CANNON BEACH - The water and wastewater replacement and renewal fund in Cannon Beach will receive $250,000 each year from the transient room tax, the City Council decided 4-0 Tuesday. Councilor Tevis Dooley was absent.

The money, which is roughly equivalent to 16 percent of the current transient room tax, will form reserves for infrastructure improvements. The fund will be available if the city has difficulties paying off the bond to build a new wastewater treatment plant.

Currently, the city is scheduled to pay about $360,000 each year for 20 years with a 50/50 plan of property tax and utility rate increases. The bond was approved by voters in November 2004.

The council unanimously selected Galardi Consulting to perform a utility rates review. "It doesn't appear that the rate increases are going to be that significant," said Public Works Director Joy Gannon.

Gannon reported the first of the new reflective street signs have been installed. Councilors had previously voiced disapproval of the signs because of their lack of beauty. Gannon said the sign was on the work session schedule.

She is meeting with the Warren Street sidewalk contractor today to discuss how the contractor will improve the part of the sidewalk that does not meet city standards. "Quite a bit of that will be coming up," she said. Replacing the sidewalk is the contractor's responsibility, she said.

Councilor Carmen Swigart said someone is moving the cones away from the ditch at the site, which creates a danger. Gannon said the police department is checking regularly to see they are not moved again.

Gannon reported the Sunset Empire Transportation District plans to change the Cannon Beach Shuttle schedule in June 2006 from once every 40 minutes to once an hour, but include a trip to Seaside. "Essentially, they've eliminated Seaside's route," she said.

Mayor Dave Rouse said the service should be more frequent. Gannon said she would discuss it with Cindy Howe, the director of the transportation district.

The council agreed to hold a work session on new restrictions to city park use. Councilors want to refine the language on limits placed on bandstand use, horses in the parks, temporary structures, whether fires or campstoves are allowed and whether a single event can use the entire park. Swigart suggested adding a rule that people who damage the parks are liable. "It takes us years to get our parks in good condition," she said.

Other restrictions in the ordinance include a prohibition on damaging plants, a ban on public address systems unless there is city permission, a rule against entering temporarily closed park areas and limits on the number of people from one group who can be in the parks after dark.

• Voted 3-1 to exempt commemorative trees, tables and benches from the Design Review Board process if they are on a list of approved locations that was determined by the council. Councilor Jay Raskin voted against. "I think that Design Review needs to be there," he said after the meeting. "Site designs are important and it's the last time there's any community involvement."

• Unanimously approved closing part of Second Street from 5 to 9 p.m. Sept. 30 for a car club event on condition that the hosts of the event tape off the street to keep pedestrians out of the part that will remain open, place traffic cones, put a sign at Second and Spruce Streets stating the Ecola Seafoods parking lot is open and place an individual at the intersection to direct traffic in and out of the Ecola Seafoods parking lot.

• Approved unanimously the closing of West Monroe Street for the Cannon Beach Historical Society tour, noon to 5 p.m. Sept. 10.

• Unanimously approved the employment agreement with Rich Mays for city manager at a starting salary of $75,000 per year. Mays is scheduled to start Nov. 1.

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