Welcome to the
     City of Canyonville                                                   

250 N Main, Canyonville, OR 97417
         541-839-4258 or 541-839-4020
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Tuesday February 18, 2014




I.                          CALL TO ORDER AND PLEDGE OF ALLEGIANCE:


Mayor Deaton called the meeting to order at 7:00 p.m. and all joined in the Pledge of Allegiance.


II.        ROLL CALL:

COUNCIL PRESENT:    Mayor Deaton, Councilors Parker, Braudt, Coleman, Kovachy and Barton.

COUNCIL ABSENT:      Councilor Loomis.

STAFF PRESENT:         Administrator/Recorder Evans, Public Works Superintendent Lakey, Bookkeeper Bennett

STAFF ABSENT:           None












1.      Approval of Regular Session Minutes for 01-21-14


Councilor  Barton  moved, Councilor  Braudt seconded a motion to approve the consent calendar. All voted “yes”.  The motion carried




            There were none.




1.        Audit report


The City of Canyonville 2012/2013 Audit report was handed out to each councilor for their review before the next council meeting when the auditor will be present to answer questions.


2.        C Giles Hunt Grant for Library


Librarian Carol Hildebrand is working on applying for a C Giles Hunt Grant to remodel the circulation area in the library in order to have more room for the additional volunteers helping out now.  The remodel would entail a new front counter, back table, bookcase, file cabinets and drawers.  She is also looking to create an area around her desk that will give her some privacy.  Carol has obtained two bids, one from MSL construction for $7,270 and one from Wahl construction for $10,340.  The electrical work is not included in the two bids so Carol is trying to get a bid from Day & Night electric, which will be covered by the friends of the library plus any addition costs up to $2,000. Carol is asking permission to apply for a C Giles Grant in the amount of the $7,270. 


Councilor Braudt moved, Councilor Coleman seconded the motion to approve the Library’s application of a  C Giles Hunt grant for $7,270.   All voted “yes”.  The motion carried.


3.        Potential award of bid for phase 1 of the sewer plant upgrade


The City of Canyonville advertised for bids on Phase 1 construction of the wastewater sewer plant upgrade in the Daily Journal of Commerce and the News Review on January 22nd and 29th. All bids were due at 2:00 p.m. on February 18, 2014.  There were five bids received, opened, and deemed responsive with no bidding irregularities observed.  The bids are as follows:

            Company                                              Bid Amount

            2KG                                                     $1,574,900

            R & G Excavating                                 $1,678,000

            Wildish                                                $1,852,000

            Pacific Excavation                                $1,685,000

            McClure and Sons                                $1,766,884


The lowest bid comes in just under the engineers estimated cost for the construction of $1,620,000.  It is the recommendation of the engineer to accept the bid, authorize sending the Notice of Intent to Award to all bidders, award a contract to 2KG Contractors, Inc. in the amount of $1,574,900.00 for the base bid, contingent upon the approval of Oregon Business Development Department – Infrastructure Finance Authority, and upon no protest being filed during the protest period stated in the Notice of Intent to Award.  Anticipating construction to start around the 1st of April with a construction period of six months.


Councilor Braudt moved, Councilor Barton seconded a motion to award the Phase I construction of the wastewater sewer plant upgrade contract to 2KG Contractor, Inc. in the amount of $1,574,900 for the base bid contingent upon the approval of Oregon Business Development Department-Infrastructur Finance Authority, and upon no protest being filed during the protest period stated in the Notice of Intent to Award.  All voted “yes”.  The motion carried.

3.     Resolution 614a adopting a collection policy and procedure for accounts sent to collection


At the January meeting Council approved entering into an agreement with Credit Services of Oregon to collect the City’s bad debts and authorizing the collection agency to add on to the principal an additional 40% allowed by Oregon revised statues 697.105.  Staff was advised at that time to draft a resolution to bring to the next meeting in February 2014.


Resolution 614A establishes the policy and out lines the procedure for the collection of bad debt.


Councilor  Barton  moved, Councilor  Kovachy seconded a motion to adopt Resolution 614a – adopting a policy to add 40% to all accounts sent to collection and establishing a procedure. All voted “yes”.  The motion carried. 


            4. Resolution 615 providing for a new distribution of the water/sewer late fees


When council adopted Resolution 557 establishing a $10.00 late fee for water and sewer to be split between four accounts staff did not realize the city’s utility software program could not make this split, nor would it work for the auditor as they have to include this fee into the utility operating fund.  With the software inability to split this fee into four different funds staff has to make the split through manual journal entries for each cash receipt batch that lists late fees paid.


Upon council request staff created Resolution No. 615 to repeal Resolution No. 557 and reestablish the late fee of $10.00 for delinquent water and sewer accounts and providing for a new distributon of the funds to Capital Improvement Funds through a transfer during the budget process.


Councilor Parker requested to have an equal split added to the resolution for the disbursement of the late fee between the two Capital Improvement Funds.


Councilor  Barton  moved, Councilor  Braudt seconded a motion to adopt Resolution 615 –repealing Resolution 557 and reestablishing the late fee of $10 for delinquent water & sewer accounts and providing for a new distribution of the funds with the noted correction. All voted “yes”.  The motion carried. 






Sergent Bean updated the Council on activity that has occurred in Canyonville during the month of February.  February turned out to be another busy month as there were 259 incidences responded to by the Sheriff’s office. These incidences can vary from assistance to disturbances, moving violations, bugleries, or criminal acts.  Out of those 259 calls 22 were for criminal acts, 12 for DUI’s, drugs, and warrants.


