Elko County Board of Commissioners of Proclamation 2014-G, entitled: A PROCLAMATION BY THE ELKO COUNTY BOARD OF COMMISSIONERS PROCLAIMING MAY 8, ... and Charleston

Elko County Board of Commissioners

Commissioners Demar Dahl

Grant Gerber Glen Guttry

Charlie Myers R. Jeff Williams

Elko County Manager Robert K. Stokes

STATE OF NEVADA ) COUNTY OF ELKO ) ss. MAY 7, 2014 The Board of Elko County Commissioners met in regular session on Wednesday, May 7, 2014, at 1:31 p.m., in Suite 102 of the Nannini Administrative Building at 540 Court Street, Elko, Nevada. There were present: County Commissioners Charlie Myers, Chair

Demar Dahl Grant Gerber Glen Guttry R. Jeff Williams County Manager Robert Stokes CEO/Asst. County Mgr. Cash Minor

Planning/NRMAC/Asst. Mgr. Randy Brown Deputy District Attorney Kristin McQueary Deputy County Clerk Marilyn Tipton Deputy County Clerk Michele Merkley Undersheriff Clair Morris Library Director Jeanette Hammons Fire District Administrator Gary Zunino Ambulance Director Chris Sloman

Supervisor Planner/Zoning John Kingwell Chairman Myers called the meeting to order at 1:31 p.m. Chairman Myers led the meeting participants in the Pledge of Allegiance. Commissioner Dahl was not present at this time.

Chairman Myers recognized Waddie Mitchell; the Filippini family members; the Tomera family members; Lynne Hoffman; Frank Flavin, Northeastern Nevada Director of the Cooperative Extension; Wes Henderson; former Assemblyman John Carpenter, and Undersheriff Morris.

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1:34:21 PM: I. COMMENTS BY THE GENERAL PUBLIC: Lynne Hoffman stated Lee Hoffman was at his first National Committee meeting in Memphis and thanked the Commission for keeping the bus system viable. She noted the bus system provided transportation to people who really need it in the committee. She stated at their last Republican executive meeting members of the party was requested to come to the Commission and ask if there was a way that there may be a nonpartisan means to get voters to the polls. Lynne Hoffman noted it did not get on the agenda but asked that the Commission consider whether there may be a way to get the people to the polls. Commissioner Dahl arrived at 136:41 p.m. Chairman Myers asked that it be placed upon a future agenda. 1:37:44 PM: II. UNIVERSITY OF NEVADA COOPERATIVE EXTENSION: University of Nevada Cooperative Extension Day Consideration of Proclamation 2014-G, entitled: A PROCLAMATION BY THE ELKO COUNTY BOARD OF COMMISSIONERS PROCLAIMING MAY 8, 2014 AS UNIVERSITY OF NEVADA COOPERATIVE EXTENSION DAY. May 8th marks the centennial of the signing of the Smith-Lever Act, establishing Cooperative Extension. Commissioner Williams read the Proclamation into the record. MOTION: Commissioner Dahl moved to approve Proclamation 2014-G,

entitled: A PROCLAMATION BY THE ELKO COUNTY BOARD OF COMMISSIONERS PROCLAIMING MAY 8, 2014 AS UNIVERSITY OF NEVADA COOPERATIVE EXTENSION DAY. Commissioner Guttry seconded the motion. The motion passed unanimously.

Frank Flavin, Northeastern Nevada Regional Director of Cooperative Extension stated Jill Tingey was in training today and unable to be here. He stated he was the Washoe County Educator and noted Washoe and Elko Counties were responsible for the Cooperative Extension in the Nevada system. He thanked them for their Proclamation. Commissioner Williams commended Jill Tingey as being a valued asset to the community and noted she volunteered at many other activities. Frank Flavin stated Jill Tingey had been on interim status for several years and recently was selected to be the permanent Extension Educator. 1:45:14 PM: III. ELKO COUNTY FIRE PROTECTION DISTRICT: A. Consideration of Proclamation 2014-H, entitled: A PROCLAMATION BY THE ELKO COUNTY BOARD OF COMMISSIONERS PROCLAIMING MAY 2014 AS NEVADA WILDFIRE AWARENESS MONTH.

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Commissioner Myers read the Proclamation into the record. MOTION: Commissioner Dahl moved to approve Proclamation 2014-H,

entitled: A PROCLAMATION BY THE ELKO COUNTY BOARD OF COMMISSIONERS PROCLAIMING MAY 2014 AS NEVADA WILDFIRE AWARENESS MONTH. Commissioner Williams seconded the motion. The motion passed unanimously.

Gary Zunino, Elko County Fire District Administrator, thanked the Board for the Proclamation not only for the Elko County Fire District but for all the firefighters within Nevada. He noted the Proclamation stated it was the responsibility of the homeowners to make their home safe so the firefighters have a chance. Gary Zunino commented the grass had been growing and by August it would be fire season so they need to be ready. Gary Zunino introduced Ed Smith and Sonya Sistare from the UNR Cooperative Extension; Matthew Griego, Elko City Fire Department; and Taryn Holland of the UNR Cooperative Extension. B. Update on the Living with Fire event to be held May 7, 2014 at the Spring Creek Fire Station. The barbeque begins at 5:30 p.m. with the program beginning at 6:00 p.m. Gary Zunino invited the public to Fire Station #24 in Spring Creek and noted the County hosted the barbeque of hamburgers and hotdogs with informational programs. Ed Smith, Natural Resource Specialists UNR Cooperative Extension, stated for the National Wildfire Awareness Month they were putting on a series of workshops across rural Nevada. He stated last night they were in Eureka, tonight they would be in Spring Creek and next they would be in Winnemucca, Pioche, and Mt. Charleston. Ed Smith commented their presentation would educate homeowners how reduce wildfire threats, how to defend against embers, and community planning in reducing wildfire threats. Ed Smith encouraged attendance tonight. Commissioner Myers inquired if they had cattle grazing as one of the tools for elimination of fire dangers. Ed Smith stated they would talk about the tools in the tool box to reduce the fuel threat. Commissioner Myers inquired about the ember threat. Ed Smith commented studies have shown 20 locations on a home which were vulnerable to embers and they would display those twenty spots and offer mitigation methods to reduce that threat. Commissioner Myers noted the County was prone to wildfires and invited the public to the Fire Station.


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Commissioner Myers recognized Ben Reed, Elko City Chief of Police and Elko City Fire Chief, Matt Griego, and Assemblyman John Ellison. 1:52:10 PM: IV. ELKO COUNTY AMBULANCE: A. Emergency Medical Service Week: Consideration of Proclamation 2014-F, entitled: A PROCLAMATION BY THE ELKO COUNTY BOARD OF COMMISSIONERS PROCLAIMING THE WEEK OF MAY 18-24, 2014 AS EMERGENCY MEDICAL SERVICE WEEK. Commissioner Guttry read the Proclamation into the record. MOTION: Commissioner Williams moved to approve Proclamation 2014-F,

entitled: A PROCLAMATION BY THE ELKO COUNTY BOARD OF COMMISSIONERS PROCLAIMING THE WEEK OF MAY 18-24, 2014 AS EMERGENCY MEDICAL SERVICE WEEK. Commissioner Dahl seconded the motion. The motion passed unanimously.

B. Overview of EMS week activities scheduled for the Elko County Ambulance Service: Chris Sloman, Ambulance Director, thanked Chief Griego for coming. He explained EMS weeks was a national opportunity to raise awareness for EMS but gives the members at the local level to do public outreach and injury prevention. He publicly thanked Kathy McCann who voluntarily organized a series of events and reviewed the weekly events planned as follows: Monday, May 19th Teddy Bear Clinic at the Boys and Girls Club; Tuesday, May 20th Stroke Awareness Class at the Senior’s Center; Wednesday, May 21st Distracted Driving Exercise at the Elko High School parking lot; Thursday, May 22nd CPR training marathon at the Elko Fire Station No 2 from 9 am to 5 pm there would be no issuance of certificates; also on Thursday Summit Air Ambulance would host a cookout for first responders for EMS at the Marriot and on Friday, May 23rd there would be a barbeque at the Elko Ambulance Station for career staff and volunteers and other local first responding agencies. Chris Sloman stated they would be showing the TV show Emergency. Commissioner Myers suggested Chris or the Elko Fire Chief accompany him to Elko Live radio presentation to inform the public of their events. Commissioner Williams stated three years ago he had the opportunity to ride in one of their ambulances and publicly thanked them for the service. He noted the public did not appreciate them until they need their services. 2:03:42 PM: V. OIL & GAS EXPLORATION UPDATE: Update on Oil & Gas Exploration: ELKO COUNTY COMMISSION REGULAR SESSION MAY 7, 2014 PAGE 4

Kevin Vorhaben, Noble Energy, attempted to give a powerpoint presentation but had technical difficulties. Chairman Myers tabled this agenda item for the presentation to be converted to another program. 2:08:07 PM: VI. ELKO COUNTY LIBRARY BOARD OF TRUSTEES: Report and review of Board of Trustees activities and minutes including issues related to the operation of the County Library. The Law Library and Library Board minutes were previously submitted. Jeanette Hammons, Library Director, thanked them for their participation and support of the “Just Desserts” event. She reported the Battle Mountain Branch Library will be boxed up because Lander County would be re-painting and installing new carpeting. Jeanette Hammons stated they held 9 declaration signings for the Declaration of Right to Libraries and thanked the Commission for their support. She noted yesterday was National Library Legislative Day and there were many representatives from the State of Nevada present. There were five meetings held in Washington D.C. Jeanette Hammons stated they were successful with their LSTA grant and they have a link with two different sites on their web page for the individuals to access. She stated last month there were 13 story times with 560 attendees, two crafts with 24 attendees, Spring Eggstravaganza had 310 attendees and for the outreach program there were two story times with 89 attendees. She commented there were 3 student research groups with 27 attendees equaling 1,000 attendees for the youth programs in Elko. Jeanette Hammons 13,112 items were checked out during the month of April at the Elko Branch. She noted there were 23 meetings in their meeting room with 18,328 visitors in the month of April. Jeanette Hammons stated there were 1,682 internet sessions in April.

Commissioner Williams commended them on the Just Desserts event and inquired how many attended the event. Jeanette Hammons replied over 300 people were estimated. Commissioner Williams inquired how many signatures they obtained on the Petition for Declaration of Right to Libraries. Jeanette Hammons stated over 900 signatures were submitted. 2:12:10 PM: V. OIL & GAS EXPLORATION UPDATE: Update on Oil & Gas Exploration: Review of current exploration activities by Noble Energy in Elko County, including any issues effecting current and future projects. Kevin Vorhaben gave an overview of their exploration plans in Nevada. He reviewed the locations of their current operations and locations of their latest explorations. He noted their two onshore sites were in development mode and


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were in very active basins. Kevin Vorhaben stated these sites account for 60% of their domestic capital spend. He stated they were looking at Nevada for exploration and they have several legacy assets across the United States. Kevin Vorhaben stated presently they have 5.5 billion barrels of net risk, high quality resources across the domestic US west. Kevin Vorhaben stated in 2006 the shale plays emerged with horizontal drilling and hydraulic fracking. He commented hydraulic fracking was safe, responsible and noted shale production had increased domestic production. He commented upon the impact that North Dakota had upon the leases. Kevin Vorhaben displayed a map of the shale locations that have been discovered within the United States which lead to domestic production. He reported in 1923 Caitlin Shale Products Company Plan in Elko, Nevada attempted to extract oil from the shale so that led Noble to Nevada. Kevin Vorhaben reported that they would do hydraulic fracking but were not sure if it was horizontal or vertical play yet. He commented they had 372,000 net acres with 66% being fee title and 34% federally owned. He reported they have drilled two wells. Kevin Vorhaben noted the 3-D seismic surveys have been completed and their target range was between 6,000 to 12,000 feet deep. He stated in 2012 they cut a core in the outcrop and analyzed the data then they performed their 3-D seismic surveys in the field. He reported they drilled 2 wells in the Humboldt area and there was strong oil show. Kevin Vorhaben reported they fracked the first well in March 2014 and they had the landowners, NDOW, and NDEP present. He stated they were performing the second completion now and hoped to have that well completed at the end of May or beginning of June. He reported the team was working on the top side facility/tank installation for the first well. Kevin Vorhaben stated they were close to completion of the Huntington Environmental Assessment and the Mary’s River Environmental Assessment was out to public comment. Kevin Vorhaben understood the BLM was actively responding to the forty comments that came in. Kevin Vorhaben stated it would be later in the year before they bring in the rig because there was infrastructure to complete. He displayed a map of the Mary’s River area north of I-80. Kevin Vorhaben displayed the Huntington area map. Kevin Vorhaben commented upon the hard work of the individuals to get these permits out for them and noted some had given up their vacation days to get these projects completed because they were committed to the project. Kevin Vorhaben stated there had been participation with the State who had monitored every step on their wells and inspected the cement bond logs which was a lot of work. He commented there was a commitment from all the agencies involved to make this become reality. He expressed gratitude to those who made this come true. Commissioner Dahl inquired what percentage of the Mary’s River Project was upon private lands. Kevin Vorhaben understood it was close to 50% and they were cooperating with the BLM.


Commissioner Guttry inquired after they get production where was the oil transported and would it stay in the USA or go on the open market. Kevin Vorhaben stated it would stay in the United States. He noted there was a refinery in Nevada and a couple in Utah. He stated they need to get oil samples, assay those to find where best to ship for that oil type because each refinery was different in processing. Commissioner Guttry inquired where the Nevada refinery was located. Kevin Vorhaben replied in the Railroad Valley near Currant, Nevada. Commissioner Williams inquired when they would hear that they had discovered good oil. Kevin Vorhaben stated it would take a couple of more months. He stated on the conventional plays they could use log analysis but upon unconventional plays they look at the production to see if the production was commercially viable. He stated they were preparing the first well for testing. Harry Botsford had read a recent article on transportation issues back east where there had been several train accidents moving the oil. He inquired if it was worse than any other oil that they transport and would that impact their plans. Kevin Vorhaben understood that incident was up north and Noble Energy was not a player there. He does not anticipate any problems with transportation and they would use trucking. He believed the oil from here would probably be different than what they have in the Balkan. Harry Botsford noted they were fracking in the valley floor which extends from Canada to Mexico and inquired if they should worry about pollution from the fracking sites. Kevin Vorhaben stated with their hydraulic fracking they would publish their information on FracFocus so anyone could view the list of chemicals that were pumped into the ground. He noted they pumped 300 gallons into the ground on the first well and immediately flow it back up to the surface. Kevin Vorhaben believed 30% of that load water was recovered. Harry Botsford inquired if the chemicals were tagged to see where it goes. Kevin Vorhaben presented slides displaying horizontal wells and how they replaced several wells to reduce the footprint on the surface. He commented now they can have a smaller production pad and place shorter storage tanks for a better visual impact on the surface. He stated hydraulic fracking with water cracks the rock and leaves the sand in its place. He explained when they frac a well the fluid does not go a long ways off from the well. Harry Botsford inquired what happened to the water below if there were faults. Kevin Vorhaben stated their target was 6,000 to 12,000 feet below the surface so they were below any ground water. He noted their 3-D seismic image would show any large faults that were present. Kevin Vorhaben commented all their data has not shown any large fractures in the areas they were drilling.


