SAN JUAN COUNTY COMMISSION MEETING December 18, 2006 The regular meeting of the San Juan County Commission was held on December 18, 2006 at 10:00 A.M. in the Commission Room at Monticello, Utah. Present: Lynn Stevens, Chairman Manuel Morgan, Vice Chairman Bruce Adams, Commissioner Rick Bailey, San Juan County Administrator Norman L. Johnson, SJC Clerk /Auditor Dianne F. Neuss, SJC Deputy Clerk Commissioner Bruce Adams made a motion to approve the minutes of December 11, 2006 and the motion was seconded by Commissioner Manuel Morgan. None opposed. Commissioner Lynn Stevens declared the motion carried. Charles DeLorme, SJC Director of Economic Development Charles advised the Commission that the Telecommunications Conference scheduled to take place on Tuesday, January 16th at 10:00 a.m. is in conflict with the regular Commission Meeting scheduled for the same day (Martin Luther King Day is observed on Monday). It was decided that the Commission Meeting be rescheduled for January 29th . Norman will advertise the change. Charles said that he is considering two people to facilitate the meeting. He will solicit agenda items. Walter Bird - SJC Assistant Attorney Walter circulated a draft proposal to the Commission with additions and changes to the Personnel Policy and Procedures Manuel. The changes relate to the County's internet use and retirement benefit policies. Employees will be provided a new Policy and Procedure Manual at the beginning of the year and meetings will be held with employees to explain the changes. Commissioner Manuel Morgan made a motion to approve the personnel policy changes and additions. Commissioner Bruce Adams seconded the motion and Commissioner Lynn Stevens declared the motion carried by unanimous vote. Commissioners discussed the need to put together an enabling resolution relating to the formation of a Planning and Zoning Commission. Commissioner Stevens said that two people he has contacted are willing to serve on this commission. The need to provide training for members of this commission was identified and discussed. Commissioner Adams said that USIP provides training classes and he will let Rick know when they will be held. Lynn Laws and Wanda Franklin - SJC Road Department Lynn and Wanda presented several annual bids for the Road Department for approval. Oil, Grease and Antifreeze - One bid was received for the 2007 Oil, Grease and Antifreeze from BCL distributing, 1261 South Main 79-6, Blanding, Utah 84511 Filters - Two bids were received for filters for 2007, one from Monticello Auto and the other from Page Break. The low bid from Page Break was recommended. Batteries - Three bids were received from Standard Batteries, Hensley Battery Company and from Monticello Auto & Home. The low bid was from Standard Batteries and was recommended. Culverts and Pipe - Two bids were received, one from Big R and one from Contech. Big R was the low bidder for Pipe and Contech came in lower on End Sections. The recommendation is to purchase the Pipe from Big R and the End Sections from Contech. The group discussed the various bids, the location of the companies bidding and details supporting the final recommendations. Commissioner Manuel Morgan made a motion to approve the recommendations for procurement of road supplies. Commissioner Bruce Adams seconded the motion and Commissioner Lynn Stevens declared the motion carried by unanimous vote. Computer Bids - Jim Keyes, USU Extension & Norman Johnson for County Attorney Jim requested approval for the purchase of a new laptop computer. Bids were obtained from Tiger Direct and Dell.com. The low bid in the amount of $763.21 from Tiger Direct was recommended. Jim said that the money for this purchase was left over from his 2006 budget. Norman also presented a request from Craig Halls, County Attorney, for the purchase of a laptop computer. A bid from Tiger Direct and one from Dell.com were received with the low bid from Tiger Direct in the amount of $763.21. This purchase will be paid from the 2006 budget. Commissioner Bruce Adams made a motion to approve the computer purchases for Jim Keyes and Attorney Craig Halls. Commissioner Manuel Morgan seconded the motion and Lynn Stevens declared the motion carried by unanimous vote. Norman Johnson - SJC Clerk/Auditor Norman presented two Beer License renewals for approval and signature. Richard Neff - Valle's Trading Post, Mexican Hat, Utah Robert L. Mueller - Mexican Hat Lodge, Mexican Hat, Utah He also said that he expects to receive several more Beer License Renewal