SAN JUAN COUNTY COMMISSION MEETING

April 16, 2012

The regular meeting of the San Juan County Commission was held at 10:00 A.M. in
the Commission Room in Monticello, Utah.

Present:

Bruce Adams, Chairman

Phil Lyman, Commissioner
Rick Bailey, SJC Administrator
Norman L. Johnson, SJC Clerk/Auditor
Dawn R. Shaw, SJC Deputy Clerk

Absent: Kenneth Maryboy, Vice Chair

Attendees:

Jerry McNeely, Marilyn Boynton, Crystal Holt, Rick Eldredge, Larry & Carla

Sorrell, Monte Wells, Lynn Stevens, Maxine Deeter, Keith Price, Don Hampton,
Nick Sandberg, Monte Dalton, Bob Turri, Justin Bergerman, Greg Westfall,
Howard Randall, Greg Adams

A motion to approve the minutes of April 9, 2012 was made by Commissioner Phil Lyman.
Commissioner Bruce Adams seconded the motion. None opposed. Vote unanimous.

Crystal Holt SJC Personnel

Crystal presented a request for a job change for Darryl George to a Grade 1 Step 1 part time

position for the landfill. A motion to approve the request was made by Commissioner Phil
Lyman. Commissioner Bruce Adams seconded the motion. None opposed. Vote unanimous.

Keith Price K2O Utah

Keith updated Commissioners on the progress of the potash mining. There was discussion of
the BLMs master lease plan and the affects it may have on the potash mining. Keith asked for
a resolution or letter of support from the county to the BLM for mining in the area. There was
also discussion of a possible letter of support from the State.

Rick Eldredge SJC Sheriff

Rick along with Maxine Deeter from the BLM and Justin Bergerman for CEU/USU reported to
Commissioners that the Blanding Shooting Range (which is on BLM property) has been in
trespass for 40 years. Maxine said the BLM could issue a 3 year temporary use permit in which
the BLM could dispose of the land to the county without having to clean up all the lead. Rick
stated that the range would be open to public as well as all local law enforcement. The major
foreseeable expense would be a chain link fence. They presented a request to have
Commissioners apply for a temporary use permit (the fee will be waived) and a recreation
public purpose permit in the amount of $100. A motion to pass a resolution to apply for the
permits was made by Commissioner Phil Lyman. Commissioner Bruce Adams seconded the
motion. None opposed. Vote unanimous.

Rick presented a capitol funds project request to replace 5 hand guns with the funds
coming from a forest service contract. A motion to approve the request was made by

Commissioner Phil Lyman. Commissioner Bruce Adams seconded the motion. None opposed.
Vote unanimous.

Rick Bailey SCJ Administrator

Rick presented a request to approve one building permit

Steven Redd Lodge/Rental North Buckeye, Old La Sal
A motion to approve the request provided all appropriate signatures are in place was made by
Commissioner Phil Lyman. Commissioner Bruce Adams seconded the motion. None opposed.
Vote unanimous.

Rick presented a request to accept Easement 1680 on CR 313 (Lisbon Valley Road). A motion to
approve the request was made by Commissioner Phil Lyman. Commissioner Bruce Adams
seconded the motion. None opposed. Vote unanimous.

Rick presented a request to approve an intergovernmental agreement with BIA for road
maintenance in the Reservation in the amount of $78,848. A motion to approve the request
was made by Commissioner Phil Lyman. Commissioner Bruce Adams seconded the motion.
None opposed. Vote unanimous.

Rick presented a request to approve a Bridgenet Contact in the amount of $3,327.46, 95% paid
by the FFA and 5% paid by the county, for the Cal Black Airport EIS on noise. A motion to
approve the request was made by Commissioner Phil Lyman. Commissioner Bruce Adams
seconded the motion. None opposed. Vote unanimous.

Rick presented a request to approve payment to Creamer & Nobel for the Bluff Airport crack
seal/slurry seal project in the amount of approximately $20,000 of which the State will pay 90%
and the county will be responsible for 10%. A motion to approve the request was made by
Commissioner Phil Lyman. Commissioner Bruce Adams seconded the motion. None opposed.
Vote unanimous.

