IRON COUNTY COMMISSION MEETING
November 23, 2009
Minutes of the Iron County Commission meeting convened at 9:00 a.m. November 23, 2009 in Commission Chambers at the Iron County Courthouse, Parowan, Utah.
Officers in attendance included:
Alma L. Adams Commission Chair
Wayne A. Smith Commissioner
Lois L. Bulloch Commissioner
Michael Edwards Deputy County Attorney
David I. Yardley County Clerk
Reed Erickson County Administrator
Also Present:
H. Eugene Adams County Auditor
Dennis W. Ayers County Assessor
Deborah B. Johnson County Recorder
SYNOPSIS :
APPROVAL OF MINUTES November 9, 2009
AQUATIC CENTER FUNDING AGREEMENT DISCUSSION
BOOKMOBILE AMENDMENT AGREEMENT APPROVAL AND SIGNATURES
CALENDER SCHEDULE COORDINATION
PAROWAN ANNEXATION REVIEW AND ACTION
PARTICIPATING AGENCY BLM DISCUSSION
RESOLUTION 2009-9 INDUSTRIAL REVENUE BOND AUTHORIZATION
SUU FOUNDATION TAX EXEMPTION REQUEST ACTION
TAMIFLU DISTRIBUTION RECOMMENDATION 1 2
Those assembled were led in the pledge of allegiance by David Yardley.
APPROVAL OF MINUTES November 9, 2009 :
Minutes of the Iron County Commission meeting held November 9, 2009 were approved as amended on a motion by Lois Bulloch. Second was by Wayne Smith. Voting: Alma Adams, Aye; Lois Bulloch, Aye; Wayne Smith, Aye.
Debbie Johnson reported that the Recorder’s office is still waiting for the final installation of the Simplifile program to allow for electronic filing of documents. The office is working on getting all of the data input completed so that plat books can be run in January.
Dennis Ayers reported that the distribution of assessing and collecting tax is being examined to determine the reimbursement rates currently being used. The net result is that Iron County as a recipient County may see a change in the rate we are being funded.
Gene Adams reported that the Legislature is looking at options to change the Restaurant tax currently being used in most Counties. The proposal being drafted would remove the tax completely and the Counties would then be required to adopt an additional general sales tax to replace the lost revenue.
Reed Erickson reported that a group of Federal people will be coming to look at proposed “Prairie Dog Banks” which could be used to alleviate the take restrictions on development due to prairie dog encroachment. He also reported that the UPDRIP group is still attempting to hire a coordinator. The position has been offered to different individuals who have turned down the offer.
Michael Edwards reported that letters have been prepared for landowners along the Kanarra Lower Basin Road informing them that the gate which has been placed across the road must be removed. The letters will be signed by Commissioner Smith and mailed as quickly as possible.
Mike also reported that the Martin Nelson murder trial is scheduled to begin in District Court. Since this is a capital case, with a possible death penalty, the trial preparation is consuming a large portion of the County Attorney office time.
David Yardley reported that the Clerk’s office is in charge of the Courthouse Christmas tree this year. It appears that the tree used in previous years has parts missing and therefore a new tree needs to be purchased. The Commission authorized the purchase of a new tree for the Courthouse.
Lois Bulloch reported on meetings she attended at the UAC annual convention in St George. She also reported on Veterans Day activities she attended.
Lois reported that a new Airport Board Chair has been appointed. Todd Minchie will assume the chair position effective January 1, 2010.
Wayne Smith reported that the Indigent Defense Council has discussed attacks by the ACLU that Utah does not provide adequate defense of indigents, especially in capital cases. The County participates in the Indigent Defense Fund to help with costs associated with capital cases.
Alma Adams reported that Mike Worthen and John Bentley were working on a proposed credit system for prairie dogs. This will be in conjunction with other Counties in developing a bank which can be used for mitigation of prairie dog issues. He also reported that Erica Wiseman has been selected to replace Clair Baldwin in developing a multi County prairie dog recovery program.