requests and would like approval to issue the Certificates when they are received and have them ratified at the next Commission Meeting. The 2006 Certificates are invalid on December 31, 2006. Commissioner Morgan made a motion to approve the Beer License Renewals for Richard Neff and Robert L. Mueller and for Norman to issue any renewal requests which will be ratified at the January 2nd Commission Meeting. Commissioner Adams seconded the motion and Commissioner Lynn Stevens declared the motion carried by unanimous vote. Norman advised the Commission that the Commission Meeting Schedule needs to be published for 2007. After discussion, it was decided that the meeting time should be changed from 10:00 a.m. to 9:00 a.m. Due to the swearing in of elected officials at the first Commission Meeting of the year, it was decided to begin the January 2nd meeting at 10:00 a.m., as previously planned, but that meetings will be scheduled at 9:00 a.m. for the remainder of the year. Norman will make the change and post the Annual Meeting Schedule Notice. Commission Assignments will be an agenda item for the January 2nd meeting and a list will be provided. Heather & Jared Palmer - Zoning Change Heather and Jared Palmer, from Spanish Valley, requested a zoning change so that they can relocate the Dole Ice Plant in back of their home in Mt. Peale Estates in Spanish Valley. Mr. Palmer has been working at the existing Dole Ice Plant and is planning to purchase the business. A request for the zoning change was sent in writing to Bruce Bunker. They were advised to contact the neighbors in their subdivision for their approval. A notice will be placed in the newspaper and a Public Hearing date will be set. They will contact Rick Bailey to begin the process of approval. Rick Bailey - SJC Administrator Rick presented one building permit for approval and signature. Lee & Terra Memmott - 4630 Sunny Acres Lane, Spanish Valley - Residence Commissioner Bruce Adams made a motion to approve the building permit providing all appropriate signatures are placed. Commissioner Manuel Morgan seconded the motion. Commissioner Lynn Stevens declared the motion carried by unanimous vote. Commissioner Bruce Adams made a motion to go into Public Hearings for the 2006 Budget Adjustments, Elected Official's Salary Adjustment and the 2007 Budget. Commissioner Manuel Morgan seconded the motion. Commissioner Lynn Stevens declared the motion carried by unanimous vote. Public Hearing - 11:00 a.m. - Adjustment to 2006 General Fund Budget John Fellmeth and Norman Johnson John gave a summary of recommended 2006 budget adjustments answering questions from Commissioners. He presented actual expenditures in comparison to the budget and recommended making a slight adjustment to the total budget. His suggestion was to increase the General Fund budget by $200,000 to accommodate year end anticipated expenses which would bring the 2006 General Fund Budget to $8,042,544. He said that although we may come in on budget or even under budget, he recommends that the adjustment be made. John and Norman discussed the status of individual department budgets, including the B-Road Fund, the Public Health Fund, Emergency Medical, Capital Projects, Landfill, Library and Tort Liability. The Tort Liability budget should be increased by $15,855, the Road Capitol Fund by $15,000 and the Tax Stability Trust Fund by $120,000 to accommodate increased costs and revenue in these areas. There were no comments from the public attending the hearing concerning the 2006 Budget. Commissioner Bruce Adams made a motion to approve the proposed recommended adjustments to the 2006 budget and authorize budget officials to make departmental adjustments as needed. Commissioner Manuel Morgan seconded the motion. Commissioner Lynn Stevens declared the motion carried by unanimous vote. A Schedule of the 2006 Budget Adjustments are made as an attachment to the minutes. 11:15 a.m. - Public Hearing - SJC Elected Officials Salary Adjustment The Commission placed on the table a proposed COLA (Cost of Living Adjustment) for employees and elected officials in the amount of 3% with a merit increase of 2%. The discussion became a part of the 2007 Budget Public Meeting. 