City Council Minutes

Thursday, January 21,2010



ST. GEORGE CITY COUNCIL MINUTES
REGULAR MEETING
JANUARY 21, 2010, 4:00 P.M.
CITY COUNCIL CHAMBERS


PRESENT:
Mayor Pro Tem Gail Bunker
Councilmember Gil Almquist
Councilmember Jon Pike
Councilmember Ben Nickle
Councilmember Gloria Shakespeare
City Manager Gary Esplin
Deputy City Attorney Paula Houston
City Recorder Gay Cragun

EXCUSED:
Mayor Daniel McArthur
City Attorney Shawn Guzman

OPENING:
Mayor Pro Tem Bunker called the meeting to order and welcomed all in attendance. The pledge of allegiance was led by Councilmember Almquist and the invocation was offered by George Romney.

Police Chief Marlon Stratton explained that the Volunteers in Public Safety assist the Police Department in many duties to help make the community better. Sgt. Heidi Palmer advised there are 33 volunteers in the program who have donated over 450 hours a month or 5400 hours a year, which is the equivalent of 2.8 police officers. This saves the City over $100,000 a year. She introduced the members present and the Police Chief and City Council presented them with certificates of appreciation.

CONSENT CALENDAR:
Consider approval of the financial statement for December, 2009.

City Manager Gary Esplin explained that revenues are still less than hoped and additional 3-5% cuts to the budget will have to be made.

Finance Director Phil Peterson advised staff has been concerned with collection of property taxes needed to make the budget balance, but November and December collections were good and the City is a little ahead of where it was last year at this time. He stated he was cautiously optimistic that the City will be able to meet its revenue projections from property taxes. Other funds however are at their lowest levels in the 20+ years he has been employed with the City. On the expenditure side, all departments are within the year-to-date projections of where they should be. It is hoped the Ironman event will increase sales tax revenue to the level needed. The majority of the Citys budget is in personnel costs, but positions which become vacant are not being filled at this time. Any further cuts to personnel will be extremely painful.

Councilmember Almquist inquired how SunTran revenue relates to revenue in years past.

Mr. Peterson replied that ridership and revenues are higher than ever, but this is just a small part of what it takes to run the SunTran operation. Another large revenue producer is the advertising on the back of the buses, but revenue from this source is down.

Mayor Pro Tem Bunker if dinosaur museum entrance fees were included in the art museum entrance fees figures.

Mr. Peterson replied the dinosaur museum has its own fund and there is a positive cash flow.

Councilmember Pike commented the City has tried hard not to raise fees during these hard times even though other municipalities have not been so successful. The Citys
careful management has avoided the necessity of raising fees while not having to cut services or staff.

St. George City Council Minutes
January 21, 2010
Page Two

Finance Director Phil Peterson explained that his property taxes were $1200 this year. Out of that figure, only $153 comes to the City or 12-13% of the property taxes charged. The majority of property taxes go to the school district. With that 12-13%, the City must fund its police department, fire department, streets department, etc., so it is important that St. George remain business friendly and work with its businesses, as the majority of City revenue comes from sales tax. He encouraged everyone to shop local.

MOTION: A motion was made by Councilmember Pike to approve the financial statement.
SECOND: The motion was seconded by Councilmember Almquist.
VOTE: Mayor Pro Tem Bunker called for a vote, as follows:

Councilmember Pike - aye
Councilmember Almquist - aye
Councilmember Nickle - aye
Councilmember Shakespeare - aye
Mayor Pro Tem Bunker - aye

The vote was unanimous and the motion carried.

AWARD OF BID:
Consider award of bid for tires.

Purchasing Manager Connie Hood advised bid proposals were sent to five distributors in the local area but only two bids were received. She recommended renewal of a blanket purchase order with the lowest responsive bidder, Desert Tire, in an amount not to exceed $110,000. Desert Tire has submitted the lowest bid and has been the vendor of choice for the past three years and has done an excellent job. She advised the tires are for all City and police vehicles, excluding the SunTran buses.

MOTION: A motion was made by Councilmember Shakespeare to renew the blanket purchase order with Desert Tire in the amount of $110,000.
SECOND: The motion was seconded by Councilmember Pike.
VOTE: Mayor Pro Tem Bunker called for a vote, as follows:

Councilmember Shakespeare - aye
Councilmember Pike - aye
Councilmember Almquist - aye
Councilmember Nickle - aye
Mayor Pro Tem Bunker - aye

The vote was unanimous and the motion carried.

Councilmember Almquist inquired if Desert Tire is just a wholesale warehouse or also a commercial business that services the public.

