1. CALL TO ORDER AND ROLL CALL: Mayor Beckstead called the meeting to order at 7:00 p.m. Mayor Beckstead and Councilors Abbott, Woodruff, Welch, Eder and Church answered the roll. Councilor Peterson was absent. A quorum was present.
2. CITIZEN COMMENTS AND CONCERNS: None.
3. COUNCIL COMMENTS AND CONCERNS: Councilor Church indicated he had been attending Youth Center meetings as the Council’s liaison, but would like to resign. He hoped that Mayor Beckstead might be able to take his place. Mayor Beckstead stated that he would be ethically prohibited from providing formal legal advice to the Youth Center, due to his position as Mayor, but he would try to attend the meetings. Councilor Church noted that the Youth Center would like to have a dance on Friday, March 21 and was hoping to utilize the Senior Center for the function. He asked Councilor Woodruff as the Senior Center liaison to ask if the facility was available. She responded that the pinochle club traditionally meets there on Friday night, but she would ask if they could make an exception or meet at another facility. Mayor Beckstead noted that he had attended a board meeting of the YMCA, and they are interested in expanding services to south county, and offered to assist in youth activities by sponsoring dances and other activities. Councilor Abbott indicated that he would be giving a presentation at the next school board meeting and suggested the Council consider sending a letter to support keeping the school in South County, as well as a letter to the legislature to support Senate Bill 283, which will allow smaller communities to support school districts. Consensus of the Council was favorable. Ms. Leonard will coordinate with Councilor Abbott for the drafting of the letters.
4. MINUTES: The Council considered the minutes from the February 6, 2003 Council meeting. Councilor Welch moved to approve the minutes as presented. Councilor Eder seconded. Councilor Woodruff noted a typographical error correction on page 5, as it was Ms. Vreeland, not Mr. Vreeland on the Senior Board. The motion then carried unanimously on a voice vote.
5. STAFF REPORTS:
   A. Sheriff: Deputy Brady Endicott addressed the Council, noting that in the future he will be able to attend the Council meetings. Councilor Welch asked about the number of speeding tickets issued, noting that this had been low in the past. Officer Endicott responded that part of community policing is giving verbal warnings, but those may be reduced in the future. He then reviewed the recent activities in the department. Councilor Welch mentioned a walkthrough of the tsunami warning system on April 2, and Officer Endicott responded that he would be participating. The Citizen’s Patrol would also be participating. Councilor Church asked how the volunteer patrol is working out, and Officer Endicott indicated that he felt they were a real asset. The Sheriff’s office has provided them with safety vests, lights and cameras, and he noted that they had patrolled on 26 days of the previous month. In response to a query from Councilor Abbott, Officer Endicott noted that they were still experiencing computer problems, so the enhanced report was not yet available.
   B. City Administrator: Ms. Leonard reported that Commissioners Balen and Hauser had expressed interest in serving for another term on the Planning Commission. No action was necessary, as the Council had made a motion at the last regular meeting to automatically reappoint current incumbents to another term if they so desired. There were two letters of interest in the supplemental packet materials, one from Debbie Phillips for the Parks Committee, and one from Margaret Mare’ for the Senior Board. Councilor Abbott moved to accept both applications. Mayor Beckstead seconded, and the motion carried unanimously on a voice vote. Ms. Leonard suggested that the Council consider the Youth position on the Parks Committee as either a youth or youth advocate position. Following a brief discussion, consensus of the Council was to wait and see if any youth were willing to serve. Ms. Leonard stated that the Skatepark soils analysis had been completed, and the report should be forthcoming. The next step in the process is to identify and mark the trees to be removed. These will be approved by Ms. Leonard, Mr. McClintock, Mr. Lewis and Ms. Woodruff prior to removal. Councilor Church indicated someone had asked if a small plot of ground at the Crestline Park property could be set aside for a community garden. Councilor Woodruff noted that there might be other City property that would be more appropriate, and Councilor Church said he would direct the person to come to the next Parks Committee meeting to further discuss the issue. Ms. Leonard noted that copies of the proposed budget for FY 2003-2004 were available for the public to review at City Hall and the Library. The budget meeting was scheduled for March 25 at 1:30 p.m., with a possible carryover to March 27 at 1:30 p.m. if need be. There is still one opening on the Budget Committee, and she urged any interested citizen to apply.
