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Healthy Hoe-Down Fills Gymnasium

A GYMNASIUM FULL OF LINE-DANCERS learned healthy eating and exercising habits at the Rainier Healthy Hoe-Down on Thursday, May 3, planned by Hudson Park Elementary physical education teacher Jerry DeShazer (pictured far left). The event featured health-related informational booths, a salad bar dinner, raffles and prizes, and Nintendo Wii dancing.

Chief Photo by Annie Hulegaard

City of Rainier, REDCO Settle Law Suit with USG

by Adam J. Wehrley

The writing of a $1 million check by the Rainier Economic Development Council (REDCO) brought a close to a five-year legal battle with United States Gypsum (USG).

Monday night REDCO approved the settlement agreement regarding property payments for USG’s plant west of Rainier, prior to the city council signing off at a meeting later in the evening.

With a loan from USG, REDCO purchased the land from the Port of St. Helens and the State of Oregon in 1999 as part of an incentive package to encourage USG to locate the plant in Rainier. USG was also given property tax exemptions for two years of construction and its first five years of operation.

The loan payments came due in 2007 when the tax exemptions expired. Originally in 1999, REDCO’s consultants had advised them on an agreement which obligated REDCO to loan payments of approximately $600,000, which exceeds REDCO’s annual capped income of $300,000.

The finalized agreement ends five years of renegotiations, which started when REDCO requested a judicial judgment in 2007. In March of 2009, REDCO sued USG and its advisers for obligating the council to payments beyond its capacity to pay. REDCO signed a mutual release and settlement agreement, dropping its lawsuit.

The newly-adopted payment schedule includes the $1 million payment made Monday night and $275,000 annually for the next 17 years.

The City of Rainier agreed Monday to its share of the payments and will reimburse $305,000 of the $1 million payment plus $75,000 annually. The council decided to begin its payments after July 1, to avoid the need to submitting a supplemental budget for 2011-12 fiscal year.

According to Columbia County tax assessment information, USG pays over $1.2 million in property taxes. These taxes provide a large portion of REDCO’s annual revenues.

The city council, which also serves as the REDCO board, voted unanimously on the various portions of the settlement and payments.

The REDCO board also decided to move its offices from rented space to city hall, to save money and staff hours. REDCO board chair Mike Avent advised they stop “paying for something, we’re not using.”

B Street Project Await Property Acquisition

Tom Weatherford of the Oregon Department of Transpotation (ODOT) updated the council on the current state of property and right-of-way for long proposed improvements to B street. Weatherford estimates that the acquisitions will cost $165,460 and take nine months to complete.

Mayor Jerry Cole expressed his frustration over delays in the project, which has taken 11 years to date, without construction starting. Councilor Bill Vilardi asked “When will we see shovels in the ground?”

Weatherford answered, “The first part of 2013.” The need to follow federal acquisition guidelines and establish fair compensation was stressed throughout the discussion.

The council approved a contract with ODOT to handle the right-of-way acquisition and also approved the 12th round of amendments to the project. Councilor David Sills abstained from both votes, while the other council members approved them.

Clean Up Day and Recycling Discussed

Jason Kirchenmann of Hudson Garbage Service updated the council on the results of the Rainier cleanup day May 5, reporting that the event collected 30 cubic yards of recyclable scrap metal, 40 yards of e-waste (monitors, computers and TVs), 60 yards of tires, six tons of yard debris and 20 tons of other garbage.

City Administrator Debra Dudley expressed her gratitude to the many volunteers and city staff members who helped make the event a success. She especially thanked Kenny Neil of Triton Landscaping for providing excavator services and Alan and Melody Harrison of the Deli Store for bring sandwiches to volunteers.

Several councilors commented on how well the seven members of the jail work crew worked at the clean up day and Vilardi said it was a great resource to tap into in the future. Dudley reported that the city would be receiving a contract from the supervisor and she would include a proposal to use the crew throughout the year in the 2012-13 budget.

Kirchenmann presented the latest recycling proposal for city residents who receive garbage service through Hudson. In the proposal each residence will receive a 95 gallon recycling cart, which will be picked up twice per month.

Kirchenmann said that many residents will then be able to cut their garbage service to fewer cans or less frequent pick-ups. The reduction in service would save customers money and offset the $3.80 monthly charge that will be added to each customer’s bill for the recycling service.

The proposal must be approved by both city and county officials and would go into effect about eight weeks after approval.

Mayor Cole said the city would plan a public hearing for June.

The council approved a $15,187 bid from Bergerson Construction to replace bull rails on the dock at the city marina. The work is in line with requirements from the Oregon Marine Board, which provides funding for the marina. The 300 linear feet of galvanized rail is scheduled be installed by June 30.

