MINUTES OF THE FERNLEY CITY COUNCIL MEETING March 17, 2010

MINUTES OF THE FERNLEY CITY COUNCIL MEETING March 17, 2010 Mayor LeRoy Goodman called the meeting to order at 1:03pm at Fernley City Hall, 595 Silver Lace Blvd, Fernley, NV. Present were Councilmembers: Robert Chase, Curt Chaffin, Cal Eilrich, Kelly Malloy, and Don Parsons. Also present were City Manager Greg Evangelatos, City Attorney Paul Taggart, Finance Director Mel Drown, Community Development Director Fred Turnier, Senior Planner Valerie Claussen, Public Works Director Lowell Patton, Parks and Recreation Director Keith Penner, and City Clerk Lena Shumway. 1. ROLL CALL. There were no absences. 2. APPROVAL OF THE AGENDA. Councilman Chase asked to pull item 3.C. Councilman Chaffin MOVED TO APPROVE THE AGENDA MINUS ITEM 3.C. Councilman Chase seconded the motion. Motion carried as follows: Approved 5-0-0. 3. CONSENT AGENDA: 3.A. ACCEPT VOUCHERS REPORT. 3.B. APPROVAL OF MINUTES 02/17/2010 3.C. APPROVAL OF AMENDMENT TO GRANTS MANAGEMENT POLICIES AND PROCEDURES AUDIT SECTION PER BUREAU OF RECLAMATION REQUEST. {End of Consent Agenda} Councilman Parsons MOVED TO APPROVE THE CONSENT AGENDA MINUS ITEM 3.C. Councilmember Malloy seconded the motion. The motion carried as follows: Approved 5-0-0. Item 4 was addressed next. This item was addressed after item 18. Mrs. Janice Prichard, Fernley resident, asked to remove this item from the consent agenda because she wasn t able to get the full Staff report online. She received a copy now and apologized for delaying this item. Councilmember Malloy MOVED TO APPROVE THE RECOMMENDED AMENDMENTS

TO GRANT MANAGEMENT POLICIES AND PROCEDURES. Councilman Parsons seconded the motion. The motion carried as follows: Approved 5-0-0. Item 19.B was addressed next. --------------------------------------------------------------------------------------------------------------------- 4. CLOSED SESSION: ADDRESS STEP 4 GRIEVANCE HEARING FOR THE ANIMAL CONTROL OFFICER POSITION PER ARTICLE XI OF THE COLLECTIVE BARGAINING AGREEMENT (CBA) BETWEEN THE CITY AND THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS (IBEW) LOCAL UNION 1245. Councilman Chase MOVED TO GO TO CLOSED SESSION. Councilman Parsons seconded the motion. The motion carried as follows: Approved 5-0-0. Closed session was called at 1:07pm. The meeting reconvened at 2:26pm. Councilman Eilrich MOVED TO DENY THE GRIEVANCE PRESENTED BY LOCAL UNION 1245 WITH RESPECT AND DIRECT STAFF TO FILL THE POSITION AS SOON AS POSSIBLE, NO LATER THAN APRIL 15, 2010. seconded the motion. The motion carried as follows: Approved 5-0-0. Councilman Chaffin Mayor Goodman called a recess at 2:28pm. The meeting reconvened at 2:40pm. --------------------------------------------------------------------------------------------------------------------- RECESS TO CONVENE AS CITY COUNCIL BUDGET WORKSHOP. 5. PRESENTATION OF CITY MANAGER S RECOMMENDED FY 10-11 BUDGET. City Treasurer/Finance Director Mel Drown reviewed the revenues for the Water Utility, Sewer Utility, and Streets and Storm Drains budgets. Public Works Director Lowell Patton provided line by line detailed explanations of the Enterprise Fund budgets. Discussion was held on upcoming street improvements. Director Patton explained that $2 million in Capital Projects had been delayed due to lack of revenue. Overall operating costs had been reduced by 16%, most of which come in the form of converting contract employees to in house employees at the Water Treatment Plant (WTP). Reductions were made in all three funds to ensure expenses would match incoming revenue. Director Patton was looking to adopt a fleet services program and a motor pool in efforts to reduce costs. Public Works was looking into joint grant funding with the Pyramid Lake Paiute Tribe (PLPT) totaling $1.5 million. They would be required however to match the grant amount as dictated by the Bureau of Reclamation (BOR). He hoped to utilize the 03/17/2010 FCC Page 2 of 18