   C. City Attorney: Mr. Hammersley noted he had one item for the Executive Session pursuant to ORS 192.660(1)(h), to consult with counsel regarding current litigation or litigation likely to be filed. The Council recessed into executive session at 7:45 p.m. The regular Council meeting was reconvened at 7:50 p.m. No action was necessary.
   D. Public Works Director: Mr. McClintock reported that the Raw Water Project was progressing well. The Oregon Health Department had made a recent visit to the water plant, and had made only two minor recommendations. Overall, the department received high marks, which Mr. McClintock directly attributed to the plant operators’ work. Louise Birk from OECDD had also visited the plant and the work being done on the Raw Water Project, and appeared well-pleased with the progress. Mr. McClintock also showed her the Lint Slough Bridge waterline and the lagoon seepage area at the Wastewater Plant, and it was possible that she would be able to assist in those projects as well. Regarding the Southworth Creek permit and extension, Mr. McClintock indicated that the permit had been sent to Dyer for review. The next step in the process was to have a surveyor locate the exact location of the point of diversion, and Mr. McClintock indicated that this will probably be done the following week. Public Works was in the process of completing the annual flushing of the water system, and Mr. McClintock reported that there had been no problems so far, though a couple of leaks had been located and repaired, including the one on Highway 101 near the corner of Willow, and two at the middle school. The final item in his report was the testing of the emergency electrical system at City Hall, which had passed with no problems.
6. COMMITTEE REPORTS:
   A. Finance and Administration: Councilor Woodruff noted the draft minutes were in the packet materials, and the recommendation from the Committee was on the agenda in regard to the Council Rules.
   B. Infrastructure Planning: Councilor Welch indicated their meeting had been held the previous Tuesday, so no minutes were yet available. The Committee had discussed the importance of securing the water rights on Southworth Creek. Councilor Welch also gave a vote of thanks to the Public Works Department for now having four certified Wastewater Treatment Plant operators, which was a vast improvement over the previous status of the department.
   C. Parks & Recreation: Councilor Woodruff indicated that the committee had met the previous Tuesday, and had reviewed the parks maintenance proposal. She will email the proposed changes to Ms. Leonard to incorporate into the contract.
   D. Traffic & Public Safety: Councilor Welch noted his participation in the County Emergency Planning Committee, and indicated that they were in the process of trying to form a South Lincoln County group consisting of Central Oregon Coast Fire and Rescue District, Yachats Rural Fire Protection District, City of Waldport and City of Yachats to address disaster preparedness. He also mentioned that there would be a walkthrough on April 2 of the tsunami emergency system.
   E. Economic Development Committee: Ms. Leonard noted that there had been a recent open house and joint Council/Committee meeting, and a written report from Mr. Lewis would be forthcoming.
   Mayor Beckstead noted that in his capacity as Council liaison he had attended the Chamber meeting that morning. He reported that there was intensifying interest for developing a plan for sustained economic development, especially in coordinating the South County entities such as the cities of Waldport and Yachats, the Chamber, the Port of Alsea, etc. Councilor Welch indicated that he would be attending the tri-county Economic Development conference in Albany, and would try to bring back as much detail as possible. He asked that this be an agenda item for the next meeting. Mayor Beckstead will also mention the need for a Chamber member for the Economic Development Committee at the next Chamber meeting. Councilor Woodruff noted an upcoming ODDA meeting in April in McMinnville, and Councilor Welch moved to authorize the City to sponsor a member of the business community to attend that meeting. Councilor Abbott seconded. The motion carried unanimously on a voice vote. Mayor Beckstead indicated he would forward that information to the Chamber.
   F. Youth report: The Youth representative was not present.
7. CONSENT CALENDAR: The Council considered the City Engineer bill and the City Attorney bill. Councilor Welch moved to approve the Consent Calendar, Councilor Church seconded, and the motion carried unanimously on a voice vote.
8. CORRESPONDENCE: None.
9. INFORMATIONAL ITEMS: The Council considered the Library Board minutes and the Grant Status Report. No action was necessary.
   Councilor Welch stated that he had a significant concern regarding removing language about the discharge of firearms in the nuisance ordinance, as had been discussed by the Finance and Administration Committee. Councilor Abbott responded that the Committee was looking at ways of simplifying the ordinance where there are overlying regulations which also address the issue at the federal, state and county level. A brief discussion ensued. No action was taken.
