The City Council has approved an agreement that establishes controls and restrictions on a $20,000 grant to the Utah Pageant of the Arts.

The matching-fund grant was authorized by the council in a previous meeting. In order to receive the grant, the pageant must comply with a number of stipulations listed in the agreement.Those stipulations include use of the grant money solely for the 1989 production, proof of receipt and expenditure of equal matching funds from outside sources prior to release of any grant money and maintenance of complete and accurate accounting records by the pageant.

Also, the agreement requires the pageant to comply with all terms and provisions of its articles of incorporation and bylaws, and to be fully staffed as a corporate entity.

Fully staffed, according to the pageant's original bylaws, includes a board of at least three members.

The city finance committee will monitor the grant account rather than placing the funds in an escrow account.

While the agreement specifies that the grant from the city cannot be used to repay past debts, the pageant can use any matching funds it raises and money from ticket sales for debt repayment. The pageant currently has outstanding debts of about $100,000.

Members of the pageant's executive committee said none of last year's pageant production staff have received payment for services rendered.

The agreement also calls for the pageant to present performances exclusively within the city limits of American Fork. Councilman Don Hampton told the council the pageant's executive committee was concerned about being unable to present special performances outside of American Fork and beyond the pageant's regular run. The council agreed to review requests to stage performances outside the city on an individual basis.

Later in the council meeting, Hampton said one executive committee member had resigned in a pageant board meeting held prior to the council meeting.

In fact, two members of the executive committee resigned during that meeting. Marilyn Harley told the executive committee that she was resigning after being verbally harassed on two separate occasions, once by Ron Tiffany, pageant president and once by Dave Brockbank, pageant artistic director. Harley called for the resignation of Tiffany and Brockbank. In a letter passed out to committee members, Harley listed concerns about fund-raising being given priority over the production, and scrapping of a set of bylaws (drafted by Harley) and presented to the council on Oct. 11.

The executive committee has agreed to retain the pageant's original bylaws, with minor modifications, subject to approval of the pageant's 17-member board of trustees and the pageant's attorney. Modifications to the bylaws include addition of wording allowing creation of an executive committee and a provision for a procedure for removal of members of the executive committee and board of trustees.

"We don't need restrictive bylaws," said committee member Ron Cook. "We need bylaws that are flexible and allow creativity of those serving."

Cook said the bylaws as revised place primary responsibility for operation of the pageant with the board of trustees, and allow the president to do what needs to be done to run the pageant.

Harley charged that the bylaws as revised give the pageant president unlimited and unchecked power to run the pageant.

Linda Heaps, who had served on the executive committee for the past year, said she was resigning because of the haphazard operation of the board, the lack of unity in decision-making by the board and unseemly conduct by Tiffany and Brockbank.