Dunes City Council     M I N U T E S    Regular Meeting -December 13, 2007- 7:00 p.m..     Printable rtf file

City Hall – 82877 Spruce Street

Westlake , Oregon   97439

 Councilors Present:   Mayor Eric Hauptman, Councilor Richard Koehler, Councilor John Scott, Councilor Susie Navetta, Councilor  Peter Howison, Councilor Jerry Curran, Councilor Bob Petersdorf.

Others Present:   Staff Jeannie LaRocco and several members of the community.

I.        CALL TO ORDER

Mayor Eric Hauptman called the Dunes City Council Regular Meeting to order at 7:00 p.m.

2.      COUNCILORS JOINED IN THE PLEDGE OF ALLEGIANCE

3.      MAYOR’S ADDRESS   Mayor Eric Hauptman

Mayor Eric Hauptman read an address asking citizens to be patient with the office bringing issues up-to-date.  He thanked new staff Lisa O'Callaghan and Maria McConnell.  Also, the auditing firm that was hired to conduct the annual audit of Dunes City is in breach of contract and has sent a letter of declination to proceed with the audit.  Dunes City is currently seeking a new auditing firm to complete the audit.   

A special thank you to Councilors Richard Koehler, Susie Navetta, Peter Howison, and Bob Petersdorf who kept the city in operation.  A special thank you also to the citizens, who have donated countless hours to help the city maintain continuity; Debbie Pasternak, April Dumas, John Stead, Jo Owen, Ralph Farnsworth, Mark Chandler, Lee Riechel, Steve Hager, and to Del Riesenhuber who is a CPA and has donated countless hours to get the city books in order in preparation for an audit.  

Two committees are being formed to assist the city.  A Revenue Search Committee is being developed to keep monies coming in to the city.  There are concerns regarding the timber revenue monies coming to an end.  The second committee is a Government Liaison Committee.  Dunes City needs to connect with government officials.  Dunes City is for the citizens of this city/community and is predominately a volunteer community.  

4.      WATER PERMIT EXTENSION (Informational)  

A special thank you to John Stead regarding the water permit extension.  The water permit extension application was sitting in Dunes City Office for an extended period of time and had not been processed.  John Stead volunteered his time to research and complete the application within time constraints.  Without this extension, the city would have lost certain water rights on Woahink Lake .   

5.      CONSENT AGENDA   

A.        The mayor asked for the approval of the minutes of November 15, 2007 , and October 11, 2007 .  Councilor Peter Howison mentioned that there was a correction for the minutes of November 15, 2007 .   

B.        Bills of the Session November 9, 2007 , through December 6, 2007 , $25,839.21.  Councilor John Scott asked that the miscellaneous reimbursement items be listed specifically instead of lumped together.   

C.        Holiday Office Calendar for office closure and paid holidays was included.  

D.        Committee Vacancies:  The Site Review Committee vacancy applicant is Deborah Pasternak; and Planning Commission applications are Ken Platt and Troy Ronning.  

Councilor Peter Howison made a motion to accept the Consent Agenda minus the one Bill of the Session and the minutes from November 15, 2007 , meeting.  Susie Navetta seconded the motion.  Motion carried.  Discussion:  Councilor Bob Petersdorf inquired whose terms were set to expire on the Site Review Committee and the Planning Commission.  Councilor Susie Navetta informed that there wasn’t a term expiration on the Site Review committee.  She went on to explain that with the approval of an ordinance, the committee return to the correct amount of people.  The Site Review Committee has been running one short for many years.  The Planning Commission vacancies are Bill Tizzard and Darlene Beckman whose terms expire at the end of 2007.   

Bills of the Session:  There is a billing from John Ely for the water tanker.  Originally he quoted $800 for a month.  After one month, the city elected to have the tanker returned as we did not need the water.  Councilor Bob Petersdorf informed Chief Buchanan at the end of October the tanker would no longer be needed.  The tanker is still parked across the street from City Hall as of this date.  Councilor Petersdorf called John Ely to inform him Dunes City no longer needed the tanker.  A motion was made at the October City Council meeting to have the tanker removed.  The basic rental fee was scheduled to be $800 with a delivery and pickup fee of $200 for $1,000.  A billing was received for $1,400.  Councilor Bob Petersdorf made a motion to inform John Ely to pick up the tanker and that we are willing to pay him $1,000.  Councilor John Scott seconded the motion.  Councilor Susie Navetta opposed.   Motion carried.   