RESOLUTION 2009-9 INDUSTRIAL REVENUE BOND AUTHORIZATION :
The following resolution was introduced in writing, was fully discussed, and pursuant to a motion duly made by Commissioner Lois Bulloch and seconded by Commissioner Wayne Smith, was adopted by the following vote:
AYE:
Alma L. Adams
Wayne A. Smith
Lois L. Bulloch
RESOLUTION NO. 2009-9
A RESOLUTION OF THE COUNTY COMMISSION OF IRON COUNTY, UTAH (THE “ISSUER”) AUTHORIZING THE ISSUANCE AND SALE BY THE ISSUER OF ITS INDUSTRIAL DEVELOPMENT REVENUE BONDS, SERIES 2009 (HOLT DAIRY PROJECT) IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $6,000,000, TO FINANCE THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF CERTAIN SOLID WASTE COMPONENTS OF A DAIRY FACILITY FOR HOLT DAIRY, INC. AND ROBERT HOLT FARMS, INC. (TOGETHER, THE “BORROWER”), PAYABLE SOLELY FROM REVENUES ARISING FROM THE PLEDGE OF A LOAN AGREEMENT WITH THE BORROWER; AUTHORIZING THE EXECUTION AND DELIVERY BY THE ISSUER OF A LOAN AGREEMENT AND OTHER DOCUMENTS REQUIRED IN CONNECTION THEREWITH; AUTHORIZING THE TAKING OF ALL OTHER ACTIONS NECESSARY TO THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS RESOLUTION.
WHEREAS, pursuant to the Utah Industrial Facilities and Development Act, Title 11, Chapter 17, Utah Code Annotated 1953, as amended (the “Act”), Iron County, Utah (the “Issuer”) is authorized to issue its revenue bonds to finance the costs of any “project” as defined in the Act to the end that the Issuer may be able to promote the general welfare and encourage the increase of industry and commerce within the State of Utah; and
WHEREAS, the Act provides that a municipality or county may issue revenue bonds for the purpose of using substantially all of the proceeds thereof to pay or to reimburse a business for the costs of the acquisition and construction of the facilities of a project and that title to or in such facilities may at all times remain in the company and in such case the bonds of the municipality or county shall be secured by a pledge of one or more notes, debentures, bonds or other secured or unsecured debt obligations of the company; and
WHEREAS, Holt Dairy, LLC, a limited liability company and Robert Holt Farms, Inc., a corporation, both duly organized under the laws of the State of Utah and authorized to do business in the State of Utah (together, the “Borrower”), have or will enter into contracts for the acquisition, construction, furnishing, equipping and improvement of solid waste disposal facilities for use by the Borrower, to be located in Iron County, Utah (the “Project”); and
WHEREAS, the County Commission of the Issuer (the “Commission”) on August 10, 2009, adopted a resolution and made certain findings and determinations with respect to the Project (the “Inducement Resolution”); and
WHEREAS, the Project will be of the character and will accomplish the purposes provided by the Act, and in connection with the financing of the Project the Issuer will issue its $6,000,000 Industrial Development Revenue Bonds, Series 2009 (Holt Dairy Solid Waste Project) (the “Bonds”); and
WHEREAS, the proceeds of the Bonds will be sufficient to pay the costs of the Project all as set forth in the Loan Agreement (the “Loan Agreement”) among the Issuer, Zions First National Bank, as lender (the “Lender”), and the Borrower, substantially in the form attached hereto as Exhibit B; and
WHEREAS, the Commission deems it necessary and advisable to authorize the issuance and confirm the sale of the Bonds and to authorize the execution and delivery of an escrow agreement (the “Escrow Agreement”) among Zions First National Bank as escrow agent (the “Escrow Agent”), the Issuer, the Lender, and the Borrower, in substantially the form attached hereto as Exhibit C, the Loan Agreement, and other related documents required for the sale of the Bonds; and
WHEREAS, pursuant to the provisions of the Loan Agreement, the Borrower will promise to pay amounts sufficient to pay, when due the principal of, premium, if any, and interest on the Bonds, all in accordance with the requirements of the Act; and
WHEREAS, after published notice, a public hearing was held on September 14, 2009, at which any interested party had an opportunity to comment upon the proposed issuance of the Bonds or any other matter relating to the Project; and
WHEREAS, the County has published on August 24 and August 31, 2009, a notice of bonds to be issued with respect to the Bonds in compliance with Section 11-17-16 of the Act; and
WHEREAS, the Act and the documents to be signed by the Issuer provide that the Bonds shall not constitute or give rise to a general obligation or liability of the Issuer or be a charge against its general credit or taxing powers, and that the Bonds will be payable from and secured only by the revenues arising from the pledge and assignment under the Loan Agreement.
NOW, THEREFORE, BE IT RESOLVED by the County Commission of Iron County, Utah as follows:
Section 1. All terms defined in the recitals hereto shall have the same meaning when used herein.
Section 2. The Issuer is authorized to finance the costs of the acquisition and construction of the Project by the Borrower with the proceeds of the Bonds, all pursuant to the provisions of the Act. All action heretofore taken by the officers of the Issuer directed toward the issuance of the Bonds is hereby ratified, approved, and confirmed.
Section 3. The Issuer is authorized and directed to issue the Bonds in the aggregate principal amount of $6,000,000. The Bonds shall bear interest, shall be payable on the dates, shall be subject to redemption prior to maturity, and shall mature all as set forth in the Loan Agreement.
Section 4. The form, terms and provisions of the Bonds and the provisions for the signatures, authentication, payment, registration, transfer, exchange, redemption, tender, and number shall be as set forth in the Loan Agreement. The Chair and County Clerk are hereby authorized and directed to execute and seal the Bonds. The signatures of the Chair and County Clerk may be by facsimile or manual execution.
Section 5. The form of Bond is set out in the Loan Agreement, copies of which were before the County Commission at this meeting, which form is incorporated herein by reference and made a part hereof.
Section 6. The Bonds are to be issued in accordance with and pursuant to and the Issuer is authorized and directed to execute and deliver the Loan Agreement in substantially the same form presented to the County Commission at the meeting at which this resolution was adopted. The Loan Agreement provides for the use of the proceeds of the Bonds solely for the purpose of financing the cost of acquiring and constructing the Project and for paying expenses incidental thereto. The Loan Agreement provides for certain representations and warranties by the Issuer and the Borrower, for certain conditions precedent to the purchase of the Bonds, for certain affirmative and negative covenants, and for remedies in connection with the failure to perform certain covenants thereunder. The Loan Agreement specifically provides that the Bonds shall not constitute or give rise to a general obligation or liability of the Issuer or a charge against its general credit or taxing powers. Recourse on the Bonds executed and delivered by the Issuer pursuant to the Loan Agreement may be had only against the security for the Bonds as provided therein and in the Loan Agreement.
Section 7. The Escrow Agreement provides that the Borrower will have the ability to requisition from the Escrow Agent, with approval from the Lender, the proceeds of the Bonds from time to time, all in accordance with the provisions of the Escrow Agreement. The Loan Agreement provides that if the proceeds of the Bonds are not sufficient to defray all costs and expenses of acquiring, constructing, and improving the Project and all expenses incidental thereto, the Borrower will pay all such excess costs and expenses, and will acquire and install the Project without additional cost to the Issuer.
Section 8. The Project will constitute solid waste disposal facilities to be used for the reduction, abatement or the prevention of pollution as contemplated in the Act consisting of certain equipment and related improvements, including any modification thereof, substitutions therefor and amendments thereto.
Section 9. The Loan Agreement and the Escrow Agreement, in substantially the forms presented to the County Commission at this meeting, with such changes as are authorized by Section 10 hereof, are hereby approved in all respects, and the Chair and County Clerk are hereby authorized to execute each of the same on behalf of the Issuer and to affix the seal of the Issuer thereto and the acts of the Chair and County Clerk in so doing are and shall be the act and deed of the Issuer. The Chair and County Clerk or any other proper officers and employees of the Issuer are hereby authorized and directed to take all steps on behalf of the Issuer to perform and discharge the obligations of the Issuer under each of said instruments.
Section 10. The Chair is hereby authorized to make, either prior or subsequent to the execution thereof, any alterations, changes or additions in the Loan Agreement, the Escrow Agreement, and the Bonds which may be necessary to correct any errors or omissions therein, to remove ambiguities therefrom, to conform the same to other provisions of said instruments, to the agreement of the Borrower, the Lender, to the provisions of this resolution, or any other resolution adopted by the Issuer, or the provisions of the laws of the State of Utah or the United States as long as the rights of the Issuer are not materially adversely affected thereby.
Section 11. Pursuant to Section 11-17-13, Utah Code Annotated 1953, as amended, the Issuer includes herein the pledge and undertaking of the State of Utah that the State of Utah will not alter, impair or limit the rights vested hereunder or in the Bonds, the Loan Agreement, the Escrow Agreement or any of the documents contemplated hereby until the Bonds, together with all interest thereon, have been fully paid and discharged and all obligations of the Issuer thereunder and under the Loan Agreement and the Escrow Agreement are fully performed.
Section 12. It is hereby declared that all parts of this resolution are severable and that if any section, paragraph, clause or provision of this resolution shall, for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of any such section, paragraph, clause or provision shall not affect the remaining provisions of this resolution.
Section 13. The Chair and County Clerk and any other duly authorized officers of the Issuer are hereby authorized to execute all documents and take such action as they may deem necessary or advisable in order to carry out and perform the purpose of this resolution and the execution or taking of such action shall be conclusive evidence of such necessity or advisability. All action heretofore taken by the Issuer, its officers and employees, with respect to the issuance and sale of the Bonds is hereby ratified and confirmed
Section 14. All resolutions, orders and regulations or parts thereof heretofore adopted or passed which are in conflict herewith are, to the extent of such conflict, hereby repealed. This repealer shall not be construed so as to revive any resolution, order, regulation or part thereof heretofore repealed.
Section 15. This resolution shall take effect immediately upon its approval and adoption.
APPROVED AND ADOPTED by the County Commission of Iron County, Utah, on this November 23, 2009.
BOARD OF COUNTY COMMISSIONERS
IRON COUNTY, UTAH
_____________________________________
(Seal) Alma L. Adams, Chair
ATTEST:
David I. Yardley, Iron County Clerk
BOARD OF EQUALIZATION MATTER :
Dennis Ayers, County Assessor, presented a letter from Margie and Eldon Clothier for property in Meadow Lake Estates, Lot 1, Blk P and Lot 2 Blk P. The two lots are adjacent to each other and have an obvious error in valuation. The Clothier’s did not appeal the valuation during the BOE hearing window. Because their request for a BOE hearing is not timely, the Commission requested the County Attorney’s Office to review the issue in State Code to determine if an “out of time” BOE request can be granted. The matter will be recalled at the next Commission meeting for action.
Colette Eppley presented position justification and workforce assessments for approval for the following positions. Tourism, change a Seasonal/Temporary employee position to a part time Regular Receptionist; Sheriff, Replacement of a full time Deputy Sheriff; and Recorder, Replacement of a part time Deputy Recorder.
Lois Bulloch made a motion to table the Tourism position from a Seasonal/Temporary to a part time Receptionist, to table the Deputy Sheriff full time Deputy replacement, and to table the part time Recorder Deputy position to allow time to consider with budget implications. Second by Wayne Smith. Voting: Alma Adams, Aye; Lois Bulloch, Aye; Wayne Smith, Aye.
Colette also presented a request from Corrections to promote Hillary Nelson from Secretary I to Secretary II. This would result in a budget increase of $1,300 annually. Ms. Nelson is currently performing the work of a Secretary II. Wayne Smith made a motion to approve the promotion of Hillary Nelson to Secretary II in Corrections. Second by Lois Bulloch. Voting: Alma Adams, Aye; Lois Bulloch, Aye; Wayne Smith, Aye.
PAROWAN ANNEXATION REVIEW AND ACTION :
A notice of a proposed annexation was called for action after being tabled at the previous meeting. Parowan City submitted maps showing the proposed annexation area. The area is adjacent to existing City Boundaries. Wayne Smith made a motion not to oppose the annexation but asked that Parowan to be mindful not to create or to eliminate peninsulas or islands with their annexations. Second by Lois Bulloch. Voting: Alma Adams, Aye; Lois Bulloch, Aye; Wayne Smith, Aye.
CALENDER SCHEDULE COORDINATION :
Reed Erickson coordinated calendars with the Commissioners for the next two weeks.
BOOKMOBILE AMENDMENT AGREEMENT APPROVAL AND SIGNATURES :
An amendment to the Bookmobile contract was presented for approval. The proposed amendment was reviewed whereupon Wayne Smith made a motion to approve the amendment and to authorize signatures. Second by Lois Bulloch. Voting: Alma Adams, Aye; Lois Bulloch, Aye; Wayne Smith, Aye.
SUU FOUNDATION TAX EXEMPTION REQUEST ACTION :
The request from the Southern Utah University Foundation for a tax exemption on property they own which included two vacant parcels and a home located on 300 West in Cedar City. Mike Edwards reported that in conversation with other Counties and his research, he is of the opinion that the Foundation is not an arm of the State and is established for convenience in fund raising, and therefore does not qualify as a University property.
After additional conversation with Washington County Assessor in which it was determined that Washington County did not grant tax exempt status to SUU Foundation properties, Lois Bulloch made a motion to deny the request for tax exempt status based on the fact that the property is owned by the SUU Foundation, not by the State of Utah. If the Attorney General issues an opinion as requested that the SUU Foundation is actually a subsidiary of the State, the SUU Foundation may reapply for tax exemption. Second by Wayne Smith. Voting: Alma Adams, Aye; Lois Bulloch, Aye; Wayne Smith, Aye.
TAMIFLU DISTRIBUTION RECOMMENDATION :
The distribution of the County Tamiflu stockpile of 150 doses was recalled for discussion. Reed Erickson and Charlie Morris reported that Washington County had decided to return a portion of their stockpile to Southwest Public Health for storage. Iron County purchased their stockpile to distribute to First Responders in case of a pandemic flu outbreak.
The Swine flu outbreak appears to be decreasing and therefore the need for use at this time is decreasing also. After reviewing options, Lois Bulloch made a motion to return 100 doses of Tamiflu to Southwest Public Health for storage. The County will retain 50 doses for use by First Responders. Recipients will be required to present a prescription to receive a dose of Tamiflu. Second by Wayne Smith. Voting: Alma Adams, Aye; Lois Bulloch, Aye; Wayne Smith, Aye.
PARTICIPATING AGENCY BLM DISCUSSION :
The Commission reviewed a memorandum of understanding between Iron County, Utah and the Bureau of Land Management regarding the development of the environmental impact statement for the Gateway South Transmission Line Project. This project is proposed to construct a power transmission line from Wyoming to Southern Nevada. Wayne Smith made a motion to approve the MOU and to designate Mike Worthen as the Iron County representative in this process. Second by Lois Bulloch. Voting: Alma Adams, Aye; Lois Bulloch, Aye; Wayne Smith, Aye.
AQUATIC CENTER FUNDING AGREEMENT DISCUSSION :
Reed Erickson discussed funding of the County commitment to the Cedar City aquatic center. The County Attorney’s office is drafting an agreement that the County Restaurant Tax will reimburse the County General Fund $750,000 over a twenty year period at a rate of $50,000 per year. This will be an internal loan between funds and will not affect the County commitment of $1,250,000 the County will donate to Cedar City for construction of the aquatic center. The matter will be placed on the next agenda for final approval.
The meeting was adjourned at 12:30 p.m. on a motion by Lois Bulloch. Second was by Wayne Smith. Voting: Alma Adams, Aye; Lois Bulloch, Aye; Wayne Smith, Aye.
Signed: Alma L. Adams, Chairman
Attest: David I. Yardley
County Clerk