Rick presented a request to approve payment in the amount of $39,018 to Keesee Motors for a
chassis for the Montezuma Creek Fire Truck that was involved in an accident last fall. A motion
to approve the request was made by Commissioner Phil Lyman. Commissioner Bruce Adams
seconded the motion. None opposed. Vote unanimous.

Rick reported to Commissioners that there will be approximately 16 digital (not analog) TV
channels available in Mexican Hat and South in the next few weeks.

Rick presented a request to approve Redd Mechanical as the low bid on equipment for the Kane
Valley arsenic well clean up in the amount of $14,521.50. The county does not actually put
money into this they act as a pass through for NRFB. A motion to approve the request was
made by Commissioner Phil Lyman. Commissioner Bruce Adams seconded the motion. None
opposed. Vote unanimous.

Rick reported to Commissioners about the complaints from the Hole in the Rock store
regarding engine brake noise. There was discussion about talks with UDOT and Commissioners
asked Rick to draft a letter to the owners of the store guiding them in areas they could pursue
resolution.

Jerry McNeely SJC Liaison

Jerry reported to Commissioners that he met with SITLA, BLM and the Housing Authority. He
stated that BLM is talking about possibly leasing campgrounds in Kane Creek from SITLA. He
also stated that UDOT would like to revert to a previous plan for the Sunny Acres Lane drainage
issue.

Nick Sandberg SJC Planning

Nick reported to Commissioners that he has been following up with the Glen Canyon HOV plan,
has met with BLM, Lynn Shumway of the Blanding Visitors Center, and SJC Ec. Developments
Pam Hanson about permit issuing for the ATV Safari this year. He also stated that he has been
working with John Fellmeth and David Bronson screening roads for the county.

Commission Reports

Commissioner Lyman reported that he attended a San Juan Heritage Council meeting on
Wednesday where they are asking Commissioners to weigh in on projects. He also stated that
he wanted to go on record with property tax issues with the following letter:

I feel the need to go on record on the matter of property taxes. I am a business person and
have been selfemployed for my entire career. The customers of my accounting firm are small
businesses; farmers, ranchers, miners, wildcatters, cat skinners, and mule skinners. They are
producers, retailers, hospitality businesses, manufacturers. Main street businesses are the
lifeblood of our communities. They employ our kids, contribute to our sports programs and

scout troops. They are our neighbors. It was not until I got into this position as commissioner
that I ever would have believed that business friendly was an undesirable posture for
government to take, yet I have heard legislators criticized for being business friendly and
others praised for being government friendly. I would have to say that government, as a
whole in San Juan County is not business friendly, and I would like to see that changed. Growth
of the government sector seems to be the goal here and with most of the taxing entities in the
county.
I have only my own experience in my firm and the commission to go by. I think it is a pretty
good gauge of small business in the county. Here is what I see: In 2010 our County Assessor
undertook to re-assess the homes of the residents of Blanding. Home valuations rose by roughly
30%. This, at the bottom of the worst housing decline in US history. Monticellos homes were
re-assessed in 2011, with a roughly 18% increase. At the same time an all out assault was made
on the businesses of the county in terms of personal property taxes. Our assessor invited state
auditors to audit many businesses for personal property tax purposes. Again from my
perspective in dealing with my own clients, the assessor gave the auditor his list of individually
selected businesses, but that list grew as the auditors stumbled around our communities. The
assessor authorized additional audits. When the score was settled, business were being
assessed personal property taxes on million dollar drill rigs, semi trucks, real estate
acquisitions, fixed improvements to real property. There is not a business in this county that
would not consent to a fair evaluation of their personal property, but the only thing I can
determine, again from my own experience with the assessor, is that there is an agenda in play.
When my own properties are so grossly overvalued and all assumptions are made in favor of
the government. When the board of equalization adjusts virtually every property that comes
before it, there is a problem. I dont understand it and I have had the discussion with the
assessor office many times. Here is how it seems to work in San Juan County. The state says

