MINUTES OF THE meeting
of the
ASSEMBLY Committee on Government Affairs
Seventy-Second Session
May 9, 2003
The Committee on Government Affairswas called to order at 8:16 a.m., on Friday, May 9, 2003. Chairman Mark Manendo presided in Room 3143 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Guest List. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
Note: These minutes are compiled in the modified verbatim style. Bracketed material indicates language used to clarify and further describe testimony. Actions of the Committee are presented in the traditional legislative style.
COMMITTEE MEMBERS PRESENT:
Mr. Mark Manendo, Chairman
Mr. Kelvin Atkinson
Mr. Chad Christensen
Mr. Tom Collins
Mr. Pete Goicoechea
Mr. Tom Grady
Mr. Joe Hardy
Mr. Ron Knecht
Mrs. Ellen Koivisto
Mr. Bob McCleary
Ms. Peggy Pierce
Ms. Valerie Weber
COMMITTEE MEMBERS ABSENT:
Mr. Wendell P. Williams, Vice Chairman (Excused)
GUEST LEGISLATORS PRESENT:
Senator Maurice Washington, Senate District No. 2, Washoe County
STAFF MEMBERS PRESENT:
Susan Scholley, Committee Policy Analyst
Eileen O'Grady, Committee Counsel
Pat Hughey, Committee Secretary
OTHERS PRESENT:
Rick Bennett, Director of Government Relations, University of Nevada, Las Vegas,speaking on behalf of Athletic Director John Robinson
Robert E. Dickens, Ph.D., Director, Office of Governmental Relations, University of Nevada, Reno
Steve Walker, representing Truckee Meadows Water Authority
Lori Williams, General Manager, Truckee Meadows Water Authority
Jennifer Stern, Swendseid and Stern, serving as Bond Counsel to the State and other local governments within the State
Lynda Parven, Administrator, Nevada Equal Rights Commission, Department of Employment, Training and Rehabilitation
Myla Florence, MPA, Director, Department of Employment, Training and Rehabilitation
Chairman Manendo:
Good morning. Welcome to Assembly Government Affairs. Madam Secretary, please call the roll. [Roll taken.] Committee, we’re going to turn to S.C.R. 19 first for Senator Washington.
Senate Concurrent Resolution 19 (1st Reprint): Urges Athletic Directors of University of Nevada, Reno, and University of Nevada, Las Vegas, to consider feasibility of reuniting University of Nevada, Reno, and University of Nevada, Las Vegas, in same athletic conference and to schedule annual rivalry football game to coincide with observance of Nevada Day. (BDR R‑884)
Senator Maurice Washington, Senate District No. 2, Washoe County:
S.C.R. 19 is a simple resolution requesting that the two football powerhouses in the state of Nevada meet annually, when they both enter into the same conference, on Nevada Day or that Nevada Day weekend. Because of conference differences, UNLV [University of Nevada, Las Vegas] is in the Mountain West Conference and UNR [University of Nevada, Reno] is in the Western Athletic Conference, it makes it very difficult for the two schools to compete annually during Nevada Day. They do meet annually, but their schedules permit them to meet in the middle of their schedules.
This resolution indicates that once both schools are in the same conference, the annual rivalry football game would take place during Nevada Day, which I think would be very appropriate seeing how the trophy is a Fremont Cannon, which is painted a very putrid red right now. The annual game took place in 1969 under Coach Bill Ireland. Bill Ireland coached with Dick Trachok, who used to be the coach at UNR, and was the former athletic director who hired Chris Ault, who came to UNR leaving UNLV. UNLV had great teams at that time. In fact, Coach Ron Meyer, who used to coach the New England Patriots, was a coach in the mid-1970s. Great players came out of there like Mike Thomas. I had a chance to play against Mike Thomas, a great player, very swift, very agile. I believe he came from Oklahoma. That was my freshman year and I never forgot the player because he ran up and down all over us. Of course, you had great players that came out of UNLV like Ickey Woods, Kirk Jones, and Randall Cunningham, who played with the Philadelphia Eagles. I think he’s still in Las Vegas somewhere.