Councilor Phil Butcher voted against accepting the bid, while the remainder of the council passed it.

Rainier resident Ron Lucas spoke to the council regarding a letter he received requesting that he vacate land next to his business which the city owns. Lucas claims that the land has been designated as a street right-of-way and that adjacent business owners have the right to use it until the time a street is built.

The city has proposed using the land for a park-and-ride area and does not recognize Lucas’ claim. Over the years the city has sent several letters to Lucas requesting that he remove signs, planters and other items from city land.

Lucas maintains it is illegal for the city to use the property for non-street-purposes and that the railroad behind the property makes a street unworkable.

City Attorney Stephen Peterson was present for the discussion and did not indicate agreement with Lucas’ interpretation. Lucas said, “I’ll fight a park and ride there to the supreme court.”

Tina Edwards of Rainier requested that the council move forward on placing a sand volleyball court at the city park, as proposed in the original park plan. Edwards offered to volunteer labor, if the city provided sand and excavating the site. Mayor Cole mentioned that horse shoe pits had also been part of the plan.

The council requested that Edwards bring them a more complete proposal and council member Scott Nelson offered to help planning the project.

The city council appointed Al Guist and Nancy Norman to the budget committee and approved a budget format in accordance with state standards.

Rainier Police Chief Gregg Griffith reported that 28 pounds of prescription medication were collected during the drug take back event held by the police department and the Drug Enforcement Agency (DEA).

At the end of the meeting the council held a closed executive session, covering litigation likely to be filed against the city, employee contract negotiations and property transactions.

Port of St. Helens Invites Governor to Visit Port Westward

by Deborah Steele Hazen

In the wake of Oregon Governor John Kitzhaber’s recent statement asking federal agencies for “a programmatic and comprehensive environmental impact statement” on proposed coal exports, Port of St. Helens board of commissioners president Robert Keyser has invited the governor and his economic development team to visit the Port Westward Industrial Park near Clatskanie.

Last month, Kitzhaber wrote to Interior Secretary Ken Salazar and officials at the Bureau of Land Management and Army Corps of Engineers asking them “to conduct a comprehensive analysis of the environmental, community, economic, transportation and energy security impacts of proposed coal exports to Asia before proceeding with further permitting and leasing decisions.”

One coal export proposal, Ambre Energy’s Morrow Pacific project, would see coal loaded onto enclosed barges at Boardman in Morrow County, and brought downriver to Port Westward where it would use the existing dock to transload the coal, in a completely enclosed system, to ocean-going ships.

Ambre had hoped to have that project up and running next year, and is in the process of applying for an Army Corps of Engineers permit for its dock facility at Boardman.

A second proposal by Kinder Morgan would see coal brought to Port Westward by rail and then loaded onto ships, but it is in the early stages of “due diligence.”.

“While we understand and respect your decision to ask the federal government for a programmatic review of coal export,” Keyser wrote in his letter to the governor. “We are concerned that the review process and accompanying energy policy discussion may lead to significant delays, if not the complete cancellation of these proposals, and the loss of potentially hundreds of direct and indirect jobs for Oregonians.”

Besides the 15 to 20 permanent jobs in Boardman, 20 to 25 permanent jobs at Port Westward, and more working on the river, Ambre Energy announced recently that it was seeking bids from Oregon companies to create 20 enclosed barges valued at approximately $70,000,000. The barge building would create over 300 construction jobs over the next two years.

In his invitation to the governor to visit Port Westward,  which has over 1400 acres available for development, Keyser described it as an “incredible, yet grossly under-used industrial site.”

He asked the governor to visit it “and have a conversation with us regarding the future of this site… Our intent is not to attempt to change your position with regard to coal, but given that position, see how best to move forward.”

Following is the full text of the Port of St. Helens letter to the governor.

“Dear Governor Kitzhaber:

“The Port of St. Helens shares your goals of helping Oregonians find and retain jobs and attracting new, innovative and environmentally responsible industries to our state. In an area hit especially hard by the economic downturn, Columbia County citizens are eager to see businesses settle in our region that offer family-wage jobs.

“Recently, the Port of St. Helens has received press attention related to Ambre Energy’s Morrow Pacific project. As you know, the company has proposed using an existing dock at the Port of St. Helens’ Port Westard Industrial Park, near Clatskanie, for its coal transloading operation. A second company, Kinder Morgan, has also proposed a coal exporting project for the Port Westward site. While these companies pursue their due diligence, Port staff and commissioners are actively seeking, listening and responding to public comments, concerns and questions about these projects, as well as continuing to market this and our other sites to new industries.

