agreed to complete the project. The intergovernmental agreement presented has been signed by the County Court, and the City Council’s approval will authorize Mr. Allen to complete the project, with the cost of $1700.00 to be split 50-50 between the County and the City. Mr. Allen would like to be able to review the background material for the study. His goal would be to furnish a draft to the County Court by November 23.

Mr. Koffler suggested that former City Manager Breazeale be contacted since he worked on the project prior to his departure from Heppner. Mr. Wolff added that the golf course had given approval to be included in the UGB. The Patton property was discussed and according to Mr. Wolff, this issue has been resolved.

Mr. Allen stated that there are zoning issues which will have to be resolved with the state. According to Mr. Allen, there is a financial report that should have been submitted in June 2004. OTAK is the vendor. Mr. Wolff stated that it was his understanding that the current zoning would not be changed in the UGB Expansion, but would enable the zoning to be changed in the future. According to the Council, the land between Devin’s plant and the golf course belongs to the Hoskins family and they have been adamant about not having the property included in the UGB and have no intention to sell the property.

According to Mr. Allen, more industrial land is needed in Heppner.

Motion by Mr. Koffler to approve the Intergovernmental Agreement between the City of Heppner and Morrow County as submitted. Seconded by Mrs. Doherty.

Mr. Wolff announced that he has a potential conflict of interest and will abstain from the vote. Mr. Baker announced that he is also abstaining.

Motion carried. Doherty – in favor, Koffler – in favor, Robinson – in favor, Van Cleave – in favor.

According to Mr. Allen, the County will pay him for this and the County will bill the City of Heppner for reimbursement.

3. CONSENT AGENDA

Motion by Mr. Wolff to approve the Consent Agenda as presented.

Mr. Wolff had questions about the bills to Bailey Heavy Equipment, CBEC, and Pendleton Grain Growers. The bill from Bailey Heavy Equipment was for a transmission in the dump truck; CBEC’s bill was for electricity, to include the Senior Center, Street Lights, Wells, and City Hall. The bill from Pendleton Grain Growers was for controller parts.

Seconded by Mr. Baker.

Motion Carried Unanimously.

Resolution approving accounts payable for payment. Resolution No. 619-05.

4. REPORT FROM THE PLANNING COMMISSION – None. Next meeting to be held on December 5. 2005.

5. REPORT FROM THE HOUSING AUTHORITY

Mr. Jepsen reported that the Senior Center still has three vacancies which results in a loss of revenue. The September fund balance is $15,000. The Reserve Fund is at $14,000 which is basically for repairs. Mr. Jepsen would like to see the reserve fund raised to $34,000 The Housing Authority moved to leave the rental rates the same until June 1, 2006. Mr. Koffler asked how the reserve account could be raised. According to Mr. Mills, the group felt that they would be better off getting the units rented before raising rents. Mr. Jepsen agrees with this. Mr. Mills stated that everyone agrees that the rental rates need to be looked at on an annual basis.

Mr. Wolff asked how the Senior Meal Site is working. According to Mr. Jepsen, John Gochnauer has been contracted to furnish the meals.

6. PUBLIC HEARINGS (Opened at 7:25 PM)

A. Hearing on Declaring Certain Property a Nuisance and Ordering Cleanup of Property. 440 Water Street, Map #2S 26 27 DD, Tax Lot 2500.

Sgt Rayburn reported that this action was continued from the last Council Meeting. Deputy Bowles has been working with the property owners but has been out of town. According to Mr. Mills, the front of the property has been cleaned up although there are still some items in the rear. Sgt Rayburn recommended keeping the action open for an additional 30 days.

Public Hearing Closed at 7:28 PM

7. COUNCIL ACTION.

A. A resolution Declaring Certain Property a Nuisance and Ordering Cleanup of Property. 440 Water Street, Map 2S 26 27DD, Tax Lot 2500.

Motion by Mrs. Doherty to keep the action open for an additional 30 days. Seconded by Mr. Baker. Motion Carried unanimously.

8. MINUTES OF COMMISSION MEETINGS

These are furnished for information. There will be no Police Commission meeting in November. Mr. Koffler asked if there had been a leak at the old pool site. According to Mr. Nelson, there was a leak which has been repaired.