Minutes from November 15, 2007 , on page two, the third paragraph should read $1,000 not $4,000 reimbursement from the auditors.  Councilor Peter Howison made a motion to accept the minutes of November 15, 2007 , as amended.  Councilor David Bellemore seconded the motion.  Motion carried. Councilor John Scott was absent from the November 15, 2007, meeting.  

7.      ANNOUNCEMENTS AND INFORMATION ITEMS   

Dunes City continues to look for Volunteer Firefighters and CERT trainees which are needed for Dunes City .  

8.      LEGAL SERVICES INTERVIEW SPEER HOYT PC, ATTORNEYS   

Attorneys John Wolfe and Christy Munson were present to represent Speer Hoyt PC, Attorneys.  John Wolfe stated their firm represents a number of smaller cities such as Creswell, Veneta, Junction City , Oakridge, West Fir, the Port of Siuslaw , the Heceta Water District, and are familiar with how city councils work.  They also represent other municipalities throughout the state of Oregon .  They went on to explain their experience and trainings in what is public, non-public, confidential etc.  Christy Munson explained that prior to coming to work for Speer Hoyt she worked as legal counsel for the League of Oregon Cities.  Questions were asked the attorneys by city council members.   

Councilor Bob Petersdorf inquired about LUBA appeals and asked if we would have to pay for the work to be redone.  He also mentioned Ordinances, Master Road Plans, Building Ordinances.   

NORMAN MARTIN - Citizen Norman Martin requested to speak and stated the following:   “I would like to make a comment to these people who are applying for the job.  The main controversy going on or one of the main controversies going on in the city at the moment is about land use ordinances which you know is highly different from business ordinances, etc. etc.  The comprehensive plan of Dunes City and also goals goal one through nineteen etc. etc.  They all say that the Dunes City citizens have the right to be involved in all phases of the planning of land use ordinances.  Mainly goal one but all the other goals too.  So, when you say that you can send a canned ordinance for certain things, I think that would be very difficult to do for land use because of that terminology that all citizens have the right or opportunity to be involved all phases of the planning of land use.  And I just wanted to bring that up to you because that is a big can of worms.” 

9.  REPORTS           

City Attorney Gary Darnielle presented an update on the settlement demand by Ms. Hickey.  That settlement demand was taken back/revoked by her attorney. An investigator for CCIS, Gail Fischer made an offer to Ms. Hickey to settle for $5,000, which is substantially less than what her demand was then in terms of money.  Her attorney said she wouldn't recommend that Ms. Hickey accept the offer that she would pass on that request and had no response.  The insurance agent has the ability to make an offer like that without city council action because it is the insurance company money.  Ms. Hickey will now have to change attorneys and find someone who is willing to represent her in court.   

Mayor Hauptman then asked City Attorney Gary Darnielle if he had been in touch with Ms. Hickey and he responded that he had not.  Mayor Hauptman asked if he had been in touch with her attorney, to which City Attorney Gary Darnielle responded, "once."  Gail Fischer the investigator is doing most of the communication.  The investigation is still ongoing and hasn't concluded.  When it does, the city will receive a report from CCIS regarding the merits of the claims that are made and that will give the city some guidance toward future decision.   

A.        Planning Commission - Lee Riechel reported 82-1 Expedited Land Division for Laurel Crossing that will be covered under Old Business.  The Grant ELD was approved with a number of conditions.  No land use applications that required Planning Commission action have been received.  As a result, the regular Planning Commission for December has been cancelled.  There is no action on the Montgomery property.  Pursuant to City Attorney Gary Darnielle, there are a number of deficiencies that need to be addressed, which have been provided to the applicant.  Lee Riechel will get the reported list from Hillary Dearborn, LCOG.  

