SAN JUAN COUNTY COMMISSION MEETING December 19, 2005 The regular meeting of the San Juan County Commission was held 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 Johnson, County Auditor/Clerk Dianne Neuss, Deputy Clerk A motion to approve the minutes of the December 12, 2005 meeting was made by Commissioner Bruce Adams, Commissioner Stevens seconded the motion. None opposed. Commissioner Stevens declared the motion carried. Commissioner Manuel Morgan was not present for the vote. Wanda Franklin - Road Department - 2006 Annual Bids Received one bid for Oil, Grease and Antifreeze from Exxon/Mobil. The recommendation was to accept the bid. Commissioner Bruce Adams made a motion to accept the bid from Exxon/Mobil. Commissioner Lynn Stevens seconded the motion. None opposed. Commissioner Stevens declared the motion carried. Commissioner Manuel Morgan was not present for the vote. Received bids for Corrugated Steel Pipe from Contech and Big R Manufacturing. It was recommended that the bid from Big R Manufacturing be accepted. Commissioner Bruce Adams made a motion to accept the Big R bid. Commissioner Manual Morgan seconded the motion. Non opposed. Commissioner Lynn Stevens declared the motion carried. Received bids for Batteries from Hensley and Motor Parts. The recommendation was to accept the bid from Motor Parts Company. Commissioner Manuel Morgan made a motion to accept the bid from Motor Parts Company. Commissioner Bruce Adams seconded the motion. None opposed. Commissioner Lynn Stevens declared the motion carried. Received four bids for Filters from Southwest Diesel, Motor Parts, Page Brake and Plateau. It was recommended that we continue to go with Plateau. Commissioner Bruce Adams made a motion to accept the bid from Plateau. Commissioner Manuel Morgan seconded the motion. None opposed. Commissioner Lynn Stevens declared the motion carried Jim Keys & Lou Muller - Request for Out-of-State Travel Lou Muller and Jim Keys of the Extension Office requested funds for out-of-state travel. Lou's request was to travel to Las Vegas for a 4-H meeting in February and Jim Keys requested funds for travel to a meeting in Denver related to farm and ranch record keeping. Commissioner Manuel Morgan made a motion to approve the requests. Commissioner Bruce Adams seconded the motion. None opposed. Commissioner Lynn Stevens declared the motion carried. Winn Westcott - Tractor Restoration Mr. Westcott gave a presentation including pictures and books related to the city owned John Deer tractor he is in the process of trying to restore. A discussion ensued regarding the tourism value and the positive community interest. Ideas for funding the restoration were discussed including funding from State and Federal sources. The city of Cortez has agreed to raise money for the project. Mr. Westcott will also contact Colin Fryer in Moab for support. So far $12,000 has been raised. The estimated cost of restoring the tractor is, at minimum, $20,000. Tony Dayish - Utah Navajo Trust Fund Tony asked if there were any County or City projects that could utilize dirt left over from the recent construction project in Monument Valley. This would save the high cost associated with the construction company removing it. The possibility of stockpiling the dirt for use on an upcoming road project was discussed as well as other possibilities. He also discussed funding for the installation of power and water to the new construction. Tony stated that there are two funding commitments for the Fire Station at Monument Valley. A $31,000, grant from the Navajo Nation was approved to purchase fire equipment and the USDA grant of $47,000 is designated to be used within the next 5 months for building costs. Tony will try and find out if this money can be used for other costs related to the project, such as utility lines, water lines or roads. Brenda Harvey - Southern Fair Rodeo Proposal Brenda presented the Commission with a proposal to bring in a INF Rodeo to the Southern Fair in 2006. She expressed her enthusiasm for the project and her experience and success in the management of several rodeo's in the past. The budget, funding, facilities and contracts with various rodeo organizations were discussed. She said that the deadline for contracting with the INF Rodeo Group is January 8, 2006. The Commission will make a