9. REPORT FROM COUNTY SHERRIFF’S REPRESENTATIVE

A. Activity Report. Sgt Rayburn reported that this report will continue in the present format. They are over 128.5 hours.

B. Code Enforcements.

Sgt Rayburn reported that there are three new actions plus one that was reported by Mrs. Robinson. Mr. Van Cleave brought up a property on Cowins Street which has an old white truck that has been parked there for some time. Ownership of the property will be checked. Mr. Koffler asked about the travel trailer parked on Center Street and a Mercedes parked at the property by the Forest Service building. The status on these needs to be checked.

Due to Deputy Bowles absence, the new actions will be discussed next month.

Mr. Koffler also asked about the status of the old Gazette Times building. This property belongs to the city. Mr. Mills stated that he will talk to Mr. Estes at the Fire Department about disposing of the property. Mr. Koffler suggested boarding up the building.

Looslie’s Auto Body Shop is another property that needs attention. Mr. Mills has talked to Mr. Looslie and so has Mr. Wolff. Sgt Rayburn expressed the opinion that Mr. Looslie should be sent a letter. According to Ms. Spicer, a variance can be revoked for non-compliance. Mr. Koffler suggested that the City Manager send Mr. Looslie a letter.

10. REPORT FROM THE PUBLIC WORKS DEPARTMENT

A. Activity Report. Council members reviewed the report included in the packet.

B. Water Project Status. Mr. Nelson informed the Council that the project has been completed with the exception of some paving at the Balm Fork Bridge. Blue Mountain Paving will complete this.

Mr. Koffler asked how the system is working and Mr. Nelson stated that a pressure valve has been rebuilt on Gilmore Street. The hospital area is taken care of. The problems at Morgan Street and the high school will be taken care of by installing a new pressure valve and vault. There are some pressure problems due to the elevation change. Some areas on South Chase Street still need repairs. Mr. Koffler asked about a time line for this. According to Mr. Nelson, parts are being ordered and the work should be done in early December. Mr. Koffler asked why these parts are being replaced and according to Mr. Mills these valves should be replaced every five years and with the water pressure changes the parts need replaced. The cost for the vault is $4600. The other valves are being rebuilt at a cost of approximately $200.00 each. According to Mr. Nelson, the system should be working properly in another 60 days.

With regard to the problems on Matlock Street, the amount of funds available is not known at this time. The problems can be taken care of by transferring the 4 inch line to 8 inch line. Mr. Mills stated that the final balance in the contingency has not been determined. Mr. Mills thinks the vault can be worked into the fund match.

Mr. Wolff stated that Mr. Healy had discussed a potential problem with his water meter on Hager Street and is concerned about the meter freezing and who is responsible for this. The meter is within ½ inch of the meter box cover and the water loop is 3 ¾ inches beneath the top of the water meter box. According to Mr. Nelson, the contract called for the top of the meter to 2-6 inches from the top of the meter box. Mr. Mills stated that all meter boxes should be insulated and an announcement will be placed on Channel 3 beginning November 15. Property owners are responsible for insulating their meters. Mr. Koffler stated that there may be some issues with the placement of the meters in the boxes. Mr. Nelson discussed the type of insulation for the meters. The preferred solution is to enclose insulation material in plastic bags.

According to Mr. Mills, the wand meter reading equipment will require a change in the billing software as well as purchasing a wand. He estimated a cost of around $7500 for the software and the wand. A decision will need to be made on this. Mr. Wolff suggested contacting other cities that are using the software for their recommendations. Mr. Mills will discuss this with the new City Manager.

11. REPORT FROM THE FIRE CHIEF. None.

12. REPORT FROM THE CITY MANAGER

A. Flood Study Status. Mr. Mills reported that the maps should be available shortly.

B. UGB Update – discussed earlier in the meeting.

C. Court Street project with Oregon Department of Transportation.

Mr. Mills reported that this is being discussed with ODOT. They have set aside some survey money to begin survey work this winter. ODOT has asked the City if they could come up with something to show increased interest from the City for the project. Some of the suggestions are: Could the City help with moving water services; and could the City assist with landscaping. This would help ODOT move the project up the rankings in order to obtain funding. According to Mr. Mills, there are about 7 services on the East side of Court Street between the Court House and Barratt Blvd. that are taken off of Court Street. The city could move those up at very little cost except labor. The other item that the city might want to consider is some offer of labor to help with the landscaping upon approval of the plan. Mr. Mills also thought the city could consider adding $10,000 to assist with the project. In answer to Mr. Wolff’s question, the services would be feed from Gilmore Street. The $10,000 would have to be budgeted. According to Mr. Mills, the City needs to show a commitment to get the project done.