D.        Road Commission:  Councilor Bob Petersdorf gave a report on the Road Commission.  The commission met on November 19, 2007 .  The work party did work on Dave Persons road as four trees came down.  The work party ditched Maple Drive road up through Laguna, then Parkway, ditched roadway to channel water.  Two danger trees on View Terrace were removed.   

A letter of resignation was received from Eric Hauptman from the road commission as he was appointed Mayor.  Troy Sathe was then appointed to fill the Road Commission vacancy.  Subsequently, it was discovered the vacant term was only for one month, so Troy Sathe reapplied.  Four residents applied for three positions.  Councilor Petersdorf went on to explain that the committee will be walking the streets in Dunes City to determine what items need to fall under the master road plan.  

E.        Conservation Committee - Sunset Cove.  A Report was compiled by David Bellemore and presented by Councilor Jerry Curran.  On November 2, 2007 , at the suggestion of Lee Riechel and with the permission of land owner Rob Ward, the conservation committee visited the Sunset Cove PUD on Clear Lake Road .  Members, Jim Rash, Carol Retzer, and
David Bellemore Chairperson and Rob Ward were present.  The purpose was to tour the development and inspect the shoreline area for ordinance compliance.  This report is of the committee's member findings.   

Most of the acreage is clear-cut down to bare earth, with mulch provided from the removed vegetation.  It appears that most of the conditions have been met, however; there is a negative effect of the extensive clearing.  There are photographs supplied from the lake and from the shoreline that show the damage done by the clear cutting.  Councilor Susie Navetta  mentioned she is appalled at the extensive vegetation removal.  It is not what was stated would be done by Rob Ward. 

F.         Site Review Committee/Grants/Police - Susie Navetta Chairperson - The trailer across the street from city hall has been flattened and is being removed.  The committee went to Mr. Watts’s property on Pacific Avenue and he agrees he is not finished.  Mr. Watts has further landscaping to do and is still working on his project.  

G.        Parks and Recreation/ Franchises - John Scott Chairperson – The committee did not have a meeting this month.  Work is finished on observation deck.  Mayor Eric Hauptman inquired who was most familiar with the amount of the grant for Parks and Recreation for cost accounting.  Councilor John Scott stated it should be noted in a previous budget.  Councilor Peter Howison stated that the information/documentation should be public information.  

H.        Community Center - Councilor Peter Howison announced that he just became engaged!!  

I.          Water Quality/Communication & Education - Councilor Richard Koehler announced that the Water Quality Committee minutes have been updated on the website.  The consensus of the committee and council is to review the duties and perhaps curtail enacting the water quality ordinance until the committee is more clear regarding the duties.  They reviewed the phosphorus education and concluded that our Don't “P” in Our Lakes sign in the stores is a long shot and best avenue is the local press and local website to inform the community.  Next newsletter will discuss the phosphorus issue.  In discussing permits, expirations and other city business, the new office staff should have a multi-year calendar with dates at their disposal.  Also a survey card was mailed out for citizen response.   

12.    LEGAL SERVICES INTERVIEW WITH MACPHERSON, GINTNER, AND DIAZ  

Peter Gintner, Layer, Newport , Oregon was present to represent the law firm of Macpherson, Gintner, and Diaz.  Mr. Gintner discussed his credentials and mentioned that he has represented Central Lincoln PUD for more than 22 years.  Councilor Peter Howison inquired regarding the writing of ordinances and also about LUBA appeal.  A great deal of time was spent on billable time and issues.   

NORMAN MARTIN – “Yes, his billing, he says he charges two fifty dollars for long distance calls.  Is that per minute or total or what?  Pete Gintner responded, "Per call."  In other words if you had a long distance call more than 8 minutes, it would cost you more than the $2.50?”  Pete Gintner responded, "It's possible."  Norman Martin, “alright, okay.”  Peter Gintner went on to explain that the amount of billable telephone calls amount to $12.00 a month.  More emails are used.   

