MINUTES OF THE MEETING OF THE JOINT SUBCOMMITTEE ON CAPITAL IMPROVEMENTS/HIGHER EDUCATION ASSEMBLY COMMITTEE ON WAYS AND MEANS AND SENATE COMMITTEE ON FINANCE Sixty-eighth Session March 21, 1995 The meeting of the Joint Subcommittee on Capital Improvements/Higher Education of the Assembly Committee on Ways and Means and the Senate Committee on Finance was called to order at 8:08 a.m., on Tuesday, March 21, 1995, Chairman Marvel presiding, in Room 352 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. ASSEMBLY SUBCOMMITTEE MEMBERS PRESENT: Mr. John W. Marvel, Chairman Mr. Morse Arberry, Jr., Chairman Mrs. Vonne Chowning Mr. Joseph E. Dini, Jr. Mr. Thomas A. Fettic Mr. Lynn Hettrick ASSEMBLY SUBCOMMITTEE MEMBERS ABSENT: None SENATE SUBCOMMITTEE MEMBERS PRESENT: Senator William J. Raggio Senator Raymond D. Rawson Senator Bob Coffin Senator Dean A. Rhoads SENATE SUBCOMMITTEE MEMBERS ABSENT: None STAFF MEMBERS PRESENT: Mr. Mark Stevens, Fiscal Analyst Mr. Gary Ghiggeri, Deputy Fiscal Analyst PUBLIC WORKS BOARD - ADMINISTRATION - PAGE 547 PUBLIC WORKS BOARD - INSPECTION - PAGE 552 Mr. Roger Grable, Deputy Manager, Public Works Board, introduced Mr. Dean Borges, Acting Manager, and Mr. Randy Dunham, Accounting Technician. Chairman Marvel inquired whether there were technical corrections to be made to the budget. Mr. Grable responded this account (101-1560) was directed at funding the operations of the Public Works Board and associated administrative support staff. He explained Fiscal Division staff had questioned why in-state travel was included in this budget as well as in the projects budget (401-1562). He said the reason was so project-related costs could be applied against the projects. Mr. Ghiggeri stated over the past few biennia there had been a shift in funding from account number 101-1560, which is funded almost exclusively by General Fund dollars, to account number 401-1562, which is funded via assessments against individual projects. Review of the accounts indicated no accurate time and effort study was used to assess charges against projects. It appeared blanket amounts were transferred from the projects to account number 401-1562, regardless of the amount of effort put forth on the projects. Mr. Grable stated the amount to be transferred to account number 401-1562 from each project was determined by computer generated estimates based on historical and empirical data. Chairman Marvel inquired whether funds could be transferred from account number 101-1560 to account number 401-1562. Mr. Grable said funds could not be transferred from account number 101-1560 since it included strictly General Fund revenue and was devoted almost entirely to the support of the Public Works Board. Five professional positions and two drafting positions included in this budget sometimes provided project support. In those instances the travel costs for those positions were charged against account number 401-1562. Chairman Marvel asked Mr. Grable to explain the request for in-state travel and whether the Public Works Board would accomplish as much in the coming biennium as it had in the present biennium. Mr. Grable said the Public Works Board expected to accomplish more in the coming biennium than it had in the current biennium. Projects from 1989, 1991, and 1993 were still in process statewide. It was anticipated there would be a significant increase in the Capital Improvement Program in the coming biennium. He said in-state travel in account number 401- 1562 reflected the best estimate for the travel expenses of professional staff supporting the various projects. Chairman Marvel inquired about insurance expense. Mr. Dunham explained insurance expense incorrectly included $1,335 for property and contents coverage. The budget request should be reduced by that amount. Chairman Marvel asked Mr. Grable to discuss the computer maintenance agreements. Mr. Grable stated funding for the computer maintenance agreements was requested as the result of a recommendation from the Department of Information Services (DIS). He noted in the past the Public Works Board has not required the services of the DIS for computer maintenance, but rather has performed its own computer maintenance. He said it was uncertain whether or not it was mandatory to include the computer maintenance costs in the budget. Chairman Marvel asked if the accounting system could be refined to allocate more costs to projects. Mr. Grable said the Public Works Board could do whatever was required of it. The present accounting system could be revised to accommodate cost accounting methods. Chairman Marvel inquired how long it would take to implement a cost accounting system. Mr. Grable estimated it would take at least six months to revise the accounting system. Chairman Marvel asked if a cost accounting system would more accurately reflect the costs of projects. Mr. Grable answered a cost accounting system would reflect the direct costs charged against projects rather than estimates of costs. Mr. Grable noted both this account and the previous account supported the agency although they represented separate functions. Chairman Marvel noted the budget contained a rather large category for mothballing the Lovelock Correctional Center. Mr. Grable indicated this category was included in the budget as a means of tracking expenses. The category would disappear on July 1, 1995, when the Public Works Board would no longer be involved in Phase I of the Lovelock facility. Chairman Marvel asked for an explanation of computer software expenses. Mr. Ghiggeri noted there was a concern that software expense had been left in the base budget although the budget instructions directed that those expenses be identified in a separate decision unit. He explained software expense was not a recurring cost. Mr. Dunham stated this expense was a recurring cost to upgrade CADD equipment yearly to incorporate new information. Chairman Marvel asked Mr. Dunham to provide fiscal staff with the specific details of this expense. Mr. Dunham agreed to provide the information. Mr. Hettrick asked if DIS maintenance charges included maintenance on new computer equipment requested in Decision Unit E-710. He noted the new equipment should be covered by warranties. Mr. Dunham said maintenance on the eight new computers was not included in the DIS maintenance charges. The new equipment would be under warranty for one to two years after