City Council Minutes

Thursday, September 26,2002



ST. GEORGE CITY COUNCIL MINUTES
SPECIAL MEETING
SEPTEMBER 26, 2002, 4:00 P.M.
ADMINISTRATION CONFERENCE ROOM

PRESENT;
Mayor Daniel McArthur
Council Member Sharon Isom
Council Member Bob Whatcott
Council Member Suzanne Allen
Council Member Rod Orton
Council Member Larry Gardner
City Manager Gary Esplin
City Attorney Ron Read
City Recorder Gay Cragun

DEDICATION OF ROUNDABOUT AT MAIN AND TABERNACLE:
A ribbon-cutting ceremony and dedication of the roundabout at Main and Tabernacle was held on site.

The meeting then resumed at the City Office building, administration conference room.

OPENING:
Mayor McArthur welcomed those present. The pledge of allegiance was led by Council Member Allen and the invocation was offered by Mayor McArthur.

REQUEST TO USE MATHIS PARK:
City Manager Gary Esplin explained that the City received a request from the Snow Canyon District Cub Scouts to use Mathis Park on September 28, October 12, 19 and 26 for supervised activities. They are also requesting an exception to City Ordinance No. 1982-10-1 to allow them to use BB guns and paint ball guns as a part of the supervised activities.

Mayor McArthur commented these events have been held every year and are very well supervised.

A motion was made by Council Member Gardner and seconded by Council Member Orton to approve use of the park as requested, and for an exception to the applicable ordinance, as requested. Mayor McArthur called for a vote, as follows:

Council Member Gardner - aye
Council Member Orton - aye
Council Member Whatcott - aye
Council Member Allen - aye
Council Member Isom - aye

The vote was unanimous and the motion carried.

GOLF CLUB CONCESSIONAIRE AGREEMENT:
City Manager Gary Esplin explained that Zach and Leah Simpson would like to operate the concession at the St. George Golf Club. Staff has reviewed the request and recommends approval of the agreement.

City Attorney Ron Read recommended that approval be subject to his review of the agreement.

A motion was made by Council Member Isom and seconded by Council Member Allen to approve the agreement subject to review by the City Attorney. Mayor McArthur called for a vote, as follows:

Council Member Isom - aye
Council Member Allen - aye
Council Member Whatcott - aye
Council Member Orton - aye
Council Member Gardner - aye

The vote was unanimous and the motion carried.



St. George City Council Minutes
September 26, 2002
Page Two

DECLARE EMERGENCY TO CONSIDER FAA GRANT AGREEMENT:
A motion was made by Council Member Orton and seconded by Council Member Whatcott to declare an emergency, pursuant to Sec. 52-4-6(5), UCA, in order to authorize the Mayor to sign an amendment to an FAA grant. Mayor McArthur called for a vote, as follows:

Council Member Orton - aye
Council Member Whatcott - aye
Council Member Allen - aye
Council Member Gardner -aye
Council Member Isom - aye

The vote was unanimous and the motion carried.

City Manager Gary Esplin explained that the federal fiscal year ends this week and the grant agreement must be received by the FAA tomorrow. The grant is for $500,000 to begin the EIS process for the new airport.

A motion was made by Council Member Isom and seconded by Council Member Gardner to authorize the Mayor to sign the amendment to the FAA grant. Mayor McArthur called for a vote, as follows:

Council Member Isom - aye
Council Member Gardner - aye
Council Member Allen - aye
Council Member Whatcott - aye
Council Member Orton - aye

The vote was unanimous and the motion carried.

AUTHORIZE CITY TO PARTICIPATE IN PAYSON POWER PROJECT:
Dave Tuttle, representing UAMPS, distributed copies of the proposed Resolution and reviewed changes to it which were requested by the City.

Water and Power Board Chairman Ross Hurst commented he felt an escape clause or option to withdraw should be provided.

A lengthy discussion ensued about voting, timing, and a re-evaluation clause.

Kent Romney, General Manager of Page's electric utility, advised that Page is one of the four major participants in the Payson project, and assured those present that Page's concerns as far as the stability of gas prices are identical to those of St. George. The Payson project provides Page with the best of both worlds as it caps out the price on high load hours, yet gives an advantage on low load hours from non-firm and other energy at a very low price. He stated the project made good economic sense for Page, and he was comfortable with the pro forma. The project's make-up makes it feasible to balance the economics of both electric and gas, and the value of the gas being burned for the amount output results in a low heat rate for the greatest amount of output. He encouraged participation in the project.

Mr. Tuttle advised that the gas market is a daily market, not an hourly one.

Council Member Gardner inquired how long it would take to bring the system up and running.

Mr. Tuttle advised the system was capable of producing power in a half hour, and could be shut down instantaneously. However, the system must remain on for six hours, and if taken off line must stay off line for four hours.

Council Member Whatcott commented that from the beginning the City has not wanted to have a 100% fixed gas price, but wanted to have a portion fixed and hedge on the lower end. He urged caution as there will be a large bill to pay every month whether the system is running or not.

City Manager Gary Esplin commented it was his understanding the City was looking at the Payson project to bridge the gap in power needed during specific periods of


St. George City Council Minutes
September 26, 2002
Page Three

time for base loading. He stated he felt good about fixing the price at 2? based on what the City has in its scheduled mix of all sources of power.

Water and Power Director Wayne McArthur commented that the City could use the power for its base load, but right now it did not need any additional base loads. He advised that electing intermediate peaking gives the City the most flexibility and meets the load curve and provides the best bottom line.

