Public meetings / Board of County Commissioners

August 18, 2020

163 turns, 163 with a named speaker, under 11 agenda items. The words and the names are the county clerk's.

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3. Ex Parte Communications and Conflict of Interest Disclosure Statements.

Commissioner Strickland

stated she was a sitting Nye County Commissioner as well as the owner of Strickland Construction, T&M Group Realty and Lakeside Storage. They brokered in water rights, well drilling, contractor, well and septic tank contracting. They also built steel buildings. She saw no conflicts, but if something came up she would disclose again.

4. Presentation by the Director of Emergency Management regarding the status

Commissioner Cox

asked if the people passed directly because of COVID or if there were other issues and they contracted the virus. Chief Lewis explained COVID was listed as an associated reason or as a direct contributing factor.

Commissioner Blundo

asked if there were any cases of staph infections from wearing the mask. He would also like to see the pre-existing conditions on the report. Chief Lewis said he was not aware of any staph infections. He did not feel pie-existing conditions would be appropriate for a report purpose, but he would try to capture the essence of it.

Commissioner Koenig

said the COVID team had been frustrated in efforts to reopen parts of the County. Three weeks ago the Governor alluded to instead of closing a whole County he might do it by zip code, which would mean Gabbs would be treated differently than Pahrump. Commissioner Koenig said the County’s plan was presented last week at a meeting with the Governor’s team and they would get back to the County next Thursday. Commissioner Koenig said the Board could not just open things because the Governor would shut it down and OSHA would issue penalties.

Commissioner Cox

said she wanted a legal opinion on the law that said the Governor was not supposed to take over the County as long as the Board stayed in control of it since the Board was the law in Nye County.

5. Commissioners’IManager’s Comments (This item limited to announcements or

Commissioner Blundo

said he got the same e-mail from VEA and found it very concerning. He invited VEA to look at other options to secure and strengthen the electrical network. He told Tim Sutton he would like to draft a thank you letter to Officer Branske from NHP, who did patrols in District IV. He also wanted to draft letters to both the Sheriffs’ unions stating his support and thanking them for doing what they were doing during these times. Commissioner Blundo then expressed his frustration with the Governor’s office during the COVID crisis and the inability to communicate with him.

Commissioner Wichman

talked about the rail plan for Nevada, which could be a huge opportunity for Nye, but their planners needed to have input from the County planners. August 18, 2020 5. Commissioners’IManager’s Comments (This item limited to announcements or topiclissues proposed for future workshopslagendas)-Cont’ d. She advised her term on the State Land Use Planning Advisory Council (SLUPAC) expired in 2021. Since the nominations for a representative did not need to be a member of the Board, if the Board was so inclined before December she would seek the Board’s nomination to be re-appointed as the County’s representative to continue the work. Commissioner Wichman then advised Ken Ivory, a former Utah legislator, provided her with legislation relate to the PILT shortfalls. She needed an agenda item on an upcoming agenda as soon as possible so she could present some information and have an open discussion. She explained Utah found a way to assess each acre of land within their counties using satellite and they were sending the federal government a tax bill. Commissioner Wichman said she would like to follow suit.

Commissioner Koenig

acknowledged the presence of Commissioner-Elects Dick Gardner and Frank Carbone. He asked if the $8 million in CARES had been received yet. Grants Administrator Samantha Kramer advised the 50% allocated to the County was received on Friday.

Commissioner Koenig

said the quarterly meeting with the Treasurer and CLGF last week was cordial, but the County was still on fiscal watch. His guess was it would be December or January before they would release the County. Samantha Tackett said there was an issue with the Web site. It looked like people who were subscribed to receive the Commission agendas were unsubscribed due to a glitch. She encouraged everyone to make sure their subscription was still there and re subscribe if it was not. Treasurer John Prudhont announced 60,000 property tax bills went out. There were a lot of phone calls as well as walk-in traffic and he asked the public to be patient with his office.

7. GENERAL PUBLIC COMMENT (Three-minute time limit per person.) Action will

Commissioner Koenig

said ballots could be dropped off at the Clerk’s Office. Reverend Darrell James Lackey said he invented a way to eliminate homelessness by inviting people to build their own homes and develop skills at the same time. Ammie Nelson talked about the cloud seeding program which was discussed at the Nye County Central Republican Committee and said there was tremendous support for that program. She advised Jim Marchant and Gregory Hafen would have a meet and greet this afternoon at 2:00 p.m. Ms. Nelson then expressed concern about how long it would take to count the ballots and felt it could take months. As to disclosures, she felt every Commissioner should do a disclosure, but not make it an ad for a personal business. Melissa Blundo read a statement about the Evangelicals for Trump event which Governor Sisolak expressed his dismay at being held. Her response to him touched on his continued inconsistencies and non-sensical directives, the economic impact of his actions, and how he had failed to protect her rights. Vernon Van Winkle from KPVM said the station in Las Vegas was doing well with 2.75 million people watching the meeting right now. He then talked about a new network called America’s Voice News Network, which he encouraged people to watch on channel 25.3. Dave Stevens said he got a $520.00 ticket for trespassing on the highway. He went to pay it and was told he had to get something from the Sheriff’s Department. He did not understand why he was ticketed as he always thought it was a public road.

9. For Possible Action Discussion and deliberation regarding meeting minutes

Commissioner Strickland

made a motion to accept the minutes as written; seconded by

Commissioner Blundo

; 5 yeas. TIMED ITEMS

10. 10:00 a.m. For Possible Action 2nd Community Development Block Grant

Commissioner Strickland

asked if any of the $8.4 million could be used for that project or another source of funding as she did not think it should wait for CDBG. Chris Mulkerns from the Town of Tonopah presented their Union Plaza and convention center parking lots project for a cost of $350,000.00. The Union Plaza parking lot was within the Tonopah Main Street District and served multiple purposes. The convention center parking lot served as public parking for all private and public events held at the convention center, which also served as the community center for the town. Mrs. Mulkerns explained it would be a two-phase project for both areas and both areas were in a designated slum and blight area.

