SAN JUAN COUNTY COMMISSION MEETING MINUTES October 21, 1991 The regular meeting of the San Juan County Commission was held at 10:30 A.M. in the commission chambers at Monticello, Utah Present: Ty Lewis, Chairman Bill Redd, Commissioner Dena Hunter, Deputy Clerk Excused: Mark Maryboy, Vice Chairman Rick Bailey, Administrative Assistant Edward Tapaha, Process Facilatator A motion to approve the minutes of the October 15, 1991 meeting as amended was made by Commissioner Redd and seconded by Commissioner Lewis. UNANIMOUS. CURRENT BUSINESS Monticello City Monticello City Councilman Joe Slade met with the Commission to present the following priority list of work at the Monticello Airport: 1. Trailer $10,000.00 A. Iron filter 550.00 B. Fence trailer 800.00 C. Unicom for above 1,100.00 D. Moving Cost for trailer 500.00 2. Weather Station & Altimeter 1,000.00 3. Paint Existing Terminal Building 400.00 4. Oil and Light Parking Area A. Cement or oil in front of the terminal building including removing old fence and extending a new fence. B. Oil in the parking area C. Exterior hanger lights 5. Infra Red Hanger Heater $1,200.00 A. Vacuum cleaner 100.00 B. Fire Extinguisher 120.00 The costs are approximate costs. A motion to approve the cost share with Monticello City on a 50/50 basis was made by Commissioner Redd and seconded by Commissioner Lewis. UNANIMOUS. Monticello Library Representatives from the Library Board, Monticello Senior Citizens and Monticello Museum, Vee Carroll, Joyce Martin, Ginger Tracy, Maxine Allred and Verla Marx met with the Commission to discuss the enlarging of the Senior Center and moving the museum upstairs to the multi-purpose room at the library. Mrs. Carroll presented two sketches she had made of proposed additions to the library on the east side of the building. After a discussion about the use of the library building it was the decision of the Commission to have Mrs. Martin organize and chair a meeting with the Senior Citizens, Museum Board, Library Board and Monticello City to come up with a plan for the Senior Citizens, museum and the library. Mrs. Martin will then report the outcome of the meeting to the Commission. Handicapped Access/County Buildings Maintenance Supervisor Dell Hunter met with the Commission to discuss attending a meeting concerning the required access to the handicapped in all the County owned buildings. The Commission said they felt Mr. Hunter should attend this meeting. Public Safety Building/Heating System Maintenance Supervisor Dell Hunter presented pictures that were taken by Payson Sheet Metal Company when they conducted an analysis of the heating problems at the Public Safety Building. Mr. Hunter said he felt that there may be a possibility of getting an energy grant to help with the cost of repairing the heating system. The possibility of legal action against the architect was discussed. Mr. Hunter will discuss this matter with County Attorney Craig Halls. The Commission stated that someone is responsible for the faulty heating system and the problem should not be the County's. Beer License/Ruben Carson Clerk-Auditor Gail M. Northern and Assessor Bruce Bunker met with the Commission to discuss a request from Ruben Carson for a carry-out beer license for a convenience store. Mr. Carson is planning to put a trailer next to his residence in Bluff for this business. The Commission requested that Mrs. Northern write to Mr. Carson and request a map of Bluff with his planned business identified. This will allow the Commission to tell if the planned business is in a residential or commercial area. Computer System Data Processing Manager John Fellmeth presented a proposal from IBM for a new computer system for the County. Mr. Fellmeth said he had received bids for an upgrade on the existing computer. Mr. Fellmeth explained that with the IBM AS400 Model D04 the computer system could have twenty eight devices attached to the computer. This would allow all of the P.C.'s in the Courthouse to be hooked into the main computer. Mr. Fellmeth said the proposal would allow for a trade-in on the existing computer and a no charge for the migration assistance. This offer for no charge for migration assistance is only for the remainder of 1991. The total cost for the AS400 Model D04 would be $17,604. A motion to approve the purchase of the AS400 Model D04 computer was made by Commissioner Redd and seconded by Commissioner Lewis. UNANIMOUS. Part of the cost of this system will charged to accessing and collecting. Building Permit A building permit was presented for Ivan Watkins. Mr. Watkins is moving a mobile home on his property in the Blanding area. This permit is for electrical inspection only. A motion to approve the permit was made by Commissioner Redd and seconded by Commissioner Lewis. UNANIMOUS. Public Defender Contract County Attorney Craig Halls discussed