City Administrator Evans voiced her concern about altercations the Public Works staff has been having with a resident on Hamlin Street when they are working in the area of the residence.  The resident either stands in the way of equipment or climbs on the equipment to scream profantity and threaten staff.  They have also vocally attacked staff at businesses in town.  Staff contacted the sheriff’s office and meet with a deputy to try to remedy this problem. One big concern is that when construction of the wastewater plant upgrade starts will he create a problem for the contractors staff and equipment to either try and stop or slow down the progess of construction.


Council questioned what the reasons were for these attackes.  Public Works Superintendent Lakey explained that the city has been working on crowning the road for proper drainage and the resident is angry about the amount of water that is accumulating in his yard.  There were several suggestions by council for possible actions to be taken to alleviate this problem, ranging from running a ditch along the street within the cities right of way to sending a letter from the city attorney to requesting restraint from any further confrontation with any city staff or the city will have no alternative then to press charges. 


Seargent Bean did suggest Superintendent Lakey give the Sheriff’s office a call before they start any work in the area of this residence so he can have a deputy in the vicinity to respond quickly to calls for assistance from the city.


Council directed the Adminsitrator to contact the City Attorney and have a letter drafted to send to the residents stating the City will press criminal charges if they continue to interfere with road work in the area.




Staff closed down the flow from the reservoir by one third on January 29th to allow the water level in the dam to raise. Within 6 days the level had risen one foot.  It is expected the reservoir will be at full capacity after the next rain on the first weekend of February.  The flow will be left throttled down to match the flow coming into the reservoir as required by our water rights.  With any more rain the city should have enough water to make it through the summer months without having to conserve water.


The City’s cross connection control program has identified a fire suppression line at Forest Glen that has cross connected to the City’s domestic water system with no backflow protection.  The backflow preventer protects the City’s water supply system from protential health risks.  Fire suppression lines are not allowed to connect directly to the domestic system.  Forest Glen will need to separate the fire line from the domestic water system and install a back flow preventer. They have been given thirty days to have the fire suppression line hooked up to the City’s standards.  Superintendent Lakey has been in contact with Forest Glen and the Deputy Fire Marshal regarding the procedure and requirements of getting this problem resolved so all the residents will be protected.  Presently Forest Glen has to have staff personnel on fire watch around the clock until the fire suppression system is fixed. 


Through the City’s cross connection control program numerous letters have been sent out to remind water users, with backflow devices, that a yearly test must be performed on these devices.  Superintendent Lakey will be following up on all customers that have not complied with the City’s request.






Council President Braudt and Administrator Evans met with Deanna Qimby from USDA Rural Development to discuss the funding of phase 2 of the sewer plant upgrade.  Currently the City anticipates funding ½ of the sewer project with funds from Rural Development and the other ½ with funds from the state’s Infrastructure Financing Agency.  The proposal the City received from Rural Development at the one stop financing was a $3.5 million loan with a $1.5 million grant.   

There was discussion with Deanna regarding the City’s financial condition along with stressing what the financial impact of these high sewer rates will have on the Citizens of Canyonville.  The City  also asked them to consider giving more grant funding based on our financial needs.  In the past there have been times when they would award a $3 million loan and a $2 million grant. The extra $500,000 would help to lower the future rates about $2.00 to $3.00 a month. 

The first step is to complete the initial application which must include the following items:

·       Publication of a notice of intent to apply for federal funding

·       Certification that the City has a vulnerability Assessment/Emergency Response Plan

·       Audit and budget for prior 2 years

·       Lender contact record:  Rural Development only finances Cities that cannot obtain commercial financing.  We must submit proof that the City has been denied commercial financing.

·       Summary of the project users and usage.

·       Copy of the City’s Charter

·       Letter certifying any known relationship between City employees and Rural Development.

·       Copy of the Wastewater Facility Plan

·       Copy of the Environmental Assessment

·       Copy of the Mutual Agreement Order

·       Self Evaluation of facilities for handicap accessibility 

After Rural Development has determined that the City meets all their lending requirements the City will need to issue bonds which will be purchased by Rural Development. There are basically two types of bonds, revenue bonds where the City’s revenue is pledged for repayment and general obligation bonds which pledges tax money.  I believe Council has made it very clear that the City does not want to do general obligation bonds since there are so many non taxpaying entities in Canyonville. 

All public bodies are required to hire bond counsel to assist with the issuance of bonds.  So at this time Administrator Evans has started the process of obtaining a list of qualified bond counsels that have worked with Rural Development in the past.  The plan is to have someone at the March meeting that can educate council on the bond process.




Mayor Deaton recessed the regular meeting at 8:23 p.m. to reconvene in 5 minutes for the executive session.




Mayor Deaton recessed the regular meeting and called the executive session to order based on ORS 1923660 (2)(H) to consult with Counsel concerning the legal rights and duties of a public body with regard to current litigation or litigation likely to be filed.


The executive session was concluded at 8:15 p.m. and the regular meeting was reconvened at 8:16 p.m.



1.    Available for Inspection:

a)                Seniors Escorting Seniors –Jan 2014 Report



1.      Planning Commission Regular Session – Wednesday, March 12, 2014 @ 7:00 p.m.

2.      City Council Regular Session – Tuesday, March 17, 2014 @ 7:00 p.m.



Being no further business Mayor Deaton adjourned the meeting at 8:25 p.m.


Submitted by:                                                                          Approved by:



______________________________                                          ________________________________

Dawn Bennett, Bookkeeper                                                      Robert Deaton, Mayor
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