11:30 a.m. - Public Meeting - 2007 SJC General Fund & Budgets The 2007 budget, as it relates to the proposed adjustments to compensation for elected officials and employees, was discussed at length. John reviewed the 2007 Budget and discussed details relating to the individual departmental budgets. It was noted that even with the proposed payroll adjustments, the General Fund Budget would be balanced without the use of reserve funds. Mary Shumway, San Juan County resident, gave a brief presentation, including the history of how previous Commissions have handled spending. She distributed a chart detailing the County's assessed valuation from 1987 to 2007. A discussion and explanations were exchanged regarding the expenditures over time and related points of view. Ms. Shumway's main concern is the future of San Juan County finances and developing stategies for management of County funds. She is concerned with the reduction in funds over the years. Commissioner Stevens gave his point of view, that is, that taxpayers deserve to get the services they expect and, although Ms. Shumway's opinion is well taken, he questioned how much money should be kept in savings for the future at the expense of not providing adequate and needed services. Ms. Shumway questioned the Commission granting an increase in the compensation for elected officials and employees in addition to benefits the County provides. Commissioner Stevens reviewed his reasoning for giving staff and elected officials a cost of living and merit increase as well as retirement benefits related to health insurance. He noted that studies have shown that it is much more cost effective to reward employees for their good service. The cost of turnover and retraining staff, as well as the improper or excessive use of sick time and other benefits outweighs, by far, the cost of providing competitive wages and benefits. Appreciation was expressed to Mary for her interest and involvement in local governmental affairs. Another issue discussed was Reserve Funds that are held by various departments especially related to the San Juan Mental Health and Substance Abuse Special Service District. Even though there is approximately a $750,000 reserve fund at the District, the County still contributes $75,000 a year to this department. Norman explained that the reserve fund is also utilized to some degree but that the contribution from the County has been provided for the last three years. John noted that it is not a serious concern to the General Fund because the money comes from the Public Health Tax Budget. There were no other comments from the public. Commissioner Bruce Adams made a motion to approve the COLA (Cost of Living Adjustment) of 3% for County elected officials and employees as well as a merit increase of 2% for elected officials and employees. Commissioner Manuel Morgan seconded the motion. Commissioner Lynn Stevens declared the motion carried by unanimous vote. Commissioner Bruce Adams made a motion to the approve the 2007 SJC General Fund and related Budgets with appropriate adjustments. Commissioner Manuel Morgan seconded the motion and Commissioner Lynn Stevens declared the motion carried by unanimous vote. The entire General Fund and related 2007 Budgets are attached and made a part of the minutes hereof. Open Time and Other Business Rick Myers requested Commission approval for Michael Adams' subdivision called Cedar Tree, North of Monticello. Rick explained the rules for approving subdivisions focusing on sewer issues. A requirement for subdivision approval is for the developer to perform a perk test on each lot in the subdivision. If the perk test fails, then the state regulates allowing other types of sewer systems. Mr. Michael Adams noted that the perk tests on each lot have been completed and that they perform the test in the middle of each lot. Rick noted that just because the perk test fails in one part of the lot, does not mean that it would fail in other areas of the lot. He said that the County can approve going forward with the subdivision but that the Plat needs to designate which lots have failed the perk test. This information should also be provided to the buyer and noted on the deed as well. Commissioner Stevens reiterated the need for the Planning and Zoning Commission to be formed and up and running as soon as possible. In the meantime, Rick and the Commission will continue to handle subdivision issues in a timely manner so that projects will not be held up. Commissioner Adams stated that Michael Adams is his brother and he has no financial interest in the project but will not vote on approving the subdivision. Commissioner Manuel Morgan made a motion to the approve the Cedar Tree Subdivision. Commissioner Lynn Stevens passed the Chair to Commissioner Adams and seconded the motion. Commissioner Adams declared