Agendas & Minutes


June 14, 2005

PAHRUMP TOWN BOARD MEETING
BOB RUUD COMMUNITY CENTER
150 NORTH HIGHWAY 160
TUESDAY – 7:00 P.M.
JUNE 14, 2005

 


Agenda

1.    Call to order
    
A.    Pledge of allegiance
B.    Welcome

2.    Discussion, action and decision regarding agenda items.  

3.    Announcements.

4.    Recognition/Awards.  Paula Glidden/Laurayne Murray

5.    Public Comment. Action may not be taken on matters considered during this period until specifically included on an agenda as an action item (NRS241.020(2)(C)(3).

6.    Discussion, action and decision regarding $1,000 grant request for the Miss Pahrump Pageant.  Debra Bowman, Pamela Larmouth/Paul Willis

7.    Third and final reading and discussion, action and decision of an amendment to Pahrump Town Ordinance #3- Brothel Ordinance.  Town Attorney/Ed Bishop/Paul Willis  

8.    Discussion, action and decision concerning approval of 2005/06 Pool/Pact insurance renewal – Resolution 2005-23 and Interlocal Agreement. Carol Ingalls/Town Manager

9.    Presentation by U.S. MetroNets, and discussion, action and decision concerning fiber optic facilities and no cost assessment.  Scott Crowley/Town Manager

10.    Presentation and discussion, action and decision concerning a recommendation to the Nye County Board of Commissioners regarding Town related issues in the proposed Development Agreement for Concordia Pleasant Valley, LLC; and CHI of Nevada, Inc.. Jon Field/ Town Manager





11.    Presentation and discussion, action and decision concerning a recommendation to the Nye County Board of Commissioners regarding Town related issues in the proposed Development Agreement for Adaven Management, Inc.; GVT Investments, LLC; Sagewind SN Holdings, LTD; Pahrump 230, LLC; Regency Place, LLC; Ideal Staple Co.; Insight Holdings, LLC; Hafen Family LTD; HHH Investments, LLC.. Mark Dunford/Town Manager

12.    Discussion, action and decision concerning a scope of services agreement with Daniel C. McArthur, LTD, to conduct a Room Tax audit – Resolution 2005-24. Town Manager

13.    Discussion, action and decision concerning authorization to let bids for Pahrump Nye County Fairgrounds well and pump. Lou Holveck/Town Manager

14.    Discussion, action and decision requesting the County release the “Reverter Clause” in the Chief Tecopa Cemetery deed – Resolution 2005-25. Town Manager

15.    Discussion, action and decision regarding July 4th event booth sponsorship.  Jeanna Howard/Laurayne Murray

16.    Discussion, action and decision concerning authorization to purchase 30 picnic tables at a cost not to exceed $750.00 each. Matt Luis/Town Manager

17.    Discussion, action and decision concerning authorization to let bids for 12 bleacher sections for ball parks. Matt Luis/ Town Manager

18.    Discussion, action and decision concerning acquisition of a 1952 M47 ¾ ton Jeep from Nye County for use by the Public Lands Advisory Board Resolution 2005-26. Jim Petell/Town Manager

19.    Discussion, action and decision regarding approval for new alternate members of the Arena Advisory Board.  Laurayne Murray

20.    Discussion, action and decision regarding Parks/Recreation Advisory Board membership changes - resignation of Dury Thompson, appointment of Maureen Reicher. Town Manager

21.    Discussion, action and decision regarding dissolution of the PVFRS Advisory Board. Paul Willis

22.    Discussion, action and decision regarding sponsorship of Fire Chief and (1) Town Board Member to attend the annual Fire Based-EMS conference in Las Vegas.  Laurayne Murray

23.    Discussion, action and decision regarding request for Nye County BOCC to impose impact fees immediately as a condition of any developer agreement – Resolution 2005-27.  Paul Willis/Town Manager

24.    Discussion, action and decision regarding request to Nye County BOCC for Town of Pahrump to acquire Treasurer Trust properties – Resolution 2005-28.  Town Manager

25.    Town Manager’s Report

26.    Advisory Board Reports

27.    Consent Agenda Items:

A.    Action – approval of Town vouchers
B.    Action – approval of Special Town Board meeting minutes of  May 19, 2005
C.    Action – approval of Town Board meeting minutes of May 24, 2005.
D.    Action – approval of ambulance write offs for April and May 2005

28.    Discussion, action and decision regarding closure of meeting pursuant to NRS241.030(2) and 288.220(1-4) for purposes of conferring with the Town’s management representatives regarding labor negotiations, issues and other personnel matters.  Town Manager

29.    Closed session, pursuant to NRS 288.220(4) for purposes of conferring with the Town’s management representatives regarding labor negotiations, issues and other personnel matters.  Town Manager

30.    Discussion, action and decision regarding matters discussed in closed session – Resolution 2005-29.  Town Manager

31.    Adjournment.

POSTED IN THE PAHRUMP TOWN OFFICE, COMMUNITY CENTER, COUNTY COMPLEX, FLOYD’S ACE HARDWARE AND CHAMBER OF COMMERCE

SPECIAL NOTE: Any member of the public who is disabled and requires accommodations or assistance at this meeting is requested to notify the Pahrump Town Office in writing, or call 775-727-5107 prior to the meeting.  Assisted listening devices are available at Town Board meetings upon request.

 


Minutes

PRESENT:                        ABSENT:
Richard Billman                    Ed Bishop (was there via teleconference  
Laurayne Murray                                                       for the first part of the     meeting)
Paul Willis                                                                                            
Ron Johnson

CALL TO ORDER

Chairman Richard Billman called the meeting to order and led in the Pledge of Allegiance.  Mr. Billman welcomed all those in attendance.

DISCUSSION, ACTION AND DECISION REGARDING AGENDA ITEMS  

Chairman Billman:  We will move forward with discussion, action and decision regarding agenda items.  We are removing item # 10, and moving item # 21 to the 9th position.  Item # 3. Announcements.  Mrs. Murray.

ANNOUNCEMENTS

Laurayne Murray announced the following:

-The Fall Festival Parade Committee meets in the Town Annex on Wednesday, June 15th

-The Regional Planning Commissioners meeting will be held at the Community Center on Wednesday, June 15th at 6:00pm

-Fairgrounds Advisory Board will be meeting at the Community Center on Wednesday, June 15th in room A at 7:00pm

-Nye County Safety Committee meeting will be held at the Community Center in room B on Thursday, June 16th from 9:00 to 12:00pm

-Fall Festival Arts and Crafts Committee will be meeting in the Town Annex on Thursday, June 16th at 1:00pm

-There will be a commissioner’s workshop with Cox and Trummell at the Community Center on Saturday, June 18th at 10:00am

-The Regional Transportation Committee Meeting will be held at the Community Center in Room A on Monday, June 20th at 6:00pm

-Nye County Federal Impact Meeting will be held at the Community Center in Room B on Monday, June 20th at 6:00pm

-Nye County Commissioners meeting will be held in the Community Center on Tuesday, June 21st at 8:30am

-Economic Development Advisory Board will be held at the Community Center in Room B on Thursday, June 23rd at 7:00pm

-Fall Festival Rodeo Committee will be meeting at the Town Annex on Thursday, June 23rd at 7:00pm

-Nye County Emergency Services will be at the Community Center on Saturday, June 25th at 10:00am  

-The Pahrump Town Board Meeting will be held at the Community Center on Tuesday, June 28th and 7:00pm

-Pahrump Regional Planning Commissioner Meeting will be held at the Community Center on Wednesday, June 29th at 6:00pm  

Chairman Billman:  Thank you very much.  Public comment is our next agenda item, you many not…  Oh you have announcements?

Sally Devlin:  Yes I do, thank you very much Mr. Chairman, Staff and most welcome Pahrumpians.  I am Sally Devlin and I want to thank everybody for coming to our Mrs. Senior Pahrump Pageant.  It was a great success as everybody knows it was a charity fund raiser and we are looking forward to next year and we hope you will join with us again.  Anybody 60 and over who is an idiot like me who wants to learn to dance, anybody who wants to learn to dance and have a wonderful time with a wonderful bunch of people under BJ Kettering and Mona’s direction will have a wonderful time and you can sign up now.  The other announcements that I have, our Toastmasters meets tomorrow at 2600 Charleston Park at our GM Motors boardroom and everybody is invited if you wish to speak with fluency and alacrity come to Toastmasters and learn how to express yourselves.  It is at 6:30pm.  The very most important one is the Arts Council and we are going to have Saturday at 1pm our elections for officers and this is held at the Library in the boardroom.  On Sunday there will be the Opera Guild at the High School at 2pm.  So bring your fathers so they can get opera-ized.  It is donations and afterwards there will be a reception for the Nevada Opera Group up at the Winery and that’s $5.  So welcome to all these things, happy Fathers Day and again thank you and come to Toastmasters.

Chairman Billman:  Thank you Sally, are there any other announcements?  

Art Jones:  My name is Art Jones, disabled Naval Veteran.  A couple of months ago I was at the podium asking for help from the Town to help get passed senate bill 50. I want you to know right now, tonight thank you very much, we did get the bill passed.  Carson City okayed the…the bill went through so we will have funding for the service office of Pahrump that will take care of all Nye County for the Veterans and the sponsors of Veterans.  So we couldn’t have done it without the help of the Town.  Thank you again.

Chairman Billman:  Thanks, Art.  

Candice Trummell:  Candice Trummell, Chairman of the Nye County Commission.  I have a couple of announcements.  Art actually covered one of them; we did succeed in getting a bill passed to get $300,000 to fund an office of coordinator of Veteran services.  There will be an office located in Tonopah and one in Pahrump.  It will service Nye and Esmeralda Counties and we are hoping eventually to make it self supportive through a major and minor donor program for money and things like that.  Also I know that it has been mentioned that there is going to be a commissioner's workshop.  We do not have a written legal opinion yet as to whether or not we can do that without violating the open meeting laws so those have ceased, but Cookie I think left it on there in case we got an opinion just to save the room so I wanted to make that clear.  And also on the 22nd of June at 6:00pm there will be an agendized commissioner's workshop to discuss…. Oh two commissioners only to discuss any of the concerns you might have with the County and any of our issues so those are all of my announcements and I think this is at 6pm.

Laurayne Murray:  And that will be here also Candice?

Candice Trummell:  Yes, here.  Thank you.

Chairman Billman:  Thanks, Candice.  

Paul Willis:  And I would like to add that they had two exceptional lobbyists working for them for that legislation.  

Chairman Billman:  Any other announcements?  Moving along to item # 4, recognition awards, Paula.   

RECOGNITION/AWARDS- PAULA GLIDDEN/LAURAYNE MURRAY

Paula Glidden:  Paula Glidden current chair of the Pahrump Valley Fire and Rescue Advisory Board.  Good Evening Board, Chair, Staff and Public.  I am very pleased to be here this evening representing the PVFRS Advisory Board.  Our board has received and reviewed and recognized some of the shortfalls that the Fire and Rescue Department are faced with everyday.  We are all aware after the various studies and task force objective views, there are limitations that the department deals with daily.  This past year there were a total of 6,802 calls that they responded to.  This represented an increase of approximately 20% over the year before.  This year also they face increased calls and of course this is likely to continue.  
Now to my point, we feel that the townspeople would often times like to say thank you to the Fire and Rescue workers.  We recently celebrated EMT week with this Town Board set forth the proclamation in honor of their efforts.  At that time I explained we would be back to further acknowledge and reward them for their efforts.  So I have my little red bag.  This gift bag, which is appropriately red in color, is given by Saddle West.  Inside it holds some goodies for all the Fire and Rescue employees and volunteers.  Each of them in the department will receive one.

It represents more though.  Several businesses are stepping up also to say thank you and give back to these individuals and department as a whole.  Just a few are of course the Nugget and Smiths, Dominos, Wal Mart, Subway, Port of Subs, pretty much all the bigger businesses in Town.  They are very happy and generously accepted this duty.  They will be supplying food to the department most of next week.  So we will be at least feeding these people and getting them on their feet.  Therefore we wish once again to thank Chief Lewis and his department and show our appreciation for a job well done by Pahrump Firefighters.  Thank you.  So as it stands next week, as I said we are going to be bringing them lunch everyday.  They don’t even know this.  We are going to be bringing them food everyday from different areas.  We are going to be supplying them with gifts and we are going to try to get them some equipment too.  So that’s our device, any contributions, we’ll take them.  Thank you.

Chairman Billman:  Thank you Paula. Item # 5 public comment, action may not be taken on matters considered during this period until specifically included on an agenda item.  So nothing on tonight’s agenda as far as public comment, but you can comment on anything else.  Is there any public comment?       

