SAN JUAN COUNTY COMMISSION MEETING OCTOBER 2, 2006 The regular meeting of the San Juan County Commission was held on October 2, 2006 At 10:00 A.M. in the Commission Room at Monticello, Utah. Present: Lynn Stevens , Chairman Manuel Morgan, Vice Chairman Bruce Adams, SJC Commissioner Rick Bailey, SJC Administrator Norman Johnson, SJC Clerk /Auditor Dianne F. Neuss, SJC Deputy Clerk Commissioner Bruce Adams made a motion to approve the minutes of September 25, 2006 with corrections. Commissioner Manuel Morgan seconded the motion and Commissioner Lynn Stevens declared the motion carried by unanimous vote. Evan Lowry - SJC Planning Office Evan will meet with Alice Carlton, Forest Supervisor, in Moab on Wednesday of this week to discuss Wildlife and the Forest Plan. Evan noted that there was an item that ran in the newspaper relating to the Bear River, noting that the geese came back even with canoes on the river. Evan will provide Commissioner Stevens with a disk of information relating to the Forest Service roadless issues to give to John Harja. Norman Johnson - SJC Clerk/Auditor Norman provided a list, for Commission approval, of residents who applied and qualified for Circuit Breaker and Veteran abatements. He explained that the Circuit Breaker abatement is for those 65 and older with a household income of $26,157 or less. The Veteran Benefits are for those who are 10% or more disabled as determined by the Veterans Administration. The overall number of participants is down this year (including abatements for disabled veterans). The State will refund $45,378 to the County on the abatements. Commissioner Bruce Adams made a motion to approve the Circuit Breaker and Veteran abatements. Commissioner Manuel Morgan seconded the motion and declared the motion carried. Commissioner Stevens was not present for the vote. There will be a meeting of the State Division of Water Resources regarding the Clay Draw project at 9:00 a.m. tomorrow. Commissioner Bruce Adams said that he has a list of people that he would like to invite to the meeting and he will ask Dayna Young, of the Extension Office, to contact them. The color printer in the main copy room crashed recently and needs to be replaced. Norman presented two bids, one from Tiger Direct and the other from CDWG, with the low bid from Tiger Direct in the amount of $1,279.99. The purchase will be made from the Non-Departmental General Fund. Commissioner Bruce Adams made a motion to approve the purchase of a new color printer from Tiger Direct. Commissioner Manuel Morgan seconded the motion and declared the motion carried. Commissioner Lynn Stevens was not present for the vote. Norman reviewed the Commission meeting schedule for October. Commission meetings are scheduled for October 9th, 16th, and October 30th. Norman advised the Commission that the Alcohol Funds Annual Report needs to be signed and filed with the State. The County received $23,759 from the State with matching funds amounting to $28,669 provided from local funds. Commissioner Bruce Adams made a motion to approve Commissioner Stevens to sign the Alcohol Funds Annual Report. Commissioner Manuel Morgan seconded the motion and declared the motion carried. Commissioner Lynn Stevens was not present for the vote. Sandra Asbury - Transitions Sandra reported that their restoration project is underway and that two cabins have been moved to their property with commitments for labor and time to restore them. Sandra asked the Commission if they would be willing to partner with her organization to apply for a grant from the Betty Crocker Company. The grant rules and qualifications were discussed and the Commission agreed to provide a letter of support from the County if we are qualified to do so. Sandra will investigate further and let Rick know the results. The grant money is given based on how many people support the project via the internet. Sandra provided a rough draft of the proposed application for the grant and noted that she has submitted a grant application for $3,000 from our Economic Development Department. Cyndi Eldredge - SJC Personnel Office Cyndi requested approval on the recommendation to hire Warren Keith for the maintenance position. The position is a temporary, full-time position. Commissioner Bruce Adams made a motion to approve hiring Warren Keith for the maintenance position. Commissioner Manuel Morgan seconded the motion and Commissioner Lynn Stevens declared the motion carried by unanimous vote. Cyndi said that she is advertising for a Receptionist/Office Manager position for the Economic Development Office and also for a Library Aid position. Rick Bailey - SJC Administrator Rick presented three (3) building permits for approval. Cody Nielson - 850 East Flour Mill Road, Blanding - Residence Jared Shumway - Bobcat Court, Spanish Valley - Residence Denise & William Perritt - 25 North Porcupine, Old LaSal - Garage Commissioner Bruce Adams made a motion to approve the building permits provided all appropriate signatures are in place. Commissioner Manuel Morgan seconded the motion and Commissioner Lynn Stevens declared the motion carried by unanimous vote. Rick presented the Tamarisk Eradication