Let’s not forget, UNR has had their great players as well. Marion Motley, who took the place of Jim Brown, and Doug Betters. Doug Betters currently lives in Montana and had a crippling skiing accident that has paralyzed him from the waist down. Then, of course, who could ever forget the immortal, invincible, set the all-time rushing record in NCAA, Frank Hawkins who played with the world champion Oakland Raiders. Charles Mann, who went to the Washington Redskins, Tony Zendejas, who went to the Cowboys, and Brock Marion, who is currently playing with the Miami Dolphins. There are great players that have come out of both schools. This would be nice to have a rivalry game around the annual Nevada Day.
Rick Bennett, Director of Government Relations, University of Nevada, Las Vegas, speaking on behalf of Athletic Director John Robinson:
[Introduced himself.] I’m representing the University that currently has the cannon. There really isn’t much more I need to say, other than we do support this resolution and look forward to the upcoming game in October where we expect to retain that cannon.
The Senator referenced the two football powerhouses in the state, and since UNLV has held the cannon for several years now, in lieu of two powerhouses, we’re willing to continue to play UNR.
Robert E. Dickens, Ph.D., Director, Office of Governmental Relations, University of Nevada, Reno:
[Introduced himself.] I’m an academic and I don’t know a heck of a lot about football, but I do like soccer. I’m here to speak in favor of S.C.R. 19 on behalf of the University of Nevada, Reno, President Lilley, and our athletic director, Chris Ault. It would be a wonderful idea if this sort of rivalry could be coordinated and played within a regular conference schedule. Therefore, we support the legislation.
I think the atmosphere in the room this morning, a lot of good-natured gibing of one another and swapping of tall tales, is a much better way to handle the geopolitics of the state than some of the less civil ways in which the politics of Nevada get prosecuted.
Chairman Manendo:
If the athletic directors from both schools decide to do this, would they still have the flexibility to go back if UNLV or UNR had a nice, fat, juicy TV contract, and need that particular weekend to be on national television? That wouldn’t be a problem then for them to switch it, because they do the scheduling a year out? [Someone responded that it was done several years out.] We’re okay there?
Dr. Robert Dickens:
Without being in the same conference, it becomes almost impossible to have the game on the Nevada Day weekend because in both conferences, the rules require that your nonconference games be played in the early part of the season. Having it in the first week in October is really the furthest it can be stretched, which is why the resolution suggests we consider the feasibility of being in the same conference.
Right now, the Mountain West conference has a moratorium as far as adding any additional teams, which I think is in place for at least another year. Then, if UNR was interested in joining the Mountain West Conference, they could go before the conference members and make their presentation. If we were in the same conference, the ability to schedule the game on Nevada Day weekend becomes much more of a possibility for us; not a guarantee, but it would be possible in that case.
Chairman Manendo:
UNLV is not thinking about switching out of the conference?
Rick Bennett:
No.
Chairman Manendo:
Good.
Senator Washington:
UNLV is part of the Western Athletic Conference. Not that either one of the conferences are bad, but the Mountain West Conference seems to garnish a little more revenue as far as TV time is concerned. It would be to our advantage as a state to have both schools in the same conference. I might add that the caliber of football that has been played over the past several years has been upgraded tremendously because of both coaches, John Robertson and Chris Ault, who is now the athletic director.
It also adds to the caliber of recruit they can go after because they’re competing against major schools in the western region, USC, Washington, and even some of the schools out of the Big Sky Conference. When you’re in a competitive conference, it gives you the opportunity to upgrade your caliber of ball player. When you have a tendency to win, it brings in more revenue for the state and for the universities.