Ms. Hood replied Desert Tire is a major distributor.

Councilmember Almquist inquired if they are required to qualify under the e-verify program as a requirement of doing business with the City.

Ms. Hood replied this is part of the documents they are required to submit.

AWARD OF BID:
Consider award of bid for the Suntran Administration Building.

Purchasing Manager Connie Hood advised there were 15 bidders and of those Garff Construction submitted the low bid. Their bid, however, did not include risk insurance. They were asked to change their bid to include the risk insurance, which they did, and they were still the low bidder. All verifications have been performed and it is recommended they be awarded the bid in the amount of $812,900. They are based in Salt Lake City.


St. George City Council Minutes
January 21, 2010
Page Three

Ryan Marshall advised Garff Construction has had a local office in St. George for the past five to six years so they are considered local. Of the $812,000 contract, $564,000 will remain in Washington County due to the use of local suppliers. The City was awarded $1.1 million in stimulus funding with no local match to fund construction of this building.
The building will be located in the dirt parking area immediately adjacent to the present building. After award of the bid Garff will have ten days to obtain their bid bond. The City will then issue a notice to proceed and there is an eight month scheduled production time. Ridership is between 26,000-30,000 rides per month. The City receives $350,000 in TIF funds to operate the system, and the City has been able to maintain at that level since 2004. Staff has been creative in applying for federal funding and grants.

Councilmember Shakespeare inquired if more benches and shelters were planned.

Mr. Marshall replied staff has identified 30-35 places where they would like to place benches and/or permanent structures. Structures, however, require easements from property owners which sometimes can be difficult to obtain. Additional benches will first be placed on City property.

MOTION: A motion was made by Councilmember Almquist to award the bid to Garff Construction in the amount of $812,900.
SECOND: The motion was seconded by Councilmember Shakespeare.
VOTE: Mayor Pro Tem Bunker called for a vote, as follows:

Councilmember Almquist - aye
Councilmember Shakespeare - aye
Councilmember Pike - aye
Councilmember Nickle - aye
Mayor Pro Tem Bunker - aye

The vote was unanimous and the motion carried.

Mayor Pro Tem Bunker invited two Scouts in the audience to introduce themselves.

RESOLUTION:
Consider approval of a resolution adopting rates and charges at the Replacement Airport.

City Manager Gary Esplin explained this issue has been discussed in previous work meetings. A resolution is required any time fees or charges are implemented.

Airport Manager Rick Crosman advised the spreadsheet contains fees and charges from airports of similar sizes. It is recommended that a landing fee of $1.05 per thousand pounds be charged for aircraft 12,500 pounds or larger. Landing fees are not proposed for any aircraft under 12,500 pounds which includes all single engine and most twin engine aircraft. The current rate is $1.00 per thousand pounds. A fuel flowage fee of six cents per gallon is recommended and supported by regional norms. The current rate is one cent a gallon. For rental cars it is recommend that 10% of the gross revenue plus $1.50 per sq. ft. be charged for rental space. It is recommended that 18 cents per sq. ft. per year be charged for ground leases (hangars). The current rate is 15 cents per sq. ft. The hangar owner is responsible for building his or her own facility from the ground up. It is recommended that 30 cents per sq. ft. be charged for improved space, which is space the City will build such as the apron. He recommended that tie down fees be charged and terminal building parking fees. It is recommended that the first hour of parking at the terminal be free, with a charge of $4.00 per day after that. All recommended fees are supported by regional norms.

City Manager Gary Esplin advised the parking lot at the terminal will not be manned. Those wishing to park for longer than one hour will have to pay by credit card or cash at the automated parking attendant.

Mr. Crosman recommended that $1 per sq. ft. per month be charged for office space in the terminal, as well as a security fee for issuance of an access card. Advertising space in the terminal will be provided for aviation-related services. Ground transportation fees are recommended at $50.00 a month for cabs and limos. Mr. Crosman advised that


St. George City Council Minutes
January 21, 2010
Page Four

currently the west side of the general aviation area at the Replacement Airport is completely full and the east side is 80% committed.

Councilmember Pike advised that both areas can be expanded in the future.

Mr. Crosman continued saying that he and airport staff are working with existing tenants with regard to moving their existing hangars. They will not have to re-engineer their existing structures but will have to install sprinkling systems to meet fire codes. No City of St. George hook-up fees will be charged. The City is trying to assist the current tenants in moving with as little expense as possible. Mr. Crosman explained the size of hangars range from 50' x 50' to 100' x 200'. Lots are typically 100' x 100'. Tenants are charged for the lot size, not the hangar size.

