MINUTES OF THE SENATE COMMITTEE ON NATURAL RESOURCES Sixty-eighth Session June 19, 1995 The Senate Committee on Natural Resources was called to order by Chairman Dean A. Rhoads, at 2:35 p.m., on Monday, June 19, 1995, in Room 224 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Senator Dean A. Rhoads, Chairman Senator Lawrence E. Jacobsen, Vice Chairman Senator Mark A. James Senator Mike McGinness Senator Ernest E. Adler Senator John B. (Jack) Regan Senator O. C. Lee STAFF MEMBERS PRESENT: Fred Welden, Chief Deputy Research Analyst, Legislative Counsel Bureau Billie Brinkman, Committee Secretary OTHERS PRESENT: Gordon DePaoli, Lobbyist, Park Cattle Company Brian Chally, Deputy District Attorney, Douglas County Pamela Drum, Environmental Information Coordinator, Tahoe Regional Planning Agency Rochelle Nason, Lobbyist, League to Save Lake Tahoe Bob Loux, Executive Director, Agency for Nuclear Projects Willie Molini, Administrator, Division of Wildlife Chairman Rhoads opened the hearing on Assembly Bill (A.B.) 12. ASSEMBLY BILL 12: Authorizes construction and maintenance of storm water treatment and disposal facilities within Lake Tahoe Basin. Gordon DePaoli, Lobbyist, Park Cattle Company, explained A.B. 12 concerns a regional storm water treatment agreement in the vicinity of Stateline, Nevada. The parties to that proposed agreement are Park Cattle Company (landowner in the area), Caesar's Tahoe, Harvey's Resort Hotel, Lake Tahoe Horizon, Harrah's, Douglas County, Nevada Department of Transportation (NDOT) and First Interstate Bank of Nevada. Mr. DePaoli said this bill was originally introduced in the Assembly for the purpose of moving all the involved parties in the direction of getting an agreement in place so the construction and maintenance of a storm water treatment and disposal facility within the Lake Tahoe Basin could go forward. The original measure included a deadline for the agreement which essentially stated that if there was not a document in place by October (1995), Douglas County would be required to build and operate this system. He told the committee there are a number of problems with going at it that way. Throughout the spring, an Assembly subcommittee worked to try to get an agreement in place, according to Mr. DePaoli, and there is a draft agreement with some minor changes; virtually everyone is willing to sign and participate. Mr. DePaoli said when that agreement draft was in place, Brian Chally, Deputy District Attorney, Douglas County, and the deputy attorney general with NDOT, requested a meeting with himself, the drafter of the agreement, to discuss possible pitfalls. He indicated they, as government entities, would be contributing to some common facilities, and the two main pitfalls which concerned them relative to their participation could be the requirement of public bidding and application of the (Nevada) statutes concerning prevailing wage. Mr. DePaoli said the government entity participation in the common facilities is about 13 percent which meant that their small participation might substantially increase the cost of the common facilities for the rest of the participants. Mr. DePaoli stated it was at that point that it was decided that A.B. 12 could be amended to make it a special act to apply to this very unique situation in the Stateline area at Lake Tahoe. It could also provide the minimal exemptions to both the public bidding statute and the prevailing wage requirement. Mr. DePaoli commented, if this is not possible, then it would have to be rethought how Douglas County and NDOT could participate in the project or perhaps leave them out of the project entirely, which is not good because the project can be moved along more quickly in this fashion. Mr. DePaoli remarked the support of this committee is asked for A.B. 12 in its present language. He said, in the meantime, the review process has begun on the proposed project although there is not yet an agreement in place. Brian Chally, Deputy District Attorney, Douglas County, said he wanted to add two points. One reason his office asked to go forward with A.B. 12 is that under chapter 277 (NRS) with cooperative agreements, a governmental entity can only enter into a cooperative agreement with another governmental entity, so they cannot participate under the standard procedure in a public/private arrangement. Mr. Chally said they were looking at A.B. 12 as their authorization. In addition, it probably would disproportionately increase the costs of the project if purchasing and prevailing wage statutes have to be applied. Effectively, that will leave both the county and the state on their own to construct their own systems and not participate in what is probably the most efficient, cheapest way of doing such a project. Senator Regan asked what the estimated total cost of the project would be. Mr. DePaoli replied the common facilities will be on the Edgewood Golf Course and that cost will be in the neighborhood of one-half million dollars. The bigger expenditures are on the pre-treatment facilities that will have to be installed in the roads or in the parking lots of the hotel/casino properties. He did not have the approximate cost for that portion of the project. Private facilities will pay 87 percent of the project cost and the county/state will pay the remaining 13 percent. Senator Jacobsen inquired if it will be necessary to tie California into this system. Mr. DePaoli replied it would not. Senator Jacobsen asked further if the sewage would be treated so it could go back into Lake Tahoe. Mr. DePaoli said the idea is essentially that this system will be pretreated, go into holding ponds on the golf course, and during the summer season, be used for irrigation there. In the off- season, the ponds will be drawn down to virtually nothing so they can handle a particular design storm and then flows would be by-passed and go through the pond system, then into Lake Tahoe. Senator Jacobsen suggested a letter of intent be drawn allowing the 4-H Camp to use some of the reclaimed water for watering purposes. Mr. DePaoli said it could be investigated. Pamela Drum, Environmental Information Coordinator, Tahoe Regional Planning Agency (TRPA), testified in support of A.B. 12. She noted the target date of October, the language of the original bill, has been amended out. She said it was important that everyone concerned keep in mind the urgent nature of completing the project. She expressed the TRPA will continue to work with the involved parties to make sure this project is completed in a timely fashion. Ms. Drum said the TRPA would review the final designs of the project to see if it would be a feasible option to share the reclaimed water with the Boy Scout Camp. Further conversation prevailed between Senator Jacobsen and Ms. Drum concerning drainage in the Lake Tahoe Basin. Rochelle Nason, Lobbyist, League to Save Lake Tahoe, came forward in support of A.B. 12. She said her agency shares the concern of TRPA over the October date being amended out of this measure. She remarked the bill was designed to put additional time pressure onto the project, which she believes is overdue. Chairman Rhoads asked for a motion on A.B. 12. SENATOR McGINNESS MOVED TO DO PASS A.B. 12. SENATOR REGAN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Chairman Rhoads opened the hearing on Assembly Bill (A.B.) 130. ASSEMBLY BILL 130.: Transfer agency for nuclear projects to office of governor. The chairman told the committee this measure was in the budget in the Senate Committee on Finance, but this committee has been requested to obtain amendments to A.B. 130 which are outlined (Exhibit C) and before the committee. Chairman Rhoads reminded the committee that the Nuclear Projects Office had been under the Department of Conservation and Natural Resources, however during the reorganization legislation adopted during the last session, the Nuclear Projects Office was placed under the office of the Governor. He explained the contents of Exhibit C. Bob Loux, Executive Director, Agency for Nuclear Projects, came forward in support of A.B. 130, and indicated the Director of Conservation and Natural Resources also voiced support of this bill. Chairman Rhoads asked for a motion on A.B. 130. SENATOR REGAN MOVED TO AMEND AND DO PASS A.B. 130. THE MOTION WAS SECONDED BY SENATOR JACOBSEN. THE MOTION CARRIED UNANIMOUSLY. ***** Chairman Rhoads opened the work session on Assembly Bill (A.B.) 307. ASSEMBLY BILL 307: Makes various changes regarding state department of conservation and natural resources. Chairman Rhoads asked for a motion on A.B. 307. SENATOR JACOBSEN MOVED TO DO PASS A.B. 307. SENATOR McGINNESS SECONDED THE MOTION. Senator James said he thought there has been proposed language to A.B. 307 so that the membership numbers would not be changed, line 13, page 2. SENATOR JAMES MOVED TO AMEND A.B. 307 BY REMOVING THE BRACKETS ON THE WORD THREE AND DELETING THE WORD TWO, LINE 13, PAGE 2. SENATOR REGAN SECONDED THE MOTION FOR THE AMENDMENT. Senator Jacobsen spoke to the motion. He said he liked the membership configuration as it is. Chairman Rhoads called for the vote. THE MOTION FOR THE AMENDMENT CARRIED. (SENATORS JACOBSEN AND ADLER VOTED NO.) Chairman Rhoads called for the vote on the motion, amend and do pass A.B. 307. THE MOTION CARRIED. (SENATORS LEE AND ADLER VOTED NO.) ***** Chairman Rhoads opened the work session on Assembly Bill (A.B.) 537. ASSEMBLY BILL 537: Establishes system of demerit points for violations of provisions relating to wildlife. Senator Jacobsen commented he was concerned if the Division of Wildlife can handle the additional paperwork this measure will create. Willie Molini, Administrator, Division of Wildlife, said he did not believe a lot more work will be created with the enactment of A.B. 537. He said this measure will set up a fair and equitable system for license revocations. He remarked from that perspective, he believes A.B. 537 to be a good bill. Senator Jacobsen said he would like to see the names of game violators published because of the positive affect it could have. Senator McGinness pointed out that when a conviction is cited, the name of the violator is normally published. Mr. Molini agreed. Chairman Rhoads called for a motion on A.B. 537. SENATOR McGINNESS MOVED TO DO PASS A.B. 537. THE MOTION WAS SECONDED BY SENATOR LEE. THE MOTION CARRIED UNANIMOUSLY. ***** Chairman Rhoads opened the work session on Assembly Bill (A.B.) 542. ASSEMBLY BILL 542: Makes various changes relating to Colorado River Commission. SENATOR REGAN MOVED TO DO PASS A.B. 542. SENATOR LEE SECONDED THE MOTION. Senator James asked to make a statement. He said: This bill deals with the Colorado River Commission and deals with its respective responsibilities over the Southern Nevada Water System, vis-a-vis the Southern Nevada Water Authority and other local agencies dealing with water. It also deals with the powers and duties of the Colorado River Commission to negotiate on the Colorado River for additional supplemental water supplies and defines those water supplies. My law firm does, and has for some time, represented a number of entities and individuals who own water rights in other states and on the Colorado River, that have been offered and may be for sale to the State of Nevada. Previously, I have analyzed this situation, and it being sort of a nebulous area of the law overlapping state and federal law, had an inquiry whether or not I could vote on different matters dealing with these issues. I have generally refrained from voting on things that affect specific issues on the Colorado River, and even have written a letter indicating that I would refrain from voting on things that deal specifically with the Colorado River and the Colorado River Commission and its duties and responsibilities. I have re-evaluated that and I have looked at this bill in some detail, and I have read the provisions of it. What this bill would do is to set into statute and actually replace in the statute, some previously removed powers, duties and responsibilities of the Colorado River Commission to deal with these interstate negotiations and negotiations with the federal government. This doesn't put my client in any different position than anybody else dealing with the Colorado River Commission or the Southern Nevada Water Authority on these interstate water issues. Therefore, I am going to vote on this bill, and in the future will vote on these kinds of measures, unless I can find...that in some way my clients who, in particular, some of them own water in Colorado which is part of these interstate negotiations, would be benefitted differently, or that I could have a pecuniary interest that would effect them. These are balanced provisions. And so I would like to put myself back into this. I appreciate the Chairman letting me do this explanation because this is an important area of the law, and so I will be voting today with that disclosure.... The Chairman called for the vote on the motion. THE MOTION CARRIED UNANIMOUSLY. ***** Senator Jacobsen announced he had put together a proposal for the rural county caucus to take a helicopter flight over Lake Tahoe, more or less to look at the environment, the dead vegetation, the areas logged by helicopter, etc. He said he can schedule another trip toward the end of the week if committee members are interested. Further discussion followed concerning the proposed trip. There being no further business to come before the committee, the Chairman adjourned the meeting at 3:10 p.m. RESPECTFULLY SUBMITTED: Billie Brinkman, Committee Secretary APPROVED BY: Senator Dean A. Rhoads, Chairman DATE: Senate Committee on Natural Resources June 19, 1995 Page