decision and contact Brenda before the deadline. Cyndi Eldredge - Personnel - Flex Spending Cyndi introduced Jason Shumway, the representative from Aflac who presented a proposal for his company to administer the Flex Plan benefit for county employees. The advantage to changing to their company is that there is no annual fee and also a reduced fee for each person enrolled ($3.00 per month). They committed to making a greater effort to educate employees about the plan with the goal of trying to encourage more employees to participate. The more persons who sign up for the plan would result in a greater saving for the County in FICA tax. Following continued discussion and a subsequent staff meeting, Norman Johnson recommended that the County change to Aflac and to evaluate their service after one year. Commissioner Manuel Morgan made a motion to change to Aflac for the administration of the Flex Spending program. Commissioner Lynn Stevens seconded the motion. None opposed. Commissioner Lynn Stevens declared the motion carried. Commissioner Bruce Adams abstained due to a conflict of interest. Norman Johnson - County Clerk/Auditor Two applications for beer licenses were submitted for approval: William W. Simpson Enterprises, Inc. - Twin Rocks Café $250.00 Class D Robert L. Mueller - Mexican Hat Lodge $400.00 Class C Commissioner Bruce Adams made a motion to approve the licenses. Commissioner Manuel Morgan seconded the motion. None opposed. Commissioner Lynn Stevens declared to motion carried. Norman requested clarification on the next two Commission meetings, December 27, 2005 and January 2, 2006. The Commission indicated they wanted them cancelled and notification submitted to the newspapers. Public Hearing - 2005 Budget At 1:30 P.M. Commissioner Bruce Adams made a motion to go into Public Hearing to discuss adjustments to the 2005 budget. Commissioner Manuel Morgan seconded the motion. None opposed. Commissioner Lynn Stevens declared the motion carried. Actual expenditures in the General Fund are projected to exceed the approved budget, due primarily to the $500,000 donation to the CEU-SJC Health Building from the Nursing Home Trust Fund. In order for the County to be in compliance with the law, the budget must be increased. The money from the Nursing Home Trust fund was used for the college to grant the initial seed money and to give leverage encouraging other grantors to provide funding. It was noted that the college building is well on the way to completion. John Fellmeth discussed the departmental budgets recommending adjustments that were needed. He recommended increasing the Library budget by $20,000, from $363, 071 to $383,071, increasing Tort Liability by $25,000 from $160,000 to $185,000, as well as an increase of $105,000 from $175,000 to $280,000 in the Tax Stability Trust Fund budget. Norman Johnson indicated that there may also be some other adjustments in individual departmental budgets. Commissioner Bruce Adams made a motion to increase the General Fund by $500,000 from $7,906,782 to $8,406,782, increase the Library budget $20,000, increase the Tort Liability budget by $25,000 and to increase the Tax Stability Trust Fund budget by $105,000 and to authorize the County Auditor to make other line item adjustments as are necessary within the approved budget. Commissioner Manuel Morgan seconded the motion. None opposed. Commissioner Lynn Stevens declared the motion carried. A schedule of 2005 budget adjustments is attached and made a part of the minutes hereof. Commissioner Manuel Morgan made a motion to go out of Public Hearing at approximately 2:00 P.M. Commissioner Bruce Adams seconded the motion. None opposed. Commissioner Lynn Stevens declared the motion carried. Rick Bailey - County Administrator The following Building Permits were submitted for approval: Reena Matthews - Residence - Turkey Trot Estates, Lot 18 - Spanish Valley Billy Ray Carter - Residence - Turkey Trot Estates, Lot 19- Spanish Valley Commissioner Bruce Adams made a motion to approve the permits. Commissioner Manuel Morgan seconded the motion. None opposed. Commissioner Lynn Stevens declared the motion carried. A request was made for the approval of Willow Court Estates Subdivision in Spanish Valley. Commissioner Bruce Adams made a motion to approve the request. Commissioner Manuel Morgan seconded the motion. None opposed. Commissioner Lynn Stevens declared the motion carried. Presented a renewal agreement for the billing service between JCI and Emergency Services for another year. Commissioner Bruce Adams made a motion to approve the agreement. Commissioner Manuel Morgan seconded the motion. None opposed. Commissioner Lynn Stevens declared the motion carried. Presented the Engineer Bid Sheets for the Red Mesa Road and the Aneth/Alkali Creek culvert replacement. Commissioner Bruce Adams made a motion to approve the low bids subject to availability of funds. Commissioner Lynn Stevens seconded the motion. None opposed. Commissioner Lynn Stevens declared the motion carried. A letter was received from Joe Shirley, President of the Navajo Nation, requesting better coordination and an extension of time for the Chapters to expend General and Revitalization funds. Apparently, the letter is in response to correspondence sent out to the Chapters by Melissa Slade advising that they should consider utilizing their SJC funds before the end of the year. She reminded them that the unused funds would revert back to the Revitalization fund and General funds. Following the Chapters' receipt of the letter, Melissa received numerous phone calls from the various Chapters asking permission to spend the money on various projects, some of which were frivolous and unrelated to the communities. Commissioner Manuel Morgan will draft a letter to the Utah Navajo Commission informing them of the agreement between the Chapters and SJC. The Commission declined to grant an extension of time. Peggy Humphreys - Community Development Requested the Commission to sign off on a grant request for funds from the Cooperative Marketing Program, Utah Office of Tourism. The grant is for the celebration of San Juan Heritage and for the promotion of out-of-state visitation. Commissioner Lynn Stevens signed the support letter. Peggy requested that Wes Perrin, Wind Consultant, come to the January 9th Commission Meeting to discuss the viability and development of wind resources in the San Juan area. He will be put on the January 9th Agenda. Evan Lowry - Planning Presented a letter to be sent to the DWR regarding regulations related to the protection of mule deer. San Juan County 2006 Budget - John Fellmeth - Norman Johnson John reviewed the requested and proposed budget items for 2006 and discussed the differences between the funds requested and the estimated revenues. He and Norman Johnson have been working with the various departments to try and help them reduce their budgets. There is still a shortfall even after reducing requests. John expressed concern regarding departments who have gone over budget in the past. His recommendation is to set more stringent rules and not allow funds to be spent that have not been budgeted. He expressed the need for increased fiscal commitment. We need to cut expenditures to keep on budget. He projected that we may be able to cut $120,000 to $150,000 from the General Fund and bring down the shortfall to $650,000. John will continue to go back to the various departments to work with them on cutting expenditures. He noted that any surplus in department spending can be put back into the General Fund. The budget projects a 5% increase in property tax revenue for 2006 and 30% increase in interest revenue. The Commission will review the budget in April to assess how things are progressing and suggested a cost-of-living pay increase of 2 ˝ % for SJC employees. The estimated cost in the General Fund would be $70,000 - $75,000. Merit or longevity increases were also discussed, and $75,000 is to be placed in the undistributed account for a discussion in January. Our intention is to hold down spending and review the budget as we go forward into the year. The budget shortfall will be taken out of the General Fund and Capitol Projects reserve to balance the budget. The Health Fund shortfall will come out of health fund budget reserve. Commissioner Bruce Adams made a motion to approve the 2006 budget as proposed, stipulating an inclusion of a 2 ˝% cost-of-living increase for SJC employees. Commissioner Manuel Morgan seconded the motion. None opposed. Commissioner Lynn Stevens declared the motion carried. The entire General Fund and related 2006 budgets are attached and made a part of the