SAN JUAN COUNTY COMMISSION MEETING JUNE 19, 2006 The regular meeting of the San Juan County Commission was held on June 19, 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, SJC Administrator Norman L. Johnson, SJC Clerk/Auditor Dianne F. Neuss, SJC Deputy Clerk Commissioner Manuel Morgan made a motion to approve the minutes of June 12, 2006 pending review by Commissioner Bruce Adams. Commissioner Lynn Stevens seconded the motion Commissioner Lynn Stevens declared the motion carried. Commissioner Bruce Adams was absent for the vote. Resolution of Inducement No. 2006-03 - Nate Knight - Dick Baggett The Resolution of Inducement discussed at the last Commission Meeting was addressed. Our Attorney, Walter Bird, reviewed the documents and recommended approval. Walter's signature would be required along with the Commissioner's signatures. Mr. Gil M. Olguin, Sr., J.D. prepared the document related to the Resolution of Inducement and presented details of the document to the Commission. If the County adopts the Resolution of Inducement, the County would hold the deed to the property until the Bonds are retired. He explained that the County could not be held responsible either legally or financially if the company went into default. He indicated the County would be expected to try and find a replacement business for the facility, but if that was not possible, the County would not incur any liability. Mr. Olguin indicated that there would be due diligence by the Company that issues the Industrial Revenue Bonds before they would be issued. Commissioner Bruce Adams made a motion to approve the Resolution of Inducement. Commissioner Manuel Morgan seconded the motion. Commissioner Lynn Stevens declared the motion carried. RESOLUTION OF THE COUNTY COMMISSIONER OF SAN JUAN COUNTY, UTAH RESOLUTION No. 2006-03 A RESOLUTION OF THE COUNTY COMMISSION ("COMMISSION") OF SAN JUAN COUNTY ("COUNTY"), UTAH RELATING TO THE ISSUANCE BY THE COMMISSION OF ONE OR MORE SERIES OF TAXABLE, OR, IN THE ALTERNATIVE, TAX-EXEMPT INDUSTRIAL REVENUE BONDS IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED THIRTY MILLION DOLLARS ($30,000,000) ("BONDS") FOR THE PURPOSE OF INDUCING MEDSPRING GROUP, INC., A CORPORATION CHARTERED UNDER THE LAWS OF THE STATE OF UTAH ("COMPANY") TO ACQUIRE PARCELS OF LAND IN THE COUNTY AND TO DESIGN, DEVELOP, CONSTRUCT AND EQUIP A FACILITY ON SAID PARCEL OF LAND IN THE COUNTY, FOR THE PURPOSE OF MANUFACTURING, MARKETING, STORING AND DISTRIBUTING MEDICAL PRODUCTS AND MEDICAL SUPPLIES AND EXPRESSING ITS INTENT TO ISSUE THE BONDS TO DEFRAY THE COSTS OF ACQUIRING PARCELS OF LAND DESIGNING, DEVELOPING, CONSTRUCTING AND EQUIPPING THE FACILITIES FOR MANUFACTURING, MARKETING, STORING, AND DISTRIBUTING MEDICAL PRODUCTS AND MEDICAL SUPPLIES. WHEREAS, the Utah Industrial Facilities and Development Act (Title 11, Chapter 17, Utah Code) authorizes counties to issue industrial revenue bonds for the purpose of financing the acquisition of land, buildings and equipment; to defray the costs of designing, developing and constructing facilities within the county; and, to acquire, own, lease, and/or sell land, projects and facilities as defined herein; and, WHEREAS, the Act authorizes the County to issue its industrial revenue bonds for the purpose of defraying the cost of acquiring land, buildings and other improvements thereon and all real and personal properties deemed necessary in connection therewith, whether or not now in existence which among other things Shall be suitable for use by (I) any industry for the manufacturing, processing or assembling of any agricultural or manufactured products and (ii) any commercial enterprise in storing warehousing distributing or selling products of agriculture, mining or industry; and, : WHEREAS, in return for the issuance of the bonds, the Company intends to relocate its entire facilities to San Juan County), Utah; and, WHEREAS, the Company is engaged in the business of developing, researching, manufacturing, marketing, storing and distributing medical materials and supplies on a Worldwide basis ("Project"); and, WHEREAS, the Company desires to acquire land and equipment, and to design, develop and construct a facility to be used in connection with said Project; and, WHEREAS, the Company has agreed to use the proceeds of the Bonds to defray the costs of acquiring the land, acquiring the equipment, and designing, developing and constructing the facility within the County for the above described Project; and, WHEREAS, the County desires to express its intentions to induce the Company to locate the Project in the County by issuing its industrial revenue bonds for the purpose of financing same. NOW THEREFORE, BE IT RESOLVED