they would like to see an increase The assessors office jumps into action and makes a halfhearted effort and recklessly increases values, picking and choosing property owners based on
some bias or fantasy. In the board of Equalization, a handful of those property owners protest
and have their property lowered, often dramatically. The rest of the taxpayers assume that
their elected officials are looking out for them. They are nervous to rock the boat for fear of
reprisal, which we have seen much of that as well. Or when they come to the BOE they are
intimidated and embarrassed by the whole circus. The net effect is that you have a broad and
sweeping increase, and a specific and individual correction.
Reprisal?? You better believe it. I have had one full blown IRS audit of a business in the past 20
years. Most are specific, but after my complaints to Howard and to the State, one of the
specially selected businesses for personal property tax was also selected for an IRS audit. When
I conversed with the IRS Auditor, he confirmed that these audits are most often the result of a
whistle blower tip that the IRS receives. In my discussions with the State auditors office, the
auditor argued aggressively that he was correct and made the comment that the IRS would be
interested the way we were depreciating assets. Happily, we won our case with the IRS and
showed that Drill rigs and Semi Trucks are not taxed as personal property, but that they are
depreciable as equipment for income tax purposes.
These are the actions of a vindictive assessment team. Whether by the local assessor or the
state assessor makes little difference to me, the net effect is the same. We elect our assessor
locally because he has our local interest at heart. He is politically accountable to the citizens of
the county. He should know that there will be repercussions for using breeching that public
trust.
Now he has called in the State, AGAIN, to help reappraise commercial property. I told him and
County employee Gregg Adams that they should value main street property on its productive
value. That most commercial property was already paying the equivalent of two months gross

rental value in property taxes, and that the state average was two weeks rental value. I warned
that a steep increase would lead to the closure of businesses. Both assured me that they were
very sensitive to that fact and that the last thing they wanted to do was to hurt our local
businesses.
Again, double, triple, and quadruple the value has been the norm. Property purchased for
$45,000 10 years ago is now valued at $225,000. Forget what a willing buyer paid a willing
seller, the assessor knows better. Forget that the buildings are vacant or in disrepair. Forget
that we have been in a real estate decline for the past 5 years. Forget that the banks have cut
the collateral value of commercial property in half in the past 5 years. The assessors office is
not valuing these buildings; they are working for a greedy, voracious government that is
willing to feed its appetite for growth by overtaxing its citizens. And in San Juan County we are
talking about citizens that are already at the bottom of the food chain. You invite a Salt Lake
Auditor to value a Blanding Property. They look at the square footage, times it by the value that
it would be in Salt Lake and send out the notices. How is that acceptable? It is not acceptable to
me. As a business owner, and an owner of commercial real estate myself, it is not acceptable
and I wont pay it.
At the same time, our county has a new restaurant tax to deal with. Those who were caught
unaware, are now dealing with the State Tax Commission, paying erroneous assessments,
egregious fines, reconfiguring their cash registers to collect the tax, re-working menus etc to
appease the tax commission and the County. The TRT has gone from 1.5% to 4.25% in the past
7 years. That money is used to promote tourism in San Juan County, which is a good thing.
Certainly several new cars, several new county employees with benefits, a new jail, a new 4
corners school to help close roads and teach our children of the damage that cattle do to
mother earth, are not the best way to promote tourism in San Juan County.
Our businesses are being barraged with Sales Tax Audits as well. No big deal, just show up with

the last three years documents, including tax returns, ledgers, vendor invoices, records of cash
used to buy cleaning supplies, a record of items purchased tax free and used in the business, a
record of inventory and its comparison to sales, all personal property tax purchases, all
employee withholding, all payments to contract workers. Businesses who get these notices take
a couple of weeks to gather the information knowing that any information they provide will be
used to their detriment. For example, a missing z-tape will be estimated at the highest daily
sales for that period, but obvious misrings in the commissions favor are not thrown out as
erroneous. Again, heads I win tails you lose. Im not saying that businesses should not be
audited, but the state and the county audits that I have been involved with, seem to regard
businesses as two bit criminals worthy of mistreatment. As if these bureaucrats will ever be on
the other side of the desk. They have no risk and seem to view self employed business people as
chumps who were not smart enough to get a government job. The state has adopted the
practice of sending out assessments based on estimates that are roughly 20 times the average
tax collected. If a taxpayer does not respond, the estimated balance becomes the collectible
amount and penalties and interest begin to accrue. I had a client that received a bill for over
$20,000 on a business that had been closed 10 years earlier. The tax commission had continued
sending notices that were returned. There was no tax due. The final returns had been marked
as final, yet the state did not take the time to even look at the circumstances of the case.
Ultimately I won that case for my clients as well, but not without significant frustration and
cost. The state offices are full of disgruntled workers who could not care less about accuracy or
fairness.
If there is anyone here whom I have not offended, I would like to do so now. The assessor may
be serving the system. The State auditors may be out of touch and part of a regime designed to
intimidate and collect. The county may be complicit in allowing these wrongs to be perpetuated
on its citizens, individual and corporate alike. But who benefits? Every taxing entity in the

