DUNES CITY COUNCIL MINUTES
REGULAR MEETING
August 14, 2003

1. CALL TO ORDER AND ROLL CALL

Mayor Rob Ward called the meeting to order at 7:00 p.m.

PRESENT: Mayor Rob Ward, Councilors, S. Meyer, S. Navetta, P. Howison, J. Martin, and R. Petersdorf. (One Council Position Vacant)
ALSO PRESENT: City Recorder, J. Hickey; Recording Secretary, C. Lewis;
L. Riechel, Planning Commission; B. Yager, Siuslaw News; LCAN, and several citizens from the community.

2. PLEDGE OF ALLEGIANCE

Mayor Ward led the Council and audience in the Pledge of Allegiance.
Mayor Ward announced a vacancy on the City Council that will be filled by appointment with the term of the position lasting through December 2004.

3. APPROVAL OF MINUTES

Correction page 3, last paragraph "Becker asked if the certificate is not granted to IP, how would the dams would be regulated?" Strike second "would". Correction page 4, in left margin "we" and "Russell" struck. Correction page 5, third line from bottom of page, "Councilor Martin said she will reinstate abatement under the nuisance ordinance." Insert the word "eyesore/" before the word nuisance.

ACTION: J. Martin made a motion to approve the minutes for the July 10, 2003, City Council Meeting with corrections. S. Meyer seconded the motion. There were
5 ayes, 0 nays. Motion carried.

4. BILLS OF THE SESSION

The bills of the session for July 11, 2003, through August 14, 2003, totaling $15,232.54, were presented for Council approval.

ACTION: B. Petersdorf made a motion to approve and pay the schedule of bills for the period of July 11, 2003, through August 14, 2003, totaling $15,232.54.
S. Navetta seconded the motion. There were 5 ayes, 0 nays. Motion carried.

5. RECEIPTS OF THE SESSION

Receipts of the session from July 11, 2003, through August 14, 2003, totaling $8,257.91.

6. ANNOUNCEMENTS AND INFORMATIONAL ITEMS

A. Mayor Ward announced that an article was written in the August issue Alaskan Airline's magazine about Dunes City, the Oregon Dunes, and the Siltcoos River Trail.

B. Joanne Hickey announced that Siuslaw Valley Fire and Rescue is repeating the Emergency Response Training. Classes begin on September 29, at 6:00 PM.

7. GUEST SPEAKERS/CITIZEN INPUT ON UNSCHEDULED ITEMS

A. Ronnie Howell, Senior Counsel for International Paper, Mr. Ryke, primary contact for the Gardiner Mill, and Greg Corbin, Attorney with Stoel Rives L.L.P.

Mr. Howell said that after the merger of International Paper (IP) with Union Camp and Champion, they do approximately $26 billion dollar per year in sales. Since the mergers, IP has decommissioned nine paper mills in New York, Pennsylvania, Mississippi, Arkansas, Massachusetts, and Alabama. Howell explained that decommissioned means that they have announced that they will never operate the mills again, they have surrendered all regulatory permits, and equipment was removed and the buildings torn down to a concrete slab. The future of Gardiner's mill has not been decided. IP spends over $100,000 per month to keep the mill in operating condition. Gardiner's location is beneficial as a supplier to the West Coast and Pacific Coast Rim. Given the right economic factors, Gardiner is a viable paper mill. IP has been operating under temporary water rights since the 1960's with the conditions attached to the permits such as the water levels of the lakes, the operation of the dams, etc. When IP applied for the permanent water right certificate, IP fully expected those conditions to be a part of the permanent water right. IP hopes to get two things from the WRD process: 1) permanent water right certificate that would allow IP to draw the necessary water to operate the Gardiner paper mill; and 2) the same conditions applied that have existed for 40 years in the permanent water right certificate. IP is not interested in changing the operation of the dams, changing the level of lakes, but are interested in maintaining the status quo and not having to apply for the temporary water permit every year. Mr. Howell stated that IP is aware of it's obligations and will not walk away from those obligations.

Mayor Ward asked if IP would be open to having the additional conditions placed on it that weren't there 40 years ago, that are more of the operating procedures today and in that way it would assure continuance in the future. Howell said that if the question is if IP is willing to accept conditions on their permits that reflect the current status quo of what they are doing…absolutely. Howell said if that were the issue, they could resolve it right now.

Councilor Howison asked about the lake draw down. Mr. Ryke said that they hold water in the summer for recreation. In late September, water is released to accommodate the salmon. Howison said that previously there were some documents that discussed IP selling the water rights, and he asked Howell what caused IP to change their minds to hold the right verses selling the right. Howell said that he thought it may have been at the presumption of walking away from the Gardiner mill, which is not the case now.

Councilor Judy Martin said that it has been reported the roof on the building is deteriorating, the equipment is exposed to water, and the refuse pit has been filled in. Mr. Ryke explained that the refuse pit has a cap over it (it has been sealed). To operate it, all that needs to be done is to scrape the dirt layer off the top and slip in a liner. The February 6th storm took the flashing off on the west side of the paper mill and got under the roofing. His crew worked three weeks repairing the damage without doing a major overhaul of the roof. All equipment "down to a ½ hp motor" is operated on a two week rotation (a total of 2253 pieces of equipment is turned on and functioning).

Howison asked how IP could help with the quality of the lake water such as algae blooms in relation to the level of the lake. Mr. Ryke explained that Tony Harrington regulated the dam during the lower levels of the past two years, so that the level of the lake did not go down. IP works with the Water Master to determine the level of the lake. Mr. Ryke said that they have one person who spends a minimum of 2 hours/week controlling the levels of Tahkenitch and Siltcoos Lakes, which also includes checking the water flow over the sea wall. The dam gate is opened in November. Last year during the winter, due to a complaint that drinking water from the lake was salty, Tony Harrington came up on his own time and closed the dam during an eleven foot tide situation that was causing the problem. Mayor Ward said that he would like to see those same management practices continue whether IP or another entity holds the right in the future.

David Lauck commented that the practices of the last four years to maintain the level of the lake during the spring to allowing warm water species of fish to spawn adequately has helped the fishery tremendously.

Howell updated the audience as to where they are in the certification process.
A member of the Public asked about the draw down being at three feet. Howell said he would check into it. Public asked that after 40 years, why are they now seeking a permanent water right. Mr. Ryke said that in 1985 the plant manager didn't want to take the time to go through the process of obtaining the permanent right. Ryke said that the biggest advantage to IP is to keep the lake as close to the eight foot level as they can.

Mayor Ward said he asked the Water Resources Department if additional conditions could be written into the perfected water right and their answer was yes. Ward also said that a letter from Dunes City would be written to the Water Resources Department reaffirming to them what was being talked about tonight. Dunes City's interest is that the lake maintain it's functionality and the City would like to see something in the perfected water right that would assure that the same functionality continues whether IP is the actual permit holder, or if in the future, somebody else is the permit holder.

8. PUBLIC HEARING - None

9. REPORTS

POLICE COMMISSIONER/SRFD/CONSERVATION COMMITTEE - S. Navetta
Councilor Navetta reported that the Robinson's (Little Woahink Drive) have been removing ivy from the trees and the dam appears to be complete and operating well. Mr. Robinson is going to proceed with vegetation removal and bring a plan before the Conservation Committee. The Committee approved pruning and thinning in the riparian area of the Hickey property. Bob Anderson submitted his resignation from the Conservation Committee. Richard Anderson submitted an application and Navetta recommended to the Council that Anderson be appointed to the Conservation Committee.

ACTION: S. Navetta made a motion to appoint Richard Anderson to the Conservation Committee. B. Petersdorf seconded the motion. There were 5 ayes, 0 nays. Motion carried.

Navetta added that DEQ wanted a pick-up site for hazardous waste in Dunes City; however the City declines since they would also require pick-up for non-hazardous waste also.

ROAD COMMISSION/MASTER ROAD PLAN/LCOG - R. Petersdorf
Councilor Petersdorf introduced the interim Road Inspector Keith Herring. Petersdorf reported that during the current dry conditions, Dunes City will not be able to brush the road edge due to regulations that would make the cost too high. Petersdorf recommended that the roads be brushed prior to July in future years to avoid fire season.

The road dedications and easements for the Kiechle Arm Road project have all been signed and notarized. The contract for the project will be awarded later in the meeting. Petersdorf received permission to provide pizza to volunteers for a work party to install street signs.