PUBLIC COMMENT. ACTION MAY NOT BE TAKEN ON MATTERS CONSIDERED DURING THIS PERIOD UNTIL SPECIFICALLY INCLUDED ON AN AGENDA AS AN ACTION ITEM (NRS241.020(2)(C)(3)

None

DISCUSSION, ACTION AND DECISION REGARDING $1,000 GRANT REQUEST FOR THE MISS PAHRUMP PAGEANT- DEBRA BOWMAN, PAMELA LARMOUTH/PAUL WILLIS

Chairman Billman:  Item # 6, discussion, action and decision regarding $1,000 grand request for the Miss Pahrump Pageant.  Debra Bowman.  

Paul Willis:  Mr. Chairman I would like to approve that $1,000 request for the Miss Pahrump Pageant from the Tourism account.

Laurayne Murray: Second.

Chairman Billman:  Moved and seconded.  Is there any discussion for the Board?

Paul Willis:  I was under the impression it was approved by the Tourism Board so, and we have done it in years past.  
Chairman Billman:  If there is no further discussion then I will call for the vote.  All those in favor of the motion signify by saying aye.  Any opposed?  No.  Motion carries 5-0.

Item # 7, and before we get into this I am going to ask you to please speak with your minds and try and remember that we are all friends and neighbors here.  Also the Chief has asked me to point out to you that our exits are the front of the building back here, and there’s one straight back.  Just in case so that there’s… everybody knows where the exits are.  I am looking at one right now.  

THIRD AND FINAL READING AND DISCUSSION, ACTION AND DECISION OF AN AMENDMENT TO PAHRUMP TOWN ORDINANCE #3- BROTHEL ORDINANCE- TOWN ATTORNEY/ED BISHOP/PAUL WILLIS  

Chairman Billman:  Item # 7, third and final reading and discussion, action and decision of an amendment to Pahrump Town Ordinance # 3.

Laurayne Murray:  Amendment to Pahrump Town Ordinance 3, an ordinance to prohibit and suppress houses of prostitution in any place, room, home, automobile, mobile home, house trailer, or any other structure or place within the Town of Pahrump, Nye County, Nevada; prohibiting the practice of prostitution at or in any place within the said Town of Pahrump; and providing a penalty for the violation thereof.  Mr. Chairman.

Chairman Billman:  Thank you.  

Laurayne Murray:  I would like to make a motion to deny the amendment to PTO 3.  

Chairman Billman:  Please, please sit down we don’t have a large enough room here to get too excited about.  Motion is on the floor, is there a second?

Ron Johnson:  I’ll second the motion.  

Chairman Billman:  It is moved and seconded to deny the motion, to deny the amendment.

Paul Willis:  Can you repeat the motion?

Chairman Billman:  To deny the amendment.

Laurayne Murray:  To deny the amendment, proposed amendment to PTO 3.

Chairman Billman:  I’m sorry Cristina.

Christina Hinds:  Mr. Chairman, I just wanted to state for the record that Mr. Ed Bishop, Town Board Member Bishop is available telephonically for this meeting.  I didn’t know if that was stated already.

Chairman Billman:  No it wasn’t, sorry.  

Paul Willis:  Is it open for discussion?

Chairman Billman:  Yes it is.  

Paul Willis:  Mr. Chairman, I have some remarks I would like to read into the record.  I have provided a copy of these remarks to both the Town Staff and the press.  The Town of Pahrump has been having problems paying for all of the services it wishes to provide to its residents.  For the last five years I have heard nothing but requests for more money for the Fire Department.  Of late, I have heard complaints for more money to pay for infrastructure, most of which will be needed for the massive new developments that are coming to our Town.

I have had constituents complain about the developers paying their fair share, so I have been working on impact fees and development agreements.  Yet, while I work on them, the Fire Department still has to respond to the end of Homestead, to the brothels, where no one is paying their fair share, or will be in the future.  On Sheri’s property a RV Park has been approved, and they have requested that they be allowed to build 714 homes.  The Town will have to respond to any emergency calls, and there will be an increase in emergency calls when the RV Park is completed and the houses are approved.  I want the Town to collect the money it has due to it, to support the use of our emergency services and any parks we may find ourselves having to care for.  

A local businessman and developer, apparently due to an old feud between him and a brother owner, has taken it upon himself to spread a lot of misinformation to my constituents in this room.  He has spread a lot of misinformation regarding the actual revenue that can be realized if we pass the amendment to PTO 3, and misinformation particularly regarding me.

About the misinformation regarding me.  I do not work for Joe Richards and I have never worked for Joe Richards.  I find it unfortunate that some people are making this accusation based on the fact that this businessman has said so.  I find it unfortunate that these accusations have been made from the podium, on the phone and with faxes sent out all over Town.  I have my own personal beliefs, and have stated those beliefs publicly but that does not mean that I am being paid by anyone at all.

This businessman has made this issue about the brothel owner.  He has made the issue about sex-for-sale.  He has made the issue about bribery.  Yet, when I invited him to discuss the issue with me, the real issue, he refused.  The question people should be asking themselves is why.

The question of the revenue turned out to be easily answered.  When the businessman told all of you that the only revenue that would be realized $4,800 in property taxes, that was the truth, basically.  He left quite a bit out, however.  

I had an outside analysis done.  The brothel land is worth $4,800 in property taxes right now.  But Sheri’s RV Park has been cleared to begin construction.  They have also asked to be allowed to build 750 homes.  These homes will be high-end.  The Town could also charge the brothels $30,000 a piece for a Town Special License to operate.

When these two projects are completed, and with the brothels still located on the end of homestead, the amount of revenue that would come in with the property taxes, impact fees, and room tax vastly exceeds the amount of $4,800.  If we do not pass this amendment the Town could lose over 13 million dollars over the next ten years.

However, this businessman, for whatever reason, has convinced people that the removal of this ordinance will cause a proliferation of brothels throughout the Town, which is against state law.  He has convinced people that only this ordinance prevents prostitution in the streets.  If he really believes laws stop prostitution than he should spend some time in LasVegas.

However, he has convinced people of these things, indeed he has run an ad in the newspaper in which people, including a lot of children and some non-residents, signed on to.  Regardless of why you are here or whatever falsehoods you have been convinced of, you are now demanding that your voices be heard, and I do believe your voices should be heard.

With that said, I have a solution, one that should make my constituents happy.  My solution will guarantee you that a proliferation of legal brothels and prostitution will not happen due to this ordinance being changed; and I believe it will show my constituents that the businessman’s hateful accusations are false.  

I am directing the staff to place on the next Town Board agenda a resolution to the Board of Nye County Commissioners that they place a ballot question abolishing brothels within the entire Pahrump Regional Planning District in the next election; and that they enact a moratorium on the new Brothels or the relocation of any brothel within the Pahrump Regional Planning District until the results of that election.

I move to table the vote on the amendment to PTO # 3 until this moratorium is in place.

