MINUTES OF THE BOARD OF CHURCHILL COUNTY COMMISSIONERS

155 No. Taylor Street, Fallon, NV Fallon, Nevada October 3, 2013

CALL TO ORDER The regular meeting of the Churchill County Board of Commissioners was called to order at 8: 15 a.m. on the above date by Chairman Erquiaga. PRESENT: Carl Erquiaga, Chairman Pete Olsen, Vice-Chair Harry Scharmann, Commissioner Ben Shawcroft, Civil Deputy District Attorney Wade Carner, Civil Deputy District Attorney Eleanor Lockwood, County Manager Alan Kalt, Comptroller Kelly G. Helton, Clerk of the Board Pamela D. Moore, Deputy Clerk of the Board ABSENT: N/A PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was recited by the board and public. VERIFICATION OF POSTING OF AGENDA: It was verified by Deputy Clerk Moore that the Agenda for this meeting was posted in accordance with NRS 241 . ACTION ITEMS: AGENDA: Commissioner Scharmann made a motion to approve the Agenda as submitted. Commissioner Olsen seconded the motion, which carried by unanimous vote. MINUTES: Commissioner Olsen made a motion to approve the Minutes of the special meeting held on September 26, 2011; the regular meeting held on September 5, 2013; and the regular meeting held on September 18, 2013 as submitted. Commissioner Scharmann seconded the motion, which carried by unanimous vote. PUBLIC COMMENTS : Chairman Erquiaga inquired if there were any public comments on issues that were not listed on the Agenda. Michelle Ippolito said she is here as President of the Fallon Animal Welfare Group. She had a prepared handout that explained more about what she is talking about today, which was distributed to the board and public and which included a brochure for the group. She is here because she spoke with the Churchill County Planning Director last week and he informed her that he and the Sheriff were drafting a bill that would limit the number of dogs and cats that Churchill County residents are allowed to have. The group works to adopt out cats and dogs and they are against any bill or law that would limit the number of pets that a family could have. Also, their group does not have a shelter facility and they are dependent upon volunteers

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 1 who foster animals in their homes for the group. They are especially opposed to any law that is going to make it even more difficult for them to recruit people to foster the animals. They are also opposed to pet limits for a variety of other reasons: these laws are totally arbitrary, nobody has ever determined what the optimal number of pets is for any one person or family, and these laws are ineffective. Cases of animal abuse and animal neglect are not going to disappear because we limit the number of dogs a family is allowed to have. She knows that the Sheriff gets complaints all the time on things like dogs running lose or dogs barking that are not covered under state statutes, so she thinks it would be better if we draft some ordinances that target these specific problems. Someone suggested to her that a pet limit law might help in curbing puppy mills but she doesn't think that would happen either. She does know that, back in 2011 , the State Legislature adopted a couple of statutes that particularly and specifically targeted puppy mills. To the best of her knowledge, this Commission and our City Council have yet to implement those statutes. If that is a concern, she would start there. When she spoke with Mr. Johnson on the phone, who was very generous with his time, he said he thought that a pet limit law might also help in curbing or deterring animal hoarders. Animal hoarding is an illness. Included in the packet of information she provided to the board, there are some really good online resources that discuss hoarding but, unfortunately, it is pretty grim because the experts do not know what causes it and they do not really know how to treat it. The recidivism rate is something like 100%. People who suffer from that problem are not going to change their behavior because we have passed a law here. Finally, in that packet of information, she has some suggestions ofthings that we could do that would really tum things around in the county and would really emphasize responsible pet ownership, which would start with spay and neuter programs. If we can make it accessible and affordable, while educating people so that it is the norm, and get into the schools to start educating people on responsible pet ownership when they are young kids so that by the time they have family pets, perhaps they will behave a little differently than their parents do. She is against pet limits for all of the reasons she has enumerated and she hopes the information in that packet will help the board if it is ever faced with a proposed pet limit law. Chairman Erquiaga said he had no questions but stated that he did not believe that any of the board have seen a draft ordinance but they will get with staff and see what is going on. Ms. Ippolito said she spoke with Mr. Johnson last week and he said they were drafting this and were contacting other counties to see what they do and he is the one who suggested that she come here today and address this board. County Manager Lockwood said, as the Commission is aware, a couple of months ago, there was a person in the community who had come before the board who indicated that he was having a real problem with one of his neighbors who had a couple of animals who were incessantly barking every time he went out into his yard. She knows that, from many discussions with this particular individual, we have contacted other communities to find out what they have put in place in regard to, as this particular resident refers to it, nuisance barking. She had asked Michael Johnson to start contacting these various communities to find out if anything had been put into place that was effective and that cost little money. She cautioned Mr. Johnson and has had several discussions with the Sheriffthat, speaking the words of former Commissioner Frey, "you can't regulate people's behavior". She cautioned Mr. Johnson by stating that, as we move forward with

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 2 the research, we need to research effectively, we always need to focus on what the issue at hand is, and then, if there is something effective that addresses what the issue is, she thinks the Commission may have an appetite to start considering it. As the speaker has said, the Sheriff has indicated to her that they do receive a large number of complaints on issues associated with hoarding animals. This is still in the very early stages of research. There is nothing being drafted at this point. We are still looking at other communities. We are ever mindful that the county does not have an animal control department but we support the City of Fallon. She will continue discussions with the Sheriff and Planning Director to try to identify what the specific issues are, if we can do that, and come up with some effective regulations and then start socializing it amongst the residents before we come to the board with any ordinance. Chairman Erquiaga explained that, during public comment, the board cannot take any action but the board appreciates her bringing this to the board. If, at some point, there is some sort of ordinance, there will be ample opportunity to comment and voice your opinion on that at a couple of readings. Ms. Ippolito said she hopes the board has time to look through the packet she provided so that, if such a proposal to arbitrarily limit the number of dogs and cats families are allowed to own does come before you, you have had some other viewpoints and you have gotten some other information. She thanked the board. Agnes Floto said she also brought in some material, which was provided to the board and public, one of which was an article. She is also with the Fallon Animal Welfare Group. She would probably be considered an animal hoarder by a lot of people because they look at a person that has more than a normal amount of animals because they do not understand what harding is. As Ms. Ippolito stated, animal hoarding is a disease. She was born and raised here and there are people like herself that have spent their whole lives helping animals that are abandoned. She talks to people all the time who think the solution for overpopulation is dropping cats or dogs at the river because they think they will hunt and provide for themselves, but they don't. They get chased, they get scared, they get eaten by other dogs, and they come to people like herself who will help them. She doesn't count the number of dogs and cats that she has fixed, spayed or neutered, found homes for, or kept because she couldn't find someone to take them. They are well fed. She also provided a copy of her husband's letter. She has spent, over the years, multi-thousands of dollars to fix animals, which then cuts down on the population. We need to address that issue with education and help people to understand that you do not dump an animal and think they will be found out in the desert or that they will hunt on their own because they do not. She knows one person in particular that got eight cats to catch gophers but she will not feed them, so the neighbor feeds them. We need education. We need to look at things as other than just hoarding as people who are really trying to cut down on the problem. She gave an article that has a lot of good places to go for information and said she hopes the board will look at that. She wants the board to understand that just because you have a lot of animals you are not a hoarder and it doesn't mean you have that type of disease. Shannon Miller said she is the owner of Maggie's Playhouse Doggie Daycare and is also with the Fallon Animal Welfare Group (FA WG). She is one of those people, like Ms. Floto was talking about, that takes in throw-away animals, spays or neuters them, gives them all of their shots, and she has what some people would call an astronomical amount

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 3 of dogs at her house but her dogs are not allowed to bark Her yard is clean. Her house is clean. She takes the dogs to work every day. If she is not at home, they are in the house in their kennels, are safe, and they are not allowed to bark. She is one of those people who is a huge spay/neuter advocate but, again, she has a lot of animals but they are very well taken care of. She has people down the road who allow their dogs to run lose all the time. She takes her dogs for a walk six or eight at a time and she has dogs who are chasing her dogs down. Her dogs are under control but other people's dogs are barking and chasing her dogs down when it is only one or two dogs. She would suggest maybe we could do some kind of nuisance barking or lease law, since she knows there is not one in the county. Her dogs are always confined; they are not chasing people down in the neighborhood. If we could do some kind of leash law, that would be awesome and she thinks that would help with some of the annoyances of trying to go for a nice leisurely walk on the weekends and having dogs run out of their yards and chase people down and barking at all hours of the day or night when people who have a lot of animals have the common courtesy to take care of them and to keep them from barking. She is just trying to make the point that it is not the number - it is responsibility and education. All of her animals were on the euthanasia list and that is why she has them. Some of them she fosters and finds homes for and others she has, as does Ms. Floto, decided to keep but they are under control at all times and are very well taken care of. They are disciplined or taught how to behave. It just takes time, which can only be a couple minutes per day to teach your dog not to bark and to stay in the yard or for you to fix fences so that they do not get out. Therefore, she feels a leash law or nuisance ordinance would be great instead of using the number of animals that people have. Chairman Erquiaga said he is getting the sense that we all agree there is some middle ground we could find between where we are and the worst case scenario. He asked if there was any further public comment but there was none. APPOINTMENTS: THE BOARD MAY REQUIRE THE PROVISION OF AN OATH OR AFFIRMATION BY ANY PERSON PROVIDING ORAL TESTIMONY AT A PUBLIC HEARING. 8:15a.m. Consideration and possible action re: Review of Secured Log Changes pursuant to NRS 361.310 (4) Fiscal Year 2013-2014, Norma Green. Churchill County Assessor. Assessor Green reported that, pursuant to NRS 361.31 0( 4 ), each year the County Assessor shall keep a log of all changes in value made to the secured roll after it has been re-opened. On or before October 31 of each year, the County Assessor shall transmit a copy ofthe log to the Board of County Commissioner and the Nevada Tax Commission. Chairman Erquiaga asked if there was any public comment but there was none. Commissioner Scharmann made a motion to note receipt in the Minutes that the 2013-2014 Secured Log Changes have been reviewed pursuant to NRS 361.310 (4). Commissioner Olsen seconded the motion, which carried by unanimous vote. 8:20a.m. Consideration and possible action re: Resolution 31-2013 authorizing the Clerk/Treasurer to create a bank account with First Independent Bank of Nevada, Kelly G. Helton, Churchill County Clerknreasurer.

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 4 A RESOLUTION AUTHORIZING AND ESTABLISHING A NEW BANK ACCOUNT WITH FIRST INDEPENDENT BANK OF NEVADA. Clerk/Treasurer Helton reported that Churchill County has an approved Investment Policy that conforms to the restrictions with the Nevada Revised Statutes. As part of the policy, the county can invest in saving accounts. The Clerk Treasurer's Office is responsible for the investment of public funds held by the county. The Clerk/Treasurer has several different types of investment accounts based on the need for the availability ofthe funds as outlined in the policy. Robbie Johnston, of First Independent Bank, has presented a Flex Savings Account option to the county through Clerk/Treasurer Helton and Comptroller Kalt that currently provides for a higher rate of interest than that of the State Treasurer's Office, Local Government Investment Pool. Provided to the board were some marketing materials of First Independent Bank that shows the financial strength and stability of the bank. This investment option would be collateralized, thus reducing the investment risk of this type of investment. Several local governments have similar investments with First Independent Bank. This investment option would compliment the existing options and allow us to support a local bank. Churchill County policy requires the Board of County Commissioners to approve any new bank accounts. As such, the Resolution seeks to establish this new account and transfer funds into the account as deemed appropriate by the Clerk/Treasurer. The establishment of a new account provides an additional investment option for Churchill County funds, in accordance with Churchill County's Investment Policy. If this investment earns a greater rate of return than other investments, it will provide additional resources for subsequent expenditures. The goal is to increase the investment yields, while staying within the Investment Policy guidelines. It would appear fiscally prudent to transfer investment funds from the Local Government Investment Pool to the Flex Account at First Independent Bank to obtain a higher investment yield with no change in the investment risks. Chairman Erquiaga asked if there was any public comment but there was none. Commissioner Olsen asked what the differential is on the rate of return. Are we talking millions? Comptroller Kalt said, right now, Clerk/Treasurer Helton has an investment program and the one that is most compatible would be the Local Government Investment Pool (LGIP) with the State Treasurer's office. Depending on the flex savings account at First Independent Bank for how much you invest, the more you invest, obviously, the higher the rate. However, the Clerk/Treasurer's other investment plan beats their rate. Right now, the spread is about 22 basis points, which doesn't sound like a lot but it is almost twice as much as the current Local Government Investment Pool investment. Commissioner Olsen asked if First Independent Bank is 22 basis points. Comptroller Kalt said it is 22 basis points higher. Clerk/Treasurer Helton will still have the same liquidity availability, the collateralization is there, the safe-keeping, all of the internal controls and safeguards are in place, and it is no different than any major bank. What they are able to do is how they reinvest that in the local community as a Nevada bank versus the big banks that may invest in Wall Street and around the globe but this is invested here around town and around Nevada. Currently, it is competitive. Clerk/Treasurer Helton monitors her investments and, as they mature, she looks at the

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 5 options and our cash flow and then works with his office to determine if we have a big project or big payment that may come up and then invests accordingly. He thinks this will help complement her Investment Policy and he is supportive of it. He commends Clerk/Treasurer Helton for moving forward with this. Commissioner Olsen asked if the collateralization is 105% and then it is mark to market, so the values are supposed to be kept updated. Comptroller Kalt agreed and said what happens at our fiscal year end is that we will get the GASB statement from the bank that allows us to mark to markets. It is presumptuous for him to anticipate what Clerk/Treasurer Helton is thinking but the sum of their initial discussions was that this will be one of many of our investments. It will not be the cornerstone or significant portion. It will start probably around $1M and probably hover there for awhile. It is that buffer so that, if we need to wire money back, for things, she is able to do that. Commissioner Scharrnann added that he has a little experience with this because, when he was with the Churchill County School District, they moved some bond dollars over to First Independent Bank of Nevada into a flex savings account. He found two things: (1) it was really easy to move it back out to pay the bills as they were doing bond projects; and (2) the service at the bank was great because decisions were made locally, action could be taken quickly, they didn't have to wait for decisions to be made from Reno, Las Vegas, or something, and it was really convenient to work with them. Clerk/Treasurer Helton said that is very good information to know. We have a very good working relationship with the LGIP and it is her understanding that this would be just as easy to work with. That makes her very happy to hear. Commissioner Scharmann said, during the year he was with the district, they moved their bond amount from $3M to $1OM because of the interest rate and the service. He understands that the school district has now increased the limit to $15M or something like that, so they have been pleased with the service from the bank. Chairman Erquiaga said he has used a flex savings account at First Independent Bank and, although he doesn't have as much money as the school district or the county, it is very handy, your money is not tied up and it is liquid and available. Commissioner Olsen said he certainly supports doing business locally versus another location and, if we can improve our financial standing, that is even better. Commissioner Olsen made a motion to approve Resolution 31-2013, which allows the Clerk/Treasurer to open a new bank account with First Independent Bank of Nevada and start investing funds within the new investment account. Commissioner Scharmann seconded the motion, which carried by unanimous vote. 8:25a.m. Consideration and possible action re: Repairs to the Western Nevada College {WNC) parking lot, to include patching and a slurry seal, Eleanor Lockwood, County Manager. Commissioner Scharmann said he wanted to give full disclosure that he worked for Western Nevada College (WNC) for 37 years. He was also called by Ron Marrujo about this issue and asked our Road Department to investigate the issue with Mr. Marrujo. That is how this process got started. With that disclosure, however, since he is not employed by the college any longer, he plans to vote on this issue but he wanted to make that fully known.

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 6 County Manager Lockwood reported that Churchill County owns the land, including the parking lot, at Western Nevada College (WNC). The lease agreement with the college has few specifics regarding maintenance of the parking lot and the grounds. The City of Fallon is currently constructing a through road around the Convention Center and the construction will include redesign of the parking spaces for the Convention Center that includes parking spaces on the east side of the college. The redesign will also include addition of a slurry seal and stripping. The parking lot south of the college is in need of some maintenance in order to address 5 locations where cracking has occurred and water seepage is eroding the asphalt. If the 5 areas are patched and a slurry seal is applied over the surface of the parking lot, further water seepage damage will be averted and the life of the parking lot extended for 5-7 years. An estimate to complete this work is in the order of $30,000. If the board determines this is a project to pursue at this time, a minimum of three quotes will be obtained and provided to the board for consideration. Funding would come from the Extraordinary Repairs and Maintenance Fund. Nobody really knows when the parking lot was first paved or, in the past, who has improved the parking lot. County Manager Lockwood said, when Commissioner Scharmann first brought this to her attention, she took the information that the Road Department had looked at, although the Road Department is not responsible for maintenance of anything other than their inventory of roads and bridges, and asked Facilities, Parks and Recreation Director Jorge Guerrero to continue the activity of looking for quotes to determine if there are contractors who would be willing to do a slurry seal etc. Before we went too far with that, she wanted to bring this item to the board to see if there is an appetite to move forward with it. Chairman Erquiaga asked if there was any public comment. Ron Marrujo thanked the board for taking this matter under consideration. Most of the board has probably seen the parking lot, which is in need of some repairs at this point. It is still holding its own but it has about five bad spots that need repair. The concern is that, if we don't move on this at this point, it will really be expensive in the future. They are hoping that we can get the funding to have that slurry sealed and patched. The college is going to try to come up with some money for the back part because we are only discussing the front parking lot here today. In talking with college folks, they are going to try to come up with the money to do the back part. Commissioner Scharmann said to Mr. Marrujo that County Manager Lockwood was asking him when the last time was that this had been paved but he is unable to remember that. It has to be more than 10 or 12 years ago. Mr. Marrujo said he has been there for 13 years but doesn't recall it being paved in the time that he has been with the college. Commissioner Scharmann stated, for the information of the other Commissioners, that this property is owned by the county that the college sits on and the college is under a 50 year lease, of which we are currently in year 31, he believes, so there is not a big rush to determine what will be done with that property in the near future. That is the status of the property at this time. Commissioner Olsen said the board did not have the agreement in front of them, so he is left a little bit in the dark about what the status is of the original agreement. Apparently, there was some sort oflease arrangement but what is the county's

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 7 responsibility? Is this a donation to the college? Is this the county's responsibility as the owner who is leasing the property to the college? County Manager Lockwood said she asked the District Attorney's office to look through the lease and to research the matter. As she stated in the Agenda Report, there is nothing stated about what the county's responsibilities are in regard to the grounds around WNC. That is why she was trying to find out what had happened in the past, who had originally paved it, if the county had ever done any stripping or anything like that, but we couldn't find any record of that. Commissioner Olsen asked if state funds had been used the last time it had been paved or was it done with county funding. Has the county ever had the practice of doing this in the past? Commissioner Scharmann said he would speculate, which he is fairly certain he is right about, that the answer is no. He doesn't believe the county has ever been asked by the college to do any work on that parking lot. He thinks the college went ahead and paved it or sealed it or something like that itself without requesting help from the county. Commissioner Olsen said it has been paved a long time, hasn't it? Commissioner Scharmann said it was paved in 1982 when they first moved in there. Commissioner Olsen said we would be plowing new ground in going this direction. County Manager Lockwood agreed and said it is one of her goals, in response to Commissioner Olsen's request of developing a spreadsheet and identifying which buildings we own, which we have a lease on, and what we maintain, to move in that direction and she expects to bring that information before the board. She believes that will bring to light some of the leases we have entered into a long time ago and which may need to be re-explored and responsibilities to be redefined. Commissioner Olsen said that is why he is probing at this. Is this the opportunity to develop a new understanding and put it to paper before we go and spend money, if that is what we intend to do? Is this the opportunity to really define the relationship and not necessarily change the lease or extend the lease per se but augment it in a way that we have a better understanding of what our responsibilities are? County Manager Lockwood said this is certainly that opportunity. She knows that we own the Library building and the grounds around it. There was money for them to move forward with a recent parking lot, although this is a slightly different issue because we have a lessee, but this is an opportunity. Mr. Marrujo said he thinks that is part of what has caused things to linger in regard to the parking lot repair. Perhaps that vagueness from both perspectives has contributed to that since we are not sure who is responsible for what. He would like to propose to the college that, in the future, hopefully as finances improve in the state and so forth, to be looking towards taking over some of that responsibility. The question at hand is, however, how long can we wait to repair it at this point? He is not the expert on that but they do not want to wait too long, whether it be college funding or county funding. Commissioner Olsen said that would be his next question. Paving has a season and we are rapidly running out of that. Where are we at in the timeframe? Do we have time to go back and sort through the relationship or are there certain minimal things that need to be done immediately to preserve this parking lot or we will lose more of the paving because the water gets under there? If we wait and go through another winter, we are going to cost ourselves money by waiting. County Manager Lockwood said her understanding from the Road Department, who obviously has quite a bit of expertise on what occurs when you have cracks, is that they didn't feel that, if we went another winter,

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 8 although we don't know what type of winter we will have, that it would rot away and put us in a whole heap of trouble. There are five areas that need to be attended to. She thinks the opportunity before us is that we have a contractor in the vicinity now and that may reduce costs but it is coming out of a different pocket of money. That is why she brought it to the board's attention to make sure, before they move forward with anything, whether or not there was an appetite to do this or whether we should take care of some other business first. Commissioner Olsen asked if the estimate is $30,000 and ifthere was anything behind that estimate? County Manager Lockwood said they got an initial estimate for putting in the patching required and the slurry seal. It will be in the vicinity of $30,000, plus or minus. When the actual quotes come in, that is when they will be able to tell the board. Commissioner Olsen asked if there are five areas that need immediate attention. County Manager Lockwood replied that there are five areas where there is seepage and cracking. Mr. Marrujo said he doesn't know about the back side, as they have not had that looked at. He is in contact with Road Supervisor Lingenfelter to come take a look at that too just to give an idea of any repair areas that are needed back there. Right now, we are just talking about the south side. County Manager Lockwood said we just need to proceed cautiously, so she will work with Jorge Guerrero and Mr. Marrujo and they can go out and look at that. First, let's see what the pleasure of the board is as to whether or not we have some time to work through that or whether we need to hurry up. Commissioner Scharmann said he thinks it has never been a surprise and it has been common knowledge in the county, city, and the college that the property was owned by the county but it seemed like, over the years, the only time anyone would step in was when there was an issue. For example, the last one he can recall is that there was a concern about the variance around the building on the north side between the building and the railroad tracks for laying some power lines. All of a sudden, they were asked to find the lease again, to review the lease, to see who could lay the lines and so forth just to double check those things. As County Manager Lockwood was saying, if you look at the lease, which can be provided, it is pretty vague from 1982. Chairman Erquiaga said he has some questions but they are more to deal with specifics of the process not specific to who should pay for it. He thinks that, had the lease been more specific, our questions would be answered but, typically, those older leases aren't that specific. Commissioner Olsen said he is inclined to have us go ahead and get the work done, even though he is not doing this blind to the fact that we are looking at working on our budget right now and that we have some work to do there. With these kinds of things, when you own as many properties as the county does, there are ongoing upgrades and facility maintenance that need to be taken care, and this kind of fits into that. The gray area here is who is responsible. We could probably put the college off for years and they would end up with potholes all over that place and at the Convention Center that is used by the city that also uses that parking lot considerably. The city, using RTC funds, is putting in a new road around there and trying to dress that place up, which is an asset to the entire community but we have this eye sore over here. He is mindful of all of those things too. He is inclined to go ahead and get it done but he would like to hear the other Commissioners' thoughts.

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 9 Chairman Erquiaga said the one thing that he keeps thinking, just from the agricultural leases he has done, is that there is usually a clause in there about who will maintain things, less normal wear and tear. The question then becomes, is this just normal wear and tear or have we reached or are we approaching the life expectancy of that asphalt because that decides who is really responsible for it. Is it is a long term improvement that the owner should make to the property or is it normal wear and tear that the lessee would be responsible for? He doesn't know how we answer that but he thinks it would be a mistake for either of us to allow the parking lot to deteriorate further. Commissioner Olsen said he would like to take this opportunity, not necessarily to use this as leverage, but use it as an opportunity for both parties to sit down with the District Attorney's office to get some flesh on the bones of this agreement and understand what each of our responsibilities are. We can negotiate that at our leisure over the next few months, he believes, but he is inclined to take care of this now. Commissioner Scharmann said he would tend to agree with Commissioner Olsen as far as maybe we can use this discussion as leverage to re-examine the lease that is thirty years old. Maybe it is time to look at that. The college is in a little bit of turmoil now as they are between Presidents, so he thinks the timing is right for the parking lot, even though the college might not be in a position to really make a decision on that front parking lot. Ifthey can come up with some dollars to help with one of the other areas of the college, the north or east parking lot, that would be great but, if we just focus on the south one that is used the most, he thinks that would be a good thing. Chairman Erquiaga said one of his concerns is about the process of the quoting and the bidding and that sort of thing. There is an option of splitting this and doing the patching on the pavement and not doing the slurry seal. The patching of the pavement is $3,500 or $3,000 or something like that. You are not going to find a contractor that does both slurry seal and asphalt in this area. A & K Earth Movers does not do slurry seal but they do asphalt, so they would have to sub-contract out the slurry seal. We might do better pricewise going direct to a slurry seal contractor that will do that, having the asphalt done ahead of time. It might save money and it might also put us under the $25,000 threshold where we can just get a quote and go, which would speed up the process. County Manager Lockwood said Chairman Erquiaga brings up a very good point, so she would ask that the board make an amended motion to say that we move forward but, basically, give authority that the board is inclined to have this work done as soon as possible and come back with the most reasonable quote. Comptroller Kalt asked to provide some insight. He has been involved in this situation from time to time with the college. County Manager Lockwood and he met with President Lucey over a year ago to talk about the parking lot. Let's go back even farther than that. It has never been a secret that the county owns the land. It is the college's building, they built the parking lot, they have always maintained the parking lot and they have always maintained the facilities. The question really becomes, in his mind, since he has a copy of the lease because the college, about 5 years ago, wanted us to donate that land but we chose not to and we gave them over $100,000 to do some improvements at the college to buy some land for expansion. It is a good time for us to have a partnership with the college and to address these needs. In his mind, it is not a question of whose responsibility it is. We know whose responsibility it is. Dr. Lucey, in

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 10 that meeting, talked about it and she asked about the road and the drainage issue to get that resolved. We informed her then that the city was moving forward with that project and they have since done so. At that time, the question was if there was money from the University to redo the entire parking lot. Clearly, they indicated and the Legislature found, that they have significant funding issues just to keep the college open so, obviously, we knew that the answer was that there was no funding for that parking lot. He doesn't think it is an issue for us to sit here and ask if it is the county's responsibility because we own the land or if it is the tenant's responsibility. He thinks it is an opportunity for us to continue that positive partnership that we have with the local college to help support the local college and to assist where possible. As Chairman Erquiaga has pointed out, he thinks that clearly there are two items, as pointed out by the Road Superintendent, for the patching of multiple spots, which is very important to address. He thinks there are some economies of scale to be had with the contractor who is there now because they could cut those and patch those and bring the pavement in at the same time that they are paving the other part. The slurry seal is done by a different company, as indicated by our Chair. Whether that is done in October 2013 or September of2014 or 20 15, is not as significant for the long term credibility as it is to fix these five or seven spots. We have money, as Chairman Erquiaga suggested, to fix those spots out of the Extraordinary Repairs and Maintenance Fund. He thinks it would make sense to move forward with that. If the board wants to move forward with the rest of it, we could do that but he thinks that it is important, from a good faith perspective, to show the college that we want to be a good partner with them by moving forward with at least the stuff that will maintain the integrity of the parking lot. Mr. Marrujo said his understanding is that whatever the board wants to do would be fine but, eventually, whenever it gets slurry sealed, he understands it will extend the life of the parking lot 5-7 years. Commissioner Olsen asked for clarification on how to state the motion and if it should be split up. County Manager Lockwood suggested that it be done rather vague by giving staff the authority to move forward to obtain quotes to get both jobs done and to come back to the board. In that, the timing issue will be addressed so, if we need to get the repairs and patchwork done right now, we can and that is the minimal cost of $3 ,500 or $3 ,600 and, if the slurry seal can wait and it is done by another company and there are no economies of scale, we can do that at a later date . She asked that it be made fairly vague and just give staff the authority to move forward and come back to indicate when it is going to be done. Commissioner Olsen made a motion to direct the Facilities, Parks and Recreation Director to get the work done as soon as possible and to obtain the most reasonable quote for repairs to the WNC parking lot and to submit these at the October 16,2013 meeting for board consideration. Commissioner Scharmann seconded the motion, which carried by unanimous vote. 8:30 a.m. (A) Consideration and possible action re: Appointment to the Cemetery Board for a term expiring on September 30,2017, Geo(Stark, Human Resources Department. Human Resources Director Stark reported that the Cemetery Board currently has one vacancy. The county advertised multiple times for the opening and received one

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 11 application, from David Colburn. A committee comprised of Facilities, Parks and Recreation Director Jorge Guerrero and Human Resources Director Geof Stark met with the applicant to interview him and ensure he is a good fit for the board and that he understands what serving on the board entails. The committee recommends that David Colburn be appointed to serve a term on the Cemetery Board. Chairman Erquiaga asked if there was any public comment but there was none. Commissioner Scharmann made a motion that Churchill County Appoint David Colburn to the Cemetery Board to fill a term that expires on September 30,2017. Commissioner Olsen seconded the motion, which carries by unanimous vote. 8:30 a.m. (B) Consideration and possible action re: Appointment to the Parks and Recreation Commission for a term expiring June 30, 2017, Geo(Stark, Human Resources Department. Human Resources Director Stark reported that the Parks and Recreation Commission currently has one vacancy. In May of2013, the county advertised for several openings and still has two viable applicants from that group- Erica Hybarger and Rick Dentino. Additionally, Ava Case is the person whose term recently ended and she has applied to serve another four-year term. Having already interviewed the other candidates and being aware of Ms. Case's service to the Parks and Recreation Commission, staff recommends that Ava Case be reappointed for another four-year term. Chairman Erquiaga asked if there was any public comment but there was none. Commissioner Olsen made a motion that the County reappoint Ava Case to the Parks and Recreation Commission to fill a term that expires on June 30, 2017. Commissioner Scharmann seconded the motion, which carried by unanimous vote. 8:35 a.m. (A) Consideration and possible action re: Interlocal Contract between Churchill County and the State of Nevada, Department of Health and Human Services, Division of Welfare and Supportive Services, for the Medicaid Match Program for FY2014 and FY2015, Shannon Ernst, Social Services Director. Social Services Director Ernst reported that, based on Legislation that passed during the 2011 Session, SB 485, required match standards to change. Nevada counties are required to pay Federal Supplementary Security Income Benefit Rate (FBR) of 142% up to 300% and 156% up to 300%. These projections cover waiver participants and institutional care for Churchill County residents. The language within the agreement has changed to include the following: not to exceed the 8 cent cap and bills will no longer be paid on quarterly projections but on monthly actuals. The projected costs for the Medicaid program are as follows: FY14 FY15 142% to 300% $112,425 $112,226 156% to 300% $283,120 $283,120 The fiscal impact is estimated and the county will be billed based on actual services provided. Additional requirements, such as providing the entire application of recipients to the counties, has been included in the new contract. This will allow for counties to verify place of residence prior to institutional placement, complete monitoring of actual

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 12 placement of residents, and income determination. This language was key to contract negotiations to enable counties to complete auditing of the program. The estimated fiscal impact for FY 2014 is $395,545 and for FY 2015 it is $395,346, which decreased from $592,723 in FY 2013 . The projected decrease is based on payment standards to be implemented with the Affordable Health Care Act. Funding will come from the Social Services Indigent budget. Chairman Erquiaga asked if there was any public comment but there was none. Commissioner Olsen asked if there is going to be any impact from ACA on these numbers. Social Services Director Ernst said there will not be on this contract. That will be seen with the Indigent Accident Fund (IAF) and SUP Fund accounts. All of those individuals that were applying for that medical will no longer be eligible because there is a prior resource that can take care of that, so you will not see an impact with this but you will see it on those others, which are amounts that we put directly from our tax base to the state to an account to supplement to the hospitals. Commissioner Scharmann asked if the reduced amount means per applicant. Social Services Director Ernst said it is per individual because Medicaid rates are being reduced for how much they will pay to the providers. That is where we will see the savings. We are at the 8¢, which means we cannot pay more than the 8¢ cap on this, which is stated in the contract. These are estimated amounts but, like now, we are seeing bills coming in at $24,000 per month and they are capped there. Previously, we were seeing these at $56,000 or $57,000 per month. That is where they are working to make sure that the individuals are eligible and that these are being paid appropriately. This is what she talked about in the budget hearing. We didn't have all of the information to go out to visit and make sure they are receiving the care that we are being charged for and that is something that we are going to start doing. That is why she is excited to have this contract. Commissioner Scharmann asked how she will do that with the staff she has. Ms. Ernst said they will just do it. When she is in Vegas with her other meetings, she will visit the facilities in Vegas. Numerous individuals are located right here, so we can go out on a regular basis here to the Highland and Homestead facilities. Chairman Erquiaga asked if there were any further questions or comments but there were not. Commissioner Scharmann made a motion to approve the Contract with the State of Nevada, Department of Health and Human Services, Division of Welfare and Supportive Services, for the Medicaid Match Program for FY 2014 and FY 2015 and to authorize the Chair to execute the same. Commissioner Olsen seconded the motion, which carried by unanimous vote. 8:35 a.m. (B) Consideration and possible action re: CDBG annual update and discussion on application priorities, Shannon Ernst, Social Services Director. Social Services Director Ernst reported that, during the 2013 Forum in conjunction with NACO and League of Cities Conference held on September 10, 2013, the program had no major changes. The following represents notes of the program outline: • FY 2014 Almost $2.5 million was awarded to rural Nevada. • Projects included Public Service, Public Facilities, Housing, Economic Development, Planning, and Housing Rehab (break down attached to Agenda Report).

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 13 • FY 2014 units of local government were able to submit two applications and unlimited set-asides. • Churchill County was required to attend the administration workshop and annual forum. Program update for FY 2015 • Approximately $3 million will be available, includes administration. Approximately $2.6 million for programming/projects. • Churchill required to attend application workshop, administration workshop, and annual forum. • Churchill County continues not to be eligible based on county-wide LMI, so projects will have to be eligible based on location, special demographic, or blight. • Units of local government will be eligible to submit two applications and an unlimited amount of set-asides. • New definition of set-aside: any project that affects 2 or more communities. Does not need prior approval from forum to be eligible under this category. • Projects maintain the same priorities as previous- see Program Highlight Sheet. Churchill County has moved forward in closure of all past grants. Currently, there are two open projects. The Notices to Proceed were received mid-September. Also provided with the Agenda Report was the five year award spreadsheet. Chairman Erquiaga asked if there was any public comment but there was none. Commissioner Olsen asked what form economic development monies can be used for. Social Services Director Ernst replied that, with economic development, you have to, for every $30,000 to $35,000, create at least one job. If you look at industrial parks, which is very costly and there is not enough money within these funds to do, but you can do plans for an industrial park if you say that, within so many years, you will create those jobs. Economic development plans, training, counseling, and those types of activities can also be done. Commissioner Olsen asked if plans and community needs assessments would fall under that. Ms. Ernst said community needs assessment is actually a separate category and it is not put under economic development, so you do not have to create jobs with those. We completed our community needs assessment in 2010 and we will look at revising that within the next couple of years. That is where a lot of these priorities are taken from. Community Olsen said maybe he is using the wrong terminology but, within economic development, looking at an assessment, what would be the best thing for us to do within economic development in the community? He knows there has been some work done on that with NNDA and he wanted to know if this is an opportunity to augment some of that. Ms. Ernst said it is and that is some of the discussion that has been made. They met with NNDA and they are saying that we really need an economic development plan to go through and outline if it is agriculture, light manufacturing, or what the objective will be for our community to move forward to develop additional businesses here or larger businesses. They are talking about having a real clear and defined plan as to what our objectives are and what our strategies are to create this. They have met with NNDA and she and County Manager Lockwood will be writing the application to bring forward. Commissioner Olsen asked how that fits with that low

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 14 income component ofthe CDBG grant. Ms. Ernst said you want to create jobs within the community that anyone can access, particularly low to moderate income, which is your under-employed or unemployed. That is where, with this plan, we would have to create at least three jobs if we are looking at $90,000 to $100,000 that are from the low to moderate income population. Commissioner Olsen asked if that means from the plan itself. Ms. Ernst agreed; from the plan, we would need to create 3 jobs. That is where we need to make it very defined and clear as to what we will work towards so that we can make that happen. She has sat on the advisory committee side and they have funded things and then these jobs were not created, such as giving matching dollars to an industrial park but then the industrial park did not open. It sat there for 10-15 years without being closed until HUD came in and said they had to close the grant, which meant either they gave the money back or the jobs had to be created. That is why we will have very clear strategies for how to create those jobs because, always, with the timeline for CDBG, she doesn't want anything left open longer than 18 months. We had another economic development training program that stayed open way longer than that period of time because we could not count the beneficiaries. We revised that in the future when it was supported it so that it could be closed in a timely manner. One of the biggest things is, for example with the Out of Egypt grant, we were able to receive our notice to proceed in November and close the grant in January. That is what we want to see- these moving rapidly. Our construction projects do take longer with the environmental aspects and things of that nature. This is a plan, so we will not have an environmental aspect but we will have to be very clear how we will create jobs. That would be outlined in the application, which has not been started at this point. Commissioner Scharmann said for him economic development would be divided into two categories - creating new industry or new businesses or enhancing existing businesses. Could these jobs be created either way? Ms. Ernst said whatever the plan outlines, that is what will need to be created. The statement was made that we have the DF A Plant opening, which will create jobs and they will be working with our different economic development authorities but does that truly come from the plan? That is where she and County Manager Lockwood struggle, as they both want to make sure that we are creating new jobs. We don't want to have a plan to have a plan. We want to have something that is creating new jobs and is working. Commissioner Olsen made a motion to participate in the Community Development Block Grant Program year for FY 2015 and to set the first Public Hearing for October 16, 2013 to approve the Community Needs and Housing Priorities. Commissioner Scharmann seconded the motion, which carried by unanimous vote. NEVADA LAND TRANSFER TASK FORCE UPDATE: Chairman Erquiaga said they had a meeting in Winnemucca on Friday, which was well attended. They were one or two counties that couldn't make it. One of the things that they are realizing, which is no surprise to anyone, is that, since the Legislature did not set aside any money for it, there are going to be expenses related to this. One of the proposals on the table right now is the update the numbers from the studies that Eureka County paid for in 1994 and 1996, so the direction was given to the Nevada Association of Counties (NACO) to come to the counties and ask if we would participate in that cost. The cost of the estimate they have is $66,000, which would be a little under $3 ,900 per

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 15 county. There was a lot of discussion on how to divide that up by things such as acres of public land, population, and things such as that and it became a real stumbling block, so they basically said let's just divide it by the seventeen counties and see what happens. This board will be seeing that request come through soon. He is not really sure how he feels about this, other than this thing is going to go ahead whether all the counties kick in or not and there needs to be information whether all the counties want to pay or not. That can be discussed at the next meeting. Chairman Erquiaga said, as for the meeting itself, it went well and there was a presentation from Jim Lawrence, from State Lands, who gave a history of state lands in Nevada since statehood. It pretty much boils down to the fact that we started out being given two sections in every township in the state to support schools, which totaled four million acres, and much of that was not saleable so they traded it for two million and later traded that in. In the end, all of the land was either traded back or sold essentially by 1926 and now the state owns 2,900 acres instead of four million. His concern is that he doesn't want to see history repeat itself if we end up doing this, sell all the land, and are left with a bowl of soup by trading our birthright. They did not set a future meeting date. It becomes difficult scheduling everyone's time. The Humboldt County Courthouse facility was okay but it lacked some on videoconferencing abilities, so Washoe County offered to host the next meeting because they have better facilities but a date was not established. It will probably be held sometime in late October. Humboldt County had the videoconferencing equipment but this was the first time they had used it in that application, so they spent a lot of time listening to Elko County talk but they couldn't hear us but we could hear every breath they took. LETTERS RECEIVED: None. OLD BUSINESS: None. NEW BUSINESS: A. Consideration and possible action re: Change of date of the second regular November 2013 meeting, the first regular January 2014 meeting, and change of date or location of the first regular meeting in April2014. Commissioners have asked that we review the schedule of certain regularly scheduled board meetings, the first of which is the meeting scheduled November 20, 2013. Chairman Erquiaga will not be able to attend on that date, so if the meeting is to remain on that date, we will need both other Commissioners to be present for a quorum or we will need to reschedule. Further, the first regularly scheduled meeting in January 2014 is scheduled for January 2 but it might be beneficial to move the date of the meeting because of holiday schedules and traveling. Finally, the Churchill County Assessor's Office has requested use of the Chambers for the Assessor's Spring Conference, which is being hosted in Fallon this year. Deputy Clerk Moore thought that the board might consider either moving the date of its meeting in April or the location to enable the Assessor's Office to utilize the Chambers because of the importance of this annual conference being hosted here in Fallon. Commissioners Olsen and Scharmann are both available for the second meeting in November, which is set for November 20th, so the meeting was not rescheduled with

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 16 Chairman Erquiaga's absence during that time. After discussion, the meeting in January was also not rescheduled and will be held on January 2, 2014. Commissioner Olsen made a motion to change the location of the first regular meeting scheduled for April3, 2014 to the City Council Chambers, if available. Commissioner Scharmann seconded the motion, which carried by unanimous vote. B. Consideration and possible action re: Approval of Renewal of License from the American Society of Composers, Authors and Publishers (ASCAP). Deputy Clerk Moore reported that renewal of the license with AS CAP will allow Churchill County to legally play music for musical events, concerts, shows, pageants, sporting events, festivals, competitions, and other events of limited duration presented by Churchill County. The fiscal impact will be $332.25. The license will be for the period of October 1, 2013 to September 30, 2014 and funding will come from the General Fund. Chairman Erquiaga asked if there was any public comment but there was none. Commissioner Scharmann made a motion to approve renewal of the license from the American Society of Composers, Authors and Publishers and to pay the invoice of $332.25. Commissioner Olsen seconded the motion, which carried by unanimous vote. C. Consideration and possible action re: Silver Creek Farm LLC - An application for a Sending Site and Transfer of Development Rights calculation for property located at 5455 Testolin Road, APN: 006-791-27,5601 Testolin Road, APN: 006-791-28, and Berney Road, APN: 006-851-81 consisting of±235.82 acres with ±206.43 water righted acres in the A-10 land use district. Planning Director Johnson reported that an application for a Sending Site and Transfer of Development Rights (TDR) calculation was filed for property located at 5601 Testolin Road, 5455 Testolin Road, and a parcel on Berney Road, consisting of235.82 acres total with 206.43 acres of water rights in the A-1 0 land use district (APN: 006-791- 28, 006-791-27, and 006-851-81). Part of the property is adjacent to NAS Fallon. The subject property meets the 20-acre minimum parcel size for a Sending Site. The Sending Site Review Committee reviewed the application and recommends approval of the Sending Site, with a total of 324 TDRs. At the Planning Commission meeting, John Dirickson, representing NAS Fallon, stated, "These three parcels are situated right off the end of our east-west runway and they are very important to our program. It is important for us to purchase the development rights associated with this property, if possible. We greatly support this application." Both the Sending Site Review Committee and the Planning Commission voted unanimously in favor of recommending approval of the Sending Site and recommended a total of 324 TDRs be assigned to the property. Chairman Erquiaga asked if there was any public comment but there was none. Commissioner Olsen disclosed that his nephew, Jared Laca, lives behind Silver Creek Farm so he will abstain from this matter. Chairman Erquiaga said he believes Pasture Road is right there on the right hand edge of this and asked if that is correct, which was answered affirmatively by Planning Director Johnson. Chairman Erquiaga said this is a good location because it is right off of that runway. Commissioner Scharmann made a motion to approve the Silver Creek Farm LLC application for a Sending Site and assign a total of 324

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 17 Transferable Development Rights (TDR) to the property upon recordation of a conservation easement deed. Commissioner Erquiaga seconded the motion, which carried by majority vote with Commissioner Olsen abstaining. D. Consideration and possible action re: Corkill Bros. Inc. -An application for a Sending Site and Transfer of Development Rights calculation for property located at 425 E. Corkill Lane, APN: 006-831-36, and E. Corkill Lane, APN: 006-831-37, consisting of±208.33 acres with ±166.25 water righted acres in the A-10 land use district. Planning Director Johnson reported that an Application for a Sending Site and Transfer of Development Rights calculation for property located at 425 E. Corkill Lane and E. Corkill Lane was filed by the Corkill Bros., consisting of208.33 acres with 166.25 acres of water rights in the A-1 0 land use district (APN 006-831-36 and APN 006-831- 37). The subject property meets the 20-acre minimum parcel size for a Sending Site. The Sending Site Review Committee reviewed the application and recommends approval of the Sending Site, with a total of 270 TDRs. At the Planning Commission meeting, Bruce Corkill, of 400 East Corkill Lane, said he already has one of his ranches in this program and he wants to get the rest of his ranch into the program- it is one of the best programs to help agriculture. There is already land on both sides of his ranch that they have taken the water rights off of. The worst thing the county did was allow water to be taken off the property and this program helps keep that water on the property forever. John Dirickson, representing NAS Fallon said, "This property is a little further out than the Laca properties but it is definitely within the buffer zone and the base would like to prevent residential development out there as much as possible. This request supports the base mission and the county's goals for agriculture, so we approve and support this application." Both the Sending Site Review Committee and the Planning Commission voted unanimously in favor of recommending approval ofthe Sending Site and recommended a total of270 TDRs be assigned to the property. Chairman Erquiaga asked if there was any public comment but there was none. Commissioner Scharmann said this is probably getting to the outer limits for where we would go with these. Planning Director Johnson said this is getting pretty close to that buffer line and it is nearly about as far west as you can get to still be considered for this program. Commissioner Olsen made a motion to approve the Corkill Bros. Inc. application for a Sending Site and to assign a total of 270 Transferable Development Rights (TDR) to the property upon recordation of a conservation easement deed. Commissioner Scharmann seconded the motion, which carried by unanimous vote. Planning Director Johnson said he believes the board only saw one of these come before it in 2012 but there have been about seven or eight in 2013, so there has been an increase in people wanting to get into the program. There is one more that will go before the Sending Site Review Committee this next month, so this board should see one more before the end of the year. E. Consideration and possible action re: Approval of Application for Funding from Churchill County to Support a Community Event or Program.

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 18 County Manager Lockwood reported that an updated Application for Funding from Churchill County to Support a Community Event or Program has been developed for review and consideration by the board. As Churchill County has limited funds each year for community support projects and events, it is important to carefully evaluate each request based on the suggested criteria listed in the Committee Review Form. Therefore, if supported by the board, the County Manager will assemble an Application Review Committee. Once a completed application form has been submitted to the County Manager's Office, the review committee will meet to evaluate the request. The proposed criteria are listed on the Committee Review form. Once the review is complete, the application will go before the Board of County Commissioners, along with the recommendations of the Application Review Committee. The committee will outline a summary of findings for the board, along with the county's current budget for community support. If the board approves a request which exceeds the budgeted amount, staff will request the board determine where the funds should be transferred from. Final decisions to approve or deny an application will remain with the board. If approved, the County Manager will send a letter to all of the groups who have requested Churchill County support funding within the last couple years to notify them of the process and updated application. Chairman Erquiaga asked if there was any public comment but there was none. Commissioner Scharmann made a motion to approve the Application for Funding from Churchill County to Support a Community Event or Program and, furthermore, to authorize the County Manager to form an Application Review Committee to make recommendations to the Board of County Commissioners. Commissioner Olsen seconded the motion, which carried by unanimous vote. F. Consideration and possible action re: Letter to Chancellor Klaich and Regent Knecht requesting that Churchill County be included in the selection process for President of WNC. County Manager Lockwood reported that Dr. Carol Lucey notified the Nevada System of Higher Education that, after 15 years of service, she would be resigning as President of Western Nevada College (WNC). Churchill County has been actively involved in support of"hold harmless" for WNC and Great Basin College. However, the last two Legislative Sessions have been particularly damaging to rural community colleges, including the Fallon Campus. It is vital to have a President of WNC who sees the value of rural campuses, such as Fallon, and supports efforts for fair funding formulas. WNC Fallon Campus is an important part of our community and provides educational opportunities for students seeking degrees and workforce education. Churchill County has an important perspective to bring to the table when selecting a new President for Western Nevada College. A draft letter has been prepared for the board's consideration requesting that Chancellor Klaich provide an opportunity for stakeholders to be involved in the process. Chairman Erquiaga asked if there was any public comment but there was none. Commissioner Scharmann said he has been attending the Restore Our College Campus Committee (ROCCC) meetings monthly and this would be the same recommendation from the ROCCC, that the county be represented in that selection process. He wanted to add, candidly, that he served on the last two presidential selections for the college,

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 19 selecting President Lucey and, before that, selecting James Randolph, so, if we get the point where they do accept our recommendation and there is a County Commissioner or someone to serve on this, he would like it to be somebody besides himself, although he really hesitated about whether he should even say that. He is too attached to this thing and it would be a good experience for someone else to be involved in it. Commissioner Olsen made a motion to approve the draft letter to Chancellor Dan Klaich requesting that a representative from Churchill County be included in the selection process for a new President of Western Nevada College. Commissioner Scharmann seconded the motion, which carried by unanimous vote. CONSENT ITEMS (Action items generally not requiring discussion or explanation) All matters listed under the Consent Agenda are considered routine and may be acted upon by the Board of County Commissioners with one action and without an extensive hearing. Any member of the Board or any citizen may request that an item be taken from the Consent Agenda, discussed and acted upon separately during this meeting. 1. INFORMATIONAL ITEMS- A. Consideration and possible action re: Nevada Division of Environmental Protection renewal of Septage Land Application Permit #NS2008501 to the Webb Ranch. B. Consideration and possible action re: Nevada Division of Environmental Protection's request for release/spill information from Kennametal Inc. for a contaminant release/spill of sulfuric acid that was reported on September 4, 2013. C. Consideration and possible action re: Notification from the Nevada Governor's Office of Economic Development of its Notice to Proceed with the Public Buildings ADA Project grant funded by CDBG as 13/ABR/02. D Consideration and possible action re: The U. S. Fish and Wildlife Service provides its Notice of Land Sale for Fallon, Nevada scheduled for October 18,2013. E. Consideration and possible action re: BLM solicitation of public consultation for the Dry Creek, Simpson Park, and Grass Valley Allotments Proposed Drought Response Actions for the Mount Lewis Field Office. F. Consideration and possible action re: Grantee's Agreement for Federal Fiscal Year October 1, 2013 to September 30, 2014 for CART services. G. Consideration and possible action re: Nevada Division of Environmental Protection's No Further Action Determination for the Waste Oil and Diesel Spill/Release at Moltan Nevada, Exit 65 on Interstate 80 in Nevada. H. Consideration and possible action re: Notification from the Nevada Governor's Office of Economic Development of its grant monitoring on-site review of the grant project files funded by CDBG.

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 20 I. Consideration and possible action re: Notification from the Nevada Department of Transportation (NDOT) ofthe full execution of Contract #3509 for Project No. SP-OOOM(186) on SR 116 and SR 860 in Churchill and Pershing Counties. J. Consideration and possible action re: Receipt of a Report to Congress and the Secretary of Energy on the Review of U.S. Department of Energy Activities to preserve records created by the Yucca Mountain Repository Project. 2. REVIEW- A. The Churchill County Social Services Office provides notification of the receipt of an indigent medical application from Renown Health under Client #5809 for which eligibility will be conducted pursuant to Chapter 428 of the Nevada Revised Statutes. 3. COMMITTEE AND DEPARTMENTAL REPORTS - A. Building Department's Revenue Report for August 2013. B. Treasurer's Report for August 2013. C. Planning Department's Revenue Report for August 2013. Commissioner Scharmann made a motion to approve the Consent Agenda as submitted. Commissioner Olsen seconded the motion, which carried by unanimous vote. CONSIDER FUTURE AGENDA ITEMS - None. COMMISSIONER REPORTS: CHAIRMAN ERQUIAGA: Chairman Erquiaga said, on the 18th, he went to Carson City for the Carson Water Subconservancy District (CWSD) meeting. On the 19th, he had the Museum Ascensions Committee meeting. Those meetings are always fun for him because he is so interested in history. On the 23rd, he attended the dinner at The Slanted Porch regarding the Supreme Court, although he doesn't know what it was called. He has never seen so many attorneys in one room in his life, nor has he ever been handed so many business cards either. It was a good dinner and an informative presentation. He had a couple of good conversations with various folks there. He attended the regular bi-weekly meeting with county administrative staff on the 24th and, on the 27th, he attended the Nevada Public Lands Task Force meeting in Winnemucca, which he already reported on. He had the Bond Oversight Meeting on the 1st and was able to meet the new School District Superintendent. Yesterday, all of us attended the budget workshop. On Saturday night, he attended Clerk/Treasurer Helton's big birthday party, which was a lot of fun. Finally, he wanted to note the passing ofhis Aunt Mary Erquiaga Clifford. She was five days from her 95th birthday. COMMISSIONER OLSEN: Vice-Chairman Olsen said he attended the Central Nevada Regional Water Authority (CNRWA) meeting on the 19th. Most of it was discussion on the Colorado River and the Southern Nevada Regional Water Authority (SNRWA) and their plans for the pipeline and costs related to that in Southern Nevada. The cost is $15B to build that pipeline. They are putting the third straw into the Lake Mead, which was at $800M and still going, which is not finished. The Bureau of Reclamation (BOR) has come out with some recommendations to maintain the level in

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 21 Lake Powell and basically level the two levels between Lake Powell and Lake Mead so that, at the end of2014, they will both have about 40% of capacity in both lakes. Right now, there is an imbalance. One is at 60% and one is at 35% or something like that. The other interesting thing that came out of that meeting, which he had never heard of these kinds of studies before, was that they have gone back 1,600 years using tree rings to look at what the droughts have been on the Colorado River and water flows. Based on that, they have extrapolated that there have been five other droughts of this magnitude on the Colorado River over that period of time, so we are in a once-in-many-lifetimes-drought and it just so happens that there are tens of millions of people living off of that river now. Unless the drought reverses, there are still huge impacts to come. The pipeline that is going north can handle on the order of about 300,000 acre feet but they have only got 88,000 acre feet of water rights that they have acquired. Around Ely, the fear is that the Ruby Marshes are not that much further north. Of course, he thinks that we have to think about this in terms of ourselves here. We have a pretty reliable source of water here that someday those impacts could come to us too as they continue to look north for their water. There are political rumblings that the rate payers are upset about the $800M straw into Lake Mead and that, when they get the bill for the $15B to build this pipeline, there will be a lot more grumblings. He thinks we will need to keep our eye on that to see what happens. SNRW A would not allow any of their experts to speak at the conference later this month, so they have played a little cutesy with us folks up north. He thinks that is a good place for us to be - to be on guard for our own resources that we have here and to rally with our neighbors. If we don't hang together, we will hang separate. It is a good place for us to invest our time. Commissioner Scharmann said he heard a couple of years ago that the plant for desalination of ocean water in a pipeline would be cheaper than pulling water from Northern Nevada. He asked if he has ever heard anything about that. Commissioner Olsen said there was a lot of discussion about that and the reason he didn't talk about it was because he thought he had mentioned it in the past. He thinks Demar Dahl had been here or maybe he has just bent his ear about it but the costs are about $lB. He forgets which community in Southern Nevada has one stood up and operating. We know what the real costs are because we have someone who has done it. It is much cheaper than what they propose for Las Vegas to go to Seaside City in Southern California, pay for a plant to give them drinking water, and then go up and keep their water upstream. It is much, much cheaper than doing what they are proposing. The cynic in everyone is that, while they have got a lot of political power in the Congress right now, now is the time to come get this water because they can always get the salt water. The other thing that was thrown out there is that there is about 1 million acre feet that is supposed to end up in Mexico every year at the end of the Colorado River. The water, when it gets there, will barely run, the quality is so bad. Given the United States, with all of our proclivity for lawsuits, NEP A, and all of that stuff, it is a lot easier to go to Mexico and make a deal with a city there by telling them that we will give them drinking water and have them give us their water upstream, part of that 1 million acre feet. That is much, much cheaper to do that. He is sure there would be a lot of wrangling to make all of that happen. The hope is that maybe we will have a better result - better result for the people of Las Vegas, which is the only community built in the United States that is not on a major river, the Colorado excepted because it is still 40-50 miles from it. The river does not run

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 22 through town. There is a real problem there. Again, he thinks it is a good place for us to spend our time. On the 20th, the Stillwater Conservation District met. It was a good meeting and it was good to see those folks, although there are no burning topics to report. He attended the same court thing as Chairman Erquiaga mentioned and he struggled for a name for that, as well. It was interesting to sit through their ethics discussion. He saw some old friends there too. On the 24th, the CEDA meeting was held and they accepted a budget. That evening, the NNDA annual dinner was held, which was like a pioneer awards ceremony as it was the first time for them. There were 350 people in attendance, so it was very well attended. We were allowed to recognize Fallon Auto Mall as the business of the year in Churchill County for their pay-it-forward program. Chris and Ember Henning were there as guests ofNNDA and Churchill County to receive the award. He got a call from Kurt Henning to say that they were very thankful for that award. It was a good dinner. The guy he was sitting at the table with was the Starbucks grinder guy in Minden. They got an award for fifty new jobs that average $24 an hour, making a total of 300 employees grinding coffee. He asked the guy why they are located in Minden and what their major market is, whether it was the entire west coast, and was told that it was California only and they wanted to be as close as they could get without being in California. That is how they chose Minden. GE Bentley has 750 employees. He attended Navy League on the 25th. There is a new Admiral at the base and he got a chance to meet with him. He gave the talk that night. Yesterday, he had an invitation to JPO to see the new recreation area they did outside. De Vere dedicated that to her father that passed away this year, so it is called the WBK Rec Area, which is her father's initials. It was a nice little event that they put together. De Vere explained what is out there and what they are doing with all of the things. There were a lot of donations from local businesses and NV Energy gave some old power poles and other folks came in to help. He doesn't know if anyone has received notice but Jeff Fontaine with NACO is one of the finalists for the Washoe County Manager position. That would be a big loss for NACO, as he is a great guy and has done a fantastic job. He's been there seven years. It is no surprise that he is one of the finalists. Jeff said that he did not apply but was asked to apply for the position, which does not surprise him. COMMISSIONER SCHARMANN: Commissioner Scharmann said that, on September 23rd, he attend the ROCCC meeting in which Regent Knecht has played a major role in that and discussed the resignation of the President and some different things regarding the Fallon Campus of Western Nevada College. It was an interesting meeting. On September 26th, he attended the Hospital Board meeting and learned a little bit about value-based purchasing, although he still doesn't quite have it figured out but he is getting there. He is impressed with John D'Angelo because of the accountability that the hospital is placed in, particularly with regard to his work with patient care and the patient surveys that are done to make sure of the satisfaction of the patients, as well as their recruitment of new doctors and health care providers. On the same day, he attended the Library Board meeting and everything is now directed towards the wine and cheese fundraiser scheduled for October 12th.

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 23 On September 28th, he and his wife were involved quite a bit with the Cancer Warriors of Central Nevada event to help raise money for two cancer victims from our community, Shellie Hubbard and Skylar Cervantes. It was a nice event. As stated, he also participated in the budget workshop with everyone yesterday. He mentioned that he still has not heard anything as far as when the meetings will be held regarding SB 391 but he is still moving on as if they are actually going to meet. He will be in Elko and will meet with Commissioner Myers, Commissioner Williams, and County Manager Stokes tomorrow in Elko to brainstorm some ideas about funding and governance of community colleges. He would like to get their views on that. He told Rob Stokes, when asked if he cared if anyone was there from Great Basin College, that the invitation list was up to him and he didn't care. COUNTY MANAGER LOCKWOOD: County Manager Lockwood provided a written report and said she would just cover a couple of highlights and call attention to what is coming up in the future. She attended the September 19th Truckee-Carson Irrigation District (T.C.I.D.) O&M Committee meeting on the Truckee Canal safe water flow. Our community and water users, in her humble opinion, really need to pay close attention to this. The Truckee Canal is our lifeline and we need to find a way that we can continue to keep water coming through the canal. She thinks that the take from that meeting, at least from Rusty Jardine, is that there have to be some very heavy lobbying efforts made in Washington D.C. to indicate that we have very old infrastructure here, as does the rest of the nation, but this is an historical structure and it is a vital need for us to try to find some funding to make the repairs to keep that vital conduit alive, if you will. On September 24th, she had her regular teleconference with Navy San Diego. For budgetary purposes, the 90%/10% request for funding is still moving up the chain of command. Before the end of this calendar year, we hope to close on the Shaw conservation easement, for a total cost of around $35,000, and the Carson Livestock conservation easement. The reason we moved forward with the Carson Livestock conservation easement is that the property owner has a potential buyer and, rather than spending more money to go back to the beginning and starting over, we thought it was important to move forward with this particular property or two properties and to close before the end ofNovember. She believes the total cost for both was around $70,000. Our recommendation is to hold off now on pursuit of any other conservation easements until we have a clear understanding for whether the Navy will consider the 90%110% split. As the board noticed today, the two sending sites that were approved are very large properties, so we are being ever mindful of the difficult budget situation we have and are trying to keep numbers down. Commissioner Scharmann had spoken to her about the medical marijuana dispensaries. The board may have noticed in the newspaper that some communities are taking the attitude that they are just going to prohibit them or not do anything. In discussions she's had with the Planning Department and District Attorney's office, she does not believe that that is necessarily the most prudent way to go for our community. We have a well established Special Use Permit (SUP) process and that is probably the process that we will want to use in our community. She will continue those discussions to try to get something on the books for consideration by the Planning Commission and this board.

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 24 There have been several strategic planning team meetings and the budget workshop, which she thought was very successful. She thanked the board for taking the time to participate in that workshop. Upcoming events include the JLUS public workshop to be held on October 9th. That seems to be moving forward quite well. The State Land Use Planning Advisory Council (SLUP AC), of which she is a member, has its quarterly meeting here on October 11th. They will be making a field visit to the Enel Geothermal Solar Plant and the DF A Plant. Unfortunately, they will only be able to stand in the office at the DF A Plant to hear about it, otherwise she would have invited Commissioner Scharmann to come along. In the middle week of October, she will be in the office very little. She will be on a panel discussion at the Western Planner Conference at Lake Tahoe to talk about the Strategic Economies Together process. She seems to be spending much more of her time on economic development but she believes that needs to be a priority of this community. We need to get more jobs here in our community and we need to get our existing businesses back on solid footing and moving forward. She announced that the October 15th Rural Community Roundtable Discussion, which is being held at Truckee Meadows Community College (TMCC), includes some very good speakers. Again, the emphasis is on what we can do in our rural communities to get our economies moving again. Our Cooperative Extension office will be teleconferencing this roundtable discussion at their office, so anybody who would like to attend may do so. She believes it will start at 1 :00 p.m. but can confirm that if someone is interested. Finally, she stated that the county is continuing with our art project, so there is new art down near the employee break room and now there is art in the hallway by the Assessor's office. She asked the board to take a look. CLERK/TREASURER HELTON: Clerk/Treasurer Helton said last week was a big week for her since she hit the half century mark. It was also her 29th anniversary working for Churchill County. COMPTROLLER KAL T: Comptroller Kalt provided a written report and stated that they are working on the audit. They got our CTX for the month of July, which was up. They made the adjustments for T AS Energy and the Department of Taxation is working out the payments with T AS Energy based on our agreement. He thanked the board for participating in the budget workshop yesterday and said he thinks that was time well spent. Top Gun Raceway made an interest only payment on their note and he is working with them to get a proposal for the board's consideration at the October 16th meeting. He will be attending a Governance and Leadership Training Conference with POOL/PACT. He and Civil Deputy District Attorney Shawcroft will also be doing a fraud prevention and detection training for county employees in October. The Committee on Local Government Finance has two workshop hearings on regulations. One is on enterprise funds and transfers to other funds and the other one is on the heart/lung regulations and liabilities associated with that. He will be involved in those activities. CIVIL DEPUTY DISTRICT ATTORNEY SHA WCROFT: Civil Deputy District Attorney Shawcroft had nothing to report. PUBLIC COMMENTS

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 25 Chairman Erquiaga inquired if there were any public comments on issues that were not listed on the Agenda but there were none. CLAIMS AND PAYROLL TRANSMITTALS The claims and payroll transmittals submitted for this meeting were reviewed and approved. ADJOURNMENT There being no further business to come before the board, the meeting was adjourned at 10:14 a.m.

APPROVED: . ,~' ca~):;nn~

APPROVED: 2~ Pete Olsen, Vice-Chair

APPROVED 1l ~~~ sioner

Minutes of the Churchill County Commissioners' Meeting October 3, 2013 Page 26