MINUTES OF MEETING OF COMMITTEE ON WAYS AND MEANS AND SENATE FINANCE JOINT SUBCOMMITTEE ON HIGHER EDUCATION AND CAPITAL IMPROVEMENTS Sixty-eighth Session June 15, 1995 The meeting of the Committee on Ways and Means and the Senate Committee on Finance Joint Subcommittee on Higher Education and Capital Improvements was called to order at 9:25 a.m., on Thursday, June 15, 1995, Chairman Arberry presiding in Room 352 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. ASSEMBLY COMMITTEE MEMBERS PRESENT: Mr. Morse Arberry, Jr., Chairman Mrs. Vonne Chowning Mr. Joseph E. Dini, Jr. Mr. Thomas A. Fettic Mr. Lynn Hettrick Mr. John Marvel SENATE COMMITTEE MEMBERS PRESENT: Senator William J. Raggio Senator Raymond D. Rawson Senator Dean A. Rhoads Senator Bob Coffin STAFF MEMBERS PRESENT: Gary Ghiggeri, Deputy Fiscal Analyst Dan Miles, Fiscal Analyst CAPITAL IMPROVEMENT PROGRAM - 1995-97 Mr. Ghiggeri explained the CIP changes to the committee detailed in Exhibit B. He stated the first groupings of projects dealt with the Division of Buildings and Grounds and went into detail regarding the remodel of the Old State Library, Phase II (95- C13). Subsequent to the printing of the Executive Budget, the Fiscal Division staff received information from the Public Works Board that indicated the project should be increased to accomplish seismic strengthening of the building. Information was provided indicating once the construction crew began work it was discovered additional work was required. Referring to project 96-M9, Mr. Ghiggeri said previously budgeted HVAC renovation for the Campco Building was eliminated due to duplication in the Buildings and Grounds budget. Other adjustments in the Buildings and Grounds portion of the projects were basically technical in nature. In summation, Mr. Ghiggeri reported there would be an increase of approximately $132,000 over what was originally recommended by the Governor of which $89,000 is General Fund and $43,000 is Highway Fund. In regard to Conservation and Natural Resources, Mr. Ghiggeri indicated there were some reductions in projects 95-C12 (Elko office expansion), 95-M19 (renovate Kyle Canyon Fire Station) predicated on revised information from the Public Works Board and project 95-M22 (Conservation Camp Forestry Shop Expansion) had been adjusted to reflect construction of a storage building at the Jean Camp. Information received from the Public Works Board and the Department of Conservation and Natural Resources indicated that the two buildings to be constructed at the Ely Camp were not owned by the state and, therefore, the project was withdrawn. The building for the Silver Springs Camp was not clearly defined in respect to its utilization and was not included in the recommended projects. Mr. Ghiggeri noted these actions represent a reduction in General Fund cost of approximately $284,000. In respect to the Department of Employment and Rehabilitation CIP projects, Mr. Ghiggeri reported the only change provides for a substitution of employment security funds for General Fund for the advance planning of the Employment Training and Rehabilitation headquarters building (95-S4D). Information was received from the department indicating they had $60,000 in their Penalties and Interest Account that could be utilized resulting in a savings in General Fund dollars of approximately $60,000. Mr. Ghiggeri explained there were a number of projects included in the Department of Human Resources Department. Certain adjustments were made based upon revised information received from the Public Works Board indicating their review of the original estimates. Mr. Ghiggeri stated project 95-C3 (addition to Lakes Crossing) was increased by approximately $566,000 based upon information received from the Acting Director of the Division of Mental Health and Mental Retardation indicating additional funding was required to provide a secure intake and expand the visiting area. Project 95-C11 (Dining Room Building at Youth Center - CYC) appears to show an increase of approximately $752,000 and is basically a combination of projects 95-M15 (Refurbish Dormotories) and 95-M17 (Refurbish Kitchen). Information was provided by the Public Works Board that indicated if the 3 projects were combined, a savings of approximately $150,000 could be realized. Projects 95-M15 and 95-M17 reflect a reduction of $750,000 and $152,000 respectively. Project 95-M20 (NMHI Maintenance and Renovation) has been adjusted based upon a request by the Acting Director of Division of Mental Health and Mental Retardation to implement some of the recommendations as contained in the study that was done on that facility over the 1993-95 biennium. The funding would provide for enhancements and improvements in Building 8 and Building 5 which are patient treatment areas. All other projects as recommended in the Executive Budget for the facility are continued to be recommended. Project 95-L2 provides $60,000 for the Public Works Board to continue a study of the facility and determine which way to proceed at that location. The revised recommendations for the Department of Human Resources reflect an increase of approximately $259,000. The projects within the Department of Human Resources have been adjusted based upon revised recommendations received from the Public Works Board. In regard to the Department of Military, the reductions for projects 95-C8 (Southern Nevada Armory) and 95-C9 (Northern Nevada Armory) reflect the addition of those projects in S.B. 413. The reduction in project 95-M28 (Exterior Painting of Armories) reflects the deletion of the painting of the Las Vegas Armory. There was funding provided in S.B. 413 to build a new armory in Las Vegas, however, information indicated (based upon building the armory) the National Guard would be vacating the space. Funding was left in for painting and kitchen renovation at the Reno Armory even though funding was provided from the state to replace the Reno Armory. Information was provided which indicated the federal funding was still tentative for the Reno Armory, and Public Works Board representatives had requested the funding be left in and indicated if the armory replacement went forward they would not utilize the funding. Mr. Ghiggeri noted the adjustments to this group of projects was basically illusionary because 95-C8 and 95-C9 were funded in S.B. 413. In regard to the Department of Motor Vehicles and Public Safety CIP projects, Mr. Ghiggeri suggested the committee discuss projects 95-H1 (DMV Full Service Facility, Henderson) and 95-H2 (Renovate Headquarters, Carson City). He brought special attention to 95-H4 (Renovate Highway Patrol Office Space, Las Vegas) in which additional funding had been provided to enhance the security of the Highway Patrol building in Las Vegas and in which equipment that was not required was deleted. Senator Raggio suggested Mr. Ghiggeri present his entire report and questions be asked when he had ended. Within the Department of Prisons projects, Mr. Ghiggeri indicated the most important items were the addition of Housing Unit Number 5 at the Lovelock Correctional Center (95-C1) and the deletion of the boot camp expansion at Indian Springs Conservation Camp (95-G4 - predicated upon operating funding not provided to expand the camp). Project 95-G1 (Men's Prison #7, Phase I Design & Site Costs) reflects the elimination of funding. The funding for the project is included in S.B. 278. Additionally, $790,000 for the design of Lovelock, Phase II is also included in S.B. 278 and should be processed. Other adjustments noted in the prison projects are the fine tuning of estimates based upon responses to questions asked of the Public Works Board. The Prisons Facilities Study (95-S4H) is not recommended for funding and represents at $200,000 reduction. Referring to Statewide Projects, Mr. Ghiggeri said the funding is provided to the Public Works Board. An adjustment to Project 95-S1 (Roofing) is based upon a revised estimate provided by the Public Works Board. The energy retrofit (95-S8) coordination has been deleted based on information provided from the Public Works Board indicating bond funding would be utilized to coordinate the study. The physical security upgrades (95- S9)funding for identified projects has been provided in A.B. 253 which enables the state to maximize the use of federal funds. The remaining funding included in the project did not address the specific projects and was not recommended. The CFC conversion, project 95-S10, is recommended that the known projects be funded at this time and funding be provided for a statewide study for the Public Works Board to determine the size of the project (95-S11) and approach the 1997 Legislature with a more comprehensive plan. The seismic safety work project is not recommended for funding. Additional funding was provided in project 95-C13 for the Old State Library for seismic strengthening. The adjustments to this group of projects reflect a reduction to the General Fund of approximately $1.1 million and an addition to the Highway Fund for approximately $64,000. Mr. Ghiggeri reviewed the University and Community College System CIP projects. He reported project 95-C4 (F/E Cheyenne & W. Charleston Campuses - CCSN) was funded in A.B. 193. The UNR Education Building, project 95-C7 was increased by approximately $1.9 million to provide for construction and the furnishing of a 10,000 square foot fourth floor Math and Science Center for approximately $1 million and the construction of the Instructional Auditorium and Conference Center for approximately $928,000. Testimony provided to the subcommittee regarding Project 95-S4A, the advance planning for the Henderson Campus, Phase III, indicated the increase in funding ($240,000) will provide for completion of the project by the summer of 1999. Project 95-L1 provides $1 million for advance planning through construction documents for Phase IV at West Charleston. Projects 95-L3 through 95-L11 represents the university's recommendations for expenditure of projected special higher education capital construction funding totaling approximately $3.6 million. Mr. Ghiggeri noted the first page of the handout provided a comparison of the original Public Works Board recommendations, the Governor's recommendations and the revised recommendations including projects funded in separate pieces of legislation. He noted the difference of $17,632,432 more was expended based on these recommendations than was originally recommended by the Governor. Referring to page 4, project 95-H1 (DMV Full Service Facility, Henderson), Mr. Marvel said his constituents felt the proper site had not been selected for the Henderson facility. He suggested the authorization be maintained and IFC be approached should there be changes regarding the location. Senator Raggio stated he was convinced the facility was needed, and recommended the funds be approved with the final site selection reviewed by the Interim Finance Committee. Mr. Arberry said the concern was the facility did not service the people of Green Valley or Henderson and reported legislative representatives of the area were in agreement with Mr. Marvel's suggestion. In respect to project 95-H1, Mr. Arberry noted the fiscal staff had put in a reduction of $123,000 dealing with an inflation factor of 10.25 percent for the land acquisition and asked for an explanation from Public Works. Mr. Eric Raecke, Manager of the State Public Works Board, replied the price of land had been provided by the Department of Motor Vehicles. Mr. Arberry indicated the original price had been $5.50 per square foot and asked whether there should be an inflation factor of 10.25 percent added. Mr. Raecke answered it depended on whether or not the land was purchased soon; he remarked the number would not change. Mr. Arberry pointed out the number had been reduced from $8.00 a square foot and asked Mr. Raecke to present a realistic figure. Mr. Raecke said he would like to leave the number in as the property had not yet been purchased; the board could always revert the money. He reported it could be a year before the site was purchased and the board could decide to change sites. Senator Raggio asked whether leaving the discussion open in regard to fixing the site caused any problems. Mr. Raecke said it did not cause a problem. Mrs. Chowning said the issue also pertained to Laughlin residents. She asked if chemical contamination reports with respect to the site had been addressed. Mr. Raecke said the actual site was two miles west of the Pepcon plant and is at a higher elevation, however, a soils testing team would be sent in to examine the site. SENATOR RAGGIO MOVED PROJECT 95-HI BE AUTHORIZED AT $5,310,981 SUBJECT TO ANY ADJUSTMENT IN PROPERTY COST AND THE FINAL SITE AUTHORIZED BE SUBJECT TO APPROVAL BY THE INTERIM FINANCE COMMITTEE. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Senator Raggio, referring to Project 95-H2 (Renovate DMV Headquarters, Carson City), pointed out there was some appetite for erecting a separate free standing building for the function of motor vehicle registration licensing at a cost of $1.8 million. Mr. Marvel asked Public Works to provide an estimate of recommended square footage. Mr. Dean Borges, Deputy Manager of the Public Works Board, replied 15,000 square feet would serve the upstairs registration and what is now the driver's license area on the first floor and was projected to cost approximately $1.8 million. Mr. Arberry asked Mr. Raecke to provide a time line for construction. The building would take approximately 16 months to construct. Mr. Arberry asked whether repaving the parking lot and filling in the atrium in the existing building could be included in the project. Mr. Borges stated the tasks outlined by Mr. Arberry were not included in the estimate. Senator Raggio felt there needed to be an estimate of what was absolutely necessary in respect to the existing building in addition to advance planning for renovation once those functions (Driver's License and Registration) were moved out of the building. Mr. Raecke said the cost of finishing the courtyard for offices was approximately $365,000 and could be accomplished while the free standing building was being built. The advance planning study was estimated to be around $20,000 to $30,000. Mr. Raecke could not supply Senator Raggio with costs of the necessary remodeling. Mr. Arberry asked whether the $81,000 for the parking lot was included in the $1.8 million. Mr. Raecke replied the parking lot repaving was intended for motorcycle testing and that part of the cost would be covered by the department's own funds. Mr. Borges testified statewide paving funds had already been allocated for the repaving the front area of the DMV on Wright Way. Mr. Raecke stated if the projected included $1.8 million for the construction of a new building, $365,000 to enclose the courtyard, $30,000 for a planning study, $81,000 for parking and immediate renovation needs roughly totaling $250,000, the total would amount to approximately $2.5 million. Mr. Marvel asked whether the plan introduced by Senator Raggio would reduce the amount. Mr. Raecke said it would be reduced by $1.3 million. Senator Raggio asked whether the courtyard project would be a temporary phase. Mr. Raecke said it was a good plan in that it provided a space for provisionary offices. MR. HETTRICK MOVED TO APPROVE CONSTRUCTION OF THE NEW 15,000 SQUARE FOOT BUILDING FOR $1.8 MILLION, ENCLOSE THE COURTYARD FOR $365,000, USE EXISTING FUNDING FOR PAVING THE PARKING LOT AND INCLUDE $30,000 FOR THE STUDY AND $250,000 FOR REPAIRS TOTALING $2.5 MILLION. MR. FETTIC SECONDED THE MOTION. Mrs. Chowning asked about compliance with the Americans with Disabilities Act requirements. Mr. Ghiggeri said the construction of the free-standing drivers license registration would designate all services to one level. The enclosure of the courtyard would provide additional office space and would not cause the public to change levels. The advance planning of the building will have to take into consideration the current size of the present elevator and necessary adjustments will have to be made when the remodel of the building is funded. THE MOTION CARRIED UNANIMOUSLY. Mr. Arberry turned the committee's attention to project 95-H3, the East Sahara DMV office in Las Vegas, noting there was a rumor that it would be closed should the Henderson office be constructed. Mr. Frank Adams, Acting Chief of Administrative Services of the Department of Motor Vehicles and Public Safety, stated there was no intention to close the East Sahara office. He added the office needed remodeling and was vital to their operation in southern Nevada. In respect to the Department of Prisons, Mr. Marvel asked whether any consideration had been given to a prison industry program at the Lovelock Correctional Center. Mr. Raecke replied $1.6 million was being used to convert the building to industrial use at approximately $40 a square foot. Mr. Howard Skolnik, Assistant Director, Prison Industries, stated the building should be designed for generic industrial uses to allow for potential changes in the future. Prison Industry's intentions are to lease the space out to private manufacturers and use inmates as their workforce. Chairman Arberry asked the committee to turn their attention to the Public Works Board. There were no questions by committee members. Referring to the University and Community College System, Senator Rawson noted the road associated with Truckee Meadows DRI was unsafe and needed to be completed. SENATOR RAWSON MOVED TO COMPLETE THE ACCESS ROAD TO TRUCKEE MEADOWS COMMUNITY COLLEGE FOR $1.7 MILLION. MR. MARVEL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Senator Rawson raised the subject of the Community College building at Summerlin stating planning money was needed for a 30,000 square foot building. MR. MARVEL MOVED TO APPROVE $300,000 FOR THE PLANNING OF A COMMUNITY COLLEGE BUILDING AT SUMMERLIN. MR. HETTRICK SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Mr. Hettrick pointed out a site had been donated in Douglas County for a Western Nevada Community College (WNCC) campus. He suggested matching funds be provided due to the growth projected for the county; there is no college campus within the county other than a rented building. A $1 million dollar site has been donated for a WNCC campus with the provision construction begin within 3 years. MR. HETTRICK MOVED TO APPROVE $1.5 MILLION IN MATCHING FUNDS FOR THE 15,000 SQUARE FOOT COMMUNITY COLLEGE BUILDING IN DOUGLAS COUNTY. Senator Raggio asked about the likelihood of Douglas County collecting matching funds. Mr. Hettrick reported Harvey's at Lake Tahoe had donated $100,000 to the project; $250,000 had already been raised. Mr. Hettrick felt other casinos at Lake Tahoe would follow the example of Harvey's. MR. MARVEL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Chairman Arberry presented a request for $500,000 to study the feasibility of a law school at UNLV. Senator Raggio said he supported the concept and asked Mr. Richardson to refresh his memory as to what had occurred several sessions ago. Mr. Richardson, representing the University of Nevada, responded the initial figure was $500,000 and later reduced to $250,000 due to problems at the end of the 1991 legislative session. The money was later returned because of the subsequent recession. MR. MARVEL MOVED TO APPROVE $500,000 TO CONDUCT A FEASIBILITY STUDY FOR A PROSPECTIVE LAW SCHOOL IN SOUTHERN NEVADA WITH INTERIM FINANCE COMMITTEE APPROVAL OF PARAMETERS AND EXPENDITURES. MR. HETTRICK SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. SENATOR RHOADS MOVED TO APPROVE $660,000 TO COMPLETE CONSTRUCTION OF A BUILDING AT THE NORTHERN NEVADA COMMUNITY COLLEGE. MR. MARVEL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Referring to the advance design at the UNLV library (project 95- G2), Mrs. Chowning asked the committee to address the appropriation and asked whether it would be enough to complete the total design of Phase II. Mr. Norval Pohl, Interim Vice President for Finance at UNLV explained the library design was envisioned in two stages. Phase I was approximately 250,000 square feet and Phase II was 100,000 square feet. The allocation proposed in the project would encompass all of the design of Phase I; nearly $400,000 is available to begin the Phase II design. He pointed out the university would actively solicit donations and there was optimism that there would be sufficient donations to actively move ahead with Phase II. Senator Raggio asked for the cost of the proposed building at the Desert Research Institute. Mr. Jim Turanick, President of the Desert Research Institute, reported the cost of the additional 20,000 square feet was $2.4 million. The difference is contained mostly in terms of the actual construction of the building and complete finishing of the 20,000 square feet so offices would be usable. Mr. Turanick said the plan was to finish a shell. He added a study by the Public Works Board indicated DRI would need 65,000 square feet to accommodate both of the two major programs at the Stead Science Center in the proposed new building. If only the 40,000 square feet is completed, one of the programs will remain at the Stead Science Center. DRI is requesting to finish the 20,000 square feet to a total of 60,000 square feet in order to move all of the persons occupying the Stead Science Center to the Northern Nevada Science Center, Phase I. Senator Rawson suggested rather than just completing the shell, funds should be made available to complete the building. Mr. Turanick projected an additional $2.5 million would be needed to complete retrofit on the Stead Science Center building to meet ADA requirements. Mr. Hettrick asked if the request for $2.4 million was to complete the shell or complete the interior including equipment. Mr. Turanick replied the $2.4 million would complete the building including the equipment. In respect to the $400,000 cost at the Stead Science Center, Mr. Turanick said the amount would be eliminated if everyone could be moved to the new site. He said the new Phase I would require approximately $300,000 for operational maintenance (not currently in DRI's budget). Mr. Hettrick asked for the bottom line in respect to savings. Mr. Turanick stated DRI did not have any O&M for northern Nevada facilities and would have to take the O&M out of the money normally given to principal investigators who write proposals. SENATOR RAGGIO MOVED TO DEFER THE APPROPRIATION. SENATOR RHOADS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Chairman Arberry brought the committee's attention to Project, 95-G7, the legislative building expansion. Senator Raggio recommended deferring action on the project as he did not feel the votes were in the Senate to include this without having a full understanding of the Legislature's final budget actions. Senator Raggio felt the project was worthy and suggested it be reviewed at a later time. SENATOR RAGGIO MOVED TO DEFER PROJECT 95-G7. Chairman Arberry hoped the Senate would consider the growth of the state and corresponding increase in legislative members and supporting personnel when making their decision. MRS. CHOWNING SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Chairman Arberry addressed the Nevada State Railroad Museum project and asked the committee to approve $360,000 for storage of the trains in Carson City. Mr. Dini pointed out much of rolling stock was constructed of wood and was deteriorating due to the weather. Mr. Arberry said the funds would cover the costs of sprinkler systems in the existing building. MR. DINI MOVED TO INCLUDE $360,000 IN THE CIP PACKAGE FOR THE NEVADA STATE RAILROAD MUSEUM. MR. HETTRICK SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. HETTRICK MOVED TO ACCEPT THE CIP PACKAGE, ADDING THE NEVADA STATE RAILROAD MUSEUM $360,000 APPROPRIATION AND DEFERRING THE LEGISLATIVE BUILDING EXPANSION DECISION TO CORRESPOND WITH THE CLOSING OF THE BUDGET. SENATOR RHOADS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. The meeting adjourned at 10:45 a.m. RESPECTFULLY SUBMITTED: Janine Sprout, Committee Secretary Assembly Committee on Ways and Means June 15, 1995 Page