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SAN JUAN COUNTY COMMISSION OCTOBER 27, 1986

The San Juan County Commission met in regular session on October 27, 1986 at the hour of 10 a.m. at the San Juan County Courthouse, Monticello, Utah.

The following members were present: Commissioner Bailey, Acting Chairman

Commissioner Holliday Commissioner Black, Absent

HALLS CROSSING AIRPORT - CREAMER & NOBLE ENGINEERS

Rick Bailey, Administrative Assistant, reported that he received phone calls from Creamer & Noble Engineers and Buzz Hunt, Phase II Consulting, concerning the letters the Commission wrote to them on October 6, 1986. (The letters stated that the County Commission were concerned over the slow progress of the Halls Crossing Airport and said the project should of been completed at least three months ago.) Mr. Bailey said he told Mr. Hunt that the project should of been done six to eight months ago. Mr. Hunt said that there was difficulty in site selection but have selected a site that agrees with UDOT planners and the Division of Aeronautics. Mr. Hunt said they will submit a draft final report and funding applications to the Commission no later than November 20. The estimated cost amount for the airport is $1,686,000 and the county's cost share will be $76,500. Mr. Bailey said he is expecting a letter from Mr. Hunt stating this understanding. The Commission said they would like Mr. Bailey to respond to the letter.

COUNTY ATTORNEY - ELECT CRAIG HALLS

The Commission approved the county attorney - elect, Craig Halls, to attend the UAC meeting in St. George to attend a workshop for prosecuting attorneys.

GAS GENERATOR - PUBLIC SAFETY BUILDING

Rick Bailey, Administrative Assistant, reported that the gas generator that the county rented to Keith Ivins can be used in the new public safety building. The Commission will ask Mr. Ivins to bring the generator back.

EMERGENCY SERVICES - DEPARTMENT OF PUBLIC SAFETY

Rick Bailey reported that he received a phone call from Lorraine Campus, Department of Public Safety, and she said the county will receive additional money from the Federal Emergency Management Agency. Mr. Bailey said he will submit an application.

BLANDING UTILITY COMPANY - INDUSTRIAL REVENUE BONDS

Kent Adams, Blanding Utility Company, met with the Commission with an Application and Notice of Inducement of Industrial Revenue Bonds of $3,000,000. Blanding Utility Company is proposing to construct a plant for a natural gas generating facility, a natural gas well, processing equipment, and natural gas distribution pipelines. Mr. Adams said if it is built it can save the city of Blanding about $100,000 a year. Commissioner Holliday made the motion to adopt Resolution 1986-10 and authorizing and inducing execution of this memorandum of agreement subject to the approval of the county attorney. Commissioner Bailey seconded the motion. UNANIMOUS. Mr. Adams asked the Commission for their help in speaking to the Impact Board and the State.

The Board of Commissioners of San Juan County, State of Utah, met in regular session, at its regular meeting place in Monticello, Utah, at 10:00 a.m. on October 28, 1986, with the following County Officials present:

Calvin Black Absent

Jerry Holliday Commissioner

Kenneth Bailey Acting Chairman Commissioner

Also present:

Gail D. Johnson Clerk

The meeting was upon called to order and upon determining that quorum was present, the minutes of the preceding meeting were read and approved. The following resolution was introduced in writing, was fully discussed, and pursuant to motion duly made by Commissioner Holliday, and seconded by Commissioner Bailey, was adopted by the following vote:

Yea: Commissioner Bailey

Commissioner Holliday

Commissioner Black, absent Nay: None

The resolution was then signed by the Acting Chairman in open meeting and recorded by the Clerk in the Official records in San Juan County, State of Utah. The resolution is as follows:

RESOLUTION NO. 1986-10

RESOLUTION AUTHORIZING AND INDUCING THE EXECUTION OF A MEMORANDUM OF AGREEMENT WITH BLANDING UTILITY COMPANY, A UTAH CORPORATION, REGARDING THE ISSUE OF UP TO $3,000,000. INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR FINANCING THE COST OF ACQUISITION OF THE NATURAL GAS WELL, TOGETHER WITH A PIPELINE DELIVERING IT TO THE CITY OF BLANDING, AND ACCOMPANYING DISTRIBUTION FACILITIES.

WHEREAS, San Juan County, Utah (the "issuer"), is a body corporate and politic authorized and empowered by the provisions of the Utah Industrial Facilities Development Act (the "Act") to issue industrial development revenue bonds or other forms of industrial revenue financing (the "Bonds") for the purpose of acquiring or financing manufacturing, industrial or commercial projects; and

WHEREAS, in order to promote industry and commerce and develop trade by inducing manufacturing, industrial and commercial enterprises to locate or remain in the State of Utah and San Juan County, the Issuer proposes to finance the acquisition of natural gas, generating facilities and natural gas distribution lines and processing equipment and the construction of a plant for facilities to be owned and operated by Blanding Utility Company, a Utah corporation (the "Company"); and

WHEREAS, the Company is reluctant to take steps toward the realization and acquisition of the project

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unless satisfactory assurance from the Issuer that the proceeds of the sale of bonds of the Issuer will be made available to finance the acquisition of said project; and

WHEREAS, it is deemed necessary and advisable for the development, welfare and prosperity of the Issuer and its inhabitants that the project be acquired and that the Issuer take such action as may be required under applicable statutory provision to authorize and issue its Bonds to finance the cost thereof, to an amount not exceeding $3,000,000; and

WHEREAS, a form of agreement designated as a "Memorandum of Agreement" has been prepared under which the Company has stated its willingness to acquire and install the project; and

WHEREAS, it is considered necessary and desirable and for the best interest of the Issuer that execution of said Memorandum of Agreement be authorized for and on behalf of the Issuer;

NOW, THEREFORE, Be it resolved by the Board of Commissioners of San Juan County, State of Utah, as follows:

Section 1. In order to assure that the Company locate the project within the boundaries of the Issuer, with the resulting public benefits which will flow therefrom it is deemed necessary and advisable that the Memorandum of Agreement herein before referred to, be approved and executed for and on behalf of said Issuer.

Section 2. The Memorandum of Agreement by and between the Company and the Issuer, in the form and with the contents set forth in Exhibit "A" attached hereto, is hereby approved and the execution thereof is hereby authorized.

Section 3. All resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict.

Section 4. The Board of County Commissioners considers that this resolution is necessary and in the best interest of the Issuer, and therefore, it shall become effective immediately upon its passage, approval and adoption.

Section 5. The County Clerk is hereby authorized to publish in the San Juan Record, a notice of public hearing in substantially the following form, at least fourteen (14) days prior to the hearing as set forth in said notice:

NOTICE OF PUBLIC HEARING

Notice is hereby given that on November 17, 1986, at 10:00 a.m., or as soon thereafter as the matter can be considered, the Board of County Commissioners of San Juan County, Utah, will hold a public hearing at the County Courthouse, at Monticello, Utah, for the purpose of receiving public comment on the proposed issuance by said County of industrial revenue bonds (Blanding Utility Company Project) in the maximum aggregate face amount of $3,000,000.00, pursuant to an inducement resolution adopted by the Board of County Commissioners on October 28, 1986, or as soon thereafter as possible. Said bonds are to be issued pursuant to the Utah Industrial Facilities and Development Act, U.C.A. Sll-17-1 through 18 inclusive, 1953, as amended, to finance the acquisition of a natural gas well, a natural gas pipeline and distribution facilities and the construction of a plant located at or near Blanding, San Juan County, State of Utah, for the generation of electrical power and the distribution of natural gas products.

The proposed bonds will not constitute obligations to the County. The County will not be obligated to pay costs incurred in connection with the issuance of the bonds nor will it be liable to make payments of principal or interest on the bonds.

This public hearing is required by the Tax Equity and Fiscal Responsibility Act of 1982. Comments at the public hearing are invited. Written Comments may be submitted to the County at the office of the Clerk in the County Courthouse, at Monticello, Utah, until 9:00 a.m. on November 17, 1986. Additional information can be obtained at its office shown above or by calling 587-2231.

Gail D. Johnson, County Clerk Publish one time in San Juan Record.

HAROLD DRAKE - OUTSTANDING VOLUNTEER SERVICE

Commissioner Bailey reported that he attended the banquet that was sponsored by UNDC for Harold Drake, Sr. of Navajo Mountain. Mr. Drake was given the Yoneo Ono award for Outstanding Volunteer Service from the Rural Community Assistant Corp of San Francisco. (RCAC represents the western 10 states area) Commissioner Bailey said that Mr. Drake talked about the history of the first days at Navajo Mountain and thought it was very nice.

PACK CREEK RANCH ROAD

The Commission received a few remarks stating that the road to Pack Creek Ranch needs to be posted because of big pot holes. Commissioner Bailey will have Merz Hugentobler, foreman, go look at it and post it where needed.

UTAH WILDLIFE RESOURCES - DOUG MESSERLY

Doug Messerly, game warden, met with the Commission for their monthly visit. Commissioner Holliday asked if there was any way for local people to help patrol the big areas like Montezuma and Black Mesa to prevent the doe kill during deer season. Mr. Messerly said he is available 24 hours a day to the sheriff's office dispatch and will do all he can. Mr. Holliday said there is a sportsman club in Blanding but it's not very active, and Mr. Messerly said it would be a great help if they became active to help in areas like this.

Auction Mr. Messerly said they held a auction in Blanding to sell the illegally killed does and bucks (that were killed during this year's deer season) and sold them from $90 to $140. There will be another auction in Monticello next week and Mr. Messerly said he will advertise it in the San Juan Record and radio.

Foy Lake Mr. Messerly said the State Wildlife cleaned out Foy Lake last week and will plan on stocking it with fish in the spring.

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Camp Jackson Mr. Messerly said the State Wildlife is working with the City of Blanding to start stocking fish at Camp Jackson. It is still in the planning stage and there are some problems with the right-of-ways.

Spot Lighting - County law Mr. Messerly said he is working on the county spot-lighting law, it's in conflict with the state law and there is some abuse of it. Mr. Messerly said he would like to propose a provision in the county law that says: Anyone who is convicted of a violation of this will have their spot lighting permits suspended for one year. (That is if they are convicted on the county ordinance.) Commissioner Bailey told him to make his proposal in writing and also talk to the county attorney about it.

BLM'S INTENT OF A RIGHT-OF-WAY ROADS IN SAN JUAN COUNTY

The Commission received the following letter from Pete Christensen, area manager of the BLM.

San Juan County Commissioners

San Juan County Courthouse

Monticello, Utah 84535 October 21, 1986

Gentlemen:

In your September 10, 1986 letter you requested a clarification of the purpose and intent of a right-of-way reservation to the Bureau of Land Management of four roads in San Juan County.

After reviewing the Class B and Class D maps which were included in the San Juan County - BLM road network agreement of August 13, 1984, the Grand Resource Area staff indentified four roads in San Juan County which were not on the maps, and which they felt needed routine maintenance for administrative and public use. The level of maintenance is limited to blading the existing road and repairing wash-outs and damaged sections. The BLM has a force account for such a purpose based upon the number of miles to be maintained. Federal law required that the government protect facilities, upon which funds are expended, with right-of-way reservations.

If you would like to place these roads on the San Juan County road system for the purpose of maintaining them, this can be done by amending the August 13, 1984 agreement in one of two ways:

(1) If the road (s) were constructed and were in public use prior to October 21, 1976, the county can claim R.S. 2477 rights and amend R/W U-53767 (item #1 in the agreement), or

(2) Obtain rights—of-way grants from the BLM to maintain the road(s) as agreed to in item #5 of the agreement.

I would be happy to attend a commissioners' meeting if you would like to discuss this further.

Sincerely yours,

/s/ Colin P. Christensen Colin P. Christensen Area Manager

Attachment: 4 maps

BILLS APPROVED FOR PAYMENT

SKaggs Telecommunications Service radio repair communication 120.74

Alexious Roberts Swimming lessions 130.00

Curtis Perkins herbicide purchased 150.00

Dorothy Perkins herbicide purchased 150.00

Jerold Perkins herbicide purchased 150.00

Grand Junction Wintronics Co., Inc parts communications 72.14

Electro-Comm Distributing, Inc. supplies for communications 15.90

Farmington Daily Times advertising for road dept 48.51

Dana Larson Roubal & Associates architectural Halls Crossing 74,500.00

Sports Illustrated subscription Monticello library 29.70

Gordon Redd restitution Charlotte Hutchins 25.00

Teresa Manzanares copy transcript 74.00

Sheryl Kitchen bail refund A-253789 40.00

The Economics Press, Inc. magazine subscription 15.00

Staffan E. Carius bail refund 10566 10.00

Marl in Brown restitution Daniel Jones 100.00

Abajo Electric repairs sheriff's dept 35.30

Alan's Body Shop windshields road dept 86.81

Keith Black restitution Bill Howard 100.00

Black Oil Company diesel for road dept 3,901.09

Blanding Clinic Exam: Elaine Dutchie 32.00

Charles Bowles witness fees: Felix Begay 14.00

Cate Equipment Company parts road dept 170.56

Cheryl's Trophy supplies extension office 18.60

Chevron USA Incorporated gas purchased sheriff 27.24

City of Monticello utilities courthouse 103.53

CMI Incorporated parts sheriff's office 127.78

Conoco Incorporated gas purchased sheriff 16.83

Continental Tel Co West tele charges sheriff's 839.61

Rudolph Cook witness fees: Felix Begay 14.00

HF Cosby Jr. hauling for road dept 1,828.75

Crusher Welding Service Co supplies road dept 319.32

C.W. Electronics Sales Company supplies communications 123.79

Empire Electric Assoc. Inc repairs abajo peak 1,814.22

Vivian Farabee meals served Oct 86 1,572.00

Federal Signal Corporation supplies sheriff's dept 47.36

Frito-Lay, Inc. Supplies vending machine 11.55

W.W. Grainger, Inc. Bronze pump road dept 160.99

Honest Dollar Construction hauling road dept 1,751.75

Horsehead Hardware supplies dept of aging 8.65

Leonard Hurst Agency Travel Expenses 18.48

international Business Machine installment payment549.38

N. Glen Jackson travel expenses 32.00

Rex Johnson restitution Wliford Grant 100.00

KRTZ FM advertising elections 390.32

Kar Products Incorporated Parts road dept 139.86

Venice Lyman Restitution: Deen Lyman 50.00

Mega Corporation Parts road dept 367.40

Kenneth Miller hauling road dept 1,578.50

Monticello Lions Club supplies sheriff's dept 72.00

Monticello Mercantile supplies Senior Citizens 74.76

Motor Parts Company supplies communications 4.49

Motor Parts Pro Mart Home Cntr supplies sheriff's dept 109.96

Navajo Times advertising elections 198.45

Northern Electric repairs Abajo Peak 30.61

Office Outpost supplies road dept 296.38

David Perkins herbicide purchased 150.00

Paul Perkins herbicide purchased 150.00

Popular Subscription Service supplies Library M 436.55

Professional Armaments supplies sheriff's dept 66.81

Parley Redd Mercantile Supplies Communications 27.63

Steve Regan Company supplies golf course M 450.00

Rachel Romero cleaning Sr. Center M 40.00

San Juan County Gas purchased Golf Course 67.53

San Juan County Hospital admission: Elaine Cantsee 151.85

S.J. County 12th Circuit Court Frank Jackson 190.00

San Juan Health Care Services operating request Ambulance 5,758.04

San Juan Pharmacy prescriptions: E. Dutchie 59.84

The San Juan Record general election ballots 744.85

Dayne Shumway Const hauling road dept 1,713.25

Bessie J. Spencer meals served Oct 86 843.00

State Information System Serv teleprocessing sheriff dept 479.31

Steelco supplies golf course 11.43

Stevens Enterprises supplies recreation dept 13.50

Holly Tatnall travel expenses 55.02

Texaco Refining & Marketing In GSA Purchased Sherrif dept 33.51

Thompson Publishing Group renewal sheriffs dept 146.00

United States Postal Service Postage for justice/peace 66.00

Utah Dept of Employ Security unemploy' claim A. Begay 404.00

Utah Power & Light Company utilities Bluff Bldg 191.87

Utah State Attorney General Pay deduct: J. Manheimer 50.00

Utah State Lands & Forestry refund of overpayment 20.00

Utah State Tax Commission Auditor Services 781.80

Steven E. Warren M.D. Exam Elaine Cantsee 35.00

Western Office Products supplies purchasing dept 64.93

Mike Young Incorporated parts road dept 44.72

ADJOURNED

There being no further business the meeting was adjourned.

Kenneth Bailey, Acting Chairman Karen Halls, Deputy Clerk