Mayor Severson called the regular meeting to order at 7:00 pm and declared a quorum present. Present were Councilors Hardin, Misner, Davis, Harn, Springer, Myers, Calame and Harkenrider. Staff members in attendance were City Manager Brookshier, City Attorney Luisi, Clint Spencer, Dan Coulombe, Judge Creasing, Ron Sivey, Ivan Anderholm, Russ Dorran, Karen Primmer and Donna Moeller. News media present were Neill Woelk and Luke Hegdal of the Hermiston Herald. The pledge of allegiance was given.

Minutes

Councilor Myers moved and Councilor Harn seconded that minutes of March 28 regular meeting be approved for filing. Motion carried unanimously.

March Expenditures

Councilor Davis moved and Councilor Myers seconded to approve payment of the following March expenditures: $555,671.57 Bonded Debt; $445,519.33 General; $53,844.11 State Tax Street; $14,642.16 Transient Room Tax; $472,830.97 Utilities; $49,685.15 911 Communications; $846,779.04 Energy Services; $15,500.00; $38,002.36 Regional Water; $13,058.37 WWTP Construction Fund; total $2,505,533.06. Motion carried unanimously.

Report/Acquisition of Rights-of-Way -
Recycled Water Plant (LGW Ranch)

Mike Robinson, the city’s land use counsel from Perkins Coie, stated on July 12, 2010 when the city council passed Resolution No. 1880, concerning the City’s use of eminent domain for purposes of modifying, expanding, and providing a recycled water collection and disposal system to serve the City, there was an error in the legal description of the LGW Ranch property. LGW Ranch’s legal counsel has asserted as an affirmative defense in its Answer and Affirmative Defenses to the City’s Complaint in Case No. CV101618, that the city commenced its condemnation action without proper authority based on an error in the description of the LGW Ranch property attached as Exhibit 2 to such Resolution No. 1880. The following Resolution No. 1888 is a corrective amendment for the purpose of correcting the above-described ministerial error in the legal description of the LGW Ranch property attached to the original Resolution No. 1880 and shall therefore be effective retroactively to the date of enactment of the original Resolution No. 1880. Mr. Robinson said that LGW’s counsel had agreed that the amended legal description attached to Resolution No. 1888 is accurate.

Sheri Wadekamper, representing LGW Ranch, stated they still contend that LGW Ranch has sufficient acreage to accommodate the City’s needs for the life of the new recycled water plant. She asked the council to consider the age of the West Extension Irrigation District (WEID) canal and also reported that the canal was recently shut down due to a broken pipe which filled the canal with mud and silt.

Res. No. 1888 - Corrective Amendment to Resolution No. 1880 (LGW Ranch’s Legal Desc.)

Resolution No. 1888 - Corrective amendment to Resolution No. 1880 - was read and discussed. Councilor Misner moved and Councilor Davis seconded that the resolution be approved and laid upon the record. Motion carried unanimously.

Approval/Agreement with ODOT for Mid-Block Crossing on Highway 207-W. Elm Street

Councilor Harn moved and Councilor Davis seconded to approve an agreement between the Oregon Department of Transportation District 12 and the City of Hermiston for the addition of a mid-block crossing on Highway 207/W. Elm Street in Hermiston. Motion carried unanimously.

Appointments/Ad Hoc Council Committee/City Manager Performance Appraisal Criteria

Mayor Severson appointed the following councilors to serve on the ad hoc council committee to review the performance criteria used pursuant to the annual City Manager performance review: Joe Harn (chair), Brian Misner, Rod Hardin, Jackie Myers and Mayor Severson. Councilor Calame moved and Councilor Myers seconded to confirm the appointments. Motion carried unanimously.

Approve/Proposed Settlement Agreement with BPA/Residential Exchange Program Benefits

Electric Superintendent Russ Dorran gave a brief explanation of the lengthy and complicated Residential Exchange Program (REP). The REP is tied to the idea of “preference power” which dates back to the establishment of the Bonneville Power Administration (BPA) and was built on the premise that its resources could be spread more beneficially to the public through non profit entities such as Municipals, PUD’s and Cooperatives. Several years ago HES received a sizable “refund” check from BPA pursuant to settlement of prior disputed over-payments to Investor Owned Utilities as part of the Agency’s “Residential Exchange Program”. BPA has been working with public and private utilities throughout the Northwest for the past several years to develop a future allocation of its Residential Exchange Program benefits that would be acceptable to the wide range of public and private electric utility interests that receive benefits from the Federal Columbia River Power System (FCRPS). HES is being asked along with all consumer owned and investor owned utilities, state commissions and consumer advocacy groups to sign a final and executable version of the Residential Exchange Program (REP) and settlement agreement with BPA, requiring a 91% approval. Even though recent developments point toward the Settlement Agreement NOT BEING APPROVED because of failure to reach the required approval of 91% of affected public power agencies, City Manager Brookshier and myself are nonetheless recommending council approval of the proposed Settlement Agreement because of two factors: 1) it provides a certainty of benefits and procedures going forward; and, 2) is generally consistent with pre-2002 IOU benefits allocations.

Councilor Harkenrider moved and Councilor Myers seconded approval of the proposed “Settlement Agreement” with BPA concerning allocation of its “Residential Exchange Program” benefits. Motion carried unanimously.

There was no other business, and the meeting was adjourned at 7:35 pm.

SIGNED:
/s/ Bob Severson
MAYOR

ATTEST:
/s/ Robert D. Irby
CITY RECORDER