BY THE COUNTY COMMISSION OF SAN JUAN COUNTY, UTAH that: Section 1. All action not inconsistent with the provisions of this resolution heretofore taken by the Commission, the officers thereof, and, the officials of the County directed toward the acquisition, construction and equipping of the Project within the County and the issuance and sale of the Bonds therefore, be and the same is hereby ratified approved and confirmed. Section 2. The County requests that the Company secure the availability of the necessary water, electrical, and natural gas utilities and necessary solid waste and liquid waste disposal facilities and acquire construct and equip the Project as soon as practical within the County. Section 3. As an inducement for the Company to relocate within the County, acquire the land, acquire equipment, design, develop and construct the facilities, the County does hereby declare its intent to, and at such times as may be appropriate, authorize and issue one or more series of the County's taxable, or, in the alternative, tax-exempt, industrial revenue bonds under the provisions of the Act in an amount or amounts sufficient to pay all or any part of the actual cost of acquisition and completion of the Project and to take such action as may be necessary to issue the Bonds in an amount not to exceed Thirty Million Dollars (S30,000,000). Section 4. The County's issuance of the Bonds on behalf of the Company is subject to the Company's submission to the County, of evidence that all necessary utilities will be available to the Company upon completion of the Project. Section 5. The Bonds shall be secured by a pledge of the revenues of the Project, an assignment of the Company's interest in said Project, and, a first mortgage instrument in said Project. Such pledge, assignment and mortgage shall be in a form and content to be agreed upon by the Bond Counsel, Bond Underwriter, Bond Buyer and the Company, and, shall provide that the County shall, at no time, have pecuniary liability for the acquisition of the Project or the payment of the principal of and interest on the Bonds. Section 6. The Bonds issued by the County under this Resolution shall not constitute nor give rise to a general obligation, debt or liability of the County, or a charge against its general credit or taxing powers. Nothing contained in this Resolution nor in any other instrument shall be considered as indebtedness of the County or as obligating the County to any pecuniary liability or a charge against be plainly stated and printed upon the face of said Bonds. Section 7. Prior to the issuance of the Bonds, the County and Company shall enter into a public/private partnership agreement providing for terms and conditions for the issuance of the Bonds. The Company shall provide the County with a comprehensive bond proposal, which will include, among other things, a feasibility study, market analysis, phase one environmental report, 5- year pro-forma, financial information, biographies of the principals, source and use of funds, acquisition and construction budget, and a list of jobs. Section 8. No costs are to be borne by the County and all costs will be paid out of the proceeds of the Bonds or paid by the Company and all expenses incurred by the County in connection therewith are to be reimbursed by the Company. Section 9. If any section paragraph, clause or provision of this Resolution shall, for any reason, be held to be unenforceable, the invalidity or unenforceable, of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution. Section 10. The Chairman of the Commission is hereby directed and authorized to sign in the name of and on behalf of the Commission, and to direct the County Administrator, and other County personnel, to take such action as may be necessary to review and evaluate the Project on behalf of the County and to recommend to the Commission such action or actions as may be necessary or appropriate to implement the acquisition and construction of the Project and the issuance of the Bonds. Section 11. The Bonds shall be issued by a second resolution of the Commission to be adopted after the Applicant has met and complied with all conditions. Notice by title and subject matter of the Commission's intention to meet and adopt a second Resolution authorizing the County's issuance of one or more series of taxable, and/or tax-exempt industrial revenue bonds in an amount not to exceed Thirty Million Dollars ($30,000,000) to pay the cost of acquiring, constructing and equipping the Project shall be published no later than fourteen (14) days prior to the proposed meeting of the Commission in a newspaper of general circulation in the County. ATTEST: PASSED, APPROVED