1. CALL TO ORDER AND ROLL CALL: Mayor Welch called the meeting to order at 2:00 p.m. Mayor Welch and Councilors Kelly, Hanes, Woodruff, Campbell and Cutter answered the roll. A quorum was present.
2. CITIZEN COMMENTS AND CONCERNS: None.
3. COUNCIL COMMENTS AND CONCERNS: Councilor Kelly noted that the plantings along Highway 101 were looking quite nice. Ms. Leonard mentioned that the contractor has been taking care of the weeding. Councilor Cutter stated that the lines were fading on Cedar Street and suggested that the weeds be cut first on the east side so that the line can be done more clearly.
4. MINUTES: The Council considered the minutes from the May 5 Budget Committee meeting and the May 14 Council meeting. Councilor Kelly moved to approve the minutes as presented. Mayor Welch seconded, and the motion carried unanimously on a voice vote.
    Hearing no objection, Mayor Welch moved Item 11 C up on the agenda to accommodate Mr. Dahl. Nic Dahl provided a short video on recycling, and then addressed the Council regarding the requested rate increase. He explained that part of the need for the increase was to offset the rising costs of recycling. A brief discussion ensued. Councilor Campbell noted that the increase was still well below what they could have asked for under the Solid Waste agreement. Councilor Kelly moved to approve the requested rate increase. Councilor Cutter seconded, and the motion carried unanimously on a voice vote. It was determined that the new rate will go into effect August 1, to allow sufficient time for informing customers.
    Hearing no objection, Mayor Welch moved Item 11 E up on the agenda to accommodate the Hasletts. Mayor Welch asked about franchise fees in general and Ms. Leonard explained that most utility franchise fee rates are set by the authority they work under, and are set at the maximum amount allowed. The exception to this is the solid waste franchise, as they have no higher authority overseeing them. Mr. Haslett noted that they have about 900 customers, with about 420 or so within the City limits. He had no plans to upgrade the service from analog to digital, claiming that many of his customers had older television sets and would not be capable of receiving the digital signals without buying new equipment. He also stated that they do not pass the franchise fee on to their customers. Councilor Kelly asked, if that is the case, how would a reduction in the franchise fee benefit the customer? A lengthy discussion ensued regarding the quality of service and lack of upgrades, the rates being charged, and whether the Council should be involved in increasing a private business’ profit margin. Councilor Cutter moved to reduce the franchise fee to 3% for the next year, effective as of July 1, and asked that the Hasletts come back at the end of that time to show they’ve made an effort to address the expressed concerns. Councilor Kelly seconded. The motion failed on a tie vote, with Mayor Welch and Councilors Kelly and Cutter voting "Aye", Councilors Hanes, Woodruff and Campbell voting "Nay".
5. CORRESPONDENCE: None.
6. PUBLIC HEARING(S):
    A. State Revenue Sharing: Mayor Welch opened the Public Hearing on State Revenue Sharing. There were no comments. Mayor Welch then closed the Public Hearing.
    B. City of Waldport Budget for FY 2009-2010: Mayor Welch opened the Public Hearing on the City of Waldport Budget. There were no comments. Mayor Welch then closed the Public Hearing.
    At 3:23 p.m., the Council recessed to take up the Road District #3 meeting and the Urban Renewal meeting.
    At 3:30 p.m., the Council meeting was resumed.
7. CITY MANAGER REPORT: Ms. Leonard noted that there was a report on the activities of the Code Compliance Officer available in the Council Chambers. The City did not get the requested funding for the Starr/Norwood/Highway 101 intersection, but we are still proceeding with the project. Bid opening is scheduled for July 2. The new banners have been put up in the downtown area, and Ms. Leonard noted that thanks were in order to Pioneer Telephone for the installation, which took an entire day. The poles on Highway 34 require new brackets, so Public Works will be renting a lift to do those banners. Councilor Woodruff asked about the budgetary breakout of the water and sewer funds, and Ms. Leonard indicated that she would be suggesting that a committee be formed to look at rate restructuring in the near future.
8. COMMITTEE REPORTS: None.
9. INFORMATIONAL ITEMS: The Council considered the Library minutes and Planning Commission minutes from April, 2009. No action was necessary.
10. CONSENT CALENDAR: The Council considered the Consent Calendar, consisting of the Beachcomber Days Proclamation. Councilor Woodruff moved to approve the Consent Calendar. Councilor Campbell seconded, and the motion carried unanimously on a voice vote.
11. DISCUSSION/ACTION ITEMS:
    A. Consideration of Budget Resolutions:
        1. Amending the Budget for FY 2008-2009: Councilor Cutter moved to approve Resolution No. 1132. Councilor Kelly seconded, and the motion carried unanimously on a voice vote.