with the Commission the draft contract for the services with Public Defender Keith Chiara. After a discussion on the expenses it was the decision of the Commission to have Mr. Halls offer Mr. Chiara a flat rate of $2,200 per month. Mr. Chiara would be responsible for all his own expenses and insurance. Mr. Halls will discuss this offer with Mr. Chaira. COMMISSIONER BILL REDD'S REPORT RS 2477 Seminar Commissioner Redd attended an RS 2477 Seminar that was held by the Bureau of Land Management in Richfield, Utah on October 17, 1991. The criteria used for RS 2477 was discussed. Utah Association of Counties Commissioner Redd said the UAC Task Force on Public Lands and County Planning has hired Attorney Karen Budd of Wyoming. The cost of hiring Ms. Budd if $2,000. San Juan County has agreed to pay one quarter of this cost. A motion to approve this expenditure was made by Commissioner Redd and seconded by Commissioner Lewis. UNANIMOUS. The UAC has received twenty proposals from firms that are interested in doing a state wide plan. Commissioner Redd will analyze the plans and give the Commission his recommendation. Oil and Gas Taxation Meeting Commissioner Redd traveled to Duchense, Utah on October 18, 1991 to attend a Task Force meeting concerning the taxation of oil and gas production. The oil producing counties of the State were in attendance. It was decided to meet with the State Tax Commission and Oil Company representatives on October 24, 1991 in Salt Lake City. Commissioner Redd presented the following resolution for the approval and signature of the Commission. RESOLUTION 1991-22 A RESOLUTION EXPRESSING CONCERN ABOUT PRECIPITOUS ABANDONMENT OF CURRENT OIL AND GAS PROPERTIES VALUATION METHOD BY TAX COMMISSION IN FAVOR OF DISCOUNTED CASH FLOW METHOD, AND DEVASTATING IMPACT THEREOF UPON COUNTY AND SCHOOL DISTRICT; FORMATION OF TASK FORCE; AND OTHER RELATED MATTERS. WHEREAS, the Counties of Duchense, Grand, San Juan, Summit and Uintah contain most of the oil and gas producing wells located in the State of Utah; and WHEREAS, the above-named counties receive a substantial percentage of their funds from the operation of county government and school districts from taxes associated with the operation of oil and gas wells; and WHEREAS, the Utah State Tax Commission is considering the adoption of a rule to establish a discounted cash flow method of valuing centrally assessed oil and gas properties; and WHEREAS, the above counties are concerned about the adoption of a Rule that may not accurately reflect fair market value and may undervalue oil and gas properties thereby resulting in an unfair and inequitable shift on the tax burden to residential and business taxpayer; and WHEREAS, the above counties are concerned about the workability and enforceability of a Discounted Cash Flow Rule; and WHEREAS, the above affected counties wish to evaluate the options available to themselves and the State regarding assessing oil and gas wells and property. NOW THEREFORE BE IT RESOLVED: 1. That the San Juan County Commission, in cooperation with the other above -named counties hereby formally request that the Utah State tax Commission not adopt the rule regarding discounted cash flow assessment valuation of oil and gas properties that the current method be reviewed and the Tax Commission take into consideration the effect on the Counties of this plan, and unil such time as the counties can evaluate whether or not the current method of evaluation is supportable, and if not, whether there are alternative to the current method and the discounted cash flow method. 2. The San Juan Commission hereby authorizes the formation of a Task Force, in cooperation with the other above-named counties to study the alternatives to valuation of oil and gas wells and property that can evaluate the current system evaluation as well as alternatives to the current system and the discounted cash flow valuation system. 3. That Commissioner Bill Redd be authorized to represent San Juan County on said Task Force. 4. The Board of County Commissioners hereby authorizes the expenditure of up to $2,000.00 for the Task Force to hire legal and valuation experts to make recommendations to the Board of County Commissioners and School Boards in the affected counties regarding the proposed rule. TWO MEMBERS VOTED IN FAVOR: this 21st day of October, 1991. SAN JUAN COUNTY BOARD OF COUNTY COMMISSIONERS /s/ Ty Lewis By: Ty Lewis, Chairman /s/ Bill Redd Bill Redd Mark Maryboy, Absent. ATTEST: /s/ Gail Northern Gail Northern, Clerk Historical Society Request Commissioner Redd presented a request from the Historical Society for a used McIntoish Computer that includes the software Word Perfect and Pagemaker. The computer is a 1990 model and will cost $1,300. A motion to approve this purchase based on the expenditure being from the current budget was made by Commissioner Redd and seconded by Commissioner Lewis. UNANIMOUS. The Historical Society is looking at the MiVida Mine as a historical site. Summit County Commissioner Redd requested that a payment in the amount of $2,000.00 be made to Summit County for their expertise on the Task Force on oil and gas taxation. A motion to approve this expenditure was made Commissioner Redd and seconded by Commissioner Lewis. UNANIMOUS. COMMISSIONER TY LEWIS' REPORT Frequency Application Commissioner Lewis said that approval needs to be given Motorola to apply for the additional frequency that will be needed to upgrade the radio communications in the County. A motion to approve the application for an additional frequency was made by Commissioner Redd and seconded by Commissioner Lewis. UNANIMOUS. Chevron Oil Tour Chevron Oil will be taking the Commission on a tour of their horizontal drilling operation in Lisbon Valley on October 24, 1991. Mexican Hat Tailings Clean-up A public meeting to discuss the tailings clean-up at Halchita and Monument Valley will be held at the Oljato Chapter house on October 22, 1991. The Commission will have Process Facilatator Edward Tapaha attend this meeting to represent the Commission. Halchita Road Problems A letter was received from the Halchita Community concerning road problems in the community. Governor's Forum on Natural Resources A letter was received from Lieutenant Governor W. Val Oveson concerning the Governor's Forum on Natural Resources that was held last November. The letter requested a response on issue that the Commission felt needed to be covered if another forum was held. The Commission felt the following issues should be discussed: 1) The entire State needs to be looked at as a whole environmental package instead of trying to do each piece of land separately 2) Land use is the West is equivalent to the Eastern land holding rights. Land uses are our equivalent property rights and shouldn't be violated with out payment. 3) The idea of justice should be involved in the process. People of the West make the investments and develop the land and then people from the outside with no involvement come and make all of the decisions. 4) The economic base needs to be preserved. The Commission asked Deputy Clerk Dena Hunter to send a letter asking that these issues be considered if another forum is held. Navajo Tribal Request A request concerning San Juan County's budget was received from the Navajo Tribe. Administrative Assistant Rick Bailey will be asked to respond to the request. Community Impact Board A notice was received from the Community Impact Board advising that $240,000 has been awarded to the La Sal Community Group for a recreation building and $765,000 has been awarded to the Division of Parks and Recreation for an Edge of the Cedars expansion project. SR2477 Seminar Commissioner Lewis attended a Seminar on SR2477 that was given by the Bureau of land Management in Richfield, Utah on October 17, 1991. Commissioner Lewis said the county needs to get all D roads mapped and the historical validity of them recorded. BILLS APPROVED FOR PAYMENT Bru's House of Color pictures extension $ 25.91 AFSCME liab. from payroll run 16.00 Blue/Cross Blue Shield of Utah health insurance 36494.17 Bruce Bunker bldg. insp. expense 60.25 Chief Propane Inc. rest. Billsie 50.00 First Security bank of Utah liab. from payroll run 1256.75 The Franklin Institute shipping assessor 4.00 Gall's Incorporated supplies EMS 105.47 Holden Glass repair window repair 260.00 Kent's Foods supplies courthouse 42.90 The Lawyers Cooperative uscs monthly chgs 65.00 Monticello City of sales tax 3rd qtr 49.06 Monticello Justice Court s.o. collections 145.00 Navajo Trail Motel travel public defender 75.00 Office Equipment Company service call copier 81.55 Frances Price travel extension 61.00 William B. Redd travel commission 176.03 San Juan County gas surveyor 117.79 San Juan Pharmacy SJC employees 206.69 San Juan Record supplies clerk 253.42 Share Corporation supplies PCB 70.25 Sondregger Inc. cement fair board 114.00 Utah 4-H Volunteer's Assoc. 4-H calendars 40.00 Utah Power utilities fire control 44.47 Utah State Retirement Board liab. from payroll run 4.98 Utah State Tax Commission liab.from payroll run 244.30 Utah State tax Commission sales tax 3rd qtr 590.30 USU Extension Service publications extension 41.73 National Assoc. of Counties SJC membership 265.00 American Linen supplies courthouse 294.39 Utah State Agency/Surplus prop. supplies EMS 335.00 National Federal lands Conference reg. fee 175.00 Mead Data Central sub. attorney 10.00 Pool & Crew supplies library (M) 39.45 Packard Wholesale P.Foutz small claim 242.22 Payson Sheet Metal check heating problems PCB 1015.00 Janae Shumway slide show/movie 75.00 ADJOURNMENT The meeting adjourned at 1:50 P.M. Ty Lewis, Chairman Dena Hunter, Deputy Clerk