City Council Minutes

Thursday, December 3,2009



ST. GEORGE CITY COUNCIL MINUTES
REGULAR MEETING
DECEMBER 3, 2009, 4:00 P.M.
CITY COUNCIL CHAMBERS

PRESENT:
Mayor Daniel McArthur
Councilmember Suzanne Allen
Councilmember Gail Bunker
Councilmember Gloria Shakespeare
Councilmember Gil Almquist
Councilmember Jon Pike
City Manager Gary Esplin
City Attorney Shawn Guzman
City Recorder Gay Cragun

OPENING:
Mayor McArthur called the meeting to order and welcomed all in attendance. The pledge of allegiance to the flag was led by Councilmember Shakespeare, and the invocation was offered by Alex Wilkie.

Mayor McArthur advised that the new courthouse will be dedicated and open to the public on December 14. He explained that the tent being erected on City property across from the new courthouse is owned by a private entity and will be used for an ice skating rink on a temporary basis. The private owners are leasing property from the City on which to locate their business and see if an ice skating rink will work in St. George. The rink will open next week.

Mayor McArthur wished everyone a Merry Christmas and explained that the City is implementing an annual Mayors Holiday Season Award program for outside Christmas decorating. Visit the Citys website for nomination forms. The deadline for nominations is December 15, with awards presented at the City Council meeting on December 17.

A report was made by the group who traveled to Ibigawa, Japan as part of the marathon exchange program.

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

Mayor McArthur advised that Item 5A, to consider approval of a resolution of the City Council of the City of St. George, Utah (the Issuer), finalizing the terms and conditions for the issuance and sale of the Issuers (I) Excise Tax Revenue Bonds, Series 2009A (federally taxable - issuer subsidy - Build America Bonds) in the aggregate principal amount of $3,504,000 (the Series 2009A Bonds), and (ii) Excise Tax Revenue Bonds, Taxable Series 2009B (Issuer subsidy - Recovery Zone Bonds) in the aggregate principal amount of $6,722,000 (the Series 2009B Bonds and collectively with the Series 2009A Bonds, the Series 2009 Bonds); confirming the sale of said Series 2009 Bonds; authorizing the execution by the Issuer of a general indenture of trust, a first supplemental indenture of trust; and other documents required in connection therewith; authorizing the taking of all other actions necessary to the consummation of the transaction contemplated by this resolution; providing a severability clause; repealing resolutions in conflict; providing an effective date; and related matters, is tabled from the agenda.

APPROVAL OF CONTRACT:
Consider approval of the extension of the reuse line.

Purchasing Manager Connie Hood explained the agreement is with Desert Canyons Development. The amount the City is paying itself is $267,383.81.

City Manager Gary Esplin explained approval of this agreement will extend the reuse line to SITLA property west of River Road. Funding comes from the $15,000,000 the City received for its reuse project. He explained that the reuse line will eventually be extended to a proposed irrigation lake the Washington County Water Conservancy District wants to build in the Ft. Pierce area.

Mayor McArthur commented that the City is requiring new developments in this area to stub in dry water lines for secondary water wherever possible.
St. George City Council Minutes
December 3, 2009
Page Two

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

Councilmember Allen - aye
Councilmember Pike - aye
Councilmember Bunker - aye
Councilmember Shakespeare - aye
Councilmember Almquist - aye

The vote was unanimous and the motion carried.

City Manager Gary Esplin explained that Desert Canyons is also paying a portion as this is a cost share agreement.

APPROVAL OF CONTRACT:
Consider approval of a contract amendment to the GE O&M agreement.

Purchasing Manager Connie Hood explained the City is in its third year of a five year agreement with G.E.

City Manager Gary Esplin explained this agreement is for the Millcreek generating facility gas turbine project with G.E. A second turbine will eventually be added.

Energy Services Director Phil Solomon explained that the second turbine has come a long way in the past few months. All equipment has been set and the project site is huge compared to the first turbine project. The first fire will be held the first part of April and it will be turned over to the City for use on May 15. Gas has already been purchased for the season. To date there has not been one reportable accident. Millcreek 2 has $12,000,000 of environmental controls. The City is limited on hours of use with the first unit, but not on the second due to the pollution controls. GE has agreed to extend the contract another four years at almost the same price and adding hours to handle the second unit. There is a slight increase but it is minimal.