Councilor Peter Howison mentioned that Dunes City is on the coast and that
Mr. Gintner is located on the coast, is there is benefit to be able to handle issues on the coast.  Another question is whether or not Mr. Gintner attends every meeting for Depoe Bay City Council.  Mr. Gintner's response is that early on he attends several meetings and then attends fewer as time goes on.  If it is necessary that Mr. Gintner be present at meetings then he will do so.   Further, Mr. Gintner does not charge for email.   

11.  Public Comment re:  Items not listed on the Agenda  

Norman Martin, Rio Drive , Florence  

"To Dunes City Council, December 13, 2007 , from Norman Martin, Rio Drive , Florence .   I wish this letter be included as written into the record of this DCC meeting.  1).  I have tried to obtain the minutes of DCC meetings from the web.  The latest minutes available seem to be from July 2007.  Why is this?  I ______________ read this out and you've answered the question.  Why is this?  2) The mayor has tried to impress on me that removal of tapes from city meetings is probably illegal.  I agree with the mayor.  When I attempted to listen to meeting tapes, the Mayor and other staff informed me that the tapes were missing and nobody knew where they were.  Later, in an attempt to listen to the tapes, the Mayor and staff informed me that the tapes had turned up.  Along with the tapes I was shown a CD copy of these topes tapes supposedly made by Councilor Koehler.  My questions to the council are, does the council consider the apparent removal of the tapes to be an illegal act?  What is the explanation for the disappeared tapes?  At present, we do not know that the tapes have not been altered.  What action should be taken to assure unauthorized personal not to tamper with these important city records.  You have a set of questions there in front of you."  Mayor, “Thank you Mr. Martin.”  "Alright, I'm here to hear your answers."  Mayor, “We are not going to address this at this time.  We are going to move on and if you would like to discuss it, you are more than welcome, I believe you have an appointment this coming Monday.”  Norman Martin responded, "I'm what?"  Mayor, “Don't you have an appointment Monday to review the tapes?”  Norman Martin replied, "No, I had an appointment last Monday."  Mayor, “No, I mean, but wasn't it, last week our staff was ill.  We had really literally nobody here for a couple of days which you were informed of and I believe there was an appointment for you to come in on Monday to review the tapes.”  Norman Martin stated, "There was an appointment on Tuesday…."  

Ian Chun, 82805 Lake Blvd , Westlake  

Mr. Chun presented information regarding long term planning and growth and urban boundaries with the twenty-year growth plan.  He stated that it is time for the Dunes City to meet the state mandate to meet the twenty-year buildable lands inventory.  He stated that he feels the city must review its option and upon choosing, move its boundaries.  

Dr. Wasserburg  

Dr. Wasserburg thanked Mayor and members of the city council for a well run meeting presented the Mayor with a copy of Robert's Rules of Order. 

12.    OLD BUSINESS:  

A.        Audit/Accounting Services:   

We have received one response from an auditing firm to conduct our audit, Hallis LLC.  Counselor Peter Howison inquired if we had contacted this firm.  Mayor Eric Hauptman responded by informing the council that he has asked Del Riesenhuber, CPA who is a Dunes City resident, to speak with Hallis, LLC.  The Mayor has asked Mr. Riesenhuber to make a recommendation based on his findings.  The city has received an extension from the Secretary of State for the annual audit.  The extension is good until June 30, 2008 .  The former CPA firm Merina & Company LLP, withdrew from the audit stating that they were having difficulty getting the information they needed.  This firm also mentioned that the audit would be too costly for them as the information was not readily available when staff left.  Another CPA firm from Coos Bay indicated that they may be interested in the audit as they have performed audits for Dunes City in prior years.   

Question from Dr. Wasserburg inquiring what the council is doing to prepare for the audit to enable the new auditors to perform their audit without problems.  Mayor Hauptman informed that he has hired a consultant to help reconcile the bank accounts for the entire past year and will bring the records up to audit condition.  Currently the city is using Quicken and will switch over to Quick Books.  Current program in place for the city does not have a payroll module.   