AND ADOPTED on this________________________day of _________________________, 2006. THE COUNTY COMMISSION OF SAN JUAN COUNTY, UTAH ____________________________________ LYNN H. STEVENS, CHAIRMAN ____________________________________ MANUEL MORGAN, VICE-CHAIRMAN ____________________________________ BRUCE B. ADAMS, COMMISSIONER _____________________________ NORMAN L. JOHNSON COUNTY CLERK-AUDITOR APPROVED AS TO FORM: SAN JUAN COUNTY ATTORNEY BY: ____________________________________________ WALTER J. BIRD, DEPUTY COUNTY ATTORNEY Evan Lowry - Planning Office Evan reported that he attended the Forest Service Plan Rollout Meeting last week. Ben Nielsen and Commissioner Lynn Stevens were also in attendance. Although a copy of the plan was available for review, individual copies were not distributed to the group. Evan said the meeting took the form of a tutorial about the Plan rather than a review of the Plan. Evan presented a contract for renewal and signature between Lee Bennett and the County for work she provides when requested. Rick Bailey approved of the contract renewal and stated that he is very pleased with the work Lee accomplished on the La Sal Senior Citizen's building. She will be working on the La Sal Road Easement in Spanish Valley. Evan explained that when there is an assignment for Lee, she reviews it and provides the County with her fee for the service. The decision to employ Lee is based on each individual project and cost. Commissioner Manuel Morgan made motion to continue the contract with Lee Bennett. Commissioner Bruce Adams seconded the motion. Commissioner Lynn Stevens declared the motion carried. Evan presented Charles Kay's Wildlife Report including extensive and detailed studies and photos. Mr. Kay cross-referenced his studies with other similar studies. Evan provided copies of the report to Commissioners. Although he has not had a chance to review the report throughly as yet, he is pleased with the results and said it was well worth the financial investment. This report provides scientific evidence and will be used to address wildlife issues related to San Juan County. Commissioner Lynn Stevens had the opportunity to bring up the issue of Arch Canyon with Henri Bisson, Acting BLM State Director. He explained that the Jeep Jamboree and the Jeep Safari both have requested the use of this road for their events. Commissioner Stevens explained that it is a county road and that the BLM is proposing regulations to restrict its use. Director Bisson seemed to be of the opinion that the BLM should give the land over to the County. Commissioner Stevens will meet with Sandy from the Monticello BLM office and discuss this issue further. Commissioner Stevens advised that the Contracts with the Counties for the Public Lands Policy Coordination Office need to be submitted by the end of June. The County is eligible to receive $10,000 for work on the Recordation Process, RS 2477, and there is a possibility that Jody Shumway may be available. Evan will contact her. Public Hearing - Request for a Grant for the Mexican Hat Fire Department Commissioner Bruce Adams made a motion to go into a Public Hearing to discuss the application for a Grant for the Mexican Hat Fire Department building project. Commissioner Manuel Morgan seconded the motion. Commissioner Lynn Steven declared the motion carried. This CIB Grant Application is in the amount of $300,000. The plan is to rebuild the Mexican Hat Fire Department building as well as house a weatherization facility with another smaller attached building to be used for elections, training and community activities. Rick said that we should know soon if we are successful in obtaining the property for this project from the BLM. Commissioner Morgan will present the issue to the AOG and Rick Bailey and Commissioner Stevens will also make a presentation to the AOG. Commissioner Stevens solicited comments from the public on this issue. There were none. Commissioner Bruce Adams made a motion to go out of Public Hearing. Commissioner Manuel Morgan seconded the motion. Commissioner Lynn Stevens declared the motion carried. Commissioner Manuel Morgan made motion to approve seeking the CIB Grant for the project. Commissioner Bruce Adams seconded the motion. Commissioner Lynn Stevens declared the motion carried. Rick Bailey - SJC Administrator Rick presented three building permits for approval and signature. Kenneth Knight - 33 E. Merriam Ct., Turkey Trot Estates, Spanish Valley - Full Unfinished Basement John P. Schriver - Blue Mountain Ranch Area - Cabin with Loft & Basement Jack A. Wilcock - County Road 335, Monticello - Cabin Commissioner Manuel Morgan made motion to approve the building permits provided all