grant award to recover costs paid for water legal services. Director Patton was looking into going back to a hand held radio system to reduce communication costs. This would be beneficial in emergency situations, as the City would have a shared channel with the Lyon County Sheriff s Office and North Lyon County Fire Protection District. Director Patton would continue to evaluate costs at the WTP as operations continued. He reviewed the line items for the WTP. Discussion ensued about the residual disposal and replacement of the microfilters. Councilman Parsons asked to discuss on a future agenda, possible use of residual water from the WTP. Director Patton explained the Sewer Fund did not demonstrate a dramatic reduction mostly due to salaries and fixed costs. He provided a detailed review of the Sewer Fund line items. Councilmember Malloy asked to reduce Professional Services in the WTP budget. Discussion followed regarding increased insurance costs for the WTP, previous allocations in the Sewer Fund salaries, and overtime calculations. Councilman Eilrich asked about the E-1 units, the mini force mains. Director Patton hadn t compared the costs for individual E-1s versus single lift station costs for an entire subdivision. With all things considered, it s not competitive for large installation. He was planning on coming to the Council later with a plan to grandfather or permit some of the older units because the City sometimes could not service them due to lack of access and they are relatively expensive to service. He would like to discuss it in more detail with the Council in the future. Mrs. Janice Prichard, Fernley resident, questioned why the insurance for the Parks Department was $75,000, only slightly lower than the $105,000 budgeted for insurance for the WTP. She questioned the information provided for the bond payments. ADJOURN TO RECONVENE AS THE CITY COUNCIL REGULAR MEETING. --------------------------------------------------------------------------------------------------------------------- REGULAR AGENDA: 6. DISCUSSION AND POSSIBLE ACTION FOR SUPPORT OF ECONOMIC DEVELOPMENT ACTIVITIES PROMOTING JOB GROWTH AND ECONOMIC STABILIZATION. City Manager Greg Evangelatos reviewed his Staff report. He believed with the City s newly developed grants program, it would benefit the City to participate in the services provided by the Western Nevada Development District (WNDD). Mr. Ron Radil, 03/17/2010 FCC Page 3 of 18

Executive Director of WNDD, introduced Mr. Michael Guss, a VISTA worker, who was working with WNDD. He said Mr. Guss was available to work on project development with the City. Mr. Radil reviewed their involvement in local projects. Fernley s dues based on population were $3,000. Mr. Radil explained WNDD was soliciting applications for small business development grants to stimulate job development. They are also planning local business classes. Their Board meets to discuss regional issues such as transportation and water. Councilman Chaffin asked if WNDD would be able to help the City find support with the costs tied to the WTP. He also asked what the chances were for WNDD to bring projects and potential businesses to Fernley. Mayor Goodman asked to address the WTP with his report as he had new information stemming from a recent conversation with Senator Ensign. Mr. Radil said in regard to economic development applications, they would work with the Small Business Administration (SBA) and the City to place at least one of the current projects in Fernley. Councilman Eilrich said funding to this organization was cut before, he asked how confident WNDD felt about the possibility of bringing business and jobs to Fernley. Mr. Radil responded that the all credit issues are having effects on businesses looking to expand or move. It has been a major point of discussion in the industry. It may take a period of time before it recovers, in the meantime it was good to get the infrastructure in place to attract business. Councilman Eilrich thought participation in WNDD was a good source for advertising and would support the City utilizing WNDD in a larger role. Councilman Parsons asked how much availability the City would have to grants administration and grant writing for infrastructure. Mr. Radil said WNDD responds to the needs and requests of their members, the amount of involvement depended on each individual project. Mayor Goodman relayed how WNDD had provided grants for what had become Fernley s Industrial Park. Mr. Chuck Alvey, President of the Economic Development Authority of Western Nevada (EDAWN), appreciated the ability to invite the City to rejoin the EDAWN in their economic development partner association. The City s fee to participate was $1,500. In the past EDAWN assisted with the development of Trex, PolyPipe, Amazon.com, and other businesses in the Fernley Industrial Park. They are currently working to attract renewable energy projects. They have sent out numerous presentations via email reviewing the attributes of Northern Nevada and had a 30% view rate. They were now 03/17/2010 FCC Page 4 of 18