the motion carried with Commissioners Stevens and Morgan in favor and Commissioner Adams abstaining from the vote. Commissioner Adams passed the Chair back to Commissioner Stevens. Rick presented a request for approval of Phase II of Kevin Carroll's Business Park subdivision. Rick recommended the present request be approved but said that before additional Phases are approved, Mr. Carroll will need to contact UDOT to address the issue of highway access into and around the development. Commissioner Bruce Adams made a motion to approve Phase II of the subdivision. Commissioner Manuel Morgan seconded the motion. Commissioner Lynn Stevens declared the motion carried by unanimous vote. A request was received from the Governor's office to approve the recommendation of John Keys as a nominee to serve as trustee of the Grand County Water Conservancy District. This position was formerly held by James L. Walker who recently resigned. Rick noted that Mr. Keys is a retired federal executive from the U.S. Bureau of Reclamation. Commissioner Bruce Adams made a motion to approve the nomination of John Keys as trustee of the Grand County Water Conservancy District. Commissioner Manuel Morgan seconded the motion. Commissioner Lynn Stevens declared the motion carried by unanimous vote. Rick requested the Commission to approve the Bookmobile budget from the State. Although there are questions related to the funding allocations, he recommended approval and to continue to work on trying to obtain additional funds or adjustments Commissioner Bruce Adams made a motion to approve the 2007 Bookmobile Budget. Commissioner Manuel Morgan seconded the motion and Commissioner Lynn Steven declared the motion carried by unanimous vote. Rick reported that he received a letter from Steve Simpson, Attorney for Glen Gurney concerning building a hanger at the Bluff Airport. The letter states that they are unable to obtain a bond for $25,000 required by the County. Rick recommended waiving the required bond for the building. He strongly recommended that the agreement clearly stipulate that the approval is only for the building and not for fuel cells. Commissioner Manuel Morgan made a motion to approve building a hanger excluding the fuel cells, without a bond. Commissioner Bruce Adams seconded the motion. Commissioner Lynn Stevens declared the motion carried by unanimous vote. Rick informed the Commission that International Uranium Mining Company has changed their name to Denison Corporation following a merger and that the property lease they have from the County is paid. Rick said that Charles DeLorme found a pile driver that can be made available for the Bluff Swinging Bridge repair project. Rick traveled to So. Carolina, as planned, to look at a fire truck for the County. He recommends purchasing it as it has everything that is needed at the right price. $100,000 of the cost will be paid with grant money from the USDA and the remainder will come from the budget. Commissioner Bruce Adams made a motion to approve the purchase of the fire truck. Commissioner Manuel Morgan seconded the motion. Commissioner Lynn Stevens declared the motion carried by unanimous vote. Commissioner Morgan met with Cheryle Harvey and she had already received an e-mail informing her that she was no longer on the Library Board. She was very disappointed and said that she would like to continue to serve on the board but had not been notified of meetings and therefore did not attend. Rick said that he will look into this further. The next meeting of the Library Board is on January 10th. The Commissioners agreed to place the previous decision on hold regarding Ms. Harvey serving on the Library Board. Commissioner Manuel Morgan was presented with a gift certificate in thanks for his four years of service as a San Juan County Commissioner. He may attend the swearing in of elected officials on January 2nd at 10 a.m. Meeting Adjourned: 1:50 p.m. Check No. Payee Amount 35782 Adams, Greg 105.00 35783 Alan's Body Shopt 25.00 35784 Alco Discount Store 7.41 35785 ALLTEL 10.44 35786 Alvarez, Vickie 100.00 35787 Applied Concepts 94.00 35788 Bailey, Richard M. 303.44 35789 Black, Gary A. 40.00 35790 Blanding Clinic 142.80 35791 Blanding Justice Court 115.00 35792 Blue Mountain Meats Inc. 816.20 35793 Blue Mountain Panorama 216.00 35794 Booth Fire Protection, Inc. 216.00 35795 Bound Tree Medical, LCC 951.67 35796 Branford Tire 224.00 35797 Bronson, David 40.00 35798 Bunker, Brad 60.00 35799 BusinessWeek 62.82 35800 BW Cottontree Inn 120.00 35801 