City Council Minutes

Thursday, December 11,2008



ST. GEORGE CITY COUNCIL MINUTES
SPECIAL MEETING
DECEMBER 11, 2008, 3:00 P.M.
ADMINISTRATION CONFERENCE ROOM

PRESENT:
Mayor Daniel McArthur
Council Member Suzanne Allen
Council Member Jon Pike
Council Member Gail Bunker
Council Member Gloria Shakespeare
Council Member Gil Almquist
City Manager Gary Esplin
Deputy City Attorney Paula Houston
City Recorder Gay Cragun

SITE VISIT:
A site visit was taken to view the new Fleet facility on Red Hills Parkway.

OPENING:
Mayor McArthur called the meeting to order and welcomed all in attendance. The pledge of allegiance to the flag was led by a Scout and the invocation was offered by Pastor Jimi Kestin.

Mayor McArthur invited several Scouts in the audience to introduce themselves.

RESOLUTION:
Consider approval of a resolution declaring the official intent of the City of St. George, Washington County, Utah to reimburse itself for certain capital expenditures relating to the acquisition, construction and development of a new municipal airport through the issuance of tax-exempt municipal bonds.

City Manager Gary Esplin explained that under the law the City can issue bonds to do the airport project. It can reimburse itself for capital expenses. Given what the State legislature has done with regard to funding of the airport, it makes sense to proceed with issuance of bonds. The State?s fiscal procedures act governs how cities invest their funds. Funds have to be invested in instruments approved in the municipal money act and are strictly controlled. He recommended that the City issue its own bonds, buy the bonds, and pay an interest rate equivalent to the market. He advised that in his opinion it is a good investment and allowed by state law.

Council Member Almquist commented it was key that the bonds are collateralized with property and have a short issuance and short callback.

Ed Baca inquired if this financing was similar to the $500,000 loan to the golf fund.

City Manager Gary Esplin replied that the two transactions are somewhat similar. When the City bought the Southgate Golf Course for $2,000,000 it borrowed funds from the Electric Fund and paid an interest rate. The current transaction is more structured. In the worst case scenario which would be if Anderson Development does not purchase the old airport property, the value of the property remains and the City could still sell it. Consequences of this proposed transaction include delaying the Mall Drive bridge for a year, but the environmental review for the bridge has not been completed in any event. Approval of the resolution will put into place the necessary documentation so costs of the bond issuance can be recovered.


St. George City Council Minutes
December 11, 2008
Page Two

MOTION: A motion was made by Council Member Almquist to approve the resolution.
SECOND: The motion was seconded by Council Member Shakespeare.
VOTE: Mayor McArthur called for a roll call vote, as follows:

Council Member Almquist - aye
Council Member Shakespeare - aye
Council Member Bunker - aye
Council Member Allen - aye
Council Member Pike - aye

The vote was unanimous and the motion carried.

Public Works Director Larry Bulloch advised that as of tomorrow Brigham Road will be 100% completed.

DISCUSSION ON NEW ACCESS AT EXISTING AIRPORT:
Jerry Amundsen presented a power point presentation titled St. George Airport Secondary Access Options covering the 300 West concept, 300 West Plan and Profile, 1700 South without wall, 1700 South single wall, 1700 South tiered wall, 1700 South plan and profile, and estimated costs.

The Mayor and City Council all preferred the 300 West concept as it would not violate the hillside ordinance, and advised staff to move ahead.

UPDATE ON NEW AIRPORT:
Public Works Director Larry Bulloch explained there are three types of soil material at the new airport site - rock, clay and select material which is an acceptable material to build on. The contractor has organized the distribution of materials such that the clay is being over-excavated where the load bearing areas will be, such as taxiways, the terminal, runways, and the tarmac area. The contractor then takes the select material and backfills these areas. The four inches of asphalt overlay is designed for today because that is all that is needed at this time. As the need for heavier equipment develops, then another four inch overlay will be done. The base is engineered to take the bearing load of 90,000 pounds. He explained that lots of things have been designed for the airport but are not being built today in order to stay within budget. Minimum improvements are being done; the terminal is not as big, the runway isn?t as big, and the pavement is not as big, but all are being planned for the future. It is not anticipated that 737's will land at the new airport for a long time.