purchase. Mr. Hettrick questioned whether DIS maintenance charges were necessary in this budget since the Public Works Board had a history of maintaining its computer equipment itself. He suggested that expense could be removed from the budget. Chairman Marvel asked the subcommittee to consider how the two Public Works Board budgets can be funded in the future. Mr. Fettic questioned why there was not one budget account for the Public Works Board. Mr. Grable explained the previous Department of Administration had directed the Board to create one budget. One budget with two funding sources was developed and submitted to the 1993 Legislature. The Legislature determined two budgets were preferable for tracking costs. One budget made it difficult to determine whether General Fund and bond fund money was being spent appropriately. He noted the Public Works Board would prefer to operate with one budget with several funding sources. Chairman Marvel asked Mr. Grable to explain Decision Unit E-720. Mr. Grable stated Decision Unit E-720 included the cost of equipment upgrades. Chairman Marvel inquired about the telephone system included in Decision Unit E-720. Mr. Grable said there was a problem with the current telephone system. The Public Works Board located a potential replacement system salvaged from the former office of the Attorney for Injured Workers. The Public Works Board was currently working with DIS to accomplish replacement of the current telephone system in the current biennium. If that could be done, this expense would be deleted from the Executive Budget. Chairman Marvel asked if this was the same expense item which had been denied by the Interim Finance Committee. Mr. Grable responded affirmatively. Chairman Marvel inquired who would be using the telephone system. Mr. Grable said it would be used by everyone in the office. He noted a portion of this expense should appropriately be assigned to the administrative budget. BUILDINGS AND GROUNDS - PAGE 558 Chairman Marvel inquired how close the division was to compliance with the audit recommendations. Mr. Mike Meizel, Administrator, responded the only audit exception which remained incomplete was the recommendation to hire a leasing specialist. Chairman Marvel asked if there had been a miscalculation in office space. Mr. Meizel said leased office space was projected to increase 5 percent. Historically, the state leased more space than projected nearly every year due to growth. Chairman Marvel questioned whether the budget now accurately reflected increases. Mr. Meizel responded affirmatively. Senator Raggio inquired about the function of the new Program Officer position which would serve as leasing specialist. Mr. Meizel said the Program Officer would be negotiating leases for state agencies. Additionally, the position would be directly involved in auditing floor plans and measurements and would interact with building owners and agencies. Senator Raggio asked if the Program Officer would have the authority to independently assess agency requests for space to keep them from becoming excessive. Mr. Meizel said he believed the position would have that authority. Senator Raggio said it was important for the position to serve that function. Chairman Marvel noted this position had been recommended by the legislative auditors. He asked what the job description was for this position. Mr. Meizel said a job description had been developed and included performing on-site visits of every lease site, dealing with agencies and landlords, etc. Chairman Marvel asked Mr. Meizel if he had discussed moving $50,000 from the adjusted base budget to Decision Unit E-850 with fiscal staff. Mr. Meizel stated he had met with fiscal staff and agreed to the adjustment. Chairman Marvel inquired about the Fremont School and whether deadlines would be met. Mr. Meizel said the Fremont School was currently being renovated for use by the Department of Education. Completion was scheduled for July 1995. The old portion of the Fremont School was being prepared for occupancy by the state mail room. Completion of that project was scheduled for January or February 1996, assuming the project is approved by the Legislature. Mr. Borges said 90 percent of the roof repair/replacement had been completed. The project was on track and the Education Department should be able to move in on time. He said the mail room remodel was a priority project. Chairman Marvel asked how long it would take to move the mail room into the Fremont School. Mr. Meizel said the actual move could be accomplished in a weekend. He said there would be no interruption in mail service as a result of the move. Mr. Dini asked if there were any structural problems with the older portion of the building. Mr. Meizel said there were no structural problems. He explained the building lent itself to the mailroom facility since it could be more easily heated and cooled as an open facility than it could as an office facility. Chairman Marvel asked if the budget included the proper expenses for the Department of Motor Vehicles express office in Las Vegas. Mr. Meizel said the costs could be rolled into rent revenue, which would mean revising all rent categories, or charged to the Department of Motor Vehicles as a special service charge. He stated the costs had been itemized and could be accounted for in the budget by either method. Chairman Marvel asked Mr. Meizel if he had any additional information about the Reno warehouse. Mr. Meizel said approximately half (11,800 square feet) of the Reno warehouse was rented to Washoe County at the rate of $.25 per square foot. He noted renting to a public entity reduced security and liability concerns associated with a private entity. The final stage of the lease was being reviewed by legislative attorneys to determine whether the transaction required a resolution or approval by the Interim Finance Committee. Chairman Marvel inquired whether legislation would be required for the payback to the General Fund. Mr. Meizel stated the payback was already occurring. He said he was not aware that legislation was required. Mr. Ghiggeri said the session law should include the provisions for General Fund payback. Chairman Marvel asked Mr. Meizel if he wished to comment on special projects. Mr. Meizel said those projects were self-explanatory. CLEAR CREEK YOUTH CENTER - PAGE 565 Mr. Meizel said youth groups, religious groups, and government agencies were the primary users of this facility. Chairman Marvel inquired whether Rite of Passage was also using the facility. Mr. Meizel responded the state had a contract with Rite of Passage for permanent occupancy of one of the administrative buildings and use of the gymnasium. Chairman Marvel asked if Rite of Passage planned to expand its use of the facility. Mr. Meizel said he had not heard of any plan by Rite of Passage to expand use. Chairman Marvel noted the measurement indicators projected a slight drop in number of user days. Mr. Meizel said the number of days had dropped but the number of users had not. Chairman Marvel asked for public testimony. Ms. Vicki Wright, Executive Director, Sierra Nevada Girl Scout Council, testified Girl Scout troops comprised a large percentage of users of this facility. In the past year, approximately 540 girls used the facility for two nights or more. Over 900 girls were scheduled to use the facility in the coming year. She noted security was an important reason for using the facility. Clear Creek Youth Center provided a secure location at a reasonable cost. Ms. Wright said the state needed to continue funding for this facility to provide a safe, reasonably priced site for youth activities. She encouraged the subcommittee to make funding available. Senator Raggio inquired about the length of time Girl Scouts stayed at the facility. Ms. Wright stated the Girl Scouts used the facility for weekend trips. She noted Clear Creek Youth Center provided food service. Chairman Marvel asked if a fee increase was being considered. Mr. Meizel replied he wanted to review the fee structure. He noted the facilities were fairly old and the area was remote. He said he did not want to lose the user market as a result of a fee increase. Chairman Marvel asked what fee income was predicated on for the coming biennium. Mr. Meizel answered fee revenue was projected based on revenue from the past biennium. Chairman Marvel pointed out revenue was projected to increase from $125,000 to $136,000. Mr. Meizel said he would have to review the figures. He said the Executive Budget did not contemplate raising day use fees. Chairman Marvel asked Mr. Meizel to provide an explanation for the revenue increase. Mr. Meizel agreed to provide the information. Mr. Dini asked Ms. Wright if she had any recommendations concerning the condition of the facility. Ms. Wright said she had no specific recommendations. Chairman Marvel asked Mr. Meizel to explain the facility charges. Mr. Meizel stated the total user charge was $17.00, including $4.00 per meal and $5.00 for the use fee. Chairman Marvel asked Mr. Meizel to provide to fiscal staff an itemized list of fees received. Mr. Meizel agreed to do so. MARLETTE LAKE - PAGE 569 Mr. Meizel explained the state sold water from the Marlette Lake water system to Carson City and Storey County. He said this budget did not contemplate any change in operations. He noted it probably would not be necessary to pump water in the coming year due to the heavy snow fall. Additionally, some restoration work would have to be done on the Marlette Dam in the summer of 1995. Mr. Meizel stated there was a reserve fund in this budget to cover contingencies. Senator Raggio asked if projected revenue was from water sales. Mr. Meizel responded affirmatively. Senator Raggio questioned why water sales revenue had decreased. Mr. Meizel replied there was an error in the original budget and the revenue figures should be adjusted upward. Senator Raggio inquired how the water rate was determined. Mr. Meizel said the raw water rate to Storey County was set by contract. Senator Raggio asked if the contract rate was a fair market value rate or if the state was subsidizing the purchase of water. He said he would like to see a comparison of water rates and some assurance the state was receiving fair market value for the water. It appeared revenue covered operating costs and the reserve but the state was not recapturing the principal cost of the water system. Chairman Marvel asked if there had ever been any payback provision. Mr. Meizel said he was not aware of any payback provision. He noted Senator Raggio's statement was accurate. The budget covered maintenance of the system, but nothing to cover the original cost. Chairman Marvel inquired whether adjusting revenue upward would affect the reserve balance. Mr. Meizel said the reserve balance would be affected. Chairman Marvel asked Mr. Meizel to meet with fiscal staff to make the necessary budget adjustments. Mr. Meizel agreed to do so. Mr. Hettrick asked if pumping equipment was portable. Mr. Meizel said the pumping operation was portable. Mr. Hettrick questioned whether an operator was required to run the pump. Mr. Meizel said an operator was required. He noted pump failure, fire, and vandalism had to be taken into consideration when leaving the pumping equipment at the lake. CARSON WATER TREATMENT PLANT - PAGE 573 Mr. Meizel explained the water treatment plant purchased water from the Marlette Lake budget at a raw water rate of approximately $.25 per 1,000 gallons. The treatment plant processed water and distributed it to Carson City, which redistributed the water to state facilities through a cooperative agreement. He said the treated water cost was approximately $.65 per 1,000 gallons. Mr. Meizel noted the agency preferred to keep a reserve of approximately $50,000 in this budget. He added money was paid to the General Fund from this budget from Carson City to pay back the cost of a plant expansion project which Carson City requested several years ago. Chairman Marvel asked why the reserve balance was projected to decrease in the second year of the biennium. Mr. Meizel said the reserve balance would be corrected to increase from $41,096 to $50,183. Senator Raggio asked how the payback cost from Carson City was determined and whether it was a fair value. Mr. Meizel said the payback was based on the amount of water sold. He noted it was advantageous for the state to sell water to Carson City for distribution rather than to attempt to market the water commercially. Senator Raggio asked if the state paid Carson City for water. Mr. Meizel said under the cooperative agreement the state only paid for water used that exceeded the amount of water provided to Carson City from the state. ADMINISTRATIVE SERVICE MAIL ROOM - PAGE 513 Mr. Meizel reported the central mail service supplied mail throughout the state. Some mail processing, e.g., folding and inserting, was done in Carson City for some state agencies. He explained the legislative audit had recommended consolidation of mail service and use of the Department of Motor Vehicles bar coder to process all state mail. Mr. Meizel stated this budget reflected the transfer of four positions from other agencies and transfer of the bar coder equipment from the Department of Motor Vehicles. Additionally, all of the central mail service would be located at the Fremont School facility. He explained the agency had forecasted less budget savings than Fiscal Division auditors, but noted the projection was conservative. Chairman Marvel asked what comprised revenue in this budget. Mr. Meizel said almost all of the revenue was postage. A small amount of revenue was received from mail processing services and inter-office delivery charges. Mr. Hettrick noted postage expense was $2,547,000 yet gross income was $5,662,000. He asked how the additional revenue was generated. Mr. Jim Manning, Budget Analyst, Budget Division, explained additional postage expense was reflected in the operating expense category rather than in the postage category. Chairman Marvel asked if a budget adjustment would be made. Mr. Manning answered affirmatively. Mr. Dini asked if it was possible to advance funding for start up costs on the Fremont School renovation in order to realize savings sooner. Mr. Meizel said the sooner the project could begin, the sooner mail consolidation could be accomplished. Chairman Marvel suggested this matter should be considered by the subcommittee. Chairman Marvel inquired whether there could be a 20-year General Fund payback for the Fremont School renovation. Mr. Meizel said the agency would not want to pay for acquisition costs, but could pay back renovation costs. Chairman Marvel asked if this budget required complete revision. Mr. Meizel said the agency would work with fiscal staff on changes associated with the Human Resources Department's NOMADS project. He explained the mailroom would be responsible for outputting the notification system, which would entail purchasing or leasing additional equipment and possibly adding staff. He noted he had recommended outsourcing this work, but the cost to electronically insert the mail produced by NOMADS would be nearly $1 million. It would be preferable for the state to purchase or lease the equipment to do the work itself. Chairman Marvel noted he had been informed by fiscal staff there were a number of mechanical adjustments required to be made in this budget. CAPITAL IMPROVEMENT PROGRAM - PAGE A53 Chairman Marvel asked Mr. Borges to report on Project 95-S1. Mr. Borges stated Project 95-S1 included statewide roofing projects. Ms. Christa Peterson, Deputy Administrator for Treatment Services, Division of Child and Family Services, explained the reason for roofing requests for Northern Nevada Child and Adolescent Services and Southern Nevada Child and Adolescent Services was due to problems with leakage. Chairman Marvel inquired whether the roofs to be repaired were flat roofs. Mr. Borges said the roofs were flat. They would be replaced with a single-ply material to be mechanically attached. Senator Rawson questioned whether tile or other higher grade roofing material had been considered for use on state buildings. Mr. Borges said tile roofs had been considered. He said tile systems had to be installed on pitched roofs. Many state buildings had flat roofs. He noted the state had adopted roofing standards which would provide a slope to move water off flat roofs and so roofs could withstand high winds. Senator Rawson suggested using metal roofs. Mr. Borges said metal roofs leaked, just as other roofs did. Chairman Marvel directed the subcommittee's attention to Project 95-C2, the juvenile treatment facility at Southern Nevada Child and Adolescent Services. Mr. Borges explained this was the highest priority project of the Human Resources Department. Chairman Marvel asked how many youths who were currently being sent out-of- state could be retained in Nevada if this facility was constructed. Ms. Peterson answered the department estimated approximately 116 out-of-state placements would be appropriate for referral to the new facility. She explained the facility was designed in four distinct units to serve different populations based on need. Mr. Arberry asked how long the length of stay was for juveniles placed out-of- state. Ms. Peterson answered the average length of stay out-of-state was approximately 400 days. Chairman Marvel inquired how long it would take to recoup the cost of this facility from savings from out-of-state placements. Ms. Peterson said she had not done any projections in that regard. Chairman Marvel asked Ms. Peterson to develop some figures for the subcommittee. Ms. Peterson agreed to do so. Senator Rawson asked Ms. Peterson to provide the subcommittee with an outline of the four programs. He questioned whether this would be a maximum security facility to deal with youth offenders. Ms. Peterson stated this facility was designed as a treatment facility for youths with severe mental health problems who also have been involved in the delinquency system, including sexual offenders. The four programs would include one for chronically disturbed adolescents who have delinquent histories, one to house adolescent sexual offenders, one for short-term acute care, and one dedicated to severely disturbed latency age children requiring intermediate to long-term residential care. She noted the short-term care program might be revised to a long-term care program for chronically disturbed adolescents because of that area of need. Senator Rawson inquired whether a maximum security juvenile facility could be added to this facility. Ms. Peterson said this project was not designed to provide incarceration. It was designed as a staff secure treatment facility. It would not be an appropriate facility to house violent adolescent offenders. Senator Rawson asked if facilities at Pioche could be used to house violent adolescent offenders. Chairman Marvel inquired whether any of the youths placed in Tennessee would be returned to Nevada. Mr. Dave Bash, Acting Director, Youth Correctional Services, responded the Tennessee placements represented a separate population. Serious and chronic offenders were not targeted for this treatment program. The target population was youngsters with emotional and mental health problems who also have a delinquency problem. Serious and chronic offenders traditionally did not suffer from mental health problems as much as from anti-social behavior and conduct disorder diagnoses. Senator Rawson pointed out in-state facilities would have to be planned for those serious and chronic offenders if they were to be returned from out-of-state placements. Mr. Bash expressed agreement with Senator Rawson. He noted there was no secure youth detention facility in Nevada. The NCCD study recommended a 40-bed facility for youth correctional services. Senator Rawson noted that facility was not included in the Capital Improvement Projects list. Mr. Bash said Senator Rawson was correct. Senator Rawson asked where a secure facility would be located and how much it would cost. Mr. Bash said planning had not yet included cost estimates. His recommendation was that the facility be located in Clark County, close to the offender population. Senator Rawson inquired whether the Pioche facility could be converted to a secure youth detention facility. Mr. Bash stated the issue had been explored. The Pioche facility would not successfully accommodate a youth detention facility. Senator Rawson asked if a new facility would have to be constructed. Mr. Bash said he knew of no existing physical plant which would be suitable. Senator Rawson questioned whether a facility could be added to the Caliente facility. Mr. Bash said he thought that would be an unwise mixing of two separate missions. The new facility should stand alone. Senator Rawson recommended further review of this issue. Chairman Marvel expressed appreciation for Senator Rawson's comments. He noted several people had approached him with the same concerns. He questioned what the long-term savings would be if an in-state facility was constructed. Chairman Marvel asked why the project cost estimate listed $248,063 for utility/off-site costs and $115,762 for utilities. He questioned whether this was a duplication of costs. Mr. Borges said the utility costs might require an adjustment. Mr. Arberry asked if the design architect would also do the construction work or if another architect would be hired. Mr. Borges said it was normal procedure to have the original design team continue the project, and the plan was to continue with the design architect. Chairman Marvel asked for detailed information about utility/off-site costs, data/ telecommunications expense, and furnishings and equipment expense. Mr. Dan Daily, Project Manager, responded utility/off-site costs represented the cost of water hookups and infrastructure (i.e., sewer, water, and street improvements). Senator Rawson noted the facility was originally planned as a 40-bed facility, and now it was a 56-bed facility. He asked if the original intent was to construct a 40- bed secure facility. He questioned whether it was more important to deal with hard-core offenders or adolescents requiring treatment. Ms. Peterson responded the department had prioritized the treatment facility as being the most needed due to the high number of adolescents in out-of-state placements. She explained originally two separate facilities had been recommended; one for incarceration of hard-core offenders and one for treatment. Senator Rawson asked if there was still a need for two facilities. Ms. Peterson answered affirmatively. Chairman Marvel asked the number of hard-core offenders and the number of treatable adolescents. Ms. Peterson replied most of the approximately 182 children placed out of state last year suffered from mental health problems. Chairman Marvel asked what the total number of out-of-state placements was. Mr. Bash said hard-core offenders were housed both in youth institutions or under contract with Correctional Institutions of America. Only nine youngsters were currently being housed by Correctional Institutions of America. Approximately 15 others were housed in correctional institutions. Chairman Marvel questioned why a 56-bed facility was being constructed when 180 children were placed out of state. Ms. Peterson explained 26 of the 182 previously mentioned were mentally retarded. Approximately 112 children were seriously emotionally disturbed and would be appropriate for the new facility. Chairman Marvel pointed out the new facility would not be large enough to handle that caseload. Ms. Peterson said the department also proposed expanding treatment home beds at Northern Nevada Child and Adolescent Services and Southern Nevada Child and Adolescent Services to serve some of those 112 children. In addition, efforts were continuing to contract with private facilities for in-state placement of some of these youths. Senator Rawson asked if the 22 to 24 beds utilized at adult mental health services were for sexual offenders. Ms. Peterson said 22 beds were used at the Division of Mental Hygiene and Mental Retardation hospital in southern Nevada. She stated 12 of those beds were for adolescent sexual offenders and 10 beds were for children requiring acute residential treatment. Senator Rawson inquired whether those 22 beds would be vacated once the 56- bed facility was constructed. Ms. Peterson responded the original plan was to move youths out of the adult hospital and into the new facility; however, given the large increase in out-of-state placements, both facilities may still be needed. Mr. Arberry said he was under the impression the City of Las Vegas waived sewer connection fees. Mr. Borges said neither Las Vegas nor North Las Vegas had waived fees. Mr. Arberry asked if the department had attempted to have fees waived. Mr. Borges said in the past an attempt had been made to have fees waived but it had been unsuccessful. Mr. Arberry asked why utility/off-site costs and data/telecommunications costs were both $248,063. Mr. Borges stated the estimates were based on the square footage of the buildings. He said he did not know why both numbers were the same. He indicated he would review the question and report back to the subcommittee. Chairman Marvel asked Mr. Borges to report on Project 95-C3. Mr. Borges stated this was a 10,900 square foot addition at Lake's Crossing facility for mentally disordered offenders in Sparks. He said the addition would add 12 beds and provide changes to the entrance of the building and would be in lieu of a new building requested to be built in Las Vegas. He noted this was a high priority item for the Department of Human Resources. Chairman Marvel invited Dr. Carlos Brandenburg, Acting Administrator, Division of Mental Hygiene and Mental Retardation, to discuss this project. Dr. Brandenburg stated the division had submitted a request to increase the scope of Project 95-C3 to add $572,497. He explained the reason for the request was that when the original request was submitted to the Public Works Board the institute study was not finalized. Once the study was finalized he submitted to the Public Works Board a request for the addition of a secure intake area and visiting area to the scope of the project. Dr. Brandenburg said he was also asking that Project 93-M11 from the 1993 Capital Improvement Program be deferred and included as part of Project 95-C3. He explained it would be cost effective to include Project 93-M11 as part of the new construction. He stated the Public Works Board concurred with this request. Chairman Marvel asked if funding for Project 93-M11 would be carried forward. Dr. Brandenburg stated that was the intent. Mr. Borges indicated this would be acceptable to the Public Works Board. Chairman Marvel asked how much additional staffing would be required. Dr. Brandenburg said approximately 12 forensic specialists, a social worker, a half- time psychiatrist, a housekeeper, and an activities therapist would be needed. Chairman Marvel asked if those positions were included in the Executive Budget. Dr. Brandenburg said those positions were not in the budget. It was expected construction of the facility would occur over the coming biennium and the staffing request would be included in the 1997-99 biennium budget. Chairman Marvel asked what the construction time table was. Mr. Borges stated completion was expected in the last quarter of 1997. Mr. Dini asked how the division had determined whether to remodel Lake's Crossing or build a facility in Clark County. Dr. Brandenburg said the division had taken into account the fact that Lake's Crossing could accommodate at least 50 clients and provide adequate space through the year 2000. It was estimated there would be a savings to the state for operating expenditures as well as capital improvement expenses. If the forensic facility was to be constructed in Clark County the cost would be at least $10 million for the structure and $4 million per year for operating expenses as well as duplication of administrative costs. The division felt the addition to Lake's Crossing would allow for deferment of the southern Nevada facility. Senator Rawson noted there was an existing facility in Pioche. He asked if that facility met any of this program's requirements. Dr. Brandenburg said he was not aware of that facility. He would have to examine the facility and consult with staff and the Public Works Board to determine if it would be appropriate for the division's use. Senator Rawson suggested the facility should be looked at to determine if it could be of use to the state. Mr. Borges agreed to look at the facility and present a study to fiscal staff. Chairman Marvel asked for a report on Project 95-C5. Mr. Borges stated this was also a high priority project for the Department of Human Resources. This project was a 3,100 square foot addition to the Northern Nevada Child and Adolescent Services building in Reno consisting of counseling rooms, staff offices, etc. Chairman Marvel inquired about growth trends in the early childhood treatment program. Ms. Peterson stated the most rapidly growing segment of the child population was age zero to age six, which was reflected in program population growth and was one of the reasons the additional space was required. Chairman Marvel asked how many additional children could be treated as the result of the addition. Ms. Marilyn Walter, Chief, Early Childhood Services, Division of Child and Family Services, replied in Fiscal Year 1994 the program served 181 children, which was three times the number served in 1991. The waiting list in Fiscal Year 1994 was 74. Chairman Marvel questioned whether additional staff would be required in conjunction with the program addition. Ms. Walter said additional staff was requested but not recommended by the Governor. Chairman Marvel asked when the project would be completed. Mr. Borges responded completion was scheduled for Fiscal Year 1998. Chairman Marvel asked if there was any need for staff in the coming biennium. Ms. Peterson said there was not. Ms. Walter noted federal funds have been used to date to address the needs of the expanding population. Mr. Arberry inquired what would happen if the federal funding was eliminated. Ms. Walter said it was likely that could happen. She said the program had utilized a child care development block grant and a temporary crisis care nursery grant. She stated to her knowledge those funds have not been recommended for rescission or repeal but they have been recommended for block granting. The outcome of that recommendation is uncertain. Chairman Marvel inquired whether it would be better to use federal funds for leasing rather than for construction. Ms. Peterson said the division could justify the additional space based on growth over the past biennium. She noted eight positions had been added at this site over the last biennium and the Governor recommended two additional positions in the coming biennium. She said there would be space problems at this facility without the added square footage. Senator Rawson said it seemed the facility was being designed too small and should be up scaled. Chairman Marvel asked the Public Works Board to report to fiscal staff on this issue. Chairman Marvel asked Mr. Borges to provide documentation of utility/off-site costs, data/telecommunications costs, and furnishings and equipment costs. Mr. Borges said he would provide the information. Chairman Marvel asked Mr. Borges to address Project 95-M44. Mr. Borges said this project was to seal and paint the exterior walls of the Division of Child and Family Services in Reno. Chairman Marvel inquired about the inflation in costs of approximately 39 percent since 1991. Mr. Borges said he was not aware of the 1991 cost. Mr. Ghiggeri noted Project 91-M27 for basically the same type of project had been estimated to cost $107,377. Mr. Borges said he would review this question and report back to the subcommittee. Chairman Marvel referred to Project 95-C11. Mr. Borges explained this project was construction of a new dining room at the Caliente Youth Center to improve safety and services. Chairman Marvel directed the subcommittee's attention to Project 95-M15, refurbishment of the dormitories at Caliente Youth Center. He inquired why kitchenettes in the dormitories were being refurbished if a new central feeding system was being constructed (Project 95-C11). Mr. Curtis Stewart, Superintendent, Caliente Youth Center, explained sinks and stoves in the dormitories would continue to be used once the central dining facility is completed. The cabinets around the sinks and stoves needed to be replaced. Chairman Marvel asked if the kitchen facilities would be replaced. Mr. Stewart said only cupboards and sinks would be replaced. Senator Rawson questioned how meal service would be handled during the remodel. Mr. Stewart answered food was currently being prepared in the kitchen and transported to the cottages. There would be no disruption to that practice while the new building was under construction. Refurbishment to the cottages would have to be done by temporarily moving the youngsters out while the work was accomplished. Senator Rawson asked if there was anything on the agency's priority list which was not recommended for funding by the Governor. Mr. Stewart said there was not. Senator Rawson inquired whether the agency had a greater need for more staffing or for a new building. Mr. Stewart said lack of both maintenance and program staff was a problem. He noted there would be no additional staff in conjunction with this project. Chairman Marvel asked Mr. Borges to address Project 95-M17, refurbishment of the kitchen at Caliente Youth Center. He asked if the cost estimates were correct. Mr. Borges responded the estimates were correct. He noted a corrected project cost estimate had been provided to fiscal staff reflecting minor corrections in the cost estimates for structural plan checks and fire marshal plan checks. Mr. Daily noted the cost estimates were developed from similar recent projects. Senator Rawson asked if the Caliente Youth Center projects could be combined into one project which would be more cost effective. Mr. Stewart said the Public Works Board was approaching the work in the most appropriate way. Senator Rawson asked if some meal preparation was done in the cottages. Mr. Stewart said breakfasts were prepared in the cottages. Once the dining room facility was constructed breakfasts would be prepared in the dining room. Senator Rawson questioned if it was necessary to repair the kitchens in the cottages. Mr. Stewart replied the main kitchen needed a new floor, a new dishwasher, and repairs to comply with health requirements. Chairman Marvel inquired whether the work would create a logistical problem at the center. Mr. Stewart responded there would be somewhat of a problem but it could be managed. Chairman Marvel referred to Project 95-M8, improvement of fire safety in 11 buildings at Southern Nevada Adult Mental Health Services. Mr. Borges explained the project was to install fire safety features at the facility to comply with state law. Mr. Jim Schneider, Public Works Board, noted there had been several incidents at the facility where clients have set fires in their rooms. While the buildings are covered by sprinkler systems, there are no smoke detectors in individual rooms. Smoke detectors are not a code requirement but could help alleviate the cost of repairing water damage caused by sprinklers. Costs of this project could be recouped within approximately three years. Senator Rawson said he wanted to be certain there was no duplication in this project. He noted the 1991 Legislature had authorized rebuilding the kitchen at the facility and there were funds remaining in that project budget. He inquired whether the kitchen construction work included in this project was a duplication of the 1991 project. Mr. Schneider said he was not aware of any duplication or any funds remaining from the 1991 project. Senator Rawson stated this matter should be reviewed. Senator Rawson also requested assurance there was no duplication in the work proposed to be done in Buildings 7 and 15. He noted $33,000 was recommended for building construction of Building 7 exterior walls and $87,000 was recommended for building construction of Building 15. A one-shot appropriation was recommended comprised of $58,000 to patch, seal, and paint buildings, $11,000 for wood facia replacement, and $7,500 for patio covers. It appeared the one-shot appropriation could be a duplication of this project. Mr. Borges said he would review this question and respond as soon as possible. Mr. Arberry noted a one-hour corridor was included in the project. He questioned whether the original building design included a one-hour project. Mr. Schneider said the original corridor had no rating. Mr. Arberry asked if the one-hour corridor was required in an office building or a treatment center. Mr. Schneider said the building was used as an office building but it also contained treatment rooms. Mr. Arberry asked if the building was constructed with five-eighths inch sheet rock. Mr. Schneider stated a portion of the sheet rock was one-half inch. Mr. Arberry asked if it was one-half inch type X sheet rock. Mr. Schneider said it was not type X drywall. Mr. Arberry inquired whether the occupant load in the corridor was over 30. Mr. Schneider responded affirmatively. Senator Rawson said he understood five-eighths inch sheet rock was required by code. Mr. Schneider stated Senator Rawson was correct. Senator Rawson pointed out buildings repaired or constructed by the state should be of the highest standard. Chairman Marvel directed the subcommittee's attention to Projects 95-M10, 95- M16, and 95-M23. Mr. Borges reported Project 95-M10 was the replacement of a well and water tank at the Nevada Youth Training Center in Elko. He explained the current well has been losing capacity. The new well would produce over 800 gallons, which was needed for fire protection and operations. Mr. Ed Burgess, Superintendent, Elko Youth Training Center, added the project included construction of a new water storage tank. He explained the pumping capacity of the current well had decreased from 800 gallons per minute to 275 gallons per minute and no longer met fire protection codes. The current 73,000 gallon storage tank was rusted and leaking. The project would upgrade the storage tank to a 200,000 gallon tank to meet the water demands of the facility. Chairman Marvel asked if the cost estimates were realistic. Mr. Burgess said he believed the estimates were realistic. Chairman Marvel inquired whether it would be necessary to drill a new well. Mr. Burgess said a new well would have to be drilled. Mr. Borges stated the current well was 10 inches. The new well would be 12 inches. Senator Rawson asked Mr. Burgess to advise the subcommittee if any needs were not adequately addressed in these projects. Chairman Marvel next referred to Project 95-M18, remodel of the Special Children's Clinic in Reno. Mr. Borges stated the project would provide observation windows in treatment rooms and upgrade the heating, ventilating and air conditioning system. Chairman Marvel requested a breakdown of costs. Mr. Borges replied the cost estimate for the observation windows was $53,106. The cost estimate for the heating system was $50,000. Chairman Marvel inquired why these costs had increased. Mr. Borges said he would review the matter and report back to the subcommittee. Chairman Marvel moved to Project 95-M20, Nevada Mental Health Institute maintenance and renovation. Mr. Borges stated this project included maintenance and renovation of a number of buildings. Dr. Brandenburg explained the division had submitted to fiscal staff a priority list of projects for the subcommittee to consider. He asked to reprioritize the items listed in this project to focus on improving the physical environment in client-related areas at the institute. He recommended elimination of the remodel of the seclusion/inpatient area, the Building 3 remodel, and remodel of the dishwash area. He noted replacing underground steam lines was considered a high priority project and funding was left intact for the dining room remodel in Building 9. Chairman Marvel asked if this information was included in a study recently provided to the subcommittee from the institute. Dr. Brandenburg answered affirmatively. He said the study addressed a long-range plan for remodeling the institute. He wanted to hold the remodeling in this project in abeyance until it could be determined what areas needed to be remodeled. Chairman Marvel inquired how much cost savings could be realized from adjusting this project. Dr. Brandenburg said he would like to use the funding appropriated for this project for maintenance of Buildings 5 and 8. Any surplus funds remaining could be used for work on Building 1. He agreed to meet with fiscal staff and the Public Works Board to develop cost estimates. Mr. Hettrick asked how large Building 1 was. He noted the cost estimate for the heating, ventilation, and air conditioning renovation at Building 1 seemed high. Mr. Jim Baumann, Administrative Services Officer, Nevada Mental Health Institute, reported the building was 31,841 square feet, comprised of two main levels and a basement. Chairman Marvel inquired whether all Public Works Board projects from 1991 forward had been completed. Mr. Borges replied there were some projects remaining to be completed. He would provide a detailed report to the subcommittee. Mr. Dini asked if the Public Works Board was planning to convert air conditioning units from freon units. Mr. Borges answered a statewide project was addressing this issue. Chairman Marvel asked for a report on Project 95-C8. Tony Clark, Adjutant General, Office of the Military, explained this project would replace the Las Vegas armory complex, which had become land locked and was in disrepair. Land near Nellis Air Force Base had been acquired as a site for construction of a new armory and support buildings. The Office of the Military obtained federal funding for the full construction costs of the support buildings and 75 percent of the construction costs of the armory. This project represented a request for 25 percent of the armory construction costs and costs of site preparation for the entire facility, including utilities to the property line. Chairman Marvel asked how long the federal funding would be available if work was not in progress. General Clark replied if a contract for construction was not signed by September 30, 1995, the federal funds would revert to the National Guard Bureau. Chairman Marvel inquired whether the Public Works Board could accommodate this project within that time frame. Mr. Borges indicated this project could be contracted by September 30, 1995. Senator Coffin noted the United States Congress had been rescinding previously appropriated federal funds. He questioned whether federal funding for this project was actually encumbered. General Clark stated the funds had been transferred to the National Guard Bureau for use on this project. He said any federal funding could be rescinded but he did not anticipate rescission of these funds or funds for the Reno armory project since Congressman Barbara Vucanovich chaired the House Appropriations Military Construction Subcommittee. He noted Congressman Vucanovich's staff was working closely with his office on this project. Chairman Marvel asked Mr. Borges if estimates for utility costs to the site and ancillary costs were accurate. Mr. Borges said the figures were the current best estimate. Mr. Dini asked if the Reno armory would be moved. General Clark said it was hoped contracting on the new Washoe County armory would occur concurrently with the Las Vegas armory project. He explained the current Reno armory was located on the Washoe County Fairgrounds. Chairman Marvel asked General Clark if he wished to discuss Projects 95-M28 or 95-M43. General Clark said Project 95-M28 addressed painting of all armories and repair of leaks in exterior walls. The cost estimate was $30,000 per building for 12 armory buildings. Chairman Marvel questioned why an architect was needed for this project. Mr. Borges indicated he would report back to the subcommittee on this question. General Clark stated Project 95-M43 referred to renovations in kitchens in nine armories statewide. He noted most of those kitchens were unusable in their present condition and needed to be refurbished to make them suitable for housing members of the public in case of an emergency. There being no further business, the meeting was adjourned at 10:58 a.m. RESPECTFULLY SUBMITTED: Dale Gray, Committee Secretary Joint Subcommittee on Capital Improvements/Higher Education Assembly Committee on Ways and Means and Senate Committee on Finance March 21, 1995 Page