Cakes Plus 101.95 35802 Canyonlands Tire 14.50 35803 Carhart Feed & Seed, Inc. 49.94 35804 CIMS 297.00 35805 Clark Security Products, Inc. 64.47 35806 Colorado League RC&C 230.00 35807 Comfort Suites 124.72 35808 Communications Plus 427.50 35809 Connected Technologies 1,885.92 35810 Cortez Diesel Sales, Inc. 222.25 35811 Creamer & Noble Engineers 14,980.79 35812 Crystal Inn 77.99 35813 D & M Wire Rope, Inc. 2,163.31 35814 Dan O'Laurie 25.00 35815 DOI-USGS 818.20 35816 Dyer, Thomas 440.00 35817 Ekker, Terry 60.00 35818 Empire electric Assoc. Inc. 4,725.78 35819 Ensle, Shirley 160.00 35820 ESRI, Inc. 1,300.00 35821 EVCO House of Hose 2,915.23 35822 Factory Parts Express 456.13 35823 Factory Parts Express 453.01 35824 Fairmont Supply Company 11.26 35825 Filter Technologies 212.96 35826 Fisher, Mahana M.D. 300.00 35827 Flooring America 2,329.00 35828 Flower Shop 146.00 35829 Four Corners Welding & Gas 67.12 35830 Four States Tire & Service 10,138.89 35831 Fuller, K. Loren 300.00 35832 Gallegos, Tamara 123.00 35833 Galls Incorporated 58.98 35834 Gascard 42,078.47 35835 Getgo Imaging Inc. 990.00 35836 Grainger 581.85 35837 Grand Valley Foods 291.17 35838 Hampton Inn-Provo 280.16 35839 Hewlett Packard Co. 1,396.00 35840 Hillhouse, Jared 152.70 35841 Hilton Garden Inn - Layton 198.00 35842 Holiday Inn-Price 60.00 35843 Holt, Thayne 60.00 35844 Homedew, David L. 20.00 35845 Hurst, Val 20.00 35846 Inscription House 174.65 35847 Intermountain Drug Testing 40.00 35848 Interational Code Council Inc. 100.00 35849 Jason Shumway 120.00 35850 Jesus, Abel 20.00 35851 Johnson, Norman L. 134.39 35852 JVP, Inc. 19.38 35853 Korene Blackwater 1,780.00 35854 Lacy, B. Mike 68.00 35855 Lamplight Restaurant 1,813.70 35856 Larry H. Miller Ford Truckland 24.33 35857 Larry Miller Mopar Parts Center 323.01 35858 Lee, Alvin 560.00 35859 Les Olsen company 200.86 35860 LexisNexis 464.00 35861 Little America - SLC 94.00 35862 Meadow Gold Dairies, Inc. 500.50 35863 Med-Tech Resource, Inc. 220.16 35864 Medtronic Physio-Control Corp. 594.27 35865 Monticello City 136.10 35866 Monticello Home & Auto Supply 0.99 35867 Montrose County Sheriff 10.00 35868 Motor Information Systems 1,500.00 35869 Motor Parts 168.08 35870 Mueller, Lou 280.84 35871 NACRC 55.00 35872 Navajo Mountain Chapter 498.89 35873 Navajo Tribal Utly authority 70.16 35874 Nicholas & Company 1,668.00 35875 Office Depot 378.72 35876 Oljato Chapter 485.00 35877 Orkin Inc. 43.09 35878 Page Break Warehouse 256.28 35879 Perkins, Chad H. 60.00 35880 Perkins, Kylor 100.00 35881 Pilling, Don 60.00 35882 Pirtle, Mike 100.00 35883 Preston T. Johnson 40.00 35884 Price, Tyler 55.53 35885 Professional Garage Door Co. 103.90 35886 Professional Serv. Industries 3,199.40 35887 Quality Locksmithing 40.00 35888 Questar Gas 3,295.30 35889 Information Only Check 0.00 35890 Quill Corporation 2,605.39 35891 Qwest 55.83 35892 Randall, Howard 832.59 35893 Randall, Laurie 60.00 35894 Red Mesa Trading Co. 193.14 35895 Regence Blue Cross Blue Shield 50,452.77 35896 Rockhurst College Continuing Ed. 199.00 35897 Rocky Mountain Power 262.35 35898 Rocky Mountain Home Care 5,769.94 35899 Ross Products, Inc. 269.28 35900 San Juan Building Supply, Inc. 76.44 35901 San Juan Clinic 285.60 35902 San Juan County 7,668.88 35903 San Juan Health Care Services 311.53 35904 San Juan Record 94.80 35905 San Juan School District 164.90 35906 Schaugaard, Gaylen 20.00 35907 Scheer, Lois 105.00 35908 SJC Landfill Operations 61.90 35909 Slavens Incorporated 32.72 35910 Southwest Diesel Specialists 330.44 35911 Southwest Printing Co. 3,430.00 35912 State of Utah 6,347.00 35913 Steele, Albert E. 80.00 35914 Sysco Intermountain Food Svc. 629.16 35915 Taylor, Susan 319.19 35916 Tel America, Inc. 69.87 35917 TigerDirect 313.95 35918 Tri-Hurst Construction Inc. 68,193.56 35919 Turri, Bob 690.00 35920 UniFirst Corporation 153.24 35921 UPS 32.09 35922 Utah Correctional Industries 923.95 35923 Utah Dept. of Workforce Serv. 805.04 35924 Wal-Mart Store #01-0966 919.60 35925 Ward, Meghan G. 40.00 35926 Webb Automotive Group 1,102.55 35927 Wellington Justice court 165.00 35928 Wheeler Machinery Company 1,651.69 35929 Wheeler, Kyle 20.00 35930 Wojcik, Tylor 100.00 35931 Zee Medical Co. 132.66 35932 Adams, Greg 212.40 35933 Blue Mountain Meats, Inc. 14.50 35934 Carhart Feed & Seed, Inc. 15.80 35935 Connected Technologies 39.99 35936 Grand Valley Foods 751.69 35937 Quill Corporation 275.88 ______________________________ _____________________________ Lynn Stevens, Chairman Dianne F. Neuss, SJC Deputy Clerk