MINUTES OF THE
SENATE COMMITTEE ON FINANCE
Sixty-seventh Session
February 26, 1993
The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 7:30 a.m., on Friday, February 26, 1993, in Room 223 of the Legislative Building, Carson City, Nevada. Exhibit A is the Meeting Agenda. Exhibit B is the Attendance Roster.
COMMITTEE MEMBERS PRESENT:
Senator William J. Raggio, Chairman
Senator Raymond D. Rawson, Vice Chairman
Senator Lawrence E. Jacobsen
Senator Bob Coffin
Senator Diana M. Glomb
Senator William R. O'Donnell
Senator Matthew Q. Callister
STAFF MEMBERS PRESENT:
Daniel G. Miles, Fiscal Analyst
Larry L. Peri, Program Analyst
Jeanne L. Botts, Program Analyst
Judy Jacobs, Committee Secretary
OTHERS PRESENT:
Michael Meizel, Administrator, Buildings and Grounds Division, Department of General Services
P. Forrest Thorne, Deputy Budget Administrator, Budget Division, Department of Administration
Roger E. Grable, Deputy Manager, Administration, State Public Works Board
Ellen Townsend, Principal Budget Analyst, Budget Division, Department of Administration
John Richardson, Administrator, Division of State Parks, State Department of Conservation and Natural Resources
Peter G. Morros, Director, State Department of Conservation and Natural Resources
Senator Raggio announced there were three bill draft requests (BDRs) for consideration by the committee.
BILL DRAFT REQUEST S-1399: Makes supplemental appropriation to supreme court of Nevada.
SENATOR COFFIN MOVED FOR COMMITTEE INTRODUCTION OF BILL DRAFT REQUEST S-1399.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
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BILL DRAFT REQUEST 43-1212: Increases amount that person who awards certificate of number for watercraft may retain from fee paid for certificate.
Senator Raggio stated the bill had been proposed by Judy Matteucci, Director, Department of Administration. He explained it would authorize an increase in the amount of fees collected by boat dealers.
SENATOR RAWSON MOVED FOR COMMITTEE INTRODUCTION OF BILL DRAFT REQUEST 43-1212.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
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BILL DRAFT REQUEST 57-476: Makes various changes relating to insurance guaranty association.
Senator Raggio said the BDR would set a limit on the coverage of unearned premiums. He stated the bill had been proposed by the Nevada Guarantee Association.
SENATOR RAWSON MOVED FOR COMMITTEE INTRODUCTION OF BILL DRAFT REQUEST 57-476.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
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Buildings and Grounds - Page 294
Michael Meizel, Administrator, Buildings and Grounds Division, Department of General Services, explained his division is responsible for the maintenance in most of the office buildings owned by the state. He acknowledged buildings and grounds does not maintain any of the institutional buildings.
Mr. Meizel declared his division presently has statewide authority, but under the Governor's proposed reorganization plan buildings and grounds would be merged with the public works department. He supported the concept of the merger on the premise the responsibilities of building construction and building maintenance involve similar areas.
Mr. Meizel explained the resources for the budget primarily come from building rents. Each agency is assessed for occupancy of state-owned buildings. He added some agencies, such as the Department of Agriculture and the Department of Wildlife, are also charged service fees. Those fees cover custodial services, maintenance of grounds, and other similar operations.
Mr. Meizel called attention to the rental rates listed under the performance indicators. He noted the rates have dropped during this biennium. He explained the reason for the drop may be attributed to spreading the cost over a broader base. In the current biennium the new Supreme Court and the new State Library and Archives buildings added square footage over which expenses were spread. He said the new state office building in Las Vegas will be added in the next biennium which will also spread the costs.
Mr. Meizel stated there will be some position changes in the next biennium. He said four positions were voluntarily eliminated during this biennium, which were the result of privatization. He added some custodial positions in Carson City were filled through contracts and a middle management position, for which he saw no need, also was eliminated. He stated the funds saved were used for maintenance projects.
Mr. Meizel attributed the proposed drop from 75 positions to 57 positions to the transfer of the Capitol Police Force to the proposed Department of Public Safety. Also five accounting positions will be transferred to the Administrative Services Division in the Department of Administration under the proposed reorganization. He said those personnel transfers constitute the biggest change in the Base budget.