Plan MOU for signature discussed at the September 25th meeting. Rick will attend a grant hearing for the Navajo Mountain Water Commission which will be held tomorrow in Flagstaff. Brad Shafer and Representatives from Senator Bennett's Office will attend the meeting. Tammy and Rick will attend a CIB meeting on Thursday, October 5th at 10:00 a.m. in Salt Lake City where the request for funding for the LaSal Senior Center will be addressed. Commissioner Stevens also plans to attend the meeting. Rick requested an out-of-state travel request to attend a Sonoran Institute Meeting on October 15th in Santa Fe, New Mexico. He will advise Charles DeLorme, Director of Economic Development, so that he has the opportunity to attend this meeting. Rick is trying to arrange for eight emergency medical staff to attend the first Hazmat Expo in LasVegas. The cost of the trip will be paid from grant funds. Commissioner Manuel Morgan made a motion to approve the travel requests. Commissioner Bruce Adams seconded the motion and Commissioner Lynn Stevens declared the motion carried by unanimous vote. The Utah State Aging Director and staff members visited last Monday and traveled to the southern part of the County and the Reservation. They seemed to be pleased with the benefits being provided through the Aging program. Rick will draft a letter thanking them for their visit. Open Time and Other Business Deputy Sheriff Monte Dalton requested approval to order a radar unit for the Sheriff's Department. The cost of the unit (up to $3,000) will be reimbursed through a pre approved Forest Service Contract. Commissioner Bruce Adams made a motion to approve the purchase of the radar unit for the Sheriff's Department. Commissioner Manuel Morgan seconded the motion and Commissioner Lynn Stevens declared the motion carried by unanimous vote. Shawn Adams was unable to attend the meeting today to discuss issues related to his Environmental Service Contract to operate a landfill in San Juan County. Rick will contact him and arrange for him to attend a future Commission meeting. Commissioner's Reports Commissioner Stevens and Commissioner Morgan attended the Four County Meeting in Bullfrog. An environmental organization as initiated a law suit against SJC to place restrictions on the operation of OHV use and other vehicle use on roads within the Recreation area. All the counties are in agreement that the time has come to combine efforts to determine who has ownership and control of the roads in the Glen Canyon Park. The situation will be reviewed with Shawn Welsh. Commissioner Stevens attended the Utah Navajo Trust Fund Board Meeting on Navajo Mountain. The cost of the Monument Valley Clinic has increased with the higher cost for materials but there are firm contracts in place now and it is unlikely that more money will be requested. The new higher budget was approved by the Utah Navajo Trust Fund Board. The Outdoor Recreation Task Force has advised that Counties have six months to finalize the identification of recreational needs. Commissioner Morgan said that at the meeting in Bullfrog, a report from US Energy was presented saying that they intend to restart the Ticaboo tailings' project. Commissioner Morgan said that the International Uranium's merger with Dennison is expected to provide approximately 400 more jobs in our area. The Antelope Point Marina is built but still needs to be moved to the site. Commissioner Morgan said that the Page Power Station is drilling a water shaft into Lake Powell with Park Service permission. He said that Aramark's Concession contract is up and is therefore open for bids from other companies. Commissioner Morgan attended the Shiprock Fair and said that it was very well attended. Recess: 10:25 a.m. to 11:40 a.m. 11:40 a.m. Public Hearing - Proposed Resolution No. 2006-07 - Regarding Operating Powers and Authority of the San Juan Transportation Special Service Administrative Control Board. Resolution No. 2006-07 RESOLUTION TO MAINTAIN THE SAN JUAN COUNTY TRANSPORTATION DISTRICT TO CONSTRUCT, REPAIR, AND MAINTAIN ROADS WITHIN A SPECIFIED AREA OF THE COUNTY, AND LIMITATIONS OF AN ADMINISTRATIVE CONTROL BOARD FOR THE DISTRICT, SUPERCEDING SAN JUAN COUNTY RESOLUTION 88-8, SIGNED ON OCTOBER 26, 1988 WHEREAS, pursuant to the Utah Special Service District Act, Independent Special Districts, Section 17A-2-1326(5)(a), Utah Code Annotated, (1953, as amended), "[the legislative body of the municipality or county that established the service district may, by resolution, delegate any of its powers to the administrative control board, including the power to act as the governing authority of the service district and to exercise all or any of the powers provided for in Sections 17A-2-1314, 17A-2-1316, 17A-2-1320, and 17A-2-1321."; WHEREAS, "[notwithstanding anything to the contrary in this part, the legislative body of the municipality or county may not delegate the power to: (I) levy a tax on the taxable property of the service district; (ii) issue bonds payable from taxes; (iii) call or hold an election for the authorization of the tax or bonds; (iv) levy assessments; (v) issue interim warrants or bonds payable