"Everyone is so cautious about offending anyone on the 10th floor. We're not gods on the 10th floor. Staff can't be afraid to give us information." LOIS TARKANIAN LAS VEGAS COUNCILWOMAN Brad Jerbic City attorney says all council members were aware of concerns before vote Bill Walters Developer wants to replace golf course with homes Richard Goecke Former city official probably cost city "millions of dollars," LV police say Steve Wolfson Councilman says his briefing on the history of the deal came late

Las Vegas Councilwoman Lois Tarkanian called the attorney general's report on the city's dealings with developer Bill Walters "devastating" and backed the report's portrayal of city staff members as fearful of providing negative information about a project if they think council members favor it.

Tarkanian, the only council member who had read the report by Tuesday, said she would be looking to reform the way information is presented to City Council members.

"Everyone is so cautious about offending anyone on the 10th floor. We're not gods on the 10th floor. Staff can't be afraid to give us information," she said, referring to the floor of City Hall where council members and Mayor Oscar Goodman have their offices.

"If they have the impression you don't want to hear it, they don't give it to you. My hope is that changes."

The report released Friday by Attorney General George Chanos examined the city's dealings with Walters, starting when he won the right to lease the land next to the city Water Pollution Control Facility in 1997.

He eventually bought the land from the city and built the Royal Links Golf Club. And in 2005, he asked the council to allow him to replace the course with homes by removing a deed restriction prohibiting residences on the property.

The council voted to lift the restriction, with Tarkanian casting the lone vote against the move.

The day after the vote, Las Vegas police released an investigative report that said former Public Works Director Richard Goecke probably committed felonies and probably cost the city "millions of dollars." Authorities also concluded that the statute of limitation had passed.

Councilman Steve Wolfson called for the vote to be brought back for consideration, and when Chanos announced his office would conduct an investigation, the council rescinded its earlier approval.

The report released Friday depicted City Hall as a place where Walters and others kept saying that the proposal to build homes was a "done deal," well before any information had been collected.

"It appears that there has been a consistent pattern of political and financial favoritism granted to Mr. Walters' business entities by the City of Las Vegas," the report said.

City Manager Doug Selby has defended the city, while also saying that changes would be made to improve communication and study the state's public purpose doctrine, which requires public assets to be used only for the public good.

Wolfson said Friday that he was troubled by the "flow of information" from staff to council members.

Wolfson said he was upset that he was not briefed on the history between Goecke and Walters until the evening before the council originally was set to hear the proposal. Deputy City Attorney John Redlein conducted that briefing.

Wolfson told investigators for the attorney general that when he asked Redlein why he was telling him the history of Goecke's relationship with Walters, Redlein said: "Because you are one of the ones we trust."

Redlein had a different recollection and told investigators that he told Wolfson he was briefing him on the history because he thought that he was "one of them who cared."

Redlein later was demoted by City Attorney Brad Jerbic.

Jerbic said in an interview Tuesday that his office was working on providing necessary history to staff members negotiating deals and council members preparing to vote.

Jerbic said all council members were aware of concerns he and his office had by the time they voted on Nov. 2. "By the time of the vote, they knew of every issue relating to the value of the property and every issue relating to the environmental concerns," he said.

Jerbic's concern was that no appraisal had been done on the land.

Initially, the item was on the July agenda to lift the deed restriction, though the city had no appraisal of the land's worth or a study of the effect of having houses so close to the sewer treatment plant.

A study later found that a consequence would be $28 million in additional odor controls that might have to be installed at the plant if the golf course were removed as a buffer.

"In hindsight, I wish we had appreciated just how few people were familiar with the entire history of the project," Jerbic said. "I wish we had put together a more comprehensive legal history and opinion, and let every staff member in the decision-making loop be aware of that."

Tarkanian said she would be watching for better communication but also said it was "no wonder" that staff members feel intimidated to come forward with concerns about projects that seem to have the blessing from elected officials.

Tarkanian pointed to Lori Wohletz, the city's former environmental manager, who resigned after her concerns about allowing Walters to replace the Royal Links Golf Club with homes were ignored.

"She went to people, told them of her concerns and was ignored. In her frustration, she finally blurts it out," Tarkanian said.

Wohletz told the Review-Journal of her concerns the day before the council was scheduled to reconsider the vote.

Another worker at the Water Pollution Control Facility, Wendy Ellis, also had raised concerns to Selby and complained that she was being ignored.

Selby received a raise of 3.73 percent in August for an annual salary of more than $196,000. He also received a $10,000 bonus in an unanimous vote by the City Council.

Tarkanian said she was watching to see whether necessary changes in staff procedure happens.

"Yes, they could do it; they could make the changes, but will they do it?" she asked. "I don't know. To change the way you're operating is very hard."