The Committee on Ways and Means was called to order at 7:30 AM, on Friday, February 05, 1999. Chairman Morse Arberry Jr. presided in Room 3137 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.

COMMITTEE MEMBERS PRESENT:

Mr. Morse Arberry Jr., Chairman

Mrs. Jan Evans, Vice Chair

Mr. Bob Beers

Mrs. Barbara Cegavske

Mrs. Vonne Chowning

Mrs. Marcia de Braga

Mr. Joseph Dini, Jr.

Ms. Chris Giunchigliani

Mr. Lynn Hettrick

Mr. John Marvel

Mr. David Parks

Mr. Robert Price

COMMITTEE MEMBERS ABSENT:

Mr. David Goldwater

Mr. Richard Perkins

STAFF MEMBERS PRESENT:

Mark W. Stevens, Fiscal Analyst

Gary Ghiggeri, Principal Deputy Fiscal Analyst

Chairman Arberry asked committee members to take action to introduce the following Bill Draft Requests (BDR)’s:

• BDR S-1126 makes an appropriation for consultant to conduct a study of feasibility of developing method for evaluating quality of care provided to certain recipients of Medicaid.

• BDR 34-470 establishes state program for funding local programs for intercession instruction of certain pupils.

• BDR S-104 requires establishment of experimental program to extend instruction of pupils beyond scheduled school days and makes appropriations to Clark County School District for various educational programs.

• BDR S-143 makes an appropriation to the City of Las Vegas for programs for children after regular school days.

* * * * *

• BDR S-148 makes an appropriation for the City of North Las Vegas for the construction and maintenance of a youth center.

• BDR 35-665 abolishes the state highway patrol clearing account.

• BDR S-428 makes an appropriation to State Department of Conservation of Natural Resources for costs of certain litigation and costs of consultants on administration of water resources statewide.

Chairman Arberry then requested Joan Kerschner, Director of the Department of Museums, Libraries, and Arts to begin her presentation of the department’s budget.

First, Ms. Kerschner introduced Scott Sisco, Administrative Services Officer for the Department of Museums, Libraries, and Arts. Added to the department’s budget in the previous session, that position had successfully decentralized the department’s accounting system and improved its response to internal controls.

Next, Ms. Kerschner called attention to a one-shot appropriation request within Budget Account 2941, which requested $562,246 to remodel the Boulder City Railroad Visitor’s Center. However, she explained the description of the account in The Executive Budget was misleading. Therefore she presented a letter from Greg Corbin, Assistant Administrator for Railroad Operations
(Exhibit C), which more precisely detailed how those funds would be spent.

Chairman Arberry asked if the remodeling project contained in the one-shot should be considered a Capital Improvement Project (CIP) because he felt the Public Works Board (PWB) should be involved to better monitor those construction funds.

Ms. Kerschner replied the Interim Finance Committee (IFC) had allocated $2.5 million to the department in the current fiscal year, but due to budget constraints the department was requested to return $2.1 million in unspent funds. She felt the $562,246 one-shot appropriation request was not a CIP, but a light construction project, which restored rolling stock and completed construction related to passenger facilities.

Chairman Arberry informed Ms. Kerschner the issue would receive greater attention in future because he felt the one-shot should in fact be considered a CIP.

Ms. Kerschner repeated The Executive Budget’s description of that one-shot appropriation request was misleading. She said Exhibit C illustrated precisely how the department intended to spend the funds.

Chairman Arberry next cited the M-200 request for maintenance funds for the Boulder City Railroad and asked if funds from the Commission on Tourism could be utilized.

In reply, Scott Sisco said the department had worked with budget analysts from both the department and the Commission on Tourism. To support the existing functions Tourism dollars had previously provided for within the base budget, the department had absorbed the maximum amount of funds available to them. Accordingly, the limited amount of Tourism funds forced the department to request General Fund appropriations for both maintenance projects at the Ely Railroad Museum and the Boulder City Railroad Museum.

Chairman Arberry asked if the department would protest if committee members decided the funding request for those two decision units should come from the Tourism budget.

Mr. Sisco affirmed the department would not have any difficulty in using Tourism dollars for those two accounts.

Ms. Kerschner stated the base budget for the department was consistent with past levels with one minor exception. New facilities had been acquired due to the department’s relocation and to a growth in staff, which at present included an administrative services officer, a clerical position, a management assistant and a public information officer. In fact, at no additional cost to their budget, the new federal building was utilized to house the museum while a small house on Cray Street was acquired for the department’s administrative offices.

Ms. Kerschner explained further that the department’s former facility, the State Library and Archives Building, had not required the department to pay utilities expenses, thus the base budget request included a small supplemental appropriations request for $1,500 to cover utilities expenses in the new Cray Street Facility. Another minor adjustment in the base budget funded an online computer connection to the State Library and Archive’s main computer system.

Chairman Arberry referred to the M-200 Computer Network Technician position requested by the department. He noted the position had been transferred from a state employee to a contract position responsible for planning, training, and management. He asked Ms. Kerschner to elaborate on the function of that position and the cost effectiveness of transferring the position from a state employee to a contract position.

Ms. Kerschner stated the department felt the management of the computer network required a full-time Computer Network Technician. Because new computer equipment had been introduced into the Nevada State Library and other local area libraries, she said a trained professional was needed to manage local area networks. She emphasized the position was critical whether it was filled by a state employee or an outside contractor. Nevertheless, the Office of the Governor felt the contract method would be more cost efficient and it directed the department to obtain contracts through the Department of Information Technology (DoIT).

Chairman Arberry wanted to know how a contract employee would compare to a state employee in regard to workload and the $40,000 per year funding request.

Even though the workload equated to a full-time position, Ms. Kerschner anticipated $40,000 per year would only employ an on-call contract employee while the remainder of the funds could be used to train existing staff members.

Chairman Arberry inquired if an hourly rate existed for that position. Ms. Kerschner replied negatively and stated contracts for those positions were made through DOIT. Accordingly, Chairman Arberry requested that information on the anticipated hourly rate for the contractor versus the rate for a state employee to be provided at a future date. Ms. Kerschner said although she thought the rate was about $70 to $80 an hour, she would provide more specific comparative information at a later date. She noted that a contractor with specialized knowledge in Macintosh computers would be needed as DOIT’s contractors dealt solely with IBM technology.