10. PUBLIC HEARING: At 8:23 p.m. Mayor Beckstead opened the public hearing on the proposed LID for the Golf Course Water Reclamation Project. Ms. Leonard explained that even though this was an LID of one property owner, the process still needed to be followed. Mr. Campbell was unable to attend the meeting, but he had indicated to Ms. Leonard that the project and the formation of the LID had his full support. There were no other comments. Mayor Beckstead closed the hearing at 8:24 p.m.
11. NEW BUSINESS:
   A. Consideration of Resolution Authorizing Interim Financing for South Waldport Sewer Improvements: Ms. Leonard noted that last meeting the Council had adopted a resolution to authorize Regional Financial Advisors to help secure financing. The resolution now before the Council was created by the bond counsel to give authority to enter into whatever finance package is determined to be the best for the City. Ms. Leonard noted that DEQ offered interim financing, and it appeared that this may be the way the City should go. However, the resolution allows for whatever financing is available, and her recommendation was to proceed with the adoption of the resolution. Councilor Woodruff asked if there were any implications for the ratepayers, and Ms. Leonard responded that this was only the interim financing, it did not impact the final project costs. She also noted that originally it had been anticipated that the City would need to secure interim financing for the entire project costs but it appears that the grant funding can also be used for interim financing, which dramatically reduces the amount of interim financing that needs to be secured. Councilor Welch moved to approve Resolution No. 1028. Councilor Abbott seconded, and the motion carried unanimously on a voice vote.
   B. Consideration of Resolution Authorizing and Approving the Terms of a $100,000 Loan from Umpqua Bank to Finance Raw Water Project: Ms. Leonard explained the actual loan documents have not yet been received, and suggested that the Council approve the resolution and give authority to approve the loan documents once they have been received. The City Attorney will review those documents prior to any signature. Councilor Welch moved to approve Resolution No. 1029 and give authority to sign the loan documents once they have been received and reviewed. Councilor Church seconded, and the motion carried unanimously on a voice vote.
   C. Consideration of USDA Grant/Loan Agreements: Ms. Leonard explained the South Sewer Project and Golf Course Water Reclamation Project grant/loan agreements, and indicated that the Council needed to approve the resolutions and accompanying agreements. Councilor Church moved to approve Resolutions 1030 and 1031 and their accompanying agreements. Councilor Welch seconded, and the motion carried unanimously on a voice vote.
   D. Consideration of Proposed Changes to Council Rules: Councilor Abbott explained the proposed changes, noting that one part was to simplify the basic agenda by changing "Old Business/New Business" to "Discussion/Action Items". The second change was to help clarify agenda items by requiring a description of the issue and any suggested action. Discussion ensued. It was noted that the agenda cover sheet should only be required for the Discussion/Action items, rather than for each category of the agenda. Councilor Abbott moved to approve Resolution No. 1032 with that amendment. Councilor Welch seconded, and the motion carried unanimously on a voice vote.
   E. Continuation of CAO Job Description Discussion: Following a brief discussion, consensus of the Council was to continue with the rewrites to the job description. The Council can consider the clean draft at the next Council meeting and then talk about adopting the job description as well as a title recommendation.
   F. Other Issues: Councilor Welch noted that the Council had approved the contract with K & D Enterprises for parks maintenance, contingent upon approval of the Parks Committee. Ms. Leonard indicated that the Parks Committee had made a couple minor changes to the contract, and once those have been made, the contract will be signed.
12. OLD BUSINESS: None.
13. EXECUTIVE SESSION:
    A. Pursuant to ORS 192.660(1)(h) - Litigation: Previously addressed.
    B. Pursuant to ORS 192.660(1)(e) - Real Property Negotiations: At 9:00 p.m. the Council recessed into Executive Session, pursuant to ORS 192.660(1)(e), to conduction deliberations with persons designated by the governing body to negotiate real property transactions. The Council reserved the right to return to open session.
14.  ACTIONS, IF ANY, FROM EXECUTIVE SESSION:  None.
15. ADJOURNMENT: At 9:29 p.m., there being no further business to come before the Council, Councilor Welch moved to adjourn. Mayor Beckstead seconded, and the motion carried unanimously on a voice vote.

