Minutes of the Price City Council Meeting

City Hall: Price, Utah

February 14, 2007 5:30 p.m.

Present:

Mayor Joe L. Piccolo Gary Sonntag, Public Works Director/City Engineer

Councilmembers: Nick Sampinos, City Attorney

Jeff Nielson John Daniels, Human Resource Director

Richard Tatton Pat Larsen, Finance Director

Kathy Hanna-Smith Kevin Drolc, Police Captain

Rick Davis Laurie Tryon, City Recorder

Jeanne McEvoy

Excused Absence: Aleck Shilaos, Police Chief-Bret Cammans, Customer Service Director

Others Present: C.J. McManus, Nancy Cammans, Ryan Falk, Dondra Nance, Cameron Wachter, Madelaine Nyffeler, Jeff Richens, Boy Scout Troop 907 Nathan Fausett and Boy Scout Troop 281 Dylan Jarrett, Charles Fausett, Ben Waldon, Stewart Scoville, Mike Hughes

Scout Troop 902, Nathan Fausett led the Pledge of Allegiance. Roll was called with the above Councilmembers and staff in attendance.

1. PUBLIC INPUT- Cameron Wachter presented a letter of apology to the Mayor and City Council for his participation in the graffiti damage on the Mont Harmon Junior High School building. The Mayor and Council commended Cameron for his admirable accountability in this crime.

2. COUNCILMEMBERS REPORT- Update

The Mayor and Councilmembers presented an update on the activities and functions in which they have participated.

3. MAIN STREET PROGRAM- Update by Nancy Cammans

Nancy Cammans presented an update on the Main Street Program. Nancy is very pleased with the response and involvement from the community and downtown businesses. The attention to the main street area businesses has increased. Involving children from local schools has been extremely rewarding and successful. The merchant’s enthusiasm is rising and the local media have been very supportive in their efforts to cover the downtown events. The new officers have been chosen as follows: Chairperson-James Liin, Vice Chairperson-Jan Guptil, Treasurer-Wilma Howa, Secretary-Jeri Timothy and Duston Heaton-Promotion Chair. The yearly program fee is $250.00 with more than half of the members already paid for the year. The Culture Connection events in relation to the Main Street program have not been attended as well as hoped, but with each event, and as weather changes, attendance should improve. The St. Patrick’s Day Parade is coming in March as well as a tourism conference during the month of May. The Main Street program will encourage merchants to stay open late during these events.

4. PUBLIC HEARING- Mid-Year 2006-2007 Budget Revision

MOTION. Councilmember Tatton moved to open the public hearing for the mid-year 2006-2007 budget revision. Motion seconded by Councilmember McEvoy. Motion Carried.

The Public Hearing was scheduled to make any necessary mid-year revisions to the budget. No public comments were made. MOTION. Councilmember Hanna-Smith moved to close the public hearing and to authorize and approve the budget revisions for 2006-2007. Motion seconded by Councilmember Tatton and carried.

5. BID OPENING- Cove Basin Park Trailhead Pre Cast Concrete Restroom

Bids were received for the Cove Basin Park Trailhead pre cast concrete restroom. These restrooms are not heated and therefore are winterized each winter. This item is within budget. Bids were received from the following companies:

AES Precast Concrete Building Systems $ 43,800.00

Stabil Concrete Products, LLC $ 57,929.52

MOTION. Councilmember Tatton moved to authorize staff to review proposals and award the contract within budget. Motion seconded by Councilmember Hanna-Smith. Motion carried.

6. CASTLE VALLEY COMMUNITY THEATRE- Fee Waiver- J.S. Scoville

Castle Valley Community Theatre (CVCT) is requesting a fee waiver for their upcoming theatre event that will be held from March 12 to April 24, 2007. The group has used the facility before and is very knowledgeable of the auditorium’s sound and lighting equipment. Students in the theatre group learn how to use the equipment and are participating in structured activities during the rehearsals and performance time. Although CVCT is a non-profit organization, entry fees are collected to pay for costumes, equipment and royalty fees that must be paid in order to use the play script. A fee waiver would help alleviate the extra costs for the group. MOTION. Councilmember Hanna-Smith moved to approve the fee waiver request for Castle Valley Community Theatre. Motion seconded by Councilmember Nielson. Motion carried.

7. NEWHOUSE HOTEL- Consideration, Direction and Possible Action

Councilmember Tatton requested discussion regarding the condition of the old Newhouse Hotel building on Main Street. Although the taxes are still being paid on the building, it has been neglected on both the inside and the outside and has become an eyesore for our shopping district and the Main Street area. The owner has been recently contacted by Price City with no response. This building will be the focus of the Community Progress committee as part of their continual review of buildings throughout the City that appear neglected. This building is one of the main focal points in our downtown area and therefore receives attention from citizens and visitors. Price City will again contact the owner for a response as to how this problem can be resolved. The Price City Building Inspector had inspected the building a few years ago and found it to be of sound structure. If Price City is able to contact the owner again, it would be a great time to communicate the need for maintenance and safety improvements of the building and the negative effect on the property value of surrounding businesses. MOTION. Councilmember Tatton moved to contact Mr. Harris once again in order to work on positive solutions for the building. Motion seconded by Councilmember Hanna Smith. Motion carried.

8. PRICE CITY COMMUNITY CENTER PURCHASE OFFER- Consideration, Direction and Possible Action

Councilmember Rick Davis disclosed that he is related to the person making the offer. As no financial gain would be realized by Councilmember Davis it was not necessary for the Council to excuse Councilmember Davis from this item.

An offer to purchase the Price City Community Center along with the common parking and easements has been received by Price City. This offer comes from local business owners that wish to preserve the history of Price City by keeping the building in its original condition. The building could be renovated and leased out for office space. The building has been stripped inside of its doors, flooring, walls etc. as it is ready to be demolished. This offer comes at a time when action has already been taken to tear the building down and Price City would like to keep the property for future expansion but does appreciate the interest in preservation of city buildings. MOTION. Councilmember McEvoy moved to decline the purchase offer and directed that a letter be forwarded to the offeror by staff. Motion seconded by Councilmember Hanna-Smith and carried.

9. INTERMOUNTAIN POWER PROJECT #3-Authorization of Documents Pertinent To Price City’s Participation in Intermountain Power Project#3

A. Intermountain Unit #3 Power Sales Contract

B. Confirmation of Nick Tatton as UAMPS Representative

C. Certificate of Participant and Electric System Bond Information

D. Legal Opinion of legal counsel to Participant

E. Second Amendment to Amended and Restated Agreement for Joint and Cooperative Action

Nick Tatton presented the City Council with information relative to Price City’s participation through the UAMPS Association in the Intermountain Power Project (IPP#3) and pointed out the following information:

· IPP Unit 3 is ½ owned by UAMPS; of that ½ ownership, Price City has an opportunity to acquire 1.111% of the generation capacity, representing 5MW of power. Other plant owners include Pacificorp, Nevada and California participants.

· The 5MW of power Price City is able to acquire may be increased by up to 15% up to 1.2778% of the capacity based on an 85% subscription requirement (once 85% or more subscription is reached, remaining outstanding subscription may be allocated to the individual participants based on their proportionate involvement).

· The UAMPS ownership of ½ of the facility is equivalent to approximately $900,000,000 ($900 Million); Price City is potentially able to acquire1.111% of that commitment which is approximately $10,000,000 (10 Million) in construction costs. Price City’s share of the financing will be included on the price of power purchased from the plant when operating (because we did not finance our own $10 Million and deliver those funds to UAMPS in advance);

· Commercial operation of IPP #3 is scheduled for 2012; pending final hearings on the air permit issued- in November 2007. Additional hearings are due to environmental lawsuits brought by Western Resource Advocates (Grand Canyon Trust and Sierra Club);

· Price City will be responsible to take or pay for power produced up to Price City’s proposed entitlement share (5MW) upon commencement of commercial operation in 2012: All power will be assigned to the UAMPS pool and then distributed to Price City from there. Presumably, if Price City does not want or need some or all of the power the City may be able to enter into excess power sales agreements to permit other entities within the UAMPS organization (or outside market sales) to purchase and utilize the power- essentially at no cost or profit to Price City. The financial risk to Price City involves the ability to use or find a use for the power generated since it will be purchased by Price City regardless of ultimate use- through internal re-sale on the Price City system or through sale to another entity.

The Power Board has determined that between now and 2012; Price City will have a need to re-negotiate existing power purchase contracts with Utah Power and the potential availability of power to Price City from IPP#3 may mitigate power costs and availability factors. Options discussed by the Council for future power supplies to Price City generally include: (1) continued power purchases in total from Utah Power; (2) power purchase in total through UAMPS (this will require Price City to “buy-in” to several other UAMPS projects); or (3) combined UAMPS and Utah Power provision of wholesale power to Price City. Councilmember Davis had concerns regarding the potential $10 Million dollar risk. Nick Tatton reported that although there are always risks, especially with a transaction of this magnitude, as long as the power is used, the bond will repay itself through use of the power. Councilmember Nielson indicated that he had not fully reviewed the matter and that he did not fully understand the issue at this time and therefore could not support the involvement of Price City at this time without a better understanding of the overall matter. Nick Tatton informed the Council of the past process leading up to the decision on Price City involvement (signing of power contracts) tonight. Nick also reminded the Council of the potential secondary benefits the Price community may receive from the project such as coal production and economic development initiated by the IPP#3 project. MOTION. Councilmember Tatton moved to authorize Price City’s participation of the UAMPS IPP#3 Project Development to include the following actions and to authorize and approve agenda item #23 Resolution 2007-05, and to further authorize the Mayor, City Recorder and City Attorney to sign the documents on behalf of Price City.

· Move to authorize the Mayor and City Recorder to complete and sign on behalf of Price City all copies of the minutes and Resolution 2007-05.

· Move to authorize the Mayor, City Recorder and City Attorney to complete and sign all copies on behalf of Price City, the Intermountain Unit 3 Power Sales Contract between Utah Associated Municipal Power Systems and Price City.

· Move to re-confirm that Nick Tatton is the duly assigned participant’s (Price City) representative as indicated in paragraph 9, page 2 of the Power Sales Contract.

· Move to authorize the Mayor and City Recorder to complete and sign all copies, on behalf of Price City, the Certificate of Participant and further authorize and direct the Price City Finance Department to include all necessary Price City Electric System bond information.

· Move to authorize the Price City Attorney to draft and deliver signed copies of the Opinion of Legal Counsel to Participant on attorney letterhead.

· Move to authorize the Mayor, City Recorder and City Attorney to complete and sign all copies of the Second Amendment to Amended and Restated Agreement for Joint and Cooperative Action on behalf of Price City.

· Move to authorize and approve Resolution 2007-05 and authorize the Mayor and City Recorder to sign the resolution on behalf of Price City.

Motion seconded by Councilmember McEvoy. Motion carried with the following votes:

Nay- Councilmember Nielson Aye- Councilmember Hanna-Smith

Councilmember Davis Councilmember Tatton

Councilmember McEvoy

10. HOME OCCUPIED PERMITS

Councilmember Jeff Nielson reported that the Planning and Zoning Commission gave favorable recommendations for the following requests for Home Occupied Permits.

a. Mitchell’s Power Clean-N-Detail-772 Briarwood Circle- Alan Mitchell, Owner Business- Final

b. Amber’s Haircare- 840 N. 400 E., Amber Gleave, Owner -Business-Final

MOTION. Councilmember Nielson moved that the Home Occupied Use Permits be approved. Motion seconded by Councilmember McEvoy. Motion carried.

11. CONDITIONAL USE PERMITS

Councilmember Jeff Nielson reported that the Planning and Zoning Commission tabled the following request for a Conditional Use Permit.

a. Birds- 464 E. 400 So.- Eddie Horvath, Owner- Business-Final- STRUCK

12. PROPERTY ADJUSTMENT- Mr. Charles Fausett

Mr. Fausett has become aware of a property encroachment on his deceased father’s property. Approximately 40 years ago, his father purchased a parcel of land where his home is now located and fenced in the yard to the east side. It has now been discovered that a portion of the fenced area did not actually belong to his father and that it is considered “no mans land” by title companies, and the only indications of ownership relate to spaces considered public and extra at the time of the subdivision’s creation. Price City does not own the property, but as the authorizing jurisdiction, is obligated to assist in the remedy of the situation. It is recommended the City Council authorize staff to prepare a quit claim deed relinquishing the described property in question to Mr. Charles Fausett consistent with his prescriptive use and to authorize the Mayor and City Recorder to sign the quit claim deed. Price City will release and vacate any interest it may have by signing the Quit Claim Deed. The area/subdivision has had other similar property issues over time and the transaction and process has been reviewed by the City Attorney and a local title company. MOTION. Councilmember Nielson moved to vacate and to approve the property adjustment for Mr. Fausett and to allow the Mayor and City Recorder to sign a Quit Claim Deed relinquishing the City’s interest in the described real property in question to Mr. Fausett. Motion seconded by Councilmember McEvoy. Motion carried.

CONSENT ITEMS- MOTION. Councilmember McEvoy moved that items #13 through #27 be approved. Motion seconded by Councilmember Davis and carried.

13. MINUTES-

February 2, 2007 Workshop

January 24, 2007

14. MEADS WASH FLOOD MITIGATION PROJECT- Grant Award from the Utah Department of Public Safety, the Utah Division of Emergency Services and Homeland Security

15. COVE BASIN STORM WATER CHANNEL- FEMA Letter of Map Amendment- Submit Application and Fee.

16. WATER METER FOR THREE (3) MILLION GALLON WATER TANK- Purchase an 8-inch Badger Water Meter

17. HOMESTEAD BOULEVARD LOOP, PHASE I- UDOT Consultant Services, HW Lochner Inc.- Contract Modification

18. BUILDING INSPECTION – Sunrise Engineering, Contract Inspection Services, Partial Payment #5

19. BEAR RBOG- Contract for Services for an Independent Contractor to Provide Business Visitation and Surveying for the BEAR Program.

20. CASTLE COUNTRY REGIONAL INFORMATION CENTER (CCRIC)- Approval of Participating Agreement with Price City as a Participant and Release of Funds in the Amount of $4200.00 after July 1^st, 2007

21. RESOLUTION 2007-05 – A Resolution Authorizing and Approving: (1) A Power Supply Resource Plan; (2) The Intermountain Unit 3 Project Power Sales Contract with Utah Associated Municipal Power Systems (“UAMPS”); (3) The Second Amendment to the UAMPS Agreement for Join and Cooperative Action; and (4) Related Matters

22. POOL- Payment for Boiler Tubes

23. RESOLUTION 2007-06 – Wells Fargo Lease Purchase Agreement for $500,000 at 4.5% for Three (3) Years

24. NEW HIRES- Sara Memmott and Ashlin White as Price City Lifeguards

25. CITY HALL- Removal of Asbestos Pipe Insulation and Water Tank Insulation in the City Hall Boiler Room

26. QUESTAR- Sign and Submit Payment for Pipe and Installation Charges and Permit

27. BRET CAMMANS, TAMARA GRAY, OFFICER SHANE HENRIE, CAPTAIN KEVIN DROLC AND NICK TATTON-Travel Approved

Bret Cammans and Tamara Gray- Utah Recreation and Parks Association, March 11-14, 2007- St. George, Utah

Officer Shane Henrie and Captain Kevin Drolc- FBI Training: “Innocent Images Undercover Training” (Internet Predators) – March 19-22, 2007- Baltimore, Maryland and Quantico, Virginia

Nick Tatton- National Main Street Program Conference, March 24-27, 2007- Seattle, Washington

28. BASSO DINO-MINE PLAYGROUND – Authorization for Price City to Accept Donations for the Dino-Mine

Playground

Councilmember McEvoy read from the minutes of the last meeting regarding the cut off date for donation acceptance purchasing benches, pickets and bricks involved in the Basso Dino-Mine Playground. Although the item was not an agenda item at the last meeting, the City Council agreed with Councilmember McEvoy that there has to be a cut-off time that donations can no longer be accepted. Tonight’s agenda item seems to Councilmember McEvoy to be a continuation of this topic and questions its duplication. Mayor Piccolo would like Price City to continue to accept donations for the Basso Dino-Mine Playground trust fund with some advertising in order to update the community on the how to proceed with donations. Price City employees will be available for the continued donations in the same manner as the Peace Gardens brick donations have been continuously received. Mayor Piccolo would like the community to be given the option of placing a brick in the Peace Gardens or placing a picket in the Dino-Mine playground fence to remain consistent and open for all citizens to remain a friendly, progressive community. When the fence pickets were being created for the playground by the Castle Valley Center, the school was donating the engraving. Price City does not expect the same continued treatment as it does not from any other situation. The efforts of the Playground committee should be commended and are highly recognized for their efforts. Those efforts should be continued and rewarded by the many people who may still want to show their appreciation through a donation. MOTION. Councilmember Nielson moved to accept the responsibility for Price City to accept donations for the Basso Dino-Mine Playground and to be used for the Basso Dino-Mine Playground. Motion seconded by Councilmember Hanna-Smith. Motion carried with the following votes:

Abstain- Councilmember McEvoy Aye-Councilmember Hanna-Smith

Councilmember Nielson

Councilmember Tatton

Councilmember Davis

29. BASSO DINO-MINE PLAYGROUND- Acceptance of $75,000 Donation from Playground Committee for

Playground Improvements

Approximately $94,534.00 remains in the Playground Committee account as of January, 2007. The Committee wants to turn over approximately $75,000 of that money to Price City for maintenance of the playground as necessary. Of the money remaining, $25,000 has been requested by Jeanne McEvoy to use for final completion of items at the playground. An application for grant funding is pending approval from the Permanent Community Impact Board (PCIB) and states that the City will have available $100,000 in matching funds. If $25,000 is retained by the Committee, that may affect the credibility of Price City with the PCIB. The matching funds would then total $75,000 instead of the entire $100,000. These matching funds and the grant, if awarded, would be used to enhance the playground and the surrounding areas of the park. The City Council agreed, as a whole, to apply for the grant with the understanding that it would be for $100,000. The Price City departments are anxious to begin reclamation on the park area now before the season changes and they get too busy. It is going to take at least $10-15,000 to finish the playground out of the existing funds. If the PCIB were to match the $100,000, those funds could then be used to enhance the playground and park area if the funds are short. If the PCIB is given a special request in April, the grant money may be available in July for review and possible approval as early as August. MOTION. Councilmember Nielson moved to wait on spending the $25,000 until April in order to preserve the matching funds and to see if the grant is awarded. (No vote was taken). MOTION. Councilmember Nielson moved to table the item until the next meeting on February 28, 2007 for further discussion. Motion seconded by Councilmember Hanna-Smith. Motion carried.

30. LIBRARY- Authorization to Restrict Fund Balance for Library from Private Donation of $11,320.00

The private donation to the Library should be saved in a restricted fund balance to be used in the future. MOTION. Councilmember Hanna-Smith moved to authorize placement of the $11,320 donation into the restricted fund balance of the Price City Library for future use. Motion seconded by Councilmember Tatton. Motion carried.

31. PRWID-Update by Councilmember Tatton

Councilmember Tatton reported on PRWID’s approval of the water and sewer system for Liberty Estates Phase II. The property is located south and east of Price behind Intermountain Electronics. Also, the Helper City sewer line extension and water payment issues seem to be resolved.

Brotherson Water Company in Carbonville will be taken over by PRWID which will add two additional meters for PRWID. (The older companies that were formed by families years ago with very few connections are being absorbed into the District.) Snow pack reports continue to look marginal at this point in time with a little extra snow this past weekend. There is however, a BOR restriction on the Scofield Lake level this year at approximately 54,000 acre feet.

POWER BOARD- Councilmember Tatton and Councilmember McEvoy presented the commercial rate change recommendations from the Power Board and suggested possible authorization for staff to open active negotiations with Utah Power (Rocky Mountain Power) regarding: (1) upcoming wholesale power rate increases; (2) future renewals of power purchase contract (s); (3) Renewal and possible restructuring of the maintenance and operations contract; and (4) provision of DSM training for Price City and the Community, and further authorization for staff to represent Price City and its interest in the potential negotiations with Utah Power (final authorization and decisions to be brought back to Price City Council and further authorization for staff to begin negotiation process on March 1, 2007. MOTION. Councilmember Tatton moved to authorize staff to represent Price City and to authorize Nick Tatton to represent Price City. Motion seconded by Councilmember McEvoy. Motion carried.

32. COMMUNITY PROGRESS- Update by Councilmember Hanna-Smith

Councilmember Hanna-Smith reported that Rockland Music received the award for the Outstanding Price Business. The Community Progress Committee is checking into different ideas for more benches, seasonal flags, a kiosk and tree lighting for the downtown area. Ann Cave from CEU has shown interest in the Adopt-A-Street program and the different areas of Price City that need cleaning attention for a group project.

Councilmember Hanna-Smith has asked to be excused from the Feb. 28 and March 2, 2007 City Council Meetings.

33. COMMUNITY PLAYGROUND-

Councilmember McEvoy read the following statement:

“Any project started can take many, many different paths to completion. As support was gathered from so many, most importantly the Mayor and Council, for the playground project, the goals has always been to complete the project with additional funds going to amenities such as sidewalk surrounding the playground and shaded picnic areas. To that end, we have organized and completed tasks which led to the building of the Basso Dino-Mine Adventure Park. Since then, I have continued to dedicate many hours most weeks planning and personally finishing tasks with the valued assistance of some to keep this project moving forward on essential components directly associated with the completion of the playground project in a timely manner. That has been my commitment to the community. Currently, discussions on the playground are taking a different path. The Mayor and whoever have currently begun talking about a path which I feel is inconsistent with the original concept the public has entrusted and will not lead to the efficient completion of the playground and reclamation of the park in a timely manner. Although I have been allowed to expend a huge amount of energy in planning, organizing and completing tasks, it is obvious my voice is fading. After a great deal of complex discussion, at this time, I am making the difficult choice to step aside on this date to allow the Mayor and whoever to travel their path with the guidance of the Council. My commitment to the playground from this day forward will be to enjoy the Dino-Mine Playground and to continue effectively serving the public in other arenas. Thank you to the thousands of people who in an unprecedented fashion came together for this gift to the children and families of our community. Thank you as well to the Council and the amazing employees of Price City. I wish all the best to those on the path to completing the playground.”

34. UNFINISHED BUSINESS- Both items continue to be discussed

a. Emil Simone Complaint - 11-05

b. Buck and Claudia Moynier-Road- 7/06

Meeting adjourned at 8:36 p.m.

Meeting reconvened at 8:38 p.m.

Regular meeting adjourned at 8:54 p.m.

APPROVED:

________________________

ATTEST: Joe L. Piccolo, Mayor

_______________________

Laurie Tryon, City Recorder

Minutes of the Price Community Development and Renewal Agency Meeting

City Hall: Price, Utah

February 14, 2007

Present: Pat Larsen

Chairman Joe L. Piccolo Nick Sampinos

Boardmembers: Aleck Shilaos

Richard Tatton John Daniels

Rick Davis Gary Sonntag

Kathy Hanna-Smith Laurie Tryon

Jeff Nielson Nick Tatton, Executive Director

Excused: Bret Cammans

MOTION. Councilmember Tatton moved to open the meeting of the Community Development and Renewal Agency at 8:36 p.m. Motion seconded by Councilmember McEvoy. Motion carried.

1. PUBLIC HEARING- Mid-Year 2006-2007 Budget Revision

MOTION. Boardmember Tatton moved to approve the mid-year budget revision for 2006-2007. Motion

seconded by Boardmember Davis and carried.

MOTION. Boardmember McEvoy moved that the meeting adjourn and that the Council meeting reconvene. Motion seconded by Boardmember Hanna-Smith and carried.

Meeting adjourned at 8:38 p.m.

APPROVED:

_____________________

Joe L. Piccolo, Chairman

ATTEST:

________________________

Laurie Tryon, Dep. Exec. Dir.