“Because of the extensive job losses from the decline in the timber industry and the closing of the Trojan Nuclear Power plant, the need to recruit new industry and diversify the local economy has never been greater in Columbia County. In Clatskanie, many small businesses are closing and those that are still open are struggling. Our school district may close due to lack of funding. The fire district and the City of Clatskanie have made severe budget cuts and will likely be forced to reduce staff, putting a strain on providing even the most basic public safety services. The other communities in Columbia County are facing similarly dire economic situations.

“We  can all agree recruiting and retaining quality jobs is a significant part of the solution to these problems. Citizens who are gainfully employed are best able to support themselves and their families as well as be a positive force in their communities by taking leadership roles, contributing to charitable causes, donating their time and efforts in service of others and paying taxes to support vital services.

“We understand the widespread interest and sensitivities of the two proposed coal projects. However, the Port of St. Helens leadership believes these proposals for the Port Westward Industrial Park near Clatskanie should be given an opportunity to show that they can more than satisfy our state’s high environmental standards. In fact, both companies are proposing new technologies and procedures that far exceed current environmental and safety standards. While we understand and respect your decision to ask the federal government for a programmatic review of coal export, we are concerned that the review process and accompanying energy policy discussion may lead to significant delays, if not the complete cancellation of these proposals, and the loss of potentially hundreds of direct and indirect jobs for Oregonians.

“On behalf of the Port of St. Helens, I am pleased to extend an invitation to you and your economic development team to visit the Port Westward Industrial Park and have a conversation with us regarding the future of this site. Your visit would lift the spirits of our citizens who have seen only disappointment in recent years. Our intent is not to attempt to change your position with regard to coal, but given that position, see how best to move forward. Collaboratively, I am confident we can work as a team to help realize the potential of this incredible, yet grossly under-used industrial site. We look forward to discussing ways that the Port, the State and our local communities can work together to put Oregonians back to work.

“Thank you for your consideration.

“Sincerely,

“Robert Keyser

“President

“Port of St. Helens”

CRFPD Searches for Equipment Replacement Funds

by Adam J. Wehrley

Long term planning and budget priorities were discussed at the Clatskanie Rural Fire Protection District (CRFPD) board of directors meeting Wednesday night.

Many of the recommendations presented by Bill Anderson of the Special Districts Association of Oregon (SDAO) centered around budgeting for the scheduled replacement of CRFPD equipment and vehicles.

Anderson estimated that prior to 2025 the district would have to spend  $3.8 million to replace fire engines, medic units and other apparatus scheduled for replacement. Of that, $1.6 million worth of equipment has already passed its scheduled replacement date. Anderson credited CRFPD’s vehicle maintenance for the longevity of the fleet and reiterated that the fleet meets current operational standards.

The report also addressed the need to update and replace many of CRFPD’s airpacks, used by firefighters when entering structure fires. Many of the air bottles owned be CRFPD are approaching their regulatory limits and must be replaced, at approximately $560 each about $15,000 total.

Funds for CRFPD’s equipment and apparatus replacement plan have not been included in recent budgets and several funding options were discussed, including tax levies and lease/purchase deals.

The SDAO report indicated that decreasing tax receipts and uncollected ambulance fees play major roles in CRFPD’s budget constraints. Medicare and Medicaid regulations impose limitations on the reimbursement agencies receive from Medicare and Medicaid patients. Uncollected ambulance fees have risen from approximately $27,000 in 2005 to $81,125 in 2011. Anderson’s report said that federal and state reimbursement restrictions account for 94 percent of the district’s uncollected fees.

Anderson’s report updated and clarified a 2008 report to the district, which included many recommendations, without prioritizing them or ranking their feasibility. Board chair Robert Keyser thanked Anderson for his work and suggested the board review the 2008 report and consider its suggestions on budgeting and efficiency measures.

The board also held a budget work session, to prepare the district’s proposed budget, which was to be presented to the budget committee Wednesday, May 9 at 6 p.m at the CRFPD fire hall.

The 2012-13 proposed budget is $1,376,461, about $80,000 less than the budget adopted for 2011-12.

Saving for apparatus and airpack replacements were top priorities for Keyser, who said “We have to be paying towards an ambulance…and air packs if we loose those we’re out of the firefighting business.”

The board agreed to shuffle $25,000 from the ending fund balance to the accounts holding funds for apparatus replacement and equipment. Keyser described as “giving ourselves a loan” within the budget year. $10,000 will go towards the ambulance replacement and $15,000 to airpack replacements.

High Voltage Choreography On Nehalem

SILHOUETTED AGAINST MONDAY’S BLUE SKY, workers continue with improvements on Nehalem Street, where the Clatskanie People’s Utility District (CPUD) is connecting lines leading to the Conyers Substation. When the project connecting the PUD’s various substations is complete it will result in greater reliability. Crews were out in force Monday with several bucket trucks working in concert to string lines between poles.

Chief Photo by Adam J. Wehrley

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