MARCH 25, 2003
(BUDGET COMMITTEE MEETING MINUTES)

1. CALL TO ORDER AND ROLL CALL: Mayor Beckstead called the meeting to order at 1:40 p.m. Mayor Beckstead, Councilmembers Abbott, Peterson, Church, Welch and Woodruff and Laypersons Canfield, Rivers and Tryon answered the roll. Councilor Eder and Laypersons Hamilton, Campbell and Gordon were absent. Ms. Leonard noted that one citizen vacancy had not been filled, so the quorum requirements were met. Mayor Beckstead thanked the citizen members for their participation.
    Mayor Beckstead asked if there were any questions regarding the process. None were raised. Councilor Church complimented staff on the budget package.
2. SELECT BUDGET CHAIR: Mr. Welch moved to appoint Mr. Beckstead as the Budget Committee Chair. Ms. Tryon seconded. There were no other nominations. The motion then carried unanimously on a voice vote.
    Ms. Leonard gave a brief outline of the budget hearing process, suggesting that the various sections of the budget message be considered at the time the fund is being discussed. She also noted that the meeting would be recessed at 2:05 p.m. and again at 2:10 p.m. in order to hold the Road District #3 and Urban Renewal Agency budget hearings. These could be opened and then recessed to continue at a later time if the Budget Committee so desired.
3. PUBLIC HEARING(S):
    At 2:00 p.m., Chair Beckstead opened the Public Hearings on the City of Waldport Budget for FY 2003-2004, and State Revenue Sharing.
    Ms. Leonard reminded the Budget Committee that the workbook is the budget document with estimates only. It was a working document and may contain minor errors and oversights, as well as any changes and amendments that the Committee may want to make. She indicated she was open to as broad or as detailed a discussion as the Committee wished. She then read the overall financial outlook portion of the budget message.
    A brief discussion ensued regarding PERS. Staff reported that, due to the number of retirees vs the number of employees, the City would not be immediately affected by the new changes in the PERS contributions.
    Mr. Welch noted that the City had not been aggressive in funding stormwater treatment, though it had talked about for a couple of years. He wondered if tests had been done by the State to determine the level of pollutants reaching the coastal waters, and whether installation of gutters and curbs would actually exacerbate the problem by allowing pollutants to reach the waterways more quickly. Mr. McClintock indicated that sometime in the next ten years or so the City will probably be required to treat stormwater.
    At 2:05 p.m. the meeting was recessed to take up the Road District #3 budget and the Urban Renewal Agency budget.
    At 2:12 p.m. the meeting was reconvened.
    General Fund: Discussion ensued regarding the beginning working capital and sources of revenue. Ms. Leonard confirmed that business license revenues and room tax revenues were very conservative numbers and could probably be increased. Mr. Abbott moved to increase both line items by $2000 each, with the total increase of $4000 to be put in contingency. Mr. Church seconded, and the motion carried unanimously on a voice vote.
    Discussion ensued regarding the General Fund Administration Department. Ms. Leonard indicated that the action to be considered was the community requests for contributions. There were three requests distributed in the supplemental packet materials: Chamber of Commerce for $4000; Dispute Resolution for $500; and Meals On Wheels for $300. Last year, the Budget Committee had decided to allocate 1% of room tax funds or $3000, whichever was greater, to the Chamber of Commerce, and to not fund any other requests. Ms. Woodruff moved to leave the contributions the same as the previous year, Mr. Welch seconded. Discussion ensued. Mr. Beckstead asked about the allocations for the Oregon Mayors Association dues, training and travel, totaling $600. He indicated that he planned on paying his own dues and expenses this year. Ms. Woodruff noted that the Meals on Wheels program uses the Senior Center free of charge, and Ms. Tryon wondered if such in-kind donations could be identified in the budget so that they could be recognized as donations. Mr. Abbott suggested setting up a city grant fund for such requests that would be separate from the budget process, with a subcommittee that could review and make recommendations for funding. Discussion ensued. Ms. Rivers suggested that this might be an idea to set up prior to the next budget process. Mr. Welch amended the motion to include an allocation of $300 for Meals on Wheels, with the money to come from Contingency. Mr. Canfield seconded. The amendment carried, with Mr. Abbott, Mr. Beckstead, Mr. Canfield, Mr. Church, Mr. Peterson, Ms. Rivers, Ms. Tryon and Mr. Welch voting "Aye", Ms. Woodruff voting "Nay". Mr. Beckstead moved to amend the motion to include a contribution of $200 to Dispute Resolution, with the monies to come from Contingency. Mr. Peterson seconded. The amendment carried, with Mr. Abbott, Mr. Beckstead, Mr. Canfield, Mr. Church, Mr. Peterson, Ms. Rivers, Ms. Tryon and Mr. Welch voting "Aye", Ms. Woodruff voting "Nay". The main motion, as amended, then carried unanimously on a voice vote. Mr. Beckstead moved to delete $100 under OR Mayors Association and $500 from Training and Travel, and place those monies in Contingency. Ms. Rivers seconded. Discussion ensued regarding whether taking the allocation out of the line items would cause problems in the future. Mr. Beckstead stated for the record that he intended to pay the membership fee and the travel & training expenses for the Oregon Mayors Association with his own funds, thereby freeing up those funds for other uses if necessary. He then withdrew his motion, and Ms. Rivers withdrew her second.