Chairman Billman:  Order.  Is there any more comment from the board?  

Laurayne Murray:  Yes Mr. Chairman, I would prefer that we take action on this item tonight and get it over and done with.  I understand that there is a consideration of financial statement as far as the Town is concerned we are looking for as many possible sources as we can for revenue.  It has been discussed that if the housing development is approved by the Regional Planning Commission and the Commissioners which it has not been yet, that we could consider annexing that to get the revenue and still not bring the brothels into Town.  However the comments that I have received from the public and I think all of us have received numerous telephone calls, letters, e-mails, petitions, and so on.  I know that $13,000,000 sounds like a lot of money but what I’ve been told is that it doesn’t matter what the money is, we don’t want to change the ordinance.  So I have to listen to that comment.  The love of money is the root of all evil.  But to be more factual, I feel that the action of relinquishing the control from the Town to the County on this item in particular and most items actually we have been battling since I have been on this board, and Paul you have also.  To try to give more credence to the Town of Pahrump to have us be consulted first before the County Commissioners take action on items effecting Pahrump, that they include us in our planning and decisions.  We have been asking them and proposing them to give us full authority over many of the things that we should have authority over and it just seems like a change of, a leopard changing his spots to all of the sudden say on this particular issue of brothels we want to turn it over to them.  The second thing is that I think that there are other laws and ordinances that are in place and you have mentioned several of them, they are mentioned in the agenda item and I have reviewed several of those and I have actually been involved in the master plan and the zoning from a citizen stand point and being on the Regional Planning Commission.  PTO 3 is a clear iron clad ordinance controlling prostitution in the Town of Pahrump.  It’s been tested in the courts and it’s a safety that we know is there.  My concern is that if we start messing with it, that we don’t know what we could end up with in the future.  The Nye County code 9.20, I have a copy of it, I don’t know if you have read it.  It has a lot of risks in there in my opinion.  I don’t know that it has been challenged in court, it may be any day, and then who knows what could happen.  It’s also something that again can be revised just like this ordinance can be revised.  That ordinance can by any commission either sitting now or in the future.  So that concerns me.  There is also an ordinance which is being challenged in court, which is the sexual oriented business ordinance and I have been told by several people including commissioners that that ordinance does not pertain to brothels, but knowing how lawyers can be, let me just read you one definition that’s in the sexually oriented business ordinance.  It is called sexual encounter centers, which means a business that one of it’s principle business purposes is item B, activities between male and female persons, and or persons of the same sex, when one or the other persons is in a state of nudity or semi nude.  Sounds like something that could go on at a brothel to me.  So challenges on both of these could be costly to the tax payers not to mention that it leaves us less protected.  I hate analogies but I use it like going out in the bright sun shine and you have the choice of using an SPF 45, which this ordinance gives us or risking it with an SPF 2, which getting rid of it leaves us very vulnerable.  We also have the master plan and zoning.  The master plan does indicate a particular area for brothels, there are, have been and continue to be challenges about defining what that actually means for the property which is why the potential of a housing development next to the brothels.  During the time that we have had the master plan and the zoning ordinances, you might want to take a look at how many times the master plan has been changed by the RPC and the Commissioners and how many times there have been zoning requests that have been passed that are non-conforming with that program.  So again I think that the level of protection is thin, but those are all just factual things and that’s boring but for me what is overwhelming is that I took an oath of office.  One of the items that I took in there, was to represent the morals of the Community that word is in the oath that we took when we were elected and or if not elected by the people, appointed and I think that the outcry of the community is pretty evident from everything that I have seen and I don’t believe that we need to table it, or postpone it or drag it on or make any other attempt.  If you choose to go ahead with outlawing brothels in the entire county that’s fine, but we might as well leave this one now, get it over with, deny the amendment and leave it on the books the way it is.  

Chairman Billman:  Thank you Mrs. Murray.  Are there any other further comments from the board or…

Paul Willis:  Yes there is Mr. Chairman.  Of course I disagree, you know this is a… we can turn our head and pretend they are not there, but they are there.  Here is your opportunity to get them on the ballot and decide once and for all whether they belong here.  That property belongs in the Town for our tax payers.  I am confused, do you think it’s a bad thing but you don’t want it on the ballot to…

Laurayne Murray:  We can vote to deny this and still have that action later.  This won’t be tabled and put under the cover until it gets forgotten.  

Paul Willis:  Mr. Chairman doesn’t a motion to table supersede the other motion?

Chairman Billman:  Is there any comment?

Cristina Hinds:  The first motion that was made is the motion that is on the floor right now, which was Laurayne’s motion.  

Chairman Billman:  Is there any comment from the public?  Please I ask you to state your name, keep it brief.  

Efren Cota:  My name is Efren Cota and I live at 5350 Grain Mill Rd. here in Pahrump.  I am speaking for a group of residents from the Artesia and Cottonwood development.  We are vigorously opposed to the amendment before this Board today.  

Chairman Billman:  Please, if you agree with him, just shake your heads.  It takes too long; I’d like to get this through this evening.

Efren Cota:  Let me say from the onset, that our group has nothing against brothels, where they are today and that’s where we want to keep them, outside the town boundaries.  The problem that we have with allowing brothels in the Town boundaries is that it very negatively will impact the value of our property and that’s if you have a large home or a doublewide or just a plain lot.  It will impact the values.  Also it will do nothing to attract businesses that will create jobs in the Town of Pahrump, and it will keep families from coming here.  Now, I would like to ask the group that I am speaking for tonight to please stand and raise your hand.  And I would also like to invite others in the audience who are opposed to the amendment to stand and raise their hand.  Thank you very much; it looks pretty unanimous to me.  I would like to remind Mr. Willis that the issue tonight is not taxes and it’s not zoning, and it’s not impact fees.  It’s regarding the amendment before you today, whether to change the ordinance.  We do not want the ordinance to be changed or amended.  We want to vote tonight.  We don’t want it tabled, we don’t want it… we don’t want to do anything but vote on it.  Let’s get it over with.  Thank you.  I would also like to present to this Board just a small list of people we were able to get signatures from.  Please listen to your constituency.  All of them…and vote accordingly.  Thank you.   

Chairman Billman:  Thank you sir.

Shirley Trummell:  I am Shirley Trummell and I have it typed out so it will be brief Mr. Billman.  

Chairman Billman:  Thank you.

Shirley Trummell:  I would like the Town Board to consider some alternatives to this decision, and you may already be deciding that tonight.  Mr. Willis would have you believe that his only interest is due to the homes moving in by Sheri’s Ranch and the cost to the Town to provide service, however, the housing subdivision has not even been approved yet.  Rather than changing the ordinance, why not wait and see if there is a need first and if so, the Town could go before the commissioners and ask for, if they are not already going to, some of the impact fees.  Ask that the County Commissioners grant them a portion since they will be in the service area.  Why would we not go that route first?  Why, if the Town Board feels the majority of the public is in favor of this proposal, would they not put this issue on the ballot just like the incorporation issue has been placed.  Could it be because Mr. Willis and Mr. Bishop know that this is not what the majority want, but rather what they desire for whatever personal reason they have.

As has been stated on numerous occasions, Mr. Willis is close to Mr. Richards and there has been expressed concern that if this ordinance isn’t abolished that Mr. Richards will turn his business on Highway 160 and Homestead into a brothel.  Some may tell you that that can’t be done because the Nye County Ordinance states brothels cannot be within 300 yards of a road, however, those ordinances, as this one can be changed also and just with a vote of three residents of Nye County just like this ordinance can be changed with three residents of Pahrump.  The other consideration is that this issue goes beyond Mr. Richards.  Suppose his only motive is to put the brothel across the street from Sheri’s and the Chicken Ranch which he has been trying unsuccessfully to do for years, that doesn’t stop others, people we don’t even know exist from coming into this Town and opening up brothels and the Nye County ordinance could be changed.  And you know that in today’s society, that people could be helped to be elected to certain positions in order to further other people's desires.

When this Board discusses this issue later on tonight, I would like to hear why the brothel issue is so important rather than talking about bringing in the college, which we have talked about.  But the brothels seem to be more important.  Yes, brothels are a legal business in part of this State, but that doesn’t make them the businesses that we want to have in our community.  Would we say since it is a legitimate business, we should have the prostitutes and there fellow gentlemen go to the High School for career day.

I urge this Board to consider the future and look to the desires of the majority not to look to your own personal desires and or rewards.  And to the public that is gathered here tonight, I would ask that if any Board Member that votes for this that we really consider recalling them because in the future their feelings and their thoughts are already known.  And if the vote should fail tonight 3-2 it doesn’t…

Laurayne Murray:  It’s time.

Shirley Trummell:  It doesn’t mean that in the future there won’t be a third vote for it.   
I would also like to say I have personally known Mr. Bishop and Mr. Willis for a long time and I have considered them people that I like, but I am very disappointed in you Mr. Willis and in Mr. Bishop that you would bring this before us and Mr. Willis you said there are a lot of people that are in favor of your proposal as far as bringing the…

Laurayne Murray:  Times up.

Shirley Trummell: But where are they tonight?  Thank you very much.

Laurayne Murray:  Shirley, Shirley would it be possible for you to give the clerk a copy of that so that she can have it?  Thanks.

Shane McMurdo:  Hello my name is Shane McMurdo and I, like all other kids in this Town go to school.  And if you legalize brothels, these can be next to schools and I have a word for parents, grandparents, uncles, aunts.  Do you want your relatives, your little kids going to school seeing this stuff on their way to school, to the grocery store, to church?  If they’re anywhere, some people can get disappointed because they are not satisfied and start shooting.  And don’t say it can’t happen because it has before in Crystal.  If you care about your children you don’t want them seeing this stuff.  Thank you.

Chairman Billman:  Please, no more clapping, please.  Thank you.  Please, I want to get through this and you take up as much time clapping as the speaker does.  Go ahead sir.

Terran Stavies:  My name is Terran Stavies I am a resident of Pahrump.  I am looking at Mr. Willis and I am wondering what kind of sick mentality there is behind the look on his face.  It’s not a very complacent look.  He doesn’t look very sympathetic towards the public in this town, and when he looks at me like that I wonder what his standards and morality are.

Paul Willis:  Do you want to know.  I have lived here since ‘92.  

Terran Stavies:  That’s not the issue.

Paul Willis:  Well that’s okay, I disagree with you.  It’s a legal business sure, but I think the taxes…you want to get emotion cranked up into it, the taxes for it.  Well I don’t want to hear people say they want money for the Fire Department and money for this stuff when this ordinance protects and this amendment protects it just as good as…

Chairman Billman:  One thing I will explain, I don’t want to get a dialog going between the audience and any board member.  So make your statement sir and Mr. Willis…

Terran Stavies:  I am sorry Mr. Billman I didn’t instigate this gentleman to speak, but as Mr. Shakespeare quoted it very well, me thinkest thou protesteth too much.  Also, this issue as I said, about the…you were talking previously about all these different things for generating funds.  Perhaps you are not looking at the whole picture when you do that.  All these Towns throughout the United States and cities, they all seem to get along very well or at least at a reasonable pace without having to resort to prostitution.  Prostitution is a dying thing; it’s not a living thing.  And you can go to Europe and it’s the same thing over there where the old business was generated back in the biblical days.  As you say it is the oldest business in the world, but it is dying for the same reason the morality has taken over, through education.  If you don’t education people then morality will decease.  I think that’s about all that I have to say.

Chairman Billman:  Okay, thank you sir.  Next please.

Paul Willis:  Mr. Billman, can I make a statement?  Regardless of whether it passes or not I still intend on putting…directing the staff to send it to the commissioners to ask to put it on the ballot.  

Chairman Billman:  Okay.

Carle England:  My name is pastor Carle England, Choice Hills Baptist Church.  I have lived in this community for nearly 4 years now and I have tried everyday of my life since I have been here to make it one that people would be honored to live here.  When I speak to people outside of our community I hear of one stigma.  That’s where the brothels are.  I would really like to see that changed.  This is a place that I believe you can raise your children.  I am raising two young men here, and I don’t want to be a father that had a seven year old that saw a castle built that thought it was a miniature golf course, and explain why the pictures are on there.  That’s not the education, that’s not the program we need for our children.  We need to build more things for our kids.  The money that we are speaking about and the love of the money and the things of that… the property value.  Listen, you can take my property and cut it in half, as long as you give my family a moral place that they can live.  A park that we can go to that’s safe, these are the things that drew us to Pahrump, and as far as making this a vote in the future I would look forward to voting on the ballot of this to be… but I want this to be done tonight so that we can take care of this business now.  

Chairman Billman:  Thank you.

Keith Markly:  My name is Keith Markly and I just want to stand here and express, first of all, I do want to express appreciation Mr. Willis, to your state of concern about just the finances of the Town and I know that everybody appreciates that aspect and I also want to encourage you to go ahead with what you just stated, that you would encourage the commissioners to put this issue on the ballot and let’s see what the people have to say.  I think those are important aspects of our Republic.  I just appreciate what Mrs. Murray said that she is remembering tonight especially, her oath to represent the people and I appreciate that and I just want to encourage you in that.  That’s also a very important aspect of our Republic.  I think that…I appreciate also Mrs. Murray, what you said about the other possibilities of raising the Town income, that there are other ways to do this that are a lot more appropriate and perhaps acceptable of the people.  So I just want to stand in the support of the idea of annexing the other areas out of the island that are perhaps very open for development and thereby bring in some resources to the town.  I just want to stand and support what you shared tonight and thank you for that.

Chairman Billman:  Thank you.

Robert Emerick:  Hello, my name is Robert Emerick. I am a citizen of Pahrump and I moved out here 11 years ago to raise my family here because I thought this was a nice quiet little town.  I wanted to get away from the atmosphere in LasVegas and I thought Pahrump would be a nice place to raise my family.  I am opposed to any adult businesses, I am opposed to strip clubs and brothels and I am opposed to changing this law.  Thank you.

Chairman Billman:  Thank you sir.

Kathryn Longhouser:  Hi, my name is Kathryn Longhouser. I have been here 24 years now.  I came here as an adult.  I think that putting a vote to the people of Pahrump to decide should be put on the ballot and I think the Board should send that to the County Commissioners, but we do need to vote this issue that everybody is so inflamed about.  It has split our Town, it has brought people, angry people here and we need a resolution to it.  I believe that we should put it on the ballot to vote it as the people of Pahrump.  Your voting is important, and everybody should be able to vote on this issue about brothels.

Chairman Billman:  Thank you very much.
   
Paula Glidden:  Paula Glidden again. Three quick things.  About a year ago I went up to a convention up in Elko and I ran into some town, at the time I was on the Town Board, and I ran into other Town Board members from other locations and I remember one lady coming up to me and saying, oh you’re from Pahrump, you’ve got the brothels there, and I said oh yeah.  She said what do you do with them?  I said, well we don’t do anything.  I said they’re there, they exist, we co-exist, there’s not a problem.  I really was in defense of them, and I do defend them.  I don’t think there is a problem.  I have nothing against the brothels, but I saw the terror in her eyes and I asked her, why do you ask?  She said, well where I come from we have them in our town, and they invade our Town.  The tourism trade, the businesses don’t want to be there.  It was real terror in her eyes, and I remember that, and I remember it to this day.  So that to me tells me that we don’t want them in our Town, where they’ll be if we allow this, and to have the possibility of this happening.  I do believe that there are constraints that can happen, but the possibility exists.  As Mrs. Murray pointed out, if the wheel isn’t fixed, Paul don’t, or isn’t broken don’t fix it.  We don’t have any problem with this.  People turned out tonight because there is a problem.  You can vote this and that’s fine and let the people speak, I have a feeling where it will go, but why even bring it up?  We were fine, we have co-existed for years like this, any of us that have been here anytime…number one.  Number two, if you are so concerned about this, the money issue for the Town then why is it that this Board, and you three gentlemen voted down at the very last meeting the tax levy possibility of a fire district going to the County?  When that was brought up it was turned down by you three.  That’s a question, why did we not go forward with that and least let the County decide it.  So that to me tells me, yeah we want money here but we only want this money from some places.  Okay, number three and number four, or number three you are talking about those numbers as if they really exist.  Those houses don’t exist there yet.  They may not, if they do, fine, all the better, let's go and talk at that point.  That’s a long distance 10 years.  What are we going to actually realize every year and is it worth it to this Town to put us through that?  Thank you.

Chairman Billman:  Thank you.

Cahlan Bowman:  My name is Cahlan Bowman, I have lived here all of my life.  The reason I am up here is because let’s not beat a dead horse.  We know what the people here want.  They want to vote.  I have grown up here, I went to High School here and I played sports.  Every time I went somewhere else they asked us where we were from.  We said Pahrump, we got made fun of.  We got poked fun at because we are from a Town with brothels.  They called our girls brothel sprouts, I don’t know if any of you have heard that.  They have, they have called your daughters this.  Let’s not beat a dead horse, let’s vote on this right now.  And if you want to send it to the people, Sir, go right ahead. I am sure they will vote accordingly, but let’s vote on it tonight.  Having brothels in our Town will overrun our Town and it will ruin it.  Hopefully, I hope to raise my family here, and I don’t want to raise them next to a brothel.  Thank you.

Chairman Billman:  Thank you.  I am just going to take four more comments so.  Yes I’m sorry.

Colleen McGregor:  Hi, my name is Colleen McGregor. I may have only lived here for a year, but the year that I have lived here I have noticed that most of the young men that I know plan on going to the brothels when they turn 21. And most of the girls that I know probably will grow up to be in the brothels.  And brothels are very well known for that.  I mean, there is… there might be some girls that will grow up and get into something and go into the brothels, and with brothels out of our Town then, therefore we won’t have that problem.  It’s concerning of the children and some of the adults, because you don’t want somebody going into a brothel and maybe getting a disease if a girl wasn’t checked out for it.  Thanks all I have to say.

Chairman Billman:  Okay, thank you very much.

Vernon Boots:  My name is Vernon Boots. I’m pastor to the South Valley Southern Baptist Church.  The church that is closest to the brothels.  I want you to know I have been around the world, a retired marine.  So I have been there, heard that, heard all the reasons why we need whatever you are trying to push through.  I would like to say that a year ago we had as many as 6 of those girls from down at the brothels attending church,  They were stopped.  Now, why were they stopped from going to church?  Well sometimes God has a way of working in lives and hearts and maybe the… bad for business.  You understand, now you are trying to give up a business.  The bible says that prostitution is not the oldest profession, it’s one of the oldest sins, and also we know that, we also find that we reap what we sow.  Is money so important that we are willing to sell our souls to the devil?  That we are willing to give up what Pahrump can be in the future, for now for a few bucks?  Thank you.

Norma Jean Opatik:  Hi, I am Norman Jean Opatik.  I have been a resident for the last three years.  We have successfully co-existed with the brothels where they are.  That’s not to say that they are wanted, but we have co-existed successfully.  PTO 3 has been tested in courts, it has held up.  We would like to see that it stays and remains intact, just the way it is.  We would like to see that done tonight.  The other thing is if you want open solicitation, let’s open solicitation to other more acceptable businesses.  I.E. the Home Depots, the Lowe’s, heaven knows that we need all of those.  You talk about generating income, that will do it.  It will employ and keep the Pahrump dollars here in Pahrump and not send it off to Las Vegas or wherever they have to go to get the goods that they need.  These would be more acceptable routes, I believe for most everybody here.  I don’t appreciate nor do I think any of us do, being threatened with our law enforcement, our fire department, or our ambulance service if we don’t allow this nonsense to go through.  We could generate revenue better in other ways, we will also generate and receive more revenue for the land that has been now developed in the last year, the lands that are going to be developed in the future years.  The revenue will come.  We don’t need to go and solicit it.  Don’t run our youth off, let them come, stay, live and grow up and raise their kids right here in Pahrump.  Thank you.

