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Show Mayors Give Okay To Negotiate CPN Purchase Mayors from throughout Southern Utah voted to have a negotiating team from the Southwest Utah Power Federation begin talks with CP- National for the possible purchase of their electrical system. Federation attorney George Fadel called the decision a "pat on the back" and not a legally binding act. He said that anyone could negotiate with CPN. The meeting was held last Sat. at 9 a.m. in the Cedar City offices. Objections While Cedar City recently decided to join a power agency which is being formed, a motion to join the federation was not seconded at their last council meeting. Mayor Jack Sawyers said, "Cedar City is not prepared to join the federation at this time. We represent about 40 percent of the financial burden and feel that we need a weighted vote on the federation's board... I don't represent the entire council on this issue." Cedar City would be one of nine members on the federation's board as that board is now organized. Sawyers also objected to the size of the board saying that it is too large. Fadel said that a weighted vote would be possible but that Cedar City would carry additional weight on the board just through the contracting procedures of the Power Agency. He felt that the federation's board would have to be responsible to the large financial obligation of Cedar City. The power agency would handle the funding for the possible purchase of the CPN electrical system. Fadel also said that the agency would be responsible for deciding each municipality's financial obligation for its share of the CPN system. The agency would "dovetail" its responsibilities with the federation's by contracting for the municipalities' power and this role of the power agency would have a large impact on -the federation's decisions, according to Fadel. The federation plans to wield power and seek additional power sources. Councilwoman Barbara Starr said, "I am the one person out of five on the Cedar City Council who feels that we need to join the federation." Staarr also said that she felt that three of the five council members were committed to a municipal power system. Councilmen Jack Whiting and Harold Shirley were also present at the meeting. Saves Seat Federation board chairman Carl Palmer said that a seat will be kept open for Cedar City on the board and that they can choose any representative represen-tative that they want. He also said that the federation had organized to represent all groups including the Rural Electric Associations and pumpers. He pointed out that the unincorporated areas will only be represented on the federation's board. Municipalities will be represented on the federation's board and the agency's board since only incoporated areas can bond under state law. Parowan Mayor James Robinson questioned Fadel on what would happen if Cedar City is a member of the power agency but not a member of the federation. Fadel said,"There are lots of advantages for Cedar City to join the federation." He also said that it would be a minus for the federation if Cedar City would not contract with them. He said that if Cedar City were not a member of the federation that they would most like likely not be given the preferential advantages that members mem-bers would have. He also said that if Cedar City negotiates separately to . purchase its part of the CPN system that it would probably cost them more than joining with the federation in purchasing the entire system. Sawyers said, "We still have strong concerns about the federation which concern a weighted vote and not personalities-we have put as much money into municipal power as others.. .under the present structure Cedar City cannot join." Document The mayors also reviewed changes made by Fadel in the document to form a power agency. Forming such an agency is possible through the Interlocal Cooperative Act. Fadel answered question con- Continuedon Page 3 ,x Federation to Negotiate CPN Purchase Continued from FrontPage cerning the proposed organization of the agency which can be formed on Feb. 15, according to the agreement. He had changed the originally suggested three permanent members on the board to two. These two positions would be held by representatives of the two municipalities with the largest financial responsibilities while the other board member positions would be rotated among the other municipalities. Fadel said that judging on his experience in working with the Intermountain Power Agency that bonding companies will not work with boards which have I , more than seven members. He also said vthat IPA often has difficulty in getting a quorum even with a board limited to seven. Fadel said that the first five years will be the most critical for the agency, the time when most of the agency's major decisions will be made. Fadel asked that each municipality return a signed and xeroxed copy of the agency agreement to his office that the originals be filed with the respective County Clerk or City Recorder. Fadel said that he would also arrange for the publication of the document in all three counties which are involved. While the publication is not required by law.a Fadel said that if no one complains during a 30 day period after publication that no one has the right to challenge the organization of the agency afterwards. |