Clerk/Auditor
Minutes
Duchesne County
Commission Meeting

Duchesne County
Commission Meeting

The following document has been re-formatted from the original for Internet accessibility.  County Commission Minutes, in their original format, are available through the Office of the County Clerk/Auditor.

MINUTES FOR REGULAR COMMISSION MEETING HELD ON JANUARY 31, 2000 BEGINNING AT 1:00 P.M. IN THE COMMISSION BOARD ROOM
IN DUCHESNE, UTAH

Commissioners Present:  Commission Chairman Guy R Thayne, Commissioner F Ted Kappen, and Commissioner Larry S Ross.

Others Present:  Roland Uresk Deputy County Attorney, Diane Freston County Clerk/Auditor, Shelley Bench Executive Secretary, Clerk/Auditor's Office Taking Minutes.  Cecil Gurr Roosevelt City Police Chief, Trooper Troy Marx, Deputy Leonard Isaacson Roosevelt City Police, Naomi Maxfeild, Beverly Park, Regina Burnhurst, Roger Holfeltz, Sue Coleman, Fred Tew, Jimmy Brotherson, Jean Liddell KNEU/KLCY Radio Station, Lezlee Whiting Uintah Basin Standard, Val Labrum, Clint Talyor, Dr. Wayne Stewart, Craig Kelsey, Ray Hussey, Brad Labaron, Raymond Hardman, Sean Davis and Walt Donaldson with the Division of Wildlife Resources. 

Minutes:    Minutes for January 24, 2000 were read.
Motion:    Commissioner Ross motioned to approve the minutes with corrections, Commissioner Kappen second, the motion carried.   Roll Call Vote:   All Commissioner Aye.

Road Issues - Supervisor Nielsen
Supervisor Nielsen presented the following payment request from Horrocks Engineers:   Payment Request No.12 in the amount of $22,678.75 for Project No. STP-1544(1)5, Engineering Service Agreement No. 99-8223 for the Arcadia Road Project. 

Payment Request No. 10 in the amount of $14,981.83 for Project No. BRO-C12(2), Engineering Service Agreement No. 99-8204 for the Strawberry River Bridge Project.

Motion:   Commissioner Kappen motioned to approve the payment requests from Horrocks Engineers, Commissioner Ross second, the motion carried.    Roll Call Vote:  All Commissioners Aye.

Discussion of Possible Litigation – Cecil Gurr Roosevelt City Police Chief, Trooper Troy Marx Utah Highway Patrol, Deputy Leonard Isaacson Roosevelt City Police were present to brief the Commission on an incident that occurred in October 1999.  The arresting Officers Troy Marx, and Leonard Isaacson, Roosevelt City Police Department and the Highway Patrol have been criticized for the way they handled the arrests of more than 20 (twenty) juveniles attending a party where they illegally consumed alcohol.  Police Chief Ceil Gurr presented a response letter concerning the above-mentioned incident. The Commission thanked the officers for coming in. 

Request for Oil & Gas Lease from Barrett Resources - Clint Taylor  Mr. Turner presented the Commission with an Oil & Gas Lease on a 200 acre piece of property owned by Duchesne County located in Township 3 South, Range 4 West, USB&M Section 3 SW1/4 NW1/4, SW1/4 at $100.00 an acre plus 1/6 royalties for a term of three years. 

Motion:    Commissioner Ross motioned to approve the Oil & Gas Lease Agreement and the $20,000 draft payment Commissioner Kappen second, the motion carried.  Roll Call Vote:   All Commissioner Voting Aye.

Discussion & Decision of 501(C)(3) Proposed for Uintah Basin Medical Center – Motion:  Commissioner Kappen motioned that after hearing comments at the public hearings held, the Hospital Board voting unanimously in favor of the 501(c)(3) and the Finding & Facts that they approve the Uintah Basin Medical Centers change to a 501(c)(3) Corporation, Commissioner Ross second.     