Chairman Billman:  Thank you very much.  Reverend Trummell, you have the last word.

Ron Trummell:  That’s unusual, I’m married.  My name is Ron Trummell and I just have a couple of observations.  Obviously I could wax eloquent for hours on this topic.  My position is well known about brothels in general.  But let me just say this.  I would ask the Board and all the citizens to consider how many United States communities have benefited economically by brothels being in there community?  I know of none.  Sometimes they have existed, but that doesn’t mean the community benefited from it.  If we want to entice good businesses, good corporations, and the families and the citizens that come along with that the last thing we need is to put brothels within our community.  Second thing and I’ll close.  We are often told you cannot legislate morality, I ask this Board not to try to legislate immorality.  

Chairman Billman:  Mind if I use that later?  Thank you.

Nancy Justice:  Hi, my name is Nancy Justice.  Four years ago my husband and I moved here from Las Vegas because we had been in Las Vegas for 30 years.  I have not a problem with the brothels where they are.  I suggest to all of you, that you do take a trip out there and talk to those ladies.  Have a quick talk with them.  Do you want your daughters and your granddaughters taking jobs out there?  The other thing for revenue, the one thing that I wanted to do, first build a beautiful home and a beautiful community, we didn’t come here to change things, we came here to make it better.  I designed a building over a million dollars to put in this community.  You can’t get past the County Commissioners or the Town Board.  So where do you take your money.  You want taxes.  Let us put our money here.  

Chairman Billman:  I will call for the vote.  The motion is to not pass… to deny the amendment.  All those in favor of denying the amendment signify by saying aye.  Excuse me just a moment.  

Paul Willis, Ed Bishop:  Nay

Chairman Billman, Laurayne Murray, Ron Johnson:  Aye

Chairman Billman:  Motion carries 3-2.  I want to thank you all for coming and I want to thank you all for speaking this evening.  I am going to break for 10 minutes, to allow those people who want to leave to go ahead.  Thank you very much.    

DISCUSSION, ACTION AND DECISION CONCERNING APPROVAL OF 2005/06 POOL/PACT INSURANCE RENEWAL – RESOLUTION 2005-23 AND INTERLOCAL AGREEMENT- CAROL INGALLS/TOWN MANAGER
Chairman Billman:  I am going to reconvene this meeting.  Thank you for staying…those of you who have.  Item #8 discussion, action and decision concerning approval of 2005-06 pool pact insurance renewal resolution 2005-23.  Mr. Richards.

Dave Richards:  And the inter-local agreement as well.

Chairman Billman:  Right I knew you were going to add that so I left you a little something.

Dave Richards:  Alright in fact we have a replacement resolution for the Board to consider.  We don’t have a copy for you, the Pool-pact people brought the resolution with them tonight.  It accomplishes the same thing, however it doesn’t include the costs of the coverage which is included in the resolution that we prepared.  So I would recommend that you approve the resolution from Pool-pact which states that the Town Board Chairman is authorized to execute on the behalf of this public agency, the Nevada Public Agency insurance pool inter-local operation agreement, and a copy of that is attached to your backup, and the resolution that was approved last year is also attached.  It’s identical to this one with the exception of changing the dates.  I would recommend that you approve the resolution along with the provision that the costs for coverage is quoted at $91,137.  It included coverage for pollution legal liability in the amount of $8,900.  It’s our recommendation that you approve it.  If you have questions pool-pact people are here.  

Chairman Billman:  May I have a motion from the Board?

Ron Johnson:  I will make a motion that we approve the new pact, although I would like to see the information on it, maybe after the meeting.

Dave Richards:  You have the same resolution in your backup material, but it’s from last year.  We anticipated something like this might happen.  

Paul Willis:  I will second it.

Chairman Billman:  Moved and seconded.  Are there any questions of the gentlemen from pool-pact?

Dave Richards:  Ladies.

Chairman Billman:  Ladies, I’m sorry.  Is there an increase in…

Dave Richards:  In fact there is an 11% increase indicated overall in the base rate and that’s before the pollution control or the pollution legal liability coverage is added in.

Chairman Billman:  And how will that affect the costs?

Dave Richards:  Last year the total cost was $74,262, this year with the 11% increase it is $82,237 and then you have the additional $8,900 for the pollution liability.  

Chairman Billman:  Okay.  Alright thank you.  Any further questions from the Board?  Any questions from staff, comments?  Carrying on I would call for the question.  All those in favor of the resolution # 2005-23 please signify by saying aye.  

Laurayne Murray:  Is Ed still on the phone?  Oh Ed is no longer here, we need to announce that.  Ed Bishop is no longer in attendance.  

Chairman Billman:  Motion carries 4-0.

PRESENTATION BY U.S. METRONETS, AND DISCUSSION, ACTION AND DECISION CONCERNING FIBER OPTIC FACILITIES AND NO COST ASSESSMENT-  SCOTT CROWLEY/TOWN MANAGER

Chairman Billman:  Item #9 presentation by U.S. MetroNets, and discussion, action…

Laurayne Murray:  We were going to move 21 up to 9.

Chairman Billman:  I’ve got my thing so marked up.  You’re right, I did.

Scott Crowley:  Thank you very much for giving us a few minutes.  We were terribly flattered by the interest that this has generated.  Us being here, we were a bit surprised to tell you the truth to see the lines outside of the building and are now quite deflated that it wasn’t for us.  

Laurayne Murray:  You were all set to sell tickets huh?

Scott Crowley:  My name is Scott Crowley and I am a principal of U.S. MetroNets, we are Salt Lake City based and we are an integration firm that assists communities in implementing ultra broad band telecommunication networks.  I am accompanied here tonight by Scott Robertson who represents the investment backing firm of Louis and Young, and by Chuck Warren who also works with us in Salt Lake City and down here in Nevada.  Given the circumstances we are going to change our presentation a little bit and just touch some very high level issues and then hopefully have the opportunity to come back and present to this council again at some point in the future after we have had a chance to look at some of the details of this community.  But we are here tonight to discuss the possibility of assisting Pahrump in implementing a community owned ultra broad band network that would provide fiber optic connections to every resident and every business in the community.  We didn’t plan it this way but this proposal that we have, and we worked this with other communities and focus on rural and smaller communities in the United States, which are being passed by in terms of true broad band connectivity.  Our basic business model generates, and in the case of Pahrump we have done some preliminary estimates, could generate several million dollars a year in free cash flow to the community.  As I say we didn’t plan it this way, but this seems to be a topic of discussion tonight, and we feel like we have a very viable approach to generate that kind of revenue.  Doing something in a very positive way, and of course every community is interested in revenue generation.  We are sensitive to that, we have been at this for a long time and feel like in particular with Pahrump this fits a profile within our normal description of communities that we pursue that could be beneficial depending on what the facts end up being.  This can all be done without tax payer exposure.  Once again if the details of this community line up there is a model that we have, that we could implement without any tax payer exposure.  We are actually the initiators of a project in the Salt Lake City area called Utopia.  It is a $340,000,000 fiber to the home, fiber to the business network that is being built.  It is now funded as to phase one, which is an $85,000,000 funding.  We are experienced in this and feel like we are leading the pack in terms of being able to implement this with communities.  The full fiber connection model for a community such as this would substantially enhance your telecommunications services in this community, but it would do it in conjunction with or could do it in conjunction with to the benefit of private service provides.  Our model does not establish the city or the community or the town as the service provider, but rather as the infrastructure owner that allows private telephone services, private TV cable services, and private internet services to run across the community owned network for a tolling fee.  And that’s the way the network generates its revenue.  Technology has come together at this point in time in such a way that it’s financially viable, and that has not been the case.  This has really happened only in the last five or six years that this can be done with these types of economics, but it can be done and is being done now across the country and in different communities.  

There are many benefits we could lay out and we had a presentation that we were going to go through, but probably at another setting we’ll show you some of those details.  I do want to summarize maybe the top 5 benefits to a community that we will normally point out.  First of all economic development, that means jobs.  In many surveys 70-80% of businesses that are seeking new locations will inquire about broad band connectivity.  This is a very, very important issue now and communities that are not actively pursuing it are being left behind.  This would dramatically improve the competitiveness of a community and in the state of Nevada there are different initiatives going on but none of them we feel are to a stage where you could be a show case for a full fiber community.  The time would be now for Pahrump if that were… if this becomes otherwise attractive to the community.  Secondly education improvements.  Education has been leading the charge often in terms of broad band development in communities.  Education can be dramatically improved; we understand that there are discussions about expanding the secondary education here in this community and a college education.  Broad band connectivity is a very important component of that, and full fiber connectivity is the Cadillac of that service.  Number 3, quality of life is another very important issue.  Health care, entertainment choices and other telecommunication services are greatly enhanced.  As you can remember it wasn’t too many years ago we were really happy with a 64k computer that played pong.  The development of software is out stripping the ability for our telecommunications network to support it and we are now at a point where something needs to be done about it.  The rest of the world has moved forward.  The United States has dropped out of the top 20 in terms of per-capita fiber or broad band connectivity, which is really going to hurt our competitiveness.  The 4th thing is a non-tax revenue source of cash flow for a community.  If properly done, this private/public partnership can generate very significant revenues for communities, and again after a lot of work on this model we know, we feel like we know how to do that and have the tools ready to implement on a turn key basis.  And then finally, choice and competition.  Rural America is being left behind in what’s called the digital divide.  Large communities are getting the attention and focus and financing of the encompass telephone, TV cable providers.  That’s not said to be critical, that’s simply the economic fact of the situation.  Money is going where the density is highest.  We noticed that as we drove in today that Pahrump has some dense communities that are developing or sections of the community that are developing, others that are more dispersed.  This is not a classic target for a large telecommunications provider to come in and do full fiber connections.  It just doesn’t fit the profile.  Our model will facilitate choice by allowing multiple providers to run across the same fiber.  Fiber capacity allows for that type of dynamic.  So rather than simply having one TV cable provider, or one telephone service, or one internet provider you could have several options that could be switched back and forth depending upon the consumers’ choice.  So there are just… this is a summary of some of the benefits that we can go into great detail about and we’ll save that for another time, but tonight really what we would like to do is propose to the community, we have already had initial meetings and discussions to assess whether or not they even came within the radar screen of our profile and it certainly does.  We are here to suggest approval of a high level feasibility study that would not cost the community on the first round.  It would allow us to assess the viability of this type of a network and this type of a business model and community model for Pahrump.  So we would defer to Mr. Richards on this and to the council.

Chairman Billman:  Thank you.  Any questions from the Board?

Paul Willis:  Yes Mr. Chairman, I would like to make a motion to approve the no cost assessment and feasibility study concerning fiber optic facilities by U.S. MetroNets.

Chairman Billman:  Can we do that Cristina?  

Laurayne Murray:  Yeah, it’s on here as action and decision concerning fiber optic facilities and no cost assessment.  

Dave Richards:  That’s the way it was agendized.

Cristina Hinds:  It’s agendized properly.  

Chairman Billman:  Okay.  Is there a second?

Laurayne Murray:  Second.

Chairman Billman:  Moved and seconded, any further question or comment from the board?

Ron Johnson:  I have a question Mr. Chairman.  You mentioned first round kind of cost free relative to I think the research that has to do with feasibility relative to our, the uniqueness of our layout.  I think I heard you suggest that you know the more spread out things are the more problematical that probably comes to you with a thing like this.  What kind of cost might we be talking about in the second round?  

Scott Crowley:  Thank you, that’s a good question.  We…our revenue model as a company is based upon implementation fees.  Once we are able to fund and implement these networks that’s the point where we end up getting our main fee and then we have a long term partnership that shares in free cash flow generation.  So we, in some ways we act like a venture capital firm that will manage a fund where we have an incentive to generate more cash flow for the client.  That’s our basic model.  The fees that we would charge if the initial assessment proves to be positive would be more of a commitment demonstration on the part of the community.  We have a number of communities that would like to implement these networks.  Frankly most of them or many of them don’t fit the exact profile that we would like to pursue that would make the most sense.  And so that’s not a direct answer to your question, but we have charged fees of up to $200,000, $50,000, $10,000, it’s really more in this instance one of a commitment on the part of the community to proceed rather than to just kind of floating around and not putting stake in the ground and so we would have, we would provide you with the information once we were done.  I’m just guessing because of the size of the community it may be a Phase 2 discussion would be $25,000 to could be $10,000.  I don’t think it would be more than $30,000 or so, but that’s not our purpose.  We are not consultants, we

 


Backup

There is no backup posted for this meeting.