Mr. Baker asked if these items could be done on a contingency basis so that if the project is not approved, the city wouldn’t be obligated to spend the funds. Mr. Wolff asked Mr. Nelson if the water lines could be moved. According to Mr. Nelson this can be done, per review of the ODOT plans.

Motion by Mr. Wolff that the City proceed with letters of contributory assistance in the form of taking care of moving needed meters and water services and a cash donation to the project. Seconded by Mrs. Robinson. Motion Carried unanimously.

D. City Hall Open House. Mr. Mills reported that City Hall will be the site for the Christmas Tree Auction and Santa pictures. Mr. Mills stated that this would be a great chance for the new City Manager to meet the people in the community. Mr. Wolff stated that he had some problems with this. He doesn’t feel that an open house for the benefit of the Chamber and Hospice would be appropriate, although holding an open house at the same time as the tree auction and Santa visits so that public can meet the new city manager would be suitable. However, Mr. Wolff doesn’t want to see the city picking up the tab for the refreshments at a Chamber fund raiser. According to Mr. Mills, most of the refreshments were consumed last year during the Santa visits.

Motion by Mr. Wolff that an open house be held on December 1, 2005, to introduce citizens to the new City Manager. Seconded by Mr. Koffler. Motion Carried unanimously.

E. Audit Reports. Mr. Baker commented that the audit reports looked good. The only issue raised was the handling of cash, deposits, etc. Mr. Mills stated that his only comment is the fact that very little cross-training has been done in the billing and accounting process. This issue will be discussed with the new City Manager. Mr. Koffler stated that this issue should be included in the City Goals for next year.

Motion by Mr. Wolff that the City Council formally adopt and accept the financial statement and audit report dated June 30, 2005. Seconded by Mrs. Robinson. Motion Carried unanimously.

F. Memorandum from Interim City Manager requesting Action on 2 items.

1) Utility Assistance Program. In May 2005, a resolution was passed establishing a program to assist customers with water and sewer charges where needed. A $1,000 line was budgeted this year for this purpose. A non-profit agency needs to be appointed to administer the program and the program needs to be advertised so that people can make contributions. This could be included in the newsletter. The ministerial association performs the administration for CBEC. Mr. Van Cleave’s opinion is that the ministerial association could assist with this for the city and this would be a great resource for the city. The Neighborhood Center also provides input to the program at CBEC.

Motion by Mrs. Doherty to appoint the Ministerial Association to administer the Utility Assistance Program, contingent upon their agreement. Seconded by Mr. Wolff. Motion Carried unanimously.

2) Proposal from Morrow County to transfer the road from the High School to Fuller Canyon Road, Fuller Canyon Road to the Intersection with Highway 207, and Riverside Avenue from the City Limits to Fuller Canyon Road to the City of Heppner. According to Mr. Mills, this has been an issue for several years due to maintenance in the winter. Technically the road by the Sargent’s residence is a county road. County officials have stated that this was part of the agreement on the work on Riverside Avenue. The road from the high school on Morgan Street and into Lotts Addition are City roads. These areas are a safety issue in the winter. Mr. Van Cleave asked if this would be a concern if major road repairs were needed. According to Mr. Mills, the county has put a lot of money into this area over the years. Mr. Wolff was concerned as to whether the city could be in a liability issue on weekends when there are basketball games, etc., as far as having the roads sanded or plowed. Mr. Baker asked why the city had to accept the road and whether this has been agreed on.