reaching out to those companies to schedule visits and develop relationships. They have about 15 inquires most of which are manufacturing projects. Mr. Alvey assured job creation is one of their priorities. Councilman Eilrich MOVED TO SUPPORT WNDD WITH $3,000 AND EDAWN WITH $1,500 IN THE NEXT FISCAL YEAR BUDGET. Councilman Chaffin seconded the motion. City Manager Evangelatos asked to fund $1,500 for this year for WNDD to put the City into full membership. Councilman Eilrich AMENDED THE MOTION TO INCLUDE $1,500 IN THIS FISCAL YEAR, after asking the City Manager if the funds were available. Councilmember Malloy preferred to not cut support to activities in the community such as the Fourth of July in order to fund these requests. She asked to see the whole budget first. Councilman Parsons said the motion was to fund the programs; he couldn t support it not knowing what was in the upcoming budget. Councilman Chase agreed, he wanted to see if it could be financed before handing out the money. Councilman Eilrich AMENDED THE MOTION TO ADD CONTINGENT UPON THE BUDGET. Councilman Chaffin s second stood, as it was only a recommendation to include it in the upcoming budget. Councilmember Malloy wouldn t support any additional expense at this point, including one out of the current budget. Councilman Eilrich AMENDED THE MOTION TO REMOVE THE $1,500 FROM THE CURRENT YEAR. He restated the motion TO SUPPORT WNDD WITH $3,000 AND EDAWN WITH $1,500 IN THE NEXT FISCAL YEAR BUDGET CONTINGENT UPON THE BUDGET PROCESS. Councilman Chaffin s second stood. The motion carried as follows: Approved 5-0-0. Before calling a recess Mayor Goodman issued a proclamation recognizing the month of April as National Child Abuse and Neglect Prevention month. Mrs. Carlyn Grocholski, Lyon County Human Services, received the proclamation and thanked the Mayor and Council. Mayor Goodman called a recess at 4:45pm. The meeting reconvened at 4:58pm at which item 19.A was addressed. 7. DISCUSSION OF ADOPTING ROBERTS RULES OF ORDER (PER COUNCILMAN CHASE REQUEST). This item was addressed after item 13. Mayor Goodman prefaced that he had provided the Council with a handout detailing how he uses Roberts Rules to conduct 03/17/2010 FCC Page 5 of 18

business meetings. Councilman Chase expressed concern about jumping back and forth between different methods used to run Council meetings. He thought the handout provided should be adopted in order to keep consistency. Mayor Goodman said the print out was a cheat sheet on the basics. He asked if the Council wanted to put this on the agenda again for possible action. City Attorney Paul Taggart said the City was already using Roberts Rules of Order as a guideline for day to day operations. They don t necessarily have to adopt them formally, but it may be useful for everyone to be more familiar with them. Councilman Parsons was in favor of adopting the rules formally. Councilmember Malloy asked what decides whether an agenda item is for discussion or action. Mayor Goodman said it depends on how the agenda item is requested or how it s worded by the City Manager when the agenda is prepared. 8. DISCUSSION OF POTENTIAL CHANGES TO MUNICIPAL CODE TITLE 1, CHAPTER 5 CITY MANAGER. Mr. Paul Taggart, City Attorney, facilitated the discussion. His office would take the suggestions provided by the Council and compile them into a draft document for future consideration on an agenda. Mayor Goodman reviewed the recommendations provided by the Council. Councilman Parsons asked to remove his request for a saving clause after receiving a clarification from City Attorney Taggart. Councilman Chaffin thought the City Manager should be allowed to manage the day-to day operations of all departments. He was in favor of limiting the City Manager s ability to provide increases in pay to 4% and with the provision that the Council approve any schedule of pay. Councilman Eilrich agreed that the City Manager has to be guided by the Personnel Manual; it should be that way already. He was not in favor of removing the City Manager from a management position above the statutory officers. He agreed the City Manager should not be allowed to give any promotions without Council approval and any pay increases beyond basic step increases. Councilmember Malloy clarified her suggestion in regard to the statutory positions. NRS already dictated the statutory officers be responsible to the City Council. The Council would manage those positions just like the City Manager s position. It was not fair for the Council to evaluate and/or terminate people in the statutory positions for following direction given by the City Manager. Mayor Goodman suggested forming a committee of himself and two Councilmembers to review the suggestions and bring back a proposal for consideration. City Attorney Taggart 03/17/2010 FCC Page 6 of 18

asked to also be included on the committee. There was consensus to form a committee composed of Mayor Goodman, Councilmembers Chase and Chaffin, the City Clerk, and the City Attorney. Councilman Parsons explained some of his suggestions. He was suggesting a change because it was the responsibility of the City Clerk to develop and post the agenda, but the Clerk does not have the authority to put items on the agenda without the approval of the City Manager. He did not think it appropriate for the City Manager to hire an investigator to look into any complaints. Steps should be taken before a consultant is hired who is not familiar with the environment. Should the issue not be remedied by those actions, the issue should be given to an independent third party. He thought the City Manager s ability to award contracts should be limited to $10,000 and the responsibility of appointing an Interim City Manager should lie with the Mayor. 9. DISCUSSION AND POSSIBLE ADOPTION OF RESOLUTION #10-007, A RESOLUTION ESTABLISHING THE RULES AND PROCEDURES FOR THE CITY OF FERNLEY CONVENTION AND TOURISM AUTHORITY BOARD, AND OTHER MATTERS PROPERLY RELATED THERETO. City Manager Greg Evangelatos reviewed the Staff report. Councilman Parsons MOVED TO APPROVE RESOLUTION #10-007, A RESOLUTION ESTABLISHING THE RULES AND PROCEDURES FOR THE CITY OF FERNLEY CONVENTION AND TOURISM AUTHORITY BOARD, AND OTHER MATTERS PROPERLY RELATED THERETO. Councilman Chase seconded the motion. Mayor Goodman noted that the definition of a vote of the quorum present could be two out three members. He thought a qualifying vote should be constituted by three, a majority of sitting members, no matter how many are present. Under duties, Mayor Goodman suggested removing economic development endeavors because it s not under the purview as proposed. Councilman Eilrich would like to clarify that events may occur in County islands as they still positively affect the City. Councilman Parsons AMENDED THE MOTION TO REQUIRE THREE OUT OF FIVE AT A MINIMUM TO PASS A VOTE, REMOVE ECONOMIC DEVELOPMENT ENDEAVORS, AND ALLOW ACTIVITIES IN LYON COUNTY ISLANDS, NOT NECESSARILY IN THE CITY LIMITS. Councilman Chaffin s second stood. The motion carried as follows: Approved 5-0-0. 03/17/2010 FCC Page 7 of 18

10. DISCUSSION AND POSSIBLE ADOPTION OF RESOLUTION #10-008, A RESOLUTION ESTABLISHING THE GRANT FORMS AND PROCEDURES FOR THE CITY OF FERNLEY CONVENTION AND TOURISM AUTHORITY BOARD, AND OTHER MATTERS PROPERLY RELATED THERETO. City Manager Greg Evangelatos presented the resolution. Councilman Eilrich MOVED TO ADOPT RESOLUTION #10-008, A RESOLUTION ESTABLISHING THE GRANT FORMS AND PROCEDURES FOR THE CITY OF FERNLEY CONVENTION AND TOURISM AUTHORITY BOARD, AND OTHER MATTERS PROPERLY RELATED THERETO. Councilman Chaffin seconded the motion. Mayor Goodman asked to add contact information for the department involved with the FCTA to the forms. The motion carried as follows: Approved 5-0-0. 11. DISCUSSION AND POSSIBLE ADOPTION OF RESOLUTION # 10-009, A RESOLUTION AUTHORIZING CITY OF FERNLEY TO APPLY TO THE LAND & WATER CONSERVATION FUND FOR A 50% MATCHING GRANT FOR THE PURPOSE OF BUILDING A NEW RESTROOM AND CONCESSION BUILDING AT THE OUT OF TOWN PARK SENIOR SOFTBALL AND BABE RUTH FIELDS. Parks and Recreation Director Keith Penner stated there were no changes to the report. Mayor Goodman asked about the matching funds and where would the funding come from. Director Penner explained that it would be a transfer between the Residential Construction Tax (RCT) Districts. necessary. Councilman Chase asked if demolition was Director Penner explained the footprint did not allow for additional construction. Councilman Parsons asked if the grant funds could be used for any other projects. Director Penner said it was sought for those facilities because they are highly used and the City receives numerous complaints about them. Councilman Parsons thought it may be better to seek funding to allow utilization of the alternative water system to irrigate parks. $115,000 was a lot to pay in utilities to keep the parks watered. Mayor Goodman directed the conversation back to the agenda item. He was concerned with the significant expense for a restroom. Discussion followed regarding funding options either RCT or Capital Funds. Councilman Eilrich was in favor of improvements at the Out of Town Park, but did not like the use of the prefabricated building. He would like to see a local contractor being used to fix the facilities. Being a general contractor, he asked to table this item for two weeks in order to meet with Staff and assess the 03/17/2010 FCC Page 8 of 18

building. He would like to do as much as he could to maximize the funds and keep the money in the community. Councilmember Malloy too would like to bid this out to see if it could be done cheaper, as a really nice house could be built with the amount being sought. Discussion followed regarding use of the Capital Fund. City Treasurer/Finance Director Mel Drown would ask for a benefit finding in order to make an interfund loan. Director Penner relayed the grant deadline was April 1, 2010, and asked the Council for some type of decision quickly. Councilman Eilrich asked to agendize it for the March 24 th meeting. Councilman Chase MOVED TO TABLE THIS ITEM AND AGENDIZE IT FOR MARCH 24 th. Councilmember Malloy seconded the motion. The motion carried as follows: Approved 5-0-0. 12. UPDATE ON STATUS OF CITY OF FERNLEY GRANTS. Community Development Director Fred Turnier presented the monthly update. He said the grants system used to be decentralized, there was now a central person monitoring the grants and meeting the reporting requirements. He reviewed the appropriations for the current fiscal year. During the calendar year, the City received $193,000 for administration of appropriations and grants. Mayor Goodman relayed the details of a telephone conference with Senator Ensign. Senator Ensign indicated that it was very difficult to get grants or appropriations from the Federal government right now for projects that did not affect the Federal government. Mayor Goodman discussed the City s priorities and discussion followed regarding the unfunded mandate for the WTP. Staff asked for an appropriation in the form of a $3 million per year line of credit for up to 20 years to pay for the WTP. Mayor Goodman said that request was better received than any others previously made. Discussion was also held regarding the Nevada Pacific Parkway Interchange and Solar Power Conversion for City Hall. He planned to talk to Senator Reid and Congressman Heller directly in the future, he was very encouraged by the discussion with Senator Ensign. Item 14 was addressed next. 13. PRESENTATION OF THE COMMUNITY DEVELOPMENT BLOCK GRANT REPORT, FEASIBILITY STUDY FOR A FERNLEY BOYS AND GIRLS CLUB. This item was addressed after item 19.A. Community Development Director Fred Turnier stated the City of Fernley partnered with ComPaSS, a local non-profit 03/17/2010 FCC Page 9 of 18

organization, and applied for a CDBG grant for a feasibility study for a possible Boys and Girls Club. The grant was awarded in the amount of $30,000 with $4,000 coming in the form of in-kinds services from the City. The City s administrative portion of the grant had been completed. Mrs. Melody Bliss, Northstar Consulting Services, reported on the results of the feasibility study and the methodology used. The overall findings were that there was a definite desire and need for this type of organization. Mr. Mike Worm, Chief Professional Officer for the Truckee Meadows Boys & Girls Club, was excited about the opportunity to bring a Boys & Girls Club to Fernley. They were working quickly with ComPaSS to staff the program. Councilman Parsons thought this program was definitely needed in Fernley and asked what steps were being taken from here. Mr. Worm said funds had been donated from some local foundations and had been added to funds provided by ComPaSS. They still needed additional funding and would be coming to Fernley to raise the remaining funds. At the current funding level, they expected to fully take over the Lyon County project when it ends in June. Councilman Chaffin was happy to see this program coming to fruition, it had been a long time coming. Mr. Worm said Lyon County School District (LCSD) was very helpful and supportive of the idea. All the conditions and people have come together to make this happen. Mrs. Valerie Claussen, Fernley resident and mother of two children, said the latchkey program in the schools (Just Kids) is different from the services provided by the Boys and Girls Club. She was afraid the programs would be overlooked with the possibility of the new option for kids. The Just Kids and Camp Tumbleweeds programs are homegrown, local programs made up of locals that come together to provide services. She asked the City to consider an agenda item to convert the Just Kids program to the City, as it was a self sufficient program in the best interest of the community. Item 7 was addressed next. 14. DISCUSSION OF THE ORDINANCE # 2009-018 ASSESSMENT OF TRANSIENT LODGING TAX, THE COLLECTION AND DISTRIBUTION (PER DEBBIE SKINNER S REQUEST). This item was addressed after item 12. Mrs. Debbie Skinner, local business owner, expressed concerns with the collection of the transient lodging tax by the City of Fernley. When the City redirected the collection of the transient lodging tax, the return date was 03/17/2010 FCC Page 10 of 18

moved from the 15 th to the 10 th and the late fees became much stricter. In the past, she said Lyon County allowed an allowance for collection of the tax. When the City took that over, the allowance provision was removed. Mrs. Skinner asked the City to revisit the fees and collection date. Mrs. Skinner met with City Clerk Shumway and the City Manager about her concerns including some discrepancy in the ordinance related to the due dates. Councilman Chaffin agreed that the 15 th of the month was as good as 10 th of the month. He didn t know if business owners should be rewarded for paying taxes that have to be paid and didn t think $100 was excessive as a late fee. Councilman Eilrich was a proponent of bringing the Room Tax to Fernley. He said the City didn t conduct a Business Impact Study and should be using the same collection procedures as Lyon County. He asked Staff to prepare a report with the Lyon County procedures and the City s procedures as adopted. Councilman Parsons assumed that when they were presented it was the same as Lyon County s procedures. Councilman Chaffin asked who changed the conditions and why they were changed. City Clerk Lena Shumway said the City Attorney s Office prepared the ordinance, she wasn t aware of the changes until it was passed. City Attorney Paul Taggart said they would research it and provide the analysis in the future, if the impact of the fee was changed, that wasn t the intent. Mayor Goodman directed Staff to bring it back to the April 7 th meeting. Mayor Goodman called a recess at 6:26pm. The meeting reconvened at 6:42pm at which time item 19 was addressed. 15. PRESENTATION BY MILLION DOLLAR RESEARCH TEAM AND POSSIBLE ACTION/DIRECTION BY CITY COUNCIL REGARDING PROPOSED ITEMS. This item was addressed after item 19. Mrs. Susan Seidl, Fernley resident and Million Dollar Research Team (MDRT) member, provided a progress report on the items previously suggested and replied to Staff s comments. She said the MDRT saw the slide show and business directory being billed quarterly. In regard to renting out the DMV space, they were looking to rent out the whole north portion of the building. Mrs. Sandra Mathewson, Fernley resident, asked why the Educational Assistance program didn t follow the City policy requiring receipts to be submitted. She thought there should be prior approval and follow up after completion of the course. 03/17/2010 FCC Page 11 of 18

The Council reviewed each item individually. There was consensus from the Council to support the addition of a credit card surcharge. No action was requested on item 2. Councilman Eilrich thought the advertising slideshow would be distracting. Councilman Chaffin thought it might open the City to liability, as it would appear the City was endorsing certain local businesses. Those types of advertising functions are typically provided by the Chamber of Commerce, the City shouldn t compete with them. Councilman Parsons would not be opposed to a business directory for businesses with licenses, but was against advertisement on the City s website. City Clerk Lena Shumway interjected that currently the Clerk s Office posts a list of all licensed businesses on the website. Councilmember Malloy thought renting the DMV space was a great idea. The rest of the Council agreed. Councilman Chaffin s only concern was having whatever business located there being linked to the City. If it was an organization the City supported or utilized (ie a contracted company), that would be appropriate. Discussion followed regarding streetlights. City Attorney Paul Taggart said there were safety and liability concerns if existing lights are not lit. Councilman Eilrich asked if Staff had checked with NV Energy regarding any possible cost savings. Councilman Chaffin suggested presenting the list to LCSO for their comments. Councilman Eilrich said blocking some streets off could also be considered. There were no comments on the Diamond F facility. There was consensus from the Council that the Arts and Culture Commission was something that benefited the residents at relatively little cost. The City netted more in profit than what was spent. Travel & Training was being addressed in the budget in addition to Memberships and Dues and Educational Assistance. Discussion followed regarding what types of training the City should be paying for in terms of employee advancement. Councilman Chaffin encouraged each department to be very careful in those areas and the City Manager to watch them very carefully. Discussion followed regarding the American Planning Association memberships for Community Development and the Planning Commission. The Council agreed that City vehicles should only be used for City business as allowed in the Personnel Manual. No recommendations were suggested for Neighborhood Watch. Councilman Eilrich was in favor of ordering generic business cards or printing 03/17/2010 FCC Page 12 of 18

them as inexpensively as possible. Councilman Chaffin MOVED TO TAKE ACTION ON DEVELOPING A FEE FOR CREDIT CARD TRANSACTIONS. Councilman Eilrich seconded the motion. The motion carried as follows: Approved 5-0-0. Discussion followed regarding the slide show and website directory. Councilman Parsons MOVED TO AUTHORIZE THE CITY MANAGER AND CITY CLERK TO FIND SOMEBODY FROM THE HIGH SCHOOL TO WORK FOR A PARTIAL DAY ON THE BUSINESS DIRECTORY ON THE WEBSITE AND POSSIBLY SPEAK SPANISH TO HELP OUT THE SPANISH RESIDENTS OF FERNLEY (AND BRING THE PROPOSAL BACK TO COUNCIL). Councilmember Malloy seconded the motion. The motion carried as follows: Approved 4-1-0, Chaffin opposed. Councilmember Malloy MOVED TO LOOK INTO THE POSSIBILITY OF RENTING OUT A PORTION OF CITY HALL. Councilman Chase seconded the motion. The motion carried as follows: Approved 4-1- 0, Eilrich opposed as he was concerned the City would be competing with commercial rentals. He was supportive of renting to someone that conducts regular business with the City. Councilman Chaffin MOVED TO TAKE THE PROVIDED LIST OF STREETLIGHTS TO THE LYON COUNTY SHERIFF S OFFICE FOR INPUT AND DETERMINE IF THERE S A BENEFIT AND BRING IT BACK TO THE COUNCIL. Councilman Chase seconded the motion. Councilman Parsons asked Staff to contact NV Energy as well. The motion carried as follows: Approved 5-0-0. Councilmember Malloy MOVED TO DIRECT STAFF TO LOOK INTO SUBSCRIPTIONS AND MEMBERSHIPS. Councilman Chase seconded the motion. Councilman Parsons asked Staff to contact the Planning Commission and determine whether it s needed. Councilman Eilrich asked to hear from someone on the Planning Commission that was in attendance. Planning Commission Chairman Garret Burleson said he personally felt it was not an absolute necessity. The motion carried as follows: Approved 5-0-0. Mayor Goodman thanked Mrs. Seidl and the MDRT for their input. 16. DISCUSSION AND POSSIBLE ACTION REGARDING THE CONSIDERATION OF CHARACTER, ALLEGED MISCONDUCT, PROFESSIONAL COMPETENCE, OR PHYSICAL OR MENTAL HEALTH OR TO CONSIDER AN APPEAL REGARDING THE RESULTS OF AN EXAMINATION CONDUCTED BY OR ON BEHALF OF THE PUBLIC BODY RELATIVE TO THE PERFORMANCE OF GREG EVANGELATOS, CITY MANAGER. 16.A. POSSIBLE MODIFICATION OF CITY MANAGER EMPLOYMENT CONTRACT; 03/17/2010 FCC Page 13 of 18

16.B. TERMS OF CONTINUED EMPLOYMENT WITH THE CITY OF FERNLEY AS THE CITY MANAGER; 16.C. POSSIBLE MONETARY SANCTIONS FOR POTENTIAL VIOLATIONS OF THE CITY MANAGER EMPLOYMENT CONTRACT; 16.D. DISCIPLINARY ACTION, UP TO AND INCLUDING TERMINATION. City Attorney Paul Taggart said this was a follow up to a prior item, as requested by Councilman Parsons. Councilmember Malloy understood the contract was two sided and any modifications would have to be agreed upon by the City Manager. She believed the City Manager erred with some recent actions and suggested one week loss of pay for the delay in moving to Fernley and a six month evaluation period with set mutual terms agreed upon by the City Manager and the City Council detailing goals for the evaluation period. Should the City Manager be terminated during the evaluation period, only one half of the original severance amount would be paid. Councilmember Malloy asked to remove the bonus clause from the City Manager s contract and delay the City Manager s annual pay increase for one year. ACCEPT THE PROVISIONS AS DESCRIBED. Councilmember Malloy MOVED TO Councilman Eilrich seconded the motion. Councilman Parsons asked if there was any stipulation on how long the Council wanted to wait for the City Manager s response to these changes. Since this item was on the agenda, he would like to give the City Manager time to respond to the modifications now, because if the City Manager did not agree to the revisions the Council could still take further action. Councilman Eilrich defined that that the reduction in severance was only for the evaluation period. He agreed that the City Manager needed to provide an answer before the Council finished the agenda item. Mayor Goodman asked Mr. Evangelatos if he would like time to respond. Mr. Evangelatos asked for a 15 minute recess. Mayor Goodman called a recess at 8:02pm. The meeting reconvened at 8:18pm. Mr. Greg Evangelatos accepted the proposal as outlined by the Council. However he asked that his acceptance be given on a good faith effort to define mutual goals. He said an acceptable set of accomplishable goals needed to be determined for the six month period as he needed clear guidance from the Council. Mayor Goodman thought it was a reasonable request and suggested a committee be formed to establish consistent performance goals. Councilman Parsons asked Mr. Evangelatos if he would accept the 03/17/2010 FCC Page 14 of 18

revisions without stipulating to a list of specific goals. He felt setting the goals was a separate item. City Manager Evangelatos said the goals had to be focused and set immediately in order for him to comply with the request. Discussion followed regarding the establishment of goals. Mayor Goodman recommended himself and Councilmen Eilrich and Parsons to sit on the committee. Councilmember Malloy AMENDED THE MOTION TO STATE THAT THE MUTUAL TERMS BE VOTED ON AT THE NEXT MEETING. Councilman Eilrich hoped at the end of the six months, the City s government was being run by a triangle of trust, which was needed for the City to functionally operate. It was essential that the Council, Mayor, and City Manager are able to trust each other. Councilman Chase pointed out there had been changes in the Mayor s position, the City Manager s position and the City Treasurer s position, yet the same problems existed. The Council needed to take a deeper look in order to establish some continuity and move forward. City Attorney Taggart asked to have goals submitted within a set number of days as the subcommittee would be covered by the Open Meeting Law and would have to meet the noticing requirements. Mayor Goodman said if so, the Council as a whole could deliberate on the goals at the April 7 th meeting. The motion carried as follows: Approved 3-2-0, Parsons, Chase opposed. An agenda item would be on the next agenda to formally adopt the contract amendment. 17. DISCUSSION AND POSSIBLE ACTION ON APPOINTMENT OF ACTING/INTERIM CITY MANAGER, COMPENSATION FOR ACTING/INTERIM CITY MANAGER POSITION AND RECRUITMENT PLANS FOR NEW CITY MANAGER IN THE EVENT OF TERMINATION OF GREG EVANGELATOS, CITY MANAGER, BY CITY COUNCIL ACTION AND OTHER MATTERS PROPERLY RELATED THERETO. This item was not addressed, after the action taken in item 16. --------------------------------------------------------------------------------------------------------------------- 18. PUBLIC INPUT. Mrs. Susan Seidl, Fernley resident, suggested modifying the late penalty for the room tax to a certain percentage of the return. Mr. Bill Wilsie, Fernley resident, encouraged the use of a credit card surcharge as many other agencies were utilizing one. Mr. Wilsie was happy to see Coffee with the Mayor being held at the local swimming pool. He was also pleased to see the golf course back 03/17/2010 FCC Page 15 of 18