from those assessments; or (vi) appoint a board of equalization under Section 17A-3-217 or Section 17A-3-317", Section 17A-2-1326(5)(b), Utah Code Annotated, (1953, as amended); WHEREAS, "[the county or municipal legislative body that created the district may revoke in whole or in part any power or authority delegated to an administrative control board or other officers or employees.", Section 17A-2-1326(6), Utah Code Annotated, (1953, as amended); WHEREAS, San Juan County Resolution 88-8, created the San Juan County Transportation and delegated to an Administrative Control Board, "the power to act as the governing authority of the District"; WHEREAS, it is the belief of the current Board of San Juan County Commissioners that this power to act as "governing authority" empowers the Administrative Control Board with authorities well beyond which are required to accomplish the basic functions of the District; WHEREAS, San Juan County Resolution 89-1, added the boundaries of the cities of Monticello, Utah, and Blanding, Utah, to the San Juan County Transportation Special Service District; NOW, THEREFORE, BE IT RESOLVED BY THE COUNTY LEGISLATIVE BODY OF SAN JUAN COUNTY, UTAH, THAT: Section 1. The Board of San Juan Commissioners believes that the public health, convenience and necessity, requires the continuance and maintenance of the San Juan County Transportation District, within San Juan County, Utah, to provide identified and described in the Notice of Intent to establish the District in San Juan Resolution 88-06, signed on September 12, 1988, and reiterated in San Juan Resolution 89-01, signed January 9, 1989. That Notice of Intent states, "The District is to be created for the purpose of constructing, repairing, and maintaining roads within its boundaries through construction, purchase, gift, condemnation or any combination thereof of the facilities or systems necessary to provide said services, and to finance the same, among other ways, through the receipt of Mineral Lease Payments as provided in the Trust Land Management Act, Chapter 1, Title 65B, Utah Code Annotated, 1953, as amended." Section 2. The District shall be administered by an Administrative Control Board which is hereby delegated, without limitation, the power to exercise any or all the powers provided for in Sections 17A-2-1314, 17A-2-1316, 17A-2-1320, and 17A-2-1321 of the Utah Special Service District Act, Independent Special Districts, Section 17A-2-101, et seq. The said Administrative Control Board shall not have the power to: (I) levy a tax on the taxable property of the service district; (ii) issue bonds payable from taxes; (iii) call or hold an election for the authorization of the tax or bonds; (iv) levy assessments for improvements in an improvement district created under Chapter 3, Part 3, Utah Municipal Improvement District Act; (v) issue interim warrants or bonds payable from those assessments; (vi) appoint a board of equalization under Section 17A-3-217 or Section 17A-3-317; or (vii) hold an election, levy a tax or assessment, or issue bonds or interim warrants unless the county or municipal body that created the district has approved. Section 3. Administrative Control Board Members shall be paid a per diem rate as provided in Section 17B-2-404, Utah Code Annotated, (1953, as amended), to the same extent as if they were members of a board of trustees of a local district. PASSED, ADOPTED, AND APPROVED by the Board of San Juan County Commissioners this _________ day of __________________________, 2006, by the following vote: Those voting aye: 2 Those voting nay: 1 Absent: Board of San Juan County Commissioners _____________________________________ Lynn Stevens, Chairman ATTEST: __________________________________ Norman Johnson, County Clerk/Auditor There were seventy-one (71) members of the Public present at the hearings. Commissioner Lynn Stevens opened the Public Hearing and reviewed the proposed amendment to the original Resolution dated October 26, 1988 which established the Transportation District. He explained that the original Resolution empowers the Administrative Control Board with powers beyond which they are required to have and that results in a risk to the County. His opinion is that if the Commission establishes a district, the Commission alone, should have the governing authority to dissolve the district. Mayor Doug Allen said that in order to dissolve itself a district would have to follow specific regulations which include making sure that services provided are going to continue to be provided before they could dissolve the district. He said that there was really no need for the change in the Resolution. There were many questions, comments and a lengthy discussion regarding the proposed amendment. Mr. Trent Shafer, a member of the Transportation Administrative Board said that the Board has been carrying out the necessary duties and feels that this change in the Resolution represents an effort to try and micro manage the various districts. The catalyst for the change in the district resolutions was a challenge to the vote that took place on the 28th of August concerning the vote to close the San Juan