13.    NEW BUSINESS:  

A.     Road Commission -  Councilor Bob Petersdorf, Road Commissioner, stated the recommendation from the commission is to reappoint Linda Lauck, George McKenzie, and Troy Sathe as they have the most experience.  There is one more application from Jo Owen and the application would be placed in the file in the event of a vacancy.  Discussion from Counselor Peter Howison.  Councilor Howison informed that the road commission has become politicized in the recent months and he feels that the commission could use a new person.  Councilor Bob Petersdorf disagreed.  Councilor John Scott agrees with Councilor Bob Petersdorf.  Councilor Richard Koehler supported Jo Owen as a candidate as she has given many hours of volunteer effort to the community.   

Councilor Peter Howison made a motion to appoint Jo Owen to the road commission.  Councilor Richard Koehler seconded the motion.  Motion approved by 4 AYES, AND 2 NAYS.  Motion carried.   Councilor Bob Petersdorf stated that he had spoken with Troy Sathe and Mr. Sathe stated that he would step down from the road commission application if Jo Owen was picked.    

Councilor Bob Petersdorf made a motion to appoint Linda Lauck to the Road Commission.  Councilor John Scott seconded the motion. Motion carried.   Discussion:  Councilor Peter Howison asked what Troy Sathes’ feelings are regarding the situation.   

Troy Sathe 83550 Clear Lake Road .  Mr. Sathe described how he enjoys helping the road commission.  He mentioned that Linda Lauck has complete knowledge of the roads and does a great deal of physical work on the roads.  George McKenzie donates a huge amount of time and equipment to the city roads.  Troy Sathe went on to describe the amount of physical work required by the committee.  He offered to volunteer to remain on file for a vacant position.  The Mayor agreed that there is a physical requirement to serve on the road committee.  Councilor Peter Howison made a motion to appoint George McKenzie to the road Commission.  Councilor Jerry Curran seconded the motion.  Motion carried.   

City Council expressed appreciation to Troy Sathe for all of his volunteer efforts.   

B.    Wakonda Brew Pub application - Councilor Jerry Curran asked about the particulars.  Jeannie LaRocco explained that Wakonda is requesting to open a second location to serve the public on Kingwood Street in Florence . 
Ron Shearer, 85101 Jensen Lane .  Ron Shearer described the mounting cost of operating a brewery.  They have a rented warehouse in Florence on Kingwood.  The state allows for two places of operation with a brew pub license.  City attorney Gary Darnielle gave a dissertation why Dunes City would have to approve a second location in Florence .   

Mayor Eric Hauptman stated concerns regarding the fact that we did not want to open the door by granting application if this resulting in a brew pub opening in Dunes City .  Ron Shearer stated that he did not want to open a brew pub in Dunes City .  Gary Darnielle, City Attorney stipulated that the city could respond to OLCC specifically stating that this is our understanding of what this proposal will do as long as it doesn't change the character and scope of the activity within Dunes City.  It is discretionary for the OLCC to request your opinion.  

Gary Darnielle, City Attorney continued that it is probably standard procedure but it doesn't seem to be mandatory on their part.   Councilor Jerry Curran inquired what authority does the Dunes City Council have to grant permission to do this in Florence ?  Ron Shearer explained that the one license covers both businesses and they are expanding into Florence .   

Gary Darnielle, City Attorney explained that the city is not permitting this.  The city is making a recommendation to the OLCC. They make the decision as to whether to change the license.  The issue of zoning is within the authority of Dunes City .  He then gave the description of home occupation which is an occupation or profession carried on by a member of the family.    It would be a violation of the zoning ordinance if they opened a brew pub in Dunes City .   

Councilor John Scott made a motion that we support Dr. Shearer in his request and instruct legal council to compose a letter limiting the scope of the operation and approve Wakonda Brewery Application with that recommendation.  Councilor Susie Navetta seconded the motion.  Motion carried.  Let it be noted that Councilor Bob Petersdorf approved the motion but then objects.  Councilor Peter Howison asked for a correction on the application to read Dunes City not Dune City .  

