1.    ROLL CALL:  Mayor Lehmann called the meeting to order at 7:00 p.m.  Mayor Lehmann and Councilors Church, Welch, Moore and Woodruff answered the roll.  Councilor Peterson was absent.  A quorum was present.
2.    CITIZEN COMMENTS AND CONCERNS: 
    A.    Letter from Shari Wiltshire:  Mayor Lehmann noted that this letter was in regards to the ODDA work on the Downtown Redevelopment Program, praising their efforts.
    B.    Email from Zelda Carter:  Both this letter and another distributed at the meeting from Frank Gibbs were in regards to problems with cats in the Old Town area.  Following discussion, it was determined that the Finance and Administration Committee would review existing ordinances from other communities and the county and provide a recommendation to Council.
    C.    Letter from Dean Richmond:  This letter was in regards to a vacant house which has been vandalized and which also may present a health hazard because of trespassers who have been setting fires, etc.  Following discussion, it was determined that the City Administrator, City Planner and Sheriff's department would follow up on the issue.
3.    COUNCIL COMMENTS AND CONCERNS:  Councilor Welch noted he had attended two COG meetings in Albany.  He gave a brief update on two issues, noting that Congress did support the independent living program and provided $400M statewide for highway improvements.  He would be making specific recommendations to ODOT for additional paving for Highway 34.  Councilor Welch noted that the sliplining project at the golf course was almost completed.  Mayor Lehmann reported that she had walked with the group from SOLV, who said that Waldport was one of the friendliest communities on the Oregon Coast.   Mayor Lehmann also noted receipt of a request for a meeting from Mr. McClintock.  He indicated that pursuant to his contract, he would like to meet with the Mayor and the City Administrator to discuss his concerns.  Following a brief discussion, Councilor Welch moved to have the City Administrator and the Mayor meet with Mr. McClintock as per his request.  Councilor Moore seconded, and the motion carried unanimously on a voice vote.   Mayor Lehmann noted that the City had received two responses from its  RFP regarding the potential sale of the Rebel Road property.  She moved to accept the proposal from Emerald Coast Realty, at the quoted percentage of 7% if the property were listed for one year, with the proceeds from the sale to go to the Park Development Fund.  Councilor Welch seconded.  A brief discussion ensued regarding whether the funds could be moved once they had been so allocated.  Mr. Dowsett indicated that it would be possible, if the Council were to eliminate the Park Development fund the monies could be then put back into the General Fund.  Councilor Church confirmed that the estimated value of the property was around $45,000.  The motion then carried, with Mayor Lehmann and Councilors Woodruff, Church and Welch voting "Aye", Councilor Moore voting "Nay".  The final item noted by the Mayor was in regards to additional funding available from the RIB program, approximately $4M for the four-county area.  She suggested that the Council start thinking about projects in the City which might fit into the funding parameters.
4.    MINUTES:  The Council considered the minutes from the July 5, 2001 meeting.  Councilor Moore moved to approve the minutes as presented, Councilor Welch seconded, and the motion carried unanimously on a voice vote.
5.    STAFF REPORTS: 
    A.    Sheriff Report:  Lt. Stallard and "Deputy Kylie" (his youngest daughter) addressed the Council.  He gave a brief explanation of the way the Sheriff's department handles animal complaints, including household cats which fall under the county's kennel ordinance, and feral cats which are handled under nuisance violations.  In order for a program to work, he noted that there was a need for citizen volunteers who would be willing to manage the traps, either releasing household pets or arranging to have feral cats taken to the animal shelter.  Lincoln County no longer has an animal control department, due to a lack of funding.  Lincoln City and Newport share a contract for an animal control officer, paying approximately $23,000 per year for a half-time employee.  Councilor Welch noted anecdotal observations from citizens that the City has speeding problems on Highway 101,  and suggested that the Sheriff's Department pay a little more attention to that area.  Lt. Stallard responded that the majority of complaints come from Hwy 34 and Crestline Drive, mostly due to residential concerns.  However, he noted they could shift their focus for a while and see what kind of results they had.  Councilor Church reminded Lt. Stallard about Sheriff O'Brien's concession to bring an unmarked car for occasional patrols and Lt. Stallard indicated that this had been done recently, by Sheriff O'Brien himself.
    B.    City Administrator:  Mr. Dowsett noted that his project status report was getting shorter.  Regarding the Rocky Creek project, Councilor Welch mentioned that officers had been elected and the lengthy process of gathering information to present to the state had begun.  He noted that Mr. McClintock would be the City's representative on the technical committee.  Mr. Dowsett indicated that there would be a meeting at the Evening Star Resort on August 15 from noon until 1:00 with Congresswoman Hooley.  He asked the City Attorney if there would be a problem with four or more members of the Council attending, Mr. Hammersley responded that this was considered an exception, as long as the Council members did not get together for any private discussion.  Councilor Welch mentioned that he had attended a recent meeting with Senator Gordon Smith, and commented on the level of representation for the Waldport area.   Mr. Dowsett noted that eh documents for the line of credit and the term loan for financing of the I & I project had been executed that day.  The check would be issued on August 3.  Mr. Dowsett indicated that the City had received two bids for asphalt.  Councilor Moore moved to approve bid #0226 from Road and Driveway.  Councilor Welch seconded, and the motion carried unanimously on a voice vote.  Mr. McClintock noted that the price was lower than it had been the previous year, possibly due to the presence of competition.  Mr. Dowsett mentioned that there was an issue regarding responsibility for payment of the water/sewer bill for the Starr St. ballfield.  He explained that some years ago, in lieu of donations, the City had evidently decided to provide "free" water and sewer to the Little League.  Following a brief discussion, it was determined that the issue be turned over to the Finance and Administration Committee for review.   Mr. Dowsett noted that a letter had been sent to the Isaak Walton League regarding the placement of a gate to prevent unauthorized trespassing on their property.  The gate would be located just south of the lagoon at the Wastewater Treatment Plant.  Councilor Moore mentioned that the dump site had been cleaned up by the Solid Waste District, and Dahl Disposal had donated the cleanup dump fee.  Councilor Woodruff asked if Mr. Dowsett had spoken with Mr. Dahl regarding the waste disposal at the City's parks.  He indicated that he had not yet done so, but would follow up on the request.
    C.    City Attorney Report:  Mr. Hammersley noted that the two pending litigation issues, in regards to Handy Haven and Sagaitis, were a matter of public record so an executive session would not be required.  Judge Branford had signed a judgment against Handy Haven, although there may be a problem collecting due to bankruptcy problems.  However, if a pending sale of property in Canby went through, there may be enough proceeds to pay it off.  At least the City had a judgment and some better prospect of collecting.  In regards to the Sagaitis lawsuit, Mr. Hammersley had filed for attorney fees. The court hearing was scheduled for August 13 at 4:00 p.m., although he was not certain if the attorney fees would be handled on that date or not. Mr. Hammersley noted that he was still reviewing the Development Code revisions and hoped to have the document ready by the September meeting.
    D.    Public Works Director:  Mr. McClintock suggested that if the Council were interested in the I & I work being done at the Golf Course, they had better check it out the following morning as the project was near completion.  Once this part of the project was done, a subcontractor would be grouting the laterals.  He reported that the Norwood diversion project was completed, and the crew was now in the process of widening and brushcutting in preparation for tearing up the road for storm system work and repaving.  Mr. McClintock noted that he had obtained a good price for culvert for the WURA Red Ditch project. He gave a brief report on the recycled paint project, the OYCC crew's work on the Crestline trails, and the Baptist Church volunteer project which would be finishing up on Saturday.
    E.    City Engineer Report:  The Council considered the written report contained in the packet materials.
    F.    City Planner Report:  The Council considered the written report contained in the packet materials.
7.    COMMITTEE REPORTS:
    A.    Finance and Administration:  Councilor Woodruff noted that the Committee had not had a meeting in July.
    B.    Infrastructure Committee:  Councilor Moore reported that the Committee had a lengthy discussion regarding sewer charges.  He mentioned the apparent lack of citizen involvement in the public hearing process.
    At 7:55 p.m. Mayor Lehmann opened the continued Public Hearing on the proposed sewer rate increase.  Art Cvar addressed the Council, asking them to consider conservation an important part of the sewer rate, as the rates are based on water consumption.  The Council also noted receipt of a letter from Dan Sagaitis.  Councilor Moore indicated that the recommendation from the Infrastructure Committee was to continue the public hearing to the September 6 Council meeting.  In addition to allowing for additional public input, the Infrastructure Committee was in the process of discussing a recommendation that the City continue with its current methodology but also look at extending the base rate to multifamily units.  Councilor Moore then moved to continue the public hearing to September 6, 2001 at 8:00 p.m.  Councilor Welch seconded, and the motion carried unanimously on a voice vote.
    C.        Parks and Recreation:  Mayor Lehmann noted that the Committee had not had a meeting in July.
8.    CONSENT CALENDAR:  The Council considered the following items:  City Attorney bill and City Engineer bill.  Councilor Moore moved to approve the Consent Calendar, holding out the City Engineer bill.  Councilor Welch seconded, and the motion carried unanimously on a voice vote.  Councilor Moore asked that Public Works Director McClintock review and approve future City Engineer bills prior to Council approval.  Councilor Moore then moved to approve the bill, Councilor Welch seconded, and the motion carried unanimously on a voice vote.
9.    CORRESPONDENCE:  The Council considered the letter of interest from George MacGregor regarding the vacancy on the Council.  Mayor Lehmann moved to appoint Mr. MacGregor until the votes were tabulated and the abstract accepted for the November election.  The motion died for lack of a second.  A brief discussion ensued, no further action was taken.
10.    INFORMATION ITEMS:  The Council considered the following items:  Financial memo; Senior Center Minutes from July 16, 2001; Letter re EPA Compliance Agreement; Letter re Proposed Gate for Isaak Walton League Property; Library Board Meeting Minutes; and Friends of the Library Board correspondence.  No action was required.
11.    PUBLIC HEARING:  Previously addressed.
12.    NEW BUSINESS: 
    A.    Request for Meeting Reschedule - Lincoln County Board of Commissioners and City Council:  Following a brief discussion, Councilor Welch moved to reschedule the meeting to October 24, 2001 as proposed.  Councilor Moore seconded, and the motion carried unanimously on a voice vote.
    B.    Request from Skatepark Committee:  Mayor Lehmann moved to have the City advertise the RFP for the skatepark, and also approve the request to allow staff to seek additional funding.  Councilor Moore seconded.  The motion carried unanimously on a voice vote.
    C.    Consideration of Ordinance re Loan Contract with OECDD:  Mr. Dowsett explained that the City has received the papers for the funding of the project.  One of the requirements for the loan was the adoption of the proposed ordinance.  Councilor Moore moved to read Ordinance No. 673 by title only for the first and second times.  Councilor Welch seconded.  The motion carried unanimously on a voice vote.  Mayor Lehmann read Ordinance No. 673 by title only for the first and second times.  Councilor Moore then moved to adopt Ordinance No. 673, Councilor Welch seconded, and the motion carried unanimously on a voice vote.
    D.    Consideration of Ordinance re Utility Billing and Collections Methodology:  Councilor Moore moved to read Ordinance No. 674 by title only for the first and second times.  Councilor Welch seconded, and the motion carried unanimously on a voice vote.  Mayor Lehmann read Ordinance No. 674 by title only for the first and second times.  Mr. Hammersley clarified that the two changes in wording were textual only and did not affect the content of the ordinance.  Councilor Moore moved to adopt Ordinance No. 674,  Councilor Welch seconded. The motion carried unanimously on a voice vote.
    E.    Consideration of Ordinance re Real Property Liens for Transient Room Tax:  Councilor Moore moved to read Ordinance No. 675 by title only for the first and second times.  Councilor Welch seconded and the motion carried unanimously on a voice vote.  Mayor Lehmann read Ordinance No. 675 by title only for the first and second times.  Councilor Moore moved to adopt Ordinance No. 675.  Councilor Woodruff seconded, and the motion carried unanimously on a voice vote.
    Mr. Hammersley noted that he was prepared to file the notification with the County Clerk in regards to the City electronic lien docket.  The County Clerk would be reviewing the process, as this will be the first electronic lien docket in Lincoln County.
13.    OLD BUSINESS:  Emergency Plan:  Councilor Welch noted that no comments had been received from Council in regards to the proposed revisions to the Emergency Plan, so he would take the current draft to the next Traffic Safety Committee meeting review and comment.  He noted that the notification to Red Cross would be in the final draft.
14.    ADJOURNMENT:  At 8:30 p.m., there being no further business to come before the Council, Councilor Moore moved to adjourn, Councilor Welch seconded, and the motion carried unanimously on a voice vote.