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February 24, 2020 The regular meeting of the Yerington City Council was held in the Council Chambers at 10:00 a.m. with the following present: Mayor John Garry Council Members Jerry Bryant, Selena Catalano, Shane Martin and Terceira Schunke City Manager Robert Switzer City Attorney Chuck Zumpft Chief of Police Darren Wagner Public Works Director Jay Flakus Administrative Director/Interim City Clerk Sheema D. Shaw Guests: Chief Scott Draper of the Mason Valley Fire District, Colleen Straub, Ed Matheas, B. Douglas, Fred & Kathy Hall, Kevin Eungham, Jerry Schmiedeberg, David Warr, Deb & Dave DeGrendele, Matt Van Dyne & Matt Schultz of Farr West Engineering, Robert McMinn, Robin Biggs and Larry Grant Public Participation Mayor Garry asked for public comments. There were no comments. Agenda Approval City Manager Switzer stated that we need to remove A & B from Item 5 of the agenda as those businesses have paid all fees and are now in good standing. Councilwoman Catalano made a motion to approve the agenda as amended, seconded by Councilwoman Schunke. Mayor Garry asked for public comments, there were no comments and the motion carried unanimously. Minutes Councilman Bryant made a motion to approve the minutes of February 10, 2020, seconded by Councilwoman Catalano. Mayor Garry asked for public comments, there were no comments and carried unanimously. Revoke Business Licenses Due to Non-Payment for 4th Qtr. October – December 2019. City Manager Switzer stated that item C has not paid the quarterly fees and recommended revoking the license. A. Stephen Jones dba YESCO, LLC, Sign Fabrication, 5350 Capital Ct. #104 Reno, NV 89502 B. Donald & Chaz Hunter dba Hunter’s Guns Ammo & Sporting Goods, LLC, Sporting Goods Retail, 213 W. Goldfield Ave. Yerington, NV 89447 ---PAGE BREAK--- C. Ray Badua dba Source Refrigeration & HVAC, Inc., Refrigeration and HVAC, 145 S. State College Blvd. Suite 200 Brea, CA 92821 Councilwoman Schunke made a motion to revoke the business license for item C as presented, seconded by Councilman Martin . Mayor Garry asked for public comment, there were no public comments and the motion passed unanimously. Presentation by Farr West Engineering on the USDA Water/Sewer Capital Project City Manager Switzer stated that Mr. Matt Van Dyne and Mr. Matt Schultz of Farr West Engineering were here today to give an update on the Water and Sewer Project. City Manager Switzer stated that we are running behind schedule and this is a good opportunity to hear from the engineers on the current progress. Mr. Matt Van Dyne of Farr West Engineering addressed the council. Mr. Van Dyne stated that Mr. Matt Schultz is the lead project engineer and manager of this project. In 2015, we began a project in town cleaning and videoing the existing sewer collection system. Mr. Van Dyne stated at that time they were looking to do 100,000 linear feet of cleaning; however, once the contractor was on board, they were only able to achieve about 65,000 feet due to obstructions, broke and collapsed pipes; gas lines that had punched through the sewer lines and the bottom of pipes were gone. We put all this information into the 2016 updated the PER and found criticalities to the sewer to give more justification to the USDA and federal funding sources showing a health and safety risk. Mr. Van Dyne stated that we then submitted a request to the USDA for funding. Mr. Van Dyne stated that Federal funding is based on quarterly interest rates. We were able to secure a poverty interest rate. We did get our request in and the total package for water was just over $19- million, with the sewer package just over $17-million. Both were approved. The interest rate that we were able to secure was 1.375. Mr. Van Dyne stated that is the lowest interest rate they have ever seen on a public utility project. Mr. Van Dyne stated that there is a contribution that the city must make to the project. For water, that contribution is about $1.8-millon, with zero dollars in grant funds. For sewer the city contribution is about $950,000 with about $741,000 dollars in grant funds. Mr. Van Dyne stated that at that time we had to look at rate increases. Funding agencies look at existing rates in a community before they will approve giving you money. Mr. Van Dyne stated that we couldn’t have low rates and not be responsible and good stewards of our community utilities and stay flat line. The funding agencies want you to have a little buy in and the rates to come up, so that you can help yourselves and help share that burden. Mr. Van Dyne stated that in April 2017, the final contracts were approved and the funding has been set aside for the city’s use. We have a five-year time frame to use those funds, we are three years into that period, and we need to show that we are moving forward. We can, if needed, request an extension. Once we close on the contractor, the funding will be secured ---PAGE BREAK--- Mr. Van Dyne stated that in 2017 they began with topographic survey of the City. In the fall of 2017 through the spring of 2018, Farr West Engineering did not design any new water or sewer; they were solely working on the existing facilities. They were speaking with the former Chief of Utilities Mr. David Warr and leaning on his knowledge of the system. Mr. Van Dyne stated that they were scanning items from the public works office and gathering as much information on the current infrastructure as possible. Mr. Van Dyne stated that in spring 2018 through fall of 2019 they were working on the detailed design of the new water and sewer utilities. In the fall of 2019 to current, we have been working on permitting and getting easements coordinated through the City. We do not have all of the easements quite yet; however, we are getting close. Mr. Van Dyne stated that for the design specifics: Water System 100,000 linear feet of water main 1000+ metered connections 185 fire hydrants(new) Relocate water mains from backyards (property owners will be notified) Mr. Van Dyne stated that with regards to the fire hydrants, the flow will be much better and meet or exceed the fire code conditions. This will improve the safety to the entire community. Sewer System 82,000 linear feet of sewer main 1,200+ lateral connections 293 Sanitary sewer manholes Relocate sewer mains from backyards Mr. Van Dyne stated that the reason the laterals are different from the water is that some properties have multiple connections. Mr. Van Dyne stated that they are looking at the community as a whole. Finding the existing utilities took eight months. We would receive new information 5 months into the plan and have to go back and change the design based on the new information or our design would be incorrect. Once we get in the field, if we start to dig and find we are running into other utilities, we will need to stop and change our design; that is a change order, which can be additional cost. Mr. Van Dyne stated that concerning the sewer lift stations they discovered that the airport lift station rehabilitation is a critical collection facility, everything flows to it. If it is not pumping correctly, we have problems. With the design changes and extra care we are giving to the airport lift station, we will be able to remove the Pearl Street station and create a new one on Bell Street. ---PAGE BREAK--- Mr. Van Dyne stated that we are rolling the Yerington Paiute Tribe project into the same time frame as the city to save money. South Lyon Medical Center has a project that hinges on our project. This will be a bid alternate and the city will reimbursed by the hospital for the cost. Mr. Van Dyne stated that Lyon County would like to introduce high-speed fiber during the project. Mr. Van Dyne stated that the city has held off on doing road-sealing projects until this project begins, so that we will not come in behind them and tear up what they put down. Mr. Van Dyne stated that in 2016 when we received the funding package, it was not 100% of the project; however, it was such a significant amount of money we moved forward. It averages out to about 85% of the project. There has been an inflation in the cost of construction 2017 through 2019. We are seeing the prices calm down, but they are still high. Mr. Van Dyne stated that we must create a base bid for USDA. Which tells the contractor what are funding requirements are. We will take care of the most critical areas first and have bid alternates for the other portions. If we do not get a contractor in that base bid, we will need to go to bid again as USDA will not accept it. Mr. Van Dyne stated that the anticipated project at this time is to get all of the things that we are prioritizing and getting the most critical facilities first, we are looking at 2/3 of the total design of the water system, 66,000 linear feet and about 1/2 of the sewer design 41,000 linear feet. Again the base bid will prioritize the areas of highest concern and risk to the system and the bid alternates will prioritize the remaining areas. Mr. Van Dyne stated that what we can do is get the bids open. We need to see those numbers first. We are also evaluating some engineering focuses. We are reviewing meter pits and meter sizes. Some of those have been installed in a manner that we would not do today. Some have a two inch line that they do not need and increase the need from them system. Where can we make adjustments and improvements. Mr. Van Dyne stated that we need to work further with the USDA, there are no guarantees; however, this project will take some time and federal fiscal years will pass. The USDA will be receiving more money coming to them at the state level. Every year they have money allocated to them, if they do not use it all, they have to give it back. Typically, the USDA will start inquiring if there are projects that need funding because they want to keep that money in the state. We could have a chance at that funding. Would it be a loan or grant funding, we are not sure. Mr. Van Dyne stated that as far as the current schedule. We are working on the easements and hoping to go to bid the summer of 2020, with construction to start late summer/ early fall of 2020. The schedule is pending the completion of the easements. Mr. Van Dyne stated that we are looking at an 18-month project. ---PAGE BREAK--- Mr. Van Dyne concluded by stating that it is unfortunate that we cannot get as much project done as we would like. We should all keep in mind that we have received more funding than anyone else in the State of Nevada. If we stop moving forward now, the USDA will take the money back. We should stay positive and keep moving forward. The design is complete and we have that on record. We can make more improvements as funding becomes available. Mayor Garry thanked Mr. Van Dyne for his presentation and asked for public comments. Mr. Fred Hall asked if this would be a phased project. Mr. Van Dyne stated that this is a single project. Mr. Hall asked who would do the inspections. Mr. Van Dyne stated that Farr West Engineering would have two inspectors on site at any given time. Mr. Hall asked how long the roads would be gravel and what would they use to fix it. Mr. Van Dyne stated that as an area is completed it is the intension to come in and fix the roads where they were disturbed. The material must equal to what was there or better. The City will be using their RTC funds for the roads. Mr. Hall asked how Farr West could sign off on the work. Mr. Van Dyne stated that State Law requires the engineer to sign off on the work per the design plan. Mr. Creedon stated that in 2015 the city did a video and some of the sewer lines have no bottom has anything been done about that. Mr. Van Dyne stated that was the reason for the video to find the problems. This project will help address many of those issues. Mr. Creedon stated that faster might be better. Mr. Van Dyne stated that the video showed areas in the line where the line is failing or collapsing. The sewer collection areas are not near the wells. Mr. Van Dyne stated that projects of this size could take multiple years. Mr. Hall asked if a line collapses on your property whose responsibility is it. Public