Council OKs city manager’s request to own recreational watercraft rental business with conflict-avoidance caveats

The Umatilla City Council approved the city manager’s request to own and operate a proposed recreational watercraft rental business, voting to permit the activity under Article 10 of the city manager’s employment agreement. The council’s approval was conditioned by discussion emphasizing that the city manager must avoid conflicts of interest and not sign city contracts that would benefit his private business.

City Manager Dave told the council he is considering a small operation renting pontoons and other watercraft; he said the business concept is primarily intended as work for his children once they are of age and that he would place capital into the enterprise. He discussed possible business logistics including mooring in the marina and conducting reservations and safety checks off-site. He said he had not yet completed due diligence on licensing and storage and asked for initial council approval to proceed with planning.

Council members expressed general support but also emphasized constraints: any financial conflict described in Oregon statute (ORS) would be disqualifying and the city manager should not enter into contracts with the city on behalf of his business. One councilor said the private business is “none of our business” so long as the manager does not contract with the city or create optics concerns. The manager acknowledged potential Army Corps lease restrictions for commercial activity in the marina and noted guides must comply with Oregon State Marine Board licensing where applicable.

A motion to approve the request carried by roll-call vote. Councilors recorded in the roll call as voting aye were: Councilor Funderburg; Councilor Duffloff; Councilor Katie McMillan; Councilor Smith; Councilor Dennis McMillan; and Councilor McLean.

Council directed that the manager perform necessary due diligence on licensing, insurance, storage and any lease permissions (for example, the Army Corps rules for commercial activity at the marina) before committing capital or signing any agreements. The council did not require submission of the manager’s business plan, but members asked for assurances that he would not enter into city contracts or use city resources for the private venture.

The council’s approval is an authorization to pursue private enterprise consistent with Article 10 of the employment agreement; the manager will return to council if specific approvals, leases or permit requests implicating the city are required.