minutes hereof. Commission Reports Commissioner Lynn Stevens will be in Salt Lake City and then in Price at a meeting Thursday at 11:00 AM. Commissioner Manuel Morgan will be in the County for the remainder of the week. He will attend a Health Service District Meeting tomorrow at the College. He will also attend a Tribal Meeting on the 12th and 13th of January on Economic Development. Commissioner Bruce Adams will attend the Health Meeting Tomorrow and be in the County the balance of the week. Meeting adjourned at 4:25 P.M. Check No. Payee Amount 29464 Alco Discount Store 51.99 29465 American Teleconnect 43.92 29466 Amerigas-Blanding 13.10 29467 Amerigas-Green River 222.04 29468 Black's Auto Body 760.00 29469 Blanding City 100.00 29470 Blue Moountain Foods 13.90 29471 Blue Mountain Meats Inc. 1546.48 29472 Blue Mountain Panorama 257.40 29473 Blue Mountain Shadows 667.00 29474 Brandford, J.J. 224.71 29475 Butler, Troy 122.00 29476 BW Coral Hills 349.37 29477 Cache Valley Electric Co. 10093.46 29478 Canyon Country Partnership 1400.00 29479 Cellular One 10.53 29480 Chamberlin Architects 3577.64 29481 Chavira, Tony 40.00 29482 Cortez Diesel Sales, Inc. 30.90 29483 Cortez Glass Co., Inc. 103.45 29484 Cynthia Black 254.39 29485 D & M Wire Rope, Inc. 917.66 29486 Davidson's 742.95 29487 Demco Media 83.54 29488 DESSCO 22.10 29489 DK AG & Auto 116.86 29490 Dove Creek Implement, Inc. 46.62 29491 Dwyer's Communications, Inc. 44.32 29492 Eagle Air Med (Othr) 650.33 29493 Factory Parts Express 63.06 29494 Factory Parts Express 68.74 29495 Faimont Supply Company 147.04 29496 Four Corners Welding & Gas 453.11 29497 Four States Tire & Service 1742.40 29498 Franklin Covey Co. 53.64 29499 Frontier 253.81 29500 Fullmer, Kyle 20.00 29501 G L J Freight 110.00 29502 Garden Spot Produce Wholesale 947.82 29503 Gascard 40808.41 29504 Getgo Imaging Inc. 294.00 29505 Grand Valley Foods 312.25 29506 Hampton Inn & Suites - Orem 64.64 29507 Hensley Battery & Electrical 383.70 29508 Hidden Peak electric Co., Inc. 4838.70 29509 Holiday Inn-Price 65.00 29510 Hutton Communications, Inc. 6056.96 29511 Ingram Library Services 217.79 29512 Intouch Paging 16.00 29513 Intrepid Potash - Moab, LLC 725.28 29514 J.A. Sexauer 37.63 29515 J.C. Hunt Co., Inc. 1025.29 29516 Javelina Trading Company 530.07 29517 Jerry Seiner 39.53 29518 Johnson, Norman L. 32.10 29519 Joyce Guymon Smith 50.00 29520 Jymi Adams 240.00 29521 LAGBRAU 500.00 29522 Larson & Company 4275.00 29523 Lazy Daisy Floral & Gifts 50.00 29524 Lewis, Cade 20.00 29525 LexisNexis 105.25 29526 Maxwell Products, Inc. 20407.59 29527 Meadow Gold Dairies, Inc. 544.80 29528 Metalmart, Inc. 1706.05 29529 Mexican Water Chapter 650.00 29530 Mexican Water Trading Post 172.00 29531 Monticello Mercantile 86.39 29532 Newman Traffic Signs 2030.40 29533 Nicholas & Company 2004.87 29534 Northern Tool & Equipment Co. 419.06 29535 Penworthy Company 305.73 29536 Perkins, Monty 56.00 29537 Pitney Bowes 36.00 29538 Pitney Bowes Purchase Power 36.00 29539 Poorboy Mining & Construction 200.00 29540 Questar Gas 432.23 29541 Quill Corporation 140.39 29542 Qwest 5.83 29543 Randall, Howard 407.18 29544 Red Mesa chapter 1429.15 29545 Regence BlueCross BlueSheild 16796.23 29546 Ricks Glass, LLC 7415.00 29547 Ross Products, Inc. 533.88 29548 San Juan Building Supply, Inc. 340.76 29549 San Juan County 4841.76 29550 San Juan Health Care Services 328.63 29551 San Juan Pest, Weed & Termite 70.00 29552 Information Only Check 0.00 29553 San Juan Pharmacy 2331.14 29554 San Juan Record 295.50 29555 Schultz, William L. 100.00 29556 Scott Machinery Company 450.52 29557 SemMaterials L.P. 17121.77 29558 Sherwin-Williams 215.47 29559 SJC Monticello Library 161.57 29560 Southeast Ut. Dist. Health Dept. 355.00 29561 State of Utah 62.00 29562 Sysco Intermountain Food Svc. 642.37 29563 Taste of Home 28.98 29564 Teecnospos Chapter 611.00 29565 Tel America, Inc. 94.77 29566 Tender Loving Care 1500.00 29567 TigerDirect 101.30 29568 Tom Growney Equipment Inc. 126.90 29569 TR Electric & Supply Co. 191.63 29570 UniFirst Corporation 138.44 29571 United States Postal Service 4000.00 29572 Universal Adcom 469.50 29573 UPS 62.98 29574 USU 5523.84 29575 Utah Association of Counties 392.28 29576 Verizon Wireless 40.21 29577 Western Horseman 36.99 26578 Wheeler Machinery Company 874.35 26579 Nicholas & Company 382.43