PARKS & RECREATION/TOURISM/WATER - None.

SITE REVIEW COMMITTEE - J. Martin
Councilor Martin reported that the initiation of the abatement proceedings for the Watts was postponed last month due to an unfortunate family matter. However, the abatement will proceed after tonight's meeting.

COMMUNITY CENTER - P. Howison
None.

GRANTS/FRANCHISES/LICENSES - S. Meyer
Councilor Meyer reported on the new franchise agreement with Charter Cable. The contract would be for 15 years with the option of a 15 year renewal. Meyer believes that the commitment is too long. In the last contract there was a guarantee that there would be a payment office in Florence that does not appear in the new agreement. Meyer said he is not prepared to give a recommendation, and suggests that a representative from Charter be present at the September discussing the franchise fee. Joanne Hickey will schedule.

Petersdorf commented that he would like the franchise agreement binding, since prior agreements have been broken by the franchise.

MAYOR'S REPORT - Rob Ward
None.

10. UNFINISHED/OLD BUSINESS - Agenda order changed.

A. Awarding of Paint Contract - Councilor Howison presented the bid information for the exterior painting contract for the City Hall building. There were two bids: Brown $3300, Lofy $4255.

ACTION: P. Howison made a motion to award the exterior painting contract to Roy David Brown for $3300. S. Navetta seconded the motion. There were 5 ayes, 0 nays. Motion carried.

B. 2003 Street Improvement Projects Bid Opening and Awarding of Contract.

Mayor Ward opened the sealed bids. Three sealed bids were submitted; all met bidding requirements and deadline. All bids contained the required 10% bid security.
Bracelin and Yeager $363,731.85
Johnson Rock $339,457.90
Ray Wells, Inc. $314,890.00

ACTION: B. Petersdorf made a motion to award the project to Ray Wells, Inc. for the amount of $314,890.00, pending final verification of bids by the City staff. J. Martin seconded the motion. There were 4 ayes, 1 nay (Navetta dissenting). Motion carried.

C. Erhart Acres Area Proposed Annexation into Dunes City from Lane County. Paul Cornett, 83396 Seaview Lane, Florence, OR; Dave Dalberg, 83396 Erhart Road, Florence, OR; and Jim Silke, 83338 Erhart Road, Florence, OR.

Mr. Cornett explained that the property owners of Erhart Road located in Lane County jurisdiction and adjacent to Dunes City would like to be annexed into Dunes City. Some of the reasons they would like to be apart of Dunes City is to gain representation by Dunes City in the Water Right and other issues and feel that they are under represented by Lane County. Erhart Road has been improved up to the standards of Dunes City streets. Mr. Cornett presented a petition for expansion of the Dunes City Urban Growth Boundary. Originally Erhart Acres was a part of Dune City and de-annexed after Dunes City was formed. Ward informed the group that the State had told Dunes City during the development of the Comprehensive Plan that the Urban Growth Boundary could not be expanded because of undeveloped land within the City. The Urban Growth Boundary would have to be expanded before the area could be annexed. Ward said that it would help to have the signatures of the property owners before going before the State. Cornett explained that they would have signatures of all of the property owners that are affected.

Mayor Ward asked for a consensus of the Council. B. Petersdorf said that he was in favor since it would give the City more land use control around the Siltcoos Lake edge. J. Martin said that her only concern would be a financial obligation to the City in the area improving roads. Cornett said that road is improved with 16' wide paved roads with culverts, pipes and conduits placed before the road was paved. Howison, Navetta, and Meyer had no comments.

Mayor Ward asked that they bring the signed petitions and the City would ask that the property owners provide the legal support for the process, since it should not be a financial burden to the City.
C. Woahink Lake Water Use for Domestic Purpose Update - John Stead

John Stead reported on an informational meeting that was held July 15, 2003, with Paul Cleary, Director of Oregon Water Resources Department. Mr. Stead provided an overview of information regarding water usage in Woahink Lake (See Exhibit A).

Stead said that he worries about decisions that are being made without more information. He would like to sensitize the Council to the concerns that people have. Ward said that allowing residents to come under the Dunes City Water Right allows distribution without developing a water system since the Water Resources Department will not issue a Water Right to individuals if they can use Dunes City's right.

Meeting recessed for approximately 5 minutes.
Meeting resumed at 9:30 PM.