        2. Amending Resolution 1082 and Establishing Rate Structure for High-Volume Commercial Water Users: Ms. Leonard explained that this resolution memorialized the Council decision made at the October 2008 meeting to establish a rate structure for high-volume irrigation customers. Councilor Campbell noted that he would be abstaining from the vote. Councilor Cutter moved to approve Resolution No. 1133. Councilor Hanes seconded, and the motion carried unanimously on a voice vote, with Mayor Welch and Councilors Kelly, Hanes, Woodruff and Cutter voting "Aye", Councilor Campbell abstaining. Mayor Welch mentioned that it would be good to have a review for low volume users, and Ms. Leonard responded that this could be part of the future rate restructuring discussion.
        3. Adjusting Water and Sewer Rates: Ms. Leonard informed the Council that the most recent information set the CCI at 5% rather than the 4% estimated at the time the budget was drafted. She noted that as a rate review was going to be done later on in the year, she was comfortable with not raising the percentage. Following a brief discussion, Councilor Cutter moved to amend Resolution No. 1134 to change the rate to 5% and to approve the resolution as amended. Councilor Campbell seconded, and the motion carried　unanimously on a voice vote.
        4. Establishing a Reserve Fund for Downtown Revitalization: Councilor Woodruff asked about what would be done with the funds. Ms. Leonard explained that this could be a continuation of the Urban Renewal District #1 projects and the Economic Revitalization efforts. Councilor Cutter moved to approve Resolution 1135. Councilor Woodruff seconded, and the motion carried unanimously on a voice vote.
        5. State Revenue Sharing: Councilor Cutter moved to approve Resolution 1136. Councilor Hanes seconded, and the motion carried unanimously on a voice vote.
        6. Adopting a Budget and Making Appropriations for FY 2009-2010: Ms. Leonard reminded the Council that the Budget Committee had set a deadline of July for charitable contributions. The Council could just wait until that time, or could take action at this meeting. A lengthy discussion ensued, regarding the agencies requesting funds and whether the City Council should be making decisions about such allocations. Councilor Kelly moved to eliminate the 20% of liquor taxes which had been set aside by Budget Committee action, and to return those funds to Contingency. Councilor Cutter seconded. The motion carried, with Councilors Kelly, Hanes, Woodruff and Cutter voting "Aye", Mayor Welch and Councilor Campbell voting "Nay". Councilor Cutter asked if any consideration had been given to moving City employees and facilities out of the tsunami zone, and noted he would like to see a long-term plan to remove critical services from areas that are prone to natural disaster. Councilor Kelly noted that there are some buildings in the Industrial Park which may become available, and Ms. Leonard indicated that the City would like at some point to move the Public Works department and equipment to the Crestline area. The current location is not only in the tsunami zone but is also prone to flooding. Councilor Woodruff asked about records and how they are being kept and Ms. Leonard responded that staff is currently working on preserving records in electronic form which can then be stored off-site. No further changes were proposed to the budget. Councilor Campbell moved to approve Resolution 1137 as amended. Councilor Woodruff seconded, and the motion carried unanimously on a voice vote.
    B. Special City Allotment Resolution: Ms. Leonard explained that each year the City can apply for $25,000 from the State for special projects that meet certain criteria. The City is asking for the money to improve Willow Street near the recent slide. Councilor Kelly asked if there would be sufficient width to allow for a pedestrian walkway on one side, and Ms. Leonard indicated she would check on this. Councilor Kelly moved to approve Resolution 1138. Councilor Cutter seconded, and the motion carried　unanimously on a voice vote. Ms. Leonard noted that if the City did not receive the grant, the project would not be done this year.
    C. Dahl Disposal Fee Adjustment: Previously addressed.
    D. Submissions For "If I Were Mayor" Contest: Mayor Welch moved to consider Dylan McDowell as the winner of the contest. Councilor Kelly seconded. Councilor Woodruff mentioned that it was somewhat disheartening to see the level of writing and adherence to rules in some of the submissions. The motion then carried unanimously on a voice vote. Mayor Welch indicated that he would contact Mr. McDowell to see if he could be present at the next Council meeting. Councilor Cutter and City Manager Leonard will work out the details of the laptop purchase.
    E. Alsea River Cable TV Request: Previously addressed.
    F. Other Issues: Mayor Welch mentioned that he had been contacted by the chairman of the Yachats Clinic Board to ascertain if the City could assist them in securing public tax funding from the Community Health District of Lincoln County. Mayor Welch asked if the Council would be amenable to writing a letter of support. Following a brief discussion, it was determined that Mayor Welch would ask that they come to a meeting and share information with the Council on the request.
    Councilor Campbell asked about the building on the corner of Highway 34 and Cedar Street, and Ms. Leonard indicated that they were currently working with the owner to address the problems.
12. ADJOURNMENT: At 4:35 p.m., there being no further business to come before the Council, the meeting was adjourned.