appropriate signatures are attached. Commissioner Bruce Adams seconded the motion. Commissioner Lynn Steven declared the motion carried. Rick presented a Sublease Agreement between Glenn Gurney and the County for a parcel of property at the Bluff Airport where he intends to place a hanger for his business. The Sublease requires Commission approval and signature. Walter Bird has reviewed and found no issue with the agreement. Commissioner Manuel Morgan made a motion to approve the Sublease Agreement between the County and Glenn Gurney. Commissioner Bruce Adams seconded the motion. Commissioner Lynn Stevens declared the motion carried. Rick presented a Letter of Agreement between San Juan County Fire and Emergency Services and International Uranium (IUSA) Corporation. This letter of agreement outlines standard operating procedures for preparation, training, and response by IUSA's Mine Rescue Team and the County's Emergency Response Teams for facilities located in and around San Juan County including but limited to uranium mine rescues or other technical rescue reposes. Commissioner Manuel Morgan made a motion to approve the Service Agreement. Commissioner Bruce Adams seconded the motion. Commissioner Lynn Stevens declared the motion carried. Rick presented two procurement requests from the Road Department. The first item is for the purchase of a Double Drum Vibratory Asphalt Compactor. Two bids were received with the low bid from Wheeler Machinery in the amount of $77,314.00 (with trade-in). The second request is for the purchase of three Graders. Rick presented a proposal to purchase two of the Graders from Wheeler Machinery Company, with a trade-in, in the amount of $308,408 and it was recommended that the third Grader be purchased from Scott Machinery Company, with a trade in, in the amount of $95,915. The total cost of the three Graders comes to $404,323. After subtracting $20,000 from the Navajo Revitalization Fund, the final cost will be $384,323. This will be paid for from the B-road Fund. Commissioner Bruce Adams made a motion to approve the purchase of the Compactor and the three Graders. Commissioner Manuel Morgan seconded the motion. Commissioner Lynn Stevens declared the motion carried. Rick reported that the fire at Navajo Mountain is 50% contained at this time. The fire has consumed about 3,300 acres. Seven helicopters were deployed to fight the fire. Tanks of culinary water were transported to the area as well as bottled water and Gatorade. Rick anticipates reimbursement from the State for some of the these expenses. Commissioner Bruce Adams and Rick Bailey will fly down to Window Rock for a meeting later today to evaluate the situation and water supply to the area. Rick presented a letter of request to acknowledge Joey Allred of Active Re-Entry a non-profit organization out of Moab. For the last two years she had been assisting the elderly in our County providing items such as wheelchairs, ramps, etc., allowing the elderly to stay in their homes. The Commission agreed to sign a Certificate of Appreciation for her at the next Commission Meeting. State Farm Service Agency - Bill York, Steven Bartholomew and Carla Sorrell Mr. York and Mr. Bartholomew appeared before the Commission to answer any questions pertaining to the services provided by the State Farm Agency. They advised that standard farm loans are available as well as emergency loans. A newsletter is sent out each month with information about programs that are provided by the Agency. The group discussed other ideas for reaching people who need farm aid on and off the Reservation. Setting up out-reach outlets in rural county communities was suggested. Mr. York and Mr. Bartholomew expressed their willingness to do whatever it takes to get the information out to farmers and ranchers in the County. Commissioner Manuel Morgan suggested that they attend a Summit which is in the process of being planned with the Tribes in Cedar City. The issue of the County experiencing drought conditions this year was discussed and will be addressed at the next Commission meeting. Steps would have to be taken by the County to formally declare a drought and provide background information in order to qualify for emergency funds. Cyndi Eldredge - Personnel Office Cyndi reported that she has been conducting interviews for various positions. She requested approval for hiring Quinton Dowell for the Maintenance position at the Monticello Fairgrounds. This is a seasonal position. Cyndi also requested approval to hire Joshua Keyes for the Weed Sprayer position which is also a seasonal position. Commissioner Manuel Morgan made a motion to approve the hiring of Quinton Dowell and Joshua Keyes for the