Elko County Board of Commissioners

Transcription

1 Elko County Board of Commissioners Commissioners Delmo Andreozzi Demar Dahl Cliff Eklund, Chair Jon Karr Rex Steninger Elko County Manager Robert K. Stokes STATE OF NEVADA ) COUNTY OF ELKO ) ss. January 18, 2017 The Board of Elko County Commissioners met in regular session on Wednesday, January 18, 2017, at 1:30 p.m., in Suite 102 of the Nannini Administrative Building at 540 Court Street, Elko, Nevada. There were present: County Commissioners Delmo Andreozzi ABSENT Demar Dahl Cliff Eklund Jon Karr Rex Steninger County Manager Robert Stokes CFO/Asst. County Mgr. Cash Minor NRMAC/Asst. Mgr. Randy Brown Deputy District Attorney Kristin McQueary County Clerk Carol Fosmo Chief Deputy Clerk Kris Jakeman Deputy Clerk Rebecca Plunket Deputy Clerk Michele Merkley Deputy Clerk Marilyn Tipton Deputy Clerk Brenda Rodriguez Deputy Clerk Amanda Peck Deputy Clerk Faye Fleury Deputy Clerk Angie Demars Deputy Clerk Joni Allen Undersheriff Ron Supp Road Supervisor Terry Lister Accountant II Kathy Long 1:33:02 PM: PAGE 1

2 A. CALL TO ORDER: Chairman Eklund called the meeting to order at 1:33 p.m. He noted for the record that Commission Dahl was not present due to a meeting with Congressman Amodei in Fallon. 1:34:09 PM: B. PLEDGE OF ALLEGIANCE: Marilyn Tipton led the meeting participants in the Pledge of Allegiance. 1:34:35 PM: C. COMMENTS BY THE GENERAL PUBLIC: Bassam Sam Khoury and Ghassan Gus Khoury presented a $1,500 contribution to the Enhanced 911 project. Elizabeth Hauk commented that she may possibly be contacting the Attorney General s Office. She noted that on February 5, 2014 the Commission approved the request from the Sheriff to levy inmate charges for medical, food and booking fees. She believed that was unconstitutional and submitted a copy of February s minutes. Elizabeth Hauk reported that she was arrested January 31 st on a battery charge and was currently out on bail with a deferment which was given to her by the Courts. She said she was incarcerated in jail for 13 hours and was charged $10.00 for the $25.00 she incurred for the booking fee. Elizabeth Hauk stated in her research she could not find when they approved the $25.00 charge. She noted the Sheriff did comment at the Commission meeting that another county was charging $25.00 so she believed he took it upon himself to start charging that amount. She commented when she bonded out, her bond was $1,140 for a simple misdemeanor charge that she incurred. She stated according to law and the resolutions the Commission had passed it should be $1,000. Elizabeth Hauk stated she cannot get an explanation where the $ additional charges came from. She noted the only one able to set those fees was a Judge but she could not get his answer because there was no trial. She stated upon her release she received a demand from the Sheriff s Department to sign a release. She signed the release because she wanted to get out of jail. She questioned how the Sheriff can demand payment when they had not looked into her financial background. Elizabeth Hauk questioned how the Sheriff s Department could demand payment when it had not gone before the District Attorney or any Court of law to request payment of this fee. She was an alcoholic and one of the Board members was a family friend but when she brought this to his attention she was not in the correct mental state. She has sought out-of-state mental attention and was gone for six weeks. Elizabeth Hauk learned she was bipolar and ADHD as well as being an alcoholic. She noted they do not have the correct facilities in Elko to get that type of diagnostics and it was very detrimental to our community. She sought help and found there were many underlying mental issues. Elizabeth Hauk stated she was put in a holding cell very PAGE 2

3 inebriated and was not sure why she was held for twelve hours. She noted in 2005 she was put directly into the drunk tank. She believed the Commission had the power to stop the concerns she was bringing before them. She had hoped to go to jail because a Writ of Habeas Corpus was a simpler process than to come before this Board. 1:45:07 PM: D. RECOGNITIONS: D.1. Discussion and consideration of the presentation of a Plaque of Appreciation to Deputy County Clerk Marilyn Tipton for her twenty years of dedication and professionalism providing complete and accurate minute records of Elko County Commission, Elko County Regional Transportation Commission, Elko County Debt Management Commission, Elko County Board of Equalization Meetings and other County Board and Committee meetings. MOTION: Commissioner Andreozzi moved to formally present the plaque and thank Deputy County Clerk Marilyn Tipton for her twenty years of service. Commissioner Karr seconded the motion. The motion passed unanimously. Commissioner Andreozzi read the plaque into the record. Kristin McQueary commended Mrs. Tipton for her hard work over the last twenty years, her ability to research the historical records, and their bond of friendship. Robert Stokes commented sixteen years ago when he came to the County Marilyn was the first person he met and believed she has consistently produced the best minutes of all the different organizations he had dealt with. Carol Fosmo publicly thanked Marilyn Tipton, commented upon her work quality and her protectiveness of her co-workers. Commissioner Eklund commented he had worked with Marilyn Tipton on several different boards and it had been a joy working with her. 1:59:02 PM: E. ELKO COUNTY NATURAL RESOURCES: E.1. Discussion and consideration of a request from the Conservation Districts to increase their annual funding from Elko County from the current $40,000 to $80,000. In addition, the Districts are asking the County increase their efforts in being a partner in the weed control efforts, especially on the Right of Ways. Randy Brown stated NRMAC made a recommendation to the County Commission to approve the increase in the next budget and to further extend their efforts on the roads rights of way for weed control. Commissioner Eklund inquired where the funding would come from. Cash Minor stated it was currently being paid by gas taxes from the Road Fund so if they increase that they would have to decrease their road PAGE 3

4 expenditures an additional $40,000, which the Road Department has their own problems. Agee Smith stated he was from the Cottonwood Ranch in the O Neil Basin, was also representing the Northeast Conservation District and was the Chairman of the Elko County Conservation Districts. He noted there were several members of the Conservation Districts in the meeting room. He apologized for not keeping them updated on what the Conservation Districts have done in the past within the roads rights of way. He read a list of the noxious weeds most commonly found in Nevada and documented by the Department of State. Agee Smith gave an overview of the impacts from the noxious weeds. He stated the BLM had identified 14,147 lane miles of road impacted by noxious weeds of which 2,070 miles were upon maintenance scheduled roads running annually and 7,077 were designated primitive roads that were not maintained beyond washouts, other emergency, or needed other repairs. He stated Elko County maintains 977 miles which included both paved and graveled roads. Agee Smith stated the annual cost to the United States economy was estimated at $120 billion dollars per year with over 100 million acres suffering from invasive plant infestations. Agee Smith stated weeds dominate natural plant communities, were oppressive and adaptive, expand quickly, mature early, crowd out native plants, monopolize water and nutrients, and their seeds were viable for years. Agee Smith stressed education, collaboration across the boundaries and shared funding with all stakeholders. He noted in other states the County weed boards can be responsible for educating, finding new ways to control noxious weeds and enforcing the State weed laws. Agee Smith stated the County Commissioners can appoint a County weed advisory committee who were knowledgeable of county noxious weeds and the damage done by weeds, and provide funding to local conservation districts. He said in 2003 for 50 acres it would cost $7,000 to treat invasive weeds in Nevada. He noted today if that 50 acre path was not treated it would cost approximately $27,000 due to the spread of the infestation. Agee Smith stated over 46% of Nevada counties has dedicated weed programs. He noted the Humboldt Watershed Cooperative Weed Management Area covers five counties: Elko, Eureka, Lander, Humboldt and Pershing covering approximately 17,000 square miles. He stated the 501(c)(3) had a Board of Directors and was currently funded through the NDA, NDOW, NDEP, BLM, US Fish and Wildlife Service, Railroad, NFWF, Intermountain West Joint Venture and through local foundations and charitable organizations. Agee Smith stated inventoried Union Pacific right-of-way worked with various landowners to provide public education and distributed 40 noxious weed articles of concern to our area and onsite technical assistance. Agee Smith stated the Humboldt Watershed Cooperative Weed Management Area assumed Elko County and the Spring PAGE 4

5 Creek CWMA duties when they disbanded. He stated in 2016 the HWCWM worked with 7 entities and landowners to treat 1,960 acres for $48,498; providing matching funds to Conservation Districts for noxious weeds treatment and technical assistance in Lamoille, Owyhee, Duck Valley, Jiggs and Northeast Nevada. He stated HM cosponsored the Weed Extravaganza with the Elko Association Conservation Districts. He stated the Spring Creek Association has 5,000 lots or parcels including residential and commercial properties, green belts and roadside rights-of-ways as well as large recreational properties including sports fields, marina, equestrian complex, and a campground bordering the Humboldt-Toiyabe National Forest. Agee Smith stated in keeping with the requirements of NRS Chapter 555 it was the plan of the SCA to map, control and monitor all noxious weeds found in the area and work cooperatively with State, Federal Agencies, and educational entities to protect the natural resources in and surrounding the rural community. Agee Smith gave an overview of the Elko County Conservation Districts funding background wherein each of the eight Conservation Districts receives $5,000 since He stated currently the $5,000 match for State funding was no longer required because in 2009 the funding from the State was reduced to $2,500. Agee Smith noted that has gradually increased to $4,000 for each Conservation District. He stated over the last fifteen years the CDs have not received any increase from the County or the State yet inflation increased by 3.3% per year. He gave an overview of the eight CD s accomplishments for this year which comprised 17,203 square miles of private lands. He noted as of June 30, 2016, the CDs spent an average of $6,826 to control weeds. Examples of accomplishments: Northeast Elko CD treated 103 miles along county roads; Lamoille treated 40 miles; Jiggs CD treated 60 miles and the average cost per treatment was $ per mile. He stated biochemical release for the Lamoille CD in the last three years, reseeding project for Owyhee and Northeast Elko CD, purchase of a land range drill for Lamoille and Jiggs CDs, Clover Valley Treatment of perineal pepper weed and Duck Valley noxious weeds public education event. He stated the Elko County Conservation Districts request an increase of County s funding from $5,000 to $10,000 for each Conservative District. Agee Smith stated the $5,000 would not do a quarter of the roads within his district. He stated they spent $25,000 around the O Neil Basin and the Winecup but never got to Gamble or Montello. Agee Smith noted the State does not give them much funding and they don t have the resources to go beyond the $5,000 and they were not able to cover all the county roads. Agee Smith stated they found some contractors to spray the County roads as well as upon their private lands. Commissioner Eklund inquired if they can show any accountability or record keeping for the $40,000 that the County provided. PAGE 5