    Discussion ensued regarding replacement of the copier. Mr. Abbott noted that estimates for copiers actually run about $11,000, with maintenance around $1200 per year, so the $5000 allocation might be a little small. Discussion ensued regarding whether to repair the old copier, or buy or lease a new one. Ms. Tryon moved to proceed with a lease and no service contract, and to move $2000 back to Contingency from the $5000 allocation. Mr. Welch seconded, and the motion carried unanimously on a voice vote.
    At 3:13 p.m. the Council took a break. The meeting was reconvened at 3:25 p.m.
    Discussion ensued regarding the rest of the departments in the General Fund, and the Special Funds. No further changes were proposed for the budget document.
    The meeting was recessed at 4:20 p.m. to take up the continued Urban Renewal Budget Hearing. The meeting was reconvened at 4:33 p.m.
    Discussion ensued regarding the Public Works Fund and the Street Fund. No changes were proposed to the budget.
    At 5:05 p.m., the Budget committee took a five-minute break. Mr. Peterson left. At 5:10 p.m., the meeting was reconvened.
    Regarding the Stormwater Fund, Mr. Church moved to drop this from future budgets until such time as it has to be addressed. Mr. Welch seconded. Ms. Rivers informed the Budget Committee of the Port of Alsea’s concerns about water quality, indicating that they were unsure whether to be proactive or reactive at this point. Their main concern was fecal coliform, which may be addressed by sewering the properties along Highway 34. This would need to be done before any commercial shellfish operations could be successful in the bay. The motion then carried unanimously on a voice vote. Ms. Leonard and Ms. Rivers will be keeping an eye out for any funding that could be applied to a rate study.
    Discussion ensued regarding the Water and Sewer Funds. Questions were asked about the allocation for internal cost recovery, capital depreciation, projected equipment replacement, and the projected rates for the coming year. No changes were proposed to the budget document. Mr. Canfield had to leave at 5:50 p.m. It was suggested that Mr. McClintock look into whether the City could purchase pipe for the South Sewer Project before the bid process, as the costs are only going to continue to increase.
    Noting that followup information would be provided by staff regarding the internal cost recovery questions, Councilor Welch moved to accept the proposed budget as amended and recommend its adoption to the Waldport City Council. Ms. Tryon seconded, and the motion carried unanimously on a voice vote. Mr. Welch moved to approve taxes for Fiscal Year 2003-2004 at the rate of 2.3328 per $1000 of assessed value for operating purposes, and in the amount of $146,564 for the payment of bond principal and interest. Ms. Tryon seconded, and the motion carried unanimously on a voice vote. Mr. Welch then moved to approve the State Revenue Sharing and recommend its adoption to the City Council. Ms. Tryon seconded, and the motion carried unanimously on a voice vote.
4. ADJOURNMENT: At 6:05 p.m., there being no further business to come before the Budget Committee, Mr. Welch moved to adjourn. Mr. Beckstead seconded, and the motion carried unanimously on a voice vote.

MARCH 25, 2003
(ROAD DISTRICT #3 BUDGET MEETING MINUTES)