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Harry Botsford inquired if the BLM monitored their images before drilling. Kevin Vorhaben replied yes and commented before they drill for oil wells they drill ground water wells and the sampling was analyzed by Desert Research Institute to give them a baseline water analysis of the entire basin. He stated under Senate Bill 390 the regulations require them to take water samples six months, a year and five years after they frac to give the public assurance that they were monitoring the ground water. Harry Botsford noted there were claims that fracking caused earthquakes. He inquired if they were fracking close to the two quakes they just had near Carlin. Kevin Vorhaben noted Noble was closer to Elko and were a long ways from Carlin. He stated they frac the well on the 17th of March and there was no earth quake activity post the fracking. Jill Silvey, Elko BLM District Manager, stated they were learning a lot and were working with Kevin Vorhaben and his team. She reported the Mary’s River EA was out for public review for two more weeks and they anticipate signing the decision around the 15th of May. Jill Silvey stated the Huntington EA would be out for public review in a few weeks and they anticipate similar comments as on the Mary’s River EA. She stated the Huntington EA should be finished at the end of May. 2:41:02 PM: VII. ELKO COUNTY DISTRICT ATTORNEY’S OFFICE: A. Discussion and consideration of approval of a retainer agreement between Thorndal, Armstrong, Delk, Balkenbush & Eisinger and Elko County for representation regarding a request for partial abatement of taxes filed by Ormat Nevada. Kristin McQueary stated a couple of months ago Ormat came back for an abatement that this Commission denied years ago regarding their geothermal project up north. She noted at the last State Legislative session they tweaked the law so Ormat came back and asked for the tax abatement again. Kristin McQueary noted this Commission turned Ormat down again. At the administrative hearing for the approval or denial of that tax abatement, the Deputy Administrator of the Department of Energy approved the abatement. She stated Lander County was in the same position and they also turned down both requests for abatement by Ormat. Kristin McQueary commented the Deputy Administrator held the administrative hearing because the Administrator for DOE was previously employed by Ormat. She had spoken to the Lander County District Attorney. She and Cash Minor have determined it was in the best interest of the County to file a lawsuit because it was over $400,000 a year in tax revenue. Kristin McQueary noted 60% of that revenue goes to the School District so they have involved Elko County School District representative Rich ELKO COUNTY COMMISSION REGULAR SESSION MAY 7, 2014 PAGE 8

Barrows in their discussions. Kristin McQueary has asked that the School District enter into an agreement to split the costs with Lander County for the attorney fees. She believes there needs to be a Petition for Judicial Review to be filed and they have thirty days from the decision which was made ten days ago. Kristin McQueary stated because it was a State agency and two counties were involved the lawsuit will probably be filed in Carson City and she asked the Board for authorization to retain this lawfirm closer to Carson City. Commissioner Myers noted it was a loss of over $400,000 with a $240,000 impact upon the Elko County School District per year. Commissioner Myers stated he, Commissioner Guttry and Robert Stokes held a telephone conversation with POOL/PACT and they felt this was the right thing to do. Kristin McQueary stated Brent Kolvet was a member of the firm they spoke with and has agreed to represent Lander and Elko Counties at POOL/PACT rates. Kristin McQueary stated Mark Torvinen had agreed with this representation. Commissioner Williams stated it was 2011 when they voted down the first request abatement and he understood it was 100% of sales tax for 3 years and 55% of property taxes for 20 years. He inquired if Ormat would get an abatement on sales tax also or just upon the property tax. He questioned if the DOE approved the abatement would the County have to reimburse the sales tax. Cash Minor stated they were just dealing with the property tax. He noted the State of Nevada had the authority to grant the sales tax rebatement which was granted but it had no bearing on the property tax. Commissioner Williams inquired if Ormat would receive a refund back from the State on their sales tax. Cash Minor stated there was no repayment on the sales tax. Commissioner Myers commented when it initially came before the Commission the abatement was not approved. He questioned how Ormat can come back over a two year period with the same application to gain approval for abatement. Kristin McQueary stated there were several troubling aspects of this application. She noted Elko County had the exact same legal argument as Lander County so it makes sense to join forces. Commissioner Gerber requested periodical updates on this case. Commissioner Williams felt the public should know the Commission does not have any personal animosity toward Ormat but the fact was the Board felt Ormat should pay their fair share such as the other contractors that come into the County that produce energy. Harry Botsford commented this issue started when the State decided that Ormat was doing renewable energy and moved them under what we, the private


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property owners who have solar systems and wind systems, did. He expressed concern that if the County objects to the tax exemption for Ormat that it may also affect the private property owners with regards to renewable energy abatement. Commissioner Myers noted that initially geothermal did not fall under the Energy Department. He explained the abatement for Ormat would not affect the private property owners because it was based upon the number of employees, the development, and the investment. Commissioner Myers stated after the Board disapproved Ormat’s application the State Legislature took exception to that and through a water process was able to move this under the Department of Energy. He stated their concern was the County already disapproved the application once and the application should have never come back to us. He noted the State approved that application and the County was appealing that through the legal process. MOTION: Commissioner Dahl moved to partner with Lander County and

retain Thorndal, Armstrong, Delk, Balkenbush & Eisinger to represent us regarding abatement of taxes filed by Ormat Nevada. Commissioner Gerber seconded the motion. The motion passed unanimously.

B. Discussion and consideration of the renewal of the use agreement for the Elko Sno Bowl Foundation – Elko County for a term of three years. MOTION: Commissioner Guttry moved to approve the renewal of the use

agreement for the Elko Sno Bowl Foundation and Elko County for a term of three years. Commissioner Gerber seconded the motion. The motion passed unanimously.

Kristin McQueary stated Roche Bush had sent her a note that they were working to get the Sno Bowl group under the City insurance umbrella. She stated if that occurred the agreement would change. Commissioner Dahl noted Commissioner Gerber previously was the pro bono attorney for that foundation. Commissioner Gerber stated they were in negotiations with the City and they may request modifications in the future but there were no signed documents at this time. 2:55:05 PM: IX. PUBLIC LAND MANAGEMENT / GRAZING ISSUES: A. Consideration of the authorization of a letter of invitation to Neil Kornze, BLM Director, to meet with the Commission to discuss northeastern Nevada public land management issues including: the elimination of grazing permits, wild horse management, the potential Sage Grouse listing and Sage Grouse management in northeastern Nevada. ELKO COUNTY COMMISSION REGULAR SESSION MAY 7, 2014 PAGE 10

Commissioner Gerber noted there would be a Resolution for passage at the next meeting. He suggested they send a letter to address some of those issues in the Resolution to Mr. Kornze. He noted other counties were looking at a similar Resolution and recognized time was of the essence. Commissioner Myers stated the Resolution was not an item for discussion. He believed there would be a different way to get the point across. He recommended a letter be sent drafted by Commissioners Gerber and Williams. Commissioner Myers suggested they list items of question to be discussed at the meeting with Mr. Kornze be placed within the letter. Commissioner Gerber suggested their concern about the wild horses ruining the southern part of the County and sage grouse was costing the County to be put into the letter to the National BLM Director. Commissioner Myers suggested elimination of grazing rights, wild horse management, central sage grouse listing, and sage grouse management in northeastern Nevada be put in the letter. Commissioner Guttry noted Neil Kornze knows the issues in Elko County and felt the Resolution should be reworded to be respectful. Waddie Mitchell stated the Commission was talking about being respectful but questioned why he should be respectful to someone who was going to point a gun at him over cattle or over a grazing fee that the BLM initiated. He noted the BLM had systematically taken more and more of the individual’s rights away. Waddie Mitchel commented there had been bad actions taken due to political correctness. He noted they have proven to us what they were willing to do. He remembered the Sage Brush Rebellion and the agency reactions. Commissioner Myers noted this Board historically over the last 12 years had been very point blank and did not believe the Board had been disrespectful. He stated they hope to address all the issues that were of concern. Commissioner Myers stated no one on this Board thought what happened in southern Nevada was the right thing to happen. Commissioner Williams appreciated Waddie Mitchell’s comments but it was important to recognize no matter how we were treated by others we have the responsibility to handle ourselves in appropriate, dignified way and not stoop to the adversary level. Commissioner Dahl made it through the Forest Service travel management hearings and they did not tolerate rude behavior. He noted they did want some answers and wanted to know that we were being heard. Commissioner Gerber stated he drafted the Resolution and four other attorneys had looked at it so he did not believe the Resolution was disrespectful. He stated it was to ask Director Kornze to come and address the issues. He hoped the letter would contain those issues listed in the Resolution.


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Rachael Buzzetti, representing six State grazing boards, stated she respected the Tomeras and Filippinis who tried to cooperate with the agencies. She noted they were backed into a corner and encouraged the Board to give it lots of discussion, thought and thanked them for their support. John Carpenter noted it was his suggestion to invite Mr. Kornze because he was the only one to resolve some of these issues. He believed Mr. Kornze needed to come here and find out what was happening here. John Carpenter stated it was a serious situation because people were losing their livelihoods their grazing permits, and there was no cooperation with the BLM. John Carpenter commented he previously ran in four BLM districts in Nevada and 2 districts in Utah for thirty years and always could work things out with the BLM and Forest Service. He noted they were at an impasse in some of these situations and the only one that can resolve this was Mr. Kornze because he was the Director. John Carpenter noted this Commission has always been tough when it came to protecting the people of the County. Commissioner Dahl stated he had heard one of the Tomera family members stating they had worked with the agencies trying to get along. In January of 2009, when the Forest Service came to us, said they wanted to do a Travel Management Plan, and did not anticipate closing roads. Commissioner Dahl noted the County signed on as a coordinating agency and then they found that the Forest Service closed a lot of roads. He stated the Board tried to work with the Forest Service and hired a mediator from the local college. Commissioner Dahl stated there were 104 contacts documented with the Forest Service between January 2009 and May of 2011 to coordinate with them. He noted Rachael Buzzetti stated at some point when you can’t work it out and get backed into a corner you have to stand up and protect your interest. MOTION: Commissioner Williams moved to draft an appropriate letter to

Mr. Neil Kornze, BLM Director, to invite him to come and meet with the Commission to discuss the issues we have in Elko County.

Commissioner Guttry agreed and it should include all the issues that Commissioner Gerber included in the Resolution.

Commissioner Williams amended his motion to an appropriate letter written by staff that everybody would have a chance to read before it is sent

Commissioner Myers suggested a signature block for Assemblyman Ellison on that letter. Commissioner Guttry seconded the amendment. The motion

passed unanimously.


Rachael Buzzetti, of the central state grazing boards, commented their grazing money was not being passed down and their Chairman of the grazing board spoke to Neil Kornze. She suggested the Chairman of the Board call Mr. Kornze, invite him personally to Elko to get a more timely response, and alert him a letter was coming to him. Rachael Buzzetti noted this grazing issue was an important topic to discuss with Mr. Kornze and it was a timeliness issue. Commissioner Myers stated he and Robert Stokes would make that call. B. Discussion and consideration of an anecdotal report by Craig Spratling, NRMAC Board Member, that the BLM Battle Mountain District Office collected information on grazing allotments in Elko County in an attempt to advocate for the elimination of grazing permits in Elko County. Craig Spratling, a member of NRMAC and rancher in the Deeth area, stated he was asked to speak about his relationships with Doug Furtado, Lander BLM District Manager. Kristin McQueary asked that the conversation be generic because of the Open Meeting Law and the people may have not been publicly noticed. Commissioner Guttry suggested that Craig report upon the BLM Battle Mountain District actions in generic terms. Craig Spratling reported many of those permittees over the last month or so in accordance with the drought EA were required to go out with a member of the BLM staff to tour their allotments to determine the readiness of allotments. Craig Spratling stated they tried to mitigate the issues by reducing numbers, going out later because of the last few years of drought. He stated they had one allotment that was in rest rotation and the field had some residue grass left in that particular pasture. Craig Spratling stated they scheduled a meeting to go out and look at that particular field because in the first part of April was when they normally turn out. He noted most of the allotments were not looking great through the drought so they tried to hold off hoping that the rain would come along and they may have a better proposal with the late rains. Craig Spratling stated after looking at the first allotment they scheduled 10 days later to look at the remaining allotments to develop a plan of action. He noted when they arrived at the allotments they were told there was a change of plans and they would have to have pictures taken of each of those allotments so that those could be brought back to the office so staff could view those pictures to determine if it was okay what they were planning to do. Craig Spratling commented this determination was partially due to the actions of the BLM Battle Mountain District Manager taking the drought EA more to heart than the other districts. He noted the Battle Mountain District Manager had been imposing more severe actions to deal with the drought. Craig Spratling stated it was made known to him that


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people from the Battle Mountain District had been to other districts documenting the conditions of other allotments in those other districts including the Elko District and that they may have targeted other areas that did not look too good. Craig Spratling stated the motives behind this action were unknown to him. His speculation was the BLM Battle Mountain District was enforcing more restrictions than the Elko District was to make the Battle Mountain District look better. Craig Spratling was told that the Elko District would have to have more evidence to back up their decisions. Craig Spratling stated it was his opinion that these actions were taken because of the actions taken by the Battle Mountain District Manager. Commissioner Williams inquired if Craig Spratling had spoken to the District Office here in Elko about some of the other districts coming into Elko to discuss what was on the grounds in Elko County. Craig Spratling stated he did not go to the Elko District and did not want to reveal who told him that others had come into this district. Commissioner Gerber was concerned that someone from the BLM district in Lander wanted to influence the Elko BLM District. He noted in Clark County there had been 52 ranchers grazing and the remaining rancher was in great duress. Commissioner Gerber stated it was hard to follow the Open Meeting Law and continue with this discussion because this issue was detrimental to the Elko County. He noted Elko County came out better in the Travel Management Plan than other counties because of their opposition. Commissioner Dahl inquired if the Elko BLM District representative would like to speak to this. Commissioner Myers was concerned if another BLM District Manager was looking at grazing allotments in the County without the Elko District Manager knowing of that action. Jill Silvey, Elko BLM District Manager, commented other District Managers travel through the Elko BLM District and she traveled through other districts. She stated if another District Manager saw something concerning them they do call her and she discusses that with her staff. She had called BLM Battle Mountain District and asked if anyone from that District was here collecting data with specific intent and was told by the Battle Mountain District Manager that he had not authorized any BLM employee to collect any sort of data in Elko District. Jill Silvey stated there had been no discussions of closing any specific grazing allotments. She reiterated that their strategy was to go out with permittee ahead of time and look at what the ground can sustain and they come up with a use agreement. Jill Silvey stated they may have to write some decisions this year to document them but the permittees would be informed. She stated they were working cooperatively as much as they can with all the permittees. Jill Silvey


reminded them that this was the third year of a drought and every year the plants become less resilient. She noted there was a possibility of long term degradation. Jill Silvey stated could not speak for other District Managers but State Director Amy Lueders has directed us to follow the laws and regulations as they exist including the drought EAs as wells as the ten year permits. Jill Silvey noted they have a long range goal in mind and was working with the permittees. Commissioner Guttry stated there had been a couple of drought cycles in Elko County. He noted in talking to the Pine Valley Ranchers in the past these grazing permits have been worked through with cooperation with the BLM. He inquired if Jill Silvey had ever looked a ranching family in the face and told them their allotment was gone. Jill Silvey replied she had not and she did not take that responsibility lightly. She understood that her decisions affected livelihoods and not just to the ranching community. She stated they were working hard not to have those discussions. Jill Silvey commented she did not know specifically what happened in this instance, was not there, did not know what the land was like and did not know what transpired. She said in Elko County they were working with the permittees and would work within the scope of her authority and ability to make sure that we were grazing with the long term goal in mind. Jill Silvey stated if they eliminate the feed year after year, then in the long run they end up with nothing. She knew everyone here wanted healthy landscapes and healthy ecosystems. Jill Silvey commented over the 20 years she had been working for the BLM it was easy to have different ideas of what the landscape should look like and how it was to function. She stated when they were out in the field with the permittees, the range conservationists, and the environmentalists each had their different opinions as to the ecosystem functions and upon the amount of forage that was available. She had held discussions with horse advocates about the forage because the forage was things the horse would not want to eat so there were some uninformed discussions. Commissioner Guttry stated he and Rob Stokes had met with Jill Silvey and Congressman Mark Amodei. He noted Jill Silvey told them at that time they had up to 40% reductions on their allotments in the Elko District and those reductions were voluntary. Jill Silvey stated they were all voluntary non-use and she anticipated voluntary non-use this season and they would document that with a decision. Commissioner Guttry noted the BLM strategy was working here but not working in other districts so that was the Board’s concerns. Commissioner Williams disclosed that he called Jill Silvey three days ago when he received the agenda and had asked her to check into this issue of


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whether there had been Battle Mountain District people in the Elko District making recommendations to her. Jill Silvey stated she had called the Battle Mountain District after Commissioner Williams had left his message. Commissioner Williams noted the Board usually receives a letter from the BLM if there were major changes upon an allotment. He inquired if there would be any changes to Craig Spratling’s permit. Jill Silvey replied she could not speak on a specific permittee. Commissioner Gerber noted earlier in her comments she said the Elko District may write decisions this season. He inquired if she may write decisions this year to put ranchers off into the future. Commissioner Gerber further inquired if she was going to write a decision that would put a rancher off an allotment or reduce him significantly would she alert the Elko County Commission and land board in advance. Jill Silvey replied in the affirmative and stated the average 42% non-use was across Elko District but some individuals took 100% non-use and others took 100% use so it was an average. Jill Silvey did not believe at this moment they would force someone off involuntarily. She stated the permittee may choose non-use as their grazing preference this season because of the environmental conditions. Commissioner Gerber had dealt with grazing issues during most of his life. He noted in some cases the ranchers were told if they take voluntary non-use the District would not cut the rancher even more. He noted that action had occurred in other Districts so he questioned if it was truly voluntary. Commissioner Gerber questioned why the BLM was involved because the rancher would not turn out if there was insufficient grazing. Jill Silvey explained the term “cut” implies that they have somehow altered of permit to reduce the AUMs allowed but non-use meant the individual had the same grazing permit with the same amount of AUMs available but were choosing not to actively use those AUMs because forage was not available for that cow. Craig Spratling stated he was not personally affected on their allotments and the BLM had allowed them to do voluntary cuts because the grass was not there. Commissioner Myers voiced concern with someone coming in from another area to justify what they were doing in their area. Commissioner Guttry commended Craig Spratling for coming in. Waddie Mitchell commented he had heard the terms “privilege and permits” being used because they started using those terms. He noted that doesn’t mean that a permit was not a right. He explained when you buy a ranch you buy the grazing rights. He stated let’s not call them “mustangs: they were feral horses.


Waddie Mitchell commented anyone outside of the public meetings that did not understand the language heard those words. He noted generations had heard the word “public lands” but in the past it was “federal lands”. Waddie Mitchell stated when they speak about “public lands” or “wild horses” this was misleading the public. Eddyann Filippini stated they were grazing permittees in the Battle Mountain District and they had three allotments. She reported last May the Battle Mountain District issued them a decision that they were closing the North Buffalo and Copper Canyon and they were forced to remove all of their cattle in 100% heat. Eddyann Filippini stated they were now in the Argenta allotment and that allotment was facing some closures as well. She reported there was a permittee meeting on February 20, 2014 at the Battle Mountain District Office and the District Manager was there along with the permittees. She noted the District Manager’s words were “it is the worst drought in 500 years in our district”. Eddyann Filippini stated when the discussion came about our general allotment; it would not be used except for the flat area. The mountain area and the benches would not be used this grazing season because it needed a rest. She noted the drought triggers were met and they were told the allotment needed a complete rest. She stated a question was asked why the Winnemucca, Elko, and White Pine District Managers were working with the permittees to keep them in business. She noted Doug Furtado replied they were not doing their job. She said Doug Furtado told them the District Manager’s job according to the Drought EA was that they shall and will protect the resource. Eddyann Filippini stated she respected the Elko District Manager coming to the podium and saying she was working to keep people in business. Eddyann Filippini stated at the February meeting their District Manager informed them he had made seven full force and affect decisions in the Mount Lewis Battle Mountain Field Office. She questioned if this was the worst drought in 500 years and who determined when the drought was over. Commissioner Myers inquired if the Lander County Commissioners were involved. Eddyann Filippini stated not very much but it was upon their agenda as a discussion item tomorrow. Commissioner Myers inquired when a federal agency makes a decision was there an appeal process. Eddyann Filippini stated they were within the appeal process now and would be heard before the land board. Commissioner Myers inquired if it would be heard and acted on before it was too late for their ranching operation.


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Eddyann Filippini replied probably not. She commented her Father-in-Law was in a lawsuit several years back and won but the BLM never let him go. She noted it was like the Hages they never let you go. Eddyann Filippini commented the BLM should be working with us and not trying to bury all of us. She stated this was a social economic issue. She stated they were fifth generation Nevada ranchers and they would fight to keep this life. Commissioner Dahl inquired clarification if the closed allotments would remain closed one year after. Eddyann Filippini clarified the decision was the remainder of the drought and one more growing season so there was not a distinct timeline. Commissioner Dahl noted someone would have to make the decision that the drought was over and then they would have to wait one more year to graze. He commented in her experience on the range she knew they could have a drought year and they could get the May rains which brought the range back. He stated it was true a range scientist could say they were in a drought but with the rains they could have one of the best years they have ever had that starts late in the spring. Eddyann Filippini stated that was correct this was Nevada, the high desert and a few rains or snowstorms and it looks like heaven. She noted because it was green it was a resource not because it had a rest. Commissioner Gerber believed they were looking at the Department of Agriculture designation and it has not been lifted even though the rains were in. He stated if they do not lift that designation until September or October then effectively they could be off their allotments until 2016. Commissioner Dahl commented then it would burn and they would have to have two years recovery. Eddyann Filippini stated it was mentioned at the permittee meeting that our District Manager was managing for wildfires. She noted there was bigger money for wildfires than from grazing rights and running livestock on the range. Commissioner Williams understood their grazing board met to appeal this decision. He inquired if they requested State BLM Director, Amy Lueders, to come and bring range scientists outside of the District to deem if what was happening was appropriate or fair Eddyann Filippini replied they have not. She had attended a Land Council meeting in Winnemucca where Amy Lueders spoke and she spoke the same words that the Battle Mountain District Manager had spoken. Eddyann Filippini encouraged the Commission to speak to Director Kornze. C. Discussion and consideration of potentially joining a planned Tour with the Lander County Commission that is scheduled for the morning of May


17th of the Tomera and Filippini grazing allotments District that have been eliminated in the BLM Battle Mountain District. Hank Filippini stated his family has run cattle since 1870 and they never once hurt the resource because they knew when to bring the cattle in. He commented the BLM does not need to tell them when to bring them in. He stated the District Manager wants to be God so they need help from everybody. Commissioner Guttry noted Dan Filippini had ran cattle for a long time in the same allotments and asked if this drought differed from the past droughts. Hank Filippini replied this was a drought but he had seen worse droughts and they never have hurt the resource. He stated they do not want a poor cow that dies because it was their livelihood. Commissioner Williams felt Amy Lueders should be contacted on this field trip so she can see the same thing they do. Pete Tomera agreed with Eddyann Filippini and Hank Filippini. He stated currently the BLM will not allow us to graze in the mountains within the Argenta unit. He displayed a map showing ownership on the 365,000 acres. He noted the permittees in the Argenta Unit lease or own 50% of all the land in the District. He noted the white colored lands were railroad lands leased by the permittees so they have the controlling interest of the allotment. Pete Tomera stated when they held that meeting he was told by the District Manager that they could run cattle in the north end by the freeway. He stated they had 600 cattle that they normally turned into the allotment on March 15th but the District Manager changed that to April 1 so they agreed to that. Pete Tomera stated in the past they ran in that allotment to July 15th but the District Manager stated that interrupted his program of hot season grazing and they want the cattle off the area by the 30th of June. He stated they usually moved the cattle into the hills. Pete Tomera commented the District Manager would not allow any cattle on any riparian after the 30th of June and they do not have anywhere to take the 600 head of cattle. He stated they had to build 16 miles of fence. He stated they have always run their cattle on the flat in the spring. Pete Tomera stated the first of June those cattle have to go up in the hill. He commented the permittees own all the stock watering rights in that Argenta Unit dating back to 1862. He noted the permittees had irrigation rights with maps showing irrigation ditches made in 1869. Pete Tomera stated this ranching operation has been there since 1862 which was two years before Nevada became a state. He stated cattle had run there every year. He noted there were 182 miles of creeks in the Argenta Unit, 70 springs and 12 wells all with water rights recorded with the State. Pete Tomera stated the federal lands were like bundle of sticks because each of these rights were separate from federal lands: the mineral rights, the easement rights, the water rights and grazing rights. He noted all of these rights were bought and sold within a ranch’s


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purchase price. Pete Tomera stated when the grazing rights were cut it reduces the value of the property. He stated each of the rights were private rights and questioned what authority the District Manager had to take those private rights away. Pete Tomera stated in the past they have always taken non-use AUMs. He reported last year they took 8,000 AUMs in non-use. This year they came up with a plan that we have 11,000 AUMs under non-use and the District Manager closed the allotment so they don’t know where to go with the cattle. Pete Tomera commented the terrain in the Argenta Unit was very steep but there were springs high on the mountains so the cattle go up on the mountains to get to the springs. He stated in the fall they have to go up high to gather the cattle. Pete Tomera stated if they left the allotment ungrazed by the end of summer the lightning storms would burn the area and destroy wildlife and habitat. He stated erosion would become the next factor because of the steepness of the terrain. Pete Tomera stated that ground needs to be grazed and they had taken non-use so they were not activating their full permits. He stated it was sage hen, deer and various wildlife habitat. He noted they took a preliminary tour with some of the people here to see the good feed. He wanted the public to view the area on May 17th to see the good feed and noted they had reduced numbers and they have sold a lot of cattle. Pete Tomera voiced appreciation to the Board for listening to them. He stated this fight was not just about the Tomera and Filippini families but people in the western United States that depend upon federal lands for livestock grazing, mining interests, hunters and recreationists. Commissioner Gerber disclosed that he represented the Tomera Family on water rights issues in the past. He could not represent them on this issue but would donate his time. Commissioner Gerber stated if they looked at the maps it seems so unfair unreasonable and dishonest that this was occurring. He suggested to Lynn and Pete Tomera to show on the map where the waters were because they virtually own all the waters on that mountain. Pete Tomera showed the water designations on the mountain that they have Nevada water rights upon a map. Commissioner Gerber stated the Tomera and Filippini families either own or lease all of those grounds and the Tomera’s have the water rights. He noted if the federal Judge Jones’ decision was utilized in this case where if you took a half mile circle from all of the waters then it would encompass the whole area. Commissioner Gerber stated these families have been there for 150 years and Hank Filippini said this was not the worst drought he had seen. He noted the rains have hit the Country and when they viewed the area last week there was a large amount of feed on that mountain. Commissioner Gerber stated there was a public tour on the 17th of May. He stated the previous tour was also attended by two of the Lander County Commissioners, the Tomeras, and John Carpenter


because Mr. Carpenter knew the country. Commissioner Gerber stated the participants of that tour agreed the cattle should be turned out. He noted Pete Tomera told them if that was not grazed this year there was a possibility of the whole area could burn and drive the Tomeras either to a tiny operation or out of business. Assemblyman John Ellison commented his biggest fear was hearing “non-use”. He stated historically in the State of Nevada every time there was non-use there was a major reduction. He stated there had been recent snow and rain in this area and Senator Pete Goicoechea stated they had received precipitation in the mountains. He voiced concern that if the ground was not grazed it would burn. Assemblyman Ellison suggested Randy Brown gather the history of what the vegetation was compared with vegetation today. He noted the BLM kept saying it was the worst drought over 500 years but they have records and those should be reviewed. Assemblyman Ellison commented in 1946 the BLM was formed but in 1862 the Tomeras were already in the area. He believed the people that had been on the ground for 150 years had more experience than the people back in Washington. Assemblyman Ellison would like to attend the meeting tomorrow in Lander County. He cautioned what happened in Battle Mountain may happen in Elko so they need to look at it as a State issue. Commissioner Myers inquired if Senator Goicoechea would attend the tour on the 17th of May. He commented it seemed that there were situations all over the State and he felt it was leading up to the sage grouse. Assemblyman Ellison stated if it was not the sage grouse it would be the yellow spotted frog, etc. He noted they have lost focus and felt they should get back to the roots of the country. Commissioner Williams felt this was the proper process to use to bring this to the forefront. He inquired if Lander County had invited them to support them on this issue. Commissioner Gerber stated when he was on the previous tour with the Lander County Commissioners; Chairman Garner commented they wanted Elko County to work with them and knew the Elko County Commission was coming on the 17th of May. Commissioner Williams supported Lander County and felt it would show a united front to make a point and hopefully to help a change to take place. Pete Tomera stated the tour would start at their ranch at 9:00 a.m. on the 17th of May. He noted their ranch was 10 miles South from Battle Mountain and suggested four wheel drive vehicles because of the terrain. Commissioner Williams suggested a staging area here at the County offices to travel to the tour.


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Jill Silvey, Elko District BLM Manager, had heard the comment that whenever there was a reduction it becomes a permanent reduction. She had researched the actual reductions in the Elko district and since the adjudication of the range in 1937 they have taken 8% reduction. Jill Silvey commented the BLM became in existence in 1946 but it was a union between the Grazing Service and the General Land Service. She stated the Grazing Service was established to adjudicate the range because there was no established preferential right and that was why the Grazing Service was established. Commissioner Gerber had heard that 8% reduction since 1937 by the BLM employees in the past but a private study performed at the request of the County indicated Statewide there was a 50% reduction and a significant amount of that reduction was in Elko County. He stated in his experience with representing the local ranchers he believed grazing reductions in Elko County were higher than eight percent. Jill Silvey stated if that figure was incorrect then she would like to see the data and would be more than happy to reconcile that. Commissioner Gerber noted there was a big sheep reduction also and the study indicated both BLM and Forest Service. He commented the reductions may have not been on BLM but the ranchers knew there had been a cut more than fifty percent. He stated in 1982 the Carpenter ranch took more than a 50% cut but they were able to reduce that amount. He stated at the end of 10 years that ranch did get a big cut. Commissioner Dahl believed the suspended AUMs were still being counted as being there but they were not actually used for over twenty years. Jill Silvey stated the suspended, non-use AUMs were counted. John Carpenter invited everyone on the tour on the 17th of May. He stated Amy Lueders, Neil Kornze and all the District Managers would be invited because they wanted them to see what was happening down there. He reported the grass was there and the good rains came so the grass should be better. John Carpenter stated the Tomeras spent between $80,000 to $100,000 to build the 16 miles of fence on the bottom of that mountain to keep cattle from going up too early. He noted it was mentioned the 1936 date was when the BLM Battle Mountain District was established but in 1932 the other districts were established. 4:29:53 PM: RECESS: Chairman Myers called a recess at 4:29 p.m. 4:44:52 PM: RECONVENE: Chairman Myers reconvened the meeting at 4:44 p.m. ELKO COUNTY COMMISSION REGULAR SESSION MAY 7, 2014 PAGE 22

4:45:30 PM: X. WELLS HIGH SCHOOL FUTURE FARMERS OF AMERICA (FFA) CHAPTER: Sage Grouse presentation to the County Commission by student members of the Wells FFA Chapter, Wells, Nevada Combined Schools. Don Noorda, Wells Agriculture Teacher, commented their FFA Environmental/Natural Resource Team gave a presentation on sage grouse to the School District and Commissioner Williams requested that they give their presentation to the County Commission. Drew Kelley, a member of the Team, began the presentation regarding enhancement of sage grouse habitat in the county by responsible property owners. He noted sage grouse require a diverse habitat of sage brush, grass lands and riparian areas. Drew Kelley commented the leading cause of reduction for habitat was fire and spoke upon population decline from predators such as ravens, coyotes and badgers. Macrae Meyers stated sage brush provided essential food and shelter for the sage grouse. He noted the young chicks have to eat forbs and insects in the riparian areas and once they were grown they get in the sage brush for food and protection. He stated the sage grouse habitat was impacted by fires and motor vehicles can cause fires. Macrae Meyers commented it was important that the ranchers keep the cows out to graze on public and private lands to reduce the biomass fuel that feeds the fires. He stated the ranchers could also create mosaics with the sage brush to enhance the habitat for the sage grouse. Peyson Uhlig stated they could enhance sage grouse population by predator control. He stated they need to keep the predator numbers low enough to where the population of the sage grouse supersedes those that die. Peyson Uhlig commented the number one predator was the raven who wreaks havoc on the nests and chicks. He noted the landowners cannot eliminate the raven problem because the raven was a protected species under the Migratory Bird Treaty Act. Peyson Uhlig stated the Nevada Department of Wildlife allows 2,500 permits which allowed agents to lay baited eggs to reduce the ravens’ numbers. He stated they could watch what they dump in open pits. Peyson Uhlig reported coyotes and badgers were easier to manage because they could be hunted year around through trapping and calling. He noted without much habitat coverage the predators can decimate the sage grouse populations. Macrae Meyers stated they need to keep habitat secure and it was his opinion that cattle and sheep has nothing to do with the sage grouse. He stated it was import to keep predator levels down. Commissioner Myers stated the Wells FFA understand it but the federal agencies do not understand. He noted they hit on the sensible points of cover, feed, water, and predator control. Commissioner Myers noted the County


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Commission said the same thing and wished the FFA could give this presentation all over the State. Commissioner Williams inquired where the Wells FFA got the information to make the presentation. Macrae Meyers stated a representative from the NDOW office who was a range biologist gave them a lot of information on the sage grouse populations and they researched on their own to branch out to the different topics. Commissioner Gerber thanked them for the great presentation and invited them to come to the Devil’s Gate Pilot Project to view what the Commission was doing. He noted this was the only project that was on the ground in the eleven states that was would be effected by the listing. Commissioner Gerber stated they would like to show them the projects also at the South Fork Indian Reservation and in Clover Valley. Commissioner Dahl inquired if the sage grouse was being managed for the preservation of the species or its habitat. Drew Kelley stated the actual sage grouse numbers were not that bad but when the habitat continues to be reduced then the bird would get listed. Commissioner Dahl inquired if they knew what the number was to push the sage grouse into the endangered category. Drew Kelley was unsure about the number but stated the sage grouse was prevalent in Nevada. He stated their habitat was the leading concern because of its reduction. Commissioner Dahl inquired if he felt the amount of habitat was the same as in the past. Drew Kelley replied no because a lot of the rangeland had been burned by fires. Commissioner Williams stated what they were seeing here was indicative of what they should be seeing in public schools throughout the United States. He stated if they want to change what the government was doing then they need to start in the schools so the teachers could teach the correct principles. Commissioner Williams stated these students represent what this Country should look like. Macrae Meyers inquired about dates for the tours of the pilot projects. Commissioner Gerber suggested they exchange e-mails to find dates available. He noted when it was spring the sage grouse go out on the alfalfa pivots so they would see more sage grouse. 5:01:11 PM: VIII. ELKO COUNTY CODE: A. Discussion, consideration and First Reading of proposed amended Elko County Ordinance 2014-09, Bill I, entitled, AN ORDINANCE ADDING NEW TITLE 8, CHAPTER 2 TO THE ELKO COUNTY CODE ALLOWING THE ELKO COUNTY COMMISSION REGULAR SESSION MAY 7, 2014 PAGE 24

USE OF OFF-HIGHWAY AND ALL-TERRAIN MOTOR VEHICLES ON DESIGNATED COUNTY ROADS, SETTING PENALTIES FOR VIOLATIONS THEREOF, AND ALL OTHER MATTERS PROPERLY RELATING THERETO., which creates new Title 8, Chapter 2, to allow the use of off highway and all terrain motor vehicles on designated county roads. Randy Brown received an Opinion from the Legislative Council Bureau regarding the helmet requirement and he and Kristin McQueary came to the conclusion that the larger ATVs would not need helmets but the open air, handle bar, smaller ATVs would require helmets. He noted that Kristin McQueary suggested they define the types of ATVs in the ordinance. Randy Brown stated staff recommended they table the Ordinance until the mid-month meeting. Commissioner Myers suggested that they take public testimony. Kristin McQueary commented they could take public testimony. She noted the way the Ordinance was drafted they did not have the large all-terrain vehicle defined separately which had specific requirements. Commissioner Myers inquired if they could set a penalty of 50 cents for not wearing a helmet on an open ATV. Kristin McQueary stated the Commission could but the fees associated with the conviction would be more than that. She noted the fee would depend upon who pulled a person over for the violation and where they pull them over. Kristin McQueary stated the law allows the Commission to designate portions of the State Highways as part of their routes but if a Nevada Highway Patrolman sees someone riding an ATV on a State Highway without a helmet he could cite the person under State fees. She commented the Sheriff’s deputies could cite someone on a County dirt road under the County Code. Randy Brown stated this was a moving violation with relationship to citations affecting your driver’s license. He noted in the State law there was no requirement to have a driver’s license to operate an ATV. Commissioner Dahl stated he was not here for the initial reading and would like to speak his concern on the helmet law. He noted in Starr Valley they were on a State Highway and on County roads to get from one field to another. He questioned where personal responsibility entered into this. Commissioner Dahl stated if they were going to require helmets on an ATV when irrigating should they require helmets when they were horseback. Kristin McQueary stated the helmet law was the most clearly written part of NRS 490.130. She read from the NRS as follows: “The operator of an off-highway vehicle that is being driven on a highway in this State in accordance with NRS 490.090 and 490.130, inclusive, shall: 1. Comply with all traffic laws of this State; 2. Ensure that the registration of the off-highway vehicle is attached to the vehicle in accordance with NRS 490.083 or a special plate issues pursuant to NRS 490.0827 is attached to the vehicle; and 3. Wear a helmet.” Kristin McQueary stated the County had been given delegated powers by the State Legislature. She noted the State Legislature has not delegated the County authority to take away the State helmet law.


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Randy Brown explained that Assemblyman Ellison went to the Legislative Council Bureau for interpretation on the helmet law. The LCB interpretation was a side-by-side was exempt from the helmet requirement. Kristin McQueary stated that ATV type has to be registered as a motor vehicle in the State. Randy Brown stated the open air handle bar type ATVs required helmets. Commissioner Guttry stated when they had their First Reading it did not include helmets but this came after they approved the First Reading. He stated they wanted to designate roads so people from Jarbidge and Midas could ride their ATVs to the store and back to their house without breaking the law. Commissioner Guttry noted this new law put a wrinkle in everything and they could either drop the whole thing or let the people do what they have been doing because if they have to impose a helmet law along with the designated roadways ordinance then he would not buy into it. He did not think a lot of the people would support it. Kristin McQueary stated helmets were mentioned in the First Reading and after she looked at the law she changed it to conform to the State law. She stated the Board could take the penalty out of the County Ordinance and let any law enforcement officer if they so desire cite under the State Code. She noted any fines, fees, and forfeitures would go to the State and not back to the County. Kristin McQueary stated if they were caught on a public highway without a helmet the law enforcement officer could cite them under State Law. She stated they do need the ordinance to designate the routes under the State Law. Kristin McQueary stated the helmet portion under NRS 490 was in place prior to the 2013 legislative session but had not been enforced. Commissioner Guttry inquired who initiated the Ordinance and for what reason. Kristin McQueary stated this initiation came from people who wanted to ride upon County roads. She stated their initial draft of the Ordinance came from another County but they did not look at the statute closely so she had rewritten it to conform to the law. Commissioner Myers suggested they drop the helmet portion out of the County Ordinance. Randy Brown did not agree with Kristin McQueary and felt the helmet law did not apply to ATV’s that it was written for motorcycles. He had read several cities’ and counties’ ordinances and helmets were not required for ATVs. He believed as a safety issue the Commission strongly encourages the helmet use. Commissioner Myers stated when Senator Goicoechea initially put the bill draft in it was to allow a rancher to go from one side of the State Highway or county road to the other side to get into another field. He did not think anybody would think the original intent was for the rancher to put on a helmet to drive across the highway. Kristin McQueary stated in the statute that gives the authority to allow ATVs use upon public roads was Chapter 490 and the Chapter title was “Chapter 490 ELKO COUNTY COMMISSION REGULAR SESSION MAY 7, 2014 PAGE 26

Off Highway Vehicles” she noted there was another section for motorcycles requiring a helmet under another statute. She reiterated the helmet regulations has been in the law but obviously was not enforced. Commissioner Williams had received numerous calls on this ATV ordinance and the public assumed he was pushing a helmet law. He believed the Commission needed to follow the law and follow what the people desire. Commissioner Williams believed this law was unenforceable in most circumstances. Kristin McQueary stated it was already in the law. Commissioner Myers believed it should not be in the Elko County Code. Commissioner Ellison stated he was a co-sponsor of Senate Bill 343 and the bill was to resolve issues out there. He stated they were not talking motorcycles or four wheelers; they were talking about side by sides. Commissioner Ellison explained NDOT stated they could not license small utility trucks or sides by sides. He noted there were some side by sides that drive from Lamoille to Spring Creek which they can drive on public highways if they were licensed, insured and they were exempt from helmets. Commissioner Ellison stated the Legislative Council Bureau ruling says the helmet law did not apply to large all-terrain vehicles registered with the Department of Motor Vehicles. He commented the small utility trucks got 50 miles per gallon but the State of Nevada decided they could no longer register them so the Legislature was trying to correct that. Commissioner Myers inquired if the County passed the Ordinance, took out the helmet wording for the State to enforce it, then does that cover those UTVs. Commissioner Ellison replied that would correct it and the small trucks could be registered. Commissioner Myers noted there were maximum speed limits mentioned in the law, most ATVs were maxed at 30 to 37 mph but the small trucks travel at 60 to 70 mph. Commissioner Ellison stated Assembly Bill 343 requires insurance, license, blinkers and was limited to the speed limit. Commissioner Myers stated the problem was AB 343 was passed but the County was bound by NRS 490.130. Commissioner Ellison stated AB 343 supersedes that and Subsection 2, NRS 495.020 dealt with motorcycles not ATVs. He stated each County can pass its own ordinance to license the small trucks. Commissioner Myers noted in the Ordinance they designate routes. He had discussed this with Harry Botsford prior to the meeting and Harry suggested the County mark the roads for ATV. Commissioner Myers recommended they make the County an ATV County and just mark the roads that cannot be used because it would be less expensive. Commissioner Ellison commented the Bill stated they could legally go on any roadway or highway except a freeway.


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Commissioner Williams recommended that the County make the maps more user friendly than the Forest Service did with their Travel Management Plan. Commissioner Guttry stated he was confused before and did not understand because he thought this Ordinance was for the handle bar type ATVs and sides by sides with no license plate. He stated this makes sense that they would be registered vehicles only. Kristin McQueary suggested they table this Ordinance until everyone understands. She explained the exclusion for wearing a helmet was only for the large all-terrain vehicles including small mini pickups. She stated they would have to amend their definition to mirror the State law. Kristin McQueary stated the definition of highway was in the NRS. She noted the smaller ATVs were still required to wear helmets and it had been law prior to 2013 but had not been enforced. Commissioner Williams noted the large vehicles that had rollover protection and seat belts were not required to have helmets. Harry Botsford stated when they fold down the roll over protection the seat belts come off. He noted that was a federal requirement. He believed the helmets were covered in State law and nothing should be in the County regulation, keep it simple. He had suggested not to designate roads just make all County roads other than paved road open to ATVs. Commissioner Williams stated in the original law only covered the minor roads and general County roads; that did not cover major county roads. He stated they have a mix of major, general and minor County roads. Harry Botsford stated the original intent was where they could take their ATVs. He bought a Gator side by side to go to the grocery store or to the mail box because of the gas mileage. Commissioner Williams noted according to this each entity would have to pass their own ordinance and that meant Spring Creek would have to pass their ordinance. Harry Botsford noted they allow ATVs to tear down his road at 100 mph. Commissioner Myers noted most entities have passed an ordinance on ATV use. He stated the Spring Creek Association made a decision three weeks ago that they would not allow ATVs on the roads. Commissioner Dahl voiced concern about getting his help to put on helmets when crossing the road. Commissioner Myers noted they had read this Ordinance before and now it was back as a First Reading again. He inquired why it was not a Second Reading. Kristin McQueary stated it was not the same document. She changed some language to make the Ordinance more compliant with NRS 490. Kristin McQueary stated they did not separate out the different types of all-terrain vehicles because they were exempt from the helmet law. She stated they could


take the helmet section out of the Ordinance and the people could be cited under State law. Commissioner Myers recommended the Board approve the Ordinance and set for Second Reading but in the change define what the different types of ATVs were; remove the helmet language, and designate Elko County as an ATV route rather than put up signs. He stated it they exclude any roads they can come back and adopt a map. Commissioner Guttry inquired if they would exclude all the paved roads. Commissioner Myers replied no because the State law already designated what paved roads were travelable. Kristin McQueary commented NRS 490 allows people to use a portion of the State Highway for operation of their OHV then as part of the County management they could get permission from the Nevada Department of Transportation. She stated Starr Valley was a good example of getting permission. Randy Brown noted there was an agricultural exception. Kristin McQueary noted during deer season in Ruby Valley it was not agricultural exemption when they have their guns strapped to their handle bars of their ATV. Commissioner Ellison stated AB 343 was designated that anything which followed the regulations of seat belts, blinkers, insurance and was similar to a regular car could drive down the highway or on any roadways in Elko County except freeways. He stated AB 343 was specifically for mini trucks, side by sides and the ranchers to go 10 miles down to another hayfield as long as it was licensed and insured. Commissioner Guttry did not believe a rancher would register a side by side. Commissioner Ellison stated the rancher was exempt. MOTION: Commissioner Dahl moved to approve this Ordinance (the First

Reading of Elko County Ordinance 2014-09, Bill I, entitled, AN ORDINANCE ADDING NEW TITLE 8, CHAPTER 2 TO THE ELKO COUNTY CODE ALLOWING THE USE OF OFF-HIGHWAY AND ALL-TERRAIN MOTOR VEHICLES ON DESIGNATED COUNTY ROADS) but eliminate the helmet law portion, and that every County Road in Elko County be designated as an ATV road and set the Ordinance for Second Reading.

Commissioner Williams noted this Ordinance does not include any state roads. Kristin McQueary clarified that if the County designated any portion of a State Highway as permissible for the operation of OHV pursuant to this subsection, the City or the County must obtain approval for the designation from the Department of Transportation.

Commissioner Dahl amended his motion to include that if the County designated any portion of a State Highway as


MAY 7, 2014 PAGE 29

permissible for the operation of OHV, the County would obtain approval for the designation from the Department of Transportation. Commissioner Williams seconded the motion.

Commissioner Myers clarified the motion was to set for Second Reading the Ordinance; they would remove the helmet requirement; designate Elko County as an ATV County and they would request through NDOT whatever permits they need for State highways.

Commissioners Gerber, Dahl, Myers and Williams voted aye. Commissioner Guttry voted nay because he did not clearly understand the Ordinance. The motion passed with a 4-1 majority vote.

5:45:41 PM: B. Discussion, consideration and First Reading of proposed Elko County Ordinance 2014-10, Bill J, entitled: THAT A NEW SECTION 16, OF CHAPTER 8, OF TITLE 4 BE ADDED TO THE ELKO COUNTY CODE TO PROHIBIT MEDICAL MARIJUANA ESTABLISHMENTS AS DEFINED BY NEVADA REVISED STATUTES 453A.116 IN ANY ZONING DISTRICT WITHIN THE UNINCORPORATED AREA OF ELKO COUNTY AND WITHIN THE UNINCORPORATED TOWNS IN ELKO COUNTY, AND ALL OTHER MATTERS PROPERLY RELATED THERETO., an ordinance prohibiting medical marijuana establishments in any zoning district within the unincorporated portions of Elko County, including any unincorporated towns. John Kingwell, Planning and Zoning Supervisor, stated on March 27th the Elko County Planning Commission met and voted 4 for and 1 against which brought their recommendation to disallow medical marijuana establishments to the Commission. John Kingwell stated there was representation at the meeting from PACE, Sheriff’s Department and Elko City. He stated they spoke on a gambit of law enforcement problems. John Kingwell stated there was already State law in place for people to grow medical marijuana with a medical script card. He stated if a medical marijuana establishment was allowed in Elko County then anyone within 25 miles of that point would have to obtain their marijuana from that facility and with the vastness of the County there was no way to cover this. John Kingwell stated they looked at all these issues at the meeting and this would cost a lot of funding for law enforcement. He noted dispensaries cause a lot of issues because they need areas to grow, and areas to make edible products. Randy Brown commented staff recommended approval and they had heard a lot of testimony that the establishments were not good for the County, the law enforcement or the people. Commissioner Myers inquired how Colorado was doing. Randy Brown replied terrible and the federal government was buy marijuana from Colorado.


Commissioner Guttry had sat through the City Council presentation and had heard both sides of the story. He supported the law enforcement side on this. He noted people could get it as a prescription and they can get it through another avenue. He believed the Planning Commission did a good job hearing all the testimony and supported their decision. Commissioner Myers noted State regulation was 12 plants and possession was of 1 ounce. John Kingwell commented the problem in Colorado was there was opportunity to make money because marijuana was $500.00 dollars for 1 ounce. He noted they could buy the seeds off the internet now. Commissioner Williams noted a month ago the State attempted to explain what was going on with medical marijuana. He believed economically this was a boom to any County within the State because they could increase their Police Departments, the jail size, the hospitals and welfare. He commented the only people that would suffer out there were the taxpayers because they would have to pay for all the excessive fees. Commissioner Williams stated this was an issue of health and safety. He noted history has proven this was not good, he would not support the issue and this was not good for our families. Commissioner Myers inquired if there were a lot of marijuana cases through the District Attorney’s Office. Kristin McQueary replied yes. Commissioner Myers stated even if they approved the medial marijuana establishments they would have the same problems. MOTION: Commissioner Gerber moved to approve the First Reading of the

Elko County Ordinance 2014-10, Bill J, entitled: THAT A NEW SECTION 16, OF CHAPTER 8, OF TITLE 4 BE ADDED TO THE ELKO COUNTY CODE TO PROHIBIT MEDICAL MARIJUANA ESTABLISHMENTS AS DEFINED BY NEVADA REVISED STATUTES 453A.116 IN ANY ZONING DISTRICT WITHIN THE UNINCORPORATED AREA OF ELKO COUNTY AND WITHIN THE UNINCORPORATED TOWNS IN ELKO COUNTY and schedule it for Second Reading. Commissioner Dahl seconded the motion. The motion passed unanimously.

5:46:36 PM: XI. COMMISSION AND COMMITTEE REPORTS: Informational reports from Commission members regarding various committee, liaison or agency issues as may be appropriate. Chairman Myers tabled the Commission and Committee Reports until tomorrow due to the lateness of the hour. 5:53:50 PM: XII. COMMISSION MEETING CALENDAR: May 19, 2014 – Final Budget Hearing - Nannini Admin Bldg., Suite 102 –

4:00 p.m. ELKO COUNTY COMMISSION

REGULAR SESSION MAY 7, 2014

PAGE 31

May 21, 2014 – Nannini Admin Bldg., Suite 102 – 1:30 p.m. June 4 & 5, 2014 – Nannini Admin Bldg., Suite 102 – 1:30 p.m. June 18, 2014 – Nannini Admin Bldg., Suite 102 – 1:30 p.m. Commissioner Williams stated he would be absent on June 18th and asked that someone sit in for him on the radio representation. Commissioner Dahl stated he would be absent on May 21st because he would be in Alaska. MOTION: Commissioner Williams moved to approve the Commission

Meeting Calendar. Commissioner Dahl seconded the motion. The motion passed unanimously.

5:55:11 PM: XII. CONSENT AGENDA:

A. Presentation and review of claims for approval which are available for public review at the Elko County Manager’s Office. B. Approval of minutes: February 19, 2014

C. Sheriff Department Step Increases – Richard Lespade, Mariah Drake, Charles Myers Jr., and Shawn Sherwood

Robert Stokes requested that item C be dropped off the agenda. MOTION: Commissioner Dahl moved to approve the Consent Agenda

items A and B only. Commissioner Williams seconded the motion. The motion passed unanimously.

5:55:49 PM: XII. COUNTY COMMISSIONERS AND COUNTY STAFF COMMENTS: Robert Stokes stated he would be absent on May 14th until the end of the month. Commissioner Guttry inquired if there had been a meeting set up with the Southwest Gas representatives. Robert Stokes replied that may be scheduled the first part of June. 5:56:51 PM: XIII. COMMENTS BY THE GENERAL PUBLIC: No comments were submitted. 5:57:00 PM: XIV. ADJOURNMENT There being no further business to come before the Board, the meeting was adjourned at 5:57 p.m. APPROVED, CHARLIE MYERS, Chair ATTEST: MARILYN TIPTON, Deputy Clerk ELKO COUNTY COMMISSION REGULAR SESSION MAY 7, 2014 PAGE 32

Elko County Board of Commissioners

Commissioners Demar Dahl

Grant Gerber Glen Guttry

Charlie Myers R. Jeff Williams

Elko County Manager Robert K. Stokes

STATE OF NEVADA ) COUNTY OF ELKO ) ss. MAY 8, 2014 The Board of Elko County Commissioners met in regular session on Thursday, May 8, 2014, at 1:30 p.m., in Suite 102 of the Nannini Administrative Building at 540 Court Street, Elko, Nevada. There were present: County Commissioners Charlie Myers, Chair

Demar Dahl Grant Gerber Glen Guttry R. Jeff Williams County Manager Robert Stokes CEO/Asst. County Mgr. Cash Minor

Planning/NRMAC/Asst. Mgr. Randy Brown Deputy District Attorney Kristin McQueary Deputy County Clerk Marilyn Tipton Deputy County Clerk Michele Merkley Undersheriff Clair Morris

Chairman Myers called the meeting to order at 1:34 p.m. Chairman Myers led the meeting participants in the Pledge of Allegiance

and noted Commissioners Dahl and Gerber were not present at this time. 1:34:40 PM: I. COMMENTS BY THE GENERAL PUBLIC: Allie Bear informed the Commissioners that normally 12.5% of the grazing fees go back to the Grazing Board’s but had been sequestered by 7.2% and it was not a budgeted item. She requested the Commission to ask for an audit or accounting of the BLM grazing fees because now the grazing fees were not coming back to the Grazing Board. Allie Bear was informed by one of her customers that they were told the BLM could not build their fire fence this year


MAY 8, 2014 PAGE 1

because the money was used to gather the Bundy’s cattle. Allie Bear noted the BLM spent $950,000 to gather a debt of 1.2 million dollars when you can just put a lien against the cattle. She commented Pershing County was addressing these two matters and also the Pershing County District Attorney has addressed the issue of the wild horses where there was a zero AML area. She noted there as an Order issued to gather them but now there was a question of funding. Allie Bear stated the lack of funding affects the wildlife and sage grouse. She believed if the Commission inquired about it there would be action taken upon the issue. Commissioner Dahl arrived at the meeting room at 1:35 p.m. Commissioner Guttry requested clarification that typically the Grazing Boards receive 12.5% but it was cut by 7.2% through the sequester. Allie Bear explained 12.5% of the grazing fees go back to the Grazing Boards and it was not a budget item. The Grazing Boards use that money to do water improvements, and range improvements. Allie Bear stated the last time the BLM was audited they were $300,000 short of those funds that did not go into range improvements. She stressed the water troughs were important for the sage grouse. Commissioner Dahl clarified that 12.5% goes to range improvements and not the ranchers which mostly benefits wildlife. Allie Bear submitted a copy of the Pershing County District Attorney’s letter dated April 21 to Amy Lueders. Cliff Gardner stated he was here to support Allie Bear’s concerns. He noted with the desert tortoise situation in the south there had been funding raised but there was no accounting. He believed there may be an investigation on the funding by the State Legislature. Cliff Gardner was present during the Bundy situation and a local person who spent a lot of time on the range informed him that he had never seen a desert tortoise for the last two years. He noted the US Fish and Wildlife Service personnel have said on two occasions that the population was dropping. He noted all the money spent by the public has failed to improve the conditions for these species yet the population was decreasing. Cliff Gardner asked the Commission to think about requesting an investigation on the expenditure of those funds. Commissioner Myers noted two years ago they limited the amount of tortoise to be adopted because of the abundance of turtles within the City and euthanized over 800 turtles. Commissioner Guttry believed the turtles moved into the edge of town for food rather than stay on the range. Cliff Gardner agreed and commented there was documentation back during the listing that over 30% was near the municipalities. He noted the federal agency developed a program to extract money from developers and from other


construction. Cliff Gardner stated if all this was exposed it may help with the land transfer efforts and help understand why they do not want a sage grouse plan to extract money from the public. Commissioner Guttry believed the Clark County Commission should know where that funding was and it must be audited annually. Commissioner Myers stated this would have been federal funding and it appeared to him that the Clark County did not get involved with federal issues. He stated the reduction in grazing fees for rangeland improvements may be a penalty. Bertha Gardner stated the same thing was happening with the sage grouse as it did with the desert tortoise regarding mitigations fees upon future development. She questioned if there would be accountability on those funds. Commissioner Myers noted NDOW has collected money from two different operations to allow those operations to go forward providing the companies paid mitigation fees. He noted Bald Mountain had to make berms for the deer trail and the other one was Lone Canyon for the sage grouse. Bertha Gardner inquired about accountability for that funding. Commissioner Williams noted if there was no regulations on how that funding should be spent then there was no way to for accountability. 1:45:05 PM: AGENDA ADDENDUM: SUMMIT AIR AMBULANCE FRANCHISE AGREEMENT: Discussion and consideration of Commission authorization to grant an extension of the current franchise agreement with Summit Air Ambulance for up to sixty (60) days in order to properly include current federal and state regulations into the renewed agreement. Kristin McQueary commented she needed more time to review the information on Medicaid and Medicare reimbursement and asked for an extension of 60 days to update the agreement after reviewing federal law. MOTION: Commissioner Guttry moved to authorize an extension of the

current franchise agreement with Summit Air Ambulance for up to sixty (60) days in order to properly include current federal and state regulations into the renewed agreement. Commissioner Williams seconded the motion. The motion passed unanimously.

Commissioner Gerber arrived in the meeting room at 1:46 p.m. 1:46:15 PM: II. NORTHEAST NEVADA CITIZEN CORPS/CERT PROGRAM:

A. Discussion and consideration of renewal of the Northeast Nevada Citizen Corps/CERT Program Coordinator Contract with Mary Ann Laffoon for the Northeast Nevada (5) County Region.


MAY 8, 2014 PAGE 3

Mary Ann Laffoon requested a contract renewal and noted there was sufficient funding for the position. She had been appointed to the State Citizen Corps Council and would speak at the emergency manager’s conference in Virginia City in September upon rural aspects and youth programs. She stated Regional Director, Nancy Ward, took one of the projects that she presented at Flag View School for emergency preparedness to FEMA to be passed on. Mary Ann Laffoon stated she had been given presentations, outreaches and trained in outlying areas such as Jackpot, Battle Mountain, Elko, Ely, and currently have a program in the West Wendover High School. Mary Ann Laffoon stated in the program the students have homework to share it with their family and pets. She participates with the Local Emergency Planning Committee and provides assistance to other agencies. Mary Ann Laffoon stated they were coordinating with the Intertribal Response Commission to teach upon tribal lands. She will be teaching in South Fork in June. She noted they have provided assistance on the registration of OHV at the Sheriff’s Department, National Night Out, Fire Prevention picnic planning, the airport drill exercise, and helped secure a trailer for the Search and Rescue Program through grants. Commissioner Myers stated they may need her assistance when they complete their ATV Resolution to help educate the public of that information. Commissioner Williams inquired if her position and activities were funded through grants. Mary Ann Laffoon replied yes, through Homeland Security Program Grants. She currently had funding through 2015 and would further request their authorization to seek the 2016 Homeland Security Grant. MOTION: Commissioner Williams moved to approve the renewal of the

Northeast Nevada Citizen Corps/CERT Program Coordinator Contract with Mary Ann Laffoon for the Northeast Nevada (5) County Region. Commissioner Guttry and Commissioner Gerber seconded the motion. The motion passed unanimously.

B. Discussion and consideration to apply for the FFY 2014 Homeland Security Grant Program (HSGP) funds to allow for the continuation of the Northeast Nevada Citizens Corps/CERTS program, the Coordinator position and travel for the Northeast Nevada (5) County Region. MOTION: Commissioner Guttry moved to apply for the FFY 2014

Homeland Security Grant Program (HSGP) funds to allow for the continuation of the Northeast Nevada Citizens Corps/CERTS program, the Coordinator position and travel for the Northeast Nevada (5) County Region. Commissioner Williams seconded the motion. The motion passed unanimously.


1:54:19 PM: III. ELKO COUNTY LIQUOR BOARD: Chairman Myers called the Liquor Board to order at 1:54 p.m. Discussion and consideration of the approval of a Liquor License for Jess and Kathleen Jones DBA Twisted Outlaw (Outlaw Broncs), at the Spring Creek Horse Palace and rodeos, etc. Undersheriff Morris reported a background check had been performed and they recommended approval of the liquor license. MOTION: Commissioner Gerber moved to approve the liquor license for

Jess and Kathleen Jones DBA Twisted Outlaw (Outlaw Broncs), at the Spring Creek Horse Palace and rodeos. Commissioner Guttry seconded the motion. The motion passed unanimously.

Chairman Myers adjourned the Liquor Board at 1:55 p.m. 1:55:05 PM: IV. ELKO COUNTY SHERIFF’S OFFICE: Report of activities related to the continuing operation and activities of the Elko County Sheriff’s Office. Undersheriff Clair Morris reported the following statistics: 18,641 calls for service, they wrote 377 reports, there were 23 felonies, 45 misdemeanors, 4 DUIs, 818 drug arrests, 119 agency assists, 448 traffic stops, 144 citations written, and 187 animal calls. Commissioner Williams inquired how many calls were to the schools. He believed that would change with the school resource officers. Undersheriff Morris did not have that broken down. He reported that 83% of the budget year was gone and they were at 82% of the budget on the patrol side and 81% on the jail side. Undersheriff Morris stated their rural deputy answered 102 service calls, wrote 5 reports, did 10 traffic stops, wrote 5 citations and responded to 3 animal calls. He stated Deputy Aitor Narvaiza was a good representative of the Sheriff’s Department who had good rapport with the outlying areas. Undersheriff Clair Morris reported the jail population was 139 this morning with a total booking of 303 last month. He stated people have been released on their own recognizant who were arrested on misdemeanor charges to reduce the jail population. Commissioner Myers inquired if the increase in female inmates was due to drugs. Undersheriff Clair Morris replied yes and noted they have three pregnant inmates who were put in jail which kept them from drugs. Commissioner Myers inquired what happened if they went into labor while in jail.


MAY 8, 2014 PAGE 5

Undersheriff Clair Morris stated it would be covered by their insurance or through the indigent insurance. He stated they put an ankle bracelet on the inmate while they were in the hospital and once they have the child, the child goes to family services and the mother goes back to jail. Commissioner Myers noted the City of Elko was looking for help with their animal calls. Undersheriff Clair Morris reported the Spring Creek, Ryndon and Osino Deputies had multiple animal calls. Undersheriff Morris reported that the Sheriff was at the POST graduation because they have two graduating from the academy. He stated two weeks ago they ran the torch across the desert. Commissioner Myers asked that the graduates be congratulated by the Board and suggested future recognition after their 16 week course. He inquired if they would be reducing the number of Court security guards at the Courthouse. Undersheriff Morris stated there had been some discussion between the Judges and there was a meeting scheduled. 2:02:34 PM: V. U.S ENVIRONMENTAL PROTECTION AGENCY (EPA) AND THE U.S.

ARMY CORP OF ENGINEERS (CORPS): Discussion and consideration of recently released “Definition of Waters of the United States under the Clean Water Act” and the potential impacts this proposed regulation will create including the expansion of the range of waters that fall under federal jurisdiction. The National Association of Counties is calling for action as these new regulations will expand federal control, increase the number of county-owned ditches that will become federal jurisdiction and will apply not only to the Clean Water Act programs, section 404 permits, but include storm water, water reuse and green infrastructure. Randy Brown had attended a two hour teleconference with the Army Corps and EPA. He stated the National Association of Counties had sent out a markup on some questions for consideration. Randy Brown was quarter way through the federal document. He believed their intent was to define certain aspects of the permitting process which control what happens with the waters of the US. Randy Brown stated the Army Corps of Engineers was given their definition of jurisdiction over most of what the County does and usually takes up to six months. He stated on the Railport it took up to two years because the Army Corps had jurisdiction on Sherman Creek. Randy Brown stated they were basically telling them anything that has some sort of significant nexus to navigable waters was considered US waters so they would be encompassing everything for jurisdiction. He voiced concern their jurisdiction would be over irrigation ditches and suggested they provide comment on this. Randy Brown ELKO COUNTY COMMISSION REGULAR SESSION MAY 8, 2014 PAGE 6

stated this would take jurisdiction from the State of Nevada Engineer and pass it through the NDEP which enforces the restrictions under the Clean Water Act. He stated under State Law the irrigation ditches could be maintained by the water right holder or user of the water right. He believed if this was approved every time someone wished to clean ditches it would require a 404 permit. Randy Brown stated this was serious if they could prove a significant nexus if the water flowed to navigable water and noted this referred to interstate, intrastate and ponding. He noted there were a lot of historical exclusions provided but they were ambiguous and vague and in the very next chapter it says the restrictions apply. Randy Brown asked for further time to review and would prepare a summary for the Commission. He stated the comment deadline was July 21, 2014. Randy Brown believed they should contact and speak to their Congressional delegation. He noted during the telephone conference there were comments made by people from Florida who said there was too much authority under the Clean Water Act. Randy Brown believed this came about because of the two lawsuits that said the Army Corps and EPA did not have jurisdiction so now the Army Corps were coming up with definitions for the water of the US. He noted “waters of the US” would replace the term “navigable waters” and everything under navigable would become Water of the US. Randy Brown stated the ditches along the road could be under their jurisdiction. He noted the Army Corps of Engineers were now defining what a tributary was. He stated a tributary was defined as “any flow” whether it was perennial, annual, thermal, thermal underground. He noted any time it flowed water to a navigable water it could be considered a tributary. Randy Brown stated they were attempting to say everything that flows water into what they classify interstate water and that significant nexus could be a spring, wet land, any type of marsh that would flow to navigable water either by underground or above ground source would come under their jurisdiction. Randy Brown noted the document was repetitive and redundant and the EPA had no enforcement authority so they were using the Clean Water Act to acquire more jurisdiction. Commissioner Myers suggested the Board bring this back on the next meeting for discussion Randy Brown would draft a letter to send to their Congressional delegation opposing the changes to allow the Army Corps of Engineer to take action upon this. Randy Brown noted the EPA wants to make it simple and the bottom line was they wish to encompass all the waters. Commissioner Gerber had attended the Natural Resource Management Advisory Committee and there was a lot of discussion on this issue. He stated this would impact bridges, roads, corrals, roofs, irrigation, shopping centers,


MAY 8, 2014 PAGE 7

parking lots, feed grounds so anywhere water collects, moves and even puddles the Army Corps of Engineers could take action upon. Commissioner Gerber stated in 1921 at one of the National Wilderness Conferences people came who were recently harmed by various environmental actions. He gave an overview of how the federal jurisdiction had been applied to private individuals upon their private property. Commissioner Gerber questioned how this would play out but he recommended they watch for a coalition that the County could join to go to Congress to show a united front in opposition. Commissioner Myers noted that was being done through NACO. Randy Brown stated the National Association of Counties came out with a letter informing them of this action because the EPA and Army Corps of Engineers did not send out notification. He stated there were 4,200 callers on that Thursday teleconference. Commissioner Gerber believed it was wise to join a coalition other than National Association of Counties, because it would increase the number of entities responding. Commissioner Williams inquired where the Governor stood on this. Randy Brown would send a letter to Jason King, State Water Engineer. He believed the Western Governors Association should be involved. Commissioner Myers suggested a letter to the Governor and Governor’s Association at the same time they send it to the Congressional delegation. Randy Brown stated the EPA would hold another teleconference in the next couple of weeks and encouraged them to come listen in. He stated it was impossible to get questions in but they could e-mail their questions in. Commissioner Dahl inquired if Sherman Creek was jurisdictional for the Army Corps of Engineers. Randy Brown replied yes but the creek ran less than two months per year. He stated how it was proposed was if it runs one-half (½) hour then it would come under their jurisdiction. Commissioner Dahl commented this affects everyone in the nation so more of the public was upset. He stated if they get away from navigable waters and the Humboldt River become part of the system the Humboldt River had an adjudication system for hundreds of years. He noted the Humboldt ran from here to Lovelock and the same water irrigated fields in Starr Valley, Deeth, Elko, and Argenta to Winnemucca. He stated you would have fertilizers running into stream so the EPA could stop that. Randy Brown expressed concern with their agricultural exemptions in one paragraph and in the next paragraph they talk about the mineral flow from irrigated fields into the Waters of the US. Randy Brown stated the Humboldt River was considered navigable because it was an irrigation source for grass,


hay and alfalfa that was sold out of state. Kristin McQueary stated in research she found years ago a ferry crossed the Humboldt River at Winnemucca so that makes the Humboldt River navigable. Harry Botsford stated in the last year and a half of attending these meetings this was the fourth or fifth issue just as the spotted owl, sage grouse, etc., which was pure bureaucracy. He stated it was the ability and art of building for the sake of growing and serving no useful purpose. Harry Botsford stated if they don’t stop these organizations from expanding into areas they were not chartered for they would never end this. Harry Botsford would like to know when the next meeting was scheduled on this because they should all be able to listen. 2:23:16 PM: VI. FISCAL YEAR 2014-2015 BUDGET: A. Presentation, review and discussion of FY 2014-2015 Budget recommendations as prepared by the Budget Review Committee and County Staff including an examination of revenues, expenditures and transfers for the upcoming budget year and all other matters related, thereto. The Final Budget Hearing is scheduled for Monday, May 19, 2014 at 4:00 p.m. pursuant to NRS. Debbie Armuth spoke to Teri Gage of Kafoury & Armstrong, and she pointed out one year ago they were finalizing their 2012 audit report. She noted it was easier to do a budget when an audit had been done earlier. Debbie Armuth stated last Wednesday she received a call from the Department of Taxation indicating they would be adjusting the County’s net proceeds. The net proceeds were dropped 47% from the final revenue projections. She was informed in April the Department of Taxation receives the true-ups for the mining companies which takes into consideration the credits. Debbie Armuth was given three reasons for the decline inclusive of the mine production being down; price of gold, and net to gross ratio went from 42% to 23% because the expenses were higher. She and Kathy Long sat in a teleconference with the Department of Taxation and the counties impacted by the decline in net proceeds. Debbie Armuth stated the different would be a drop from $1.2 million to $643,000 in net proceeds for just the County portion. Debbie Armuth stated these numbers were preliminary because they have 13 mine operators within the County and only 5 of those mines have credits. She commented the Department of Taxation was taking steps to avoid this issue in the future and would work to get the numbers to them earlier in the budget season. B. Discussion and consideration of issues related to the Fiscal Year 2014/2015 Elko County Budget and all other matters related thereto. Debbie Armuth they were still working on the budget and there would be a budget meeting held next week to discuss the Fire District.


MAY 8, 2014 PAGE 9

C. Review and updates of Budgets for the following funds and all other matters relating thereto: Unincorporated Town of Montello Budget: Debbie Armuth stated their budget was the same as last year. They appropriate $20,000 for each department for their general operating. She stated they do have projects planned and when they build up their funding they would address those projects. She noted last year they spent $10,000 and have built up $40,000 toward projects. Debbie Armuth reported there was $13,000 in their ad valorem capital projects fund. She stated on water and sewer they were not funding depreciation so they need to raise rates. She commented they used grant funding for a new water tank but there may be additional costs. Commissioner Myers suggested the Budget Committee come back with a proposed rate increase for discussion. Commissioner Williams inquired what the amount of the deficit was. Debbie Armuth replied $70,000 in deficit because the rates do not cover the depreciation. She stated there was no revenue to replace infrastructure in the future for the water system MOTION: Commissioner Dahl moved to approve the Unincorporated Town

of Montello’s budget. Commissioner Williams seconded the motion. The motion was passed unanimously.

Unincorporated Town of Mountain City Budget: Debbie Armuth reported Mountain City had very little expenditures. She stated their public works project was funded by CDBG funds. She noted they maintain their facilities and have a utility expense. She stated for their ad valorem projects they have $5,000 allocated and there was money in their General Fund. Commissioner Myers inquired who took care of the water system. Robert Stokes stated Mel Basanez had passed away and their Town Advisory Board also served as their water board. Commissioner Williams inquired if their maintenance was contracted out. Debbie Armuth stated they have their own water user system and perform their own maintenance. Robert Stokes stated the County Public Works Department does provide assistance. MOTION: Commissioner Dahl moved to approve the Unincorporated Town

of Mountain City’s budget. Commissioner Williams seconded the motion. The motion passed unanimously.


Unincorporated Town of Jarbidge: Debbie Armuth commented they need to increase the water rates to fund depreciation. She stated they collect $43,000 to 50,000 in fees and the cost was $50,000 to $75,000 to run the operation and depreciation in the amount of $100,000.

Commissioner Myers asked that they bring it back for rate increase. Debbie Armuth commented there were not many users in these rural locations and they were paying off their debt in 2014. MOTION: Commissioner Dahl moved to approve the Unincorporated Town

of Jarbidge’s budget. Commissioner Gerber seconded the motion. The motion passed unanimously.

Tuscarora Water District: Debbie Armuth stated they collect $15,000 per year in fees but it cost $25,000 to operate the system. She stated they would have to raise the rates to fund the depreciation. MOTION: Commissioner Williams moved to approve the Tuscarora Water

District Budget. Commissioner Gerber seconded the motion. The motion passed unanimously.

Elko County Recreation Fund: Debbie Armuth stated this fund generates about $13,000 in revenues and there was others transfers-in or contributions for specific projects. She stated there was approximately $11,000 in operational costs for the parks, the Lamoille Grove, Tuscarora Hall, and the Jarbidge Park. Debbie Armuth stated they do have the fireworks budgeted for the communities. Commissioner Dahl inquired how much was allocated to fireworks. Debbie Armuth replied $2,500 for fireworks and they had allocated that to West Wendover, Spring Creek Association, Elko and Carlin. Commissioner Dahl inquired if the City of Wells funded their fireworks. Debbie Armuth did not know. She stated Jackpot pays for their fireworks. MOTION: Commissioner Dahl moved to approve the Elko County

Recreation Fund Budget. Commissioner Williams seconded the motion. The motion passed unanimously.

Elko County Road Operational Fund, Road Construction Fund and

review of budgeted allocation of County Regional Transportation funds. Debbie Armuth gave an overview of two requested changes to the salaries

and benefits: a mechanic helper to become a mechanic; and provide a lead position in Elko to assist the Road Supervisor.


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Debbie Armuth stated the other increase in the budget would be for capital in the amount of $148,000. She noted every request was funded but for the grass and brush mower attachment. Commissioner Myers stated there was justification for the mower but there was insufficient funding for that item. She stated there was $148,000 for equipment purchase. Debbie Armuth stated there was a transfer-in from the 235 Road Construction Funds to fund the operations of the Road Department. She stated in past they were able to use that funding for specific projects. Debbie Armuth stated most of the projects were now funded through the RTC funds. She gave an overview of the 110 Road Fund which left $57,000 to do some gravel projects which wasn’t a lot of money for gravel. Debbie Armuth reported RTC funds increased to $1.3 million dollars with the new gas tax increase. She reviewed the prior commitments that still have balances to pay out. She gave an overview of the ongoing projects that were done every year. Debbie Armuth stated Terry Lister had increased the funding for gravel for FY 2015. She stated they generally do warning signs and distribute weed funding to the Conservation Districts. She stated there were two new projects one at Kittridge Canyon and the other at Ryndon. Debbie Armuth stated the remaining balance was $484,694.00 in the plan to use.

Commissioner Williams inquired if the additional two and one-half cent gas tax increase was reflected in the budget. Debbie Armuth replied in the affirmative and noted that was allocated based upon assessed value. MOTION: Commissioner Williams moved to approve the Elko County Road

Operational Fund, Road Construction Fund and the County Regional Transportation Budget. Commissioner Dahl seconded the motion. The motion passed unanimously.

Commissioner Dahl inquired about Metropolis. Debbie Armuth stated it was budgeted for routine maintenance on the Metropolis Road.

Commissioner Dahl inquired about the Pole Creek line item. Debbie Armuth stated that was the final payoff for the Pole Creek Bridge. Commissioner Dahl inquired how much was spent on the Pole Creek Bridge. Debbie Armuth replied $60,000. She stated they spent $25,000 in FY 2013 and $45,000 in FY 2014. Commissioner Dahl noted it was originally budgeted for $600,000. Debbie Armuth stated the original project was budgeted for $400,000.


Commissioner Gerber commended the Board upon the reduction upon that project. C. Update and review of Operating Funds, revenues, expenditures and transfers and all other matters related thereto. Debbie Armuth stated with what they have proposed for the final budget they have a 7.52% ending balance. She stated the State suggests an 8.83% ending fund balance. Debbie Armuth stated they had to increase their Child Support to fund 34% of operation and she initially had $150,000. She believed it would come in at $200,000. She stated the Library bookmobile funding was once a year if the money was available. Debbie Armuth stated they were recommending $413,000 for personnel costs, $41,000 in services and supplies, $551,000 capital outlay, and $344,000 for building and grounds. She gave an overview of the personnel requests as follows: The drug court coordinator salary may be funded by grant funding. The Judge requested a portion of that funding be moved to fund a part-time person in Family Court for processing Temporary Restraining Orders. Debbie Armuth stated $50,000 had been allocated for the Resource Officer. She noted previously the three deputies included in the Tentative Budget will be hired January 1, 2015 for the jail expansion. She stated the Division Chief Prevention Recruiter for the Elko County Fire Protection District was added. Commissioner Dahl inquired where Michele Rodriguez was funded. Debbie Armuth stated that funding was within the trial expense budget and that position was funded at the same amount as last year. She noted CASA was also funded at the same funding level as last year. Debbie Armuth stated under services and supplies they looked at current signed contracts and they had to budget for the increases in the amount of $41,000. Debbie Armuth stated there was $25,000 budgeted for Fire District Mechanic Tools and $135,000 for a mechanic’s truck. She stated they assumed $225,000 for those two items and this came from the $1 million dollars they had set aside for the implementation of the district. She stated the balance of $551,000 would come from capital projects and not from the general operating funds. Commissioner Guttry inquired if the mechanic’s truck was used. Debbie Armuth replied in the affirmative. Commissioner Williams stated this truck estimate was high and must have a lot of equipment upon it. Debbie Armuth stated Terry Lister indicated they could get something less expensive.


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Debbie Armuth gave a review of the requests and stated they were funding 6 Sheriff’s vehicles rather than 9 vehicles. She stated some of the requests were from prior years and they attempted to prioritize the requests. Debbie Armuth stated that would be paid from capital projects. She noted in building and grounds there was about $344,000 with $250,000 coming from ad valorem capital projects and the balance would come from the capital projects fund. Commissioner Guttry inquired if they clarified they were replacing the Courthouse windows in the amount of $250,000 to save on heating costs. Commissioner Gerber inquired if the Courthouse was heated by geothermal and received an affirmative response. Commissioner Williams noted single pane windows were valuable and suggested when they were replaced they should not be destroyed. Debbie Armuth stated under community service requests the small business development would be funded from the general fund in the same amount. She noted the remaining community service requests would be funded from the Recreation Fund. Debbie Armuth stated the part-time person for the California Trail Interpretive Center was funded from the California Trail Fund. Commissioner Williams inquired if that amount was $5,000 and Debbie Armuth replied in the affirmative. He requested the County continue the funding for the center next year as well. He noted the City also funds that center. Commissioner Guttry stated tomorrow there would be a presentation at the Humboldt River Basin Water Authority meeting about cloud seeding. He stated they may be requesting funding and they did not fund it in the previous year. Commissioner Myers believed that should be brought up in the budget cycle. Commissioner Dahl stated they were to prove that the seeding works at the presentation. Commissioner Guttry inquired if this was taken from Contingency last time. Debbie Armuth replied no, it was a budgeted item but it was removed from the budget. Commissioner Dahl noted they do all the maintenance out of Reno and if they can do maintenance locally that would save half of the costs. Commissioner Williams stated they had previously discussed how the costs were allocated among the counties. Commissioner Myers stated if they can justify the program with the presentation tomorrow then the Board should consider it again because of the drought. Commissioner Dahl commented the last year they seeded the clouds it was the driest year they had.


Debbie Armuth explained the ad valorem five cent capital projects tax was allocated to the entities whether incorporated or corporate. She stated the County has been paying for their communication project from this fund. She noted in 2015 they will pay off the Carlin debt, the Courthouse window project and this was the last year for payment on the water tender for the Fair Board. Debbie Armuth commented there would be $587 remaining in that fund depending upon ad valorem tax. Debbie Armuth stated they have moved their net proceeds funding under Capital Projects. She noted in 2015 they will be paying off the New Dawn Project and paid USGS for their studies. She reported $100,000 was set aside for capital equipment with $50,000 set aside for emergency building repairs. She noted that amount was overspent because of the restroom issue in the Courthouse. She noted in the Jail Expansion Fund there was an allocation of $2.5 million dollars in FY 2014-2015 and they hope to have sufficient cash in that fund to pay for the construction. Debbie Armuth said the $711,000 in the fire suppression would be available to buy the fire equipment in the amount of $225,000 for the service truck and mechanic’s tools. She stated they pay for their GIS, internet updates and the balance from the building and grounds projects would come from the Capital Projects Fund. Debbie Armuth stated there was some emergency computer replacement funding budgeted. She reported there was $827,000 remaining in the Capital Project Fund and there was no transfer-in from the mineral net proceeds fund this year. Debbie Armuth stated the proposal on the jail expansion was to use $1.6 million dollars of the Payment In Lieu of Taxes money to pay cash for the project. Commissioner Gerber inquired about the different numbers for the ending fund balance. He inquired about the overall trend on the ending fund balance. Debbie Armuth stated the ending fund balance was trending down because of the net proceeds issue this year and the other funds were stagnant. Commissioner Gerber inquired what she projected for the next two years. Debbie Armuth could not say with the Long Canyon project coming on that may cause an upward trend. She noted their costs were rising such as in the law enforcement and judicial. Commissioner Gerber noted they should have an increase with the oil and gas. Cash Minor stated the Long Canyon would increase the revenues but those would not be seen for two or three years. He stated the increase revenue from the oil and gas may not be as lucrative because the local government do not receive proceeds those stay at the State level. Cash Minor stated they received some revenue from the federal government when they sold the leases.


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Commissioner Dahl asked what percent does the County get from the lucrative oil. Cash Minor replied a percentage goes to the federal government, some goes to the State. He noted the State in their mineral fund sets an amount and once that amount was accumulated then the State would allocate funds back to the County. Cash Minor stated in the past there was little or no allocation. Commissioner Gerber noted there would be a property tax increase. Debbie Armuth noted there would be an increase in expenditures due to the influx of people, welfare costs rise, and law enforcement/judicial costs raise. Commissioner Williams stated there may be an increase for road construction due to the trucking. He noted if in the future the oil companies place infrastructure/pipelines in there would be a tax increase. Debbie Armuth stated that would be centrally assessed. Cash Minor stated if they installed a pipeline to the Railport for transport and it was within the boundaries of Elko County it would be locally assessed. Cash Minor stated the drill rigs would be assessed upon personal property taxes. Debbie Armuth stated the budget would come back on May 19th for final approval. MOTION: Commissioner Williams moved to approve the Operating Fund

Budget (Item C). Commissioner Gerber seconded the motion. Commissioner Guttry stated the PILT fund balance was approximately $4.7 million dollars. He inquired if the PILT funding could be used for any capital project or if a portion can be set aside for a capital project but it can’t be used for personnel or services and supplies. Debbie Armuth replied PILT was used in their General Fund now. She noted it was past practice to use it for General Fund and then Capital Projects. Commissioner Guttry noted it was touch-n-go in the budget sessions earlier when they were going to have to finance the jail expansion. Cash Minor stated because they were using the PILT in the General Fund budget if they spend the $4 million dollars it would create a massive budget hole in the General Operating Fund. He said $3.5 million dollars of this should be available for the following budget cycle because of the way they receive the payment stream. He stated they would have about $1.7 million dollars before they put the general operations in the hole. Debbie Armuth explained there were two years of PILT funding in that fund currently because they prepaid one year. The motion passed unanimously. 3:14:42 PM: RECESS: Chairman Myers called a recess at 3:14 p.m. ELKO COUNTY COMMISSION REGULAR SESSION MAY 8, 2014 PAGE 16

3:22:05 PM: RECONVENE: Chairman Myers reconvened the meeting at 3:22 p.m. 3:22:57 PM: VII. NEVADA LAND MANAGEMENT TASK FORCE: Update report on the status of the study being prepared for the Nevada Legislature by the Nevada Land Management Task Force including County Commission direction to the County Task Force Member. Public input is encouraged. The Nevada Land Management Task Force is conducting a study to consider issues related to the transfer of public lands from the Federal Government to the State of Nevada. The Task Force is required to submit a report of its findings and recommendations to the Legislative Committee on Public Lands later this year. The preliminary report was submitted. Commissioner Dahl stated the analysis was completed by Intertech Corporation with whom NACO had contracted and would be submitted to the Board. He explained the figures for Nevada to determine the economic implications for a transfer of the public lands had to be based upon a study of the State lands in Arizona, Utah, Idaho and New Mexico because Nevada had only .2% State lands. Commissioner Dahl stated AB 227 created and mandated the Task Force do an economic analysis, propose a plan for administration and management of any lands transferred, and identify the lands that the Task Force determines would be included in any potential transfer. Commissioner Dahl stated their report has to be completed by September 2014. He reported they met nine times and there was a listing of the stakeholders and agencies within the preliminary report. Commissioner Myers left the meeting room at 3:27 pm Commissioner Dahl noted the Task Force would only make a recommendation and the decision would be made by the Legislature. He reviewed the Five-year multi-state average revenue, expenses and full time employees from (2008 to 2012) for the state trust land management activities in the states of Arizona, Idaho, New Mexico and Utah. (A chart was presented). Commissioner Dahl noted Nevada had 47,799,665 acres managed by the BLM of which 47,000,000 could be transferred. He gave an overview of the 5 year Nevada BLM revenues, expenditures and employment (chart in Task Force Preliminary Draft page 5). Commissioner Dahl commented the Task Force recommended in Phase 1 a Congressional transfer of land of approximately 5 million acres which was capable of generating net revenues ranging between $38,900,000 and $142,950,000 annually. He stated in Phase 1 would be the lands designated for disposal, lands that have present legislation proposing transfer and lands in the Railroad corridor. Commissioner Dahl stated figuring maximum expense, minimum revenue on 5 million acres annually the revenue


MAY 8, 2014 PAGE 17

would be $38,900,000. Commissioner Dahl said subtracting National Monuments and the Wilderness Areas from the 47 million acres in Nevada those acres would generate net revenues estimated at $1,288,349,741 annually with the low estimate of $350,589,751 based on the four state revenues average per acre. Commissioner Gerber inquired where the $7 million dollars would go. Commissioner Dahl explained under Phase 1 the recommended BLM lands for transfer were as follows: The Central Pacific Railroad corridor checkerboard land which was approximately 2,170,000 acres; the lands identified by the BLM suitable for disposal in the amount of 1,000,000 acres; the BLM lands under existing Recreation & Public Purposes Act lease; BLM lands authorized under Rights-of-Way granted to the State and local governments and non-linear Rights-of-Way granted to private parties; BLM held subsurface estate where the surface estate was privately held (BLM Split Estate); BLM lands designated by the Secretary of Interior as Solar Energy Zones; BLM lands leased for geothermal exploration and utilization; BLM lands authorized for disposal within enacted and introduced federal legislation. He stated there were not many acres designated for disposal under the Forest Service management. Commissioner Williams requested clarification that within the first Phase lands they want to transfer had the potential of bringing in the most money and within the second and third phase they would take the lands with the less potential to bring in funding over a length of time. Commissioner Dahl replied yes and the lands should be held in the State Trust for select beneficiaries. He noted Phase 1 lands shall be managed for long term sustainable net revenue maximization with the exception of lands identified for suitable disposal and to the extent for long term health productivity and sustainability. Commissioner Dahl said in answer to Commissioner Gerber’s question, the Task Force recommended the beneficiaries be public schools K-12; public higher education; public specialized education; public mental health services; public medical services; public program for candidate, listed, threatened or endangered species recovery plan development and implementation; and to local governments to mitigate the loss of PILT, at a minimum. Commissioner Williams noted the State of Utah proposed giving back 95% of the proceeds back to the federal government. Commissioner Dahl stated the following principles will guide State management of transferred lands: All transferred lands were subject to the applicable State and local statutes, regulations, ordinances and codes and all transferred lands subject to valid existing federal, state and local permits and land use authorization and rights of access and property rights. Commissioner Williams inquired about right of access if the land was sold.


Commissioner Dahl stated the issue was with checkerboard lands where they have grazing permits on BLM land that was adjacent to privately owned land but may be leased by a permittee. He stated if the BLM transfers to the State land that was in the checkerboard pattern and the land was proposed to be sold but was being used by grazing rights then they would have to preserve that grazing right. Commissioner Williams inquired if that would also pertain to the other lands that were sold because they have grazing, hunting and fishing upon that land prior to the transfer. Commissioner Dahl stated whatever you could do upon the land prior to the sale would be allowed after the sale; the uses would transfer too. Commissioner Guttry inquired if this would solve the checkerboard land pattern problem. Commissioner Dahl stated the Task Force understood they could only submit a recommendation and that recommendation was whoever the adjacent property owner to that checkerboard land pattern property was should have first right of refusal on the sale of that property. Commissioner Guttry inquired if the long term idea was to consolidate the checkerboard land pattern. Commissioner Dahl replied there should be exchanges proposed. He stated they wished to guarantee transparency in the disposal of lands so the proposal would be reviewed by the local governmental boards. Commissioner Dahl noted the verbiage was “review” but the task force had agreed upon the verbiage of “subject to approval” Commissioner Williams noted in the original draft it said “review”. Commissioner Gerber noted that was upon page eight. Commissioner Guttry suggested they change the language to “ultimate approval by the local government”. Commissioner Williams stated if that verbiage was not put in they would be in the same situation as they were with Ormat. Commissioner Guttry suggested the verbiage of “final approval”. Commissioner Dahl noted if it was left to the local government the proposed sale would be upon an agenda so the public would be informed of the land sale. Commissioner Guttry stated before any checkerboard land was sold their master plan should be updated to identify areas for proposal of sale. Commissioner Dahl noted the task force recommended the land sales be consistent with master plans, ordinances and land use policies. Commissioner Gerber stated that verbiage was not on the white sheet. Commissioner Williams clarified the master plan would be for the County.


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Commissioner Dahl commented the costs of the transfer of lands to the State would be covered by gross revenue derived by managing of said lands. He noted net revenues from the transferred lands would be held in trust for the benefit of select beneficiaries. Commissioner Williams inquired who selects the beneficiaries. Commissioner Dahl stated the task force had submitted the suggestion for beneficiaries such as selected by New Mexico being the schools, university, military institute, miner’s hospital, penitentiary, and water reservoirs but he did not believe Nevada would have the net revenues in the amount of New Mexico. Commissioner Dahl reviewed the five year revenue averages for Arizona, Idaho, New Mexico and Utah and acres of State Lands within each state. Commissioner Williams noted each individual State would figure out who would be the beneficiaries. Commissioner Guttry cautioned the beneficiary list may grow long. Commissioner Williams noted the State may have to use the revenue for payment of past bills. He stated if the County had to give approval for sale of the lands then possibly some of the funds would come back to the County from the sale. Harry Botsford asked where this presentation was given and if he could get a copy. Commissioner Dahl replied the task force information was available on the NACO website, nvnaco.org. Commissioner Gerber noted the Task Force motions were passed unanimously and commented the Task Force in the beginning was not unified. He believed over the months the counties’ representatives have become unified on the project. MOTION: Commissioner Gerber moved to commend the Nevada Land

Task Force for the excellent work they were performing for the State of Nevada. Commissioner Guttry seconded the motion. The motion was passed unanimously.

Commissioner Myers suggested a motion to change the briefing to mimic item number eight, third bullet on page 9. Commissioner Gerber supported Commissioner Guttry’s recommendation of verbiage of “review and final approval by the local government”. Commissioner Williams noted that both drafts were in error and there needed to be changes on all documents with that verbiage. MOTION: Commissioner Williams moved that we accept the presentation

as was given to us today and make a recommendation that on all documents that we have pertaining to this that it says something like this “subsequent disposal of transferred land by the State of


Nevada subject to review and final approval by governing board of the local government within which the land to be disposed of is located” and that would be corrected on page 8 of the draft.

Commissioner Dahl inquired if they wanted to keep in the verbiage of “consistent with the master plans, ordinances and land use policies” and received an affirmative response from Commissioner Williams. Commissioner Guttry seconded the motion. The motion passed

unanimously. Commissioner Dahl believed they should contact Maggie Carlson and Paula Hensley who were on the legislative Public Lands Committee that would be accepting the Task Force report. Commissioner Gerber suggested they call members that were upon that committee to discuss this issue with them. Commissioner Williams suggested a letter to the Task Force or who was appropriate that they recommended this change. Commissioner Dahl suggested a letter be attached to the Task Force report when it was submitted to the Public Lands Committee. Commissioner Myers suggested they set up a teleconference so they could ask questions collectively. Harry Botsford stated when they talk about transfer and access to the land he asked where the reference point was or did it go back to where they lost a lot of their privileges. Commissioner Dahl stated it would be at the point of transfer and what they could do then they could do after the transfer. He noted on the forest where the roads have been closed they may have an opportunity to go to Leo Drozdoff and then go to legislature or the Governor and request the roads to be open. Harry Botsford stated he would like to see a Travel Management Plan done rather than the Road Closure Plan that was performed by the federal agency. He noted the original Travel Management Plan was to be a plan setting areas for travel where it was safe to go and instead they performed a road closure plan. 4:05:49 PM: VIII. WILDLIFE MANAGEMENT ISSUES: Discussion and consideration of wildlife management issues, including possible discussion regarding raven predator control issues, the BLM Sage Grouse DEIS and an overview of the Pilot Projects on the Devil’s Gate Ranch east of Elko, Nevada and on the South Fork Band Reservation at Lee, Nevada and the potential Sage Grouse Pilot Projects in Clover Valley, Nevada and the Tri-State Areas of Idaho, Utah and Nevada. Commissioner Gerber stated on June 17 & 19th there would be western wildlife managers at the Elko Convention Center. He stated they were concerned


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about fire upstream from the Devil’s Gate Ranch because the BLM had not increased grazing and that area had a lot of dead feed. He believed a portion of their project could get burned. Commissioner Gerber suggested more people take a tour to view that area so they may make comments to the BLM about increasing the grazing to avoid fire on the project. Commissioner Dahl inquired if he was able to schedule a debate. Commissioner Gerber stated he had not worked on that. Commissioner Dahl stated they had discussed organizing a debate with the wildlife associated agencies at the Convention Center. He stated on one side there would be Ira Hansen, Cliff Gardner and Quinton Barr with Ted Koch and whoever he chose on the other side to debate on sage grouse to find out if it was justified to be listed. Commissioner Dahl noted when the Task Force tried to get a debate with Tony Rampton, Assistant Attorney General of Utah, who argued the transfer was Constitutional and the Southern Wildlife Federation of Utah, the Wildlife Federation refused to participate. He stated they went to the University of Colorado to get a debate. Commissioner Gerber did not think they could get that to happen due to the timeline. He stated in 1991 they had a wilderness debate against the President of the Wilderness Society vs the National Rifle Association, the Farm Bureau, National Mining Association, American Petroleum Institute, all the users of agriculture, timber, oil and gas. He stated the environmentalists put that debate together and filled the seats with environmentalists. Commissioner Gerber stated these debates were planned to be at the universities around the nation. He noted the first debate was at the University Of New Mexico Law School and a Congressman was the opening speaker who was pro Wilderness. He stated the debate was set up and it was an intimidating situation but the Wilderness side was beat up and they cancelled all future scheduled debates. Commissioner Gerber stated the County had wildlife issues on their side and traditionally they do not talk about wildlife. He stated they need to carefully select the members to debate because of public perception. Commissioner Williams suggested they schedule a date and submit an invitation to Ted Koch etc. Commissioner Dahl suggested Commissioners Williams and Gerber discuss organizing the debate. Commissioner Gerber stated he did not have time to organize the debate. Commissioner Dahl suggested the debate be hosted at night during the conference.


MOTION: Commissioner Williams moved to let Commissioner Gerber come back with a proposed date and time for the debate. Commissioner Dahl seconded the motion. Commissioners Williams, Dahl, Guttry and Myers voted aye. Commissioner Gerber voted nay. The motion passed by 4-1 vote.

4:20:04 PM: IX. COUNTY COMMISSIONERS AND COUNTY STAFF COMMENTS: Randy Brown stated there was a 51% to State - 49% to Federal split and the royalties were paid up between 12.5%, 16.7% and as high as 28% on the oil and gas production. He stated it was negotiable and there had been a change to a regional split including Wyoming, North Dakota, Utah and New Mexico. He commented the Governor of Wyoming was objecting to the regional split. Randy Brown explained on oil and gas production the federal government negotiates with the companies on the royalties on public lands. Randy Brown stated the royalties was split one-half to the federal government and one-half to the State. He commented the State negotiates with the counties regarding on how much the counties would receive of the royalties. Commissioner Gerber noted the State decides who gets it. Randy Brown stated because of the sage grouse issue one half was kept by the State and each County received an equal allocation. He noted for the first two years the royalties was $17.2 billion dollars. Commissioner Dahl noted if they added the 49% that went to the federal government it would be real money. Randy Brown stated some of the people felt the royalties were too low and should be around twenty-nine percent. He noted the Counties split their allocation with the School District. Commissioner Gerber gave a synopsis of the Lander County meeting held this morning. He stated the Lander County Commission recognizes the Elko County Commission was invited and encouraged them to attend the May 17th tour. He stated Lander County would do a quorum agenda notice for all of their members to participate on the tour. Commissioner Gerber stated the Lander County Commission voted to support the ranchers and send a letter to their elected officials. He had spoken to the Lander Commission after the meeting and they thanked this Commission for becoming involved. He noted the Lander Commission wanted to talk to Elko County for more connection on other issues. Commissioner Gerber stated the tour on the 17th of May would begin at 9:00 a.m. at the Tomera Ranch and suggested they leave here by 7:15 a.m. Commissioner Myers recommended they meet here at 7:00 a.m. in the parking lot.


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Commissioner Myers recommended in November the Commission run some public information ads in the paper asking the community not to support the mining tax or the margin tax. Robert Stokes stated a position statement by the Commission needed to be placed upon the agenda. Kristin McQueary would research whether they could pay for a political statement in the paper. Robert Stokes suggested it be a press release. Commissioner Guttry suggested they do a Resolution. Commissioner Williams reported Don Noorda from Wells High School just received the honor of Agriculture Teacher of the Year which was one of six issued in the United States. Commissioner Guttry spoke with Kent McAdoo who formerly sat upon the Governor’s Sage Brush Eco Council. He noted Kent McAdoo and another person just published a paper regarding grazing cheatgrass. He noted their paper said grazing cheatgrass was nutritional and beneficial to the cattle industry and can be eaten in the summer and fall. Commissioner Guttry stated Mr. McAdoo told him there were other studies out there that say the same thing but the BLM was not paying attention. Commissioner Gerber reported there was a study done by the University of Nevada that said the same thing but US Fish and Wildlife Service and NDOW had traditionally ignored that. Commissioner Dahl noted when he was young it was called “June Grass” and in the south it was called “Bronco Grass”. He stated cheatgrass, shadscale and greasewood was a good combination for winter feed. He noted the problem was getting the cheatgrass not to burn before winter. 4:43:02 PM: XI. COMMISSION AND COMMITTEE REPORTS: Informational reports from Commission members regarding various committee, liaison or agency issues as may be appropriate. A. Demar Dahl, District 1 Commissioner: Wells, West Wendover, Jackpot, Montello, Owyhee, Mt. City, Jarbidge Liaison, Public Lands Chair, Nevada Association of Counties (NACO) Board, WIR Board, Central Nevada Regional Water Authority (CNRWA), Humboldt River Basin Water Authority, USFS / BLM Liaison, Elko County Conservation Districts Liaison, American Lands Council / Western Counties Alliance, Nevada Land Management Task Force. Commissioner Dahl reported NACO was taking in another co-complainant on the wild horse suit. He stated there was a Humboldt River Basin Water Authority meeting scheduled tomorrow. Commissioner Dahl noted there was a ELKO COUNTY COMMISSION REGULAR SESSION MAY 8, 2014 PAGE 24

Task Force meeting scheduled on the 30th of May and the WIR Board will meet in Alaska on the 21-23rd of May. B. Charlie Myers, District 2 Commissioner: Commission Chair, Liquor Board Chair, Veteran’s Affairs, Nevada Department of Transportation (NDOT) Liaison, Northeastern Nevada Regional Development Authority (NNRDA), Debt Management Commission, Auditorium Authority Board (ECVA), Wildlife Chair / Wildlife Advisory Board / Nevada Division of Wildlife Liaison, Nevada Division of Forestry Liaison, USFS-RAC. Commissioner Myers reported the Division of Forestry held a good barbeque last night and there were 25 people attending along with the firefighters. He stated on Tuesday night there was an Elko County Wildlife Advisory Board (CWAB) meeting and they recommended a cutback in tag allocation of doe and buck tags in Area 10. He noted they recommended a reduction in buck tags in Area 6 and asked that the increase on the elk be lowered by six percent. C. Glen Guttry, District 3 Commissioner: Highway Board Clerk /Regional Transportation Commission (RTC), Hospital Board, Recreation Board, Humboldt River Basin Water Authority, Elko City Liaison, Elko Senior Activity Programs Board Liaison, National Guard Liaison. Commissioner Guttry reported there was a hospital meeting last night and there were no prospects for a new CEO so they advertised for a COO and there was no response. He stated they would re-advertise for a CEO so it may be at the last of the year before there was change at the hospital. He attended the NV Energy update breakfast with Robert Stokes and Cash Minor on Wednesday morning. He noted the rates were down across the board and across the United States. Commissioner Guttry stated NV Energy would build a new facility and they were looking for five to seven acres and would sell the old facilities. D. R. Jeff Williams, District 4 Commissioner: Highway Board Chair /Regional Transportation Commission (RTC), Carlin, Midas, & Tuscarora Liaison, Spring Creek Association Alt Liaison, California Trails Center Board Liaison, Natural Resource Management Advisory Commission Liaison, Northeastern Nevada Stewardship Group, Juvenile Department Liaison / China Spring Advisory Committee, Sheriff Department Liaison / LEPC Liaison, Library Board of Trustees Liaison, School District Liaison / CIS – Communities in Schools, Nevadaworks. Commissioner Williams inquired if they were going to dissolve the Road Advisory Committee. He suggested an agenda item and if they decide to discontinue then recognize those people who served on that committee. Commissioner Williams commended the Elko School District and Sheriff for coordinating on the resource officers. He suggested they recognize more of the students/youths for presentations before the Commission. He reported upon the


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April California Rendezvous at the California Trail Interpretive Center which was an important component to help their economy. Commissioner Williams would travel tomorrow to Minden for a meeting on China Springs. He met with Karen Kimber who was an advisory at Nevadaworks. He reported there would be a regional meeting for Nevadaworks. E. Grant Gerber, District 5 Commissioner: Commission Vice-Chair, Spring Creek Association Liaison, Great Basin College Liaison, Te-Moak Tribe of Western Shoshone Indians Liaison, Shoshone-Paiute Tribes of Duck Valley Liaison, Central Nevada Regional Water Authority (CNRWA), Museum Board, Natural Resource Management Advisory Commission Alt. Liaison, American Lands Council Alt Liaison. Commissioner Gerber stated he had already spoken upon these issues. Commissioner Myers stated he and Randy Brown he met with the Veterans Administration and took them to County property off of Bullion and that location was still in the running for one of the national cemeteries. 4:38:38 PM: X. COMMENTS BY THE GENERAL PUBLIC: Commissioner Gerber stated he did not like the letter drafted to Neil Kornze and hoped it would not be sent in the present form. Commissioner Myers stated he, Commissioner Guttry and Williams liked the letter. Commissioner Dahl suggested they forget sending the letter because he did not think he would come. Commissioner Myers asked that this be placed back on the agenda for discussion. 4:40:01 PM: XI. ADJOURNMENT: There being no further business to come before the Board, the meeting was adjourned at 4:40 p.m. APPROVED, CHARLIE MYERS, Chair ATTEST: MARILYN TIPTON, Deputy Clerk


Documents

Elko County Board of Commissioners of Proclamation 2014-G, entitled: A PROCLAMATION BY THE ELKO COUNTY BOARD OF COMMISSIONERS PROCLAIMING MAY 8, ... and Charleston