up and running. He suggested the City perform traffic counts before closing any streets or turning off any street lights. Mrs. Pat Howard, Fernley resident, read a statement encouraging the City Council to work together. She said gossip and misinformation was causing unrest. She thought constructive criticism is sometimes necessary, but recent comments have been mean, vicious, and costly to the residents. Mrs. Howard said people outside of the City read the local newspaper and watch the news, with all the negative stories they may not select to come to Fernley to live, work, or play. She encouraged the public at large to use the proper channels to address their concerns in order for the City Council to properly conduct business. Item 3.C was addressed next. 19. REPORTS. 19.A. REPORTS BY LYON COUNTY SHERIFF S DEPARTMENT, NORTH LYON COUNTY FIRE PROTECTION DISTRICT AND ADDITIONAL REPORTS AS RECOGNIZED BY THE MAYOR. This item was addressed after item 6. Lyon County Sheriff s Office Lieutenant Torres was available to answer any questions or listen to any concerns. There were no questions for Lt. Torres. He said LCSO was preparing for school to get out and summer activities such as the Fourth of July. Interim District Fire Chief for North Lyon County Fire Protection District (NLCFPD) Scott Huntley, shared their recent statistics. There had been an increase in respiratory and behavioral emergencies including several suicide attempts and batteries. NLCFPD was dispatched to five fires and 145 rescue emergencies. NLCFPD was looking to totally take over emergency medical services on March 25 th. They lost their Fire Inspector, but had hired another in a short period of time. That day there was a structure fire in Wadsworth. The fire was extinguished before Storey County and Reno companies arrived. CPR and First Aid training was planned at Station 61, including training for City Staff. Item 13 was addressed next. This item was reopened at 6:43pm. Mrs. Janice Prichard, Fernley resident, gave a report on the War Memorial. She showed a draft brochure that would be used in the 03/17/2010 FCC Page 16 of 18

donation process. They received a letter from Governor Gibbons office in support of the memorial and the volunteer efforts. She hoped to start getting donations very soon. Arts & Culture Commissioner Dinah Eilrich gave an update on the Arts and Culture Commission activities. They held a Marketing Team meeting and discussed holding an annual event as a fundraiser. The Art Guild was showing their work in the Art & Lobby Gallery. It would be followed by a show from Fernley High School and Lingo of Our Calling. They were getting a lot of support from the community and sponsors and becoming self-sufficient, a goal of theirs since inception. Commissioner Larry Claussen said the Commission was working on community outreach specifically tied to the traveling exhibits that show in the gallery. Their next meeting was rescheduled for March 31 st. Item 15 was addressed next. 19.B. REPORTS BY CITY STAFF, CITY COUNCIL AND MAYOR. City Manager Greg Evangelatos announced training for all elected and appointed officials on Ethics, Open Meeting Law, and Positive Governance would be held the following Saturday. City Attorney Paul Taggart said the new City Attorney would start on Monday, he would be working with her to bring her up to speed. He expressed his appreciation to the Council for allowing him to be their City Attorney. Mayor Goodman thanked Mr. Taggart for his hard work and the work of his staff. Councilman Parsons asked the Council to look at installing laterals in the right-of-way being paved by the Lyon County School District, either by fronting the cost or requiring the developer to place them before the road is paved. Councilman Chase asked someone to look into the weed problem at the end of Jenny s Lane. Councilman Chaffin attended the Chamber of Commerce Board meeting. Items of concern included: advertising businesses at City Hall and use of the reader board at the Fernley Lassen Depot. Mayor Goodman asked to address Councilman s Eilrich request for information on the purple pipe ordinance on April 7 th. He asked to discuss the required dedication of 1.12 03/17/2010 FCC Page 17 of 18

acre feet of water for developers as he thought it was onerous compared to other jurisdictions. Mayor Goodman said street sweeping needed to begin to remove winter debris from the roads. On April 21 st, a report would be given on broadband and the possibility of video conferencing. Mayor Goodman asked Public Works to go back and restore Stock Lane after last year s construction. He also asked to see the proposed street maintenance plan for the upcoming year. Lyon County sent a letter to the City suggesting the City look at absorbing the Fernley library. Mayor Goodman did not think it was possible according to NRS 379.022, nor did he think it was warranted at this time. In regard to NRS 266.610 and the City s request for additional road fund money, Lyon County has asked the Attorney General for an opinion, because they do not put property tax in the road fund. Mayor Goodman disagreed with their explanation. Coffee with the Mayor was scheduled for Saturday at the Fernley Swimming Pool. --------------------------------------------------------------------------------------------------------------------- 20. ADDRESS REQUEST(S) FOR FUTURE AGENDA ITEMS. Councilman Parsons asked discuss alternate uses of the wastewater from the Water Treatment Plant. Councilmember Malloy asked to discuss changing the agendas to state that action may be taken on any item. Councilman Chaffin asked to discuss some mechanism to keep items from repeatedly showing up on the agenda. 21. ADJOURNMENT. There being no further business to come before it, the meeting adjourned at 8:52pm. Approved by the Fernley City Council on, by a vote of: AYES: NAYS: ABSTENTIONS: ABSENT: ATTEST: City Clerk Lena Shumway Mayor LeRoy Goodman 03/17/2010 FCC Page 18 of 18