Dr. Russell

Pillers presented the Nye Regional Medical Center demolition project for an overall cost in the range of $700000.00, which included removal of hazardous material. He explained the Northern Nye County Hospital District (NNCHD) just received a preliminary architectural review, which determined the most economical path forward in August 18, 2020 10. 10:00 a.m. For Possible Action 2nd Community Development Block Grant — — (CDBG) Public Meeting: 1) Presentation of potential projects; and 2) Invite the public to participate by providing ideas, comments and suggestions concerning the proposed projects-Cont’d. implementing a new healthcare facility in northern Nye was to demolish the old facility and build new rather than remodeling the old facility and bringing it up to code.

Ms. Kramer

then presented the projects the County wanted to do. One was the sewer/wastewater system on the fairgrounds, which would allow the County to move forward on the development, with an estimated cost of $500,000.00. Another project was the fairgrounds field lighting which would allow the County to continue with development with an estimated cost for all eight fields of $3,460,600.00, which would need to be phased out resulting in $865,150.00 for two fields.

Commissioner Blundo

talked about the positive economic impact to the County of having the fields lit and suggested reaching out to NCREDA. Richard Goldstein felt the fairgrounds development was too important to keep putting off. Ammie Nelson mentioned cloud seeding and how rain would lower the temperatures and bring water to the basin. She thought CDBG could fund a cloud seeding program which would cost between $26,000.00 and $42,000.00. Harley Kulkin said his vision was to see the fairgrounds developed in a manner that brought jobs and commerce to the community and he was glad to see the Board moving forward with it. He suggested contacting the former town manager for information to make sure things were not paid for that were already done.

11. 10:15 am. For Possible Action Discussion and deliberation regarding the

Commissioner Blundo

assumed the Chair of the Board of Highway Commissioners. August 18, 2020

12. For Possible Action Discussion and deliberation regarding General Road

Commissioner Cox

said the light at Dandelion and Unicorn was still coming on and going off when it felt like it, and it was dark most of the time at night. There was also a light out at Gamebird and Highway 160, which was not visible even when it was on.

Commissioner Blundo

asked for a status on Cabo and Quail Run as Mr. DahI had said publicly it would be done by the end of summer.

Mr. DahI

said it was on the RTC chip seal list which was on the agenda today.

Commissioner Blundo

said he had concerns with Blagg Road. After the cold mix overlay was done there was a yellow double lane which he thought might be illegal. He would follow up on that with a separate item but wanted to put it on Mr. DahI’s radar. Ammie Nelson complimented Mr. DahI on the work he did. More had been done in Pahrump since he had been in that position than before. SITTING AS THE BOARD OF COUNTY COMMISSIONERS PUBLIC WORKS

42. For Possible Action Discussion, deliberation, and direction to staff to

Commissioner Koenig

asked why Linda was not on the list again. Tim DahI explained because this item was continued from a previous meeting. The back-up for today’s meeting was due on August 7, 2020, but there was no RTC meeting until August 13, 2020. He asked the Board to accept additional back-up with an updated list from the results of the RTC meeting. August 18, 2020 42. For Possible Action Discussion, deliberation, and direction to staff to consider the roads that are scheduled for chip seal repair or overlay as approved by the Regional Transportation Commission (RTC), and to initiate a bid package for the repair and overlay project-Cont’d.

Commissioner Blundo

made a motion to accept additional back-up; seconded by

Commissioner Strickland

; 5 yeas. This item was tabled until later in the meeting to allow distribution of the additional back up to all locations. SITTING AS THE GOVERNING BODY OF UNINCORPORATED TOWN OF PAHRUMP 16. For Possible Action Discussion and deliberation of activity reports provided by Town of Pahrump Committees: Pahrump Arena Advisory Committee, Nuclear Waste and Environmental Advisory Committee, Pahrump Parks and Recreation Advisory Committee, Pahrump Public Lands Advisory Committee, Pahrump Tourism Advisory Committee, or Pahrump Veterans Memorial Advisory Committee, and direction from the Board regarding the activity reports. John Pawlak, chair of the Nuclear Waste and Environmental Advisory Board, said since he submitted the letter in the back-up their first meeting was moved out to December 4, 2020, instead of September 4, 2020, for safety reasons. Robert Adams from the Pahrump Public Lands Advisory Committee discussed the Pahrump south side multi-use trail head. They had re-prepared last year’s RDP application and hoped to resubmit that on August 24, 2020. They were working with NDOW on the west side guzzlers. They were also working with the Nye County Natural Resources Department and BLM to establish permanent off-road routes between Carpenter Canyon Road and South Wheeler Pass Road to replace the routes that would be closed by the Spring Mountain Motorsports expansion. Lastly, Mr. Adams advised they were working with several agencies on mapping and meeting the requirements, obtaining permits and grant funding for the Beatty portion of the Pahrump to Tonopah off-road trail. PUBLIC WORKS 42. For Possible Action Discussion, deliberation, and direction to staff to consider the roads that are scheduled for chip seal repair or overlay as approved by the Regional Transportation Commission (RTC), and to initiate a bid package for the repair and overlay project.-Reopened.

Commissioner Koenig

pointed out Linda was on the list subject to right-of-way acquisition. August 18, 2020 42. For Possible Action Discussion, deliberation, and direction to staff to consider the roads that are scheduled for chip seal repair or overlay as approved by the Regional Transportation Commission (RTC)I and to initiate a bid package for the repair and overlay project.-Reopened-Cont’d. Tim DahI advised he was drafting letters to the property owners to acquire those rights- of-way and was preparing an SF299 application to submit to BLM for a right-of-way on the west side.

Commissioner Blundo

made a motion to direct staff to consider the roads scheduled for chip seal repair overlay as approved by the RTC, initiate a bid package for repair and overlay, and fund from 10208; seconded by Commissioner Strickland.