Hospital allowing the Blue Mountain Hospital to be eligible for HUD to insure their loan. Because this was not the decision of the San Juan County Health Care Service District, questions arose as to the legality of the vote. The States Attorney General's office was contacted and there are different opinions as to the meaning of "governing authority." Craig Halls, County Attorney's opinion is that the Commission could vote on the issue but that after the election, if there are new members of the Commission, they would be able to rescind the decision made because decisions made by the Commission are non binding on a future Commission. Commissioner Bruce Adams stated that he is not in favor of making the change to the Resolution and does not think that the governing authority needs to be removed from the Resolution because State Statute outlines the intent when setting up a district and this has never posed a problem until now. He takes the stand that "if it is not broke, it does not need fixed." Commissioner Morgan expressed his opinion that taking away "governing power" will not inhibit the districts in carrying out their duties according to State Statute and is in favor of the adopting the amendment to the Resolution. Commissioner Manuel Morgan made a motion to approve Resolution No. 2006-07 amending the section in the original resolution regarding "governing authority." Commissioner Lynn Stevens passed the chair to Commissioner Bruce Adams and then seconded the motion. Commissioner Bruce Adams declared the motion carried by a 2-1 vote with Commissioners Morgan and Stevens in favor and Commissioner Adams opposed. The chair was passed back to Commissioner Lynn Stevens. Public Hearing - Resolution No. 2006-08 - Amending operating powers and authority of the San Juan County Health Care Service District and amending the number of Administrative Control Board members. Resolution No. 2006-08 RESOLUTION TO MAINTAIN THE SAN JUAN COUNTY HEALTH CARE SERVICE DISTRICT TO PLAN FOR AND OPERATE THE COUNTY OWNED HEALTH CARE FACILITIES AND SERVICES WITHIN THE COUNTY AND TO DESIGNATE THE AUTHORITIES, RESPONSIBILITIES, AND LIMITATIONS OF AN ADMINISTRATIVE CONTROL BOARD FOR THE DISTRICT, SUPERCEDING SAN JUAN COUNTY RESOLUTION 88-7, SIGNED ON OCTOBER 12, 1988, AND SAN JUAN COUNTY RESOLUTION 93-1, SIGNED JANUARY 25, 1993, WHEREAS, pursuant to the Utah Special Service District Act, Independent Special Districts, Section 17A-2-1326(5)(a), Utah Code Annotated, (1953, as amended), "[the legislative body of the municipality or county that established the service district may, by resolution, delegate any of its powers to the administrative control board, including the power to act as the governing authority of the service district and to exercise all or any of the powers provided for in Sections 17A-2-1314, 17A-2-1316, 17A-2-1320, and 17A-2-1321."; WHEREAS, "[notwithstanding anything to the contrary in this part, the legislative body of the municipality or county may not delegate the power to: (I) levy a tax on the taxable property of the service district; (ii) issue bonds payable from taxes; (iii) call or hold an election for the authorization of the tax or bonds; (iv) levy assessments; (v) issue interim warrants or bonds payable from those assessments; or (vi) appoint a board of equalization under Section 17A-3-217 or Section 17A-3-317," Section 17A-2-1326(5)(b), Utah Code Annotated, (1953, as amended); WHEREAS, "[the county or municipal legislative body that created the district may revoke in whole or in part any power or authority delegated to an administrative control board or other officers or employees.", Section 17A-2-1326(6), Utah Code Annotated, (1953, as amended); WHEREAS, San Juan County Resolution 88-7, delegated to the San Juan Health Service District Administrative Control Board, "the power to act as the governing authority of the District"; WHEREAS, it is the belief of the current Board of San Juan County Commissioners that this power to act as "governing authority" empowers the Administrative Control Board with authorities well beyond which are required to accomplish the basic functions of the District; WHEREAS, San Juan County Resolution 93-1, expanded the administrative control board from five (5) to six (6) members with two (2) members from the northern part of the County, two (2) members from the central part of the County, and two (2) from the southern part of the County; WHEREAS, it is the belief of the current Board of San Juan County Commissioners that the current make-up of the membership of the Administrative Control Board with an even number of representatives is difficult and desires to have an odd number and still provide fair representation of the diversity of the county; NOW, THEREFORE, BE IT RESOLVED BY THE COUNTY LEGISLATIVE BODY OF SAN JUAN COUNTY, UTAH, THAT: Section 1. The Board of San Juan Commissioners believes that the public health, convenience and necessity, requires the continuance and maintenance of the San Juan Health Service District, within San Juan County, Utah, to provide the health care services identified and described in the Notice of Intent to establish the District in San Juan