Mr. Tuttle summarized the benefits of the project.

City Attorney Ron Read reviewed changes he suggested in the Resolution.

Water and Power Board Chairman Ross Hurst commented he agreed with fuel diversity, but did not like the provision that one person could bind the entire group.

Council Member Isom commented there were still enough questions that she did not feel comfortable voting on the matter.

Finance Director Phil Peterson commented there were still many unknowns with regard to the Payson project.

Mr. Tuttle explained that UAMPS' purpose in developing the Payson and San Juan projects is to make resources available so that its members are not exposed to the open market.

City Manager Gary Esplin commented that the City's comfort level is with the pro forma. He stated he was not in favor of lessening the amount of energy the City would take, and if the City is comfortable enough to commit to the project, it should take 15 MW and be a player. He stated it was his opinion the City should participate in the project, but he expressed concern about the management committee and UAMPS' billing process. He recommended that the City Council not vote on the project until after the presentation from Deseret Generation.

AUTHORIZE CITY TO PURCHASE POWER FROM DESERET GENERATION AND TRANSMISSION:
Curt Winterfeld, Representing Deseret Generation and Transmission, distributed an Executive Summary and reviewed it with those present. After discussion, he advised there was a one to two week flexibility in revisiting the numbers, but Deseret is actively negotiating with other parties and has to know the City's level of commitment as soon as possible.

Mayor McArthur advised that the matter would be considered at the October 3 City Council meeting.

ADJOURN TO EXECUTIVE SESSION:
A motion to adjourn to an executive session was made by Council Member Isom and seconded by Council Member Whatcott. Mayor McArthur called for a vote, as follows:

Council Member Isom - aye
Council Member Whatcott - aye
Council Member Orton - aye
Council Member Gardner - aye
Council Member Allen - aye

The vote was unanimous and the motion carried.

RECONVENE:
A motion to reconvene was made by Council Member Gardner and seconded by Council Member Allen. Mayor McArthur called for a vote, as follows:

Council Member Gardner - aye
Council Member Allen - aye
Council Member Whatcott - aye
Council Member Isom - aye
Council Member Orton - aye


St. George City Council Minutes
September 26, 2002
Page Four

The vote was unanimous and the motion carried.

REQUEST TO USE WOODWARD GYM:
Allan Carter, representing the St. George Musical Theater, advised the SGMT is a non-profit organization and has 475 ticketholders, with a cast and crew of 500, and an annual budget of $165,000. Its growth curve has been too steep to continue to hold the productions in the Opera House, and he explained they would like to relocate to the old Woodward gym.

It was the consensus of the Mayor and City Council that the SGMT be allowed to use the old Woodward gym on a two to five year basis at no cost, with the stipulation that SGMT pay all its own costs, including liability insurance, and that they maintain the landscaping in an acceptable condition.

Mayor McArthur clarified that there would be no City expenditures.

Mr. Carter requested that reasonable notice be provided in the event the lease is terminated.

PUBLIC ART POLICY:
Mark Talbert, representing the St. George Arts Commission, distributed a hand-out entitled "Public Art Program - St. George Arts Commission" and reviewed it with those present.

It was the consensus of the City Council to move ahead with the program.

Mayor McArthur stated he would like the Arts Commission to look at ideas for locating art work in the new roundabout at Main and Tabernacle.

Mr. Talbert suggested a rotating art display.

AUTHORIZE CITY TO PARTICIPATE IN PAYSON POWER CONTRACT (CONTINUED):
City Attorney Ron Read advised that he and Dave Tuttle discussed changes to the Resolution and Mr. Tuttle will go back to UAMPS with the changes. The intent of the changes are to leave the re-evaluation subject to unanimous vote, with each participant having one vote. Each member has one vote for termination, and it has to be unanimous. If anyone does not want out, all are in. A majority vote of the entitlement shares is needed for all operating procedures and policies, other than a super majority vote for power sales only. He stated the agreement can be approved, if desired, subject to the changes.

Mr. Tuttle reviewed changes to Par. 2 of the Resolution.

Council Member Orton inquired if staff had reviewed these changes.

Water and Power Director Wayne McArthur advised the changes had been reviewed by staff and Water and Power Board Chairman Ross Hurst.

A motion was made by Council Member Isom to approve the agreement subject to review by the City Attorney, with the City remaining at a 15 MW participation level. The motion was seconded by Council Member Orton. Mayor McARthur called for a vote, as follows:

Council Member Isom - aye
Council Member Orton - aye
Council Member Gardner - aye
Council Member Allen - aye
Council Member Whatcott - aye

The vote was unanimous and the motion carried.

ADJOURN TO EXECUTIVE SESSION:
A motion to adjourn to an executive session to discuss personnel issues was made by Council Member Orton and seconded by Council Member Whatcott. Mayor McArthur called for a vote, as follows:



St. George City Council Minutes
September 26, 2002
Page Five

Council Member Orton - aye
Council Member Whatcott - aye
Council Member Allen - aye
Council Member Gardner - aye
Council Member Isom - aye

The vote was unanimous and the motion carried.

RECONVENE AND ADJOURN:
A motion to reconvene and adjourn was made by Council Member Whatcott and seconded by Council Member Allen. Mayor McArthur called for a vote, as follows:

Council Member Whatcott - aye
Council Member Allen - aye
Council Member Orton - aye
Council Member Isom - aye
Council Member Gardner - aye

The vote was unanimous and the motion carried. The meeting then adjourned.



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Gay Cragun, City Recorder