Regular Meeting

City of Elko ) County of Elko ) State of Nevada ) SS May 12, 2026 The City Council of the City of Elko, State of Nevada met for a regular meeting beginning at 4:00 PM, Tuesday, May 12, 2026. The meeting was held in the council chambers, 1751 College Ave., Elko. This meeting was called to order by Mayor Reece Keener. The public can watch the meeting by phone, tablet, laptop, or computer by going to the link provided on the agenda. Questions can be sent to cityclerk@elkocitynv.gov. I. CALL TO ORDER The Agenda for this meeting of the City of Elko City Council has been properly posted for this date and time in accordance with NRS requirements. II ROLL CALL . Present: Reece Keener, Mayor Giovanni Puccinelli, Chip Stone, Councilman Clair Morris, Councilman Marissa Lostra, Councilwoman City Staff Present: Jan Baum, City Manager Dale Johnson, Utilities Director Dave Stanton, City Attorney Annette Robinson, City Clerk Kyle Ward, Police Chief Joel Finley, Deputy Fire Chief Cathy Laughlin, City Planner Candi Quilici, Accounting Manager Andrew Storla, Water/Sewer Superintendent Paul Algerio, Public Works Justin Alanis, Facilities Superintendent Susie Shurtz, Human Resources Manager Sarah Schick, Civil Engineer Jim Foster, Airport Manager Sarah Khouangrasvongsay, City Clerk Technician I Jim Kerr, Utilities Director James Wiley, Parks and Recreation Director Jonathan Keil, Police Lieutenant III. PLEDGE OF ALLEGIANCE May 12, 2026 City Council | Minutes Page 1 of 21 Mayor Keener asked Rusty Bahr to lead in the pledge. IV. COMMENTS BY THE GENERAL PUBLIC Pursuant to N.R.S. 241, this time is devoted to comments by the public, if any, and discussion of those comments. No action may be taken upon a matter raised under this item on the agenda until the matter itself has been specifically included on a successive agenda and identified as an item for possible action. ACTION WILL NOT BE TAKEN Scott Gavorsky, 878 2nd Street, speaking on behalf of the Elko County Republican Party, reminded the Council that sample mail ballots had been mailed and election season had begun. He noted several upcoming candidate events, including a realtor meet-and-greet on Thursday, and stated that information on Republican candidates was available on the party website at elkonvgop.org. He added that events for other candidates were also being scheduled and encouraged the public to watch for updates. Rusty Bahr with the Boys and Girls Club, 782 Country Club Drive, provided an update on the outdoor pool renovation, stating that the pool was being filled and that most features had been fully upgraded, including new plaster, fencing, lighting, decking, filter systems, drainage systems, grills, and furniture. He reported that a ribbon cutting was planned for May 27th at 5:15 p.m. and that the pool was expected to open on May 29th, pending delivery of the ladders. He thanked Highmark Construction for its work on the project and noted continued efforts to address weeds in the lawn area. Mayor Keener called for final public comment. V. CONSENT AGENDA V.A. Approval of Minutes for the April 28, 2026, Regular Session. FOR POSSIBLE ACTION V.B. Review, consideration, and possible approval for the Elko Police Department to submit an application for the Bureau of Justice Assistance FY 2025 Rural Law Enforcement Violent Crime Initiative grant, this is a no match grant with an anticipated award ceiling of $400,000, and matters related thereto. FOR POSSIBLE ACTION The Elko Police Department is requesting approval to apply for the Bureau of Justice Assistance FY 2025 Rural Law Enforcement Violent Crime Initiative Grant. If awarded, the funding will support the department’s drone program by replacing outdated equipment that is currently experiencing operational issues. This equipment is essential for law enforcement operations, including high-risk and tactical incidents, locating fleeing suspects, and assisting in searches for missing persons. JK V.C. Review, consideration and possible re-appointment of four members to the Ruby View Golf Course Advisory Committee and matters related thereto. FOR POSSIBLE ACTION May 12, 2026 City Council | Minutes Page 2 of 21  The terms for committee members Clair Morris, Dana Morfin, Chris Torres, and Colin Oke expired on December 31, 2025. All four members have expressed interest in being re-appointed to the committee for another two-year term. JW V.D. Consideration and possible authorization for Staff to advertise for one vacant position on the Ruby View Golf Course Advisory Committee and matters related thereto. FOR POSSIBLE ACTION The Ruby View Golf Course Advisory Committee currently has one vacant position for a two-year term expiring on December 31, 2028. JW V.E. Consideration and possible authorization for staff to advertise for one vacant position on the Parks and Recreation Advisory Board and matters related thereto. FOR POSSIBLE ACTION The Parks and Recreation Advisory Board currently has one vacant position. Vacancies other than the expiration of the term shall be filled for the remaining duration of the term set to expire on June 30, 2027. JW V.F. Review, consideration, and possible action to ratify Amendment No. 2 to Cooperative Agreement No. PR098-20-018 between the State of Nevada, acting by and through its Department of Transportation, and the City of Elko, and matters related thereto. FOR POSSIBLE ACTION On May 3, 2026, Mayor Keener signed Amendment No. 2 to Cooperative Agreement No. PR098-20-018 between the State of Nevada, acting by and through its Department of Transportation, and the City of Elko to partner in the implementation of Municipal Separate Storm Sewer Systems Permit Stormwater Management Program elements. The agreement's term has been extended from June 30, 2026, to June 30, 2029. The City of Elko Contact information has been updated to the current staff, and all the other provisions of Agreement No. PR098-20-018 dated January 15, 2021, and Amendment No. 1 dated June 12, 2023, shall remain in full force and effect as if fully set forth herein. DJ Mayor Keener called