MINUTES OF WELLS CITY COUNCIL MEETING OF JANUARY 12, 2021
CALL TO ORDER
Date: Tuesday, January 12, 2021
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: Layla M. Walz, Mayor
ROLL CALL
Present: Layla M. Walz, Mayor
Robert Woolsey, Vice-Mayor
Laura Moore-DelRio, Councilwoman Jonathan Goolsby, Councilman Chris Micheli, Councilman
Absent: None
Quorum: Yes
Staff Present: Sherry Justus, Deputy Clerk
Jason Pengelly, Public Works Director Tony Prado, Public Works
Jolene M. Supp, City Manager/Clerk Patti Zander, Deputy Clerk
PLEDGE OF ALLEGIANCE
Mayor Walz led everyone in the Pledge of Allegiance.
APPROVAL OF MINUTES OF PREVIOUS MEETINGS
Woolsey made a motion to approve meeting minutes dated December 22, 2020. DelRio provided the second and motion passed unanimously.
CITIZENS TO ADDRESS THE COUNCIL
Resident Tom Patterson wanted to know why the dump wasn’t open at least twice a month. Patterson felt the City had enough employees that they should be able to man the dump for three or four hours a day twice a month. Patterson also stated he had heard that the City was looking at putting in a creosote plant and asked if that was true. Supp stated
it was a railroad tie plant. Patterson stated he hoped the City would do enough to contain the contaminants that come from that so it doesn’t get in the City aquifer. The City has good water and would hate to see it tainted. Supp added that item was going to be next on the agenda.
Walz stated that item ten would be next on the agenda as that discussion could affect the action on item six.
REVIEW AND DISCUSSION OF BETTER CITY REPORT AND FINDINGS ON AMERITIES, INC. PUBLIC BUSINESS OPERATIONS
Supp thought it was important to have a third party evaluate this company since this company works with chemicals and creosote. Supp continued that all of the water is recycled. There would be a lined holding pond at the facility to treat the water before it goes into the sewer pond. The facility in Hope, Arkansas has no issues but the facility in The Dalles, Oregon is not well liked and is an old plant. Supp is hoping that the
technology that was used in Hope, Arkansas would be the same that would be brought to Wells. Upgrades have been done in Oregon but have not heard if those upgrades have satisfied those living around that plant. Naphthalene is one of the chemicals used in that process. This company has developed a process that uses less of this chemical in the process. AmeriTies wants to be on the east side of town and downwind from town. The wind direction has been the challenge in Oregon as well as the wind blowing the smell to town. AmeriTies would provide fifty jobs at this facility.
Kinder Morgan has always said they would bring natural gas into the community if the City would find them an anchor customer. AmeriTies has given Supp their consumption and Kinder Morgan is working through the numbers now. AmeriTies would use 250 dekatherms a day of natural gas, 2,000 to 5,000 amps of electricity and a maximum of 100 gallons of water an hour. CDBG has looked at this and is eager to see the numbers. In terms of infrastructure, natural gas is still the wild card. In terms of environmental work, AmeriTies will have to have a water permit, air quality permit and an emissions permit all issued through the State of Nevada. Walz added that this company is excited about Wells and did not ask what Wells can do for them. Their concerns are how far away they are from the community, which way the wind blows, where the rail is, how much property they can have, where can they get employees and what is the average wage. AmeriTies wants to provide competitive jobs in the community and be a good fit. Supp added that the entry level wage was going to be $20 an hour. The labor force could be a challenge. AmeriTies felt the decision would need to be made in the next three months to be in business two years from now. There would be 134 million dollars of capital development and would be a long term development.
Jackie McDonald stated the wind doesn’t always blow east to west and is afraid that the smell will linger. McDonald doesn’t think Wells should give up clean air for any business. McDonald knows this would be a lucrative thing for Wells but at what cost to the citizens. McDonald continued that one of the most beautiful things here is the sky
and the clean air and does not think it should be jeopardized. DelRio had a lot of the same concerns. Supp added that AmeriTies qualified for a minor source air permit which would be different from what Valmy is producing. DelRio is still concerned with what the CDC had to say in their report from The Dalles. There are cancer causing agents which may be minor but all will be living in that toxicity. The report provided stated the odor is not harmful regarding immediate and short term impacts with only slight risks of cancer if exposed for a lifetime. Walz added that the report continues to say as few as two in 100,000 cases of lifetime exposure not a mile away.
Cindy Moschetti supports what McDonald and DelRio are saying. Moschetti is concerned about the carcinogens and the air quality. Moschetti is tired of people rationalizing unhealthy air as just an excuse of one in 100,000. Moschetti thinks those times should be behind us and has deep concerns about this. Walz stated this is not an action item and was just the findings of the report. Walz thought it was favorable. Amy Brough is concerned as well and already smells the odor from the marijuana facility. Brough agrees that the wind doesn’t always blow the right direction and is concerned with her property value and doesn’t want or need it to go down. Brough has lived here all her life, wants to be outside and doesn’t want to smell the odor that will come with this business. When people burn ties, you can smell it and it is not a pleasant smell. Supp stated that if there is appetite to look further at this, maybe a tour can be taken of one of the plants. Supp continued that we are just looking at it from the paper standpoint. DelRio stated on paper, the concept is exciting, the aspects at what they can bring to Wells is super exciting but DelRio is an outdoors person. The City is currently doing a feasibility study on the Wood Hill trails. When the wind blows that way, people won’t want to ride because of the smell. DelRio thinks about all the things she does outdoors and what that would do to her if she had to deal with that chemical smell all day long. DelRio knows what her husband smells like when he comes home from working on the railroad and it is not pleasant and would not like to have to deal with that on a daily basis. DelRio would like to see and smell firsthand what it is to be near there.
Supp asked if DelRio’s husband was at risk of carcinogenic activity and DelRio stated he is at super high risk. Employees have annual physicals and are tested because they are high risk. DelRio gets monthly letters from the railroad about the risks taken every day with the carcinogens and it is not just with the railroad ties. DelRio added that in one of the reports she read, AmeriTies does pretty much the same testing of their employees as the railroad does. Micheli stated his concern is not only the air quality but the chemicals being used. If the treatment of the water in the pond is not done properly when it goes into the wastewater, will the City end up with another poly carb that was up north where they dump it in the ground and the City ends up spending four or five years cleaning it up. Supp thought the Division of Environmental Protection today, compared to what it was back then are very different. Supp has gone through the process with Pengelly as to what the water is like when it gets into our sewer ponds. Walz added that this company was willing to come out and answer questions. Walz added maybe this shouldn’t be taken off the table yet as there are concerns and the community has concerns that need to be mitigated before moving on. Woolsey thought it would be good for them to answer
questions and concerns to the community. Supp stated that Jeff Thompson might be able to have time in February and could possibly be at the first meeting in February. CONTINUED DISCUSSION ON CITY OF WELLS MANAGER POSITION. INTERVIEW WITH CANDIDATE STEVE RODRIGUEZ INCLUDING
QUESTIONS AND DISCUSSION FROM THE BOARD OF COUNCIL. REVIEW OF JOLENE SUPP’S TRANSITIONAL PROPOSAL TO STAY WITH THE CITY OF WELLS FOR ONE YEAR. REVIEW OF THE PROPOSED
ORGANIZATIONAL CHART AND CAPITAL IMPROVEMENT PLAN.
QUESTIONS AND DISCUSSION ON THE PROPOSAL. REVIEW OF ALL THE CANDIDATES, POSSIBLE ACTION TO APPROVE OR DENY ONE OF THE CANDIDATES/PROPOSALS FOR CITY MANAGER. DISCUSSION OF PROS AND CONS FOR EACH AND OR CONTINUED DISCUSSION OF COURSE OF ACTION FOR FURTHER POSTING OF POSITION AND ACTION TO SEARCH FOR MORE CANDIDATES
Steve Rodriguez came to the podium and thanked the Council for having him. Council members took turns asking Rodriguez questions. Walz asked Rodriguez how he would balance his business in Boise with the City Manager job. Rodriguez stated he has started an exit strategy and would like to bring his deli shop to Wells. Walz asked how long he would stay on as City Manager. Rodriguez wants to do it for a long time because goals and visions won't happen overnight and wants to continue to make this place awesome. Supp’s proposal for a transition was discussed. Supp wanted the Board to have options. Supp feels the Board needs to continue on with capital improvement or get a new capital improvement list. The property for the housing has been cleared off. No bids were received from developers on the housing proposal. Housing, quality of life and the Wood Hills Trail development are very important.
Supps proposal is to work 100% for quarter one, 75% for quarter two and phase out over a year or less. Supp also provided an organizational chart as well. On the old
organizational chart, the pool used to be under the City Clerk and that has been moved under Public Works with the rest of recreation. Supp added that a new City Clerk will need to be appointed as Supp is currently in that position. Supp would like that position to be filled in house, if anyone is interested and should submit a resume.
Natural gas is important to growth of the City. There could be federal funding, private, state and local funding. It could be a twenty million dollar project and if there were concessions from the PUC, could be a five million dollar project. Supp has been asked if Wells Propane can operate natural gas. Supp stated the code is still there and has never been repealed. That code was put in place over twenty five years ago and don’t know if Wells Propane still wants to do it. Supp added that the well at the Heavy Industrial Park has been compromised and Pengelly will elaborate on that later.
DelRio asked Supp if she could coach Rodriguez through the AmeriTies project if that is the way the Board decides to go. Supp stated it would be possible to work with
Rodriguez or Pengelly through this project. DelRio added that she is confused because Pengelly wrote the Board a formal letter saying he didn’t want the position of City Manager but is now back in and would like to hear from Pengelly. Pengelly stated that was part of the plan with the way Supp wanted to transition out with Amerities. Supp asked Pengelly to come on as Assistant City Manager and continue on as they have been working through RDA, Main Street, and Better City. Pengelly works side by side with Supp every day. They work well together and this was just another option for the Board. Pengelly thinks Rodriguez would be good for the job as well and will work well with whomever is in charge. Pengelly would continue to do the Public Works job as well. Pengelly thinks there needs to be some type of decision tonight and DelRio agreed. Pengelly said his feelings would not be hurt. DelRio continued that Pengelly wrote a nice letter and the Board never heard from him so wanted the opportunity to talk to him. Pengelly said he will always be here and do what the City needs him to do.
DelRio feels a decision needs to be made tonight and can’t string this out any longer. DelRio would like to see Rodriguez hired and Supp mentor him to help him grow and become as strong as Supp is as a City Manager. DelRio feels Rodriguez is willing to put forth the work, lives here, is knowledgeable and willing to research. Woolsey likes the idea of phasing the process which will make it a smoother and slower transition. DelRio wanted to know if Supp was looking at the phasing being 12 months. Walz doesn’t doubt or question Rodriguez’s commitment to the community. Walz does not doubt his
qualifications or ability to learn but has had people approach her with concerns and does not want to put him in a situation where he is set up for failure because he doesn’t have the community support. Woolsey added that he has had people the opposite way. It was noted that Rodriguez has not seen the City Manager contract. Supp added that in her 22 years, she has had two evaluations and stated the Board needs to do better than that. Woolsey stated that was the reason for wanting to see the organizational chart to have a better idea of how things worked. DelRio thought everyone should have a yearly evaluation and the Board would evaluate the City Manager. DelRio thought there needed to be discussion on the financial side of Supp phasing out and what would be within budget for the City. Supp thinks quarter three and four could drop off the table. Walz thinks that what Supp has proposed financially will not break the budget or is out of line. A commitment to six months could be made and reevaluate at that time as to if Supp is still needed. Supp stated the background check could take a while because the Sheriff’s Office is busy. DelRio suggested the phasing out of Supp won’t start until the
background check comes back on Rodriguez. Supp suggested she could start working with Rodriguez in between now and the time the background check comes back. DelRio made a motion to hire Steve Rodriguez for the position of City Manager pending him looking over the contract, for $85,000 a year with the contingency that Supp stay on for a minimum of six months with the option to extend and pending background check
approval. Woolsey provided the second and motion passed with Goolsby voting nay. SEE THE AMENDMENT/CORRECTION TO THE MEETING MINUTES FOR THIS ITEM IN THE MINUTES FOR 1/26/21.
CONTINUED DISCUSSION REGARDING ALSCO SERVICE AGREEMENT AND SERVICE AGREEMENT WITH VOGUE LINEN. POSSIBLE ACTION TO APPROVE OR DENY ALSCO SERVICE AGREEMENT
Pengelly stated that ALSCO’s price was $71.30 a week for uniforms and shop towels plus $6.28 for mats for the Library. Vogue didn’t have the mats on their quote but they did get their prices down. Pengelly recommends the City stay with Vogue. Pengelly continued that when the City receives the contract, it will need to be reviewed. Vogue also had a COLA 4% raise and Pengelly would like to try to lock it in at the 4%. DISCUSSION AND POSSIBLE ACTION TO APPROVE THE CORRECTION ACTION PLAN FROM THE FINDINGS OF THE 2020 AUDIT AND
AUTHORIZE STAFF TO SUBMIT TO DEPARTMENT OF TAXATION
Walz stated this is typical every year that the auditors come back with suggestions for the corrections. Supp added that the first item is something that needs to be watched and need to make sure the line item transfers are done ahead of time. Revenues are up in the recreation fund and expenses are down because the pool has been closed. Woolsey made a motion to authorize staff to submit the Department of Taxation changes. DelRio provided the second and motion passed unanimously.
DISCUSSION AND POSSIBLE ACTION TO AWARD BID FOR BUILDING DEVELOPMENT ON THE THREE CITY OWNED RESIDENTIAL LOTS. THERE WERE NO BIDS
Supp wanted this to be on record that there were no bids received. Woolsey asked if this was going to be re-opened for bid. Supp wants to create a way to incentivize this. It could just be a waiting game until there is demand but the demand is out there as there are not a lot of houses available. Supp talked to a developer who told Supp if she had a customer, they would be ready. Walz added that RNDC has a program to help with down payments and loans. Walz wondered how to get the low income people together with RNDC to get in their own homes. DelRio added that there has been a lot of information from RNDC available. It was suggested flyers be posted and Woolsey suggested flyers be given to employees and promoted by the Chamber. Walz added to make sure the flyers are also available in Spanish.
DISCUSSION AND POSSIBLE ACTION TO ADJUST PROPERTY TAX RATE FOR THE CITY OF WELLS AD VALOREM TO ABSORB THE AMOUNT GIVEN UP BY THE 75 CENTS PAY AS YOU GO ASSESSMENT
Walz began that Elko County is talking about going this direction. If the City of Wells is going to benefit, the City needs to be ahead of them. Supp added that at the November election, voters voted down the pay as you go for the school district which was
earmarked for capital improvement. Supp provided a copy of a tax bill for everyone to look at that shows the school capital pr. (projects) at .75. The City cannot, by law, go higher than 3.64 which is actually 3.66 because the state raised it for their benefit and
takes .02. The school is talking about having a special election on June 5, 2021 to try to change the voters mind.
The Chairman of the County Commission, John Karr, wanted the school to reduce the .75 so that Elko County could have a shot at that for Elko County roads and fire. Wendover and Carlin are already at their cap. Elko and Wells as well as the towns of Jackpot, Montello and Mountain City are not. Wells number is 3.4691 as opposed to 3.66 so there is a little bit of room. Supp also provided copies of the Nevada Revised Statutes. We, as local government, cannot raise the rate above 6% and the school districts .75 will not go away until 2022. If the City raises the rate up to the cap now, Wells would have to absorb the abatement to all of the current property owners. The only ones that would be affected would be new construction or someone that sold their home and it was
reassessed on that sale. The City doesn’t want to wait until 2023 if we think we want some of this money. The City will not be able to increase it due to the state law by any more than the 6% max.
Every year, the Elko County Treasurer calls and asks if the City would like to change our property tax. In 20 years it has been raised from .8605 to .9605. The last item on the tax bill that says Wells City is funding that comes here locally. Supp thinks the Board needs to think about this and get on Elko County’s website and listen to Cash Minor explain it as he did at the County Commission meeting. Supp also contacted Curtis Caulder. The City of Elko is not at their cap and Caulder has a representative from the Nevada
Taxpayers Association crunching the numbers. The taxpayers are not going to see a decrease. It is either going to go to Elko County or a portion to the school district. If the City of Wells choses to raise it, that will limit what Elko County can do. If Wells raises it before Elko County does, Wells will also have the option to reduce it at a later date. DelRio made a motion to adjust the property tax rate for the City of Wells from 3.4691 to 3.66 to absorb the .75 pay as you go from Elko County School District. Goolsby
provided the second and motion passed unanimously.
DISCUSSION AND POSSIBLE ACTION TO APPROVE APPOINTMENTS FOR THE CLAIMS COMMITTEE MEMBERS FOR THE NEXT TWO YEARS
THROUGH THE NEXT ELECTION
Woolsey made a motion to accept the appointments for the Claims Committee members for the next two years. DelRio provided the second and motion passed unanimously. CLAIMS COMMITTEE REPORT; ACTION TO APPROVE FINANCIAL STATEMENTS
DelRio made a motion to approve the Warrant Register dated January 1, 2021 through January 12, 2021 in the amount of $100,664.69. Woolsey provided the second and motion passed unanimously. DelRio made a motion to approve Warrant Register dated December 24, 2020 through December 31, 2020 in the amount of $35,711.87. Goolsby provided the second and motion passed unanimously. DelRio made a motion to approve
the check register dated December 1, 2020 through December 31, 2020 in the amount of $24,262.74. Woolsey provided the second and motion passed unanimously.
COUNCILMEN’S REPORTS
Woolsey wants to discuss, at a future meeting, the possibility of working with home owners on sidewalks. Woolsey stated he has no sidewalks at his house and would like to work with the City in a partnership to put in sidewalks. DelRio stated speaking of sidewalks, there were some citizens that had posted on the yard sale site about the City sidewalks not being shoveled and maintained during the winter. DelRio wondered if there was something that could be done to aid the city workers in getting the sidewalks cleared off, even if it is just the park sidewalks. Supp added that with COVID, the inmates are not allowed to come out and shovel snow like they have done in the past. Supp stated there is code that says the property owner is responsible. Walz added that the City of Wells installed sidewalks on Wells Avenue but the homeowner is expected to remove the snow on those sidewalks.
Micheli stated he is glad to see that the pool is back open. DelRio suggested this be advertised because most kids have free time. Supp added there is pretty strict protocol and social distancing. Woolsey stated that the kids are used to all of that.
Walz attended the quarterly WREC board meeting in December and requests were approved. Walz attended the Nevada Gold Mine quarterly community development committee where Walz was elected the committee chair person. NGM is looking for community development grants that are sustainable projects.
STAFF REPORTS
Supp began that one of those projects could be a reader board. Supp did a next dollar foundation request and Main Street has received some money. Supp thought about using the corridor plan to pick out some of the wagon wheels and pavers to do something on the east corner of City Hall and the Shell Crest Motel for a downtown project. A Main Street meeting needs to be held to get approval. The reader board would be good for communicating with a television option. Supp has talked to Lytle Signs who quoted $30,000 but Supp will be getting more quotes.
Supp spoke with Wood Rodgers this morning about extra CDBG funding Wood Rodgers hasn’t used. Supp suggested Wood Rodgers design the Redevelopment Agency as that was one of the grant requests coming up. CDBG has had requests for eight million dollars with only three million available. With CDBG having two extra rounds of COVID funding which allowed the City to get the grant for the new senior center, the work load for the two people who work on these grants had increased. CDBG plans on selecting five large grants and not twenty $100,000 grants because there in not the staff to administer it. This could be a good time to get the RDA road design done because the money is already allocated to us. Otherwise, it would have to be de-obligated. Supp spoke to the State about it who was fine with it.
The Senior Citizen Center grant plans are available to be reviewed if anyone is interested and are available on line as well. This has been advertised and Supp has extended the bid date opening to March 16, 2021 to give contractors enough time.
The Wood Hills Trail feasibility will be sent to everyone. Some of the possible partners have been laid out and Supp will be having a teleconference with Better City tomorrow. There are new speakers in the Council room and Supp is hoping that everybody can hear a lot better as well as those on Zoom.
Nance has been working with Montoya at the Senior Center to spend all of the CARES COVID funding. The Senior Center was deep cleaned and received more audio/visual abilities at the Senior Center as well as a Zoom connection for outlying resources,
hearing devices and cleaning supplies. The Boys & Girls Club and Resource Center both received more money as well.
The City will be closed on Monday for Martin Luther King Day.
Pengelly said the backup generator should be here Thursday for well #5. The bad news is that when Public Works went to flush well #5, mud water started coming out and were sucking pea gravel up the pipe and out the side of the building. The hole is 795 feet deep. The impeller sits at 240 feet so to be sucking gravel and mud, it possibly collapsed above and filled the hole up. Pengelly is hoping to get a sounder down the hole this week to see what depth it is at right now and will camera it to see what the failure is. Best case scenario is it is a screen that failed and it can be cleaned out at a cost of $200,000. Worst case scenario will be to drill a new hole. Supp added that she and Pengelly will have to discuss doing repairs and adding a booster station from town. Pengelly stated there is no harm to the public because the well was isolated at the time it was being flushed. If it is recommended to drill a new hole, it might be good to put in a booster station with a tank on stilts and use a gravity system instead of a pump system. Supp stated Pengelly has an employee on sick leave right now due to a COVID exposure. The new hire that was hired recently has parted ways so is back down to the regular crew. At the sewer pond, one of the aerators was flipped upside down and sunk. Hopefully it can be salvaged for $4,000, brand new will be $25,000. The snow plows have been down as well.
Justus reminded everyone that financial statements are due the 15th. CITIZENS TO ADDRESS THE COUNCIL
There were none. ADJOURNMENT
______________________________________ LAYLA M. WALZ, Mayor
ATTEST:
______________________________________ JOLENE M. SUPP, City Manager/Clerk