6 Agee Smith replied they do map the County roads and now the contractor does the mapping of where they sprayed. He apologized for not supplying them with those records and giving them updates. Commissioner Eklund noticed all landowners must address the weeds on their property but inquired about the Railroad responsibilities. He stated they asked the Railroad but was told the Railroad had too much land that they cannot control. Sean Gephart, Noxious Weed Coordinator for the Nevada Department of Agriculture, voiced support for the CDs and stated he was currently working with the Union Pacific. He had met with Union Pacific representative two times and was in conversation with them over the phone several times. Sean Gephart reported the state was split in half from Carlin to the border going east has a representative that was stationed in Salt Lake City and from Carlin going west to California was another representative. Sean Gephart stated they have three pest control companies that would be actively doing pest control work and they have a mechanical weed control system that would be implemented. He stated they have received multiple complaints that the Union Pacific area was not being addressed and that was a concern of theirs. Commissioner Eklund met with the Union Pacific representative when he was the Mayor of Carlin and they come in with a big crew but they had not come back since. He had heard Battle Mountain addresses the same issues as well as the other towns that have Railroad properties in the middle of their town. Commissioner Steninger inquired if the BLM contributed. Agee Smith replied in the past but that program went by the wayside. He noted the BLM representative was currently present. He stated they were now working for a grant from them so as they go along the County s roads any BLM problems would be addressed as they do the private so it would be a cooperative joint venture. Commissioner Steninger noted at the NRMAC meeting a person mentioned that they were having problems getting matching funds because the County was giving $5,000 to each CD. He suggested they make a $40,000 donation and give it to one Conservation District to be divided to the eight CDs. He noted then they would be able to get grant funding. Agee Smith agreed there was some value with that but you have eight different CDs and each had a different number of County roads. He believed the CDs with more County Roads should have a larger share of the funding. He stated if they have individual CDs it would give them more local input. Gerald Miller, Department of Natural Resources, Conservation District Program, stated the idea behind the comment was to get the County to help them get the grants and move through that process. He stated the Conservation PAGE 6

7 Districts work with the private landowners but the private landowners were not so much for taking care of the County roads. He stated at one time the County Commission was more involved with the Elko Cooperative Weed Management Area with Commissioners participating at the meetings. He stated they were trying to bring the Commission back to the team. He stated they were very successful in doing the grant portion but it would be helpful if Elko County could pay up in front because they don t get paid right away, it was a reimbursable grant. He stated $5,000 did not give them very much, especially if they have spent it on other projects so the idea was to get more participation from Elko County. Commissioner Steninger noted on January 7 th the Free Press published an article regarding the Nevada Division of Forest grant programs. He inquired if they were aware of those grant programs. Gerald Miller stated it was the same program that came from the USDA where they have to pay out up front and then get reimbursed so there was a delay in payment. He noted the County had a better budget than the CD s. He stated they have applied for those grants but usually that was applied to private lands rather than upon County property. He stated it was complicated to write the grants. Commissioner Steninger supported their program but their request would take funding away from the roads and they were getting daily calls about the roads. He stated they have to try to find other funding sources. Commissioner Andreozzi commended them upon the work that the Conservation Districts do. He believed they could their yearly reports to the Commission. He agreed that $40,000 does not go far now. Commissioner Andreozzi acknowledged their commitment to reduce the noxious weeds within the County and inquired if there was an opportunity for the County to explore an in-kind role to manage grants and pay for the upfront costs. He believed they should give this to the Budget Committee for serious consideration. Agee Smith commented upon the increased amount of traffic from hunting, etc. Commissioner Karr inquired about support from the local organizations such as the Rocky Mountain Elk Foundation, the Mule Deer organizations, the Ducks Unlimited, etc. that do fund raising in the community. Agee Smith stated not to his knowledge. He commented he was a hunter and was not against hunting but it does create more traffic upon those roads. Commissioner Steninger inquired if they were seeking the formation of a County control weed board. Agee Smith did not believe they wanted more boards created but they would like to see more coordination among the CDs so it would be beneficial to PAGE 7

8 solicit funding. He noted Commissioner Steninger had been attending their Conservation District meetings and he believed that CD association was set up to bring the County, State and federal agencies together. Commissioner Andreozzi inquired about the length of time a treatment lasts. Agee Smith replied weed control was ongoing due to the seeds. He noted every year there was always a new disturbance on the County roads due to grading and commented the roads needed to be graded so they can t get around that disturbance. He commented upon a piece of private lands they can get about three or four years on a treatment so it was not continuous but on county roads it was annually. Agee Smith noted around Montello and the Gamble Ranch they have an infestation that they could never get the best of it. He stated they had a guy spraying it continually and the Gamble Ranch was investing a lot of money into weed control on the private property. MOTION: Commissioner Steninger moved that this request go to the Budget Committee for serious consideration. Commissioner Andreozzi seconded the motion. Commissioner Andreozzi inquired if Commissioner Steninger would explore any other County involvement such as single contribution or management of grants. Terry Lister, Road Supervisor, requested that all eight weed districts communicate with the Road Department. He noted it may be counterproductive if they spray then the County blades the roads. He believed they should coordinate it so they can do it in a timely fashion. Terry Lister stated some of the roads had to be done at the time of spraying due to water availability. He had been the Road Supervisor for three years and had not met some of the people from the Conservation Districts. Wyatt Mesna, of the Gibbs Ranch in the O Neil Basin, stated $5,000 does noted go very far because nobody wants to spray weeds and it was hard to get a contractor in the area for that amount. He noted the $5,000 was gone in a matter of days. Jessie Bahr, SCA President, stated they have over 150 miles of roads in their association and encouraged them to increase the amount to $10,000. She stated the Spring Creek Association would be asking their board to increase funding from $20,000 to $30,000 to address the weeds. She stated they would ask each homeowner to take care of the weeds on their property through their rules and regulations. Jonathan Dahl, Starr Valley Conservation District Chairman, reported they spent the $5,000 from the County with a match from the State of $3,000 on State Route 227 to his house which was six miles with herbicides. He commented the PAGE 8

9 herbicides were becoming more expensive and the spray does not go as far so the weeds were returning. He stated the Nevada State Statute says the landowners were to maintain the weeds and they were discussing the County roads here. Jonathan Dahl noted the weeds don t have a schedule so when they reach their maturity they have to be sprayed regardless of the Road Department s schedule. Commissioner Andreozzi felt there was an opportunity to make it more efficient and believed they could give the funding to one organization so they could buy the herbicides in bulk and there would be better contractor pricing. The motion was passed unanimously. 2:40:20 PM: E.2. Presentation on regarding noxious weeds in Nevada by Sean Gephart, Noxious Weed Coordinator for the Nevada Department of Agriculture. Sean Gephart stated under the Department of Agriculture they identify the weeds, assess the financial impact and support the additional funding request by the Conservation Districts. He stated the NRS gives them the ability to designate certain weeds as noxious. Sean Gephart that they currently have 47 species on the noxious weed list which were separated into A (limited distribution throughout the State), B (established in certain areas within the State), and C (widespread weeds) categories. He stated they focus upon the category A weeds of which 26 were perennial weeds which were more difficult to control. Sean Gephart stated they collect data through seasonal Department of Agricultural workers, share information with the BLM and Forest Service, and any citizen that identifies a weed could inform them of an infestation. Sean Gephart displayed a map of Elko County with identification points of eighteen noxious weeds and stressed the importance of controlling weeds in the watershed areas. Sean Gephart stated the Elko CDs have showed concern with medusa head, perineal pepper weed, leafy spurge, Russian knapweed, and a new weed named ventenata dubia. Sean Gephart gave an overview of NRS and NRS requirements. He noted the County shall control the weeds and NRS did not reference it as the State asserting authority over the County. He commented the State gave the authority to the Counties to establish their own weed control districts. He noted the State currently has eight weed control districts with Ruby Weed Control District and Lamoille Weed Control District being located within Elko County and they had their own authority. Sean Gephart gave an overview of the authority and regulations the Weed Control Districts could enforce. He stated the Department of Agriculture under the State of Nevada s General Fund had a weed abatement fund available to the Counties. He noted they would reimburse the counties up to 80% of the cost to do weed control work on private property for owners that refuse or neglect to do the noxious weed work themselves. Sean Gephart stated to get the 80% reimbursement the counties PAGE 9

10 have to forego a lien on the property where the property owner was refusing to do the weed control work. He noted once that property was sold that money was collected and reimbursement went to the County and the State. Sean Gephart stated they have a MOU for the noxious weed abatement fund. He noted over the last 200 years more than 50,000 foreign plant and animal species have become established in the United States. He commented 1 in 7 has become invasive with damaging control cost estimated at more than $138 billion dollars per year. Sean Gephart stated a decline in native species, wildlife habitat, agricultural yields, property values, and water affect the economics. Sean Gephart s is sgephart@agri.nv.gov if they had any questions. 2:55:55: RECESS: Chairman Eklund called a recess at 2:55 p.m. 3:07:55: RECONVENE: Chairman Eklund reconvened the meeting at 3:07 p.m. 3:08:06 PM: Chairman Eklund called the Board of Highway Commissioners to order at 3:08 p.m. F. BOARD OF COUNTY HIGHWAY COMMISSIONERS: F.1. Discussion and possible approval to apply for the Federal Lands Access Program (FLAP) to improve CR Gold Creek Road - Bruneau River Road. Upgrading the road to a maintenance level 3. MOTION: Commissioner Andreozzi moved to table the Federal Lands Access Program (FLAP) to improve CR Gold Creek Road - Bruneau River Road. Commissioner Steninger seconded the motion. The motion passed unanimously. Chairman Eklund adjourned the Board of Highway Commissioners at 3:08 p.m. 3:08:48 PM: G. ELKO COUNTY FISCAL AFFAIRS: G.1. Presentation and consideration of approval of the Annual Independent County Financial Audit for Fiscal Year Ending June 30, 2016 from Eide Bailly, LLP. Commissioner Karr and Commissioner Steninger disclosed they both have their taxes prepared by Eide Bailly. Teri Gage, Eide Bailly LLP partner, presented the June 30, 2016 audit report. She stated their Senior Auditor, Julie Holman would give a charts presentation. Teri Gage noted they had a component unit the Agricultural Cultural Association District #4 (County Fair Board) which was included in their financial statements but they were not audited. She commented they receive a compilation report so there was a disclaimer for the Fair Board. Teri Gage stated on page two they reported the County had a clean opinion on their financial PAGE 10

11 statements for the year ending June 30, Teri Gage commented on page 3A was their management guide and analysis which was an overview written by the County s CFO which had useful information. She gave an overview of page 4 which was the Statement of Net Position and commented upon their net assets of $68.3 million dollars which was a 2% decrease from last year. She noted some of the significant differences: cash and investments decreased by $738,000; they incurred debt for Sheriff Department vehicles in the amount of $548,000; purchased an Ambulance for $143,000; paid $298,000 for a fire engine; Jackpot airport project of $779,000; finished the jail addition so they rolled some over to this year; the new Fire District Vehicle Maintenance Building for $380,000 several paving/crack seal projects; and did a roof replacement at Jackpot Recreation Center for $107,000. Teri Gage stated according to Government Liability Standards their net pension liability beginning June 30, 2015 had to be shown for that unfunded piece of their pension plan. She stated Elko County had $39.9 million dollars unfunded but they fund into it each year as they pay into PERS. She noted it would take many years to fund the pensions as they become due. Teri Gage the OPED obligation was for health care costs which were $6.6 million dollars. Cash Minor stated most of those were County retirees that went with the State Health Program which was now closed to local governments. Commissioner Andreozzi inquired with the net liability does it take into consideration all County employees today inclusive of retired County employees. Teri Gage stated it included all individuals that were using the PERs system today and into the future. She noted it was an actuary report that looks at mortality rates, years left of service and gives you a number. Teri Gage stated the report included the new debt for Sheriff s vehicles. She noted there were no new accounting standards to be implemented. She stated on page 6 was the balance sheet for their governmental funds with an ending fund balance of $24.3 million dollars, the prior year was $26.2 million dollars. She noted it went down $1.8 million dollars. Teri Gage gave an overview of their five operating funds. She noted in 2013 the operating funds had cash of $8.6 million dollars but today their cash balance was $4.4 million dollars and their ending fund balance in 2013 was $9.9 million dollars so they have decreased fifty percent with 49% in cash and 1% in fund balance. Teri Gage stated the unfunded mandates, new court funding, fire district, and new security systems had impacted their budget over the last four years. Kristin McQueary inquired what percentage the State requested for their ending fund balance. PAGE 11

12 Cash Minor replied 8.3% ending fund balance which was one month of cash and expenditures but the last legislature changed that to 25% of their operating funds. He believed that would now be around five percent. Teri Gage stated at the end of 2016 they were 13% for just the general fund. Cash Minor stated they budgeted it at 4.7% and they were around 5% currently. He stated when they hit 4% the State takes them over. Cash Minor stated the State had raised it to 25% and the Governmental Fiscal Officers Association Model Policies recommended 25% for operating funds ten or twelve years ago so they could save for big projects. Commissioner Karr inquired if that new percentage was a policy to negotiate with the Union but it was not a true mandate. Cash Minor stated it was not a mandate it was intended to protect the money for operating purposes rather than including it in salaries and wages. Teri Gage stated the 8.3% was for one month of operating expenditures. She commented many of their fund balances had reduced significantly and funding was tight. Cash Minor noted the School District usually had a 3% to 4% ending fund balance which was tied into the handbook of State funding. He noted because of the state funding if they have too much on hand then they would receive reduced state funding per student. Commissioner Andreozzi noted revenues came in higher than budgeted. Teri Gage stated they budgeted $27.3 million dollars and they came in at $28 million dollars. She reviewed page 12 which was the statement of revenues and income statements for enterprise funds which showed a positive cash in the enterprise fund of $648,000 which the majority was in the ambulance fund due to the third party ambulance billing administrator and the rate increase on the other enterprise funds. Cash Minor stated the timeliness of when the bills went out probably increased the cash flow also. Teri Gage stated water, sewer and landfill enterprise funds had losses and she encouraged them to look at those rate structures to fund a level of depreciation. She gave an overview of page 26 which contained their footnotes of any statute violations. She stated the public safety function overspent by $134,000 which the majority was in salaries for public safety. (Sheriff s Office) Teri Gage stated the health function was overspent by $85,000 because they budgeted for State health and it came in higher. Cash Minor noted the State increased their percentage of fees. Teri Gage stated Jackpot Public Works overspent $56,000 due to audit adjustment for the grants. She stated in the Jackpot Sewer Fund they overspent PAGE 12

13 $10,400 because they did not fund sufficient depreciation. She noted the Medical Assistance to the Indigent Fund overspent by $50,000. Cash Minor stated they could have moved the $57,000 to the Medical Assistance Fund but they would have had a higher deficit so it was a tradeoff. Teri Gage noted their indigent costs were out of the County s control. She stated they may have to look at their tax rate for those funds. She noted the Tuscarora Water overspent by $2,200, Jackpot Waste overspent $20,000, and the Montello Water Fund overspent by $19,000. Commissioner Karr inquired about the standard depreciation and how much of that was fact. Cash Minor explained the problem was the ability to raise rates high enough to recapture depreciation so the total cash amount was available when they need to replace the system. He stated they use grant proceeds to rebuild those rural systems. Teri Gage noted they had a deficit fund balance in the Medical Assistance to the Indigent of $17,000, in LEPC $3,300 due to grants and Elko Area Transit had a $47,000 deficit. She noted they did not have a deficit in Ambulance. Cash Minor commented they eliminated legal liability in dealing with Medicare/Medicaid through the third party contract for the ambulance collections. Teri Gage stated on page 50 showed their total revenues of $28 million dollars and noted they had a $1.1 million dollar increase due to the C-taxes of $645,000. She stated they received $260,000 from NDF to assist with the Fire District. Commissioner Andreozzi inquired if the new sales tax was reflected. Cash Minor noted they would record that tax in a separate fund and was effective the 1 st of July. Commissioner Andreozzi inquired how they fared on State projections for Consolidated Taxes. Teri Gage replied they budgeted $11 million dollars and they came in at $12 million dollars. She stated the property taxes only increased at 1.7 from the previous year. She noted net proceeds refunds affected that amount. Cash Minor noted on property taxes there was only a 2.5% increase including residential and commercial property due to the formula in place. Teri Gage stated C-Tax was at a 5% increase. She reviewed page 57 total expenditures. She noted they budgeted $32 million dollars in expenses and came in at $31.5 million dollars. Teri Gage stated their expenses went up about 5.8% and $1.7 million dollars so there was a net loss of $451,000 in their general fund. Commissioner Karr inquired about their budgeting practices. PAGE 13

14 Cash Minor stated they budget conservative on the revenue side and more moderately on the expense side. Teri Gage stated upon page 162 they budgeted an ending fund balance of $1.82 million dollars for They projected revenue at $26.5 million dollars and expenses at $31.7 million dollars. Cash Minor explained there were transfers coming in from the jail. Teri Gage stated on page 57 it showed the ending fund balance of $4.1 million dollars in the general fund which was 13% of the expenditures. She cautioned them of spending due to the unfunded mandates that come down together with the new court. Cash Minor stated they have unfunded mandates from the State that average about $1.8 million dollars. Teri Gage stated on pages was their schedule of expenditures and their federal grant awards. She stated they had $2.9 million dollars in grant expenditures which was up by $2 million dollars for last year. She noted the Jackpot Airport project which was $740,000. She said the single audit threshold changed this year and this year they only audit two grant programs. Teri Gage stated the findings of the audit begin on page 153 which relate to year-end type transactions. She stated they refunded money on a grant for $217,000 which was recorded in the wrong place. Teri Gage stated they purchased assets in the Jackpot General Fund but contributed it to the Elko Ambulance Fund which was not recorded correctly. She noted they also sold an ambulance which was not recorded correctly. Teri Gage stated the Town of Jackpot General Fund for the FAA grant there was a $171,000 adjustment which did not have full accrual. She stated the inmate commissary revenues were not recorded for the entire year and usually they send it over on a quarterly basis to the County to be deposited. Teri Gage stated on page 154 with the third party administrator for the ambulance billings they pulled 25 samples of ambulance billings and 5 were not billed appropriately. She noted County staff contacted SHI on those. Teri Gage suggested quarterly they test a few of those billings to oversee that. Cash Minor stated that was what they planned on doing. Teri Gage stated on page 155 they did interest testing and found the system was not calculating the interest properly to several funds and that was corrected. She noted in the utility funds they deal on a cash basis so they were full accrual funds and they don t record receivables at the end of the year. She stated that does not take in account anyone that was delinquent and pays in August, etc. She stressed they should be full accrual. Julie Holman gave a brief overview of their financial statements through pie charts. She noted their total revenues by function were consistent to prior years PAGE 14

15 but the charges for services increased 13% due to the Assessor Commission increasing 7%, a 3% property tax revenue and Net Proceeds from last year. Julie Holman noted Chart 2 was total governmental fund expenditures by function. She noted capital outlay decreased from 11% to 8% which was a result of jail the addition in FY Julie Holman stated the health expense increased 29% from prior year due to State increases and increase in child protection services charges. She stated welfare expenses increased 17% due to medical assistance to Indigent Fund expenses which increased $272, Commissioner Andreozzi inquired about the welfare amount of $2.6 million dollars which a component of that was paid to the State. Cash Minor understood the largest was child protective services at half a million dollars per year. Commissioner Andreozzi inquired where the Road Department fell under this expenditure. Cash Minor replied under public works. Commissioner Karr suggested they review these expenditures one department at a time because they don t want a grueling 10 hour budget session. Commissioner Steninger supported that recommendation. Cash Minor noted on the chart the biggest pieces of the pie was public safety at 28% and judicial at 24% and they could put something together to review once a month. Julie Holman commented the third chart showed governmental activities in full accrual basis and the general revenues as seen in a statement of activities located on page five of the financial statements. Julie Holman stated ad valorem taxes increased 2% from last year and consolidated taxes increased 5% which reflected growth in the economy. Julie Holman stated an increase in sales tax of one quarter of 1% was approved effective July 1, 2016 which would be reflected next year. She noted PILT increased 19% from prior year but general revenues in total were fairly flat where there were increases of 4% over the prior two years. Cash Minor stated motor vehicle fuel tax had increased in the last four months and he attributed it to lower oil prices so people drove more. Commissioner Andreozzi requested that next time they show all the revenue funds compared to expenses in a bar graph not necessarily by function. Julie Holman reviewed the chart on total expenses. She noted salaries and wages were 47% of the expenses; services and supplies were 26%; capital outlay was less than 1% and employee benefits were 26% of the total expenses. Commissioner Andreozzi suggested a 5 year historical chart on salaries and wages and inquired how many people in that same period. Cash Minor noted salary and benefits equals about 74% of the budgets and that was consistent through the years. PAGE 15

16 Julie Holman gave an overview of salaries and wages with this year being 48% and over the prior three years they were 49%. She noted employee benefits this year was 26%, in 2015 it was 25%, in FY it was 24%. Commissioner Andreozzi stated he would like to see those in numbers. Teri Gage noted they would incorporate their requests in future reports. She reviewed their letter of communication telling them of their significant estimates, disclosure of no difficulties; review corrected and uncorrected audit adjustments, and audit findings. Teri Gage thanked the County staff for their time and effort. She believed it took 800 to 900 hours for an audit and a lot of that was staff time to provide information for the audit. MOTION: Commissioner Karr moved to approve the Annual Independent County Financial Audit for Fiscal Year Ending June 30, 2016 from Eide Bailly, LLP as submitted. Commissioner Steninger seconded the motion. The motion passed unanimously. 4:01:21 PM: H. ELKO COUNTY CODE: H.1. Discussion and consideration of first reading of an amendment to Ordinance that will expand the animal control areas in the county to include an unincorporated area on north Fifth Street in Elko and an unincorporated area on Bullion Road. Randy Brown stated this would expand to north ½ of Section 8 outside of city limits and Bullion Road south of the city limits through the new development on Bullion Road. Commissioner Andreozzi voiced support because it would minimize animal conflicts in areas with growing populations. Commissioner Steninger noted they had no prior discussion of adding the area on Bullion Road Randy Brown stated the Sheriff s Department recommended incorporation of the Bullion Road portion. MOTION: Commissioner Andreozzi moved to approve the First Reading of the amendment to Ordinance that will expand the animal control areas in the County to include an unincorporated area on north Fifth Street in Elko and an unincorporated area on Bullion Road and set the matter for Second Reading and other possible options. Commissioner Karr seconded the motion. The motion passed unanimously. 4:04:33 PM: I. NEVADA LEGISLATIVE SESSION: I.1. Update on the upcoming 79th (2017) Nevada Legislative Session scheduled to begin on February 6, Short list of Legislative Issues includes but not limited to: PAGE 16

17 Unfunded mandates from the State to Counties Commissioner Eklund understood there may be up to $3.5 million dollar mandates passed down to the Counties. Commissioner Steninger inquired if those were existing mandates. Robert Stokes replied yes those were existing mandates. He stated the Governor s budget was being presented but they have not reviewed it yet. He noted his Chief of Staff informed NACO there would be rural initiatives. Robert Stokes assumed it would be the $21 million dollars that was going to the community colleges for tech arts training. He stated they hoped for a reduction in the unfunded mandates to the county governments or a promise they would not do more mandates. Robert Stokes stated during the legislative session they would work with NACO and they met with the various department heads whom have affiliates working with other counties and appointed groups. He commented Assemblyman John Ellison did have an extra license to the bill tracking service and offered it to the County which he accepted. Robert Stokes stated they received a number of BDRs yesterday and Assemblyman Richard Skip Daly from Washoe County has introduced a BDR saying provisions related to counties but they did not know the exact verbiage. State-wide Indigent Defense Restructure Recreational Marijuana Regulations and Administration Elko Regional Airport Flight Route Subsidy Commissioner Eklund inquired about subsidization of flights from Elko to Reno and stabilization of flights from Elko to Salt Lake City. Robert Stokes Senator Goicoechea introduced legislation on behalf of the City of Elko with regards to flight stabilization. He reported there was a meeting on the 25 th of January with local representatives from various agencies. Defendant Bail Requirement Restructuring Public Guardian Voting Machines Commissioner Andreozzi thought they should seek higher education at the College and noted the efforts for recruitment of health specialties. Commissioner Eklund inquired if they had medical classes here. Commissioner Andreozzi replied they have nursing and social worker classes. He noted there was a shortage of behavior health in this area and felt they should encourage the local high school grads to look at those professional pursuits to help fill those needs. 4:12:21 PM: J. APPOINTMENTS: J.1. Jackpot Town Advisory Board Appointment of one (1) member to a term of two (2) years that will expire on January 7, Ed Klomp requests reappointment for another term. PAGE 17

18 MOTION: Commissioner Steninger moved to appoint Ed Klomp to a term of two (2) years that will expire on January 7, Commissioner Andreozzi seconded the motion. The motion passed unanimously. J.2. Jarbidge Town Advisory Board: Appointment of three (3) members to a term of (2) years that will expire January 7, Ken Heil, Gordon "Butch" Smith and Dot Creechley request reappointment for another term. MOTION: Commissioner Steninger moved to reappoint Ken Heil, Gordon "Butch" Smith and Dot Creechley to the Jarbidge Town Advisory Board with a term that expires January 7, Commissioner Andreozzi seconded the motion. The motion passed unanimously. 4:13:45 PM: K. COMMISSION MEETING CALENDAR: K.1. Wednesday, February 1 and 2, County Commission Meeting - Elko - 1:30 pm K.2. Wednesday, February 15, County Commission Meeting - Carlin City Hall - 1:30 pm K.3. Wednesday, March 1 and 2, County Commission Meeting - Elko - 1:30 pm K.4. Wednesday, March 15, County Commission Meeting - Elko - 1:30 pm MOTION: Commissioner Steninger moved to approve the meeting calendar. Commissioner Karr seconded the motion. The motion passed unanimously. 4:14:14 PM: L. CONSENT AGENDA L.1. Presentation and review of claims for approval which were available for public review at the Elko County Manager's Office. L.2. In accordance with NRS Chapters 533 & 534, consideration of approval of the State Engineer s assessments as submitted by the Nevada Division of Water Resources and reviewed by the County Assessor s Office. Maggie Creek Groundwater Basin, Elko Segment Groundwater Basin, North Fork Groundwater Basin, Boulder Flat Groundwater Basin, Steptoe Valley Groundwater Basin, Huntington Valley Groundwater Basin, Pine Valley Groundwater Basin, Starr Valley Groundwater Basin, Lamoille Valley Groundwater Basin, Mary s Creek Groundwater Basin, Mary s River Area Groundwater Basin, Goshute Valley Groundwater Basin, Willow Creek Valley Groundwater Basin, Clover Valley Groundwater Basin, Rock Creek Valley Groundwater Basin, Dixie Creek/Tenmile Area Groundwater Basin, Little PAGE 18

19 Humboldt River Valley Groundwater Basin, Humboldt & Little Humboldt River Distributions. L.3. Approval of Minutes: January 3, 2017 MOTION: Commissioner Steninger moved to approve the Consent Agenda. Commissioner Andreozzi seconded the motion. The motion passed unanimously. 4:16:03 PM: M. COUNTY COMMISSIONERS AND COUNTY STAFF COMMENTS: Commissioner Steninger inquired about Elizabeth Hauk. Kristin McQueary explained Ms. Hauk had a deferred prosecution and there were adjustments to the pay-to-stay policy to make it more clear to the inmates exactly how it works. She noted some of Ms. Hauk s issues were being dealt with because her deferred sentence was not finished so she would not get her money back until she successfully completes the deferral. Commissioner Steninger inquired about the $25 charge. Kristin McQueary would review that and noted they had been working on the jail policy over the last few months. Commissioner Andreozzi stated they could ratify those fees. He had spoken to the Western President of LifePoint and they would be responding to their letter. Commissioner Andreozzi stated with regards to the quarter of a cent infrastructure tax, at RTC, he mentioned receiving an update as to what those funds did within the entities with regards to road maintenance and repair. He suggested they revisit the road plan not necessary to change it but to keep it fresh. Commissioner Andreozzi acknowledged the next project was South Fork. He reviewed the comments at RTC with regards to the weather conditions impacting the roads. He stated they have had success at the Last Chance Road and hoped for the same success at South Fork. 4:21:38 PM: N. COMMENTS BY THE GENERAL PUBLIC: No comments were submitted. 4:21:45 PM: O. ADJOURNMENT: There being no further business to come before the Board, the meeting was adjourned at 4:21 p.m. APPROVED, ATTEST: MARILYN TIPTON, Deputy Clerk CLIFF EKLUND, Chairman PAGE 19