county that opted to accept the States certified rate. This whole certified rate system is, in
itself a Heads I win, tails you lose system. But you have a school district that happily takes an
unbudgeted $600K revenue windfall. This is not a county school district by the way; it is a State
School District. I attended the budget hearing and plead for a reduction in the taxes. One board
member agreed with me, Thank you Merri Shumway. The others judiciously determined that
that money, which had not been factored into their budgets previously, could be put to better
use by building more buildings which would require more maintenance which would require
more taxes to provide more jobs would be a prudent use; which, if you work for the
government and hope that your kids can come back and work for the government is logic.
Selfish and short-sighted but, logical. Of course we have no choice but to rely on federal funds
at some point, because everyone knows we poor people in San Juan County are not able to pay
our own way. We can only hope that our native people will remain unemployed and poor,
otherwise we may lose our federal funds. There is no need for innovation, creativity, or
ingenuity in lowering the cost of education because there is, at the end of the day, a tolerance
for increasing the taxes whenever and wherever. The City of Blanding, after adopting the
certified rate, was persuaded to amend the motion and remain revenue neutral. Thank you
Blanding City Councilmen!! I know it was not a big sacrifice, but it is the principle of the thing
that matters. As citizens of San Juan County, we are all beneficiaries of government spending to
one degree or another, but there comes a time, when you have to put your foot down. In the
budget hearings, at the commission meetings, at the city council meetings, the only people who
typically show up are the ones who have an economic gain in mind. Who have a new program,
or want endorsement of a grant proposal. The rest of us are at our jobs working to make a
better life for our families. We believe that there are more important things than attending a
budget hearing, or that our elected officials are looking out for us and will represent us aptly. If
you have been to budget hearings you have probably seen the same thing as me. Issues are

raised, objections are heard, and then the taxing entity does exactly what they planned to do
from the start. We all have the feeling that the game has been rigged. Perhaps it is time to do
more than show up at meetings; maybe its time to boycott the programs that are being used
against us. Assess my property however you please, Im not paying an unfair tax. I am all for
Altruism. I will help my fellowman until I am broke and starving myself, but one thing I wont do
is stand by and watch my neighbors systematically impoverished by government at every level,
least of all at the local level where I hopefully have some influence.
There is a solution to all of these problems, and it is called freedom. Freedom to work. freedom
to produce. Freedom to starve if you are not willing to work. Freedom to save. Freedom to take
risks. And freedom to fail. We can do better. If the county has taken a position which favors
government over business, it is time for some drastic measures. I will be pushing for steep
reductions in spending at the county level and will use whatever influence I have to persuade
the other taxing entities, namely the school district, to do the same. If we are to achieve a
healthy balance, and if there are those in the county who argue for more and more and more
and more, then there must be an equal push back from the business community, what is left of
it, and I will do all that I can to make that happen. Thank you

Commissioner Adams reported that he attended the Governors Ec. Development Summit last
Tuesday and AOG in Price on Thursday. This week he plans to attend a management
conference in Ogden from Wednesday to Friday and the State Republican Convention on
Saturday.

Open Time and Other Business

SJC Resident Lynn Stevens reported to Commissioners that there is a letter from the Hole in The

Rock trail expressing appreciation for county support for the Bluff Fort and the Hole in the Rock
Trail they asked that the county take appropriate action to see that the county road remains
open between Harmony Flat and Mormon Flat on Cedar Mesa. He also stated that the Hole in
the Rock Foundation asked that the county encourage the BLM to have an alternative route for
ATV groups to bypass that particular part of the trail. Lynn also followed up with
Commissioners about last weeks building permit for the DFCM visitors center in Bluff and
what the county should charge for the permit. Commissioners asked Lynn to meet with SJC P&Z
Greg Adams to follow up and resolve the issue.