Ms. Kerschner relayed the last item within the budget account was the transfer of the Nevada Humanities Committee, formerly contained by the Nevada Arts Council Budget Account 2979, to Budget Account 2892. Requesting a $9,000 budgetary transfer, she felt the transfer was a more appropriate location because the Nevada Humanities Commission worked with all of the department’s agencies.

Ms. Kerschner presented Susan Boskoff, Director of the Nevada Arts Council.

Ms. Boskoff said the current Base Budget reflected Recommendation #4 of the 1998 Base Budget Audit. Although the base budget review had been time consuming, Ms. Boskoff felt both the process and the outcome benefited the agency greatly. Expenditure categories had been re-organized to better identify and isolate grants and programs for tracking purposes. She noted the agency had also renamed certain expenditure categories to better reflect their purpose and activity.

Ms. Boskoff said positions funded in the last biennium had allowed Scott Sisco, the department’s Administrative Services Officer, and Carol Edling, the Arts Council’s first dedicated financial management officer, to produce a workable system that automated the agency’s expenditure tracking system, developed an internal control and grant management procedures guide, and revamped the agency’s entire financial management system. Furthermore she believed the new level of funding, represented in the Base Budget, allowed the Arts Council to increase the breadth of its reach through its grants and programs.

Because the FY 1998 Annual Report was still being produced, a list of statistics on grants and a lists of statistics related to program activity (Exhibit D) were provided to committee members to illustrate the broad spectrum of the agency’s achievements. Ms. Boskoff said the agency was not surprised to see a growth of applications from all new and emerging organizations including music, dance, theatre, film, literature, and a number of cultural and ethnic communities.

Ms. Boskoff also cited the folk arts program, which had been extremely active in past years. In fact a number of folk art initiatives had garnered support and recognition regionally and nationally.

Ms. Boskoff said one example of the Arts Council’s growth in program activity was the 10^th Anniversary Folk Arts Apprenticeship Exhibit developed by the Arts Council alongside its sister agency, the Nevada State Museum. The exhibit would be installed in the state museum in the northern part of the state for one year, followed by an installation in the state museum in Las Vegas. It would feature a collection of arts and crafts, interviews, videotapes of performers and workshops incorporating traditional and folk arts from ranches, rural communities, colonies, reservations, and urban centers.

Next, Ms. Boskoff highlighted the agency’s coordination and planning activity in The Great Basin Tribal Gathering, which was held the previous summer in conjunction with the Inter-Tribal Council of Nevada. The gathering was an outgrowth of the Nevada Native American Cultural Survey, which involved Nevada’s 25 Indian colonies and reservations. Ms. Boskoff said the gathering attracted 200 native Indians from the Great Basin tribes for 4 days of celebrating and sharing their valued traditional arts and practices.

Additionally, the Arts Council had been successful in developing the Community Roots pilot program, a project that provided intensive training to interested citizens in locating, documenting, and programming local folk and traditional artists and practices. The program was implemented in two rural communities, Tonopah and Wells, and two Las Vegas communities, a Latino community at the Rafael Rivera Community Center and an African American community at the West Las Vegas Arts Center.

Ms. Boskoff then presented "Different Hairs on the Same Dog: The Work of a Public Folklorist," (Exhibit E) which was a publication produced with the Western Folklife Center to honor a past staff member, state employee, and friend, Blanton Owen. Mr. Owen had died earlier this year when his plane crashed in Washington State as he was finishing work on an archeological survey. She explained Mr. Owen was a quiet pioneer in Nevada, who had created a new way in which public folklorists did business and she felt his extraordinary work touched the lives of many communities in many states. Furthermore, Ms. Boskoff informed committee members the American Folklife Center in the Library of Congress was considering publishing a book of
Mr. Owen’s photographs and establishing a foundation in his honor. A travelling exhibit would visit the lobby of the Nevada Legislative Complex.

Another achievement for the Arts Council was the reprint of "The Neon Quilt: Folk Arts in Las Vegas." (Exhibit F)

In regard to artist services, Ms. Boskoff said the Arts Council had used funds allocated in the previous session to develop a program called "The Legislative Exhibition Series (LXS) On the Road." The program, created in response to geographically and culturally isolated communities, had traveled to Elko, Winnemucca, Eureka, Carson City, and Las Vegas. Ms. Boskoff stated Sharon Mazcko, an artist from Wellington, would be the first artist to be spotlighted.

Ms. Boskoff next noted the Arts Council had been active in art education. For example, in conjunction with Churchill County, the Arts Council had developed a new program called "Writer’s in Residence Electronically" (WIRE) which allowed children to interact with writers and other students throughout the state and region. Another program called "Youth Arts Works" collaborated with the Sierra Arts Foundation to train taggers to create works of public art through community murals. The taggers program was highlighted in last summer’s U.S. Conference of Mayors and in a television special taped in Reno’s cable access station with the U.S. Secretary of Labor, Alexis Herman.

Next, Ms. Boskoff said the Arts Council had become involved in community arts development through various programs including a statewide arts conference in Elko, where over 150 people attended. The Arts Council had planned 27 Arts Town Meetings, which focussed effort on the activities of the new Las Vegas office. Notably, by measuring success in terms of request for services, Ms. Boskoff mentioned the new office was extremely successful, especially illustrated by the Las Vegas Office Activity Report (Exhibit G).

Ms. Boskoff last noted the Arts Council had completed construction of its public art project in front of the Nevada Supreme Court building.

Chairman Arberry interjected to ask if the Arts Council had attempted to attract blockbuster art shows featuring artists such as Pablo Picasso.

Ms. Boskoff replied blockbuster art shows were difficult to attract, as they required proper facilities with adequate security. Although a Moreau exhibit and a Rodin exhibit had toured in Reno and Las Vegas, she found most facilities, especially in southern Nevada, were not accredited and could not provide secure surroundings for such exhibits. Other concerns included costs of acquiring such shows for the Reno and Las Vegas areas. In any case, Ms. Boskoff felt the Arts Council would continue to gradually attract those types of exhibits.

Chairman Arberry asked if fees would be charged should the Arts Council sponsor a blockbuster show. Ms. Boskoff replied affirmatively, citing minimal fees charged for the Rodin exhibit. She stated the interest for blockbuster shows was also being assuaged by area hotels and casinos, such as the Hotel Rio in Las Vegas, where a collection of 19^th century Russian artifacts were being displayed.

Ms. Giunchigliani inquired about the status of a regional art center promulgated by Assemblyman Mortenson. Ms. Boskoff declined to comment on the proposed art center, as she did not have adequate information. Ms. Giunchigliani commented the purpose of such a facility would be to expand coordination and the space available for such high budget art shows and performing arts activities.

Mrs. Cegavske asked if the Arts Council had completed its design of the new Driver’s Education Pamphlet. Ms. Boskoff responded the cover for the new brochure for teenage driver’s was being designed in a competition amongst area art students. A design and layout would be available by the following week.

Mrs. Cegavske next encouraged committee members to visit the Republican Caucus meeting room on the third floor of the Legislative Building where watercolor representations of the Nevada State symbols were exhibited.

Next, Mrs. Evans expressed her appreciation for the work of Ms. Boskoff and other members of the Arts Council. As a result of legislative meetings in Seattle, she mentioned committee members had the opportunity to witness the creative and positive value of urban art programs. Also, she commented upon the breathtaking photography on display at the Nevada State Library encouraging committee members to visit the display.

Following Mrs. Evans, Mr. Price wondered where the tagger displays could be viewed and if the railroad could also be utilized in the tagger program. Ms. Boskoff remarked she would provide Mr. Price with a list of four to five mural locations in the region. In regard to the tagger program, Ms. Boskoff said its success was a result of the commitment of the Reno Police Department. Because the program was a training activity involving the Nevada Museum of Art, not a punitive activity, its success was noteworthy. In fact students were trained in graphic design, laws and regulations of signage, and portfolio development in order to channel their talents away from questionable activities. Rules and regulations also existed to prohibit the placement of gang related expressions upon murals. Interestingly enough, Ms. Boskoff stated the tagger program was most prevalent in the more affluent socioeconomic areas, not just in inner-city regions.

Mr. Marvel then asked how much grant money the agency had received from the federal government and if it expected any increases in the upcoming biennium. Ms. Boskoff replied the agency had received $486,000 in grants from the National Endowment for the Arts (NEA) and the department would be eligible for a like amount in October 1999. Because of the competitiveness of the process, a base budget of only $405,000 was guaranteed while additional grants in arts education and programs for under-served areas were competitively distributed. In reality, she stressed if the agency could not compete on a national level, grants would not be allocated and could not be guaranteed.

Mr. Marvel followed his previous line of questioning by asking if the agency had developed a tracking system for grant expenditures and agency expenses. Ms. Boskoff deferred to Scott Sisco, who replied the Arts Council had reorganized their budget account by creating an automated tracking system for expenditures and that expenditure categories were realigned to more easily track expenditures for a single program. Mr. Marvel asked if those changes were reflected in the current budget. Mr. Sisco responded affirmatively.

Mrs. Evans wondered if more partnerships or co-sponsor-ships with private-sector corporations such as the Nevada Mining Association or Sierra Pacific Power could be fostered to bring larger art shows and programs to the state.

Ms. Boskoff replied Nevada Museum of Art had received a yearlong sponsorship to open the Museum free of charge on Sundays. She noted most grantee’s from other cultural organizations worked diligently with outside organizations or private corporations to facilitate greater partnerships and increase funding for the arts. Although encouraged on an individual level, Ms. Boskoff explained the agency refrained from such activity because it did not want to compete with the scarce resources available to Nevada’s art community.

Next, Mrs. Chowning expressed her appreciation for the work of the Arts Council. After reviewing performance indicators, she felt the quantity of K-12 student enriched by the Council’s projects was twice the projected level and she commended the agency for its success and its assistance in raising educational standards within the state. Finally, Mrs. Chowning inquired if the effects of the grants awarded by the agency could be measured and included in the agency’s performance indicators.

Ms. Boskoff emphasized the success the Arts Council had attained in increasing educational programs for students K-12. She felt grantees had made an exceptional effort in outreach programs to develop the artistic talents of Nevada’s youth. She thanked the staff members of the Arts Council as well.

Chairman Arberry next remarked the 1997 Legislative Session had allocated funds for a position in Las Vegas and had requested the agency to report on the status of the position, including its accomplishments and permanent location. Specifically he wondered why the position had yet to receive permanent housing.

Ms. Boskoff explained Richard Hooker, the Community Arts Development Associate had been using donated space from the West Charleston Campus of the Southern Nevada Community College. Moving from module to module on the campus, Mr. Hooker continued to search for a more centralized location, possibly within the downtown arts corridor. Ms. Boskoff stated that by the coming summer, Mr. Hooker hoped to be permanently situated. Referring to Exhibit F Ms. Boskoff outlined the position’s accomplishments:

• In four months, Mr. Hooker had participated in 42 meetings and on-site visits;
• had processed 600 phone calls and information referrals;
• had provided 20 technical assistance services to outside organizations;
• had provided 40 direct assistance services to artists;
• had been involved with the programming at the NCSL conference.

Ms. Boskoff said the last items within the Arts Council Budget were maintenance items. She cited one contract position in M-200, which was transferred into a Cultural Resource Specialist II. The transfer from contract employee to state employee had been made because the Attorney General’s Office felt the activities and duties of the position were more closely related to that of a permanent state employee. Another item contained within M-206, was recommendation for the allocation of $4,900 to expand the publication of NEON, the Arts Council’s journal. Enhancement E-720 allocated funds for software upgrades for the fiscal services officer.

Following Ms. Boskoff, Kathy Bartlett, Chairperson of the Nevada Arts Council, thanked committee members for consideration of the Arts Council budget and for their vision in recognizing the fact that the arts were part of a critical solution to economic and cultural diversification as well as to educational reform. She noted specific challenges within the current biennium’s budget and expressed her appreciation to the Office of the Governor for its support.

Because the Arts Council was highly committed to accountability, Ms. Bartlett said statewide constituent surveys and initiatives were undertaken by council members at no additional expense and without the support of staff. Through candid dialogue with constituents, the council was able to evaluate its performance as an agency and its visions for the future. Foremost, she relayed constituents felt grant levels were the most pressing issues. However, she also noted a high level of appreciation existed for the technical assistance provided in the field by the council’s staff. She remarked the agency’s professionals were nationally recognized as some of the most proficient in their field.

Ms. Bartlett said the agency’s technical assistance had produced tangible results For example, in Las Vegas, Allied Arts and Art Reach, in conjunction with Arts Council staff, had been able to attract a greater share of NEA monies for community based programming. The City of Reno also received funds for community outreach with the agency’s assistance.

Ms. Bartlett next stated artists residencies, where artists were placed in classrooms to work alongside teachers, had been another important program to constituents. Sadly, Ms. Bartlett noted the program had become a replacement for fine arts programs in the public education system, rather than the valuable enhancement it was intended to be. However, she was heartened by the enthusiasm of the agency’s staff who provided the outreach and technical assistance necessary to help constituents develop better arts programs.

In fact the she believed the state’s investment in those programs had more than maximized their return.

Additionally, she mentioned the council would be evaluating the economic impact of the various arts programs in partnership with the private sector. The council’s goal was to provide committee members with preliminary statistics in May 1999 in order to understand arts as an industry in the state. As a result a local economist would be hired to help the Western State’s Arts Federation.

Last, Ms. Bartlett requested an augmentation of the council’s budget should additional funds be available in May after the Economic Forum study. Those funds would be used in programs beneficial to local economies and tourism in the state.

Ms. Kerschner proceeded to explain the Museums and History budget would be presented by Dr. Peter Bandurraga, the Acting Director of the Nevada Historical Society and the Acting Director of the Division of Museums and History.

Mr. Bandurraga first invited committee members to the department’s reception, which would be held at the Nevada State Railroad Museum on
November 11, 1999.

Mr. Bandurraga explained the Division of Museums and History was primarily an administrative unit or an umbrella organization for the various museums within the department. The division operated with three staff members, including an accountant and an assistant administrator in residence in Boulder City. A division facility existed in Boulder City as a maintenance facility for train equipment and trackage.

Within the budget account, Mr. Bandurraga called attention to a maintenance decision unit which called for operating funds to maintain engines, trackage, and fire protection tools. Another maintenance decision unit, M-201, requested funds to connect four of the state museums into the Cooperative Library Automation Network, (CLAN), allowing the institutions to communicate effectively with one another and to access specialized collections that were stored in museum databases.

Chairman Arberry asked Mr. Bandurraga to explain why the $562,246 one-shot appropriation was not a CIP project. Mr. Bandurraga referred to Exhibit C and explained a special appropriation of $2.5 million had been made 4 years prior for site development at the Boulder City Railroad Museum. Subsequent land, soil, and habitat studies, roadbed work trackage had been planned. Yet in order to develop contracts for the work, assurance for the funding of the placement of trackage had to follow. Renny Ashleman, Chairman of the Board of Museums and History, explained that when it had become apparent the funding required to contract would not be available in the current biennium, the unused portion of funds totaling $2.1 million was reverted.

Mr. Bandurraga said the $562,246 figure was a portion of the original funds being returned to the department. Moreover, because the department had reorganized the Boulder City project in order to produce a tourist based train operation, funds for the completion of track work, a passenger facility, and other remedial tasks were still needed.

Mr. Ashleman interjected the department had both a valuable piece of property and equipment suitable for the project’s installation. He noted that because the project could not be installed without support from the private sector, fundraising had begun throughout northern and southern Nevada and a professional fundraising consultant had been hired. Optimistic that private sector support would expand, Mr. Ashleman noted the facility needed to be operational in order to continue that support. Therefore, he felt the one-shot appropriation was critical to the success of fundraising efforts and to the expansion of the Boulder City Railroad Museum.

Chairman Arberry asked Mr. Ashleman if Boulder City could match funds for the railway crossing. Mr. Bandurraga replied Boulder City had already allocated a significant amount of funds towards rolling stock and equipment purchases. He also said Greg Corbin, the assistant administrator, had been extremely successful in acquiring parts and maintenance equipment from local vendors. Donations and solicitations for funds had already been made to support the railway-crossing project. Essentially, Mr. Bandurraga felt safety issues necessitated the completion of the crossing.

Mr. Ashleman added Boulder City had provided funds to repair and resurface access roads into the project.

Mr. Bandurraga informed committee members the State Museum in Carson City had expanded to include a storage facility in Douglas County for archeological and historical collections. He also noted due to a previous CIP, the museum had acquired the old First Interstate Bank (FIB) building. A CIP in the current biennium would renovate the building to create gallery space and a museum store. Scheduled for completion by January 2000, the project would also renovate public restrooms and meeting rooms, increasing the museum’s square footage to 100,000 square feet.

Mr. Bandurraga also mentioned the construction of the park between the old and new buildings. He felt the park would be an excellent meeting point for museum visitors and tours.

Mr. Marvel asked Mr. Bandurraga to describe the current situation in relation to the renovation of the former Golden Spike Casino. Mr. Bandurraga believed it was being renovated into an office building. Moreover he stated the museum’s design coordinated with the city’s re-development designs.

Chairman Arberry referred to CIP 99-C10 and asked when it would be completed. After approval, Mr. Bandurraga said the project could be completed in 8 months or by January 2000.

Chairman Arberry then asked when CIP 97-C2 would be completed and why a new custodial position was requested in the budget. Mr. Bandurraga felt that with over 100,000 square feet of space in Carson City alone, a second janitorial position was necessitated. The new janitor would be responsible for the four buildings located in Carson City and Douglas County. For similar reasons, Mr. Bandurraga noted an additional security officer was also needed.

Referring to CIP 97-C2, Ms. Kerschner replied additional monies in the existing CIP to acquire the FIB building were being used to construct the park. Those funds would be combined with the new CIP to complete the renovation of the building.

Mr. Price asked if prison crews could be used for custodial purposes.
Mr. Bandurraga said prison crews had been used in the past for landscape maintenance.

Next, Mrs. Chowning asked why the visitor counts and the admissions income for the upcoming biennium were less than the actual figures for the current fiscal year. In response, Mr. Bandurraga explained those projections were made before the department had an accurate idea of when the new museum project would be completed. He believed they were a conservative estimate and he stated the budget projections would be revised.

Mr. Bandurraga next noted there were some additional enhancements to the State Museum’s budget account including a ticket-dispensing machine and computer equipment related to CLAN.

Mr. Bandurraga felt the base budget for the Historical Society account was straightforward. He mentioned the society had completed the renovation and remodel project funded in the previous session. A grand opening for the facility would be held April 29, 1999. A local Reno artist from the 1930s would be featured.

Mr. Marvel asked if the society had corrected its flooring problem. Mr. Bandurraga replied a soil-engineering firm had been hired and once renovation work was complete, engineers would be better able to investigate the problem. He felt the society would probably request funding in the next biennium to mitigate the cause.

Chairman Arberry next asked Mr. Bandurraga to clarify when the renovation would be complete and if the society expected an increase in visitor count.
Mr. Bandurraga said the remodel would be finished in three weeks and he felt the visitor count would increase in the current biennium.

Chairman Arberry then referred to Tourism funds that had been transferred to the society for equipment purchased in the last biennium. He wondered how equipment would be funded without Tourism monies available.

Mr. Bandurraga deferred response to Mr. Sisco who explained that because Tourism monies were not available during the time the department was preparing its budgets, they were not included in the budget requests. Mr. Bandurraga added that in the last biennium’s allocation to the Historical Society budget, Tourism dollars had only funded the purchase of a van for the transport of staff and collections.

Mr. Sisco said the department had been concerned that an over-reliance on Tourism funds in the budget would be detrimental in case of a downturn in the Tourism industry. Therefore the budget used Tourism monies only where they continued to fund on-going expenditures.

For administrative convenience, Mr. Bandurraga said he would also refer to the East Ely Railroad Depot Museum in the State Railroad Museum account.

In decision unit M-200, Mr. Bandurraga said the agency requested $9,700 to fund the complete renovation of the freight barn at the East Ely Railroad Depot. Also, in terms of enhancements, the agency requested the addition of a Management Assistant II. Mr. Bandurraga explained that position was requested because inefficiencies and inconveniences had resulted from agency and state museum staff performing those financial duties. He felt if the position was added to the State Railroad Museum budget, the ability of the museum to handle its own affairs would be enhanced.

Chairman Arberry asked Mr. Bandurraga to elaborate on the roofing situation at the East Ely Museum. Mr. Bandurraga explained the museum’s roofing project would be finished in the near future.

Next, Mr. Marvel asked Mr. Ashleman what type of funding requests the East Ely Railroad Museum had made before the last Cultural Commission. Mr. Ashleman said the museum had requested funds for the enhancement of a coach shed, for window replacement and for other maintenance items. He noted the commission did not approve those requests because the facility did not provide adequate security and the requests were not deemed an immediate priority.

Mr. Marvel then asked if there was enough money to complete the shed repairs. Mr. Bandurraga corrected Mr. Marvel and clarified there were two different projects. The East Ely Railroad Depot Museum was an agency of the Division of Museums and History and it consisted of a depot building and a freight barn next door. The shed repairs and maintenance requests to which Mr. Ashleman referred were under the control of the City of Ely and the Northern Nevada Railway Association (NNRA), a separate non-profit agency outside the division’s authority.

Mrs. Chowning asked Mr. Bandurraga to explain the meaning of "rolling stock." He stated rolling stock referred to trains and train equipment. In Ely, he explained the department was not operating trains. The department owned and controlled only the depot building and the freight barn next door, whereas rolling stock was property of the City of Ely and the NNRA. In the Carson City Railway Museum, however, the department owned rolling stock and it was that stock to which the budget account referred.

MUSEUM AND HISTORICAL SOCIETY -
BUDGET ACCOUNT 2943, PAGE MLA 25

Mr. Bandurraga introduced Shirle Naegle, Director of the Nevada State Museum and Historical Society in Las Vegas.

Mr. Naegle stated the base budget for the Las Vegas division of the Nevada Historical Society maintained a consistent level with the previous budget. Neither new positions nor new programs had been added.

Mr. Naegle then addressed the agency’s budget requests. He said the first enhancement E-375, requested funds to replace fire doors that had failed to meet safety regulations. The second major enhancement requested funds for compact shelving to double the usefulness of storage space in the Las Vegas Historical Society’s library facility. That enhancement would increase public access and space available for additional collections. A third enhancement budgeted $6,500 to purchase equipment for a spray booth that would allow the society to continue to design and construct their own exhibits and eliminate fumes from the building. Fourth, E-730 requested $3,500 to purchase a cooling tower in order to cool water for the agency’s air conditioning equipment. Mr. Naegle explained that alleviating the stress placed on the old air conditioning unit would increase the efficiency of the equipment. Finally, funds for security cameras and the modification of air equipment were also requested.

Mr. Marvel asked what action the agency had taken to increase the visitor count to the Las Vegas facility.

Mr. Naegle noted that since the construction of the facility, visitation had been an ongoing challenge. Primarily, he felt the location of the building hindered its visibility despite efforts to increase signage and advertising for the museum. To increase patronage to the museum, the City of Las Vegas had produced signs and placed them at no cost to the society. Cards and brochures had even been printed, advertising the location of the museum to no avail. The museum had also increased advertising toward increasing awareness in area schools. Unfortunately, Mr. Naegle explained school districts worked with limited budgets and certain restrictions that limited their ability to visit the museum.

Mr. Marvel queried if an increase in visitation had been noticed. Mr. Naegle said although school attendance had increased, in other areas only a marginal performance had been recorded. Due to limited resources, Mr. Naegle admitted the museum was serving a fraction of Nevada’s population and the visitation numbers were not as high as the museum had hoped they might be. Nevertheless he described the museum’s effort to attract constituents by using a new tracking survey that would help the agency better understand how the general population learned of museum attractions and in what areas the museum had been particularly successful.

Chairman Arberry followed Mr. Marvel’s line of questioning by requesting Mr. Naegle to explain the performance indicator that projected an increase in attendance alongside a static admissions fee.

Mr. Naegle responded the projected attendance figures had been developed with the assumption that a marketing position would be added to the agency’s first budget proposal. Initially, the agency felt a marketing position would increase the stature of the museum in the community, thereby increasing attendance in the future. Budget revenues were also projected to be greater for that period. Mr. Naegle thought once the new positions had been denied the budget office adjusted those figures to a more reasonable amount. He noted the projected attendance figures in the performance indicators had been revised afterwards to correct that deficiency.

Chairman Arberry interrupted to ask Mr. Stevens to determine how much of the $200,000 allocated in CIP 97-S41 remained for the agency.

Mr. Ashleman then remarked that in prior subcommittee meetings, questions concerning museum attendance had been addressed and committee members subsequently concluded that attendance would never be as high as staff hoped while the museum operated from that location. Moreover, he said the Board had spent an extensive amount of money on public service announcements, advertising, and community outreach to facilitate greater attendance, almost without result. Mr. Ashleman thought the agency should consider a location change, which might prove advantageous in terms of attendance and community exposure. Sorrowfully, he felt the community did not utilize the facility to its maximum potential and after copious attempts to attract more visitors, the agency concluded a location change would be the only solution.

Mrs. Cegavske pondered the possibility of increasing advertising efforts through brochures to schoolchildren. For instance, she felt the agency could work with high school arts publications like Class Magazine to increase awareness. Furthermore, she felt offering incentives such as coupons or reduced admission to parents would be a useful avenue for the division to explore in order to increase attendance and she offered her assistance in the matter.

Next, Mr. Marvel asked why the IFC subcommittee had decided to maintain the museum’s location at Lorenzi Park. Aside from the dearth of feasible alternatives at that time, Mr. Ashleman responded the cultural corridor comparatively did not seem to provide advantages in terms of increased attendance or exposure. Mr. Ashleman remarked he appreciated the offer from Mrs. Cegavske as he felt targeting the K-12 population would be beneficial, but he continued to believe an alternative location for the museum would be the best solution. Currently, several options for a new location existed and the agency was considering retaining the site at Lorenzi Park for its researchers and scholars. He said the City of Las Vegas and Clark County would work cooperatively with the agency to relocate the museum in an economically feasible manner.

Mr. Dini asked if the department had a marketing professional on its staff who could be responsible for developing marketing programs or cooperative agreements with tour bus companies to increase attendance.

Ms. Kerschner replied a department public information officer was responsible for a number of similar activities. Also, grant funds had been acquired to create public relations television spots for museums in Las Vegas and Reno. Through the public information officer, work on public access programs, and interviews, especially targeted to the Las Vegas area, had already begun.

Mr. Dini repeated he felt cooperative agreements could be explored with tour bus operators. Mr. Naegle said tour buses had been routed through the museum in previous years. The problem was not cost-related, but was related to the location of the museum. Tour bus operators did not feel the museum’s location could draw sufficient interest to merit servicing the museum.

Mr. Naegle clarified the projected attendance in the performance indicators was based on increasing the number of children attending the museum. Because admission was free of charge for children, an increase in attendance by that age group would not affect the agency’s admissions revenue.

Mr. Price asked if the agency had contacted members of the film industry to use the museum as backdrops in films or commercials. Mr. Naegle replied the agency had made such contacts and although a few commercial spots had utilized the museum’s location, it had yet to be used in a feature film.

Chairman Arberry then pointed out a discrepancy between performance indicator number two, which provided a figure for the attendance of school children and Mr. Naegle’s remark that school children had been built into the figure for total attendance.

Ms. Kerschner corrected Mr. Naegle’s explanation of the attendance projections and explained the original projections concerning the total attendance of adults to the museum relied on additional positions to the division’s budget. Because the budget had been leveled those figures for attendance had been adjusted to reflect the budget alterations. The figures reflecting the attendance of school children only reflected the constant level of revenue for the museum.

Mr. Bandurraga explained the Lost City Museum was housed in an adobe structure built circa 1930s and was adjacent to a stucco structure constructed circa 1970. The museum, located in Overton, housed Anasazi artifacts retrieved from the bed of Lake Mead.

In terms of size and scope the museum was extremely successful. A frequented stop on many tour bus routes as well as for visitors to Red Rock and Utah, it was open 7 days a week with a 6-position.

Mr. Bandurraga noted the most essential item to the facility was an M-200 request for $15,000 per year to maintain the adobe structure. Mr. Bandurraga reminded committee members the museum had requested funds to repair eroded portions of the adobe structure many times before. He explained that because adobe was a mixture comprised of mud, straw, and water, it was subject to the vagaries of Nevada’s weather patterns. Also, the stucco facility adjacent to the adobe contributed to its erosion by channeling water runoff toward the adobe structure.

Currently, Mr. Bandurraga said the museum was completing a prior CIP to repair parts of the structure. However, the department had concluded a permanent solution to the problem did not exist and the museum would have to be maintained by making and replacing the bricks as needed. The $15,000 request would supply the process of remaking the adobe bricks. In fact, an onsite expert, who was experimenting with various mixes of adobe, had trained staff members who would in future be able to repair the adobe bricks themselves.

Chairman Arberry understood the contractor had a specialized knowledge in the repair of the facility. He wondered if the contractor had successfully completed his duties. Mr. Bandurraga felt that although the project was nearing completion, it had not been performed particularly well. Chairman Arberry felt the contractor should be penalized as he was hired with the understanding that the type of work could be completed to specification. Mr. Bandurraga said it was the decision of the PWB to penalize the contractor and to attempt to recoup damages.

Next, Mrs. Evans inquired if it would be possible to alter the surface of the adobe while maintaining the general appearance or flavor of the structure. She wondered if new construction technologies existed to retain the adobe look in a more long lasting and durable manner.

In reply, Mr. Bandurraga explained because of adobe’s peculiar nature, substances did not adhere to it. The current fix attempted to plaster over the adobe bricks and where there had been bricks, the plaster was sculpted to emulate the adobe brick form.

However, Mr. Price felt it would be damaging to change the content of the adobe structure and that every effort ought to be used to maintain the original adobe structure.

Mr. Dini asked if museums had ever coordinated with State Parks because a similar problem with the adobe structure had occurred at Ft. Churchill. Mr. Bandurraga explained the content of the adobe mix depended largely upon the location of the site. Staff members were currently testing alternate grades of adobe mix. Mr. Bandurraga noted prison crews could be used in the brick making process.

Ms. Guinchigliani asked if a straw-bale concept could be adopted, using the adobe mixture on the exterior. That method would allow the adobe to be strengthened by a wire framework while preserving the effect of the adobe.

She felt new technologies were available to increase the durability of the structure.

Mr. Bandurraga assured committee members every effort was being made to investigate alternate methods of adobe construction that would be longer lasting.

Mr. Bandurraga last mentioned the budget request for new equipment. He suggested that a Program Assistant III, which had been eliminated in The Executive Budget, be returned to the museum’s budget if the Economic Forum projected increased state revenue in May. The position would be responsible for opening the building and maintaining the museum’s library and artifact collections.

COMSTOCK HISTORIC DISTRICT - BUDGET ACCOUNT 5030, PAGE MLA-33

Ron James, State Historic Preservation Officer, explained the Comstock Historic District Commission conducted an architectural review within the Comstock Historical District, one of the nation’s largest landmark districts. A public education program, which concentrated on facilitating tourism and economic development, also trained volunteers to repair cemeteries and maintain archeological dig sites.

Mr. James thanked committee members for their support in the last biennium because it had allowed the agency to increase their staff by 1.5. He said the commission was a dynamite agency, which had accomplished a great deal with minimal resources. Experiencing an increase in workload, Comstock Historic District Commission was in the process of developing new standards for architectural review in the district. Furthermore, the commission had held workshops in Dayton and Silver City to create standards sensitive to local needs. In fact, those workshops helped the agency negotiate a compromise between various local groups concerned with historic preservation.

Within the last two years, Mr. James revealed the Comstock Archeology Center had been created to systematically address the archeological questions in the district. For instance, due to the center’s direction, excavations at Piper’s Opera House and the Corner Bar were undertaken. Next, he reminded committee members to attend the department’s reception at the Carson City Railroad Museum on February 11, where the division would premiere a two foot tall carbon water filter uncovered at the Piper’s Opera House excavation.

With the help of private sector resources, Mr. James expressed the agency hoped to begin another excavation at the site of the former Boston Saloon, which was one of the few African American establishments dating back to the 1860’s. He said at that site a test dig had uncovered over 700 artifacts in a one cubic meter space. Mr. James next displayed a piece of guilded porcelain found at the site to demonstrate the potential value of excavation. He emphasized because the nature of the African American population in the West during that time period was peripatetic, the site was of remarkable interest.

Next, Mr. James noted fundraising efforts had been initiated to construct a building to curate those artifacts and house the center’s office, which currently occupied a space of 300 square feet. He felt one facility should be built to house the Archeology Center and also to exhibit railroad equipment dating back to the Comstock, instead of constructing two inadequate facilities.

Mr. Dini asked Mr. James to explain why the shed for Engine No. 27 had yet to be built. Mr. James reiterated funding for a combined facility would be a more reasonable alternative to the construction of separate shed and Archeological Center facilities. Mr. James stated the division had secured a land donation on E Street. Pre-architectural designs had also already been donated, leaving a proposed budget of $400,000 to construct the Archeological Center building with Storey County assistance. Because local interest existed to also display a piece of the Virginia and Truckee Railroad equipment, new designs utilized glass panels that would allow for a 24-hour exhibition of the engine. The original appropriation of $28,000 constructed a completely closed tin shed with minimal security and no display value.

Mr. Dini asked if the $28,000 appropriation had been reverted back into the General Fund. Mr. James replied those funds were part of the Public Works budget and there was no danger of those funds being reverted. Mr. James thought PWB had entered a cooperative agreement with Storey County to allow them the use of those funds should the remaining construction funds become available.

First, Mr. James informed committee members the State Historic Preservation Office had entered a new protocol with the Bureau of Land Management (BLM) which would streamline the review process conducted by BLM on behalf of cultural resources. The new protocol would decrease the amount of funds developers would have to expend in order to comply with the National Preservation Act.

Also, the agency has been successful in responding to constituency requests to draft nominations for the National and State Register. Subsequently, that need had been increased by the existence of the Commission on Cultural Affairs. Mr. James described a groundswell of popular support for the Commission throughout the state, including in Las Vegas, the state’s newest certified local government under the National Parks Service Program.

Mr. James next presented committee members with copies of the most recent State Historic Marker’s booklet (Exhibit H). He explained the booklet had been designed to show tourists the locations of the various historic markers and to give an overview of state history to schoolchildren. The book had been extremely popular and widely distributed.

In terms of Cultural Commission Affairs (CCA) projects, Mr. James said 36 projects had been funded to date. He noted the agency had published new guidelines for the National Register and had formed a cooperation with the University of Nevada, Reno to analyze artifacts.

Mr. James did not feel there were any enhancements in the budget account that were pressing.

Next, Mrs. Chowning requested an update on the locations that had received cultural preservation funds. Because Kyle Ranch had not received any of those funds, she asked what guidance the agency had given to presenters in order to make their requests more effective.

In response, Mr. James noted Kyle Ranch could reapply for those funds on October 1, 1999. He explained a number of projects had not received funds in the last term because other projects were of higher priority to the Cultural Commission. However, the commission would continue to work with the six unfunded projects so that in the next term they would receive the commission’s endorsement.

Mr. Dini asked Mr. James to elaborate on the commission’s first completed project. Mr. James said the first project completed had been the Gene E. Dini Performing Arts Center in Yerington. He emphasized the importance of local resources and commitment to the completion of those types of projects.

Mr. Dini added that the Dini Center demonstrated the fact that projects could be completed with the help of local funds. He stated the Cultural Commission had allocated $800,000 and the public had been able to match that allocation in order to complete the center.

Mr. James said even though the Cultural Commission did not require a local match, it did encourage local support and the matching rate for those projects approached an average of 75 percent.

First, Ms. Kerschner called attention to the breadth of activity within the State Library. She also noted the library operated the State Publications Distribution Center, the State Data Center for access to census material, the Regional Library for the Blind and Physically Handicapped, three rural bookmobiles, and managed the Library Services and Technology Act, which provided grants to libraries statewide. Additionally, she said the library was responsible for state and local master plans for public libraries as required by statute for the administration of a program of certification for public libraries, and for the administration of state funds designated for public libraries. She informed committee members the State Library Account was also the administrative budget account for the Nevada State Archives.

Ms. Kerschner stated the base budget did not exhibit any real changes, except for a request to include the funding from the State Aid for Public Libraries Act in the base budget. She explained due to current funding restrictions, The Executive Budget recommended removing that legislation for the base budget.

Also, Ms. Kerschner noted because the cost of books was increasing, inflation for books was included in the first fiscal year of the biennium, totaling $11,541.

Chairman Arberry asked why the position of State Librarian had not been restored as requested by the 1997 Legislative Session. Ms. Kerschner mentioned that in spite of the state’s hiring freeze, permission from the budget office had been given to hire a State Librarian. She hoped the position would be filled within the next two months.

Next, Mrs. de Braga referred to past concerns over the rural bookmobiles and asked if the program was sufficiently funded. Ms. Kerschner said the bookmobile funding had remained constant, however an increase in local funds had been able to mitigate most of the past concerns concerning the bookmobile subsidies.

Then, Mrs. Evans acknowledged the accomplishments of Ms. Kerschner who had fulfilled the responsibilities of State Librarian as well as Administrator for the department. She remarked Ms. Kerschner had performed excellently and commended her for her good work. She then stressed the importance of hiring a new State Librarian.

ARCHIVES AND RECORDS - BUDGET ACCOUNT 1052, PAGE MLA-46

Guy Rocha, State Archives and Libraries Assistant Administrator, attended by Jeff Kintop, the State Archives Manager presented the budget for the Division of Archives and Records.

Chairman Arberry requested Mr. Rocha to elaborate on E-730, which recommended the movement of gas lines behind the Library and Archives building. He wondered why it wasn’t a CIP project because he felt PWB should be involved.

Mr. Rocha explained the water and gas mains were inappropriately placed. For instance the water main restricted access and did not meet requirements. The gas main was also a hazard because it was too close to exhaust towers. Ms, Kerschner added the division had requested PWB to handle the problem. The PWB determined the project was minor and should be handled by Buildings and Grounds. Buildings and Grounds had even disagreed and returned the project to PWB. After much discussion and work, it was finally decided Buildings and Grounds would oversee the movement of the lines.

Mrs. Chowning referred to performance indicator number seven and asked how the division had increased the number of educational presentations from 100 to 367 presentations. She also asked why those presentations were expected to decline in FY 1999.

Mr. Rocha said the archives program, record program, and micro-imaging programs had increased the number of outreach activities. He felt given the divisions strategic plan, public outreach was a positive initiative. Ms. Kerschner remarked the department needed to take a new approach to its performance indicators. The department had made those projections based on estimates in previous years and prior to the various divisions yearly reports. She indicated a higher increase in educational presentations would actually be projected given the efforts of Mr. Rocha’s staff. Mr. Rocha added the division had also increased its effort to inculcate schoolchildren with the value of record keeping.

Mr. Rocha next covered the M-200 request for an additional position related to computerized record keeping. Mr. Rocha felt the division had not been comprehensively addressing the new challenges brought by changing technologies. He then read a statement from former Governor of Kansas and Assembly Speaker, who was currently the National Archivist, John Carlin.

Mr. Rocha felt the current situation was driven by changes in technology, yet from a public policy perspective it had not been addressed. He referred to dictabelts and other pieces of old equipment that were needed to convert old copies of information into a digital form. The Library Services and Construction Act and an executive order from the Governor had initiated the division to investigate electronic record keeping almost 10 years ago but because of economic downturn the issue was deferred.

Mr. Rocha said the division proposed the new position would facilitate identification, description, protection, preservation, migration and improved access to electronic records scheduled as permanent. The State Historical Records Advisory Board would encourage the State Library and Archives to implement strategies to migrate electronic records to new technologies so that records scheduled for permanent retention remain accessible.

Mr. Hettrick then asked if electronic data would be placed on CD-ROM. Mr. Rocha said that CDs were being used currently although they were not a permanent medium for retrieval. The problem was the fact that some records were held on older types of technology that needed to be read by special equipment and conversion methods had yet to be developed.

Chairman Arberry next cited E-721, which indicated the Governor wanted to move the Employee’s Insurance Company of Nevada (EICN) from a public agency to a private insurance company and wondered what the impact would be upon the agency. Mr. Rocha deferred response to Ms. Kerschner.

After discussion with Doug Dirks, Chief Executive Officer of EICN, and the Governor’s office, Ms. Kerschner responded the impact of the transfer would be significant. She thought the budget office would work with the department so that the system would not be overburdened. She also noted EICN was one of the agency’s largest customers and a regulation had required all its records to be transferred to the agency, however that regulation may be amended if needed.

Ms. Kerschner said the General Fund did not support some budget requests within the account. She stated the four positions requested would be funded, as demand required.

Ms. Kerschner did not feel there were any pressing issues within the account.

Ms. Kerschner briefly noted CLAN had added the rural counties—Lincoln, Nye, and Esmeralda counties into one system. Washoe and Clark counties had their own systems, which would be connected to those rural counties as well.

First, Danny Lee, member of the Nevada Library Advisory Council, thanked committee members for funds in past one-shot appropriations. A handout, (Exhibit I), had been prepared for the committee’s review. However, because of budgetary constraints, that funding had been eliminated in The Executive Budget. Mr. Lee asked if additional monies came available in May, committee members would replace those funding requests in the budget.

He noticed that funding formulae in the department’s budget were skewed to help small library districts because they seemed to need more assistance. For instance, Clark County received 10% of the funds whereas Lincoln County received 129% of their budget requests. Referring to the first page of his handout, which illustrated how Nevada’s libraries were impacted by the
$8 to $9 million in expenditures, he said local districts matched funds.

Next, Nancy Cummings, Director of the Washoe County Library, referred to a handout (Exhibit J) and stated those reverted funds had afforded the Washoe County Library to more effectively address their commitments to Northern Nevada, including developing literacy programs, a commitment to low-income-at-risk youth in the community, and a commitment to better serve the growing Hispanic population in Northern Nevada. Because of those state funds, significant inroads toward those commitments had been made in a much shorter time than had been originally anticipated. She felt those funds were a positive responsible use of state revenue.

Next, Lucy Bouldin, Director of the Storey County Public Library, said the funds, which had been cut from The Executive Budget, had initiated an Hispanic collection, increased the video collection, and increased the number of CD-ROM’s for children and geography in their electronic library collection. She requested that those funds be restored.

The meeting adjourned at 11:30 a.m..

RESPECTFULLY SUBMITTED:

Janine Marie Toth,

Committee Secretary

APPROVED BY:

Assemblyman Morse Arberry, Jr., Chairman

DATE: