City Council Minutes

Thursday, December 4,2008



ST. GEORGE CITY COUNCIL MINUTES
REGULAR MEETING
DECEMBER 4, 2008, 4:00 P.M.
CITY COUNCIL CHAMBERS

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

EXCUSED:
Council Member Gloria Shakespeare

OPENING:
Mayor McArthur called the meeting to order and welcomed all in attendance. The pledge of allegiance was led by Council Member Allen and the invocation was offered by Council Member Bunker.

Council Member Almquist advised that the Desert Hills High School Girl?s Tennis Team took state and were in attendance at this meeting. He invited team members and Coach Christensen to introduce themselves.

Mayor McArthur invited several students and one Scout in the audience to introduce themselves.

Council Member Bunker advised that a benefit concert is being held this Wednesday evening at 7:00 p.m. at the Cox Auditorium for 14 year old Brandon Hammet who has contracted cancer. Eric Dodge will be performing.

Mayor McArthur advised that Item 6I to consider finalization of impact fees for a building on the IHC campus will be moved to the next agenda when a full quorum is present.

AWARD OF BID:
Consider award of bid for the Twin Lakes sewer project.

Purchasing Manager Connie Hood explained that 12 bids were received. She recommended award of the bid to the low bidder, Cindy Taylor Trucking, in the amount of $28,198. The engineer?s estimate was $45,897. The project will begin as soon as possible.

MOTION: A motion was made by Council Member Allen to award the bid to Cindy Taylor Trucking in the amount of $28,198.
SECOND: The motion was seconded by Council Member Bunker.
VOTE: Mayor McArthur called for a vote as follows:

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

The vote was unanimous and the motion carried.

AWARD OF BID:
Consider approval of a blanket award for tank fuel and lubricants.

Purchasing Manager Connie Hood recommended approval of a second year renewal with Haycock Petroleum in an amount not to exceed $200,000.

Council Member Almquist suggested that the City?s tanks should be filled to capacity while prices are down.

City Manager Gary Esplin replied that this bid is for oil, but the next bid is for bulk fuel.

Council Member Almquist commented the City should be stocking up on lubricants as well.


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December 4, 2008
Page Two

Mayor McArthur replied that petroleum products can?t be kept a long time, but the City should store what it can use and take advantage of the low prices.

MOTION: A motion was made by Council Member Bunker to approve the second year renewal contract with Haycock Petroleum in an amount not to exceed $200,000 for the year.
SECOND: The motion was seconded by Council Member Almquist.
VOTE: Mayor McArthur called for a vote as follows:

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

The vote was unanimous and the motion carried.

AWARD OF BID:
Consider approval of a blanket award for bulk fuel.

Purchasing Manager Connie Hood recommended approval to renew the City?s contract with Overland Petroleum. This is the second year of a three year blanket purchase order which runs through 2010. She requested approval of an amount not to exceed $1,275,000 which is a 25% reduction from the amount used last year. The fuel is used for fleet vehicles. The City is guaranteed the best price and currently it is $1.09 a gallon.

MOTION: A motion was made by Council Member Pike to approve renewal of the City?s contract with Overland Petroleum in an amount not to exceed $1,275,000 for the year.
SECOND: The motion was seconded by Council Member Almquist.
VOTE: Mayor McArthur called for a vote as follows:

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

The vote was unanimous and the motion carried.

AWARD OF BID:
Consider approval to purchase major equipment for the Millcreek generation expansion project

Purchasing Manager Connie Hood explained the City is working with KPE-TIC as a joint venture to design and construct the Millcreek generation expansion project. The contractor will bid out the equipment and deliver the low bids to the City. The amount recommended is $7,890,594.

City Manager Gary Esplin explained that the City can save realize tax savings by purchasing some of the equipment itself, as well as mark-up savings. A 3% contingency is sufficient.

Council Member Almquist inquired when the equipment would be paid for.

Ren? Fleming, representing the Energy Services Department, explained that the equipment will be paid for after it is delivered.

Council Member Almquist inquired if the equipment would be insured during transport.

City Manager Gary Esplin replied that it would be insured one way or another.

MOTION: A motion was made by Council Member Bunker to approve the purchase in the amount of $7,890,594.
SECOND: The motion was seconded by Council Member Pike.
VOTE: Mayor McArthur called for a vote as follows:

Council Member Bunker - aye
Council Member Pike - aye
Council Member Almquist - aye
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December 4, 2008
Page Three

Council Member Allen - aye

The vote was unanimous and the motion carried.

APPROVAL OF CONTRACT:
Consider approval of a contract for design of expansion at the Wastewater Treatment Plant.

Purchasing Manager Connie Hood recommended approval of a contract with Bowen Collins for the design phase due to a change in treatment technology and for expansion of the wastewater treatment facility in the amount of $241,356.

City Manager Gary Esplin explained that this change will expand the life of the plant. The expansion project will not be on line for another six to eight years. The current capacity is 17 million gallons a day, which will be increased to 25 million gallons a day. This contract is for design only.

MOTION: A motion was made by Council Member Pike to approve the contract.
SECOND: The motion was seconded by Council Member Almquist.
VOTE: Mayor McArthur called for a vote as follows:

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

The vote was unanimous and the motion carried.

RESOLUTION:
Consider approval of a fee schedule associated with the new Truck-N-Go parking lot in the St. George Industrial Park.

Support Services Manager Marc Mortensen explained that in order to solve the problem of semi-trucks parking on neighborhood streets, the City has put to good use property in the St. George Industrial Park for semi-truck parking. The property can store up to 40 rigs at any time. The property is owned jointly by the City and UDOT and UDOT has consented to allow the property to be used for this purpose. Trucks may be kept on the lot for not more than 10 days at a time. Trailers need to be attached to tractors, but tractors can park there by themselves. Details of the policy are still being finalized. The proposed fee schedule includes a fee of $30 per month for an annual pass, or a six month pass for $210. Truckers will enter the lot with a card reader so the City can keep track of who is going in and out. The police will patrol the lot. Passes will be sold on a first come-first served basis. The lot has no lights, but there are street lights and lights from neighboring businesses. The lot will be completely fenced and gated with an electronic gate. The main intent is to target contractor truckers who drive their own rigs so that impacts on neighborhood streets are minimized. A policy is being formed to address the issue of allowing truckers to store their own personal vehicle on site while they are out with their truck. He advised he has been working with local truckers to form the policy, and the fees are in line with what they expect. He advised he could not find any other cities which provide this service and the City of St. George will probably be the leader.

Mayor McArthur suggested that cameras be installed for extra security.

Council Member Almquist inquired how far into the future this corner will be utilized for this service.

City Manager Gary Esplin replied that the value of the property is greater than the proposed facility and if a better use comes up the City can sell its interests in the property and make back whatever it has invested.

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

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

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December 4, 2008
Page Four

The vote was unanimous and the motion carried.

PRESENTATION OF AUDIT:
Presentation of the 2008 Comprehensive Annual Financial Report.

City Manager Gary Esplin explained that every year the City is required by State law to have an outside independent auditor review its books and financial statements and give its opinion. Ken Hinton, CPA, will present his report.

Ken Hinton announced the successful completion of the 2008 audit of the City?s financial statements. He advised the City Council to call him or Finance Director Phil Peterson if they had any questions about the audit. He advised the City earned a clean opinion with no findings of significance and that all financial statements are presented fairly in all material respects. The trend lines show that the City is being administered wisely and he commended management for doing an excellent job. He advised there were no findings or recommendations of significance, and in all cases they have already been handled by Mr. Peterson; they were nominal and are to be expected in any city of this size.

Council Member Almquist commented that since 1995 the City?s total assets have tripled. He inquired about any increase in appraised value.

Mr. Hinton replied there has been no appraised value increase, which is a good indication of how well managed the City is. Its total assets and equity have increased significantly.

Council Member Almquist commented that the City?s liability has been flat for the last four years.

MOTION: A motion was made by Council Member Almquist to accept the 2008 comprehensive annual financial report.
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 Bunker - aye
Council Member Allen - aye

The vote was unanimous and the motion carried.

Finance Director Phil Peterson advised that staff is working with utility customers as best as possible to get through these financially difficult times. He explained that after January the City will have a better idea of where it is and implement further reductions, if need be. Sales tax through November is down 11.5% from the previous year and revenues are at the same level they were in 2006. Utility revenues are down 4%.

Council Member Allen encouraged citizens to shop locally to help local businesses and local sales tax.

PURCHASE EASEMENTS:
Consider purchase of two easements for the new airport sewer line.

City Manager Gary Esplin explained that the City has no way of securing easements unless property owners are willing to sell them or through condemnation. It is recommended that these easements be purchased.

MOTION: A motion was made by Council Member Almquist to approve purchase of the easements.
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 Allen - aye
Council Member Bunker - aye

The vote was unanimous and the motion carried.



St. George City Council Minutes
December 4, 2008
Page Five

CDBG ACTION PLAN AMENDMENTS:
Consider approval of amendments to the CDBG Action Plans.

City Manager Gary Esplin recommended that up to $71,000 in CDBG funds be used for the purchase of food by the Dixie Care and Share.

Council Member Pike clarified that the funds are to be used for the purchase of emergency food.

City Manager Gary Esplin clarified that all the funds would not be given to the Dixie Care and Share at once.

Kara Coop, Dixie Care and Share Director and Judy Robbins, incoming Chairman of the Board, advised they are seeing five to ten new families a day asking for food. They advised that they also provide coats and blankets to the needy.

Judy Robbins advised that they also need things for children, including diapers and formula, cribs, car seats, etc.

Council Member Almquist suggested that funds collected on the utility bills to help people with their bills could be used for the Care and Share too.

City Manager Gary Esplin advised that this fund is used all the time and he was not sure how much was left in it.

Mayor McArthur advised that the City is struggling like everyone else.

Randy Crosby, current Chairman, advised that the Care and Share also has electricity and water bills to pay, and eventually the facility will have to be expanded.

MOTION: A motion was made by Council Member Bunker to approve allocation of up to $71,000 in CDBG funds to the Dixie Care and Share.
SECOND: The motion was seconded by Council Member Almquist.
VOTE: Mayor McArthur called for a vote as follows:

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

The vote was unanimous and the motion carried.

PUBLIC HEARING/ZONE CHANGE/ORDINANCE:
Public hearing to consider a request for a zone change from Open Space to Single Family Residential on approximately 4.61 acres located at about 1090 West Baneberry Drive in the Bloomington area. Darren Coughlin, applicant.

Community Development Director Bob Nicholson explained the subject property is located near the Virgin River adjacent to the Bloomington Gardens South Subdivision, also called the Sunset Cove Subdivision. Surrounding property is all zoned R-1-10. He displayed a site map and advised that the applicants submitted to FEMA a letter of map amendments and documents with engineering details and FEMA has accepted that application which pushes out the 100 year flood line and removes the subject property from the flood plain. He displayed aerial photos of the site. The Planning Commission recommends approval.

Council Member Allen commented that others not in the flood plain were flooded in 2005, and inquired if these properties would be required to carry flood insurance.

Rick Rosenberg, representing the applicant, advised that any property adjacent to a flood plain is advised to carry flood insurance. The property will not be removed from the flood plain until March 2, 2009, and at that point it purchase of flood insurance would be at the property owner?s option. However, it is recommended that they do so. This property will carry mandated finished floor elevations so that no basements will be permitted.

Council Member Pike commented that the subject site is significantly higher now than it was in 2005 but it did have water on it as a result of the flood in 2005.



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December 4, 2008
Page Six

Mr. Rosenberg commented that if this property floods now, there will be huge problems in the entire area. He explained that the Virgin River Master Plan recommends a 1500 ft. minimum where there are no dikes. This area has 1700 ft. to the rock wall.

Council Member Bunker expressed concern that the property would be flooded.

Mr. Rosenberg advised that there is sufficient engineering evidence to support the proposed subdivision and it complies with the master plan.

Council Member Almquist commented that Baneberry and Mulberry will be joined taking away one of the longest culdesacs in the City. He inquired if the owner was going to complete the road.

Council Member Pike replied that the owner will complete the road. Residents in the area welcome the abandonment of the horse property but are nervous about the traffic. The roundabout should help but they are hoping the traffic patterns don?t change significantly.

There being no further public comment, Mayor McArthur closed the public hearing.

City Manager Gary Esplin commented that he has been on the site and the project will be a benefit to everyone in the area. The site is now protected, and if this property is flooded in the future, thousands will also be flooded. He stated that flood insurance was needed and a note placed on the plat about the flood hazard.

MOTION: A motion was made by Council Member Almquist to approve the zone change.
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 Allen - aye
Council Member Ppike - aye
Council Member Bunker - no

The motion carried.

ORDINANCE/AMEND PD ZONE/ORDINANCE:
Public hearing to consider a request for an amendment to a Planned Development Commercial zone on 3.07 acres located on the south side of Riverside Drive and just west of the U. S. Post Office (approximately 1100 E. Riverside Drive) to modify the site plan and add ?long term care center? to the list of permitted uses. Rich Lewis, applicant.

City Planner Ray Snyder explained that the change will affect the layout, elevations and uses. The PD zone was previously approved in 1997 and at that time had eight buildings. The General Plan identifies the area as commercial. The request now is for two buildings, each 25,000 sq. ft. Other buildings are planned in the future but there are no details. He displayed elevations for the care center and a site plan. The Planning Commission recommends approval subject to : (1) elevations, design and colors shall match the submittal presented at this meeting; (2) mitigate erosion hazard boundary per City ordinance; (3) an easement for the trail system shall be provided to the satisfaction of the City; (4) a site plan review application shall be submitted to Development Services for processing; (5) a photometric plan shall be provided; and (6) all standard conditions apply (parking, setbacks, etc.).

Reid Pope commented that the location for the trail easement is already in place.

Mayor McArthur opened the public hearing.

Ed Baca commented he supported the request, noting there was an increase in the senior population and a care center was greatly needed.

There being no further public comment, Mayor McArthur closed the public hearing.

Council Member Almquist inquired if there were any changes to the list of uses.

Mayor McArthur replied that the applicant wants to add just the two uses.



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December 4, 2008
Page Seven

MOTION: A motion was made by Council Member Bunker to approve the amended PD subject to the recommendations of the Planning Commission.
SECOND: The motion was seconded by Council Member Pike.
VOTE: Mayor McArthur called for a roll call vote, as follows:

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

The vote was unanimous and the motion carried.

PRESENTATION FROM THE WASHINGTON COUNTY ENERGY TASK FORCE:
Conservation Coordinator Ren? Fleming explained this presentation is the second in a series of four. She presented a power point presentation covering measures of home efficiency, HERS rating system, factors HERS evaluates, why as for Energy Star, insulation and sealing, air conditioning, small things make a difference, and conclusion.

Ms. Fleming provided an update on the new solar farm. 13.5 units have been sold. The tentative date for the ribbon cutting is January 14. The farm will be operational December 17. She advised that people are primarily buying one unit.

AGREEMENT:
Consider approval of a UDOT interlocal agreement.

City Manager Gary Esplin explained the agreement is with UDOT and Washington City for a study of transportation and road accesses in the area next to the new airport. He recommended approval of the agreement in the amount of $25,000.

MOTION: A motion was made by Council Member Pike to approve the agreement.
SECOND: The motion was seconded by Council Member Almquist.
VOTE: Mayor McArthur called for a vote as follows:

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

The vote was unanimous and the motion carried.

SALE OF EXCESS CITY PROPERTY:
Consider sale of excess City property.

City Manager Gary Esplin recommended sale of 2,963 sq. ft. of excess City property adjacent to Bloomington Hills Subdivision No. 10 to the adjacent property owner, Rick Hafen, in the amount of $2.00 a sq. ft. All departments of the City have reviewed the request.

MOTION: A motion was made by Council Member Bunker to approve the request.
SECOND: The motion was seconded by Council Member Pike.
VOTE: Mayor McArthur called for a vote as follows:

Council Member Bunker - aye
Council Member Pike - aye
Council Member Bunker - aye
Council Member Allen - aye

The vote was unanimous and the motion carried.

MOU:
Consider approval of a memorandum of understanding to provide services relating to the IronMan Triathlon.

City Manager Gary Esplin recommended approval of the agreement in the amount of $12,500. A final agreement has not been reached, but staff feels good enough about it to recommend approval subject to final review by the legal department.

Kevin Lewis, representing the Convention & Visitors Bureau, advised that St. George would receive $8 to $10 million dollars in economic impact each year from the event. The

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December 4, 2008
Page Eight

agreement is for five years. The event will be held the first Saturday of May each year and is also being sponsored by Washington County and the Utah Sports Commission.

MOTION: A motion was made by Council Member Almquist to approve the MOU.
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 Allen - aye
Council Member Bunker - aye

The vote was unanimous and the motion carried.

ACCEPT DONATION OF PROPERTY:
Consider acceptance of a donation of property.

City Manager Gary Esplin explained the property is located within a right-of-way along 1160 South and is being donated by Stephen Wade.

MOTION: A motion was made by Council Member Pike to accept the donation.
SECOND: The motion was seconded by Council Member Bunker.
VOTE: Mayor McArthur called for a vote as follows:

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

The vote was unanimous and the motion carried.

ACCEPT DONATION OF WATER:
Consider acceptance of a donation of approximately 600 acre feet of water in the vicinity of the Replacement Airport by Grand Circle Enterprises LLC, Calneva LLC, Southwest Airway Holdings Company LC and Organic Farms LC.

City Manager Gary Esplin explained that tomorrow is the deadline to finalize the purchase of the last portion of land at the new airport. The City is in possession of a letter indicating the terms of the settlement agreement are accepted without having to go to condemnation. He explained that the donors asked that a street in the area be named after their family but this has not been the City?s policy. They asked that they be allowed to honor their parents with a plaque in the airport terminal and the City has no problem with that. There is also the possibility of naming a road after them in the future.

Russ Gallian explained the donors would like to honor their mother who is still living. He advised that the gift of water is worth multi-million dollars and can probably be used to water a golf course in the South Block area. He advised there is an acknowledgment letter for the Mayor to sign and the intent is to close tomorrow but no later than next week. The water will be given at the time the conveyance of the land is finished.

MOTION: A motion was made by Council Member Pike to accept the donation of water and authorize the Mayor to sign the letter.
SECOND: The motion was seconded by Council Member Bunker.
VOTE: Mayor McArthur called for a vote as follows:

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

The vote was unanimous and the motion carried.

APPROVAL OF MINUTES:
Consider approval of the minutes of the regular City Council meeting held November 20, 2008.

MOTION: A motion was made by Council Member Bunker to approve the minutes as presented.

St. George City Council Minutes
December 4, 2008
Page Nine

SECOND: The motion was seconded by Council Member Pike.
VOTE: Mayor McArthur called for a vote as follows:

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

The vote was unanimous and the motion carried.

ADJOURN:
MOTION: A motion to 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 Allen - aye
Council Member Bunker - aye

The vote was unanimous and the motion carried.



________________________________
Gay Cragun, City Recorder