C.     Mark Chandler DEQ grant application – There is an application and budget request for matching monies from Dunes City for the request which would be initiated in May or June 2008.  23 water quality parameters are to be measured and will take place over the course of one year.  This is a 60/40 funding grant.  Total grant is $142,000, with $85,000 coming from DEQ, with various commitments from Honeyman State Park , South Coast Water District, and Siuslaw Watershed Council and $6,540 match Dunes City cost.  Same costs basically that are in place are covered by the water quality budget.  

Volunteer hours are credited toward the match also.   This is a comprehensive water testing project.  The funds would go to Portland State University .  They are in charge of the project.  Neither Douglas nor Lane Counties are contributing toward this grant.  The funds are not there from counties due to budget constraints.  Councilor Peter Howison made a motion to approve the letter to have the City agree to $6,540.  $2,126 is in volunteer hours contributed. Councilor Jerry Curran seconded the motion.  Motion carried.  The City Council thanked Mark Chandler for all of his efforts.  

D.           Discuss Norman Martin proposal of LUBA appeal.  Mayor stated he and Norman Martin met on November 29, 2007 , and Mr. Martin said he would drop his appeal if the City Council agreed to his proposal.  Discussion ensued regarding Mr. Martin’s list of demands.  City Attorney Gary Darnielle advised that to further the LUBA appeal would cost the city approximately an additional $7,000 to $8,000.  One of the proposals from Norman Martin was for the city to rescind Ordinance 193.  Councilor Jerry Curran asked Mr. Martin why he was opposed to the land use ordinance.  Mr. Martin replied, “I’m not opposed to the ordinance.  In fact, early in the piece, I was proud of the group that were putting, that was doing this.  I was even put on to the subcommittee before politics came into it and then I was removed.  And my thought right from the start, from 19, from sorry, from 2006, was that the process was flawed.  I said that all along and this was pooh poohed and pooh poohed and so in the end it was no use knocking my head against the wall and that so have we got that right that I’m not against the erosion ordinance and I do not say that I do not look into any of the wording of the ordinance, I am looking to process that I say Dunes City has violated State Statutes, Oregon Administrative Rules. They have even violated their code for..(noise covered word) things like that.  I have just summarized by a heading in doing this and that Dunes City has gotten away with this many times and most of the LUBA cases that come up for this sort of thing, the only reason that are the number there are is that somebody can be bothered to take the County of the City to LUBA rather than to say it’s going to cost me so much money to get a lawyer to do this that I can’t be bothered.  Well, I can be bothered because I had enough experience with LUBA cases when the city was doing me wrong and I learned how to do it myself and I say the city is still doing things wrong and nobody wanted listen to me.  So they only way I can bring it up to say let the court decide.”  

Councilor Peter Howison then offered Norman Martin, “You are saying the ordinance is okay but you are asking to have it rescinded as this agreement.  That is just contradictory.”  Response from Norman Martin is inaudible.  Councilor Peter Howison made a motion that the council table Norman Martin’s proposal.  Councilor Jerry Curran seconded the motion.  Motion carried.   

E.     Laurel Crossing ELD ( Expedited Land Division)  Planning Commissioner
Lee Riechel explained that he asked the ELD be put on the agenda.  Final plat was passed and approved.  After approval the velum, the final document listed the Mayor and the Council.  Lee Riechel explained that there are two options, one asking to sign this off that it has met all the requirements or (two) be returned to the Planning Commissioner to return to the applicant asking for the Planning Director to sign off.    

As a note, no further subdivision of these parcels is to be allowed.  Councilor Susie Navetta asked about a turn around for emergency vehicles.  It is noted there is an easement for a turn around to be approved by the fire department.  There was also clarification on parcel sizes.  Councilor
Bob Petersdorf made a motion that the council approve the partition plot map for Laurel Crossing LLC.  Councilor John Scott seconded the motion.  Motion carried.  

F.     Legal Services Deliberation  After a deliberation, Councilor
Bob Petersdorf made a motion to hire the law firm of Peter Gintner.  Councilor Susie Navetta seconded the motion.  Motion carried.  

City Council meeting adjourned at 10:47 p.m.  

Respectfully Submitted,  

Lisa O’Callaghan,

Administrative Assistant