Deputy County Attorney Roland Uresk reviewed the following Finding of Facts:

FINDINGS OF FACTS CONCERNING DUCHESNE COUNTY AND THE UINTAH BASIN MEDICAL CENTER AND THE CHANGE OF STATUS FROM A DBA TO A 501(C)(3) NON-PROFIT CORPORATION

The Board of County Commissioners has held a number of public hearings concerning a proposal to change the status of the Uintah Basin Medical Center from a dba of Duchesne County to a non-profit 501(c)(3) corporation.  In the course of these hearings many issues have been discussed and the Board of County Commissioners has determined that these issues should be reduced to Findings of Fact.

CURRENT STATUS  The Uintah Basin Medical Center currently operates as a dba of Duchesne County.  The county, however, has not directly operated the hospital and for a number of years has relied upon the Board of Trustee’swhich are appointed by the County Commissioners to set policy for the Uintah Basin Medical Center.  Actual management of the hospital is overseen by the hospital administrator who takes his direction from the Board of Trustee’sfor a number of years.

The Uintah Basin Medical Center has operated from the funds generated by the provision of medical services to the community and has not required the input of tax dollars, either from the county general fund or through general obligation bonds passed through the county since the bond issue to build the new complex. All subsequent bonds, lease agreements, and purchase agreements, although in the name of the county, have been paid for by funds generated by the Uintah Basin Medical Center.  Although the Uintah Basin Medical Center is a registered dba of Duchesne County, it has been operated similar to a corporation being managed by a board of directors.  The method of operation, however, does not establish corporate status and therefore any liability issues would be determined based on the fact that the Uintah Basin Medical Center is a dba of Duchesne County.

TRANSFER OF OWNERSHIP  A very important issue in the public meetings has been the transfer or Asale@ of the county hospital and most members of the public are opposed to this sale or transfer of the assets out of the control of the county.  Articles of incorporation of the 501(c)(3) non-profit corporation specifically have provided that in the event that the 501(c)(3) corporation is dissolved, all assets of the corporation come back to the member, the sole member being Duchesne County.  In addition, the articles of incorporation and bylaws specifically limit the board of trustees, powers of sale or transfer of major assets and prohibit such sale or transfer unless they have obtained the consent of the sole member, to wit: Duchesne County.  Furthermore, Duchesne County through its board of county commissioners makes all board appointments and has one county commissioner seated on the board at all times so there is a mechanism of oversee of the operation of the hospital by the sole member Duchesne County.  The bylaws also have a provision that the bylaws cannot be amended  unless it has the consent of the sole member Duchesne County.

LIABILITY ISSUES  The Board of County Commissioners has determined that the county is at risk at being sued each time there is a suit brought against the Uintah Basin Medical Center in its current status as a dba of Duchesne County. Although Duchesne County is covered by insurance and protected from liability as its status as the owner of Uintah Basin Medical Center, if suit is brought that is in excess of the maximum values of the insurance, Duchesne County will be liable for the difference.  Under the non-profit corporation, liability of the county would be substantially decreased as the corporation would be a stand-alone entity, and the county=s involvement in the operation of the corporation would be selecting the Board of Trustee’sand  approval, if any, of transfers of assets.  As long as the county follows its procedures and does not get directly involved in the day-to-day management decision of the hospital and leaves the policy making to the Board of Trustee’sthe County=s liability for actions at the Uintah Basin Medical Center will be minimal, if any.

RETIREMENT SYSTEMS ISSUES  The hospital employees and administration have attempted to withdraw from the State retirement system due to the fact that the retirement contributions to the system which are not vested in employees when the employee terminates, remains with the system. There is recognized a high turnover in the medical professions and service industries and although the turnover rate of medical personnel at the Uintah Basin Medical Center is less than the national average ie. 20% vs. 24%, the turnover results in retirement funds being contributed to the State retirement system from which the employees of the Uintah Basin Medical Center do not get benefits.  The Board of County Commissioners has determined that this problem cannot be solved in the Uintah Basin Medical Center having the status of a dba of Duchesne County hospital without a change in legislation.   The transfer of the status from a dba to a non-profit corporation would effect the change on the retirement system without the need of legislation.