seasonal positions. Commissioner Lynn Stevens seconded the motion. Commissioner Lynn Stevens declared the motion carried. Commissioner Bruce Adams was absent for the vote. Twenty two people applied for the position of Deputy Assessor. Eleven attended the testing session and two are scheduled to attend testing today. Cyndi indicated that four Native Americans applied for this position. Open Time - Other Business David Carpenter, of the Bluff Service Area Board, informed the Commission that Souder Miller and Associates is the engineering company that they chose to do the feasibility study relating to the sewer system in Bluff. They will have a work schedule completed by the end of June. Commissioner's Reports Commissioner Manuel Morgan will attend the ribbon cutting at the Monument Valley Welcome Center on Friday. He will attend the UAC Board of Directors meeting on Thursday evening. If there is a meeting tomorrow at 10 a.m. regarding funding from CSBG for a food program for the elderly, Commissioner Morgan plans to attend. Commissioner Lynn Stevens will attend a meeting in Price regarding Area Resource Planning and will then attend the UAC Board Meeting Thursday evening and the UAC Conference on Friday in Richfield. Commissioner Stevens attended the Forest Service Rollout Meeting last week along with Evan and Ben. Commissioner Stevens will attend the Resource Management Planning Meeting on July 18th in Vernal where issues relating to oil and gas will be addressed. He plans to meet with Kathleen Clark and Jim Hughes to discuss uniform guidelines for the national and local BLM offices. Meeting Adjourned: 12:01 p.m Check # Payee Amount 32633 AAA Spring Specialists Co. 484.76 32634 Adams, Cheyenne 180.00 32635 Adams, Jaren 18.50 32636 Alan's Body Shop 490.00 32637 Alco Discount Store 156.81 32638 ALLTEL 10.96 32639 Barnes Distribution 40.69 32640 Big R Manufacturing, LLC 16,750.88 32641 Blanding Senior Citizens 75.69 32642 Blue Mountain Foods 58.33 32643 Blue Mountain Meats Inc. 546.52 32644 Blue Mountain Panorama 17.00 32645 Bluff Water Works 20.00 32646 Bob Barker Company, Inc. 493.16 32647 Bowring, LeeAnn 180.00 32648 Bradford, Michael 37.00 32649 Brantley Distributing, LLC 295.70 32650 Brigham Young University 36.26 32651 Bronson, David 64.50 32652 Bunker, Bruce 912.50 32653 Butler, Troy 18.50 32654 BW Coral Hills 70.00 32655 Carquest DWTN So., Ut. #4517 93.45 32656 Connected Technologies 49.95 32657 Cortez Diesel Sales, Inc. 485.78 32658 Cynthia Black 20.17 32659 D & M Wire Rope, Inc. 436.00 32660 Demco Media 648.95 32661 DESSCO 21.90 32662 Empire electric Assoc. Inc. 3,689.45 32663 EVCO House of Hose 66.10 32664 Factory parts Express 74.34 32665 Filter Technologies 122.30 32666 Four Corners Welding & Gas 184.75 32667 Frito Lay, Inc. 88.00 32668 Frontier 125.00 32669 Gascard 52,457.98 32670 Ingram Library Services 567.70 32671 J.J. Keller & Associates Inc. 13.54 32672 Jacco Distributing Co. 157.25 32673 Johnson, Norman L. 317.57 32674 Jymi Adams 260.00 32675 Keyes, James D. 123.00 32676 Lacy, B. Mike 43.00 32677 Larry Miller Mopar Parts Center 440.24 32678 Larson & Company 4,602.50 32679 Latham, Lana 19.58 32680 LECC 45.00 32681 Meadow Gold Dairies, Inc. 311.75 32682 Meyer, Shurrell 382.31 32683 Miscellaneous Payables 32.00 32684 Montecello Mercantile 26.49 32685 Monument Resources 50,171.40 32686 Mueller, Lou 209.85 32687 Musselman Plumbing, Inc. 1,115.11 32688 Navajo Tribal Utility Authority 100.53 32689 Nicholas & Company 1,324.44 32690 Northern Safety Co., Inc. 120.35 32691 Pauls Wood & Iron Inc. 61,560.00 32692 Penworthy Company 413.99 32693 Plateau Equipment Supploy co. 178.39 32694 Questar Gas 148.58 32695 Quill Corporation 508.46 32696 Randy's Ring & Pinion 1,613.65 32697 Redd's True Value 42.48 32698 Regence BlueCross BlueShield 37,388.76 32699 Salume, Rick 255.59 32700 San Juan Building Supply, Inc. 31.00 32701 Information Only Check 0.00 32702 San Juan Clinic 1,106.00 32703 Information Only Check 0.00 32704 San Juan Pharmacy 1,773.58 32705 San Juan Record 48.60 32706 SA-SO Catalog Summer '06 127.72 32707 Schafer Auto Clinic 4.00 32708 Scheer, Lois 172.50 32709 SemMaterials L.P. 27,720.20 32710 SJC Blanding Library 98.54 32711 SJC Inmate Account 1,688.25 32712 SJC Monticello Library 209.33 32713 Southeastern Utah district 240.00 32714 Tel America, Inc. 85.87 32715 Thomas Bouregy & Company, Inc. 138.50 32716 UniFirst Corporation 148.97 32717 UPS 19.94 32718 USU Extension 44.25 32719 utah Peace Officers Assoc. 150.00 32720 Utah Power 7.61 32721 Utah Valley State College 59.00 32722 Western Technologies, Inc. 110.00 _____________________________ _____________________________ Lynn Stevens, Chairman Dianne F. Neuss, SJC Deputy Clerk