D. Agreement with Lane County Animal Regulation Authority
Councilor Navetta explained that the agreement would establish a rate/fee for Lane County helping Dunes City with dog bite incident. (See Exhibit B.) There was some discussion about establishing a fee schedule to pay for the service, but was pointed out that Lane County will identify the owner and collect the fee for a service that will not be routinely used.

ACTION: S. Navetta made a motion to accept the Intergovernmental Agreement with Lane County Animal Regulation Authority. J. Martin seconded the motion. There were 4 ayes, 1 nays (Petersdorf dissenting). Motion carried.

E. Lane County Board of County Commissioners Meeting in Florence, September 29, 2003: Dinner meeting at 5:30 PM. Council to be updated at the September City Council Meeting.

F. Dunes City Website - Fred Hilden, Webmaster

Hilden gave a status report and recommendations on web site development for Dunes City. (See Exhibit C.) One of Hilden's recommendations was to include businesses outside of Dunes City in an effort to promote paying advertisers in the future, such as the kayak business in Florence and businesses south of the Siuslaw River Bridge. Council recognized the unfairness of promoting businesses outside of Dunes City, but agreed with Hilden's current direction and future goal. Hilden expressed a need for a Councilmember to give direction and oversee the website. Ward suggested using himself and Navetta as contacts for the website.

ACTION: B. Petersdorf made a motion to approve and implement the recommendations made by Hilden concerning the Dunes City website. S. Meyer seconded the motion. There were 5 ayes, 0 nays. Motion carried.

11. NEW BUSINESS

A. Resolution 08-14-03 (A): A resolution extending Workers' Compensation coverage to volunteers of Dunes City. (See Exhibit D.)

ACTION: S. Meyer made a motion to adopt Resolution 08-14-03 (A), extending Dunes City's Workers' Compensation Coverage to Volunteers of Dunes City. J. Martin seconded the motion. There were 5 ayes, 0 nays. Motion carried.

Joanne Hickey suggested keeping track of hours of volunteers.

B. Resolution 08-14-03 (B): A resolution adopting fees and procedures to vacate easements, plats, public squares, or other places. (See Exhibit E.)

Mayor Ward explained that there is a need for vacating a public utility easement between two small lots allowing a property owner to develop on the property line.. Ward explained the process of vacating an easement that would include the City sending out notices to property owners and utilities. If the vacation is objected to, there would be a public hearing prior to a Council decision. Petersdorf said that he would like to see the term "other places" defined and the ORS cited.

ACTION: P. Howison made a motion to adopt Resolution 08-14-03 (B), Adopting Fees and Procedures to Vacate Easements, Plats, Pubic Squares or Other Places. S. Navetta seconded the motion. There were 5 ayes, 0 nays. Motion carried.

C. Review of Wetland and Riparian Inventory - Judy Martin
Councilor Martin recused herself from the Council citing a conflict of interest.

Martin explained that Dave Perry, Department of Land Conservation and Development, suggested in August of 2002, that the City may want to review it's

wetlands and riparian inventory due to inaccuracy. Martin discussed the process of updating the inventory and estimated the cost at approximately $7000. Mayor Ward suggested calling Pacific Habitat to get an estimate.

ACTION: S. Meyer made a motion to proceed with the grant process. B. Petersdorf seconded the motion. There were 4 ayes, 0 nays, 1 recused. Motion carried.

12. UNSCHEDULED ITEMS

Councilor Martin questioned expenditures in the monthly financial statement for medical benefits. Martin said that the Council did not approve the medical benefits. The Council discussed the issue and decided to check in the minutes and schedule a special meeting to finalize the medical benefit decision.

Councilor Navetta referred to the water bars that are to be installed on Huckleberry Lane and questioned if the Fire Department should be checked with to see if it would affect their
fire trucks. Petersdorf said that the water bars on Ford Way had been previously approved by the Fire Department.

13. EXECUTIVE SESSION: None.

14. ADJOURNMENT: Mayor Ward adjourned the meeting at 10:20 p.m.

APPROVED BY:

Robert B. Ward, Jr., Mayor
S. Meyer, President
J. Martin, Councilor
R. Petersdorf, Councilor
S. Navetta, Councilor
P. Howison, Councilor
C. Lewis, Recording Secretary