LEGISLATIVE MANDATES  With the change of the rules and laws governing provision of medical services and a movement on the part of certain legislators to limit the ability of government-owned hospitals and restricting their ability to compete, it is determined that under the dba, ownership would still be by the county which would limit the ability of the Uintah Basin Medical Center to provide certain services within the medical field.  As a non-profit corporation it would not be subject to such limitations.  Furthermore, the corporation would have the ability to partner or joint-venture with private providers of other medical services whereas as a dba, Uintah Basin Medical Center may not have the ability to enter into such agreements.

PERSONNEL AND EMPLOYEE ISSUES  The Uintah Basin Medical Center has operated under a separate employee system the separate policies and procedures.  As a dba it is a part of the county and there is a risk of a discrepancy between the benefits offered by the Uintah Basin Medical Center and the benefits offered by the county.  This could present some legal issues concerning equal protection.  As a non-profit corporation Uintah Basin Medical Center can have a different structure for its personnel and employees then Duchesne County and such discrepancies would not violate the equal protection law.

CHARITABLE DONATIONS  It has been brought to the attention of the Board of County Commissioners that as a non-profit corporation the corporation would be eligible to accept charitable donations as a means of generating revenue.  It is thought that the fact that the hospital would be an entity of Duchesne County would limit the desire of individuals to make donations to the hospital, but as a separate entity such limitations would not exist.  The Board of County Commissioners has determined that an offset of charitable donations would be the ability of the Uintah Basin Medical Center to access government funds and grants available to government entities as a dba of Duchesne County.  Therefore the issue of charitable donations  would be of a minimal effect as it is offset by the loss of funding through grants and other government funding sources.

COMPETITION  An important fact that has been brought up in all of the public hearings is the concern about the Uintah Basin Medical Center as a competitor to those who privately offer medical services primarily the pharmacy, physical therapy, eye care, dental care, and hospice.  The concerns center   around the ability of the medical center to require that the services be done in-house thus cutting off outside competitors and the disadvantage  private companies have  competing against a government entity that would be supported by tax dollars and the unequal advantage resulting from corporations being subject to property and income tax whereas the Uintah Basin Medical Center would not.  The fact that the non-profit corporation or the dba would not pay taxes, is offset by the requirement that the dba or non-profit corporation provide charitable services in order to maintain their non-profit status.  After careful consideration the Board of County Commissioners has determined that the Uintah Basin Medical Center either as a dba or a non-profit corporation has not and will not be receiving subsidies in the form of tax dollars and finds no merit in the allegation of a governmental entity, either in the form of the 501(c)(3) non-profit corporation or the dba having an unfair advantage of competition by reason of these issues.The Board of County Commissioners does express a concern about the ability of the Uintah Basin Medical Center to lock out competition by directing that health services which can be provided by private entities be administered within the hospital itself and recognizes that it is possible for the Uintah Basin Medical Center as a non-profit corporation to engage in such type of business practices.  The Board of County Commissioners views that its authority in the appointment of the board of trustees and the fact that a county commissioner will be sitting on the board itself with voting power would be sufficient to insure that there is no unfair advantage on the part of the medical center as against private entities providing the service.  They do, however, recognize that competition between businesses including the medical center itself leads to better and more efficient operation and lower pricing. 

CONCLUSION  Now having made these findings, the Board of County Commissioners shall make the decision as to whether or not the Uintah Basin Medical Center shall be a dba of Duchesne County or shall be a non-profit corporation having 501(c)(3) status.

