JOHN DAY - City Manager Peggy Carey informed council members at the Aug. 10 meeting that she received a letter from the Grant County Historical Museum Board requesting the city relinquish its duties and interest in the museum and transfer all interest to Canyon City.

In a July 1983 agreement, Canyon City and John Day had joint ownership of the Herman and Ezra Oliver Historical Museum and were responsible for operating and managing the facility.

Ellen Stull, a member of the museum board, told council members at the meeting that there originally was a three-way finance program in place for operations.

"Funding came from Canyon City, John Day and from the Grant County Court," Stull said. "The county ran out of money; so it's been just Canyon City and John Day."

Under the agreement, either Canyon City or John Day may terminate the agreement at the end of any fiscal year upon giving the other party a 60-day written notice.

Carey said John Day officials always wondered why it had interest in a museum that wasn't located within the city limits.

Currently, John Day is responsible for the administration of the museum, which includes budgeting, payroll, accounts payable and accounts receivable. The Public Works Department has been helping with maintenance, including picking up garbage and taking it to the transfer station.

"These services have never been charged to the museum," Carey said. "This has become costly for us to provide services to a facility that is not located within our jurisdiction."

Council member Gene Officer raised some questions regarding the transfer of duties.

"This is a Grant County museum which we have funds in our budget for. What happens if Canyon City throws up it's hands and says, 'We can't do it anymore?' " he said.

Mayor Roger Simonsen said a lawyer needs to draft a document for Canyon City indicating they want John Day to relinquish its responsibility in the museum.

"We need to make sure everything is done legally before we make the break," he said.

Officer commented that if Canyon City wants to take the museum over by themselves, they should be the ones who instigate the letter.

The council gave its verbal approval to the proposal and directed Carey to contact Canyon City and do whatever it takes to make the transfer legal.

In other business, the council:

• Received a report from Bill Peutz, Project Inspector for Anderson and Perry, regarding the airport project and the well No. 5 pump station.

"So far we have 800 feet of the water lines and 3,600 feet of sewer lines installed," Peutz said. "We also have 65 percent of the manholes put in."

Each of the four manholes are 20-feet deep and concrete lined.

"The toughest part of the project has been done," he said. "We've gone across the airport and also across County Road 80."

Work on the pump station is also going well, he said.

"Ninety-five percent of the grading on the upper booster pump site has been done and the foundation for the pump hose at well No. 5 is in," he said. "Overall, I think the entire airport project is coming along very well."

• Received a report that the paving of North Canyon Boulevard will begin Aug. 19.

"The project inspector said the work is coming in under budget, which is good for us," Carey said. "They are a little behind schedule because OTEC had problems getting the new power poles, but the project is still within the 60-day time period."

• Approved an application request by the El Teulito Restaurant for an Oregon Liquor Control Commission license.

Autumn Barajas, who owns the establishment with her husband, said they had received many requests from customers for alcoholic beverages and have received approval from the owner of the building to allow them on the premises.

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