Works Director Flakus stated that per the city code it is the owner’s responsibility from the property to the main. Mr. Van Dyne stated that every community has different codes. The bill you pay every month, pays into the communal system; the operators, administration, water tanks and collection systems. Mr. Bob McMinn asked if there was any thought on how much connection fees will be after the improvements. Mr. Van Dyne stated that connection fees are not considered part of this project. Public Works Director Flakus stated that is not a subject has come up in any discussion. Mayor Garry asked for further comments, there were no comments and no action was taken. Update on the Sewer Treatment Lagoon ---PAGE BREAK--- City Manager Switzer stated that we issued a press release to update the community on the sewer treatment lagoon. The council has addressed the issue by closing the RV dump. City Manager Switzer stated that we have found another RV dump and are investigating if it goes into a septic system or the sewer lagoon. City Manager Switzer stated that the system went into toxic shock with all of the “good bugs” gone. Tomorrow we will receive a regiment of chemicals that will bring the “bugs” back into the system. City Manager Switzer stated that we have been using temporary measures to help with the odor. Councilman Bryant stated that there is public concern with the odor. Public Works Director Flakus stated that we cannot control the influent; we can only inform the public of what cannot be dumped into the system. We will try to provide information to the commercial businesses to make them aware. City Manager Switzer stated that the problem is not how we are operating the system; we are backed by the city engineers. Mr. Rick Ortega asked if we could track the issue back to its origins. City Manager Switzer stated that we have tested some of the manholes and that might be part of the solution, we might need to test each manhole. Ms. Robin Biggs asked if there was any health concerns with the air. City Manager Switzer stated that NDEP is involved in the discussions at this time. We do have several options to deal with this issue; one is to cover the lagoon. Jerry Schmiedeberg asked how the ponds are aerated. City Manager Switzer stated that oxygen is introduced into the system. Mr. Schmiedeberg asked how often the system is running and is it being monitored. City Manager Switzer stated that it is checked every day. We conduct three tests to see check the oxygen levels in the system. Mayor Garry asked for further comments, there were no further comments and no action was taken. Financial Statement (FS-10) for Fiscal Year 2019-20 City Manager Switzer stated that he will be bringing the Financial Statement to the Council once a month to keep the council up to date on the city finances. City Manager Switzer stated that page 4 of the statement is a good page to see the health of our fund. This page shows you the fund balance in the general fund, these figures change daily as expenditures and deposits are made. City Manager Switzer reviewed the report with council and stated that we are doing ok in the general fund at this time. We should see the overtime for police officers go down as we hire the vacant positions. ---PAGE BREAK--- City Manager Switzer stated that concerning the water and sewer funds; the water fund is a little lower than he is comfortable with and the sewer fund is in a healthy position. Mayor Garry asked for public comments, there were no comments and no action was taken. Review Bills Previously Submitted for Payment Bills, Salaries and Vouchers: Accounts Payable Checks 2-4-2020 32014 through 32038 2-5-2020 32039 2-11-2020 32044 2-12-2020 32045 through 32070 Payroll Vouchers 2-11-2020 2132001 through 2132020 Payroll Checks 2-11-2020 32040 through 32042 Transmittal Vouchers 2-11-2020 2112001 Transmittal Checks 2-11-2020 32043 Councilwoman Schunke made a motion to approve the bills as submitted, seconded by Councilman Martin. Mayor Garry asked for public comments, there were no comments and the motion carried unanimously. Public Participation Mr. Dave DeGrendele stated that he moved to Yerington 17 years ago. He chose Yerington for the small town feel. Mr. DeGrendele stated that there comes a time when you cannot kick the can down the road with the problems. Mr. DeGrendele stated that he can appreciate the position that Public Works Director Flakus is in. Mr. DeGrendele stated that the council is doing everything that it can with what they have. Mr. Rick Ortega stated that he discovered Yerington a few years ago when he was flying over the community. We have a nice runway and there is some concern about the proposed drag races at the airport. Mr. Ortega stated that the FAA gave the city a lot of money for that runway. Mr. David Ray stated that Lyon County had a meeting last week where growth was discussed. Department Reports Chief Wagner reported that he has hired a new officer and he is currently in field training. Chief Wagner stated that he has started speaking with another possible candidate. ---PAGE BREAK--- Public Works Director Flakus reportd that we have $12,000 of chemicals coming tomorrow, when the system is not being poisoned, they operate on their own. City Manager Switzer reported that Yerington is one of five communities that has received a grant for a Master Plan study of the airport. We cannot do any further improvements until it is complete. City Manager Switzer reported that he is working with members of the community on a lighted pedestrian crossing at Pearl and Main Street. There will be no expense to the City. City Manager Switzer reported that we met with the Division of Lands at the Armory. Plans are moving ahead and it will be middle to late May before the property is conveyed to the City. Mayor Garry stated that he was happy to have so many people here today. It is important to have members of the public here so that their voices can be heard. There being no further business the meeting was adjourned. Mayor of the City of Yerington ATTEST: Administrative Director/Interim City Clerk