Both schools have done a great job enhancing their facilities. I know that UNLV has just done a major overhaul of their stadium, and I understand that the University of Nevada, Reno, is going to add lights this year so that they can have several night games so that they may be able to have TV time. We’re placing ourselves on the map, and the annual rivalry game associated with Nevada Day, will enhance the state’s status nationwide.
Chairman Manendo:
Glad to see they’re putting in lights. We’ll close the hearing on S.C.R. 19 and bring it back to Committee. The Chair will entertain a motion.
ASSEMBLYMAN GOICOECHEA MOVED TO ADOPT S.C.R. 19.
ASSEMBLYMAN McCLEARY SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblyman Williams was absent for the vote.)
Chairman Manendo:
I’ll assign this to Mr. Atkinson. Turning to Senate Bill 140.
Senate Bill 140: Revises provisions governing acquisition by county or state of municipal obligations issued by certain water authorities. (BDR 20-854)
Chairman Manendo:
Is Senator Townsend going to be here at all? [Someone indicated that he did not think so.] We’re just very particular about making sure our colleagues get a chance to speak if they choose, but in a lot of cases, they have people making the pitch while they’re busy working in other committees.
Steve Walker, representing Truckee Meadows Water Authority:
[Introduced himself.] With me today, speaking on S.B. 140, is Lori Williams, General Manager of the Truckee Meadows Water Authority; and Jennifer Stern, Swendseid and Stern, bond counsel to the Truckee Meadows Water Authority, and almost every other local government in the state. I’ll turn it over to Lori Williams to explain how S.B. 140 would affect the Truckee Meadows Water Authority and then Jennifer Stern will explain the actual mechanics of the bill.
Lori Williams, General Manager, Truckee Meadows Water Authority:
[Introduced herself.] I appreciate the opportunity to speak with you here today in support of S.B. 140. I want to give you a little background on the Truckee Meadows Water Authority [TMWA] so that you understand the creation of it and how this bill [S.B. 140] came into being. The Truckee Meadows Water Authority was formed in 2000 under a joint powers authority under NRS Chapter 277 by the cities of Reno and Sparks and Washoe County to make a bid on the water assets of Sierra Pacific Power Company, who had put those water assets up for sale.
The local governments had the intent of keeping the regulation of water within the local governments and avoiding the possibility that the regulation of water in our community would go to out-of-state interests or, worse yet, foreign government interests. The Truckee Meadows Water Authority sold $452 million in bonds at the current A-/BBB+ bond rating to acquire those assets from Sierra Pacific.
Those assets were acquired in June 2001, so we’re coming up on our second anniversary of being the Truckee Meadows Water Authority. We serve 79,000 connections in the greater Reno, Sparks, and Truckee Meadows area. This legislation would allow the Truckee Meadows Water Authority to use the state bond bank or the county bonding capacity for future bond financings for the utility. We have worked closely with the local government finance committees who have supported this measure.
Future financings for the Truckee Meadows Water Authority would include new facilities such as treatment facilities, maybe treatment facilities to comply with new arsenic regulations, storage facilities, and maybe upstream reservoirs, so there’s a lot of facilities that we’re looking at to meet the water demands of our customers in the future that we’re anticipating the need to do future bondings for. These bonds would be backed by TMWA pledging water revenues to pay back the bonds or system development charges to fund these bonds, so there is a source of funding to pay back these bonds.
The TMWA Board actually has full authority to increase rates and revenue charges as they see fit to meet the demands that would be placed on the company by these bonds. These bonds would allow TMWA the opportunity to finance them at the lowest possible cost and would save, not only potential interest expenses, but also bond issuance and bond insurance costs. This would give us the opportunity to bring these water facilities to the community at the lowest possible cost. That’s the background of the Truckee Meadows Water Authority and why this bill [S.B. 140] is so valuable to us.
Assemblyman Collins:
There are approximately 79,000 people in the Truckee Meadows area, and I understand that this water was developed for these people in the last 100 years or so, and that the water system was developed by private companies, private investment, private development in the Reno area up until a couple of years ago when you bought it.
Lori Williams:
Yes. Sierra Pacific had been the predominant water utility in the Truckee Meadows area since time began basically, and those facilities that we currently serve and the customers we currently serve were all developed under Sierra Pacific and Public Utilities Commission guidelines at that time.
Assemblyman Collins:
Right. Private development.
Lori Williams:
Private development, and now we have become a public agency that holds all of those assets, and will hold all of the future assets needed to serve future customers.
Assemblyman Collins:
Thank you. You made my point.
Jennifer Stern, Swendseid and Stern, serving as Bond Counsel to the State and other local governments within the State:
[Introduced herself. Exhibit C was distributed.] The Truckee Meadows Water Authority was created and consists of the cities of Sparks and Reno, and the County of Washoe. The legislation was drafted with Southern Nevada Water Authority in mind. The structure of Southern Nevada Water Authority differs from Truckee Meadows Water Authority, so these are technical amendments to continue to allow Southern Nevada Water Authority to issue its bonds to the state and county bond banks, but also to include Truckee Meadows Water Authority to allow it to issue its bonds to the state and county bond banks. That means they get to, just like Southern Nevada Water Authority has in the past, use the state’s credit rating, which is passed along to the water authority, or use the county’s credit rating, which is passed along to the water authority. This translates into lower interest rates, lower costs of financing, and that’s what it’s about.
Section 1 of the proposed legislation amends the definition of “municipality” in the county bond bank law because, unlike Southern Nevada Water Authority, Truckee Meadows Water Authority is not comprised of the two largest municipal retail water purveyors in the county. One of the largest municipal water purveyors in the county is Sun Valley General Improvement District, and they are not a member of Truckee Meadows Water Authority, so this would amend it to delete that requirement of being a municipality.
Section 2 of the proposed legislation amends the state bond bank law. Again, unlike Southern Nevada Water Authority, which requires its members to have a General Fund backing and property tax ad valorem backing to its bonds, the Truckee Meadows Water Authority issues water revenue bonds. They were not structured to allow Truckee Meadows Water Authority to ever levy a property tax rate, so this particular statute is inapplicable to Truckee Meadows Water Authority, and would need to be amended in order for them to access the state bond bank.
Assemblyman Grady:
When the municipalities bought the water company from Sierra Pacific, was there any arrangement made as far as lost tax revenue that would go to the state or the school districts, or was that just lost?
Lori Williams:
In the bond financing and in the financing model that was put together, they had assumed that those tax revenues would not be paid. We have been working very closely with the local government agencies and the school district. We had a resolution passed at our board [Truckee Meadows Water Authority Board of Directors] and one was passed at the Washoe County School District Board of Trustee last week. We are working with the school district on programs that can save them substantial dollars on their costs of water for their facilities. We’re also working with them on conservation education programs, and on sites at their school facilities where we can drill wells for future water supplies and future groundwater extraction. We have a laundry list of other projects that we’re working with the Washoe County School District on, trying to even up the playing field a bit. We’ve also worked with the local government agencies on land acquisitions or things that they have been interested in that the water authority has a mutual need for.
Steve Walker:
S.B. 140 passed out of the Senate unanimously and out of the Senate Government Affairs Committee unanimously.
Chairman Manendo:
Anyone else on Senate Bill 140? I’ll close the hearing on Senate Bill 140 and bring it back to Committee.
ASSEMBLYMAN KNECHT MOVED TO DO PASS S.B. 140.
ASSEMBLYMAN GRADY SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblyman Williams was absent for the vote.)
Chairman Manendo:
Mr. Knecht, do you want to carry this bill? [Mr. Knecht indicated that he would.] Turning to our last bill on the agenda, Senate Bill 450.
Senate Bill 450 (1st Reprint): Makes various changes to provisions governing Nevada Equal Rights Commission. (BDR 18-475)
Lynda Parven, Administrator, Nevada Equal Rights Commission, Department of Employment, Training and Rehabilitation:
[Introduced herself. Exhibit D was distributed.] With me is Jim Smith, Deputy Attorney General assigned to the Nevada Equal Rights Commission. S.B. 450 incorporates three areas in which the Nevada Equal Rights Commission has requested changes to our statute. The first is a housekeeping issue in which we replace all references to “executive director” with “administrator,” due to the 1993 reorganization that placed us under the Department of Employment, Training and Rehabilitation.
The second change is in Sections 7, 8, and 9, which allows us to utilize the charge prioritization system utilized by the U.S. Equal Employment Opportunity Commission [EEOC] and also recommended by the Legislative Counsel Bureau audit of the Nevada Equal Rights Commission. This allows us to utilize our limited resources more effectively and to process cases in a more efficient time line.
Section 11 is the third adjustment, and it changes our confidentiality statute to be more consistent again with the federal EEOC statute and allows conciliation and settlement meetings to be held confidential, as well as communication between the Attorney General’s Office and ours. We’re trying to be more consistent with our work-sharing agreement partner, the EEOC, in our policies, so that we can handle our cases similar to the way they do.
Chairman Manendo:
Did you testify in the Senate on this bill?
Lynda Parven:
Yes.
Chairman Manendo:
Was the bill sent to the Finance Committee? It has a fiscal note.
Lynda Parven:
No. There should be no fiscal note on S.B. 450.
Chairman Manendo:
There is, at least it says it on the bill.
Lynda Parven:
We submitted a fiscal note that there was no impact to the state.
Myla Florence, MPA, Director, Department of Employment, Training and Rehabilitation:
[Introduced herself.] Lynda is correct. There is no fiscal impact with this bill, which was submitted by request to the Legislative Counsel Bureau staff.
Chairman Manendo:
My apologies. I’m reading it wrong.
Anyone else speaking on Senate Bill 450? I will close the hearing on S.B. 450 and bring it back to Committee. Let’s take a recess. [8:54 a.m.]
[Chairman Manendo reconvened the meeting at 9:11 a.m.]
Senate Bill 54: Revises provisions relating to collection of delinquent charges for certain services provided by certain counties. (BDR 20-979)
Chairman Manendo:
Turning to Senate Bill 54. We heard this on Wednesday. Discussion?
ASSEMBLYMAN KNECHT MOVED TO DO PASS S.B. 54.
ASSEMBLYMAN COLLINS SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblyman Williams was absent for the vote.)
Chairman Manendo:
Mr. Knecht, you requested to handle this one as well.
********
Chairman Manendo:
Committee, please turn back to Senate Bill 450.
ASSEMBLYWOMAN WEBER MOVED TO DO PASS S.B. 450.
ASSEMBLYMAN HARDY SECONDED THE MOTION.
Assemblywoman Koivisto:
I just hope that passage of this measure will speed up the processing of complaints to the Nevada Equal Rights Commission.
Chairman Manendo:
Mrs. Koivisto, as the Chair of the Health and Human Services Committee, I’m sure you’ll be keeping an eye on that and I think we all hope for the same thing.
THE MOTION CARRIED. (Assemblyman Williams was absent for the vote.)
Chairman Manendo:
Ms. Weber, would you like to handle this on the Floor?
Assemblywoman Weber:
Absolutely, Mr. Chairman. I’ve worked with Ms. Florence before. I’ll be glad to make the Floor statement.
Chairman Manendo:
Ms. Florence has worked very hard over the years for the public and the state. We are very grateful.
Is there anything else to come before the Committee? We have Committee tomorrow at 9:00 a.m. in Las Vegas. We’ll have lots of folks and the dress is professional. Thank you very much for another hardworking week. We are adjourned. [9:22 a.m.]
Pat Hughey
Committee Secretary
APPROVED BY:
Assemblyman Mark Manendo, Chairman
DATE: