>La Grande Observer | Union and Wallowa Counties' News Leader

The La Grande City Council Wednesday voted to repeal the resolution that governs the allocation of Transient Room Tax funds.

The city is changing the way it does business with its economic development partners, requiring Memorandums of Understanding and work plans from them. Earlier, new agreements were worked out with the Union County Economic Development Corp., and the council is now focusing on Union County Tourism.

According to the resolution, 60 percent of the TRT money is allocated to tourism-related activities.

Union County Tourism gets 45 percent, and the Blue Mountain Conference Center 15 percent. But the city says only 50.7 percent of TRT money is being spent on tourism-related activities.

Mayor Colleen Johnson, who heads a subcommittee working on agreements with the nonprofit agency charged with promoting tourism in the area, said repeal of the resolution clears the way for the new agreements.

“Ultimately the resolution would be redundant and in conflict with the MOU and work plan,” she said.

But Janet Dodson, UCT executive director, asked the council to delay repeal of the resolution. She said her board of directors hasn’t had sufficient time to consider the matter.

“We’re concerned about how decisions are made about whether activities are tourism-related or not. There are many points that need discussion,” she said.

Lengthy debate followed, with Johnson insisting the resolution will have to be repealed in any case in order for a new agreements to be finalized.

Councilor Gary Lillard said he believed UCT and the city should take more time to discuss the issues.

“It sounds like we need to have more dialogue with our partners,” Lillard said. Councilors Mary Ann Miesner and Steve Clements made similar statements.

In the end, however, the council voted 4-3 for repeal.

In another item of new business Wednesday, the council formally accepted the resignation of Councilor Todd Richmond and appointed Les Balsiger to take Richmond’s place in Position 4.

Richmond resigned because he  and his family are moving away. He had earlier filed to run for re-election and was unopposed.

Balsiger in the meantime is the unopposed candidate for Position 3, being vacated by Dan Pokorney. Pokorney is challenging Mayor Colleen Johnson for her seat.

Balsiger will sit in Position 4 until its expiration Dec. 31. The city has announced a special filing process for nominating candidates for the Nov. 4 election.

Candidates need to obtain a petition for filing from City Recorder Sandy Lund, complete it and return it to Lund not later than 5 p.m. Aug. 18.

Also Monday, the council voted to approve a $35,000 annual funding request from the Union County Economic Development Corp. UCEDC sought $37,000 — $2,000 more than it usually receives — but after consideration the council decided on the lower amount.

“I’m comfortable with the $35,000, but a little less comfortable with increasing the amount when we’re making cuts in our own budget,” Mayor Colleen Johnson said.

Howard Perry, representing UCEDC, told the council the $2,000 was added to the request to adjust for inflation and help cover ongoing costs.”

Darin Larvik of City Garbage Service met with the council to explain the need for activating a “fuel cost escalator,” or surcharge, to cover increasing fuel costs.

Larvik said the surcharge is built into City Garbage’s contract with the city. The amount charged goes up or down with the price of fuel. Last month, the surcharge cost the average residential customer in La Grande 61 cents.

Larvik said that last November City Garbage bought 10,000 gallons of fuel for $16,000. Recently, the company had to pay $43,000 for the same amount.

City Garbage actually activated the fuel cost escalator in May without first discussing it with the city council. City Garbage had interpreted the contract as saying the company could tack on the surcharge without council action.

City Manager Robert Strope interpreted the matter differently and called for a meeting with City Garbage co-owner Ron Larvik. The two sides came to an agreement that the escalator would be in effect retroactively to May.

City Garbage acknowledged it was premature to implement the surcharge without first discussing it with the council.

Darin Larvik, however, said the action was necessary because the high cost of fuel threatens City Garbage’s ability to do business.