Airport Manager Rick Crosman explained that a 737 can land on four inches of asphalt, but not on a regular basis as this will eventually break down the asphalt. If 737's are going to land regularly at the airport, then another four inches of asphalt will be added at that time. There is still time to get the infrastructure in place and the runway will be strengthened as time goes on. The airport has been designed to make it capable of accommodating larger aircraft.

Public Works Director Larry Bulloch advised that the design engineer indicates the soil contains the structural criteria called ?CBR?, and a low CBR means it will not take as much load. The engineers have designed the pavement for a high CBR and there is no structural problem with the material on site.


St. George City Council Minutes
December 11, 2008
Page Three

Airport Manager Rick Crosman advised that some of the questions he has been asked imply that bad soil has been discovered on the site. Nothing has been discovered. The project has been engineered to account for the soils on site, there were no surprises, and everything is on schedule and on track.

DISCUSSION ON PROPOSED CHANGES TO THE PURCHASING DOLLAR LIMIT AMOUNTS:
Budget and Financial Planning Manager Deanna Brklacich and Purchasing Manager Connie Hood presented a power point presentation titled Purchasing Ordinance - Dollar Threshold Recommendation covering Background for Recommendations, Purchasing Task Force Committee Recommendations, Department Purchase Orders, Informal Verbal Bids, Written Bids, Formal Written Bids, Formal Written Bids Requiring City Council Approval, Professional Services, Change Orders Requiring City Council Approval, Emergency Purchases, Benefits to Increasing Limits, and Timeframe.

Deputy City Attorney Paula Houston advised that staff is recommending that the new changes apply to all contracts, not just purchasing contracts.

Council Member Allen requested that a report be provided to the City Council on what is being bought and for how much.

Mayor McArthur suggested the information be posted on the City?s e-net.

Council Member Almquist expressed concern that some professional services contracts or formal bids that do not come to the City Council for approval may not have a subcontractor requirement with regard to eligibility of workers.

Ms. Hood replied this provision is standard in all contracts now.

Mayor McArthur cited an instance in which a department head recommended approval of a change order on a major project, but the City Council denied it.

City Manager Gary Esplin suggested this could be eliminated by having the City Manager review all change orders, and bringing those in question to the City Council for approval.

Mayor McArthur suggested that perhaps change orders in the amount of $10,000 or more should be reviewed by the City Manager.

Ed Baca inquired about being able to obtain information on companies which receive a predominant amount of contracts with the City.

City Manager Gary Esplin advised Mr. Baca can file a GRAMA request for the information.

Budget and Financial Planning Manager Deanna Brklacich explained that staff initiated a contractor performance evaluation and is compiling a data base and creating a preferred contractor list. The contractors have to sign their evaluation. She recommended an implementation date of January 1.

The Mayor and City Council instructed Ms. Brklacich to move ahead and place the item on the next City Council agenda.




St. George City Council Minutes
December 11, 2008
Page Four

POLICE DEPARTMENT UPDATE:
Police Chief Marlon Stratton advised that the bike patrol has been focusing on shopping centers during the holiday season. Motors have been focusing heavily on traffic and traffic accidents have been reduced by 20%.There is an increase in domestic violence, but generally things are going well.

Mayor McArthur advised he has received several complaints from several residents about their children being pulled over for suspected curfew violations and then being accused of other things.

Chief Stratton replied that the police are aggressively enforcing curfew to keep on top of vehicle burglaries and gang activity.

ADJOURN TO EXECUTIVE SESSION:
MOTION: A motion was made by Council Member Almquist to adjourn to an executive session to discuss a land purchase.
SECOND: The motion was seconded by Council Member Allen.
VOTE: Mayor McArthur called for a roll call vote, as follows:

Council Member Almquist - aye
Council Member Pike - aye
Council Member Allen - aye
Council Member Bunker - aye
Council Member Shakespeare - aye

The vote was unanimous and the motion carried.

RECONVENE AND ADJOURN:
MOTION: A motion to reconvene and adjourn was made by Council Member Almquist.
SECOND: The motion was seconded by Council Member Pike.
VOTE: Mayor McArthur called for a vote as follows:

Council Member Almquist - aye
Council Member Pike - aye
Council Member Shakespeare - aye
Council Member Bunker - aye
Council Member Allen - aye

The vote was unanimous and the motion carried. The meeting adjourned at 6:05 p.m.



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Gay Cragun, City Recorder