Mayor McArthur commented that each unit can generate at least one third of the power necessary to operate the City for short periods of time. The power can be rolled around.

Mr. Solomon explained that the City has changed its portfolio from 80% coal to 40% gas and 45% coal, with the rest in hydro and renewable energy. This has reduced the Citys risk by half to the CO2 cap and trade tax. There is a question whether natural gas is included in the cap and trade legislation.

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

Councilmember Bunker - aye
Councilmember Almquist - aye
Councilmember Allen - aye
Councilmember Pike - aye
Councilmember Shakespeare - aye

The vote was unanimous and the motion carried.

AGREEMENT:
Consider approval of an agreement to design the portion of the Main Street drainage line from the Skate Park to the Virgin River.

Purchasing Manager Connie Hood explained the agreement is with Rosenberg Associates in the amount of $89,500.

Project Engineer Cameron Cutler explained the drainage at the bottom of Main Street runs underneath Bluff Street. This segment will take the line from the Virgin River to the skate park. Another segment will be built later on which will take the line to 600 South.
St. George City Council Minutes
December 3, 2009
Page Three

City Manager Gary Esplin explained the monthly fee on the utility bills pays for projects such as this. Funds are earmarked for drainage projects where impact fees cannot be used.

Councilmember Almquist commented that the projects the drainage fee on the utility bills pay for are virtually unseen most of the time.

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

Councilmember Pike - aye
Councilmember Bunker - aye
Councilmember Almquist - aye
Councilmember Shakespeare - aye
Councilmember Allen - aye

The vote was unanimous and the motion carried.

CHANGE ORDER:
Consider approval of a change order on the Airport Parkway construction project.

Purchasing Manager Connie Hood explained the change order is with Quality Excavation in the amount of $224,213.86.

City Manager Gary Esplin explained this change order is for the road which comes in from Interchange No. 7 on the Southern Parkway to the airport. This is a cost share project, as discussed previously.

MOTION: A motion was made by Councilmember Shakespeare to approve the change order.
SECOND The motion was seconded by Councilmember Pike.
VOTE: Mayor McArthur called for a vote, as follows:

Councilmember Shakespeare - aye
Councilmember Pike - aye
Councilmember Allen - aye
Councilmember Bunker - aye
Councilmember Almquist - aye

The vote was unanimous and the motion carried.

CHANGE ORDER:
Consider approval of a change order to a cost reimbursement agreement for improvements on Airport Parkway.

Purchasing Manager Connie Hood explained the cost of this project is being shared between the City and Quality Venture One. The amount of this change order is $24,813.14.

City Manager Gary Esplin explained this item is tied to the previous item and is through private property and the owner wants to complete their improvements at this time. The cost is for the Citys share of the improvements being done at this time as well. The change order defines each partys share.

MOTION: A motion was made by Councilmember Allen to approve the change order.
SECOND: The motion was seconded by Councilmember Bunker.
VOTE: Mayor McArthur called for a vote, as follows:

Councilmember Allen - aye
Councilmember Bunker - aye
Councilmember Shakespeare - aye
Councilmember Almquist - aye

St. George City Council Minutes
December 3, 2009
Page Four

Councilmember Pike - aye

The vote was unanimous and the motion carried.

Purchasing Manager Connie advised that as pay requests are submitted and before any City funds are paid out, the legal work status of all employees and pay release forms must be filed with the City by all suppliers, contractors and subcontractors.

Councilmember Pike commented he noticed in the newspaper that Mayor McArthurs businesses and Councilmember Almquists business use e-verify. The City is working with the County on an ad encouraging all businesses to use the e-verify system.

Councilmember Almquist commented the City does not want to force businesses to use the e-verify system, but perhaps could encourage companies to voluntarily use e-verify by perhaps offering a break on the business license fee, etc. if they use it.

Purchasing Manager Connie Hood commented there is a link on the Citys website to the e-verify program and forms.

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

FEE WAIVER:
Consider a request for a fee waiver for use of the third floor of the Arts Building. Dixie High School Junior ROTC, applicant.

Becky Welch, President of the ROTC Booster Club, explained there are 150 cadets in the program from eleven area high and middle schools. She explained the Booster Club would like to reward the cadets for their community service and hard work by hosting a Christmas party for them on December 17. She requested a fee waiver for use of the Third Floor of the Arts Building.

City Manager Gary Esplin recommended the rental fee be waived but advised the City must cover its employee costs for set up and clean up.

MOTION: A motion was made by Councilmember Bunker to approve the request for rental fee waiver.
SECOND: The motion was seconded by Councilmember Almquist.
VOTE: Mayor McArthur called for a vote, as follows:

Councilmember Bunker - aye
Councilmember Almquist - aye
Councilmember Shakespeare - ay
Councilmember Almquist - aye
Councilmember Pike - aye

The vote was unanimous and the motion carried.

PRESENTATION OF ANNUAL FINANCIAL REPORT:
Presentation of the annual financial report with auditors report.

City Manager Gary Esplin advised that an annual independent audit is required by the State each year.

Ken Hinton explained the purpose of his presentation is to formally announce the successful completion of the fiscal year 2008-2009 audit. He has issued an opinion letter that the Citys financial statements are clean and in compliance with state and federal law. He encouraged anyone with questions to contact him.

Councilmember Bunker thanked Mr. Hinton for calling into a radio show during her latest election campaign to comment on the Citys budget and how it is balanced and how well run the City is.

Mr. Hinton replied he felt motivated to call. The City is well-administered from a financial standpoint and when he hears people speak negatively about the City, he feels compelled to make corrections.

St. George City Council Minutes
December 3, 2009
Page Five

Councilmember Almquist commented that Mr. Hintons job is to watch out for the citizens money.

SPECIAL EVENT PERMIT:
Consider a request for a special event permit for two dances at the Warehouse dance business located at 415 South Dixie Drive. Andrea Riggs, applicant.

Andrea Riggs, applicant, advised she would like to hold dances on December 11 and 12. The Friday night dance will be mainly for college students with hours of 9:00 p.m. to 1:00 a.m., and the Saturday night dance will be for high school students with hours of 8:00 p.m. to midnight.

Mayor McArthur commented there has been concern from the adjacent senior housing because of the late hours and what goes on the parking lot.

Captain Rich Farnsworth advised the security plan is acceptable.

Councilmember Almquist inquired if attendees would be allowed to go in and out of the dance.

Ms. Riggs replied that another admittance fee would be required to re-enter the dance. She advised that a wall has been built for the neighbors which has minimized some of the upset.

MOTION: A motion was made by Councilmember Shakespeare to approve the special event permit.
SECOND: The motion was seconded by Councilmember Allen.
VOTE: Mayor McArthur called for a vote, as follows:

Councilmember Shakespeare - aye
Councilmember Allen - aye
Councilmember Bunker - aye
Councilmember Pike - aye
Councilmember Almquist - aye

The vote was unanimous and the motion carried.

SPECIAL EVENT PERMIT:
Consider a request for a special event permit for two radio control flying events. Darrel Jensen, applicant.

Darrel Jensen, applicant, advised that these events have been held for the past 30 years at the old airport. He expressed appreciation to the City for letting them use property in West Bloomington for their new site. He advised they have plans for more events later in the year if all goes well.

City Attorney Shawn Guzman recommended that the applicants be allowed to charge spectator entrance fees on the condition the fees are used solely for improvement of the site and to reimburse direct expenses, not to pay salaries or to be used for any other purpose. The applicants have already improved the site quite a bit and have plans for more improvements. Camping is not allowed under the Citys ordinance, however, it is recommended that one trailer be allowed overnight at these events to act as security, but not at any other time. Lastly, he recommended that an addendum to the agreement be entered into as the insurance requirement is out of date and all these proposed suggestions can be incorporated into the addendum. There currently exists a 90 day notice requirement to change or terminate the agreement. He clarified that several people will be allowed to remain overnight in the one trailer. He advised Mr. Jensen that in addition to charging spectator admission, he could putout a donation box.

Mr. Jensen advised that on a day with good weather they will have 80 pilots and 300 spectators.

Karl Waldvogel advised that they have spent $55,000 in improvements at the new site as well as many donations from local businesses.


St. George City Council Minutes
December 3, 2009
Page Six

MOTION: A motion was made by Councilmember Almquist to approve the special event permit with the changes recommended by City Attorney Shawn Guzman and subject to an addendum to the original agreement.
SECOND The motion was seconded by Councilmember Pike.
VOTE: Mayor McArthur called for a vote, as follows:

Councilmember Almquist - aye
Councilmember Pike - aye
Councilmember Allen - aye
Councilmember Shakespeare - aye
Councilmember Bunker - aye

The vote was unanimous and the motion carried.

OFFER REBATES:
Consider a proposal to offer rebates for certain EnergyStar labeled appliances.

Conservation Coordinator Ren Fleming recommended that the City offer a limited rebate program for EnergyStar appliances. Funding for the program will come from the Citys general budget, which is why the program is being limited to $20,000. The program is for people with primary homes in St. George, although rebates for refrigerators for those with secondary homes here will be considered. The program is also limited to electric water heaters as Questar offers a rebate for EnergyStar gas water heaters.

MOTION: A motion was made by Councilmember Allen to approve the rebate program.
SECOND: The motion was seconded by Councilmember Shakespeare.
VOTE: Mayor McArthur called for a vote, as follows:

Councilmember Allen - aye
Councilmember Shakespeare - aye
Councilmember Bunker - aye
Councilmember Pike - aye
Councilmember Almquist - aye

The vote was unanimous and the motion carried.

APPOINTMENTS:
Appointments to various boards and commissions of the City.

Mayor McArthur recommended that Allen Jacobi be reappointed to the Art Museum Board and Troy Norton and Diane Jones be appointed to the Shade Tree Board.

MOTION: A motion was made by Councilmember Bunker to make the appointments as recommended by Mayor McArthur.
SECOND: The motion was seconded by Councilmember Almquist.
VOTE: Mayor McArthur called for a vote, as follows:

Councilmember Bunker - aye
Councilmember Almquist - aye
Councilmember Pike - aye
Councilmember Allen - aye
Councilmember Shakespeare - aye

The vote was unanimous and the motion carried.

Mayor McArthur asked City Council members to update their conflict of interest statements.

APPROVAL OF MINUTES:
Consider approval of the minutes of the November 19, 2009 City Council meeting.
MOTION: A motion was made by Councilmember Pike to approve the minutes as presented.

St. George City Council Minutes
December 3, 2009
Page Seven

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

Councilmember Pike- aye
Councilmember Bunker - aye
Councilmember Allen - aye
Councilmember Shakespeare - aye
Councilmember Almquist - aye

The vote was unanimous and the motion carried.

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

Councilmember Bunker - aye
Councilmember Almquist - aye
Councilmember Pike - aye
Councilmember Allen - aye
Councilmember Shakespeare - aye

The vote was unanimous and the motion carried.

RECONVENE:
MOTION: A motion to reconvene was made by Councilmember Almquist.
SECOND The motion was seconded by Councilmember Pike.
VOTE: Mayor McArthur called for a vote, as follows:

Councilmember Almquist - aye
Councilmember Pike - aye
Councilmember Bunker - aye
Councilmember Shakespeare - aye
Councilmember Allen - aye

The vote was unanimous and the motion carried.

MISCELLANEOUS DISCUSSIONS:
Brief discussions were held with regard to a request by the College for City funding to build a sign on top of the scoreboard, moving tenants from the old airport to the new airport, fire sprinkler requirements for hangars, a suggestion by Carol Sapp with regard to vacant homes and their relation to the landscaping ordinance, the purchase of a statue in the downtown historic district, and the community garden.

ADJOURN:
MOTION: A motion was made by Councilmember Almquist to adjourn.
SECOND: The motion was seconded by Councilmember Shakespeare.
VOTE: Mayor McArthur called for a vote, as follows:

Councilmember Almquist - aye
Councilmember Shakespeare - aye
Councilmember Allen - aye
Councilmember Bunker - aye
Councilmember Pike - aye

The vote was unanimous and the motion carried.




_______________________________
Gay Cragun, City Recorder