for questions or concerns from the public. ** A motion was made by Councilmember Puccinelli, seconded by Councilmember Stone to approve the Consent Agenda as written. The motion passed unanimously. (5-0) VI. PERSONNEL VI.A. Employee Introductions: 1. Paul Bloomfield - Police Patrol Officer II May 12, 2026 City Council | Minutes Page 3 of 21 Chief Kyle Ward introduced a new police officer, Paul Bloomfield. He noted that Mr. Bloomfield recently came from Las Vegas, brings many years of experience, and is known for being family- oriented, a strong detective, and a capable investigator. Chief Ward said the department is happy to have him and invited Mr. Bloomfield to briefly introduce himself. Paul Bloomfield introduced himself to the City Council, sharing that he recently moved from Henderson and is relocating north to be closer to Salt Lake City. He described himself as family- oriented and said he looks forward to bringing his experience from southern Nevada to help serve and improve the local community. Mayor Keener welcomed Mr. Bloomfield to the department and community, expressed appreciation for his move north, and said the City was glad to have him join the team. VII. APPROPRIATION VII.A. Review and possible approval and/or ratification of Warrants, Hand Cut Checks and matters related thereto. FOR POSSIBLE ACTION ** A motion was made by Councilmember Puccinelli, seconded by Councilmember Morris to approve Regular Warrants in the amount of $1,000,182.46. The motion passed unanimously. (5-0) ** A motion was made by Councilmember Puccinelli, seconded by Councilmember Morris to approve Hand Cut checks in the amount of $148,387.55. The motion passed unanimously. (5-0) ** A motion was made by Councilmember Puccinelli, seconded by Councilmember Morris to approve Hand Cut check to Skywest Airlines in the amount $29,339.75. ** This item was amended due to an error in vendor . See below in Appropriation(Continued) The motion passed unanimously. (5-0) Mayor Keener noted that anyone with questions about the City’s account payables can find that information posted online in the agenda packet. VII.B. Review, consideration, and possible approval of the purchase of a 2026 Ford Explorer for the Elko Police Department totaling $45,036 and an FY26 budget transfer from salaries/benefits to capital outlay to cover the expenditure, and matters related thereto. FOR POSSIBLE ACTION May 12, 2026 City Council | Minutes Page 4 of 21  The Elko Police Department is requesting the purchase an unmarked vehicle (replacement) and is requesting to use savings from two vacant part-time positions and a vacant full-time Records Technician position. This cost of $45,036 is excluding vehicle outfitting, which will be done after June 30, 2026 from FY27 budget. An FY26 budget transfer from salaries/benefits to capital outlay would be required. JK Lt. Jonathan Keil explained that the Police Department is seeking approval to buy an unmarked vehicle to replace an aging fleet vehicle that is 10–15 years old and nearing the end of its useful life. He said the purchase would be funded by reallocating unused salary savings from vacant positions so the department can acquire the vehicle before the new fiscal year begins. Mayor Keener expressed support for the Police Department’s vehicle purchase request, saying patrol vehicles are consistently a significant need because they receive heavier use than vehicles in other departments. He also said he appreciated the creative funding approach and wanted to hear the rest of the Council’s views. Councilmember Puccinelli said he supports the vehicle purchase, agreeing it is a need rather than a want and expressed approval of the department’s creative financing approach. Councilmember Morris said he supports the vehicle purchase, noting that the department has found a way to fund it within budget and that at least one of the current vehicles has extremely high mileage and needs replacement. Mayor Keener asked whether there was any public comment on the item and, hearing none, stated readiness to entertain a motion. ** A motion was made by Councilmember Stone, seconded by Councilmember Morris to approve a purchase of a 2026 Ford Explorer totaling $45,036 and the approval of an FY26 budget transfer moving $45,036 in the budget from salaries/benefits to capital outlay in the General Fund Police Department budget. The motion passed unanimously. (5-0) VII.C. Review, consideration, and possible approval of a procurement agreement with I & E Electric for the purchase and installation of SCADA (Supervisory Control and Data Acquisition) equipment for the seven remaining wells not currently equipped with SCADA controls, as part of the Water Modernization Asset Management Project, and related matters thereto. FOR POSSIBLE ACTION Sealed bids for the Water Modernization Asset Management Project were opened on December 7, 2024. Only one bid was received for the SCADA portion of the project. At that time, City staff deferred the procurement while other components of the project were awarded to ensure adequate funding was available. It has since been confirmed that sufficient funding is available through the SRF Grant administered by the Office of Financial Assistance. Due to the delay, project costs have increased; however, the May 12, 2026 City Council | Minutes Page 5 of 21  Office of Financial Assistance has reviewed and approved the revised pricing. Staff are now prepared to proceed with the procurement. JK Jim Kerr, Utilities Director, said the purchase had been deferred to confirm funding and evaluate SCADA needs. He said the project would place all City wells on SCADA to allow remote monitoring and improve response to issues. Mayor Keener asked whether the SCADA purchase was included in the original modernization project funding, including grant and principal-forgiveness financing. Mr. Kerr confirmed the SCADA purchase was included in the original project amount, but the grant- based principal forgiveness funds had already been used, so the remaining cost would be paid from the 1% loan portion. Mayor Keener asked how much the cost had increased. Mr. Kerr said the cost had increased about $50,000. Councilmember Lostra asked why Well 36’s estimated cost was much higher than the other wells, at about $98,000. Mr. Kerr said Well 36 cost more because it requires additional equipment and upgrades, including flow meters, control valves, chlorine-related components, cables, a dosing pump, and a variable frequency drive, all of which increase the price. Councilmember Lostra noted that one 150-horsepower VFD appeared to be separate from the other wells listed. Mr. Kerr said that well currently runs at constant speed, so it would need a VFD added. Mayor Keener called for public comment. ** A motion was made by Councilmember Lostra, seconded by Councilmember Puccinelli to approve the procurement of SCADA (Supervisory Control and Data Acquisition) equipment for the seven remaining wells not yet equipped with SCADA controls, through I & E Electric. The motion passed unanimously. (5-0) VIII. UNFINISHED BUSINESS VIII.A. Review, discuss, and provide possible direction regarding the allocation of Facility Reserve Fund resources for FY2027, including consideration of funding a new City Hall, funding a new Fire Station, or deferring both projects, and matters related thereto. FOR POSSIBLE ACTION May 12, 2026 City Council | Minutes Page 6 of 21  This item was previously presented to the City Council during the FY2027 budget workshop and Tentative Budget as part of the “Council Decisions Needed” discussion. No formal action was taken at that time. Staff are returning this item for individual consideration and direction. The approximate cost of City Hall is $10,500,000.00 and a Fire Station is $15,000,000. JB Jan Baum, City Manager, stated Staff would bring the final budget to the next City Council meeting and requested direction on the Facility Reserve Fund so the budget could be finalized. Mayor asked Justin Alanis to explain the concerns driving discussion about the need for a new City Hall. Justin Alanis, Facilities Superintendent, stated City Hall has major aging infrastructure issues, including a failing chiller, poor HVAC control, roof leaks, aging trailer HVAC units, and corroded boiler piping. He said the needed repairs are costly and necessary, and that continuing to use the building will require significant investment. Copies of the quotes for repairs are in the minutes packet. Councilmember Puccinelli noted that the visible problems may only be part of the issue and that additional hidden problems are likely to emerge. Mr. Alanis said the building’s temperature controls are inconsistent, with no individual office control, which can leave some staff uncomfortably cold even during summer. Mayor Keener inquired about the condition of the roofs on the rear modular buildings. Mr. Alanis stated that the rear modular roofs were generally in good condition, with one shingled roof and one metal roof, and noted that part of the building had been re-roofed approximately two years earlier. He added, however, that the HVAC units serving the modulars are aging and nearing the end of their useful life, and emphasized that continued use of the property will require additional investment to prevent further deterioration. Mayor Keener expressed concern about continuing to invest significant funds in such an old building. Mr. Alanis explained that replacing the chiller and related components would not improve air flow in City Hall because the building’s air distribution system is inherently inefficient. He said the Chamber receives limited air from a single fan, requiring Staff to increase airflow in advance of meetings to cool the room, which in turn makes nearby office areas extremely cold and uncomfortable for employees. Mayor Keener asked whether a new system would allow remote adjustment. Mr. Alanis stated that some remote system adjustments are already possible, but the building’s design significantly limits what can be controlled. He explained that City Hall was built for hot-water heat only, lacks space for rooftop units and ductwork expansion, and has electrical systems already at capacity. He said the building could continue to operate, but only with substantial additional investment. May 12, 2026 City Council | Minutes Page 7 of 21 Mayor Keener asked whether, if the chiller failed during the summer, replacement equipment could later be repurposed for use in another City building. Mr. Alanis stated that a replacement chiller likely could not be repurposed elsewhere because it would be designed for a specific coil and space configuration within City Hall’s existing system. He added that newer refrigerant systems involve different pressure classifications, more complex safety controls, and additional shutdown requirements, making the equipment a specialized fit rather than a flexible asset. Councilmember Lostra asked whether the City has any temporary backup plan if the chiller fails, or whether replacement is the only option. Mr. Alanis said there is no effective temporary backup plan if the chiller fails. He said Staff previously tried portable units in the air ducts, but that only added humidity without improving conditions, leaving few practical options beyond replacement. Councilmember Puccinelli said the City appears to be in a similar position as it was with the pool— hoping nothing fails, but recognizing the risk remains. Councilmember Morris asked how long the rear trailers had been in place, noted they were intended as a temporary solution, and said they appear to have been there about 20 years and are now worn out. Mr. Alanis said replacement parts are difficult to obtain because the Engineering Department’s AC units are 1995 models, and suppliers no longer keep records or support information for equipment that old. Councilmember Puccinelli noted that R-22 refrigerant may still be available but said it is difficult to find and has become very expensive, citing a recent price of nearly $3,500 for a 25-pound jug. Mr. Alanis said R-22 is scarce, expensive, and difficult to obtain, and added that the existing coil system cannot be reused because it would not be feasible to fully remove the old refrigerant contamination. He said a new refrigerant system would therefore be required. Mayor thanked Mr. Alanis and his team for their efforts, then asked Ms. Baum to confirm whether the City was considering either a new City Hall or a new Fire Station as the immediate facility priority. Ms. Baum confirmed that, once a facility decision is made, Staff will return with funding options for Council’s consideration. She noted that the Facility Reserve Fund has an ending balance of approximately $10.7 million, which would be sufficient to fund a new City Hall, but said Staff intend to present multiple financing approaches depending on the building selected. Councilmember Morris asked if the Police Department debt would be paid off soon. Ms. Baum stated that the Police Department debt had been paid off. May 12, 2026 City Council | Minutes Page 8 of 21 Councilmember Lostra inquired that the City has options for pursuing a new City Hall in a more financially sustainable manner, without exhausting the entire Facility Reserve Fund, and asked if alternative approaches would allow the City to avoid starting with a zero balance. Ms. Baum stated that Staff would return with multiple financing options, including paying cash from the Facility Reserve Fund or financing a portion of the project to preserve fund balance. She said that approach would allow the City to continue building reserves for a future Fire Station and emphasized that the City’s decision was not an either/or choice between City Hall and a Fire Station, but a plan to accomplish both over time while keeping any financing term at 10 years or less. Mayor Keener asked Ms. Baum, based on her perspective and discussions with department directors, especially the Fire Chief, which facility project she preferred as the priority. Ms. Baum said she favored making City Hall the first priority while planning for both projects over time. She said the City could move forward with City Hall first, finance part of it if needed, and then rebuild reserves for a future Fire Station, adding that the Fire Chief agreed with that approach. Mayor Keener said a new City Hall could create operational efficiencies by bringing departments together under one roof, noting that IT currently lacks adequate space and that Parks could also be relocated into the building. Ms. Baum added that a new City Hall would also allow Parks, IT, the modular offices, and City Hall functions to be consolidated in one building, creating operational benefits by bringing Staff together in a single location. Mayor Keener stated his support for prioritizing City Hall and said Staff needed Council direction in order to complete the upcoming fiscal year budget. He then asked the other Council members for their positions on the matter. Councilmember Lostra asked whether Staff had identified a comparable timeline of facility needs for the Fire Station, including major components nearing the end of their useful life, and whether the City should anticipate needing a new Fire Station within the next few years. Ms. Baum stated that the FAA has identified the current Fire Station as being within the runway safety zone and has indicated it should eventually be relocated, although the City expects to receive a modification allowing it to remain in place for now. She said the station will need to be moved in the future and noted there is also a possibility the FAA could require the current facility to be removed. Councilmember Morris asked whether federal funding would be available to help rebuild if the City were required to tear down the Fire Station. Ms. Baum said federal funding would likely be available for the ARFF Station if it had to be relocated, but not for the other Fire Station because FAA funding had already supported the current facility at its approved location. May 12, 2026 City Council | Minutes Page 9 of 21 Councilmember Morris noted that the Fire Station was originally approved in its current location, but that the FAA has since changed its position. Joel Finley, Deputy Fire Chief, stated that, if the FAA required relocation of the Airport Fire Station, some funding would likely be available to move it to a nearby site that would preserve Airport coverage. He added that a future additional station would also improve response coverage in growing areas of the City and noted that while the current Fire Station has ongoing maintenance needs, the department recognizes City Hall as the immediate priority. Councilmember Puccinelli said he hoped the City Hall project could be completed at or near the current estimate, while acknowledging the final cost could rise to around $12–13 million. He said he hoped the City could still find a way to make the project work within budget. Mayor Keener said the project would likely require at least a couple rounds of value engineering and asked how long it would take to complete the final plans. Dale Johnson, Assistant City Manager, said final construction drawings and bidding would likely take six months to one year, depending on when the City authorizes the project to move forward. Councilmember Stone stated that, although the Fire Station remains a need, the City has already invested considerable time planning a new City Hall and should move forward without further delay. He said postponing the project would only increase costs and emphasized that the City should plan for growth by developing facilities that reflect the community’s future. Councilmember Morris supported financing the project partially so the City would not fully deplete the Reserve Fund and could still make progress toward a future fire station. Ms. Baum agreed that partial financing should be considered and said Staff would evaluate the option, noting that interest rates on bonding had recently increased somewhat. Councilmember Puccinelli agreed with Councilmember Morris’s comments, supported exploring financing options, and said he personally favored moving forward with City Hall. Councilmember Lostra expressed support for prioritizing a new City Hall, while cautioning against fully depleting the Facility Reserve Fund. She said the City should pursue creative financing options, noted that continued repairs to the current building would be costly without solving the underlying issues, and emphasized that the Fire Department should remain part of the City’s long-term facility planning. Mayor Keener called for public comment, hearing none, and called for a motion. ** A motion was made by Councilmember Puccinelli, seconded by Councilmember Stone to direct Staff to allocate the Facility Reserve Fund resource for FY 2027 to include and consider City Hall funding. The motion passed unanimously. (5-0) May 12, 2026 City Council | Minutes Page 10 of 21 Mayor Keener said the project would be a major step forward for the City, noted he would likely not be in office to see its completion, and suggested naming the future City Hall in honor of Lee Hoffman for his contributions to the community. VIII.B. Review, discussion and possible approval of a 2.5% or 3.0% COLA for management and AO's and an additional step to the pay matrices for management, AO's and confidential employees and matters related thereto. FOR POSSIBLE ACTION The COLA increase for management and AO personnel was included in the Budget Workshop and Tentative Budget presentations. The additional step for management, AO's and confidential employees was discussed during the Class Comp Study in November 2024. In preparation for the Final Budget, staff is requesting direction on both items. The attached document includes the impact to the budget for both scenarios. JB Ms. Baum said Staff needed Council direction to finalize the budget and presented two compensation proposals: increasing the COLA for management and appointed officials from 2.5% to 3% to match OE3 and adding one step to the pay matrix for management, AO’s, and confidential employees based on the prior compensation study recommendation. Mayor Keener said 11 management employees are already at the top of their pay range and only receive COLA adjustments. He said the City operates lean in a competitive labor market, noted April CPI was 3.8%, and expressed support for the 3% COLA. Councilmember Stone asked for clarification that Fire employees received 4.375% in FY26 and would receive 3% in FY27, and that Police would receive 4.75% under the prior negotiations, with new negotiations still pending. Ms. Baum confirmed the figures and noted that Police and Fire had large PERS increases, so their prior compensation adjustments primarily offset those retirement cost increases. Councilmember Stone asked whether the PERS rate was now about 39%. Ms. Baum clarified that the PERS rates were 58.75% and 36.375%. Councilmember Stone said he supported the 3% COLA. Councilmember Puccinelli said he supported the 3% COLA, stating that the proposal was fair and that management employees work hard in a lean organization. Councilmember Morris said the proposal was fair and emphasized that competitive compensation is necessary to retain good employees and avoid further staff turnover. Councilmember Lostra said the City is in a competitive job market, emphasized the importance of retaining employees, and expressed support for the 3% COLA. May 12, 2026 City Council | Minutes Page 11 of 21 Mayor Keener called for public comment. Ms. Baum noted that the Council also needed to decide whether to add the proposed extra pay step. Mayor Keener referenced the Pontifex study and said the City’s pay ranges are above market on the minimum end but below market on the maximum end. He said adding an extra pay step would help address that imbalance and asked Susie Shurtz whether she agreed. Susie Shurtz, HR Director, said some positions are further below market than others, but adding the extra pay step would generally help address those disparities. Ms. Baum stated that the attached Pontifex study recommended adding an extra pay step and that, combined with a 3% COLA, the estimated cost would be approximately $47,000 for 11 employees. Councilmember Lostra said the cost difference between a 2.5% and 3% COLA was only about $1,000, which she viewed as a minimal budget impact and worthwhile to help retain and incentivize the 11 topped-out employees. Mayor Keener noted that some of the affected employees have been at the top of their pay range for a long time. Councilmember Puccinelli said the proposal made financial sense and expressed support for it. Councilmember Morris expressed support for the proposal and asked whether it would worsen pay compaction. Ms. Baum said the additional pay step would likely help reduce compaction, especially if paired with the 3% COLA rather than 2.5%. ** A motion was made by Councilmember Puccinelli, seconded by Councilmember Stone to approve a 3% COLA for management and AO's and an additional one step to the pay matrices for management, AO’s, and confidential employees. The motion passed unanimously. (5-0) VIII.C. Review, discuss, and provide approval of an additional Building Department Position in the FY2027 Budget, and matters related thereto. FOR POSSIBLE ACTION This item was previously presented to the City Council during the FY2027 Tentative Budget Presentation as part of the “Council Decisions Needed” discussion. No formal action was taken at that time. Staff are returning this item for individual consideration and direction. The budget impact of adding this position is included in the attachment. JB May 12, 2026 City Council | Minutes Page 12 of 21 Ms. Baum said Staff is conducting an efficiency review of the planning and building permit process and requested provisional budget authority for a possible additional Building Department position if the study recommends it. She said the position would cost about $94,000 annually with salary and benefits. Mayor Keener asked whether the proposed position was only a provisional placeholder in case the efficiency study finds the department is understaffed and recommends adding another employee. Ms. Baum confirmed the position was only a placeholder so the City could respond if the efficiency review supports adding it. Mayor Keener asked whether there was sufficient room in the General Fund to accommodate the provisional Building Department position. Ms. Baum confirmed there was sufficient room in the General Fund. Mayor Keener called for public comment. Councilmember Stone said improving Building Department efficiency should remain a public priority next year, including faster turnaround times, and added that the provisional position could be a useful tool to help builders move projects through the process more effectively. Mayor Keener noted that construction activity in the City appears to be increasing, said that added demand affects the Building Department, and expressed support for the provisional position if the efficiency study shows it is needed. Councilmember Lostra said she supported budgeting a cushion for the provisional position even if it is not ultimately needed and added that she hopes process improvements in the Building Department will reduce the need for adding Staff. ** A motion was made by Councilmember Puccinelli, seconded by Councilmember Stone to approve an additional Building Department position in the FY2027 Budget. The motion passed unanimously. (5-0) IX. NEW BUSINESS IX.A. Review, discussion and possible approval to decrease the employee paid health insurance premiums for dependents by 10% and increase the City paid HSA/HRA contributions to $1,200 per employee and $250 per dependent up to three (3) dependents for the Fiscal Year 2027 Budget, and matters related thereto. FOR POSSIBLE ACTION Due to recent good claim history and the increased Health Insurance Fund ending Fund Balance, management is recommending a decrease to the employee paid dependent health insurance premiums by 10% (the City pays 100% of the health insurance premiums for all employees). Management also recommends increasing the HSA/HRA May 12, 2026 City Council | Minutes Page 13 of 21  contributions from $1000/employee and $200/dependent, up to three (3) dependents, to $1200/employee and $250/dependent up to three (3) dependents. Both of these changes are for the Fiscal Year 2027 Budget. Detail costs of these changes are included in the attachment. JB Jan Baum said the Health Insurance Fund is now financially strong due to a flat premium renewal and adequate reserves, so Staff recommended sharing those savings with employees by reducing dependent health insurance premiums another 10% and increasing the HSA contribution for all employees. Mayor Keener asked for clarification of the acronyms HSA and HRA. Ms. Baum said HSA stands for Health Savings Account and HRA stands for Health Reimbursement Account. Mayor Keener said it was encouraging to see costs decrease and noted that the City’s Health Insurance Fund appears to be in strong financial condition, with the City responsible for the first $80,000 of claims before insurance coverage applies. Ms. Baum said the growing and stable fund balance has increased the City’s purchasing leverage, allowing it to raise the deductible from $50,000 to $80,000, which lowered premiums and helped contain health insurance fund costs. Mayor Keener said the proposal appeared favorable and disclosed that most Council members would personally benefit from it as part of their own benefits package. He disclosed that the Council would be voting on a matter that could directly affect their own benefits and referenced the issue as a possible pecuniary interest. Councilmember Puccinelli said he did not personally participate in the benefit but supported the proposal because it would help employees and improve retention. Councilmember Morris said health insurance is a significant benefit and expressed support for the proposal, noting that reducing employee costs would provide meaningful help to Staff. Mayor Keener called for public comment. ** A motion was made by Councilmember Stone, seconded by Councilmember Morris to approve to decrease the employee paid health insurance premiums for dependents by 10% and increase the City paid HSA/HRA contributions to $1,200 per employee and $250 per dependent up to three (3) dependents for the 2027 Fiscal Year Budget. The motion passed unanimously. (5-0) X. RESOLUTION AND ORDINANCE X.A. Review, consideration, and possible approval of Resolution No. 6-26, a resolution establishing an internal service fund known as "Risk Management Fund," a transfer in May 12, 2026 City Council | Minutes Page 14 of 21  the amount of $100,000 from the General Fund to start the fund, and other matters related thereto. FOR POSSIBLE ACTION On April 28, 2026, City Council heard the recommendation of the establishment and benefits of the Risk Management Fund and directed staff to move forward with the fund creation. JB Ms. Baum said the proposed fund had already been approved in concept at the prior meeting and that Staff believed $100,000 in seed money would be sufficient for the first year. Mayor Keener noted that the proposed fund was recommended by POOL/PACT for member agencies to help prevent financial shocks. Ms. Baum agreed and said the fund was especially important for protecting the General Fund. Councilmember Stone asked whether the City would continue adding to the fund over time and whether the initial amount would be enough to start. Ms. Baum confirmed Councilmember Stone statement and stated the fund would not pay routine liability premiums but would instead cover uninsured gaps when a loss exceeds insurance proceeds, such as the extra cost to replace a vehicle. She said the purpose is to absorb unexpected financial shocks. Councilmember Lostra asked whether the new fund would be placed in an interest-bearing account so the City could also earn investment income on the money. Ms. Baum confirmed that the funds would be held in interest-bearing investment accounts, including the City’s sweep account, LGIP, or BCS. ** A motion was made by Councilmember Lostra, seconded by Councilmember Stone to approve of Resolution No. 6-26, a resolution establishing an internal service fund known as "Risk Management Fund," a transfer in the amount of $100,000 from the General Fund to start the fund. The motion passed unanimously. (5-0) X.B. Review, consideration, and possible approval of Resolution No. 7-26, a resolution establishing the "Compensated Absences Fund," a transfer in the amount of $250,000 from the General Fund to start the fund, and matters related thereto. FOR POSSIBLE ACTION City Council heard the recommendation for the creation of the Compensated Absences Fund on April 28, 2026, and directed staff to move forward with fund creation. The creation of this fund will clearly designate funds for the compensated absences liability, resulting in more transparent reporting. JB May 12, 2026 City Council | Minutes Page 15 of 21 Ms. Baum said the proposed Compensated Absences Fund mirrored the prior discussion and that Staff believed $250,000 in initial funding would be sufficient. Mayor Keener said the fund would help protect the General Fund from a large one-time payout if several long-tenured employees retired or left in the same year with significant accrued leave balances. Ms. Baum confirmed the fund would continue to grow over time, likely to around $500,000, but said the City does not intend to fully fund the entire $3.4 million in total compensated absence liability. Mayor Keener asked whether accrued leave associated with a probationary employee who is dismissed before becoming eligible for a payout would instead remain in, or flow back into, the Compensated Absences Fund. Ms. Baum said employees do not receive vacation accrual payouts until they have been employed for six months, and that sick leave is only paid out upon retirement. Councilmember Stone asked whether the City’s leave-donation program would still be available and could employees continue donating leave time to help coworkers in need. Ms. Baum confirmed that employees may continue donating leave under the City’s leave-donation program in accordance with the Human Resources personnel policy. ** A motion was made by Councilmember Stone, seconded by Councilmember Lostra to approve Resolution No. 7-26, a resolution establishing the "Compensated Absences Fund," a transfer in the amount of $250,000 from the General Fund to start the fund. The motion passed unanimously. (5-0) VII. APPROPRIATION (CONTINUED) VII. A Review and possible approval and/or ratification of Warrants, Hand Cut Checks and matters related thereto. FOR POSSIBLE ACTION Ms. Baum corrected the warrants item, stating that the $29,339.75 Hand-Cut check was for Montrose Glass, not SkyWest Airlines, and requested that the prior motion be amended accordingly. Mayor Keener noted that the published payable sheet incorrectly listed the $29,339.75 Hand-Cut check as SkyWest Airlines and clarified that it should have been listed as Montrose Glass. Ms. Baum confirmed that the corrected Montrose Glass payment was the final payment for the Golf Course windows. ** A motion was made by Councilmember Puccinelli, seconded by Councilmember Morris to approve Hand-Cut check to Montrose Glass in the amount $29,339.75. May 12, 2026 City Council | Minutes Page 16 of 21  The motion passed unanimously. (5-0) XI. REPORTS XI.A. Mayor and City Council Mayor Keener reported participating in a National Prayer event, attending related community meetings, and planning to attend a Lander County Commission meeting regarding continued support for the Flight Alliance of Northeastern Nevada. Councilmember Puccinelli recognized Elko High School’s boys golf and baseball teams for advancing to state championships and expressed community pride in their accomplishments. Councilmember Stone commented on the recent student athletics trip, noted the positive community response, and said the experience reinforced the need for the proposed booster club track project. Mayor Keener praised the recent Jazz Fest program and recognized Chip’s solo performance of “What a Wonderful World.” Councilmember Stone thanked the Mayor and explained that “What a Wonderful World” had been a long-standing tradition associated with the Matys Brothers, who regularly ended their performances with that song. Councilmember Lostra reminded the public of the upcoming Meet the Candidates event on Thursday from 5:00 to 6:00 p.m. and invited attendees to stop by and meet the candidates. XI.B. City Manager Mayor Keener thanked Jan Baum for assuming additional responsibilities during Julie’s maternity leave and acknowledged her significant workload. Ms. Baum reported attending the County’s annual planning meeting with other local jurisdictions, said the group shared priorities, and noted the meeting was productive. She also said the City received a proposed PSA from Union Pacific for review and that Staff would return with it later and confirmed the final budget would be presented at the next meeting. XI.C. Assistant City Manager No Report XI.D. Utilities Director Mr. Kerr reported that residential meter installations were underway in the Mittry area, commercial meters were being installed in the downtown corridor, and work at Exit 298 remained in progress as staff continued addressing the remaining punch-list items. May 12, 2026 City Council | Minutes Page 17 of 21 Councilmember Morris shared that a water meter was installed at his home and complimented the crew for their work. XI.E. Public Works No report. XI.F. Airport Manager No report. XI.G. City Attorney Mayor Keener asked whether any significant concerns had emerged from the redlined Union Pacific document after an initial review. Dave Stanton, City Attorney, said he had not yet reviewed the red-lined Union Pacific document with Ms. Baum, but expected productive negotiations with Union Pacific and was encouraged by the company’s willingness to work with the City. Mayor Keener noted that one property, 735 West Idaho Street, had been identified even though it was not part of Subject Area A or B. He also observed that an address on VFW Drive was in the Subject Area. Mr. Stanton indicated that adjustments to the boundary might be necessary. He stated that he expected multiple revisions of the red-lined documents to be exchanged before the matter was finalized and expressed hope that the process would eventually be completed. XI.H. Fire Chief No report. XI.I. Police Chief Chief Ward reported that Officer Zak Hood would graduate from the academy on Thursday at 1 p.m. in Carson City and advised the public to remain alert to scam calls impersonating law enforcement or public safety officials in order to obtain money or personal information. Mayor Keener thanked Staff for following up on scam-related calls and requested an additional public safety announcement reminding residents to remain cautious and to use helmets when operating UTVs on City streets. Chief Ward agreed to issue an additional public safety announcement and urged residents to use caution around UTVs and motorcycles in Parks and on City streets. XI.J. City Clerk May 12, 2026 City Council | Minutes Page 18 of 21 Annette Robinson, City Clerk, reported that several hotels remained delinquent on transient lodging tax payments, and she indicated that tax liens would likely be pursued against Shilo Inn, Rodeway Inn, and Elkotel due to continued non-payment and lack of compliance. Mayor Keener remarked that the matter would make a worthwhile investigative report for the Elko Daily Free Press and expressed hope that the newspaper would bring greater public attention to the issue. XI.K. City Planner No report. XI.L. Development Manager XI.M. Financial Services Director XI.N. Parks and Recreation Director James Wiley, Parks and Recreation Director, reported that post-tension slab work and fence post installation for the Pickleball Court Rehabilitation Project were scheduled to proceed that week, and he stated that the project remained on track to meet the Fourth of July and Senior Olympics deadlines with additional resurfacing crews being deployed to accelerate completion. Mayor Keener asked whether the pumps at the Golf Course had been repaired. Mr. Wiley reported that the Golf Course pump system had been rebuilt and restored to functional operation, allowing the course to return to permanent water service, and he advised that a larger pump replacement project would be brought forward for bid authorization later in the year or early the following year. Councilmember Stone commended Staff for promoting the new summer recreation programs and noted that the offerings were receiving positive public attention. Mr. Wiley reported that seasonal Staff were assisting with summer programming, summer camps would begin the week after school ended, and free Saturday fitness classes at Angel Park were being offered to encourage public use of the outdoor fitness center. Councilmember Morris commended Staff for their work and stated that the Parks and Golf Course looked excellent. Mr. Wiley thanked the Council and stated that he would pass along the appreciation to Staff. Councilmember Lostra asked Staff to clarify how interested members of the public could apply for the Parks and Recreation and Golf Board vacancies. May 12, 2026 City Council | Minutes Page 19 of 21 Mr. Wiley stated that the City would advertise the vacancies through its website and social media, and he explained that interested applicants would be required to submit a letter of interest to the City Clerk for Council consideration. Councilmember Stone asked whether the cement work would be completed in time for Mine Expo and noted that he anticipated receiving questions about the project’s readiness. Mr. Wiley stated that, based on a recent meeting regarding the project, he did not anticipate the construction work would interfere with the event and expected conditions to remain safe and nonhazardous. Councilmember Stone noted that Mine Expo was expected to expand significantly, with 35 additional booths planned. Mr. Wiley stated that only the footprint of the courts itself would likely be caution-taped off. XI.O. Civil Engineer No report. XI.P. Human Resources Director Mayor asked whether board and advisory positions, such as the Golf Course Advisory Board, were ever included with the City’s job postings. Ms. Shurtz stated that board positions had not historically been included in the City’s job posting system because NeoGov was designed for employee applications, but she indicated that Staff could explore whether the process might be adapted to accommodate letters of interest for board vacancies. XII. COMMENTS BY THE GENERAL PUBLIC Pursuant to N.R.S. 241, this time is devoted to comments by the public, if any, and discussion of those comments. No action may be taken upon a matter raised under this item on the agenda until the matter itself has been specifically included on a successive agenda and identified as an item for possible action. ACTION WILL NOT BE TAKEN Mayor Keener thanked Sarah Khouangrasvongsay for taking on additional responsibilities during her coworker’s maternity leave. Mayor Keener acknowledged the candidates in attendance and welcomed their participation. Councilmember Stone shared that the Elko High School band director position had become vacant and encouraged the community to help spread the word in support of maintaining a strong arts program in the schools. May 12, 2026 City Council | Minutes Page 20 of 21  Scott Gavorsky, 878 2nd Street, expressed support for the fund resolutions but raised concern about the creation of committed fund reserves, urging the Council and Staff to ensure clear oversight, transparency, and procedures for reviewing or closing such funds when appropriate. Mayor Keener acknowledged an oversight in failing to call for public comment on those items and then invited any additional public comment. Lynne Hoffman, Elko, stated that her household was scheduled to receive a water meter soon and noted that Lee would have been pleased, as he had long supported water meters. There being no further business, Mayor Reece Keener adjourned the meeting 5:38 p.m.. Mayor Reece Keener Annette Robinson, City Clerk May 12, 2026 City Council | Minutes Page 21 of 21