MINUTES OF THE JOINT MEETING OF ASSEMBLY COMMITTEE ON WAYS AND MEANS AND SENATE COMMITTEE ON FINANCE Sixty-eighth Session March 29, 1995 The joint meeting of the Committee on Ways and Means and the Senate Committee on Finance was called to order at 8:00 a.m., on Wednesday, March 29, 1995, Chairman Morse Arberry presiding in Room 352 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. ASSEMBLY COMMITTEE MEMBERS PRESENT: Mr. Morse Arberry, Jr., Chairman Mr. John W. Marvel, Chairman Mrs. Jan Evans, Vice Chairman Mrs. Sandra Tiffany, Vice Chairman Mr. Dennis L. Allard Mrs. Maureen E. Brower Mrs. Vonne Chowning Mr. Jack D. Close Mr. Joseph E. Dini, Jr. Mr. Thomas A. Fettic Ms. Chris Giunchigliani Mr. Lynn Hettrick Mr. Bob Price Mr. Larry L. Spitler SENATE COMMITTEE MEMBERS PRESENT: Senator William J. Raggio, Chairman Senator Raymond D. Rawson, Vice Chairman Senator Lawrence E. Jacobsen Senator William R. O'Donnell Senator Dean A. Rhoads Senator Bernice Mathews Senator Bob Coffin GUEST LEGISLATORS PRESENT: None STAFF MEMBERS PRESENT: Mark Stevens, Fiscal Analyst Gary Ghiggeri, Deputy Fiscal Analyst Robert Guernsey, Deputy Fiscal Analyst CAPITAL IMPROVEMENT PROJECTS UNIVERSITY AND COMMUNITY COLLEGE SYSTEM PROJECTS Mr. Tom Anderes, Vice Chancellor of Finance for the University and Community College System of Nevada, stated the Governor's Recommendations follow the Board of Regents' priorities in terms of what projects are most important in their facility's plans. Before entering into the agendized capital improvement program discussion, Mr. Anderes asked the committee's permission to speak on the subject of slot tax revenues. He stated the $250 slot tax originated during a legislative session held approximately 20 years ago and was intended for use on capital construction and improvements for all of education. Higher education receives the first $5 million annually which goes into a capital improvement fund. The next 20% of the slot tax goes to the Special Higher Education Capital Construction Fund (SHECCF). The fund has supported an annual debt service of $8 million annually. He noted, based on estimates he had received from the Legislative Counsel Bureau, the revenue source would be increasing substantially. Referring to the SHECCF, Mr. Anderes indicated the university was expecting an additional $1.5 to $2 million per year that could be dedicated to other higher education capital improvement projects. In response to question 23 from the joint committee meeting, Mr. Anderes stated the university system proposed to dedicate $2 million to additional capital improvements for deferred maintenance ($2 million beyond the $10 million that is presently allocated) and additionally, funding to support the next two priorities which are minor projects on the Board of Regent's capital list: $1 million for improvements at the Community College of Southern Nevada for their West Sahara campus and approximately $600,000 for some renovations at Northern Nevada Community College in Elko. Mr. Arberry asked Mr. Anderes to highlight the Board of Regents' priority list. Mr. Anderes said the Board was most concerned with campus improvement projects and had an extended list that went well beyond the $10 million. Referring to tab "U" in the document before him, he stated the Regents would like to see $2 million additional dollars applied towards those projects. He said the next two projects included major renovations or additions: $1 million at the West Sahara campus of the Community College of Southern Nevada and $600,000 for the Northern Nevada Community College Child Center and Adult Basic Education. Mr. Arberry requested additional details be submitted in writing to the committee. CIP PROJECT 95-C4, F/E CHEYENNE & W. CHARLESTON CAMPUSES - $6,000,000 Mr. Richard Moore, President of the Community College of Southern Nevada (CCSW), testified the state had funded two major buildings (1993 Legislature) which were presently under construction on two campuses of CCSN. One building was 100,000 square feet and the other 80,000 square feet. The Governor's office and the Public Works Board have recommended $6 million for the furniture and equipment for the two buildings. The Cheyenne building will have culinary and gaming instructional programs and an extensive computing laboratory. The building on the West Charleston campus will house a massive computing laboratory. The college intends to open the computing center labs to the general public. Mr. Spitler asked whether expediting the furniture bill through the Legislature would help the college meet the fall deadline. Mr. Moore stated if the bill moved quickly, the college could secure the funds and go to bid for the equipment in order to have it on hand for the opening day of fall classes in the fall of 1995. Mr. Marvel asked whether the college had contacted prison industries for their needs. Mr. Orlando Sandoval of the Community College of Southern Nevada replied the college was studying how they could utilize prison industry services. He reported personally meeting with prison industry representatives and assured the committee a good relationship would carry through in future business transactions. Mr. Spitler questioned the $17.3 million request for the Henderson Campus Phase III. Mr. Sandoval indicated the campus was 20 percent built. Planning was estimated to cost $60,000 to $80,000. Because the campus sits within an area of 120,000 people, the college felt emphasis should be placed on adding classrooms. This college is attempting to service a rapidly growing community by accomplishing their educational planning during the present biennium. Mr. Sandoval added the $60,000 barely took the college through the programming stage, leaving them with schematic, design development and construction documents still to complete. The design development stage could be completed if the requested amount could be raised to $300,000, shortening the timespan for completion of the project. Mr. Sandoval asked the committee to consider the increase in order to hasten completion of Phase III. Mr. Arberry asked for a detailed breakdown of the $300,000. Mr. Sandoval stated the money would allow the college to complete the design and development stage. Mr. Arberry asked how the college arrived at the $300,000 figure. Mr. Sandoval replied the architect cost is usually between 7 to 8 percent on a $12 million project; the design and development cost is about 35 percent of their fees. The figures were derived from the architect's and State Public Works' Board formulas. Referring to the West Sahara property, Mr. Sandoval explained it came to the state system partially through a substantial gift from a Nevada taxpayer. It is the college's intention to upgrade the facility in terms of fire safety, handicap improvements and the addition of a 5,000 square foot building. He indicated the cost to be in the $1 million range. Mrs. Chowning asked Mr. Moore to elaborate on the Specialized Language Laboratory. Mr. Moore stated the laboratory involves a computerized system with built-in CD roms. The system demonstrates how to improve students' speech patterns. The school plans to use the system with international languages, English as a second language and American sign language. In reply to Mrs. Chowning's questions regarding courses, Mr. Moore stated the primary language will be Spanish followed by Japanese, French and German. Mrs. Chowning stated she was pleased to see the coordination of international high school and college language studies. Mr. Moore stressed he did not believe college could be successful without many partnerships; the college wants the bridge between highschool and college to be a continuation. CIP PROJECT 95-C6, WNCC CARSON CAMPUS PHASE V - $14,114,873 Mr. Anthony Calabro, President of Western Nevada Community College, explained the Phase V project to the committee. The project will provide for the addition of classroom and laboratory facilities and the reorganization of functions on the existing campus. The phase includes a new computer lab component a well as physics lab and several other programs that are currently at the Stewart complex. The college intends to expand their distance learning capability by installing "smart classrooms" that have audiovisual and computer assisted instructional capability and add distance learning classrooms to serve remote sites in their 18,000 square mile service area. Mr. Arberry asked whether attempts had been made to increase the size of the student lounge. Mr. Calabro stated the college's first priority was additional classrooms and labs. The college has made attempts to expand by adding a small lounge on the mezzanine level and a cafe. In reply to Mr. Arberry's question on the roadway approach, Mr. Moore said West College Parkway will span from Highway 395 to the north of the K-Mart Center and follow up towards the college. Mrs. Chowning asked for the college's current enrollment. Mr. Calabro said the college services approximately 5,000 credit students each semester; with the inclusion of community services, the count is over 6,000 people throughout the 18,000 square mile community. In response to Mrs. Chowning's question as to whether the count included the nursing program, Mr. Calabro answered affirmatively. Mr. Arberry stated the subcommittee intended visiting the campus within the next few weeks. CIP PROJECT 95-C7, UNR EDUCATION BUILDING - $16,233,412 Mr. Ashok Dingra, Vice President of Finance, University of Nevada Reno (UNR) introduced Mr. Brian J. Whalen, Assistant Vice President for Facilities Management (UNR) and distributed a document entitled University of Nevada Reno Capital Improvement Requests, 1995-1997 (Exhibit C, on file in the LCB Research Library). Mr. Dhingra explained the 110,000 square foot Education Building will house classrooms, a laboratory and offices. The Governor and Public Works board have recommended $16.2 million for the project. The building will increase the classroom space on the campus by approximately 20 percent. Mr. Arberry asked whether there was a drainage ditch in the area. Mr. Whalen replied there was a block drain coming off Peavine Mountain which was part of the Peavine Flood Control Dam. He reported the college was involved in a project with the Soil Conservation Service to bury the ditch in front of the facility. Mr. Arberry asked whether there were plans to build other dams. Mr. Whalen stated this was the last of four dams and he hoped it would mitigate any future flood problems. Mr. Arberry asked Mr. Whalen to explain the fourth floor shell. Mr. Whalen said the 10,000 square feet of unfinished space will house a science and math education center. Senator Raggio asked Mr. Whalen to assure the committee the funding completes the project and provides for the construction, equipment and furnishings. Mr. Dhingra replied they have submitted a proposal to the federal government for the science and mathematics center. The total project is approximately $90 million. The college has raised $700,000 which will be used for equipping the building. In reply to Senator Raggio's question regarding the price of completing the 10,000 square foot shell, Mr. Whalen replied it would cost $600,000 to finish the building and $400,000 for equipment and furnishings. Senator Raggio asked whether there were any other areas of the building that were not fully funded under the project. Mr. Whalen said there was one other area in the conference center on the main floor where the finishes were removed in order to bring the project within the $16.2 million budget. Senator Rawson stated the state was not acting responsibly by closing educational programs for a season while building renovations were being made. He suggested the committee give some concern to finishing building projects in order to avoid piecemeal construction. CIP PROJECT 95-C10, DRI NORTHERN SCIENCE CENTER - $11,329,428 Mr. Jim Taranik, President of Desert Research Institute (DRI) introduced Mr. Dale Schulke, Vice President for Finance and Administration (DRI). A document entitled "Desert Research Institute Northern Nevada Science Center" (Exhibit D) was distributed to the committee. Mr. Taranik indicated the institute was requesting 60,000 gross square feet of facility to replace a United States Air Force building located at Stead that was constructed in 1954. The facility is located ten miles north of the institute in the Dandini Research Park. Attempts are being made to consolidate the faculty at the park location. Programs accommodated by the new facility include the Atmospheric Sciences Center (ASC) and the Environmental Engineering Center (EEC). Mr. Taranik stated the Public Works Board performed a study of the space requirements for the new facility which indicated the institute's request of 60,000 square feet would accommodate the faculty and staff currently located in the Stead building. Mr. Arberry asked how much it would cost to finish Phase II. Mr. Schulke reported the 20,000 square feet of space that would remain unfinished would cost $2.4 million to complete. The total Phase II building would be similar to the Phase I building. Mr. Hettrick asked for the size of the existing Sage Building as well as maintenance costs once the building came on line. Mr. Taranik indicated the institute utilized approximately 80,000 square feet of space. If only 40,000 square feet of space was completed in the new facility, he believed the institute would have to leave some of the staff in the Sage Building. In respect to operation and maintenance, the institute has requested through the support services formula, support for operation and maintenance of their facilities. The institute hoped, in terms of operation and maintenance of the Northern Nevada Science Center, it should be funded by the Legislature when the building comes on line. CIP PROJECT 95-C15, TMCC ADVANCED TECHNOLOGY CENTER PHASE VI - $11,884,110 Dr. Rita Gubanich, Interim President of Truckee Meadows Community College (TMCC), introduced Mr. Steve Salaber, Director of Planning and Mr. Dave Eckes, the college's architect. A packet highlighting the college's needs and plans for capital improvement projects was distributyed to the committee (Exhibit E, on file in the LCB Research Library). Referring to a sheet in the handout entitled "TMCC Campus Improvements, 1995-97 Biennium Request," Dr. Gubanich stated the projects totaling $500,000 (1995-1997) for campus improvements incorporates repairs, cost efficient measures and safety isues for the college. A project description and project justification were given for each of the four projects: East Access Road, Extend Energy Management System to Phase II, Exterior Cement Plaster Repairs and Parking Lot Improvements. She explained the 1995-1997 CIP recommended proposal by the Governor for TMCC's Advanced Technology Center. The 1993 Legislative Session approved funding for a portion of the 115,000 square foot building. The second phase will house the college's classroom and lecture rooms, business computing labs, computer assisted drafting labs and computer assisted art labs. The Governor's recommended proposal for the college's Advanced Technology Center will be a partner with TMCC in the state's economic diversification needs. The project will help local businesses provide students with the training and education to be competitive in the 21st century. Mr. Arberry asked whether the new 2 lane road would be expanded to include an emergency access lane. Mr. Eckes stated the road was designed to include a shoulder which would help alleviate some of the campus traffic congestion. Mr. Arberry expressed his concern regarding lighting along the road. Mr. Eckes stated part of the phase included street lights. In response to Senator Rawson's question regarding whether the thoroughfare was part of Ring Road, Mr. Eckes replied it was not. He stated when the new library was planned, it changed the configuration of the campus as well as the Advanced Technology Center, closing off the access spanning north to south. The architects are attempting to move the traffic to the outer boundaries of the campus. The connecting road will complement the ring road. Mr. Eckes added Raggio Parkway will become the main arterial for traffic access to the campus. Senator Rawson asked whether the figures for completion of the Advanced Technology Center were realistic. Dr. Gubanich stated the Governor proposed $11.8 million which should complete the Advanced Technology building. She commented Senator Rawson might be confusing the building with the college's IGT Applied Technology building which was a capital campaign, a joint effort through TMCC and TMCC's foundation. She noted the building was 35,000 square feet and the community had contributed $700,000 for the project. The college was providing a match with their student capital improvement fees ($1.2 million), however, $1.5 million was still lacking for the building. Dr. Gubanich referred Senator Rawson to the blue sheet in the handout for more detailed information on the Applied Technology Center and its four programs. In response to Senator Rawson's question regarding the relocation of the auto program, Dr. Gubanich said it was included in the Regent's Master Project Plan and would relocate their auto center to a different section on the perimeter of the campus. The vacated auto center space will be used for centralization of financial aid services, counseling and a cafeteria. Dr. Gubanich pointed out the brown sheet in the handout contained more detailed information on the subject. CIP PROJECT 95-C16 - NNCC NEW CLASSROOM/OFFICE BUILDING - $1,628,404 Mr. Carl Dickhans, Dean of College Services, Northern Nevada Community College, testified the project request was comprised of 10,000 square feet for classrooms and 8-10 faculty offices. He reported the faculty does not have private offices and presently occupy a partitioned room. Faculty members joining the staff in July 1995 will increase the need for office space. Mr. Dickhans indicated the building was in their Master Plan and ranked fairly high on the space utilization report. He encouraged the committee's support for the project. Senator Rhoads requested additional information on the child care center. Mr. Dickhans reported the center had been largely funded by a donation from Claude Howard and would be open this fall. He noted the college's foundation was working on funding in order to finalize paving, curbs and gutters. In reply to Senator Rhoad's question on whether the Student Center needed remodeling, Mr. Dickhans replied the foundation provided a community center a few years ago. He reported the college theater is presently under construction and is slated to open in the summer of 1995. Money has been raised through the foundation to construct a fitness center in the same complex. Should additional money come forward in the capital improvement, Mr. Dickhans mentioned it would be applied to the renovation of the old Child Care Center that exits in McMullen Hall. He stated it was originally part of the previously mentioned project, however, due to lack of funds, the college made the classroom building their priority. Senator Rhoads asked how the building would be used upon completion of the remodeling. Mr. Dickhans stated it would house the Area Health Education Center, University of Nevada Extension Service and University of Nevada Continuing Education. The agencies are presently located in trailers whose conditional use permits have expired. He added the building will have room for more college office space. Senator Rhoads asked Mr. Dickhans to supply the subcommittee with project shortfalls. Mr. Dickhans said he would comply with the request. Mr. Spitler asked whether the college intended to change their name. Mr. Dickhans said they were presently in the survey stage. The college shares the same initials and is often confused with the Northern Nevada Correctional Center. He noted the final decision would be made by the Board of Regents. Senator Raggio commended the foundation and the community for providing additional funding for the campus. He urged the committee to tour the campus. CIP PROJECT 95-G2, ADVANCE DESIGN OF UNLV LIBRARY - $2,957,417 Mr. John Amend, Associate Vice President for Administration for the University of Nevada Las Vegas (UNLV) introduced Mr. Matt Simon, Dean of Libraries at UNLV. He reported studies were begun in the mid-1980s to assess the adequacy of the UNLV library based on student growth projections. In 1990 the college performed a preliminary study to examine the growth rates of full time students, graduate and doctoral students and faculty. Projected by the year 2015, if the college was to build a completely new facility, a 470,000 square foot facility costing $75 million would be required (projected guesstimate). In 1993, the State Public Works Board commissioned an architectural study in order to examine the entire university system's library needs. From the study, the needs for the UNLV library were established. A site study was conducted to determine whether the existing library facility could be utilized and added onto or whether a new site would be more cost effective. Based on the studies, the college concluded the construction of a new facility was more economically feasible. Mr. Amend indicated the proposal before the committee would provide for the planning, design and contract documents that would take the university to a point where they could bid the project. The college is envisioning a project that would encompass 372,000 square feet of new facility and renovation of 36,000 square feet in one of the existing facilities. The present library is comprised of two separate buildings that are linked together. The newer section of the library that had been built in the early 1980s will be reused. The projected estimate for the project is approximately $62 million. Mr. Amend reported the college received a $10 million gift from the Lied Foundation which will be applied toward the first phase of library construction. The college will be requesting a $27 million appropriation in the 1997-1999 session to help complete the first phase of the library facility. Mr. Arberrry questioned the $75 million figure. Mr. Amend stated the estimate was given some four or five years ago and was an approximation the college did on preliminary guesses. He stated the campus was not willing at that time to go forward to the state with such a request and was more comfortable with a $40 million figure with the possibility of looking at a separate phase in the future. Mr. Hettrick asked whether it would cost $350,000 to design the $500,000 addition, what effect it had on the state and whether ongoing maintenance costs were built in. He asked what effect the $350,000 had on the rest of the plan checks that had been built into the budget. Mr. Amend stated it was the intention of the project to design the entire building up through design development and then take the first phase to contract documents. The $350,000 was a contingency that was inserted prior to the design start which could be reduced when estimates became more realistic during later stages. He added he understood it was not a contingency that went towards designing the remainder of the building. Mr. Hettrick quoted the university's document, "the scope of design will be increased by the amount of any additional donations" and said it appeared to him if the university received another donation they would spend the money and design more buildings. He concluded the state would be in line to increase its share of all the costs. Mr. Simon reported the university had been planning and refining the project for over three years and had been working in a severe deficit situation in terms of their space requirements. The university has 1,008 seats serving 20,000 students and have a major role within the larger community in providing the informational needs not being met by the Clark County Library System or Clark County schools. Mr. Simon predicted the library would be out of storage space for their collection within one and one-half years. He stated he was deeply aware of the state's economic situation in addition to other priorities within the university system and the library had been working hard to achieve other sources of funding from philanthropists and friends of the university. He reported they were proposing a $40 million initial construction and design budget; if another $10 million was received the library would attempt to realize the full program presented by their architects. In reply to Mr. Hettrick's question, Mr. Simon stated further donations would be used to fund the rest of the plan checks. The library would not be taking the total $62 million project to design to be put on the street in July. The library would be looking at taking the portion of Phase I to the street if another $5 or $10 million were to be donated. If the $37 million were to be put out on the street it would include the $10 million donation plus the $27 million requested from the state. If they were to receive an additional $5 million, the library would hopefully be able to design within the $5 million those funds from the contingency as previously referenced for design would be used to accomplish the additional plan check. The plan checks are all formula driven based on square footage; the library would hopefully be building more square footage at that time. Mr. Hettrick stated he appreciated Mr. Simon putting his comments on record; the committee was trying to approve a budget as they saw it, not have it open ended which is the way the contingency appears. Mr. Arberry asked Mr. Amend to report on the Wright Hall renovation and addition. Mr. Amend stated the addition would be used to house anthropology laboratories and the existing space would be renovated for office space. Mr. Arberry questioned whether $25,000 was adequate. Mr. Amend stated the $25,000 would be used for programming; getting the project to the point where it could actually be designed. DEPARTMENT OF ADMINISTRATION, BUILDINGS AND GROUNDS CIP PROJECT 95-C13, REMODEL OLD STATE LIBRARY, PHASE II- $596,546 Mr. Michael Meizel, Administrator of Buildings and Grounds, explained the project was a continuation of the remodeling project presently underway on the building's first floor. The requested funds would cover the remodeling of the remaining three floors in anticipation of occupancy by the Tourism Commission. Nevada Magazine will move into the first floor in late summer upon completion of the first phase. Mr. Rawson believed it would be less disruptive if tenants did not occupy the building until the complete renovation was accomplished. Mr. Meizel stated Nevada Magazine's move had been delayed. He said if the requested funds were approved, the Tourism Commission would move in immediately upon completion. Mr. Spitler asked Mr. Meizel to elaborate on the $202,000 price increase that was being recommended. Mr. Dean Borges, Acting Manager of the Public Works Board, stated the increase corresponded to the stoppage of work and Nevada Magazine move. He yielded to Chris Chimits, Project Architect for the State Public Works Board. Mr. Chimits explained the library structure had varied a great deal from the original plans and the cost increase accommodated the cost of construction to install an air conditioning system that would properly heat and cool the building. He added Public Works currently stopped the architectural portion of the work with the intent of utilizing the savings to pay for the A&E fees corresponding to the unanticipated structure rehabilitation for the second, third and fourth floors of the building. Mr. Arberry asked how the Construction Cost Breakdown estimates were determined. Mr. Chimits stated the numbers were "best estimates" and he was confident the numbers would not remain the same on bid day. It was his feeling the mechanical costs would be significantly higher and the architectural costs lower. He said most of the structural repairs to the building were made during the first phase. The change order money and contingencies were spent on the present project as funded by the 1993 Legislature with the intent of getting most of the structural work completed. Mr. Arberry asked when the correct numbers would be available for the present session. Mr. Chimits stated he could provide a more informed estimate within the next week. CIP PROJECT 95-C14, REMODEL FREMONT FOR STATE MAIL ROOM - $424,778 Mr. Meizel explained Buildings and Grounds was consolidating state mail services contingent upon a new location. The new facility at the old Fremont School would house the OCR bar coder being transferred from the Department of Motor Vehicles. The barcoder requires 2,500 square feet of space. Also filling up the 8,000 square feet would be other pieces of equipment and pallatized state mail awaiting processing. All first class mail will be processed through the bar coder which will presort and determine the lowest discounted rate for mail services. Mr. Meizel indicated the facility would meet their needs for 5 to 10 years. Other positive aspects of the site are its central location and good truck access. Mr. Marvel stated the savings predicted by the auditors could not be found in the budget. Mr. Meizel stated they were trying to work with LCB and the Budget Office to isolate the savings. He said Buildings and Grounds anticipated $270,000 of savings over a two year period. Mr. Marvel asked where they were reflected in the budget. Mr. Meizel replied to his knowledge they were not reflected in the budget; most of the agencies were budgeted for the existing amount of mail they had at the existing prices. Mr. Marvel stated it was presumed the centralization would generate considerable savings. Mr. Meizel believed the Budget Office was presently reworking the figures and agreed to pass on the committee's concerns. Mr. Arberry asked whether the centralization was part of the Master Plan for the Capitol Complex. Mr. Meizel stated the move was recently generated within the last biennium and was not part of the Master Plan for the Fremont School site. Mr. Arberry said the committee understood the building was to be utilized for offices for other agencies and questioned whether the distribution of mail was the best use for the space. Mr. Raymond Crook, Buildings and Grounds staff architect, replied the building was centrally located, had existing asphalt and would be a good investment dollarwise because it lent itself well to mailroom purposes. He said his agency would give the plan closer scrutiny and deliver their findings to the committee at a later date. CIP PROJECT 95, G8 PURCHASE CARSON CITY COURTHOUSE - $743,000 CIP PROJECT S4E, ADVANCE PLANNING: BUY AND RENOVATE CARSON CITY COURTHOUSE AND FIREHOUSE - $40,000 Mr. Meizel testified the state entered a purchase agreement for the acquisition of the Carson City Courthouse and Firehouse in 1991 as an extension of the Capitol Complex site. Mr. Arberry indicated he and other legislators serving during the 1991 session could not recall agreeing to purchase the forementioned property. He noted the agreement had been signed after the session had ended and asked whether the state was locked into the arrangement. Mr. Meizel believed the Division of State Lands would know how the agreement developed and how binding it was. He could not recall participating in the final signature stage. Mr. Arberry stressed the committee needed to know the details. Ms. Mary Walker, Director of Finance and Redevelopment for Carson City, stated she would research the issue. She stated it was Carson City's opinion that the property was purchased by the state and the city was planning on vacating the premises. Mr. Marvel asked how the state intended to use the property. Mr. Meizel said the courthouse was to be used for the Attorney General's office. There has been no specific designation for the firehouse's use. Mr. Meizel promised to work with the Division of State Lands and provide answers for the committee. Mr. Dini said the Capitol Complex plan was created in 1987 in order to preserve the historical integrity of downtown Carson City and the Capitol Complex buildings. He felt the plan had been through adequate hearings and estimated the purchase to have taken place in 1991. Mr. Hettrick asked for the courthouse's square footage and questioned whether the $4 million proposed renovation included the firehouse. Mr. Meizel stated he would supply the information. CIP PROJECT 95-M2, RENOVATE STEWART BUILDING 107 FOR DMV/PS - $374,955 Mr. Meizel stated the building was primarily used by the Department of Motor Vehicles and Public Safety. The mechanical and electrical renovation would allow more divisions of the DMV to occupy the building such as HAZMAT, the Parole Board and investigation agencies. He reported Buildings and Grounds' plans to relocate the Division of Mental Health and Hygiene which presently occupies 4,000 square feet of the building. Mr. Arberry inquired whether rent money would be collected during the renovation. Mr. Meizel replied they would be collecting rent on 90% of the building. CIP PROJECT 95-M9, UPGRADE HVAC TEMPERATURE CONTROLS - $151,460 Mr. Meizel said this was a continuation of some of the projects Buildings and Grounds had been involved in within the past seven to eight years. Direct digital controls (DDC) tie the buildings into a central location where staff technicians (either the heating and air conditioning mechanics and/or the engineer) can monitor all the temperatures. The controls installed in Carson City state buildings have paid far and above in energy savings, maintenance time and have kept staff numbers low. Mr. Meizel pointed out they had duplicated the $25,000 cost of a blower motor and magnetic starter within the Buildings and Grounds Renovation budget and advised the committee they could remove it from CIP Project 95-M9 or budget account 1349. Mr. Arberry asked how projects 95-H3 and 95-H4 related and asked for a breakdown. Mr. Dean Borges, Acting Manager of the Public Works Board, stated there was some overlap regarding the HVAC upgrade and electrical in the 95-H3 program in that it included the cost of the mechanical. The portion for East Sahara should also be removed. Mr. Arberry requested Mr. Borges supply details as to how it would be separated. Mr. Arberry asked for a separate breakdown for the DMV remodel. Mr. Borges agreed to comply. CIP PROJECT 95-M30, MECHANICAL/ELECTRICAL UPGRADE HEROES MEMORIAL BUILDING - $785,436 Mr. Meizel said this was a continuation of the Heroes Memorial complex project. Funds would provide for the replacement of the old HVAC system and upgrade the electrical and fire alarm system. The mechanical upgrade also includes the abandonment of the building's boiler. Mr. Arberry asked whether the renovation would impact the working conditions of the Attorney General's staff. Mr. Meizel stated his agency would take adequate precautions noting the staff had undergone significant duress under the existing system to warrant the welcome of the new installation. CIP PROJECT 95-M38, UPGRADE UNDERGROUND POWER DISTRIBUTION SYSTEM - STEWART - $365,887 Mr. Meizel explained Buildings and Grounds started renovating the power system a number of years ago. He said the project was a continuation of the original renovation and will bring the complex up to date "electrically." CIP PROJECT 95-M40, DEMOLISH AND PLUG STATE'S WATER WELL AT 5TH AND STEWART - $47,830 Mr. Meizel stated the Fifth and Stewart well was no longer utilized by the state. The water rights within the well had been transferred to the Stewart site. The project provides for demolition of the hazardous structure and abandonment of the well. Mr. Marvel asked why the cost was so high. Mr. Borges noted there were hazardous materials such as asbestos and PCBs that increased the cost of the project. Mr. Marvel commented the costs still seemed too high. Mr. Arberry requested Mr. Meizel to address the A&E Design, Surveys and PWB Management Costs. Mr. Meizel assured the committee he would rework the numbers concurring the costs were too high. Mr. Hettrick shared the same concerns with Mr. Arberry. He felt the demolition contract should stand alone without a construction contingency and urged the committee to study the project further. CIP PROJECT 95-M41, CAPITOL COMPLEX GROUNDS REHABILITATION - $425,158 Ms. Walker explained various state agencies have been working with Carson City agencies to redevelop the city from Washington Street to Fifth Street. She displayed a preliminary plan resulting from partnership meetings that had taken place over a two year period. The plan calls for pedestrian safety as well as beautification. Ms. Walker estimated the total project to cost from $2.5 to $3 million and to include re-landscaping medians, the relocation of sidewalks, adding historic lighting and installing landscape buffers between the highway and pedestrian walkways. Carson City is planning on adding $1.5 million to the project and is requesting $500,000 in federal ISTEA grant funds. The city is asking the state for funds to cover the improvements in front of the state buildings including the State Library and Nevada State Museum. She added the mayor has lent his support to the museum's acquisition of Caroline Street worth approximately $150,000 should the agency wish to expand. Ms. Walker indicated the city intends to have the Nevada Department of Transportation perform the work. The project is slated for completion by next summer dependent upon the approval of grant and state funding. Mr. Marvel complimented Ms. Walker for submitting the well-designed plan. DEPARTMENT OF MUSEUMS, LIBRARY AND ARTS CIP PROJECT 95-C17, RAILROAD MUSEUM MAINTENANCE BUILDING, PHASE II - $250,000 Mr. Scott Miller, Administrator for the Division of Museums and History, testified the requested $250,000 was to finance the second phase of the development for the railroad maintenance facility located in Boulder City. The completion of Phase II will allow the museum to go forward with a public/private venture to operate on the railroad line. Mr. Miller reported the funds would be applied to track development, an overhead crane inside the building and the relocation of a fiberoptic electrical line. Mr. Marvel asked for an accounting of the $900,000 provided by the 1989 Legislature. Mr. Miller replied it was accounted for by the Public Works project for the development of the architectural design of the railroad which included the existing property and proposed extension of the rail line from where they currently terminate to the Clark County Heritage Museum in Henderson. Mr. Miller indicated the museum was still holding the $752,000 that was given by the Transportation Commission as a grant in 1989. In reply to Mr. Arberry's question regarding the project's original architect, Mr. Miller answered DeLorenzo Stika designed the building and several subscontractors were involved. Mr. Marvel asked how much money was estimated to be invested in the project once it was completed. According to 1991 dollars, Mr. Miller reported the total cost to be $22 million. He stated the agency did not intend to pursue completion at any great rate of speed. The original building would have been capable of phased construction in order to allow a modest approach and gradually augmented should it be of interest to the Legislature over time. The agency's main intent is to construct the maintenance facility in order to operate the existing 80 pieces of rolling stock and related track maintenance equipment purchased during the course of the last two years. Mr. Miller indicated the $1.1 million worth of equipment secured by funds from Boulder City, Henderson and Clark County was presently housed on site. In reply to Mr. Marvel's question regarding operational track, Mr. Miller replied the railroad has four actual useable miles. Mr. Marvel asked whether the track was being used. Mr. Miller stated they have solicited a private firm that is interested in utilizing the track for a lease-basis venture. He reported contract arrangement negotiations were presently underway. CIP PROJECT 95-M29, PROTECT ADOBE STRUCTURE AT LOST CITY MUSEUM - $174,136 Mr. Miller reported the museum had a history of adobe structural problems. The museum had attempted to preserve the building from the deterioration process. Mr. Mel Green, an architectural authority for historic structures, had submitted the estimate of $174,136 for the completion of the total restoration of the existing adobe in addition to correcting the drainage problems. He pointed out the project was designed to restore the building, however, did not prevent damage from reoccurring. Mr. Miller added the museum will take precautions to prevent deterioration over time to the best of their ability. CIP PROJECT 95-C12, ELKO OFFICE EXPANSION - $139,951 Mr. Peter Morros, Director of the Department of Conservation and Natural Resources introduced Pat Murphy, Deputy Staff Forester and Richard Thornhill of the Division of Forestry. Referring to an error on page A68 of the Executive Budget, Mr. Morros noted the request was for 1,100 square feet, not 11,000 square feet. He reported the existing Elko office was no longer adequate for the division's needs. The present 1,200 square foot office houses a regional forester, receptionist, resource assistant, battalion chief and two seasonal staff persons. Referring to the 1991 estimated cost of the project as being $74,125, Mr. Arberry asked why the 1995 figure had escalated to $136,951. Mr. Murphy could not offer an explanation and informed the committee he would supply the figures at a later time. Mr. Arberry asked whether the construction costs provided for wages for the honor camp crews. Mr. Murphy believed the honor camp crews would be absorbing the costs. Mrs. Chowning asked whether the costs were already in the honor camp budget. Mr. Thornhill stated the costs would be on top of the regular NDF budget. Mrs. Chowning indicated the committee needed to make sure the wage costs were not duplicated in the two budgets. CIP PROJECT 95-M19, RENOVATE KYLE CANYON FIRE STATION - $63,546 Mr. Morros testified the request provided for renovation of the Kyle Canyon Fire Station. Mr. Arberry asked whether Honor Camp crews would be utilized. Mr. Murphy stated conservation crews would not be involved; the department would be contracting out for the repair of the electrical system and replacement of the exterior staircase. In response to Mr. Arberry's question regarding ownership of the facility, Mr. Murphy stated it was state-owned. Mr. Murphy acknowledged $26,000 was utilized to re-roof Kyle Canyon. CIP PROJECT 95-M22, CONSERVATION CAMP FORESTRY SHOP EXPANSIONS - $359,242 Mr. Morros stated the request dealt with the construction of three metal buildings to be erected by Honor Camp crews in Jean, Ely and Silver Springs. He distributed a handout describing the Public Works projects (Exhibit F). Mr. Murphy reported Forestry presently shares a multi-purpose building at Jean in order to maintain equipment. He stated Forestry has only one mechanic for the entire southern region who is responsible for approximately 60 pieces of state equipment. Addressing Mr. Marvel's question pertaining to 26 newly requested buses, Mr. Murphy said eight buses were presently out of service and could not be repaired. Mr. Marvel asked whether the camp was slated to be closed. Mr. Murphy stated the department believed Forestry would still have presence in Jean as the mechanic would remain to service equipment from the Pioche, Indian Springs and Tonopah camps. Mr. Marvel suggested moving the mechanic to one of the forementioned camps. Mr. Murphy replied it would be a possibility and would take Mr. Marvel's suggestion into consideration. Mr. Morros commented the Jean Camp was not anticipated to be closed when the Executive Budget was being prepared. In reference to the Ely shop, Mr. Morros reported the facility to be extremely primitive. Mr. Hettrick requested an explanation of the two donated buildings, the testing services and justification for the $12,000 remote site costs. Mr. Morros said of the two donated buildings, one is composed of only the frame and the other is complete. Mr. Hettrick asked why design and remote site costs were included if honor camp crews were performing the construction. Mr. Borges indicated the labeling was incorrect and confusing. He said plans and specifications for remote site buildings were needed for bidding purposes. Mr. Chris Chimits, Project Architect for the State Public Works Board, acknowledged Mr. Hettrick's statement regarding the unnecessary design costs was correct; the foundations, however, required the services of a structural engineer for design and construction documents. Mr. Chimits believed the remote site costs could be reduced and assured the committee Public Works would re-examine the A&E design and supervision fees. Mr. Hettrick noted he was not concerned with the soils analysis test, however, he needed a more detailed explanation for the $10,000 testing cost. Mr. Chimits replied the $10,000 would cover the concrete coring and compression testing and agreed the figure was high for a 1,900 square foot building. CIP PROJECT 95-E1, ADDITION TO CASUAL LABOR OFFICE, RENO - $200,000 Mr. Eugene Foster, Special Projects Coordinator for the Employment Training and Rehabilitation Department, stated the request would provide for the addition of 2,000 square feet to the Casual Labor office. The expansion would accommodate the office's client workload and would include additional parking, security fenced storage, ADA improvements to the structure, the addition of showers in the restrooms and an expanded waiting area. CIP PROJECT 95-E2, ADDITION TO ESD FALLON OFFICE - $200,000 Mr. Foster reported the requested 2,000 additional square footage would allow for the relocation of the Rehabilitation and Bureau of Services to the Blind staff from downtown Fallon into the facility. He indicated the co-location was part of the department's organizational restructuring and consolidation of services within a central location. In response to Mr. Arberry's question regarding the current number of staff members located in the current building, Mr. Foster replied the eight employees were housed in 1,320 square feet. Mr. Arberry asked whether the department's 1995-97 biennium budget provided for additional staff. Mr. Foster replied not in Fallon. CIP PROJECT 95-SD4, ADVANCE PLANNING - ETR HEADQUARTERS BUILDING - $60,000 Mr. Foster indicated he had worked on the ETR Headquarters Building project since 1975 when it was the ESD Building on 500 East Third Street. He indicated the staff outgrew its office capacity in 1985, forcing the department to lease additional space in the community. As part of the department's organizational restructuring, the Carson City staff, with the exception of the service delivery staff, would be housed in the new central facility. Noting the project was 100% General Funded, Mr. Arberry asked whether federal funds could be solicited in order to supplement the project. Mr. Foster reported the department was 93% federally funded and there were existing funds within the Employment Security account amounting to $6 million which were dedicated to that use. The additional funding which would be available from the disposal of the present ESD Building can be transferred to the construction and the ESD buildings in Las Vegas and Reno are scheduled for surplusing. The funds generated for their disposal would be added to the ETR Headquarters Building. Approximately half of the funding would be immediately available. CIP PROJECT 95-M1, REPLACE COMPUTER FACILITY SECURITY ALARM - $60,031 Ms. Karen Kavanau, Director of the Department of Information Services, introduced the department's Chief Accountant, Dave Lawson. She explained the department intended to replace the security system for the computer facility. Mrs. Chowning asked why the state had to pay $5,000 for design services. Mr. Jim Schneider, electrical engineer for the State Public Works Board, responded the system was not adequate enough to protect the facility. Mrs. Chowning said the matter should be further explored and requested more information be supplied to the committee. CIP PROJECT 95-M5, DIESEL GENERATOR FOR COMPUTER FACILITY - $137,557 Ms. Kavanau reported the manufacturer had gone out of business and the generator had deteriorated, reached capacity and was creating problems for the department. She stated the system needed replacing. In response to Mr. Arberry's question regarding diesel tanks, Mr. Schneider stated the unit had a diesel tank in the ground that was still useable. The new unit would be larger and would satisfy a number of requirements to correspond with the increased equipment load expansion. Mr. Arberry questioned the $12,000 cost for A&E design fees. Mr. Schneider replied this was normal for a unit of its size. CIP PROJECT 95-S4F, ADVANCE PLANNING-INFORMATION SERVICES OFFICE BUILDING - $20,000 Ms. Kavanau testified the Governor is proposing a study to evaluate alternatives for the Department of Information Services (DIS). She noted they were partially relocating their operation as they have totally outgrown the space they occupied one year ago in the Kincaid Building in Carson City. The office would like to find an alternative office site in order to have most of the DIS staff in one location or major functional groupings. She added they were looking into the possibility of occupying the ESD Building. The committee adjourned at 11:10 a.m. RESPECTFULLY SUBMITTED: _________________________________ ___ Janine Sprout, Committee Secretary Joint Meeting of Assembly Ways and Means and Senate Committee of Finance March 29, 1995 Page