MINUTES OF WELLS CITY COUNCIL MEETING OF MAY 13, 2014

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1 MINUTES OF WELLS CITY COUNCIL MEETING OF MAY 13, 2014 CALL TO ORDER Date: Tuesday, May 13, 2014 Time: 7:00 P.M. Place: Council Chambers, Wells City Hall 525 Sixth Street Wells, Nevada Type of Meeting: Regular Meeting of City of Wells Board of Councilmen Presiding Officer: Kenny Huff, Mayor ROLL CALL Present: Gretchen A. Hubert, Vice Mayor Kenny W. Huff, Mayor Layla M. Walz, Councilwoman Bruce W. Widmer, Councilman Absent: Quorum: Staff Present: ` Terry L. Madison, Councilman Yes Jolene M. Supp, City Manager Catherine Sue Smith, City Clerk Patti J. Zander, Utility Clerk PLEDGE OF ALLEGIANCE Upon the request of Mayor Huff, Utility Clerk Patti Zander led those present in the Pledge of Allegiance. APPROVAL OF MINUTES OF PREVIOUS MEETINGS Councilwoman Gretchen Hubert made a motion to table the approval of the minutes of the April 22, 2014 meeting due to the fact there was not a quorum of those present who had attended this meeting. Councilwoman Layla Walz seconded the motion and the vote was unanimous. KIMBERLY OWENS TO ADDRESS THE BOARD CONCERNING OFFER FOR HEAVY INDUSTRIAL PARK LAND AND POSSIBLE ACTION TO PROCEED WITH APPRAISAL 1

2 Kimberly Owens was attending the meeting on behalf of Developer Gary Pinkston, President of Meridian Pacific, Ltd. Pinkston is interested in a parcel in the Heavy Industrial Park on which he would construct a Frack Water Depot and would provide construction water for entities like Noble Energy. Owens needs to get approval from the Council so then the City can move forward in getting an appraisal of the parcel. The Council had a copy of the signed agreement from Pinkston, showing how serious he is in developing this property. Pinkston is asking for a Will Serve Letter guaranteeing delivery of up to 8 million barrels of water annually at a price of $.05/barrel. Councilwoman Hubert asked if we would be able to meet this demand. Manager Supp replied that it would probably not be a problem as this property does have its own well. Pinkston would like to lease the parcel for two years possibly longer, with an option payment of $5,000 and monthly payments of $2,000 thereafter. This would not be a long term project, possibly five or ten years and respond accordingly. Pinkston wanted this to commence on May 1, 2014 and extend until March 1, 2015 but this could change after the appraisal is done, which could take at least a month. Owens stated there are no commercial appraisers in Elko, they need to come from the Reno area. Manager Supp responded the City has used a local realtor. Mayor Huff asked Public Works Director, Jason Pengelly if providing the water would be possible. Pengelly stated he had some work to do on the Heavy Industrial water system but didn t see it being a problem. Vice Mayor Hubert was concerned with how this would affect our infrastructure and ability to continue to provide water to our existing citizens/users. Manager Supp explained the City has two water rights at the Heavy Industrial Park. Supp further stated that it should be able to pump 830 gallons per minute (gpm), not all the time. Supp has also talked with Tom Ballew of High Desert Engineering and it was his opinion that the system could handle this. Supp visited with Pinkston and asked him what happens if the system goes down. Pinkston s reply was things happen and you have to live with it. Pinkston is from a rural area and is very aware of possible constraints. Vice Mayor Hubert asked who would bear the costs incurred in maintaining the well and infrastructure. Supp stated we need to get the appraisal done prior to entering into an agreement. Councilwoman Walz asked if this would get the City out of the construction water business. Supp replied with probably not. Supp continued that we may not be able to issue two will serve letters. The City would not be able to serve two entities with that type of demand. Pengelly stated he would like to see how Meridian Pacific s system is hooked up. David Fonua, Property Manager for Meridian Pacific was also present and explained how it is tied together, and showed Pengelly pictures he had of their North Dakota system. Pinkston has a similar facility in Dore, North Dakota to service the oil industry in that area. Fonua stated Pinkston is a multifaceted developer with plenty of resources. He explained that being in a rural area, Pinkston is willing to purchase extra pumps and other parts so they are available immediately when needed. Fonua & Pengelly will get together to discuss this project. Vice Mayor Hubert feels it would be a definite benefit to the City but would like to get some 2

3 technical questions answered regarding infrastructure demands. Councilwoman Walz asked if the reason the City could not issue two will serve letters, was because the water was not there. Supp indicated the water is there but we would need more storage tanks and pumps for delivery. The system was not designed to pump that much. Supp stated this parcel had been used by Ruby Pipeline and there was an appraisal done on it at that time so it might not take a long time to update. Vice Mayor Hubert voiced concern about servicing our existing customers while still promoting economic development. Attorney Bob Goicoechea will draft the agreement once the appraisal is obtained. Councilwoman Hubert made a motion to proceed with the appraisal. Councilwoman Walz seconded the motion and it passed unanimously. CITIZENS TO ADDRESS THE COUNCIL Joe Smith was at the meeting to complain about not being able to get any information out of the City. City Manager Supp informed Smith he could come talk to her. Smith replied that he had talked to her and got nowhere. Smith also wanted to know who the Code Enforcement Officer was going to be. Supp stated that the Elko County Sheriff Department will be enforcing the code. Cindy Moschetti had a question regarding the previous agenda item. Moschetti wanted to know what the Heavy Industrial property was zoned and if the pump goes down, how it would affect the community. Supp stated it is zoned Heavy Industrial and because it has its own well, it would have little impact on the community. Supp also mentioned we have the well at the Rodeo Grounds, Well #2, the Chariot Track Well, that are not at capacity and they could be used if needed. On behalf of Wells Rural Electric Company, Layla Walz presented a capital credit check in the amount of $2, to the City. CONTINUED DISCUSSION CONCERNING POTENTIAL CHANGES IN BUSINESS LICENSE CODE AND DIRECTION TO STAFF Mayor Huff stated this code has a lot of gray area and we need to start fine tuning it as it is the oldest code. It was brought up that maybe a work session should be held for this. City Clerk Sue Smith did inform the Council that all business licenses need to be renewed July 1 st so the first reading of the amended business ordinances would need to be done at the first council meeting in June and the second reading at the second meeting in June for the changes to be in place by July 1 st. Chamber President Yvonne Stuart stated she felt this is part of the Chamber s business because it is impacting businesses. Mayor Huff stated we will do what is best for the City of Wells and the citizens. Stuart would like to have some of the local businesses represented at this work session. Clerk Smith did mention the mandatory budget hearing next Tuesday, May 20 th and suggested a work session could be held before the budget hearing and 3

4 then reconvened after the hearing, if needed. It was decided to meet at 4:00 p.m. on May 20, 2014 before the budget hearing. Smith continued with the largest issues are the lack of service classifications; the fees need to come out of the ordinance and be put in resolution form; change in list of fees to annually instead of quarterly; the application fee; more clarification on transient merchants and a reputable business clause added by Bob Goicoechea. Councilman Bruce Widmer would like to see the late fees clarified as they are very outdated. DISCUSSION AND POSSIBLE ACTION TO ENTER INTO AGREEMENT FOR ELECTRICAL SERVICE AND LINE EXTENSION WITH WELLS RURAL ELECTRIC COMPANY AT 451 INDUSTRIAL ROAD (TRANSFER STATION SITE) The City has been provided with a Line Extension Agreement to install the service at the Transfer Station. Wayne Baron had the service removed when he left. The power is needed to provide power and air conditioning to the employee who has to sit out there all day. Vice Mayor Hubert feels this is necessary. Councilwoman Hubert made a motion to approve the Line Extension Agreement with Wells Rural Electric Company. Councilman Bruce Widmer seconded the motion and it passed unanimously. REVIEW OF APPLICATION FOR REVOCABLE RIGHT-OF-WAY PERMIT FROM ELKO COUNTY SCHOOL DISTRICT, RELATED DISCUSSION AND POSSIBLE ACTION TO ISSUE PERMIT The Elko County School District will be constructing a line down Lake Avenue to the storm drain at the intersection of Sixth Street and Lake Avenue to carry geothermal discharge water. Councilwoman Walz stated it was in the best interest of the City to allow this. Councilwoman Walz made a motion to approve the Revocable Right-of-Way Permit for the Elko County School District as described in the Application. Vice Mayor Hubert seconded the motion and it carried unanimously. REVIEW OF FEDERAL AVIATION ADMINISTRATION GRANT APPLICATION FOR MASTER PLAN, RELATED DISCUSSION AND POSSIBLE ACTION TO SUBMIT GRANT APPLICATION AND AUTHORIZE MAYOR TO SIGN APPLICATION AND RELATED CERTIFICATIONS. Supp stated there has not been an Airport Master Plan update since and there have been many changes at the airport. There is new aircraft coming in, a need for GPS and a map update which hasn t been done since Typically a Master Plan should be updated every seven to ten years. City Manager Supp stated the City is at the point of losing its Federal Aviation Administration (FAA) allotment if it is not used. This Application is for funds allocated to Wells four years ago. Vice Mayor Hubert stated it makes sense to update it. Councilwoman Walz stated that technology has changed drastically in the last thirty days let alone in the last several years. Vice Mayor Hubert made a motion to submit the grant application and authorize the Mayor to sign the application and related certifications. Councilwoman Walz seconded the motion and it passed unanimously. Councilman Widmer asked if the City can get grants in the 4

5 future. Manager Supp answered with we get an FAA grant allotment every year with a 10% match from the City. Kent Adkin representing Riedesel Engineering informed the next step in the process is an independent estimate by another engineer. CONSIDERATION OF REQUEST FOR ONE TIME SANCTION FOR MOTORCYLE RACE, RELATED DISCUSSION AND POSSIBLE ACTION TO APPROVE PAYMENT TO GREATER NEVADA ADVENTURE TOURING SOCIETY AROUND SILVER STATE Greater Nevada Adventure Touring Society Around Silver State (GNATSASS) is asking for a one time sanction of $ to get liability insurance to insure an event that includes Wells. Mayor Huff asked how many people and what type of draw this event would have. Manager Supp stated they are hoping for 80 occupants staying at Motel 6 that weekend. They have already booked the rooms. Supp further stated that we may be able to do a drawn down from the Elko County Recreation Fund for this. Mayor Huff inquired as to what was in that fund. Supp replied $17,000. Mayor Huff stated that if we can draw from the Elko County Recreation Fund, he doesn t have a problem with it and it would be good for Wells. The Council had a copy of the flyer for the two activities! The first ride is a 3 day dual sport ride the weekend after Labor Day. The second event is a 6 day event starting in Las Vegas on September 21, 2014 and ends in Reno September 26, Race Representative Bert Fox has also met with the Chamber and is bringing the Beach Boy Surfers Band for the weekend in Wells as a fundraiser for diabetes. Fox would also like to have campers be able to camp on the end of the soccer field like they do for car show. Supp said Fox would like to try and get them in one central location. Vice Mayor Hubert would like to see the group work with the RV Parks. This is on a much smaller scale than the car show. Councilwoman Walz would not like to compete with private enterprise but them all being able to be together at the park might be why they have chosen to do this here and if they can t, they might go elsewhere. Hubert was concerned about the maintenance and cleanup of the park. Supp stated she would get with the RV Park owners and see if they can get something worked out. Councilwoman Hubert made a motion to approve a one time sanction to GNATSASS, not to exceed $500. Councilwoman Walz seconded the motion and it passed unanimously. CLAIMS COMMITTEE REPORT AND POSSIBLE ACTION TO APPROVE FINANCIAL STATEMENTS Councilman Widmer made a motion to approve the Warrant Register dated May 13, 2014, in the amount of $46, Councilwoman Walz seconded the motion and it passed unanimously. COUNCILMEN S REPORTS Layla Walz stated that Wells Rural Electric Company is hosting an HVAC contractor s workshop on May 22,

6 Gretchen Hubert mentioned the baseball and softball teams are going to the divisionals in Virginia City in first and second place seats. Mayor Huff informed the Council of the passing of Citizen Wes Bowlen. Wes was a long time businessman who had done many things for the youth in the community and was the auctioneer for the FFA for the last thirty years. The announcement was made that there will be a Celebration of Life for Wes at the Chimney Rock Golf Course on Saturday, May 17, 2014 from 4 to 6 P.M. STAFF REPORTS Manager Supp mentioned the Small Business Toolbox workshop being held at the Indian Colony on Thursday, May 15, George Kleeb will be there and it will be very informative with new options in banking. Supp stated she has been contacted by a third party to explore a natural gas line coming into Wells. City Clerk Sue Smith and Supp met with representatives from McMullen Insurance Agency from Elko regarding health insurance. There are many changes due to the Affordable Health Care Act. Our current provider is wanting to increase rates 43%. McMullen has an option similar to what we have now with benefit reductions and the other option would not be in the budget. There are Health Savings Account options as well as other alternatives. Supp stated we might have to put more money in the budget for health insurance. Supp added that Glen Palmer will be here tomorrow working with the Society for the Preservation of Western Heritage. Also, Seventh Street is no longer what it was with the removal of earthquake damaged buildings. The whole transition to the landfill went smooth. The gates had to be kept locked to keep the public out. Work is still being done regarding the Quilici building. Several permits were issued last week, progress was made on the Petro lube shop but it is not permitted yet. There is a house going in on Fourth and Shoshone and the scales at the truck stops are progressing. City Clerk Smith reported that Supp and Smith have continued work on the website and it is nearer being ready to launch. Staff is also going through the personnel policy to make revisions. ADJOURNMENT Councilwoman Layla Walz made a motion to adjourn the meeting with Gretchen Hubert providing the second. Mayor Huff adjourned the meeting at 8:20 P.M. 6

7 KENNY W. HUFF, Mayor ATTEST: CATHERINE SUE SMITH, City Clerk BY: PATTI J. ZANDER, Utility Clerk 7

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