12:30 P.M. Executive Session

A motion to go into executive session to discuss legal and personnel issues was made by
Commissioner Phil Lyman. Commissioner Bruce Adams seconded the motion. None opposed.
Vote unanimous.

12:46 P.M. End Executive Session

A motion to go out of executive session was made by Commissioner Phil Lyman. Commissioner
Bruce Adams seconded the motion. None opposed. Vote unanimous.

Adjourn 12:50 P.M.

SAN JUAN COUNTY COMMISSION MEETING

May 20, 2013
The regular meeting of the San Juan County Commission was held at 10:00 A.M. in the
Commission Room at Monticello, Utah.
Present:

Bruce Adams, Chairman

Kenneth Maryboy, Vice Chairman
Phil Lyman, Commissioner
Kelly Pehrson, SJC Chief Administrative Officer
Norman L. Johnson, County Clerk /Auditor

Attendees:

Nick Sandberg, Bob Turri, Barbara Trask, Trudy DeAngelis, Jerry McNeely,
James Francom, Rick Bailey, Crystal Holt, Marilyn Boynton, Keith Price, Pam
Hansen, Jeff Nielson

The Minutes of May13, 2013 were approved with a motion by Commissioner Lyman and
seconded by Commissioner Maryboy. The voting was unanimous.

Crystal Holt SJC Personnel

Crystal Holt presented the name of Troy Lopez to be a replacement hire for the County Road
Department at step 89. Troy was selected from a field of seven candidates. A motion to approve
the hire was made by Commissioner Maryboy and seconded by Commissioner Lyman. Voting
was unanimous.
Keith Price K2O
Keith gave the Commission a detailed update on the activities and progress being made by K2O
in their potash exploration and development. He said their operations started 4 years ago and
has now received the BLM permits necessary to continue prospecting on Federal Lands. The
company has secured $20 million for the exploration work and will begin drilling around June
15, after the pronghorn fawning season. K2O has already drilled 3 very successful holes, on
State Lands and have access to 13 Oil and Gas well logs indicating the presence of commercial
quantities of potash. At present they are very satisfied with the progress made by the BLM.
Keith restated their plan to be a good corporate citizen and to priority employ SJC residents. He
said during the construction phase there will be 2500 workers and when in production it will take
200 permanent employees to run the operation.
Rick Bailey SJC Emergency Services
Rick advised the commission that LeGrand Johnson has a UDOT contract to do work on Hwy
191 from mile marker 106108 and 111114 this summer. Rick said he has submitted 4
applications to the old Forrest Highway Project fund but said only some work in the Hovenweep
area will have much of a funding chance.
1

Rick presented Amendment #2 to the NRCS Cooperative Agreement 68-8D43-12-52 for the
EWP FY12 Piute Creek Project. The amendment will extend the project to February 6, 2014
thereby allowing more time for completion. A motion to approve the Chairman signing the
Agreement was made by Commissioner Lyman and seconded by Commissioner Maryboy.
Voting was unanimous.
Rick requested authorization to have the Chairman sign the EMPG Grant for FEMA Funds in the
amount of $32,500. The funds are used to defer some of the Emergency Services administrative
costs. A motion to approve the Chairman signing the grant application was made by
Commissioner Lyman and seconded by Commissioner Maryboy. Voting was unanimous.
Norman Johnson SJC Clerk / Auditor
Norman presented an application from Jefferson Salonen Jr., Root of the Rocks Music
Gathering, for a 3 day Special Events Beer License. The event will be held June 14th 16th in
the north end of SJC. Following a brief discussion The Special Events Beer License was
granted, provided the Sheriff is in agreement, by a motion from Commissioner Maryboy and
seconded by Commissioner Lyman. Voting was unanimous.
Kelly Pehrson SJC CAO
Kelly presented two building permits for approval. Empire Electric microwave tower
Monticello and David Butler home addition Bridger Jack Mesa. A motion to approve the
two building permits provided all the appropriate signatures are in place was made by
Commissioner Maryboy and seconded by Commissioner Lyman. Voting was unanimous.
Kelly presented a resolution restating the counties support for HCR 011 SO1 adopted by the
2013 State Legislature supporting the transfer of the Utah Navajo Trust Fund management to the
Utah Dine Corporation.
RESOLUTION 2013-03
RESOLUTION REAFFIRMING SAN JUAN COUNTS COMMISSION SUPPORT OF
FEDERAL LEGISLATION THAT WOULD TRANSFER MANAGEMENT AND
ASSETS OF THE UTAH NAVAJO ROYALTIES HOLDING FUND (formerly the Utah
Navajo Trust Fund) TO THE UTAH NAVAJO RESIDENTS
The entirety of the resolution is made as an attachment to the minutes
Following a brief discussion a motion to adopt Resolution 2013-03 was made by Commissioner
Lyman and seconded by Commissioner Maryboy. The voting was unanimous.
Kelly requested permission to send a letter to the State Building Board supporting having a local
representative on the board and not moving the (Grand and San Juan) position to Cedar City.
Following a brief discussion a motion was made by Commissioner Lyman and seconded by
Commissioner Maryboy to authorize sending the letter. Voting was unanimous.

In other business Kelly said he had a letter ready for the commissions signature congratulating
the San Juan High Gils softball team for taking the State Championship. Kelly said the
management of the White Mesa Uranium Mill would like to visit with the commission on June
10th at 1:00 PM to review the present and future planning operations of the mill.
Jerry McNeely SJC Northern Liaison
Jerry reported that everyone seems pleased with the 22 permits issued by the BLM to K2O and
that they seemed to have done a responsible job on them. He also said the BLM is working on
addition permits for the Lisbon Valley Mine and the LaSal uranium mine complex. Jerry
mentioned that the BLM was not real supportive of the Root of the Rocks music event but that
they recognize it is on private land. The new BLM Canyon Country District Manager is Lance
Porter.
In other Items Jerry said he continues to work with the attorneys on the RS2477 project in both
Grand and San Juan Counties and on the Tangren Lane gas project.
Nick Sandberg SJC Planner
Nick continues to work with the Colorado Counties on the Gunnison Sage Grouse issue.
Meeting dates are being worked on along with programs to protect the species from extension.
The next major meeting with all the counties will be June 13th in Montrose. Commissioner
Adams said a resolution is being worked on from UAC to WIR and then on to the NACo Annual
Meeting in San Antonio.
Nick is working on various projects involving the BLM such as the Cedar Mesa ATV route and
Recapture Trail. The Arch Canyon stream alteration permit has been sent to the state for
approval. He is also working on items for Mark Ward on HB142.
Nick said the next meeting with the Nation and Dine Bikeyah will be on the 18th of June and
reminded the Commission of todays 1:00 PM executive session meeting with the Grand County
Council.
Commission Reports
Commissioner Lyman attended San Juan Farm Days last week and was very impressed.
Thursday he went with the RS2477 attorneys and was in SLC for the Republican Convention on
Saturday. This Wednesday he will meet with the USU Chancellor and hopes to have a talk on
establishing a committee regarding the joint position being worked on. He has been invited to go
on a river trip with State Parks June 5th and 6th.
Commissioner Maryboy - said he will be in Flagstaff for WIR this week and continues to work
on the resolutions of support for the Trust Fund.
Commissioner Adams last week he participated in a conference call with UAC and WIR and
then attended the Republican Convention on Saturday. This week he will attend WIR in
3

Flagstaff. Commissioner Adams asked if things were ready for Lieutenant Governor Bells visit
on 28th 30thand said they will need one vehicle. The slow opening of the Halls Crossing Ferry
and early planned closure is of serious concern to the County as it is viewed as a closing of a
County / State Highway.
Citizen Comments
Marilyn Boynton presented four questions and or comments to the commission.
1. What are the Sage Grouse Deadlines? Answer, the end of September.
2. Are additional Deer warning flashers going to be placed along the highway? Answer, It is
a State Highway but we will check with UDOT
3. Her Whooping Crane Experience. Marilyn related the experience she had had with the
Federal Fish and Wildlife and a migratory flock of Cranes in Colorado.
4. She asked Keith Price if there was any possibility of striking oil and gas in their drilling
that would be more valuable than the potash. Answer, Keith indicated he did not think
that was possible due to the types of formations they will be drilling in.

Meeting Adjourned 11:32 AM