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SAN JUAN COUNTY COMMISSION MEETING MINUTES MARCH 10, 1986

The San Juan County Commission met in regular session on March 10, 1986 at the hour of 10 a.m. at the San Juan County Courthouse, Monticello, Utah.

The following members were present: Commissioner Black, Chairman

Commissioner Bailey Commissioner Holliday

Minutes of the March 3, 1986 meeting were approved on the motion of Commission Holliday. The motion was seconded by Commissioner Bailey. UNANIMOUS.

AOG - BLM/WILDERNESS MEETING

Commissioner Holliday reported that he attended the AOG - BLM/Wilderness meeting in Price last week. The State Wilderness Committee Task Force was represented by four state people. Commissioner Holliday said in his opinion the Committee is working against the interest of the counties and state. Commissioner Holliday made a presentation from the information that Commissioner Black had compiled. The Committee felt that one good point to make in response to the EIS is the roads (in the WSA study areas) the conflict with the school sections and wood gathering. The Environmentalists claim the BLM has not done a thorough job and want the BLM to add more land the Wilderness. The Petroleum groups are going to submit seismic reports to the BLM showing the potential oil and gas areas.

MONTICELLO AIRPORT WATER TANK

Rick Terry, Monticello City Administrator, met with the Commissioners to find out what the status is on the Monticello Airport water tank. The Commission explained to Mr. Terry that the county installed a water tank and are planning on hauling water. The Commission felt that the water well was unreliable, needed too many repairs, and the quality of the water was bad. Mr. Terry asked what truck would be used for hauling water. The Commissioners said that this is being followed up on.

MONTICELLO CEMETERY DISTRICT

Darroll Young, chairman of the Monticello Cemetery District board, met with the Commission with the following Certificate of Appreciation:

CERTIFICATE OF APPRECIATION

Know all men by these presents:

That Dick and Annie Broderick have this day completed four years of dedicated and faithful

service to the Monticello Cemetery Maintenance District.

May it also be known that these four years of service, which has gone beyond the call of duty, have made of the Monticello Cemetery a place of beauty and order in every way pertaining to the maintenance of the grounds, records, buildings, fences, equipment and all properties of the Cemetery District.

Wherefore, we, the Directors of the Monticello Cemetery Maintenance District, in grateful appreciation do hereby set our hands and seals this first day of March, 1986.

ACKNOWLEDGEMENT

We, the undersigned Board of Commissioner of San Juan County, do hereby acknowledge and affirm this action this 10th day of March, 1986.

Commissioners

Mr. Young asked for the Commissioners' signatures so that this could be engraved on a plaque. Mr. Young said that the board is going to present this plaque to Dick and Annie Broderick. The Commissioners thanked Mr. Young for doing this and commended him on a job well done.

UNDC: - TRAINING PROGRAM

Commissioner Holliday reported that Chuck Harrison, UNDC, informed him that UNDC will not be ready for the training program that the county offered on the heavy equipment. Mr. Harrison said that the tailings project has been postponed until next year.

SCHOOL COMMUNITY GROUP MEETING IN OLJATO

Commissioner Bailey reported that he attended the school community group meeting at the Oljato Chapter. The community group said they need water at Oljato wash, where the county has in the past cleaned out a basin to collect water for the road repair for that area. They will send a letter of confirmation to have the water hole cleaned out. Commissioner Bailey said that the road department will clean it out and are planning on repairing the road that goes up the wash.

SAN JUAN COUNTY HISTORICAL BOARD

Commissioner Bailey said that he contacted LaVern Tate, Chairman of the Historical Committee, to clarify the county's purchasing policies and will give her copies of the county travel policy also.

RICHARD PERKINS EASEMENT AND RIGHT OF WAY HIGHWAY

Commissioner Bailey received the following Easement and Right of Way for Highway from Richard Perkins:

EASEMENT AND RIGHT OF WAY FOR HIGHWAY

Richard C. Perkins , GRANTOR(s), of Blanding, Utah , do hereby give, grant and convey unto SAN JUAN COUNTY, a body corporate and politic of the State of Utah, GRANTEE, whose mailing address is % County Clerk, Monticello, Utah, for the sum of One Dollar and other adequate considerations, receipt of which is hereby acknowledged an EASEMENT and RIGHT OF WAY for the construction, improvement, operation, maintenance and use by the public, of a public road upon and across the following described land in San Juan County, State of Utah, to wit:

A 66 ft. wide parcel of land for a roadway beginning at the approximate center of section 12, T38S, R24E, SLB&M. The route proceeds Easterly, crosses Montezuma Creek, winds through the ranch house area, then follows the South base of the rock cliffs to its termination at the approximate center of section 7, T38S, R25E. The length is

approx. 1 mile.

For compensation for this right of way easement, San Juan County will place l-14ft. cattleguard and 2-28 ft. cattleguard in this roadway.

Dated the 3 day of March , 1986.

/s/ Richard C. Perkins

STATE OF UTAH

COUNTY OF SAN JUAN

On the 3rd day of March, 1986, personally before me Richard C. Perkins , signer of the

foregoing instrument, who duly acknowledged to me that they executed the same.

My commission expires ________ /s/ Bernice Perkins

Notary

HARDWARE ON JENSEN HOME

Bruce Halliday, county attorney, received a letter from Steve Boos who is interested in buying any

hardware and doors that are in the Jensen home that the county owns. Mr. Boos said that he is in the process of fixing an old home in Bluff and needs salvage parts. He wants to know if the county is

interested in selling any thing from this house. (The house is going to be demolished for the proposed new

public safety building). Conmissioner Bailey said he will get in touch with Mr. Boos and see what he can use.

DEPARTMENT OF ENERGY - URANIUM

Commissioner Black said he talked with DOE representatives with respect to their proposed enrichment criteria, what is finally decided will have an effect on the domestic uranium mining/milling production and marketing. Conmissioner Black said he got NACO to adopt a resolution supporting the uranium industry. Conmissioner Black is going to attend the DOE hearings in Washington, D. C. to testify and is scheduled on the agenda. Conmissioner Black said he talked to Bob Weidner about the DOE hearings on the criteria of enrichment on uranium. DOE is the only entity that enriches foreign uranium as well as domestic. The law says that their enrichment policies must maintain a viable domestic uranium industry. There are now only four uranium mills operating in the United States and two of these are in San Juan County. Domestic production is only 10 million pounds of uranium a year in the U.S. The 100th nuclear plant will be completed in the U.S. this spring, and these 100 nuclear power plants will consume 40 million pounds annually. The hearing will be based on criteria and to get DOE to follow the law.

WASHINGTON, D.C. MEETINGS

Commissioner Black reported that he attended meetings and workshops in Washington, D.C. last week. Conmissioner Black said that one issue discussed was about a law suit that the Environmentalist Defense Fund filed against the Interior Department several years ago claiming that they couldn't do any range rehabilitation until an individual impact study was done on each proposed area. Some impact statements have been completed and the EDC again filed suit claiming they were inadequate. This time the judge ruled in favor of the Department of Interior.

There are new Hazardous waste laws and rules that will be implemented shortly.

MOAB DISTRICT BLM ADVISORY COMMITTEE

Commissioner Black attended the Moab District BLM Advisory Committee in which they were briefed about the new BLM/Forest Service interchange proposals that were modified significantly. The EIS has been finished and the proposal will be submitted to Congress. Conmissioner Black said he hopes it passes to end the duplication. Conmissioner Black said they also reviewed the WSA proposals. Several industry people were present to show the potential oil & gas in the WSA's.

STATE LAND BOARD MEETING

Commissioner Black will be attending State Land Board meetings in St. George, March 12-14, 1986. Conmissioner Black said he will bring the WSA issue up and try to set a meeting with Dee Hansen the Director of Utah Natural Resources. The Livestock and mineral resource people will need to coordinate their efforts on the Wilderness issue.

MINED LAND RECLAMATION ACT

Commissioner Black wrote the following letter:

March 10, 1986

Honorable Norman H. Bangerter Governor State of Utah Capitol Building Salt Lake City, Utah

Dear Governor Bangerter:

In 1975, the Utah Legislature passed the "Mined Land Reclamation Act" which regulates the mining and reclamation of all lands in the state, including state, private and federal. Under the law small mines were exempt.

At the time the law was passed there was no federal law to regulate mining on federal lands. By passage of the Federal Land Planning and Management Act of 1976 (FLPMA) and subsequent adoption of rules and regulations, the Federal Government now regulates all mining activities on federal lands which now makes state regulation duplicative and unneccessary.

House Bill 71, recently passed by the Legislature eliminates the exemption from state regulation and small mines will now be subject to the same duplicative regulations as are the larger mines.

For your information I am enclosing a copy of the federal rules and regulations which clearly indicate reclamation requirements by the feds contrary to a statement made to the Senate by Director Diane Nielson. Also enclosed is a copy of a document prepared by the BLM outlining in summary the regulation comparisons and problems encountered by industry and the BLM because of duplicative and conflicting implementation of state regulations of mining and oil and gas on federal lands.

Because of the foregoing, the San Juan County Commission urges you to veto House Bill 71 and ask the Legislature to study amendments to provide that the state does not duplicate federal regulations. It is a waste of the tax payers money and an unecessary cost and burden to the

In the interest of saving the tax payers and encouraging economic development, please veto House Bill 71.

Sincerely,

/s/ Calvin Black___________

Calvin Black, Chairman SAN JUAN COUNTY COMMISSION

cc: Senator Fred Finlinson

Representative Tom Christensen Roland Robinson Dee Hansen Diane Nielson

UTAH DIVISION OF WILDLIFE - FISH & GAME

Guy Wallace, Wildlife Fish & Game, met with Commissioners to report that the Utah Division of Wildlife has set its data collection and recommendations back two weeks. This will give more time for the drawings and opening. Mr. Wallace said that the Spring Range deer ride is scheduled for March 15 for Alkali Ridge and March 21 for Harts Draw. This annual range ride helps monitor the winter range conditions and gives recommendations for the fall big game hunts. The public is invited to go on this ride and a cook out is planned after the Alkali ride.

GRAND COUNTY - WATER CONSERVANCY DISTRICT

Dale Pierson, Grand County Water Conservancy District, met with the Commissioners to inform them that the Grand County district is proposing to annex some property owned in San Juan County into Grand County Water Conservancy District. This is a pressurized irrigation system which involves private property owners in both counties. Mr. Pierson said that to provide this service the property must be annexed. The Commissioners told Mr. Pierson to contact Craig Halls the attorney for the San Juan Water Conservancy District to pursue this.

RESOLUTION 1986-3 - MERRILL LYNCH FENNER & SMITH INC.

Commissioner Black signed the following resolution that was approved on February 18, 1986 Commissioner Meeting.

RESOLUTION 1986-3

TO: MERRILL LYNCH PEIRCE FENNER & SMITH INC.

San Juan County, a body corporate and politic, by and through its duly elected and acting Board of County Commissioners hereby resolves that the duly elected and acting Treasurer, of San Juan County, now Marian Bayles, whose address is P.O. Box 817, Monticello, Utah, 84535, is hereby authorized and empowered to open and maintain accounts with MERRILL LYNCH PIERCE FENNER & SMITH INC., and its successors, by merger, consolidation or otherwise, and assigns, hereinafter called BROKERS, for the purchase and sale of stocks, bonds, and other securities, so long as same comply with the Laws of the State of Utah, including, but not limited to Sections 51-7-1 et seq. and 33-1-1, hereinafter QUALIFIED SECURITIES, on exchanges of which the BROKERS are members or otherwise, and that said Treasurer is authorized to give written or verbal instructions by telephone or telegraph, or otherwise, to the BROKERS to buy or sell said QUALIFIED SECURITIES, etc, for immediate or future delivery and, if she deems proper to secure payment therefor with property of this corporation; that she shall at all times have authority in every way to bind and obligate this corporation for the carrying out of any contract, arrangement or transaction which shall, for or on behalf of this corporation, be entered into or made with or through the BROKERS; and that the BROKERS are authorized to receive from this corporation, checks, and drafts drawn upon the funds of this corporation by any officer or employee of this corporation, and to apply the same to the credit of this corporation or its account with said BROKERS and the said BROKERS are authorized to receive from said officers or from any other officer or employee of this corporation, QUALIFIED SECURITIES, for the account of this corporation with said BROKERS: said BROKERS are further authorized to accept instructions from the officer herein named as to the delivery of said QUALIFIED SECURITIES from the account of this corporation and at her direction to cause certificates of QUALIFIED SECURITIES held in said account to be transferred to the name of any officer of this corporation as designated by said Treasurer and in the discretion of said officer; and delivery to any such officer of such QUALIFIED SECURITIES issued as directed by her, shall be deemed delivery to this corporation; and said Treasurer shall have the fullest authority at all times with reference to any transaction deemed by him/her to be proper to make or enter into for or on behalf of this corporation with the BROKERS or others. All confirmations, notices and demands upon this corporation may be delivered by the BROKERS or others. All confirmations, notices and demands upon this corporation may be delivered by the BROKERS verbally or in writing, or by telegraph, or by telephone to such officer/Treasurer or her designee and she is authorized to empower any person, or persons, that she deems proper, at any time, or times, to do any and all things that she is hereinbefore authorized to do. That this resolution shall be and remain in full force and effect until written notice of the revocation herof shall be delivered to the BROKERS.

DATED this 10th day of March , 1986

SAN JUAN COUNTY

By: /s/ Calvin Black__________

Calvin Black

I Gail Johnson, San Juan County Clerk, hereby certify that the foregoing is a full, true and correct copy of a resolution duly and regularly passed and adopted by the unanimous vote of the Board of Directors of the Board of County Commissioners of San Juan County, at a meeting thereof duly called and held at the Courthouse, in Monticello, San Juan County, State of Utah, on the 10th day of March 1986, at which meeting all commissioners were present and voting; that said resolution appears in the minutes of said meeting, and that the same has not been rescinded or modified and is now in full force and effect.

I further certify that said corporation is duly organized and existing, and has the power to take the action called for by the foregoing resolution.

/s/ Gail Johnson______

Gail Johnson

San Juan County Clerk

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LLOYD'S LAKE RESERVOIR

The Commissioners signed the Lloyd's lake reservoir survey plat.

UDOT COMMISSION

Commissioner Black reported that he met with the Utah Department of Transportation Commission last week in Salt Lake. Commissioner Black said he requests that the Bluff to Montezuma Creek road be put on the state road system. UDOT said that this would be looked at and will take further action on it. Commissioner Black also discussed the highway numbering proposal of extension US-66 from Monticello to Richfield and US-163 extension from Kayenta, Arizona to Harrisburg Junction on 1-15 (near St. George). UDOT will review this proposal and are the ones who have to submit it. Commissioner Black said he talked to the State Travel Council and local travel promotion entities in southern Utah about getting involved in the highway signing, brochures, posters and other information on the John Atlantic Burr ferry on Lake Powell.

TSOSIE TRIAL FOR MAY

The postponed trial on the jail suicide of Calvin Tsosie is set for May 12-16, 1986 in Salt Lake City.

FOUR COUNTY HEALTH BOARD MEETING

The Four County Health Board meeting will be on March 18 in Green River, Utah. Commissioner Holliday will attend this meeting.

HALL'S CROSSING AIRPORT PLANNING PROJECT

Rick Bailey, Administrative Assistant, wrote a letter earlier to Buzz Hunt, Phase II Consulting, asking for a status report of the work completed on the Hall's Crossing Airport Planning Project. Mr. Bailey received a letter saying that

they had collected and reviewed data, obtained a Special Use Permit from the National Park Service for on-site investigation, developed airport layout plan, plotted runway, and established the basic runway and airport data requirements to include runway width and length. They have not conducted an actual on-site investigation but plan to in the next few weeks. They said that they will meet with the Commissioners in the future to brief them on work completed to date.

FOLGERS EQUIP CO.

Jack Worthington, Folgers Equipment Company, met with the Commissioners to show a film strip on Equipment Carriers.

BILLS APPROVED FOR PAYMEMT

Abajo Petroleum, Inc. Fuel for Sheriffs Dept 1,295.50

Armco Incorporated Supplies Road Dept 13,179.00

Bon Barker Company Supplies Sheriffs Dept 390.52

Blanding Home Center Supplies Dept. of Aging 42.00

Chevron USA Incorporated Gas for sheriff dept 169.91

Devon's Repair Service Unload Water Tank Airport 110.00

Espon America Supplies Div. of Aging 1,427.42

Mike W. Hockett Bail Refund-No. 2W-171 23.00

Industrial Supply Company, Inc. Supplies Road Dept. 13.87

Light Impressions Historical Society Supplies 562.71

Meister Publishing Co. Supplies Extension Office 42.00

Motor Parts Pro Mart Home Cntr Snow Shovel Library (M) 12.89

John J. Rosenberger Bail Refund NO.2W-93 26.00

San Juan County Office Supplies Clerk 433.19

San Juan Health Care Services Meals Served 687.00

The San Juan Record 4-Wheel in San Juan County 1,476.70

Sorbus Maintenance Charge 280.06

Trailside General Store Supplies Sheriff Dept 17.05

Utah Local Gov't Ins. Trust Insurance Coverage 3,346.00

Wheeler Machinery Company Parts for road dept 1,654.27

Young's Machine Company Flag Pole Courthouse 625.00

San Juan Health Care Services Nursing home and hospital 62,883.89

Blanding Justice of the Peace Mark & Roselyn Thomas Sheriff's Office 108.00

Monticello Justice of Peace Sheriffs Office Collections 595.00

Twelth Circuit Court Sheriff office report 87.00

City of Brigham Sheriff office 119.00

Monticello Justice of Peace Sheriffs office Collection 96.00

San Juan County Road Dept. Reimburse petty Cash 52.94

ADJOURNED

There being no further business the meeting was adjourned at 3:30 p.m.

Calvin Black, Chairman Karen Halls, deputy

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SAN JUAN COUNTY CONCESSION PUBLIC MEETING MARCH 10, 1986

The San Juan County Commission held a public meeting in Blanding, Utah at the San Juan High School Auditorium on March 10, 1986 at 6 p.m. The meeting was held to discuss the future of the county's medical facilities.

Those in attendance were Commissioner Black, Commissioner Bailey, Commissioner Holliday, Ted Stagg, CPA, Rick Bailey, Administrative Assistant, Karen Halls, Deputy Clerk, and the following Blue Ribbon Committee members Tyron Lewis, Kedric Redd, Keith Black, Bruce Shumway, Kay Johnson, Dr. Goon, Bennion Redd, Donna Singer, Guen Smith and Keith Redd. There were about 72 people present.

Commissioner Black opened the meeting to the public by saying that the Commissioners were holding this public meeting concerning the future of the county health care services. The county's economy is drastically changing and some changes are going to have be made. The Commissioners want the public's input so that a proper decision can be made on the health care facilities.

The following figures were handed out:

TOTAL ACTUAL DOLLAR VALUE OF MILL LEVY

Year Mill Levy Assessed Value Revenue

1982 16.32 214,028,483 3,492,944.00

1983 16.98 200,597,701 3,406,148.00

1984 16.69 200,340,439 3,385,753.00

1985 17.06 176,827,576 3,106,678.00

1986 17.00 156,000,000 2,652,000.00

1987 17.00 101,800,000 1,730,600.00

Commissioner Black said that within the last four years the county has lost $60 million in tax valuation for taxing purposes and a estimate of $20 million will be lost this year. And a loss of $50 to $60 million next year. The county's health care services had a deficit last year of $450,000. Commissioner Black said that one of the ways the county can reduce cost is to sell the health facilities to a private operator.

Commissioner Bailey presented the public with the alternatives that are involved in the health care. 1) to keep the system intact and county still run it, 2) sell the facilities in its entirety, 3) to sell the nursing home and the county retain the hospital, 4) lease/managements contracts from companies. Commissioner Bailey introduced Ted Stagg, CPA developer, and explained that the Commissioners hired Mr. Stagg to work for the county and help evaluate and sell the county health facilities. On January 27, 1986 the Commissioners met with the Blue Ribbon Committee and Ted Stagg. The Committee recommended that the Commissioners negogiate with the companies that made proposals and attempt to get the hospital and nursing home into private ownership. Commissioner Bailey gave an outline of the companies that are being considered:

Southwest Health Management Co., Inc. is offering a management/lease for the hospital and Blanding Clinic. The lease would include an option to purchase in the future. The county would negotiate the sale of all hospital account payable and accounts receivable, with Southwest being responsible for collection and payment of said accounts. Southwest will negotiate for purchase of the inventory. No restrictions would be placed on the Hospital for use of swing beds. Option price of $100,000.

Western Care Construction Company, Inc. and Kamar Medical Management Company, Ruel McPhie and Milton Harmon would purchase the nursing home for $1,440,000.00 cash. The county would negotiate a first right of refusal if sold or shut down. $1,440,000.00 would be invested for Health Care at impound interest. John Fellmeth and Phil B. Acton, CPA offered a two-year lease with an option to extend it to three for the Hospital and the Blanding Clinic. This group composed of ten equal number backers from Monticello. An option to purchase the Hospital would be available at the end of the second and third year of the lease. Purchase of the hospital would be between $100,000.00 and $200,000.00 financed over 10 years at 8% interest. An option to use swing beds is requested.

Westworld Community Healthcare, Inc. a management fee of $7,000.00 per month would be charged to the county during the transitional period. Westworld would enter into a long-term lease with the county. The lease would be for a term of forty years and would assume responsibility for capital improvement to all facilities. They would operate all facilities including the Ambulance Services. They would assume all operating expenses except the debt of the bond and make lease payment of $6,000.00 per month for the first twenty years, and $1 per year thereafter.

There were other offers but the Commissioners and the Blue Ribbon Committee felt that these offers were not in the best interest of the County.

Commissioner Holliday said that the Commissions' main concern and number one priority is the county's health care and are looking for a company who will give the same quality of care that is being provided now.

Ted Stagg complimented the Blue Ribbon Committee and the Commission for giving this situation much thought and consideration. Mr. Stagg asked the public to be frank and honest with their questions and comments. Mr. Stagg said that he has seen the accounting problems with the nursing home and hospital. In 1979 the state of Utah had twenty-nine county owned health facilities; today there are five and San Juan County is being faced with selling also. It costs the county more to operate the facilities than it would a private owner. The county also pays 30% in employees benefits with health care providers pay 22%. Mr. Stagg explained that Rick Bailey contacted him in December and together they contacted nineteen companies to see if any were interested in leasing/management or buying. The county received seven proposals and after analyzing these it was narrowed down to four.

Sam Chamberlain asked if the local group proposal had been withdrawn.

The Commissioners explained that in their opinion would like the local group to have $500,000 in the bank

for operating capital.

Finley Bayles said that the Commission had already made a decision and this meeting was just a waste of

time.

Mr. Stagg said that a decision has not been made.

Dick Guymon said that he signed an agreement with the local group and asked the Blue Ribbon Committee if

they had done any surveys.

Jill Bayles said that she would like to see the health care facilities kept in its entirity. It is not a

good idea to separate the facilities and have three or four different companies in the county.

Ervin Guymon said that he is very disappointed. He is a senior citizen and wants to know why a senior

citizen is not on the Blue Ribbon Committee.

Swing beds in the hospital is an alternative that is being considered. In 1968 rural community hospitals were allowed to have long-term patients. An additional staff of a physical therapist and recreation director would be required.

Jill Bayles said she supports Westworld because they are the only company that made a proposal on the

entire facility.

Kathleen Lyman suggested that the county have a health care service tax district.

Commissioner Black said that the state legislature mandates what the county does. The county does not have to provide health care. Commissioner Black pointed out that a private industry would have to pay taxes.

Blue Ribbon Committee

Kedric Redd said that by serving on this committee he has been made aware of the county's situation of

losing money in the health facilities and the county is losing $36,000 a month due to the health care.

Mr. Redd said that at this time he feels that Western Care is the best proposal.

Kay Johnson said that a decision has to be made and it will be a hard decision. Mr. Johnson said that he

does not know what company is best. Mr. Johnson admits that the county has a serious problem and

somethings needs to be done.

Keith Black said that he has a real interest in the Commissioner's decision. He has had to depend on a

CPA in his own business and knows of the financial sacrifices. Mr. Black said he is concerned about the

type of quality care and dislikes the idea of increasing taxes.

Bruce Shumway said the Blue Ribbon Committee is a good process to be a part of. There has been no

decision made, he would need the best information possible before making a decision.

Tyron Lewis said he feels that the county health care facilities should be in a private industry and

changes need to be made fast.

Merlin Grover asked if the Commission had asked the medical staff and the employees to give their input.

Shan Redd spoke for the CEU nursing students and made some good points. She suggested that the

Coinnissioners consider asking the students to be on a task force.

Linda Chamberlain, an LPN from the Nursing Home, said that the number one concern is maintaining the

health care. The nursing home provides excellent and quality care. She asked the Commission if the

companies they were looking at had the capability of progression.

Kathleen Lyman said that she had met with Ruel McPhie at Parkdale in Price and in all fairness she felt

that he had good principles and was impressed. Mr. McPhie capitalizes on quality care and the employees

like him.

Rayburn Jack, executive director of San Juan Health Services, said that a private industry could operate

less expensively. The county has few doctors and a private operator can recruit doctors and specialists.

Mr. Jack said that he feels a private operator could do well if the community supports them.

If the county sells the health facilities the county has to pay the Hill Burton loans which is $195,000 for the nursing home and $65,000 for the hospital. A lot of money is involved in selling also.

Shanna Wheeler said that she is concerned for the employees.

Howard Randall suggested that the county generate more funds. Have each family pay so much a year to fund

the HMO.

Commissioner Bailey said that this works in the more populated areas. Commissioner Black thanked the public for their honest and frank suggestions.

The meeting was adjourned at 9:10 p.m.