Mayor Pro Tem Bunker commented that the recommended fee of $180 a year for a 100' x 100' ground lease is reasonable.

MOTION: A motion was made by Councilmember Shakespeare to approve the resolution adopting fees and charges at the Replacement Airport.
SECOND: The motion was seconded by Councilmember Nickle.
VOTE: Mayor Pro Tem Bunker called for a roll call vote, as follows:

Councilmember Shakespeare - aye
Councilmember Nickle - aye
Councilmember Pike - aye
Councilmember Almquist - aye
Mayor Pro Tem Bunker - aye

The vote was unanimous and the motion carried.

BEER LICENSE:
Consider a request for an off-premise beer license for the Walmart Supercenter at 2610 So. Pioneer Rd. Lori Lee Cottrell, applicant.

City Manager Gary Esplin explained Walmart currently has a license but has a new agent for the license. The application meets all requirements and staff recommends approval.

MOTION: A motion was made by Councilmember Pike to approve the license.
SECOND: The motion was seconded by Councilmember Shakespeare.
VOTE: Mayor Pro Tem Bunker called for a vote, as follows:

Councilmember Pike - aye
Councilmember Shakespeare - aye
Councilmember Nickle - aye
Councilmember Almquist - aye
Mayor Pro Tem Bunker - aye

The vote was unanimous and the motion carried.

BEER LICENSE/LOCAL CONSENT:
Consider a request for an on-premise beer license and local consent for an on-premise (non-tavern) beer license for Casa Dona Marias Mexican Cuisine located at 720 East 700 South. Miguel Perez, applicant.

City Manager Gary Esplin explained the old restaurant at this site has been rebuilt. The new owner has done a great job in renovating what was there. He also runs another restaurant in town and there have been no problems in the past. The application meets all requirements and staff recommends approval.

Richard Rivera introduced Miguel Perez, applicant, and advised he is the development coordinator for Mr. Perez. The restaurant will open in February and is a 4,800 sq. ft. Mexican grill. Mr. Perez owns Pancho and Leftys. The new restaurant will employ 40 people. An open house will be held soon.

MOTION: A motion was made by Councilmember Pike to approve the beer license and local consent.

St. George City Council Minutes
January 21, 2010
Page Five

SECOND: The motion was seconded by Councilmember Shakespeare.
VOTE: Mayor Pro Tem Bunker called for a vote, as follows:

Councilmember Pike - aye
Councilmember Shakespeare - aye
Councilmember Almquist - aye
Councilmember Nickle - aye
Mayor Pro Tem Bunker - aye

The vote was unanimous and the motion carried.

QUIT-CLAIM DEED:
Consider approval of a quit-claim deed to Ralph and Reta McArthur of meander land located near their property and the Virgin River.

City Manager Gary Esplin explained the City is quit-claiming its interest in meander property near the McArthur home to them and they will quit-claim meander property east of the bridge on River Road to the City.

MOTION: A motion was made by Councilmember Shakespeare to approve the quit-claim deed.
SECOND: The motion was seconded by Councilmember Pike.
VOTE: Mayor Pro Tem Bunker called for a vote, as follows:

Councilmember Shakespeare - aye
Councilmember Pike - aye
Councilmember Almquist - aye
Councilmember Nickle - aye
Mayor Pro Tem Bunker - aye

The vote was unanimous and the motion carried.

SET PUBLIC HEARING:
City Planner Ray Snyder advised that the Planning Commission, at its meeting held January 12, 2010, recommended a public hearing be scheduled for February 4 to consider an amendment to Title 10, Chapter 11, Section 2, St. George City Code, to add indoor archery with archery retail sales as a conditional use in the M-1 zone.

MOTION: A motion was made by Councilmember Shakespeare to set the public hearing as recommended.
SECOND: The motion was seconded by Councilmember Almquist.
VOTE: Mayor Pro Tem Bunker called for a vote, as follows:

Councilmember Shakespeare - aye
Councilmember Almquist - aye
Councilmember Pike - aye
Councilmember Nickle - aye
Mayor Pro Tem Bunker - aye

The vote was unanimous and the motion carried.

PRELIMINARY PLAT:
Jay Sandberg advised the applicant is proposing to condominiumize an existing office building in the Tonaquint Hills business area off Silicon Way. 21 units are proposed. Staff has asked that common landscape areas be completed and all fire and building codes must be met. An association will take care of the landscaping.