Senator Raggio offered his understanding the new state building in Las Vegas would open on January 1, 1995, and asked if the new Department of Motor Vehicles and Public Safety (DMV&PS) building in Las Vegas was scheduled to open in July of 1994. Mr. Meizel affirmed the opening date for the state building and said he believed July 1994 was the opening date for the DMV&PS building. He had included it in his budget for opening on that date.
P. Forrest Thorne, Deputy Budget Administrator, Budget Division, Department of Administration, interjected he was not certain what date the new DMV&PS building would be occupied. He guessed it might be sometime in fiscal year (FY) 1995.
Senator Raggio declared the Senate Committee on Finance should be advised of any change in occupancy dates because changes could effect some additional savings. Mr. Meizel indicated he would find out the projected date of occupancy of the DMV&PS building and inform the committee.
Senator Raggio inquired if the old Supreme Court building was on target for a fall 1993 occupancy. Mr. Meizel agreed the building should be ready by the fall.
Roger E. Grable, Deputy Manager, Administration, State Public Works Board, confirmed that the old Supreme Court building would be ready for occupancy by fall of 1993.
Senator Raggio asked when the Fremont School would be ready for use. Mr. Thorne replied it should be ready by July 1994. Senator Raggio reiterated his request to be informed if any of the occupancy dates change, which would thus change the budget. Mr. Meizel agreed to do so.
Senator Raggio asked what the rental rate on state-owned buildings is at the present time. Mr. Meizel said the present rate is 63 cents per square foot per month. He indicated the rate would continue for the next biennium due to the additional square footage already in place.
Senator Raggio inquired how many leases are outstanding at rates higher than 63 cents. Mr. Meizel said most of those in existence are higher. Turning to page 299 of the Executive Budget, he drew attention to the line item showing the number of square feet of office space leased, which shows a drop in the second year of the biennium. He attributed the drop to projected moves out of many rented buildings in Las Vegas.
Senator Raggio pointed out the projected number of square feet in 1995 is the same as 1993. He asked if the same amount of leased space would be retained. Mr. Meizel responded the present square footage is approximately 917,000 which should drop to 836,000 by 1995. Senator Raggio again called attention to the figures on page 299 and asked if the projection of 836,044 in 1993 and the projection of 836,449 in 1995 was an indication that the new Las Vegas office building would not be occupied by 1995.
Mr. Meizel responded, "I'd have to look precisely at the figures right now for the leases. I think what we're figuring is we're not in there 'til the end of `95 to start with."
Senator Raggio asked Mr. Meizel to look at line item 4, which shows an increase from over 600,000 square feet to 809,000 in 1995. He asked how many square feet are in the new state office building in Las Vegas. Mr. Meizel replied it will have over 220,000 square feet.
Mr. Meizel said leases are tabulated on a monthly basis, and there will be a decrease in the number of leases when the new state building is occupied. He offered the opinion more leases will be needed within a few years even after the new state building is occupied, and the square footage may come back to its present rate. He charged there are many agencies that use a great deal of space. He declared the state has always leased more space than it has owned and will continue to do so until the time when the new state building is completed.
Senator Raggio asked for an analysis of what will happen when the new state building in Las Vegas is occupied. He asked, "Are there going to be leases out there that we are still obligated to, that we have to pay for...that aren't being occupied?" Mr. Meizel replied, "Oh, no." He said the present leases have been timed to expire at the time the new building will be occupied, or the leases will be extended monthly. He admitted there is some risk in monthly extensions because the rates may go up.
Senator Raggio asked what will happen to the state office building on East Sahara Street in Las Vegas. Mr. Meizel replied it will be fully utilized, as will the old State Industrial Insurance System (SIIS) building on the site. He stated, "Originally we had contemplated a lot of Department of Commerce agencies to go in there, simply because it's close to the site." He said there will continue to be leases on buildings for agencies that are not going to be transferred to the new building.
Senator Raggio asked, "Is the payback for the mail facility building...deleted from this budget? That was approximately $50,000 a year? Is that also for the remodeling of the SIIS building down there?..." Mr. Meizel replied, "The one that's left in the budget is for the mail facility, and the one that was taken out of the budget is for the SIIS facility."
Senator Raggio asked, "So you've taken out the SIIS repayment of $50,000. Why is that being done, just a money-saving?" Mr. Meizel responded, "I think the budget office, that was one of their recommendations." Mr. Thorne interjected, "Unfortunately the budget analysts haven't...time to be in two places at once." Senator Raggio said, "Let us know your reasoning on that."
Senator Raggio recalled there was a provision for repayment of 5 percent per year of the cost of the SIIS building at the time it was purchased and remodeled. Mr. Meizel declared he had included the repayment into the budget for the year, but the budget office, as part of its function, removed it.
Mr. Thorne called attention to the second column of Performance Indicators on page 299. He pointed out the actual square footage of space leased was 915,122 in 1992, the fourth column with projections for 1994 show 917,411 square feet, and the last column depicts a substantial drop to 836,469 in fiscal 1995. He pointed to item 4 in which the square feet of state office building space increases from 701,741 in 1994 to 809,168 in 1995, including the new office building.
Senator Raggio asked if the increase in maintenance projects in item 5 were the result of the buildings already discussed. Mr. Meizel replied:
No, the maintenance projects...under the Enhancement part of this budget, we have that building property renovation...it's based on an inventory system we take every year of all the buildings. Based on the inventory we take we come up with a list...of large maintenance items that have to be done as part of our preventive maintenance program. That's what those items are, they're items that we've accomplished through the last year. They vary every year.
Mr. Meizel explained:
We come up with a list and we go through the [State] Public Works Board. Some of the items wind up within the CIP [Capital Improvements Projects], some of them remain within our budget. And we've got a list for accompanying the building property renovation this year.
He concluded those were some of the enhancements for this year.
Senator Glomb suggested the total expenditures should drop more than is reflected in the budget considering the reduction in staff depicted on page 298. She asked what contributed to the higher costs. Mr. Meizel said the largest cost increases in the budget are due primarily to the additional facilities already included during the last biennium and contemplated for the forthcoming biennium. He listed the new Supreme Court building, the new State Library and Archives building and the new building in Las Vegas as additions which caused the budget increase.
Referring to the confusion in the amount of leased space versus owned space, Senator Coffin asked, "If an agency uses 20,000 square feet of leased space, given the opportunity to move into a state building, is it possible that they're using 30? " Mr. Meizel admitted that may be true in some cases. He said the agencies were asked to project the amount of space they will need through fiscal year 1995, so they may have included extra space to cover growth factors. Hence he opined they may be going into larger building areas.
Senator Coffin asked if that would not tend to eliminate some of the projected savings contemplated by vacating leased space and moving into state-owned facilities. Mr. Meizel replied the amount of space in a leased facility would probably increase within the same time period. He pointed out most agencies are cognizant of the costs and of growth. He opined there will be a savings in leased space once the new building is occupied.
Senator Coffin said he had been informed by the State Public Works Board during the interim that the new state office building would be constructed in such a way that it will be difficult to move agencies around within the building. He wondered if the internal design of the new building should be reconsidered before construction commences.
Mr. Meizel responded, "Inherent in planning is a problem with the change you're going to be looking at when you go along." He declared there will probably be more changes in the composition and size of agencies than normal in the coming year due to the proposed reorganization. He agreed there may be last minute changes necessary for the new Las Vegas building.
Senator Coffin recalled that last minute intervention in construction of both the Thomas and Mack Center and the Lawlor Events Center had been done to improve the use of space from single purpose to multi-purpose. He wanted to know how much leeway was granted to each agency to determine its own needs. Mr. Meizel responded guidelines were set out by the Buildings and Grounds Division for which compliance was required of the agencies. He said the differences in square footage might come about due to the changing number of people employed by each agency.
Mr. Meizel declared he is satisfied with the overall plan for the new Las Vegas building. He said the inflexibilities of design will be found in hearing rooms, but there will be an ability to move offices around to suit various agencies.
Senator Jacobsen expressed concern many renovation projects had been slowed down by budget cuts. He asked if the road next to the Fremont School would be reopened. Mr. Meizel did not know if there were plans to reopen the road.
Mr. Meizel reminded the committee some of the money appropriated in past years had gone to the Stewart Indian School complex. He commended Senator Jacobsen for his involvement with projects completed by prison inmates involving renovation at the Stewart complex.
Senator Glomb asked why the Buildings and Grounds Division would continue to pay for the Capitol Police Force even though they were being transferred to Public Safety. Mr. Meizel indicated his belief the rationale was due to the fact the Capitol Police Force provides service to the facilities. He said, "What we're doing is paying for all the...services the agencies receive from the Capitol Police and passing off to them in the form of rent. The agencies are paying us rent, which in turn funds the Capitol Police." He was uncertain whether that procedure would continue in the future. He opined that was a decision which will probably be made by the Budget Division.
Senator Glomb repeated her belief the expenses for the Capitol Police Force should be reflected in the budget in which those positions are maintained. Mr. Thorne responded, "Those expenses are reflected over there. The payment for them are reflected in the building and rent rate, which is collected by this budget, so the transfer to pay for those service comes from this budget as well."
Referring to the transfers of $598,538 in 1994 and $611,536 in 1995 to Public Safety depicted on page 294 of the Executive Budget, Senator Glomb asked, "There's also an additional $140,000 in the second year?" Mr. Thorne responded, "That's for the addition of the personnel at the new Las Vegas office building."
Senator Glomb inquired if the Buildings and Grounds Division budget would continue to reflect the costs of that transfer. Mr. Thorne opined it would because it includes services provided to state office buildings and thus those costs are included as part of the rent.
Mail Services - Page 224
Mr. Meizel stated the mail services include interoffice as well as other mail services to all state agencies. He said the two main mail rooms are in Carson City and Las Vegas, and there is a third, smaller, mail room in Reno.
Mr. Meizel described the Mail Services budget as a Base budget with no material changes. He said it is funded through a percentage paid by each agency depending upon the number of pieces of mail each generates. He added some funding is received for folding and inserting for state agencies in the Carson City mail room. Those agencies include the Departments of Wildlife and Taxation and the Welfare Division.
Senator Raggio recalled during the interim the special committee dealing with privatization had numerous discussions regarding use of contract services, particularly regarding the Department of Motor Vehicles and Public Service (DMV&PS). He asked if Mail Services ever contract with private firms such as Nevada PreSort and Mail Marketing Services and where it would be reflected in the budget. Mr. Meizel affirmed those types of services are employed.
Senator Raggio continued to say there had been extensive discussions as to whether private contracts were cost-effective, especially regarding the purchase of expensive equipment by DMV&PS which later canceled their existing contract with a private firm. He asked for Mr. Meizel's opinion on the cost-effectiveness of contracting services.
Mr. Meizel noted the DMV&PS transaction involved a barcoder machine. He said a recent study done by his department showed it would not be cost-effective for the Mail Service to purchase barcode equipment. He estimated as much as $2,000 per month is saved through contracting with outside presort services. He declared the decision to invest in that equipment depends greatly on accommodation to the state by the United States Post Office.
Senator Raggio said the committee on privatization concluded it would be more cost-effective to contract with private firms rather than purchase unnecessary equipment.
Senator Jacobsen inquired if Mr. Meizel saw any downside to the proposed reorganization plans relating to the Buildings and Grounds Division. Mr. Meizel replied:
Not as far as buildings and grounds being under public works board.... We've worked with that body over the years...I think...we've become closer and closer together as far as what we do anyway.... I really don't have any downside on that aspect of it.
Marlette Lake - Page 1597
Mr. Meizel explained Marlette Lake distributes water to Carson City, Virginia City and the state complex.
Senator Raggio noted the Marlette Lake budget will transfer to the Department of Natural Resources if the Governor's reorganization plan is approved. Mr. Meizel added the Carson Water Treatment plant budget also is scheduled for transfer to the Department of Natural Resources.
Senator Raggio inquired why the utility costs are projected at a lower rate in 1995 compared to 1992 costs. Ellen Townsend, Principal Budget Analyst, Budget Division, Department of Administration, explained some claims left over from 1991 had been paid in 1992, which is why the figure was higher in 1992.
Senator Coffin asked why there would be more water sold. Mr. Meizel replied the drop in water supply during the past 2 years had been due to the drought, and a return to normal levels is anticipated.
Carson Water Treatment - Page 1600
Mr. Meizel said part of the water from the Marlette Lake water system goes to Virginia City and Storey County, and part of it goes into Carson City. The water diverted to Carson City goes through the Carson Water Treatment plant. He explained the Carson Water Treatment budget buys water from the Marlette Lake system and wholesales it after it has been treated. He indicated the Carson Water Treatment budget is really spent on treatment costs.
Mr. Meizel said the treatment plant is about 10 to 15 years old, it is well-maintained, and the water meets all state drinking water standards.
Senator Raggio asked how much Carson City pays the state for the water, and if they use the water for anything other than the state complex. Mr. Meizel calculated the payment at around 61 or 62 cents per thousand gallons. He said Carson City uses Marlette water along with both surface and underground water for the city.
Senator Raggio asked if Carson City pays a fair rate for Marlette water. Mr. Meizel opined the city pays a fair share, but he admitted:
It would be hard for me to analyze the fair share if you put the water on the open market.... If you put the water system on the open market, what the state has is millions and millions of dollars worth of assets.... The smartest thing the state ever did in 1963 was buy this water system...with water in this state this is a multi-million dollar asset.
Senator Raggio wanted to know if the budget fully reflects the cost of operation of the treatment plant. Mr. Meizel replied it does, although there have been problems with the plant. He associated those problems with the drought. He explained a certain amount of volume is necessary to make the operation profitable, but the treatment plant pays for itself.
Senator Raggio questioned the Operating Expenses. Mr. Meizel said the Operating Expenses include about $30,000 paid to the Buildings and Grounds Division for maintenance services. He said both the Marlette system and the treatment plant rely heavily on the Buildings and Grounds Division.
State Parks - Page 1619
John Richardson, Administrator, Division of State Parks, State Department of Conservation and Natural Resources, stated there are 23 units under his administration, which encompass about 150,000 acres with a variety of recreational activities.
Mr. Richardson summarized the impacts on his budget due to the budget reduction plan and by the proposed consolidation with the Department of Wildlife. He charged the reduction of five maintenance personnel will have an impact on the division's ability to maintain the facilities, which will result in deferred maintenance.
Mr. Richardson asserted budget reductions will cause more reductions in programs offered by the parks, which had already been reduced over the past 2 years. He added law enforcement patrols and employment of seasonal help will have to be curtailed in addition to maintenance and programs.
Mr. Richardson stated he does not anticipate that any parks will have to be completely closed, but he alleged some facilities may have to be closed during certain parts of the year and hours may have to be cut back. He declared the Division of State Parks may not be able to take advantage of some federal programs due to the budget cuts.
Senator Raggio recalled that the State Park Advisory Commission was going to be deleted under the Governor's reorganization plan and its functions would be undertaken by a natural resources board. He asked if that would pose any material concern to the parks department.
Mr. Richardson answered, "The park commission has been basically advisory over the years. It's my understanding...that the new board would be regulatory and advisory." He admitted he had not seen any organizational charts on the functions or makeup of the proposed new board. He doubted there would be any problem with the abolishment and reconstruction of the advisory commission.
Senator Raggio noted an increase was contemplated overall in the number of users projected under Performance Indicators even though the legislative analysts have indicated decreased usage of water-based parks. He asked why visitation decreased at Floyd Lamb Park and Spring Mountain Ranch, which are not water-related facilities. Mr. Richardson said there had not been significant decreases at those facilities compared to decreases in the north such as Lahontan where usage dropped from 460,000 people to 133,000.
Senator Rawson asked what had happened to improvements authorized during the last legislative session. Mr. Richardson replied:
The only improvements...that are still not being carried out are those that were set forth in Question 5 [of the last general election]. I appeared before you to request funds for planning and for acquisition in the first phase sale of the bonds. We have basically been able to keep those plans and specifications on target...we should be ready to go to construction. Many of them are. But construction will not take place until the...second phase of the bonds are sold.
Senator Rawson remembered authorizing payment for some improvements out of the bond money due to a lack of other resources. He wondered if those had been completed. Mr. Richardson said the plans for improvements at Floyd Lamb Park are complete, but construction will not go to bid until the second phase bonds are sold. He said there were only two projects that included some construction and they would go to bid this spring.
Senator Callister reviewed the funds that had been authorized for maintenance by the last legislature and the $250,000 cut imposed in 1991-92 and $400,000 cut in 192-93. Mr. Richardson was unsure if those numbers were correct, but agreed there had been significant cuts.
Senator Callister said:
We agreed then...there had been an extraordinary arguable mismanagement in that we had acquired...or built facilities over the years...and then just ignoring the maintenance on those. It's like buying a car and letting it rust.... I look and see that...five of the 15 positions...that were dedicated for maintenance were cut by the administration. You're getting no money for equipment over the next 2 years despite the same requests that we saw 2 years ago, and I think 2 years before then.... I am really concerned that while we are on one hand encouraging spending, convincing the public to raise new money for new parks...that simultaneously we're ignoring the assets we acquired over the past 50 years.... That seems absolutely inconsistent to me.
Senator Callister declared he would like an inventory of deferred maintenance on all the parks, on how long the problems have been deferred, and a prioritization list of that inventory. He proposed a list which would show what needs to be done to bring the state parks into operating trim. He suggested that information should be supplied to the subcommittee chaired by Senator Jacobsen.
Senator Callister stated, "I am really troubled...at the extent to which we simply turn a willing blind eye to these extraordinary and very necessary components of our increasingly urban life-style." He complained he has observed many projects delayed over a period of 8 years.
Senator Rawson declared the committee has an obligation to extend the money committed by the Parks and Wildlife Bond Issue of 1990 through June or July of 1993 or else an amendment should be made to extend the obligation. Mr. Richardson responded he did not believe there was a time limit on the bond obligations. He averred there had been a request to delay the sale of the bonds due to economic conditions.
Senator Rawson interjected the funds approved in 1989 had been extended once already. He surmised the funds may be lost if they are not expended. Senator Raggio said there is a reversion on the money if the projects are not completed within a set time.
Senator Jacobsen requested an update on all the state parks from Mr. Richardson. He inquired as to the usage and progress of a leaking dam at South Fork. Mr. Richardson said about 80,000 people visited South Fork last year, but he was uninformed on the situation regarding the leaking dam.
Peter G. Morros, Director, State Department of Conservation and Natural Resources, stated there had been some problems with the foundation when the South Fork dam was under construction which required a substantial amount of additional work on the foundation. He said the drought has precluded being able to fill the reservoir to capacity, 40,000 acre feet, and test the structure. He said so far only about 10,000 acre feet of water has been collected. He noted there has been no leakage beyond what is normally expected. He explained all dams leak to a certain extent, which is no problem as long is the leakage does not erode the foundation. He said surveillance is kept on the dam at all times to monitor the leakage.
Senator Jacobsen asked about the condition of Cave Rock. Mr. Richardson said all permits had been filed with all the agencies involved, including the United States Corps of Engineers, the Tahoe Regional Planning Agency, the Department of Wildlife, the Department of Data Processing and the Division of State Lands. He reported everything is on schedule, and he anticipates that the permits will be approved within a reasonable period of time.
Senator Jacobsen requested a written statement be prepared as to how the parks will be affected by the loss of the honor camp crews, and which parks will be affected the most. He suggested the Division of State Parks consider utilization of a roving honor camp crew which could go from one park to another. Mr. Richardson agreed to provide the requested information to the senator.
Mr. Richardson distributed a summary of the park improvements scheduled under the budget (Exhibit C) and a summary of activities at the Old Las Vegas Mormon Fort (Exhibit D). He stated a comprehensive report on the Old Las Vegas Mormon Fort improvements will be available at the end of March.
Mr. Richardson reviewed improvements scheduled for this year. He said fencing will be installed at South Fork to keep cattle out of the wetlands area. A boat launch facility at Cave Rock will be financed by $200,000 in federal funds through the Department of Wildlife with an additional $50,000 from the state parks budget. He asserted there are serious problems at Cathedral Gorge, particularly the leach system for the campground restrooms. Funds would also be used to completely rehabilitate the oldest of two campgrounds at Cave Lake. He indicated a reservoir at Spring Mountain Ranch that has silted in and is filling with tules is scheduled to be cleaned out and relined.
Lastly, Mr. Richardson expressed hope federal wildlife funds will be available under a 75 percent to 25 percent matching federal funds grant for the Sand Harbor Boat Launch Renovations. He said it would cost the state $80,000 for its 25 percent share.
Senator Raggio commented he had been informed it would not be feasible to extend the Sand Harbor Boat ramp. Mr. Richardson replied:
It's not only just the boat ramp itself, there are some options.... That's a pretty shallow grade, and it would be difficult, but we could extend it to the gray water to put some slabs on the end, because right now it drops off.... There are some big holes.... But more importantly, as the water rises back up to its normal level that we provide additional opportunities, and what that means is more spaces and a complete redesign of the existing boat trailer area.
A discussion ensued regarding the level of Lake Tahoe. Mr. Morros declared the lake is approximately 1 and 1/2 feet below the natural rim so no water is flowing into the Truckee River right now. He said the natural rim is at an elevation of 6,223 feet, and the maximum allowable elevation of the lake is 6,229.1, which allows for 6 feet of storage. He stated it takes 120,000 acre feet of water to bring the lake up 1 foot of depth; thus it would require 180,000 acre feet to bring the lake up to the natural rim. He concluded in order to bring the lake to a level to effectively discharge into the river another foot of water would be required, which means 300,000 acre feet of water will be required before the lake can effectively discharge into the river.
Senator Rawson asked how much precipitation was necessary to provide an acre foot of water in the lake. Mr. Morros described an acre foot as the amount of water required to cover one acre of land to a depth of 1 foot. He admitted he had not analyzed the water content of the snow pack, although he understands it is very good. He expressed hope the lake will rise above the natural rim this year, especially if March lives up to customary high precipitation levels.
According to Mr. Morros the water content of the snow in some drainage areas, such as Fallen Leaf Lake, are at 300 percent of normal, and in most areas the content is 200 percent of normal. He cautioned that the soil mantle, the first 6 to 8 inches of soil, is so dry it will soak up a lot of water to bring it to a normal moisture content. He speculated there will be a substantial recovery in reservoirs this year.
Senator Jacobsen asked if it would be feasible for the state to manage the boat operation at Sand Harbor rather than lease it out to a private entrepreneur. Mr. Richardson submitted it would not be successful because the state does not own the proper equipment.
Senator Jacobsen responded, "I've been seeing equipment sitting around the state that could be utilized there, and I'm just wondering whether it would be too much of a chore, or whether you feel the liability's too great." Mr. Richardson replied he would be concerned about both, especially since there has been a reduction in seasonal personnel. He doubted it would be possible to take on additional responsibilities without deferring other projects.
Senator Jacobsen asked how much income the tenant received at Sand Harbor. Mr. Richardson did not have the figures available for last year, but he declared the operation had lost money the previous year.
Senator Rawson recalled discussions over the possibility that Prison Industries might manufacture cabana-type shades for state parks. He asked if that had been analyzed. He described similar devices used in Oregon and Washington, which he asserted should be simple to produce and would do away with rotting problems that have been experienced in some areas of Nevada. Mr. Richardson agreed to reconsider the suggestion. He said Prison Industries had displayed some of the wares they make such as stoves, barbecue grills and picnic tables. He protested there was no delivery from the prisons, which would require the Division of State Parks to go pick up manufactured items. He asserted the Prison Industries products cost more than those produced by private enterprise.
Senator Rawson suggested transportation might be arranged. He averred any obstacles probably could be resolved. He stated he would attempt to produce a simple plan and obtain estimates from the prison for Mr. Richardson. He repeated how impressed he had been with the units in Oregon and Washington he had described, with their simplicity of design and low maintenance.
Responding to a question by Senator Raggio, Mr. Richardson described Exhibit D as a summary of the history of the acquisition, archeological research, excavation and planning for the Old Las Vegas Mormon Fort. He reiterated a preliminary draft on the project will be available by March 31, 1993.
Senator Callister asked if the last paragraph of Exhibit D was an indication the project is 4 months behind schedule and what caused the delay. Mr. Richardson responded the delay was partially due to a postponement in the sale of the bonds. He declared the paragraph to which Senator Callister referred was an explanation of what had already occurred to cause delays. Mr. Richardson agreed to provide a new time schedule.
In the absence of further testimony, Senator Raggio closed the hearing on the budgets.
Senator Raggio called attention to folders distributed to each senator in which any information that has been requested will be placed, and he suggested the senators check them prior to subcommittee discussions. He announced the agenda for the following Monday.
The meeting was adjourned at 8:52 a.m.
RESPECTFULLY SUBMITTED:
Judy Jacobs,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE:
??
Senate Committee on Finance
February 26, 1993
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