Commissioner Cox

said she had an issue with asking staff to consider them.

Commissioner Blundo

withdrew his motion; Commissioner Strickland withdrew her second.

Commissioner Blundo

made a motion to direct staff to put this chip seal repair package together as approved by the RTC and initiate a bid package for repair and overlay; seconded by Commissioner Strickland. Harley Kulkin said Linda was added to the list, but he was not quite sure what the status of that meant as he heard some talk about easements. Since Linda had been there well over 60 years he found that ludicrous and did not think anyone would get upset now that it was being chip sealed. He also did not understand the vote on his street.

Commissioner Koenig

advised it was not on the list because the District Attorney’s opinion was the road had to be dedicated. Ammie Nelson noted some of the roads were close to her road, which was in disrepair, and she wondered how long it would be to get the other jobs done so hers could be added.

Mr. DahI

thought it was the RTC’s and the Commission’s plan that a chip seal program would be done annually so future chip seal lists would be compiled.

Commissioner Strickland

assumed the Chair of the Licensing and Liquor Board. August 18, 2020 LIQUOR 13. 10:00 a.m. For Possible Action Hearing to Show Cause, discussion and — — deliberation to: 1) Consider reinstatement or revocation of the Conditional Retail Liquor License that is suspended due to noncompletion of application requirements for JEH, LLC., Nevada Wine Cellars, Inc. dba, Pahrump Valley Winery; or 2) Allow additional time for applicant to become compliant.

Commissioner Strickland

opened the show cause hearing. Samantha Tackett, Licensing Department Administrator, advised notice of the show cause hearing was approved by the Chairman and served by the Sheriff’s Office to the applicant on August 7, 2020.

Commissioner Blundo

disclosed he held a Nye County privilege liquor license as well as a Town of Pahrump business license, which would not impact his judgment or ability to participate in this item. Undersheriff Michael Eisenloffel provided the history of the applicant’s license. Nye County Code 5.04.070.4 required an application for a liquor license include the name, address and telephone number of the individual who would actively manage the business. By all accounts Kathy Trout managed the business, however, she also appeared to be part owner based on numerous representations she had made so the role was not clear at this point. She should be listed on the application as the individual who would actively manage the business, but she was not listed that way and the application remained incomplete and not in compliance. Additionally, Nye County Code 5.04.100.A.2. stated the Sheriff shall investigate the moral character of the person or persons applying for the liquor license and the managers of the proposed business. Undersheriff Eisenloffel advised this investigation had discovered several instances of misconduct, non-compliance, and probable cause of violations of law and County ordinances. Evidence and numerous interviews with people with firsthand knowledge had doubtlessly demonstrated Ms. Trout and John Hobbs did not meet the reasonable standard for good moral character. Further, Nye County Code 5.04.100.B.2. stated the Sheriff shall require the applicant or applicants to answer any and all questions deemed appropriate and necessary to the Sheriff or the Board pertaining to such applications or the fitness of any persons connected as owners, part owners, officers, managers or assistants of any establishment applying for a liquor license. The Sheriff’s Office had required the applicant on numerous occasions to submit appropriate necessary and reasonable answers to follow up questions and missing and incomplete information. The result had been a general lack of cooperation and transparency, numerous amendments, and conflicting information provided by both Mr. Hobbs and Ms. Trout. Nye County Code 5.0.100.B.3. stated the Sheriff shall require the applicant to furnish a current financial statement and full financial disclosure. This investigation had shown the applicant has been less than forthcoming with that full disclosure and had not complied with County Code. Undersheriff Eisenloffel then advised that during August 18, 2020 13. 10:00 a.m. For Possible Action Hearing to Show Cause, discussion and — — deliberation to: 1) Consider reinstatement or revocation of the Conditional Retail Liquor License that is suspended due to noncompletion of application requirements for JEH, LLC., Nevada Wine Cellars, Inc. dba, Pahrump Valley Winery; or 2) Allow additional time for applicant to become compliant-Cont’d. the course of this investigation they had determined the necessity to issue a subpoena to the former owner of the Winery, Bill Loken, who was present, and there were several individuals in the audience who would like to provide public comment during the hearing.

Commissioner Strickland

asked if the applicant had provided a complete application, to which Undersheriff Eisenloffel responded no. He explained partially updated and/or amended and/or corrected applications had been submitted and resubmitted with information provided with one submission but repealed from another one along with the discrepancies contained in his investigative report leaving many questions. Kathy Trout and her attorney, John Wright, were present. In response to the letter from July, Mr. Wright stated he supplied every document requested and he had not heard anything subsequent to that stating there was anything at this point that had not been produced. He discussed the items requested in the subpoena, which were documents concerning the purchase and sale and documents concerning the source of the funds. As far as he could tell the application never called for any of those documents specifically and he had never seen any communication where those documents were requested, so Mr. Wright felt there was a difference of opinion on what was still outstanding. He advised he wanted to start from scratch as he had not been involved in it from the beginning. He also did not believe the prior owner would be privy to all the documentation in the subpoena so Mr. Wright brought everything with him. With respect to Ms. Trout and her involvement, he had not seen anything expressed anywhere before that was an issue, but there was no problem with providing any information requested. Chris Arabia said his office would need time to review the documents to see if they could be accepted. The Board was in recess while the District Attorney’s Office reviewed the offered documentation.

Mr. Arabia

advised there were discussions during the break, but he did not have time to review the documents closely. He said it was up the Board’s discretion to let them in keeping in mind confidentiality issues and redaction which could not be done on the spur of the moment.