MOTION: A motion was made by Councilmember Pike to approve the preliminary plat subject to the recommendations of the Planning Commission.
SECOND: The motion was seconded by Councilmember Nickle.
VOTE Mayor Pro Tem Bunker called for a vote, as follows:

Councilmember Pike - aye
Councilmember Nickle - aye
Councilmember Almquist - aye

St. George City Council Minutes
January 21, 2010
Page Six

Councilmember Shakespeare - aye
Mayor Pro Tem Bunker - aye

The vote was unanimous and the motion carried.

BIOMASS COLLECTION SYSTEM:
Consider approval of the scope of work for the biomass collection system.

City Manager Gary Esplin explained this project is located at the landfill.

Energy Services Director Phil Solomon explained that the City received a grant, part of which will go toward this work. The City has been working with the Washington County Solid Waste Board to obtain rights to drill some test wells at the landfill to determine if there is enough methane gas of the right quality to install a one megawatt gas-fired electric generator, and this approval has been obtained. Approval of this item will allow the City to enter into a technical services agreement with Siemens Corp. to put in the wells and do testing and write a report. The contract with Siemens is in the amount of $190,000. After the report is complete the City will analyze it and decide if it is worth proceeding with the project. If so, it will cost $3-4 million to build a full scale generation project. He recommended that any approval be made subject to legal review. He advised he was confident there is enough gas and of a sufficient quality.

Councilmember Shakespeare inquired how long it would take for the City to recoup its cost.

Mr. Solomon replied he has not done a cost benefit ratio yet and he will not know the cost until the wells have been drilled.

Mayor Pro Tem Bunker inquired if staff has applied for any grants to help with the cost.

Mr. Solomon replied that the City applied for two grants, but both were denied. The City was fortunate to receive stimulus funds to help with this renewable project.

Councilmember Pike inquired how the project would be paid for in the future.

City Manager Gary Esplin replied that no matter how much power is generated, it will be at a higher cost than that on the open market. The City is trying to diversify its portfolio; it now has wind, hydro, gas and coal in its portfolio, and each is a different cost.

Energy Services Director Phil Solomon commented that in addition to diversifying the Citys portfolio, this project will allow the City to take advantage of a renewable resource. At some time in the future the City will be required to have a certain percentage of its portfolio in renewable resources.

City Manager Gary Esplin commented the City gets only 40% of its power from coal-fired plants and lately began diversifying its portfolio.

Councilmember Almquist commented when the percentage of a portfolio is mandated, the cost of installation will go through the roof.

MOTION: A motion was made by Councilmember Shakespeare to approve the scope of work subject to legal review of the documents.
SECOND: The motion was seconded by Councilmember Almquist.
VOTE: Mayor Pro Tem Bunker called for a vote, as follows:

Councilmember Shakespeare - aye
Councilmember Almquist - aye
Councilmember Nickle - aye
Councilmember Pike - aye
Mayor Pro Tem Bunker - aye

The vote was unanimous and the motion carried.


St. George City Council Minutes
January 21, 2010
Page Seven

APPROVAL OF MINUTES:
Consider approval of the minutes of the January 7, 2010 City Council meeting.

MOTION: A motion was made by Councilmember Almquist to approve the minutes as presented.
SECOND: The motion was seconded by Councilmember Pike.
VOTE: Mayor Pro Tem Bunker called for a vote, as follows:

Councilmember Almquist - aye
Councilmember Pike - aye
Councilmember Shakespeare - aye
Councilmember Nickle - aye
Mayor Pro Tem Bunker - aye

The vote was unanimous and the motion carried.

ADJOURN TO EXECUTIVE SESSION:
MOTION: A motion to adjourn to an executive session to discuss litigation and a property sale was made by Councilmember Nickle.
SECOND: The motion was seconded by Councilmember Almquist.
VOTE: Mayor Pro Tem Bunker called for a roll call vote, as follows:

Councilmember Nickle - aye
Councilmember Almquist - aye
Councilmember Pike - aye
Councilmember Shakespeare - aye
Mayor Pro Tem Bunker - aye

The vote was unanimous and the motion carried.

RECONVENE AND ADJOURN:
MOTION: A motion was made by Councilmember Pike to reconvene and adjourn.
SECOND The motion was seconded by Councilmember Almquist.
VOTE: Mayor Pro Tem Bunker called for a vote, as follows:

Councilmember Pike - aye
Councilmember Almquist - aye
Councilmember Nickle - aye
Councilmember Shakespeare - aye
Mayor Pro Tem Bunker - aye

The vote was unanimous and the motion carried.



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Gay Cragun, City Recorder