Resolution 1988-05, signed on September 6, 1988. That Notice of Intent states, "[the purpose and type of service of the health district shall be to own, maintain, conduct, operate, and carry on the business of health care services. To buy sell, ship, store, and otherwise deal, acquire, and dispose of every kind of medical equipment, supplies, and services, scientific instruments, equipment, buildings, real and personal property, convenient for the operation and conduct of the general business of dispensing health care services." Section 2. The District shall be administered by an Administrative Control Board which is hereby delegated, without limitation, the power to exercise any or all the powers provided for in Sections 17A-2-1314, 17A-2-1316, 17A-2-1320, and 17A-2-1321 of the Utah Special Service District Act, Independent Special Districts, Section 17A-2-101, et seq. The said Administrative Control Board shall not have the power to: (I) levy a tax on the taxable property of the service district; (ii) issue bonds payable from taxes; (iii) call or hold an election for the authorization of the tax or bonds; (iv) levy assessments for improvements in an improvement district created under Chapter 3, Part 3, Utah Municipal Improvement District Act; (v) issue interim warrants or bonds payable from those assessments; (vi) appoint a board of equalization under Section 17A-3-217 or Section 17A-3-317; or (vii) hold an election, levy a tax or assessment, or issue bonds or interim warrants unless the county or municipal body that created the district has approved. Section 3. Administrative Control Board Members shall be paid a per diem rate as provided in Section 17B-2-404, Utah Code Annotated, (1953, as amended), to the same extent as if they were members of a board of trustees of a local district. Section 4. The membership of the Administrative Control Board shall consist of seven (7) members with two (2) members from the northern part of the County, two (2) members from the central part of the County, two (2) from the southern part of the County, and one (1) at large member from any area within the county. Section 5. The Administrative Control Board shall be appointed by the Board of San Juan County Commissioners. Their term of service shall be four (4) years staggered in such a way as to avoid having more than four (4) members replaced in the same year. Section 6. Administrative Control Board members may be reappointed to a second term, however, no member shall serve greater than eight (8) consecutive years. Vacancies of the appointed members of the Administrative Control Board, other than the expiration of a term, shall be filled by appointment of the Board of San Juan County Commissioners for the un-expired term of the member whose vacancy is filled. Section 7. The Board of San Juan County Commissioners shall appoint none of its three members to serve on the Administrative Control Board of the District. Section 8. The Administrative Control Board shall elect its Chairperson, Vice-Chairperson, and Secretary each year during the January Board meeting, unless the San Juan County Board of Commissioners directs otherwise. The Chairperson, Vice-Chairperson, and Secretary may serve in those positions for more than one (1) term of office. PASSED, ADOPTED, AND APPROVED by the Board of San Juan County Commissioners this _________ day of __________________________, 2006, by the following vote: Those voting aye: 2 Those voting nay: 1 Absent: Board of San Juan County Commissioners _____________________________________ Lynn Stevens, Chairman ATTEST: __________________________________ Norman Johnson, County Clerk/Auditor The amendment to the original Resolution concerning "governing authority" again elicited many comments from the Public. Five hundred and seventy five signatures on a petition supporting the Resolution were also received by the Commission. There was a lengthy discussion by members of the audience concerning the need for the change to the Resolution. Again, Commissioner Stevens explained that this change was precipitated by the challenge brought forth concerning the authority of the Commission to vote to close the San Juan Hospital to allow the Blue Mountain project to go forth. He feels that this governing authority puts the County at risk allowing a district to have more authority than it needs. Commissioner Bruce Adams read a document into the minutes that reviewed the legality of the vote that took place on August 28, 2006 noting conflicts of interest and other non-compliance issues. Commissioner Adams requested that the document be included in today's minutes as a part of the Public Comment in opposition to the taking of authority from San Juan Health Service District. Esteemed Commissioners, The Commission minutes of March 10, 2003 reveal that on that date Commissioner Morgan gave the other Commissioners (Stevens and Lewis) a copy of a disclosure statement indicating his involvement with the Utah Navajo Health System and health care issues in the County. I have a copy of that disclosure sheet which I would ask be added to the minutes and additional copies for anyone who wants one. (Attachment to October 2, 2006, Commission Meeting Minutes). On May 12, 2003, a presentation was made to this Commissioner wherein a letter of support was requested for the Construction of Blue Mountain Hospital. The Mayor Monticello, a Council member and the County Hospital Board chair spoke in opposition to the letter of support. Blanding City Councilman, Dale Slade, who introduced the project, spoke in favor of a letter of support. Ute Mountain Ute Tribal Council member's Gwen Cantsee, Elaine Atcitty, and Ernest House spoke in favor. Commissioner Lewis made a motion, "that if the entity can proceed without Commission approval that they proceed with that approval." The Motion died for lack of a second. Commissioner Manuel Morgan motioned that the Commission provide the Blue Mountain Hospital a letter of support in their application process. Commissioner Stevens passed the Chair to Commissioner Lewis and seconded the motion. Commissioner Lewis stated he would not accept the motion because he felt Commissioner Morgan had a conflict of interest. After legal discussion, Commissioner Ty Lewis stated, "I have a motion and a second of which I think there is a conflict of interest from the motion. I want that stated in the minutes. I think the motion giver has a personal benefit from the motion. I want that stated in the minutes. I think the motion giver has a personal benefit from this motion. With that, all those in favor of the motion say aye." Commissioners Stevens and Morgan voted in favor. Commissioner Lewis voted against. Commissioner Stevens stated that any letter of support will have to be signed by himself. Commissioner Stevens stated he would give the County 30 days to get some kind of decision from the State of Utah as to whether or not he is within his legal right to sign the letter. His intent, as stated, was to comply with the majority vote of the Commission and sign the letter. The Commission was presented a letter from the City of Monticello which could indicate a conflict of interest for Commissioner Morgan. I have a copy of that letter which I would ask be added to the minutes and additional copies for anyone who wants one. (Attachment to the October 2, 2006 Commission Meeting Minutes). Manuel Morgan's disclosure of March 10, 2003 has been analyzed. Analysis reveals that the disclosure is insufficient, invalid, outdated and violates Utah State Law for a number of reasons. First, the disclosure was made erroneously under UCA section 67-16 1 through 14. These sections contemplate disclosures by members of the State Legislature or persons in policy making posts. The disclosure should have been made under UCA section 17-16a-1 through 12 which applies to County Officials. However, even if the proper sections were 67-16 1 through 14, Commissioner Morgan's disclosure would be invalid and violate State Law, both then and in contemplation of action present on the agenda. Under section 67-16 6 there is no evidence that there was disclosure to the State Attorney General's office of the nature of the proposed action. The AG opinion does not state whether it has reviewed the disclosure and is facially invalid for other reasons that will be explained hereafter. The disclosure also fails to include the nature of the transaction to which service is to be rendered (the construction of Blue Mountain Hospital and the use of Commission power to facilitate its construction) and the nature of the service to be performed (the taking away of special district powers so that the Commission can close San Juan Hospital). Section 67-16-5 prohibits accepting any "gift of substantial value or a substantial economic benefit tantamount to a gift that would tend to influence a reasonable person to depart from the faithful discharge of the person's duties." "Economic benefit tantamount to a gift" is defined as "compensation received for private services rendered at a rate substantially exceeding fair market value of the services." Market value for sitting on private Boards similar to the Utah navajo Health Services Board of which Commissioner Morgan is a member is $3,000 to $5,000 per year. Morgan's compensation for Utah navajo Health Services is at least $55,000 (in 2005, according to its Form 990) or ten times higher than market value. It is likely that Commissioner Morgan has been paid a significant salary at Utah Navajo Health services since he first disclosed his interest in 2003. It is unknown what his Director's salary is for blue Mountain Hospital. In any event, the compensation is "substantially" exceeding market value with the meaning of the Statute. It is also doubtful that Commissioner Morgan has earned this salary as will be explained hereafter. As a result, Morgan has accepted a gift in violation of Utah Law to influence his actions as County Commissioner. Commissioner Morgan admits he has the "assignment to oversee and promote health care for the citizens of San Juan County." Commissioner Morgan regulates business in his function of Commissioner. Morgan misunderstands the provisions of UCA 67-16-7. He believes he only need disclose 10 percent ownership in a company. However, the section specifically states that "every public officer who is an officer, director or agent of any business entity....shall disclose any such position held and the precise nature and value of the public officer's interest upon first becoming a public officer and again whenever the interest is significantly increased." Commissioner Morgan's disclosure fails because it does not include the "precise nature" of the interest, has not been filed every January, does not disclose his 455,000 directors' salary, and the value of any other interest such as that of his position on the Blue Mountain Hospital board. Without knowing what he made in 2003, 2004, and 2006 and assuming no further increase in salary for his tribal liaison position at Utah Navajo Health System, inc., the Commissioner has earned at least 110,000 for advocating in behalf of Blue Mountain Hospital. In 2002, blue Mountain Hospital was a "grant donee" of $800,000 from Utah navajo Health Systems which allowed the Board of Director of Blue Mountain Hospital to continue to operate and upon which Board Morgan sat. Finally, the liaison position requires Morgan to spend 40 hours per week in his position. If Mr. Morgan is truly earning his pay and that for which he is compensated on other boards, he has little time to spend on his duties as County Commissioner. Because the disclosure violates Utah Law as stated in these sections, it is invalid. Section 67-16-9 prohibits conflicts of interest. It states "no public officer shall have personal investment in any business entity which will create a substantial conflict between his private interests and his public duties." Morgan's personal investment is his salary and bonuses for performance in an entity whose sole purpose is to build Blue Mountain Hospital. Further, Morgan sits on the Board of Directors of Blue Mountain Hospital. Morgan's action in withdrawing powers from the Health Services District to approve the construction of a hospital upon whose Board he sits is a clear conflict of interest. UCA sections 67-16-12 and 15 allow for removal from office in such an instance and a right to rescind any action taken. This is an attempt by an outgoing public official to ensure further employment after his term ends by preserving his job in the private sector. It is to make sure that Blue Mountain gets built so that he can continue to sit on its Board and receive that salary. Section 67-16-4 prohibits this action when it sates that it is improper to accept any employment that would "impair his independence of judgment in the performance of his duties" or "interfere with the ethical performance of his duties." Commissioner Morgan should have filed un UCA section 17-16a-1 through 12 because he is a County Official. These provisions are very similar, if not exact, in nature to those of 67-16-1 through 14. Therefore, Commissioner Morgan has violated these sections for all the reasons previously stated. In addition, section 17-16a-6 requires that a conflict disclosure be filed in January of every year in which the interest exists. Commissioner Morgan has failed to make the required disclosures every January since 2003. Commissioner Morgan has acted with impunity regarding his promotion of issues beneficial to Blue Mountain Hospital. Morgan relies upon two opinions issued by County Counsel and the State attorney's office, respectively. Both of these opinions state that M organ should have filed under 17-16-1 through 12 as previously stated, but find no conflict. The reason that they did not find a conflict is that the disclosure was inadequate. Had Morgan disclosed the $110,000 know salary from the Utah Navajo Health systems together with the salaries from the Blue Mountain Hospital Board of Directors, that six figure number would have changed both legal opinions. The opinions themselves are deficient because neither states the facts and disclosures upon which they rely. In any event, County Counsel Halls stated "that the Commissioner has placed himself in a position where he has conflicting duties or interests." Further, Halls stated that Morgan should not vote, recuse himself or abstain from "any health care issue as long as he serves on the Board of Utah Navajo Health Systems and Blue Mountain Hospital." Therefore, I respectfully request that Commissioner Morgan recuse himself and cast no vote on these agenda items nor upon the proposed Resolutions set for next week. After Commissioner Adams read the document, Commissioner Stevens asked that no comments be taken regarding the content of the document because this was not the venue to discuss the issues contained in the document. He further said that he was disappointed with this issue being brought up. Public comment regarding this issue was discouraged. There was considerable discussion from the persons attending pertaining to the proposed Resolution and heath care in general. There were also comments from three members of the Native American Community who gave their opinions regarding health care in the San Juan County. They expressed the need for more accessability to health care services and said that it is a hardship for many who have to travel long distances to get needed services. They expressed their frustration and their support for Commissioner Manuel Morgan's actions to date regarding the hospital issue because they would like to see the Blue Mountain Hospital project to go forward. Commissioner Manuel Morgan made a motion to amend Resolution No. 2006-08 with the changes concerning the "governing authority of the Health Care Service District and the change in the number of Administrative Control Board Members. Commissioner Lynn Stevens passed the chair to Commissioner Bruce Adams and seconded the motion. Commissioner Bruce Adams declared the motion carried by a 2 to 1 vote. With Commission Stevens and Morgan voting in favor and Commissioner Bruce Adams voted against. Commissioner Bruce Adams passed the chair back to Commissioner Lynn Stevens. Meeting Adjourned: 2:41 p.m. Check No. Payee Amount 34346 Adams, Bruce 412.04 34347 Aflac 240.90 34348 AFSCME 52.20 34349 Amazon Credit Plan 29.90 34350 Amerigas-Blanding 660.76 34351 Barnes Distribution 112.59 34352 Benally, Debbie 36.00 34353 Black, Von 40.00 34354 Blanding City 27,467.57 34355 Blue Mountain Foods 43.50 34356 Blue Mountain Meats Inc. 814.74 34357 Bluff Service Area 1,380.00 34358 Bob Barker Company, Inc. 421.22 34359 Booth Fire Protection, Inc. 715.00 34360 Boy, Christina 18.00 34361 Boy, Leroy 28.00 34362 Brandford Tire 12.00 34363 Bunker, Bruce 715.84 34364 BW Coral Hills 231.75 34365 Channing Bete Co., Inc. 2,633.58 34366 Chemsearch 461.39 34367 Child Support Services 917.55 34368 Cingular wireless 67.92 34369 Colonial Life and Accident Ins. 1,130.31 34370 Conde' Nast Traveler 10.00 34371 Conseco Health Insurance Co. 1,575.85 34372 Cortez Diesel Sales, Inc. 395.02 34373 Craig A. Hoggan 571.21 34374 Creamer & Noble Engineers 76,606.91 34375 Diamond C. Fuels, Inc. 70.94 34376 Dine' Distribution 556.96 34377 Dineh Design 388.50 34378 Equitable-Equi-Vest 2,832.50 34379 Ferrellgas 852.72 34380 Four Corners Welding & Gas 21.00 34381 Four States Tire & Service 1,251.43 34382 Information Only Check 0.00 34383 Frontier 1,049.91 34384 Goulding's 65.34 34385 Grainger 575.87 34386 Grand Valley Foods 214.16 34387 Halls, Craig C. 453.40 34388 Hampton Inn & Suites - Orem 64.64 34389 Hensley Battery & Electrical 235.79 34390 Hollie, Calandra 10.00 34391 Honorable James Harris 100.00 34392 Imperial Fastener Co., Inc. 491.51 34393 Ingram Library Services 499.56 34394 J.C. Hunt Co., Inc. 1,971.91 34395 Jacco Distributing co. 138.40 34396 JCI Billing Services 980.00 34397 Johnson, Leif M. 250.00 34398 Johnstone Supply 24.68 34399 Jones & Demille Engineering 42,680.00 34400 Joyce Guymon Smith 762.33 34401 JVP, Inc. 41.11 34402 Karen Blackwater 330.00 34403 Keyes, James D. 25.00 34404 Larry M. Mason 231.40 34405 Larson, Linda 36.00 34406 Lawson Products, Inc. 508.55 34407 Les Olsen Co. 1,652.09 34408 Maryboy, Sara 28.00 34409 McComb, Mitch 35.00 34410 Meadow Gold Dairies, Inc. 348.00 34411 Elsie Begay 23.00 34412 Alvin Wagner 65.00 34413 The Oil and Gas Asset 6.00 34414 Dallen Anderson 34.00 34415 Monticello Home & Auto Supply 27.82 34416 Monticello Mercantile 10.09 34417 Morgan, Manuel 394.85 34418 Motor Parts 22.80 34419 Mountain West Truck Center 760.79 34420 Naatsis' Alan Community School 300.00 34421 Nakal, Mary Rose 36.00 34422 Nationwide Retirement Solution 107.62 34423 Navajo Mountain Water User 450.00 34424 Navajo Tribal Utly Authority 101.43 34425 Newman Traffic Signs 72.18 34426 Nicholas & Company 1,532.95 34427 Nielson, Jonathan 80.00 34428 Nolte Associates 1,437.66 34429 Office Depot 64.74 34430 Otis Elevator Company 618.00 34431 Pacific Plumbing Specialities 74.89 34432 Page Brake Warehouse 592.83 34433 PEHP 1,904.80 34434 Precis Communications 38.45 34435 Prehospital emergency Care 3,960.00 34436 Provident Life and Accident 138.50 34437 Questar Gas 82.95 34438 Quill corporation 382.78 34439 Randall, Sanford 60.00 34440 Recorded Books, LLC 11.90 34441 Redd's True Value 179.93 34442 Rockmount Research & Alloys 211.25 34443 Rocky Mountain Power 83.95 34444 Ross Products, Inc. 316.80 34445 San Juan County 7,761.88 34446 San Juan Credit Union 630.00 34447 San Juan Health Care Services 725.04 34448 San Juan Pest Weed & Termite 175.00 34449 Schultz, William L. 2,500.00 34450 SemMaterials L.P. 24,902.13 34451 SHELL 133.63 34452 Society for RangeManagement 85.00 34453 Specialty Technical Publishers 463.00 34454 Stephen Wade Auto 310.79 34455 Sysco Intermountain Food Svc. 1,162.50 34456 The Mine Supply Co. 730.30 34457 TR Electric & Supply Company 241.34 34458 Trace Analytics, Inc. 400.00 34459 Tri-Hurst Construction Inc. 89,896.18 34460 Underground Services 438.70 34461 UniFirst Corporation 144.74 34462 UPS 43.79 34463 USU 1,881.47 34464 Utah State Retirement Fund 71,170.01 34465 Utah State Tax Commissioner 16,310.93 34466 Verizon Wireless 912.36 34467 Ward, Jerry 80.00 34468 Waste Management 131.95 34469 Wheeler Machiner Company 1,058.70 34470 Wilcox, Robert J. 66.00 34471 Young's Machine Co. 45.00 34472 Blanding City 272.20 34473 Grand Valley Foods 108.10 34474 Nicholas & Company 762.56 34475 Salt Lake Valley GMC 25,143.00 ___________________________ _______________________________ Lynn Stevens, Chairman Dianne F. Neuss, SJC Deputy Clerk