Commissioner Thayne stated: History does not prove that the hospital needs a shield of protection by the corporation.  I think that it was stated in our minutes earlier that it is another layer of government.  The hospital reduces its liability when there is a patient that needs care that we can’t handle we transport the patient somewhere else.  This is a wise move, for more than one reason, but it isn’t necessarily a great concern as to liability.  Duchesne County can also be penetrated in liability issues even with the Hospitals 501(c)(3) status.

The hospital has shown its ability in operating to produce a positive income statement above what they need to operate, and I think that is commendable.  I think that they can continue to do that.  I believe this will give wings to government so that they could fly in any direction that they want to which, I directly oppose.  The government will have more ability to compete with private industry.  I believe they have the ability necessary to contract with private companies to get anything that is needed without being 501(c)(3).  If something were to go wrong, which is possible, and the hospital breaks it’s leg so to speak, we still have the responsibility as the County to get up and carry it even if it were a 501(c)(3), with very little, I feel, authority to direct what they might do.  I have a question on charity; I believe the majority of the charity that has been given as a dba has been given under duress, that it’s bills were unpaid and so we end up carrying that.  And in this situation as a 501(c)(3) I believe we have a greater responsibility to carry those that might have someone who needs charity and they could indeed stabilize them and send them to us and we have a responsibility to accept that. With that I will call for a vote. 

Jimmy Brotherson:  Non-profit was mentioned again and again, Fred and I could make the hospital non-profit, just send the extra to us.  I think somebody is going to be in control. Somebody besides Duchesne County will be in control and I oppose that.  

Naomi Maxfield:  I have a question about this Board of Trustees.  Do we know who they are? Will we have a chance to vote on them?  Will we have any choice at all in controlling that Board of Trustees? That Board of Trustee’s is going to be fallible eventually, and I question the role the County Commissioners will have.  Some County Commissioner may be in charge there to.  I have to admit that I am very cynical about anybody in the Government.  How do I know and how can I control what that Board of Trustee’s are going to do?

Sue Coleman:   Who is on the Board? 

Craig Kelsey:   I am

Dr. Wayne Stewart: I am

Val Labrum: I am

Naomi Maxfield: What choice do I have in who goes on that board?

Commissioner Thayne: Right here.  The Commission appoints the board.

Commissioner Kappen:  Before anyone is appointed to the board, it is advertised in the paper.  And anybody wanting to sit on the board can submit an application or resume.    

Commissioner Ross: The Uintah Basin Medical Center has been a great asset; in fact it is a primarily important organization in the County.  This hospital has a great value to the citizens of Duchesne County.  In answer to the organization, the proposed bylaws specifically states that the sole member is Duchesne County, there is no other stock, and nobody but Duchesne County can have a position in the corporation. 

In my consideration to take the position that I am taking, relative to the 501(c)(3) issue, the areas where I looked to are:  (1) The Board’s opinion (2) What people think about the way the hospital is be operated and (3) The vote was taken by the Board and was unanimous to move to a 501(C)(3). 

The area of liability, I think, has been one of the concerns the County has had for quite a long time.   What is the liability that the County has?   I think that the liability issue will be greatly reduced from where it is now.  I don’t know that I am convinced that the County will be completely withdrawn or removed from the liability issue.  I suppose that we will find that out at some point in time.  We are told by legal opinion that this does remove the County from the liability issue.

 I think that as we move into the future, we will see a lot of movement by legislation both Nationally and State legislatures, relative to medical care.  Whether it’s Medicare or Medicaid or some other issue that has to do with legislation, we don’t know where that is going (we haven’t in the past and we won’t in the future).   I do believe that the hospital needs the ability to be a good hospital that it can make decisions relative to the climate of the community, State and the nation.  I think that by going to a 501(c)(3) it actually places the County and the hospital into a position that it has probably assumed in the past to some degree.  I think the hospital needs to have the versatility to respond to circumstances that may come up and of course those responsibilities will lie primarily with the administration and the Board of Trustees.  The County Commission has retained (in the proposed bylaws) that only by the County Commissioners permission can any particular sizable business venture be approved.    Consideration to sell the properties has to be approved by the County Commission also. I don’t see us losing anything, but we are placing ourselves in a more versatile position where we can meet the needs of the people and respond to circumstances that may come.  After considering this for six months or so I think it is the proper thing for us to do.  And I think the people of the County will benefit from it, therefore, Commissioner Thayne I call for a vote.  

Sue Coleman: If you are a member of the Hospital Board should you be voting. 

Commissioners:  yes

Roll Call Vote:  Commissioner Ross & Commissioner Kappen Voting Aye Commissioner Thayne Voting Nay.

Department of Wildlife Resources – Walt Donaldson
Mr. Donaldson presented the Commission with a check for Payment in Lieu of Taxes in the amount of $38,338.29.  Commissioner Ross asked Walt about legislature being proposed to increase the amount of PILT payment from 50 cents to 56 cents.  Mr. Donaldson was not aware of the legislation.  The Commission supports any legislation to increase the payments of PILT monies.

Beer License Application by Kim Bastain for Uintah Cutter Association.  This application has been reviewed by the Sheriffs Office.  Motion:  Commissioner Ross motioned to approve the Beer License Application for Uintah Cutter Association Commissioner Kappen second, the motion carried.  Roll Call Vote:  All Commissioner Voting Aye.

Clarification of Duchesne County Deputy Attorney Contract
AGREEMENT FOR LEGAL SERVICES

THIS AGREEMENT entered into by and between Duchesne County, a political subdivision of the State of Utah, hereinafter referred to as ACounty@, and Roland Uresk, P.C., 47 North 200 East, Roosevelt, Utah 84066, hereinafter referred to as Attorney.

RECITALS
WHEREAS Duchesne County desires to engage the services of a Deputy County Attorney, and

WHEREAS Roland Uresk, P.C. is an attorney licensed to practice law in the State of Utah, and

IN consideration of the performance of services by the attorney as set forth hereinafter and the payment of compensation for said services by the County as set forth herein, the parties hereby agree as follows:

SECTION I TERM OF AGREEMENT
This agreement shall take effect on January 1, 2000 and shall continue in operation through December 31, 2000 and shall renew annually thereafter, subject to the availability of funding and the right of either party to terminate this agreement without cause by giving notice to the other party at least thirty (30) days prior to the end of the calendar year.  In the absence of such notice, this agreement shall continue after expiration for an additional one (1) year period upon the same terms and conditions.

SECTION II CONTRACTED SERVICES
Attorney hereby agrees to perform and handle all of the following matters for Duchesne County as  Deputy Duchesne County Attorney:  Criminal prosecutions involving juvenile or adult defendants handled through the Juvenile court system, Criminal prosecutions handled through the Justice Courts of Duchesne County, to wit: The West Side Precinct and the East Side Precinct, All prosecutions of administrative enforcement through the justice courts of Duchesne County or the District Curt as needed, Provide consultation and services regarding all civil matters affecting the County or which the County may have an interest, Provide administrative services in regard to the above-titled duties in the nature of word processing and records keeping

SECTION III COMPENSATION
County agrees to pay Attorney for the aforesaid services the sum of Eighty Thousand Dollars ($80,000.00) per year, together with reimbursing any expenses for travel, County business or training outside of Duchesne County,  provided said expenses are preapproved by the County.  The County, in addition, will pay all membership fees for Attorney to belong to the County Attorney=s Association (SWAP),and for any bond, if any, required to hold the office of deputy county attorney.  Compensation shall be paid at the rate of Six Thousand Dollars ($6,000.00) per month on or before the last day of each month commending January 1, 2000 and concluding November, 2000.  For the month of December, 2000 the sum shall be Fourteen Thousand Dollars ($14,000.00).

SECTION IV TERMINATION
Each party shall have the right to terminate this agreement upon giving the other party ninety (90) days in advance written notice of their intent to terminate the contract. In the event of early termination of the contract the final payment shall be adjusted to reflect those monies due and owing on a pro-rated basis throughout the year on the full balance of the contract.

SECTION V CONFLICT OF INTEREST
Attorney agrees during the term of this agreement to not in any manner consult, advise, counsel, or defend within this state any person charged with any crime, misdemeanor, or breach of any penal statute or ordinance.  Attorney agrees not to knowingly undertake or handle matters in conflict with his duties as Deputy Duchesne County Attorney and to disclose any conflicts which arise to the County Attorney.   Attorney agrees that if matters arise in Juvenile or Justice court for which a conflict of interest exists, to turn over said matters to the County Attorney and to perform equivalent work on behalf of the County or else cover District Court matters in which the County Attorney has a conflict if such conflict involves a serious time commitment from the County Attorney.

SECTION VI INDEPENDENT CONTRACTOR
In performing this agreement, Attorney is acting as an independent contractor and is not subject to or eligible for any other terms, conditions or benefits of employment otherwise applicable to employees of Duchesne County.

IN WITNESS WHEREOF the parties have executed this agreement on this ___ day of January, 2000.

The Commission reviewed the Agreement.

Mr. Holfeltz stated that this is illegal; Roland cannot be hired as an independent contractor.  Mr. Holfeltz cautioned to the Commission not to sign the agreement. 

Commissioner Thayne stated that the agreement was with the County Attorney Herb Gillespie and is paid by the Attorney budget not the Commissions and he believes the agreement to be legal.

Motion:  Commissioner Kappen motioned to approve the Agreement for Legal Services between Roland Uresk and Duchesne County, Commissioner Ross second, the motion carried.  Roll Call Vote:  All Commissioners Aye.

Discussion of Lease Agreement with Sandstar for Duchesne County Building at Roosevelt Industrial Park –
Commissioner Ross stated that the County offered to sell the building to Sandstar, David Anderson President of Sandstar is not interested at this time in purchasing the property, but is willing to pay a higher amount for rent.  The rent will be increased from $500.00 to $800.00 a month for a period of three (3) years. 

Motion:  Commissioner Ross motioned to approve the increase in rent for Sandstar Commissioner Kappen second, the motion carried.   Roll Call Vote:  All Commissioner Voting Aye.

ORDINANCE No. 00-159  AN ORDINANCE PROVIDING FOR DISASTER RESPONSE AND EMERGENCY MANAGEMENT  (refer to Clerk's office)

Motion:  Commissioner Ross motioned to adopt Ordinance 00-159 Commissioner Kappen second, the motion carried. Roll Call Vote:   All Commissioner Voting Aye.

Auditor's Office - Vouchers - Department Head Time Sheets - Tax Adjustments - Personnel Issues.  Diane Freston Clerk/Auditor presented the last batch of December 1999 vouchers # 67144 to # 67225 totaling $154,484.31 and a batch of January 2000 voucher #67040 to #67118 totaling $50,272.05  for approval.

Motion:  Commissioner Ross motioned to approve the Vouchers, Commissioner Kappen second, the motion carried.  Roll Call Vote:  All Commissioners Aye.

Tax Adjustments – Treasurer’s Office

Serial/Account	Year	Debit/Credit	Comment
000147839	1995	-$16.88	Exempt Property

Motion:  Commissioner Ross motioned to accept the tax adjustments presented by the Treasurer’s Office Commissioner Kappen second, the motion carried.  Roll Call Vote:  All Commissioner Voting Aye.

Tax Adjustments – Assessors Office

Serial/Account	Year	Debit/Credit	Comment
0064323	1999	-$27.01	Canceled Roll-back
0309405	1999	-$722.34	Canceled Roll-back

Motion:  Commissioner Kappen motioned to accept the tax adjustments presented by the Assessors Office, Commissioner Ross second, the motion carried.  Roll Call Vote:  All Commissioners Aye.

Adjournment:  3:07 PM 

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