Mr. Wright

explained the documents addressed the questions concerning the stock purchase agreement or the transaction itself and the source of funds. To his understanding the application was complete, but the question then became since Mr. August 18, 2020 13. 10:00 a.m. For Possible Action Hearing to Show Cause, discussion and — — deliberation to: 1) Consider reinstatement or revocation of the Conditional Retail Liquor License that is suspended due to noncompletion of application requirements for JEH, LLC., Nevada Wine Cellars, Inc. dba, Pahrump Valley Winery; or 2) Allow additional time for applicant to become compliarit-Cont’d. Hobbs was not showing a whole lot of money on the books how he was able to purchase it. Mr. Wright said he could show how through the source of funds documents, which were a promissory note, a security agreement, a UCC-1 filing, and ancillary agreements concerning that. He said that explained how the money was raised to do this and it was not shown on Mr. Hobbs’ income as it was borrowed.

Commissioner Wichman

did not believe the documents would change a thing with what the Board was looking at as the person who had to review those was the Sheriff and her staff, not the Board.

Commissioner Strickland

commented this process was at the point where the applicant was to show why they could not provide a completed application.

Commissioner Koenig

said even if he took them he personally still would not know if there was a complete application as the Undersheriff and the financial person were the ones to say that.

Commissioner Strickland

asked who owned the Winery.

Mr. Wright

explained the stock of Nevada Wine Cellars, Inc., was held by Quicker Liquor, LLC. The operating agreement of Quicker Liquor, LLC, indicated the sole member was JEH NV, Inc., a Wyoming corporation registered as a modified name in Nevada as JEH was already in use. The shareholders of that corporation were Mr. Hobbs and Mr. Hobbs’ 401 K plan.

Commissioner Strickland

pointed out the corporation was an asset to him and that was where the cusp was. A person, not a corporation, had to declare the assets and liabilities held. The problem was none of that was declared to the County and that was what the show cause hearing was for. She asked who signed the note.

Mr. Wright

said Quicker Liquor.

Commissioner Cox

asked who Quicker Liquor was.

Mr. Wright

said the sole member of Quicker Liquor was JEH NV, LLC, an S-corporation where Mr. Hobbs was a shareholder as well as his 401 K plan. They were separate entities and it could not be put on a personal balance sheet if it was a corporate debt. V August 18, 2020 13. 10:00 a.m. For Possible Action Hearing to Show Cause, discussion and — — deliberation to: 1) Consider reinstatement or revocation of the Conditional Retail Liquor License that is suspended due to noncompletion of application requirements for JEH, LLC., Nevada Wine Cellars, Inc. dba, Pahrump Valley Winery; or 2) Allow additional time for applicant to become compliant-Cont’d.

Commissioner Strickland

pointed out that Mr. Hobbs owned the corporation and he never stated anywhere that corporate asset existed. It said $8 million, but there was nothing that said where it came from.

Ms. Trout

explained this license was only to serve liquor in Symphony’s Restaurant. They had a State of Nevada winemaking license which also gave them capability to make the wine, sell the wine, and do the tasting room. She thought there was a lot of misconception about what the liquor license was for.

Mr. Wright

noted the application did not ask for assets and liabilities. The question was about the amount invested which was why he put $8 million.

Commissioner Cox

said her understanding at the August 4, 2020, meeting was certain things had to be submitted and that everything had been submitted. She was confused because if everything was submitted then it should have been good to go. She asked if the issue now was something that was submitted brought up more questions and if someone felt something was being hidden or going on under the table.

Sheriff Wehrly

said they kept submitting copies of the same things over and over and never submitted what was asked for.

Mr. Arabia

asked the Sheriff when someone filled out an application and submitted it if she was able to ask for additional or clarifying information, to which Sheriff Wehrly responded yes.

Mr. Arabia

asked if something not in the application would be appropriate for her to need, to which Sheriff Wehrly responded yes and that was outlined in the ordinance.

Mr. Wright

noted at the June 18, 2019, meeting Ms. Tackett stated on the record that Wine Cellars had turned in a completed application.

Commissioner Strickland

advised Ms. Tackett did not have time to review the application to know if it was completed.

Mr. Wright

said there was an e-mail on November 25, 201 9, stating the additional documents had been turned in and nothing further. He was responding to the letter of July 9, 2020, which had five items and he was positive he produced those items. Mr. Wright asked how it could be that there was still something else as it was a moving target. August 18, 2020 13. 10:00 am. For Possible Action Hearing to Show Cause, discussion and — — deliberation to: 1) Consider reinstatement or revocation of the Conditional Retail Liquor License that is suspended due to noncompletion of application requirements for JEH, LLC., Nevada Wine Cellars, Inc. dba, Pahrump Valley Winery; or 2) Allow additional time for applicant to become compliant-Cont’d.

Commissioner Ccx

asked what the Sheriff was requesting now. Undersheriff Eisenloffel said as of this date no bank statements had been supplied that showed any activity whatsoever for businesses Mr. Hobbs owned or was involved in.

Mr. Wright

pointed out the request on July 9, 2020, was for six months of bank statements of all bank accounts personally held by Mr. Hobbs. He said there was a distinction between a person and a corporation if they wanted that aspect, but Mr. Wright provided exactly what was requested.

Commissioner Blundo

asked out of the accounts previously submitted which one would

Mr. Hobbs

use for a pack of gum, a cup of coffee, or to put gas in his vehicle.

Ms. Trout

said Mr. Hobbs worked on cash and did not owe anyone any money except for the corporate debt to acquire the Winery.

Commissioner Blundo

asked which account Mr. Hobbs would purchase a new stove out of to replace one at the Winery, to which Ms. Trout responded a business account. Tressie Colehour from the Sheriff’s Office reviewed the information missing on the statement of assets and liabilities as well as discrepancies in the different applications submitted.

Ms. Trout

said the first request was before the acquisition, the second request was after the acquisition, and the third request was for personal information. She felt this was just a moving target as the documents being asked for kept changing. In response to questions from Mr. Wright, Ms. Trout stated she had not been asked for the corporate bank accounts of any entities discussed today. She had provided all documentation requested in the July 9, 2020, letter from the Licensing Department, including corporate tax returns that would show the assets and liability. She had never been asked for a balance sheet for any of the corporate entities discussed today. As to who ran the operation, Ms. Trout advised three people worked there on a regular day to day basis, Vanessa Ruiz, Liz Jacobson and another individual. Mr. Hobbs was ultimately responsible for the management of the facility and he took an active part in that. She explained Mr. Hobbs was not here today as they were told on Thursday they did not have to appear so he left to take care of the houses. When she found out yesterday he needed to be here it was too long to drive and they could not get a flight in time. August 18, 2020 13. 10:00 am. For Possible Action Hearing to Show Cause, discussion and — — deliberation to: 1) Consider reinstatement or revocation of the Conditional Retail Liquor License that is suspended due to noncompletion of application requirements for JEH, LLC., Nevada Wine Cellars, Inc. dba, Pahrump Valley Winery; or 2) Allow additional time for applicant to become compliant-Cont’d.

Mr. Wright

advised because of the confusion he had requested to withdraw the application and re-submit it as he felt it would be easier that way.

Mr. Arabia

cautioned the discussion was going off the agenda. There were only three things the Board could consider at this time revoke, reinstate or more time.

Commissioner Blundo

asked Ms. Trout if she was a business partner to Mr. Hobbs and if all documents were turned into the County on July 7, 2020, at 5:00 p.m. as requested by the motion made.

Ms. Trout

explained she was an officer of the corporations in terms of being a business partner with him in different entities, but he was the sole owner of Nevada Wine Cellars and she took care of paperwork for him. As to the documents, she said all of the documents that were asked for were delivered. However, in the conversation she was asked for another list of documents and Mr. Wright responded to that.

Sheriff Wehrly

disagreed with Ms. Trout and said everything on the list was not presented at that time. They were given a few additional days to get it together and get it to the Licensing Department. She said the bottom line was there was no completed application.

Mr. Wright

felt what was incomplete was not being articulated. He wanted something in writing because verbally everything kept changing. He asked to be told what on the letter of July 9, 2020, had not been provided because he knew he provided it.

Ms. Colehour

said the July 15, 2020, letter sent to Mr. Hobbs that Mr. Wright responded to on July 17, 2020, specifically stated bank statements for all accounts held by the applicant including all businesses he had an ownership in for the most current six-month period. No business bank statements were received. Another question had to do with businesses that were listed on Mr. Hobbs’ personal tax return that were not listed as investments or assets he had. Mr. Wright responded he misunderstood those businesses and had been reporting his activity over Phone Zone, but with the Town of Pahrump Lisa Miller was listed as the owner and Phone Zone was owned by Wash and Save, LLC, which was not listed on anything provided as far as an asset.

Mr. Wright

said that was a misstatement of the request. There was no request for general accounts or ledgers for the corporation. The request stated six months of bank statements for all bank accounts personally held by John E. Hobbs. It absolutely did not state it called for corporate filings so his response was completely responsive to that letter. August 18, 2020 13. 10:00 a.m. For Possible Action Hearing to Show Cause, discussion and — — deliberation to: 1) Consider reinstatement or revocation of the Conditional Retail Liquor License that is suspended due to noncompletion of application requirements for JEH, LLC., Nevada Wine Cellars, Inc. dba, Pahrump Valley Winery; or 2) Allow additional time for applicant to become compliant-Cont’d. Bill Loken was sworn in by the Clerk. He provided the history of the purchase of Wine Ridge by he and his wife in 2005 and how all licensing was in place on the date they closed. In response to questions Mr. Loken advised the original offer he received when he sold the property was from Pacific West Development Corporation, aka PacWest. When he went to Ms. Trout’s office and signed the documents with the purchaser being PacWest she said she had to send them to Wyoming for her business partner to sign. When the document was returned it was signed by John Hobbs and that was the first time Mr. Loken had ever heard his name.

Sheriff Wehrly

said she was trying to figure out if there was someone else that was a partner with Mr. Hobbs besides Ms. Trout.

Mr. Loken

said he could not answer that. The signature on the purchase contract was John Hobbs, but the person represented to him as being the person interested in acquiring the winery was Ernie Moody. Mr. Loken felt he was dealing with Ms. Trout and Mr. Moody through PacWest. In response to questions from Commissioner Blundo, Mr. Loken advised he and his wife owned the Winery for 14 years or so. They began quietly inquiring about selling it around 2017. They took it off the market for a bit, and sometime in April he received a phone call from Ms. Trout even though they were not actively seeking a buyer. Ms. Trout said she was there on behalf of Mr. Moody. They did business deals together and wanted to acquire the Winery. Mr. Loken may have met Mr. Hobbs once at the Winery, but he would not recognize him today. The final sales price was $7.050 million and the funds were wired to escrow. A stock transfer took place on January 8, 2019, and on December 31, 2019, an assignment of agreement was received from PacWest to Quicker Liquor allowing them to become the purchaser. He knew of Ernie Moody and his reputation, but he never met him and only spoke to him on two occasions prior to the sale. In response to questions from Mr. Wright, Mr. Loken said he signed all of his stock over to Quicker Liquor. As to the last time he communicated with Mr. Moody, he advised he had two phone conversations with him, one about June or July, 2019, and then a text exchange over the last few days, including yesterday, because of concerns Mr. Loken had about the direction of the Winery. Mr. Moody responded he had nothing to do with the management and operations of the Winery. The non-compete clause in the purchase agreement expired on January 8 or 9, 2021, and Mr. Loken stated he was not competing with the Winery. August 18, 2020 13. 10:00 a.m. For Possible Action Hearing to Show Cause, discussion and — — deliberation to: 1) Consider reinstatement or revocation of the Conditional Retail Liquor License that is suspended due to noncompletion of application requirements for JEH, LLC., Nevada Wine Cellars, Inc. dba, Pahrump Valley Winery; or 2) Allow additional time for applicant to become compliant-Cont’d.

Mr. Wright

called Vanessa Ruiz as a witness, who was sworn in by the Clerk. Ms. Ruiz provided testimony regarding her employment, her involvement in the application process, the numerous requests for more information, and how she responded to those requests. Ms. Ruiz said the lack of a liquor license had dropped their numbers significantly. In response to questions from Commissioner Blundo, Ms. Ruiz advised her role was administration and she now did more management work. She had nothing to do with the payroll and her stub showed Quicker Liquor as her payor. She also advised her mother, Rachel Aldana, was a clerk and had no involvement in these proceedings.

Mr. Wright

asked her if she held a Sheriff’s card, to which Ms. Ruiz responded yes.

Mr. Wright

called Elizabeth Jacobson as a witness, who was sworn in by the Clerk. She was currently employed at the Pahrump Valley Winery as an event planner and assistant to Ms. Ruiz. She described the improvements done to the dining room and the kitchen. When Commissioner Koenig questioned the relevancy of the testimony, Mr. Wright stated it was relevant because it was stated one of the reasons the Sheriff was recommending denial was because of inconsistency concerning the amount of money invested and there was an implication that all that was paid was the purchase price. He was trying to clear up the fact that more money had been spent.

Commissioner Koenig

pointed out the show cause hearing was because the County was asserting the application was not complete. He asked Mr. Wright to try to stay relevant.

Mr. Wright

continued his questioning of Ms. Jacobson. She said she had met Mr. Hobbs, who did the IT stuff, took care of the landscaping, and made sure everything was running appropriately. She said the issue now was being unable to sell alcohol because they did not have a liquor license which put jobs in jeopardy.

Commissioner Cox

asked how often Mr. Hobbs appeared and how long he stayed.

Ms. Jacobson

said before he went back to take care of things in Wyoming she would see him a few times a week if not every day and she was able to call him with whatever she needed. August 18, 2020 13. 10:00 a.m. For Possible Action Hearing to Show Cause, discussion and — — deliberation to: 1) Consider reinstatement or revocation of the Conditional Retail Liquor License that is suspended due to noncompletion of application requirements for JEH, LLC., Nevada Wine Cellars, Inc. dba, Pahrump Valley Winery; or 2) Allow additional time for applicant to become compliant-ConVd. In response to questions from Commissioner Blundo, Ms. Jacobson said she was kind of familiar with the name Ernie Moody, but she had never seen him or met him. She did not do scheduling and she would help manage the employees when Ms. Ruiz was not on site, but she classified herself as an event planner. She named several people she had seen serve alcohol in the establishment, but not Mr. Hobbs or Ms. Trout.

Commissioner Wichman

asked if any of the employees would have direct knowledge of whether or not the application was complete.

Commissioner Strickland

felt that was a very relevant question and said she would keep everyone on task.

Mr. Wright

called Marie Schutz as a witness, who was sworn in by the Clerk. She had been employed as a winemaker by the Cellar since June, 2019. She advised the attendance at the restaurant had dwindled due to the lack of a license, but it did not affect her job because the wine still had to be processed. She said Mr. Hobbs had worked with her in the Cellar to learn the operations and Ms. Trout had helped a lot of people. In response to questions from Commissioner Blundo, Ms. Schutz said she was never employed by Mr. Loken. She owned her own winery for many years, then worked for another company for seven years, and had been working for Ms. Trout since June, 2019.

Mr. Wright

called Cheryl Wagner as a witness, who was sworn in by the Clerk. Ms. Wagner said she had worked at the Pahrump Valley Winery Symphony Restaurant for almost five years. She started when Mr. Loken owned it as a server and was now a hostess. She said she had met Mr. Hobbs and saw him a few times a week. She expressed her fear that people would get laid off.

Mr. Wright

recalled Kathy Trout as a witness, who was sworn in by the Clerk. Ms. Trout admitted that if she had an opportunity she would have filled the application out differently given all the questions that had come back since the initial submission. She would have met with the Sheriff first and gone into further detail with what was needed. Since the extra documentation was provided in July there had been no further communication from the Sheriff’s Office asking for more documents or mentioning deficiencies. Ms. Trout talked to the effect the lack of a liquor license had on the Winery, including possible layoffs. She committed to providing any documentation the Sheriff wanted if articulated and if she was given the opportunity. August 18, 2020 13. 10:00 a.m. For Possible Action Hearing to Show Cause, discussion and — — deliberation to: 1) Consider reinstatement or revocation of the Conditional Retail Liquor License that is suspended due to noncompletion of application requirements for JEH, LLC., Nevada Wine Cellars, Inc. dba, Pahrump Valley Winery; or 2) Allow additional time for applicant to become compliant-Cont’d. In response to Commissioner Blundo, Ms. Trout confirmed Zach Morrison was an employee at the Winery and she was current on all payroll taxes. In response to questions from Commissioner Cox, Ms. Trout stated she had never been turned down for a business or liquor license. She and all of her employees had passed the background checks and she was not aware of any citations being issued against the business or the licenses. She also would not have a problem providing the corporation information the Sheriff’s Office was asking for on Mr. Hobbs, however, if the license was revoked Ms. Trout stated she would take it to court. In response to further questioning by Commissioner Blundo, Ms. Trout said she had served liquor at the Winery under the state license, possibly to the public in the winetasting room, and she did not hold a Sheriff’s card. Lisa Miller was in charge of payroll and they had a payroll service. John Hobbs owned the Winery, and she had said she was an owner and had a financial interest in the Winery. Ms. Trout was unable to provide account numbers Commissioner Blundo asked for.

Commissioner Strickland

asked if Ms. Trout serving liquor in the winetasting room was a violation of the liquor license, to which Undersheriff Eisenloffel responded yes.

Ms. Trout

said it was her understanding that her state winemaker’s license through the corporation that she was the secretary of qualified her to do that, to which

Commissioner Strickland

responded not in this County and a Sheriff’s card was required to serve.

Mr. Wright

requested more time because the Winery could not afford to not have a license for at least six months. People would lose jobs and that was not necessary. He said he just needed to know what the Licensing Department wanted, but the scope of the inquiry was very broad.

Commissioner Strickland

closed the show cause hearing. Patricia Garlough said she worked for the winery for almost 1 7 years and recently quit because of things that were going on. She knew that Ms. Trout said under oath she had paid the payroll taxes, but Ms. Garlough had a letter from social security that showed none of her social security for 2019 was paid. Jennifer Simmons said she was at the Commission meeting on July 7, 2020. She said then over the last year and half the people who operated the Pahrump Valley Winery had set a prime example of unethical and illegal business practices. They had been August 18, 2020 13. 10:00 a.m. For Possible Action Hearing to Show Cause, discussion and — — deliberation to: 1) Consider reinstatement or revocation of the Conditional Retail Liquor License that is suspended due to noncompletion of application requirements for JEH, LLC., Nevada Wine Cellars, Inc. dba, Pahrump Valley Winery; or 2) Allow additional time for applicant to become compliant-Cont’d. and were non-compliant with state and federal laws. She also brought up their accounting negligence and improper IRS tax filing. Ms. Simmons said no social security was paid for her in 2019 either. She hoped the Board would decline their privilege for a liquor license. William Garlough said for over a year he had heard nothing except that Ms. Trout was the owner of the Winery. Today he heard she did not own it but rather John Hobbs did. He questioned where Mr. Hobbs was today. Jacqueline Gauthier said she had received an incorrect W2 and had still not received her income taxes for this year. Ammie Nelson mentioned how no other applicant took a year to get their license and did not feel Ms. Trout should have the license renewed. Genesis Murphy, a current employee of the Pahrump Valley Winery hired by the previous owners, said Ms. Trout and her associates were and had been in violation and non-compliant with Nevada state laws, health and safety codes involving the production of wine, labor laws, IRS filings, handling of employee documents, serving alcohol without Sheriff’s cards, etc. She had also received an incorrect W2 and had still not received her income taxes. She also had to contact the labor board to get her last paycheck and her 2019 social security was not reported. Ms. Murphy did not think they were responsible enough to hold a liquor license and asked the Board to deny Pahrump Valley Winery their liquor license. Joelle Bolton said she was the tasting room manager at the Pahrump Valley Winery from 2013 until June, 2019, and it was her responsibility to order liquor and wine for the restaurant. After Ms. Trout took over she made Ms. Bolton sign a waiver saying she would not order liquor from licensed vendors because Ms. Trout could get it cheaper at Smith’s and CVS. Ms. Bolton explained liquor that was going to be served to guests had to be ordered through a licensed vendor. When she told Ms. Trout that Nevada was a three-tiered state she was told to “stay in her lane.” If that was the cavalier attitude Ms. Trout was going to take with her liquor license Ms. Bolton wondered why the Board was still doing this with her. Jennifer Chumley, a former employee of the Pahrump Valley Winery, discussed Ms. Trout’s unethical business practices. She did see Ms. Trout come through the door with Smith’s bags with vodka and Ms. Trout had asked Ms. Chumley to lie at an unemployment hearing. Ms. Chumley had also had issues with her social security and her unemployment. August 18, 2020 13. 10:00 am. For Possible Action Hearing to Show Cause, discussion and — — deliberation to: 1) Consider reinstatement or revocation of the Conditional Retail Liquor License that is suspended due to noncompletion of application requirements for JEH, LLC., Nevada Wine Cellars, Inc. dba, Pahrump Valley Winery; or 2) Allow additional time for applicant to become compliant-Cont’d. Having considered all the evidence and testimony set forth in the show cause hearing

Commissioner Strickland

asked for a motion.

Sheriff Wehrly

made a motion that this Board revoke the suspended license from the Winery.

Commissioner Strickland

confirmed the motion was to revoke the suspended conditional retail liquor license due to non-completion of the application requirements.

Sheriff Wehrly

said that was correct.

Commissioner Koenig

seconded the motion to revoke the suspended conditional retail liquor license due to non-completion of the application requirements.

Commissioner Cox

asked if this was Ms. Trout’s license or the license for the owner,

Mr. Hobbs

, as she believed Mr. Hobbs was applying for it, not Ms. Trout. Undersheriff Eisenloffel said the applicant on the application as the owner was Mr. Hobbs, however, as he read and pointed out in his report earlier the Nye County ordinance required good moral character and compliance with all requirements in the ordinance of not only the person applying for the license but also the manager or anyone in a managing capacity. Additionally, as shown in his report, there was evidence that suggested that Ms. Trout was possibly an owner based on her statements to staff and the paperwork. She had also stated under oath in her written affidavit in the civil action that she and Mr. Hobbs were the owners of the Pahrump Valley Winery.

Commissioner Cox

felt someone screwed something up for someone and she was not sure the answer was shutting it down and putting people out of work

Commissioner Koenig

made a motion to set the public hearing for Tuesday, September 15, 2020, at 10:00 am. in Pahrump; seconded by Commissioner Wichman. Since the Board was compromised of six members Commissioner Blundo asked if a majority would then be four. Michelle Nelson said not necessarily. She explained it depended on if anyone recused themselves or failed to show up so there was contradictory language in the NRS. The language in the bill was taken specifically from the NRS to say a majority of all members. Another section of NRS said if this language was not used it would constitute void action which was why that language was provided rather than the proposed four- member quorum. Samantha Tackett added this was a request from Commissioner Koenig essentially, but issues had come up because the Board was not able to effectively conduct business without almost violating open meeting quorum laws. The intent was to expand this to make it easier for the Board to conduct business and not be in violation of the Open Meeting Law.

Commissioner Koenig

assumed the Chair of the Board of County Commissioners. SITTING AS THE GOVERNING BODY OF UNINCORPORATED TOWN OF PAHRUMP 15. 10:00 a.m. For Possible Action Public Hearing, discussion and deliberation — — to: 1) Adopt, amend and adopt, or reject Pahrump Town Bill No. 2020-01 titled Motor Vehicles, Chapter 72.020, titled speed limit imposed by changing the speed limits in the area of Honeysuckle Park/lan Deutch Park, and providing for the severability, constitutionality and effective date thereof; and other matters properly relating thereto; and 2) Set an effective date.

Commissioner Blundo

made a motion to amend and adopt Pahrump Town Bill No. 2020-01 setting an effective date of September 3, 2020 with minor changes.

Commissioner Koenig

opened and closed the public hearing. August 18, 2020 15. 10:00 a.m. For Possible Action Public Hearing, discussion and deliberation — — to: 1) Adopt, amend and adopt, or reject Pahrump Town Bill No. 2020-01-Cont’d.

Commissioner Blundo

referred to section 72.040, which made it unlawful for any person to ride with exhaust mufflers cut open or straight exhaust pipes. He said at parades and special events individuals had older vehicles that may have straight pipes and he did not want to make good citizens criminals. Commissioner Blundo also pointed out that crossing over a double yellow line was prohibited, but on Blagg people were pulling into their homes technically crossing and breaking the law and they could be cited.

Commissioner Koenig

said the NRS allowed that.

Commissioner Blundo

said he did not want it in the ordinance if it was not in the NRS. He also would like to change the maximum penalty from $500.00 to $200.00 on page 5.

Commissioner Strickland

said she did not want to touch the exhaust muffler issue, but she agreed with the $200.00. Chris Arabia thought it might be a good idea to bring this back because when he read it originally he thought it was just speed limits, but it seemed to have other things in there. The agenda item talked about speed limits, but Commissioner Blundo was talking about amending the exhaust pipes, and “other matters” was a little vague. The speed limits could be done today.

Commissioner Cox

thought State Highway 16 should be replaced with State Highway 160 as that was what it was known as now.

Commissioner Blundo

made a motion to adopt effective September 3, 2020; seconded by Commissioner Strickland. Michelle Nelson advised they worked off of the old ordinance and had to make one amendment to a chapter number, which should be 24-20.

Commissioner Blundo

amended his motion to adopt with the change of 24-20 with an effective date of September 3, 2020; Commissioner Strickland amended her second; 5 yeas. SITTING AS THE BOARD OF COUNTY COMMISSIONERS COUNTY MANAGER 34. For Possible Action Discussion and deliberation regarding prioritizing Bill Draft Requests (BDRs) Nye County can submit for the 2021 Legislative Session. Mark Fiorentino, the County’s lobbyist, said since the last meeting the various issues had been vetted based on the importance of the issue to the Board and the citizens, the August 18, 2020 34. For Possible Action Discussion and deliberation regarding prioritizing Bill Draft Requests (BDRs) Nye County can submit for the 2021 Legislative Session Cont’d. likelihood of success, and whether there were other mechanisms to address the issue outside of the BDR. He did not recommend using a BDR that might be addressed elsewhere since the County only got one. His recommendation was to consider addressing the rebalancing of elected officials pay; guidance on the recycling and/or disposal of systems used in renewable energy projects; or training of certain public body members. Of those three, Mr. Fiorentino recommended dealing with recycling and/or disposal of systems used in renewable energy projects. He explained he thought the rebalancing of elected officials pay was a long shot as there was a cycle the Legislature used to consider pay issues and that was outside the cycle. There may also be an opportunity to address that outside of the BDR. As to training of certain public body members, the last information Mr. Fiorentino received was NACO was not planning to submit a BDR on that issue, however, they still could and were willing to if the County worked closely with them and got them more information on what was being looked for.

Commissioner Koenig

asked why the issue of the property tax reset at the time of sale was not on the list.

Mr. Fiorentino

explained he thought it if was going to get addressed it would be addressed through an association like NACO. He thought the property tax issues, including the reset and redetermination of value, would come up in the next session so he suggested not wasting a BDR on it.

Commissioner Blundo

talked about the required professional development for public body members. He said the Commissioners were elected officials and he felt that was a way to circumvent that and put constraints on it. The Commissioners were not typical County employees. They were the CEO5 of the County and he was trying to find different ways to put training language in.

Commissioner Strickland

commented that was a big deal the Sheriff was after because anyone could be sheriff with no background at all.

Commissioner Blundo

said that was not the conversation he heard. It was to mirror the School Board language where they had to have certain training. He said he would forego rebalancing of the elected official’s pay, but he thought BEC Environmental should champion recycling and/or disposal of systems used in renewable energy projects as it came from them. Commissioner Blundo thought sometimes a BDR needed to be used to make a statement which was why he suggested repealing the commerce tax because no one was talking about what could make Nevada better again.

Commissioner Blundo

made a motion to select item 9, repeal of the commerce tax, to be the County’s BDR; seconded by Commissioner Cox. August 18, 2020 34. For Possible Action Discussion and deliberation regarding prioritizing Bill Draft Requests (BDRs) Nye County can submit for the 2021 Legislative Session Cont’d. Ammie Nelson would like to see a BDR to get rid of the unions, but she did not want any BDR that would increase taxes.

Commissioner Wichman

made a motion to approve; seconded by Commissioner Blundo; 5 yeas. SITTING AS THE BOARD OF COUNTY COMMISSIONERS CONSENT AGENDA ITEMS These are items that Staff recommends for approval. The Board reserves the right to move any consent agenda item to the regular segment of the agenda should issues arise that need to be addressed. Discussion of any item from the Consent Agenda Items that needs review before a decision is made. 18. For Possible Action Approval of the Elected Official Collection Report regarding fees collected from elected county departments for services rendered by or provided to county citizens.

Commissioner Blundo