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Show Farowan power news good? expressed among council members regarding the terms of the lease. In other business, the council Heard a plea from the Chamber of Commerce to support the Valley View Medical Center Clinic. Intermountain Health Care, owner of the facility, has indicated an intent to close the clinic, located in the Iron County Courthouse, Aug. 1, unless it starts to pay its own way. Council members and citizens were encouraged to attend a public hearing on the matter tonight at 7:30 p.m. in the Parowan High School Auditorium. Approved allowing credit to Caudelf Orton toward culinary water lees in exchange lor Parowan City receiving irrigation water from Orton. -- Passed an ordinance establishing a race track committee, establishing the duties and purpose of the committee, and providing lor the initiation of fees for use of the race track facilities. Actual fees were not established. This will need to be done by a separate resolution, according to Phil Eves, city attorney. Fees collected will be used to make improvements at the track, Pendleton said. - Heard reports of citizen complaints about horse corrals being constructed east of main street near the north 1-15 interchange. That area is in a "CG I" (commercial) zone. Attorney Eves will review the zoning ordinance and give an opinion on whether or not the corrals violate the ordinance. Was informed that the Parowan Lions Club intends to build a barbeque pit and dutch oven cooking areas near the pavilion at the Canyon Park. mills per kilowatt hour. Pa rowan's two hydroelectric power plants are producing well now, according ac-cording to Wood. "We were generating about 250 kilowatts at Paragonah, but more water is scheduled to be released from the Paragonah Reservoir, and this will increase our output. Also the increased reservoir storage will keep our generation from dropping off so much late in the summer. The Parowan hydro plant is now generating about 400 kilowatts." In another matter the council ap- ' proved the exchange of two parcels of property at the municipal airport, pending no unforeseen problems, to solve potential airport access problems. About seven years ago, the current airport access road was built on private property owned by Dick Glantz and Hurt Nichols. Apparently a verbal agreement to deed the road to Parowan City in exchange of another city property was never carried out. On a motion by councilwoman Frankie Lou Bentley, an appraisal of the 66-foot roadway and a parcel of property inside the airport fence just east of a warehouse building partly owned by Nichols will be made. If the two are determined to be of comparable value, deeds will be exchanged. Glantz also informed the council of his written notification to the city renewing, for a 10-year period, his lease of the airport. The lease agreement was drawn 10 years ago, with provisions lor Glantz to renew, under the same basic terms, the lease for two consecutive 10-year periods. There has been some dissatisfaction PAROWAN The news regarding electric rates coming from last week's Parowan City Council meeting was mostly but not completely good. Mayor John C. Pendleton reported to the council that a 15 percent surcharge on Parowan City electric bills has been removed, and that bills which will be received this week will not include the surcharge. It was also reported, however, that John Merrill, Intermountain Consumer Power Association rate analyst, is working on a new rate schedule for customers of the city's municipal power system. The new rate schedule will take into consideration Parowan's share of the financing of the purchase of a share of the Hunter II Power Plant in Emery County. The 15 percent surcharge was added to power bills in January to allow the city to meet its obligation in the purchase pur-chase Hunter II. Since January, the group of municipal systems buying into the plant (known as UAMPS, Utah Associated Municipal Power Systems) has completed the sale of bonds to lessen the cost of financing the purchase. pur-chase. "The bonds for the $66 million UAMPS share of the plant have been sold for an average interest rate of just over 12.5 percent," Gayle Wood, councilman in charge of the electrical department reported. "We are very pleased with the sale and the interest rate. There were some projections that we would have to pay in the neighborhood neigh-borhood of 14 percent interest on the bonds." Mayor Pendleton anticipates that the new rate schedule will be completed and approved in time to be in effect for billings which will be sent out the first week of July. "We have no real idea whether the rate structure will increase power costs or not. All factors in our situation will be included in the study and the recommendation." Councilman Wood reported that the rate charged for Colorado River Storage Project (CRSP) electricity purchased by Parowan will increase this fall, probably by 25 percent. "That isn't as bad as it sounds," Wood said. "We pay a small amount for CRSP power, so while the percentage may sound high, in dollars the increase won't really be that much." Parowan currently pays 7.6 mills per kilowatt hour for CRSP electrical energy. The city also pays $1,655 per kilowatt of demand for CRSP power. By comparison, power from Hunter II purchased through UAMPS costs 23.6 |