According to Mr. Jepsen, at the last Utility Commission meeting, it was stated that the property needed to be deeded to the City. Mr. Jepsen discussed this with the former City Manager, Mr. Breazeale, and the results of these discussions was that the County had agreed to the City performing some maintenance on the road and that maintenance would include sanding and taking care of snow. According to Mr. Jepsen, Mr. Breazeale informed him that no agreement was made to deed the property to the City. According to Mr. Mills, the County has nothing in writing in reference to this. According to Ms. Spicer, if there isn’t anything in writing that the property ownership should be transferred to the City, no agreement can be enforced

. She has concerns about accepting property outside the city limits since this would mean that the city owns the road. Mr. Koffler requested that Mr. Mills discuss this further with the county. Mr. Baker suggested an interagency agreement to maintain the road. Mr. Mills stated that his understanding is that there was an agreement that the City would assume ownership of Riverside Avenue out to Highway 207. He doesn’t think this will happen right away. Mr. Mills offered to discuss this further with the County to clarify previous agreements and possibly a maintenance agreement. According to Ms. Spicer, ownership could be transferred in the event the property is annexed. Mr. Mills stated that it was his understanding is that there was an agreement that the City be given ownership of the Riverside Avenue portion only. He doesn’t think this will happen right away, and offered to discuss the subject further with Judge Tallman, to include considering a maintenance agreement.

G. Approval of Government/Municipal/Public Funds Banking Resolution authorizing signatures on City of Heppner Accounts with Bank of Eastern Oregon.

Mr. Mills stated that a resolution from the Council authorizing David DeMayo to have signature authority on the City’s accounts at the Bank of Eastern Oregon as of November 21, 2005. Mr. DeMayo is the incoming City Manager.

Motion by Mr. Wolff that the City Council approve a banking resolution authorizing signature authority on the City of Heppner accounts at the Bank of Eastern Oregon for the incoming City Manager, David DeMayo. Seconded by Mrs. Robinson. Motion Carried unanimously.

Mr. Mills also asked for a motion appointing David DeMayo as the City’s representative to the NEACT committee.

Motion by Mr. Wolff to appoint David DeMayo as representative of the City of Heppner at the NEACT committee. Seconded by Mrs. Doherty. Motion Carried unanimously.

H. Resolution No. _____, A Resolution Approving the Transfer of Appropriations Within the 2005-2006 Budget.

Mr. Mills reported that this issue has to do with the Golf Course.

Motion by Mr. Wolff to approve Resolution 620-05, A Resolution Approving the Transfer of Appropriations Within the 2005-2006 Budget. Seconded by Mrs. Doherty. Motion Carried unanimously.

Mr. Koffler asked about the recommendations in the audit report that the funding be broken down and disbursements segregated. According to Mr. Mills, the operations category was put into the budget a few years ago as a time-saving measure.

13. REPORT FROM THE CITY ATTORNEY

A. Report on Breeding Property. The report is included in the packet. Mr. Kuhn has talked to the title company and they are going to bill the City for part of the fees on the title insurance. The problem was that Chase Manhattan Bank had not filed their assignment; the title company did not make a mistake on this. The City has received the $1480.00. Mr. Kuhn is recommending that the $294.00 to the title company be paid.

Motion by Mr. Koffler that the City pay the $294.00 bill due to Columbia River Title Company for JFG (Judicial Foreclosure Guarantee). Seconded by Mrs. Doherty. Motion Carried unanimously.

B) CenturyTel. The City Attorney is working on the agreement with CenturyTel. The agreement is close to being finalized.

C) City Manager Contract. Ms. Spicer asked if the Council wanted the contract reviewed. According to Mr. Van Cleave, this is not necessary at this time.

14. REPORT FROM MAYOR/CITY COUNCILORS

A) Mr. Van Cleave reminded the Council that on Tuesday, November 22, at 7:00 PM at City Hall, a meeting is scheduled to discuss the St. Patrick’s Celebration Committee. Discussions will center around forming a board for the celebration.

B) Mr. Koffler asked about term expirations for positions on the Council and Committees and how the dates are determined. According to Ms. Spicer a member appointed to a position vacated by another member would fill that position until the expiration of the term. In Mr. Koffler’s case, he was appointed to Mr. Van Cleave’s position which expires in December 2006. This was erroneously listed in the audit as 2008, and clarified after the Council meeting.

C) Mr. Wolff inquired about the Heppner Garbage Disposal Service franchise and whether there has been a letter of renewal received from them. The franchise expires December 31, 2005, and no letter of renewal has been received. Ms. Spicer will research this further to determine what steps need to be taken.

Mr. Wolff also asked if there have been any recent complaints about the service. None of the Council members have had any complaints.

Meeting adjourned at 8:50.