PENDLETON – Residents of Rieth will receive sewer service, thanks to agreements the Pendleton City Council approved Tuesday.

Bob Patterson, city public works director, said Rieth area residents formed a sanitary sewer district to address failing septic systems in the unincorporated community. It intends to build a sewer collection system for about 70 lots and a lift station to connect with Pendleton’s system.

The council approved agreements with the district and with Umatilla County, which applied for loans and grants to finance the nearly $1.18 million project. Rieth district residents will be charged 10 percent more per month than Pendleton residents due to their location.

The council also:

Authorized the staff to proceed with the Keystone RV Co. expansion project, which is expected to bring at least 100 jobs to Pendleton within the next three years.

Expanded the year-old Voluntary Employees Beneficiary Association (VEBA) account to include City Manager Larry Lehman and two other qualifying nonunion employees. VEBA allows employees to annually convert up to 80 hours of unused leave time into money available for medical expenses. Upon retirement or termination, the funds remain with the employee. The program is available to the Pendleton Police Department. Lehman asked the council to expand VEBA to include him and two other managers who have more than 320 hours of accrued vacation. Also eligible are Sue Lawrence, wastewater treatment superintendent, and Glenn Graham, facilities manager.

Accepted the 2003 city audit and extended the contract with auditors Dickey and Tremper LLP of Pendleton for two more years. The city intends to budget $21,550 for next year’s audit, according to Linda Carter, finance director.

Authorized budget transfers, including using $46,000 from the contingency fund, to include $20,000 for legal services related to the Grecian Heights Park appeal, $11,000 for computer contract services and $3,000 for postage on water bills. In addition, $382,000 will be transferred from the debt service fund to the capital expenses fund to make final payments on the water treatment plant.

Renewed a five-year lease with the Pendleton School District for 17 acres the FFA uses at the waste water treatment plant.