The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:00 a.m., on Wednesday, February 10, 1999, in Room 2134 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

COMMITTEE MEMBERS PRESENT:

Senator William J. Raggio, Chairman

Senator Raymond D. Rawson, Vice Chairman

Senator Lawrence E. Jacobsen

Senator William R. O’Donnell

Senator Joseph M. Neal, Jr.

Senator Bob Coffin

Senator Bernice Mathews

STAFF MEMBERS PRESENT:

Jim Rodriguez, Program Analyst

Johnnie Willis, Committee Secretary

OTHERS PRESENT:

Tom Stephens, Director, Nevada Department of Transportation

John P. (Perry) Comeaux, Director, Department of Administration

Senator Raggio opened the meeting with the introduction of several bill draft requests (BDRs).

Senator Raggio announced that BDR 1-232 would be introduced and, if appropriate, referred to the Senate Committee on Judiciary.

Senator Raggio noted that BDR S-1461 would be introduced as a committee bill and referred to the Senate Committee on Finance.

Senator Raggio said BDR S-1444 would be introduced as a committee bill and referred to the Senate Committee on Finance.

Senator Raggio called on Tom Stephens, Director, Nevada Department of Transportation (NDOT), to present NDOT’s budget.

NEVADA DEPARTMENT OF TRANSPORTATION

Transportation Administration – Budget Page NDOT-1 (Volume 3)

Budget Account 201-4660

Mr. Stephens opened his testimony by introducing Gerry Colguhoun, Chief of Financial Management, Nevada Department of Transportation, and Jerry Ross, Senior Budget Analyst, Nevada Department of Transportation. He said NDOT spends about $400 million a year. Mr. Stephens explained that in the first part of calendar year1999 NDOT expects to have dramatic results in the projects it has been working on. He said that by the Fourth of July NDOT should be opening the Pyramid Interchange in Sparks. He mentioned that NDOT should be holding a ceremony in late June. He said the Spring Mountain Interchange should be open in early April, and the Spaghetti Bowl in Las Vegas will have a couple of ramps open within 90 days.

Senator Raggio inquired whether there was work to be finished after the Spring Mountain Interchange opening in April. Mr. Stephens confirmed there might be some touch-up work. He stated the contractors would receive a $300,000 bonus if the project is finished by March.

Mr. Stephens called the committee’s attention to one of NDOT’s handouts, a new version of the booklet titled State of Nevada Transportation Facts and Figures, January 1999, (Exhibit C Original is on file in the Research Library.). He pointed out the picture on the front of the fact book and explained it is a picture of the construction of the U.S. 95 North Spaghetti Bowl in Las Vegas. He explained this is a very unusual type of construction. The big steel crane, which is called a gantry crane, is being used to erect the bridge. Mr. Stephens said the picture shows the concrete sections that are being constructed "like a set of Legos." He stated the sections are made at another location and transported to the construction site, and then the gantry crane lifts them into place. This allows construction to continue with minimal interruption of traffic flow.

Mr. Stephens mentioned that NDOT has been approached concerning the picture on the front of the fact book. He said Engineer News Record magazine, which is an engineer and construction publication, would like to put the picture on the front of its magazine. He remarked that NDOT was expecting to see this cover in the next few months.

Mr. Stephens referred to the Transportation Equity Act for the 21^st Century (TEA-21) map (Exhibit D) and stated that Nevada had received reauthorization for these funds. He noted that as shown on the map Nevada did well in TEA-21 and had received 60 percent to 70 percent more funding than before, which amounts to an extra $70 million a year.

In response to Senator Raggio’s query Mr. Stephens responded the Intermodal Surface Transportation Efficiency Act (ISTEA) and TEA-21 are both federal highway funding acts and are "surface transportation-type" acts. He said these acts provide the federal appropriation for a 6-year funding period. Mr. Stephens emphasized that with TEA-21 several of the funds can be carried over from year to year, but with ISTEA, this carryover is very limited. He said Nevada is getting a larger share of the funding with the TEA-21 program than with the ISTEA program. Mr. Stephens explained the department of transportation worked closely with the congressional delegation to help Nevada receive as much funding as possible. He stressed the additional $70 million could not be used all in one year. Mr. Stephens explained that a project goes through the environmental process, the design process, then to construction. He said each phase of a project is time-consuming and the project may take several years to complete.

Mr. Stephens stated the department’s customer service program has been a great success. He noted the most successful part of customer service is the Freeway Service Patrol (Exhibit E). He explained these patrols stop to help motorists in trouble along the freeway and this helps to facilitate traffic flow. Mr. Stephens said this service has been beneficial to the Nevada Highway Patrol since it no longer has to stop and help stranded motorists.

Senator Raggio asked how many vans are used and what kind of markings the vehicles have. Mr. Stephens replied District I of NDOT has five vans that are clearly marked as shown on the front of the NDOT News, Quarterly News of the Nevada Department of Transportation (Exhibit F Original is on file in the Research Library.). He said a Massachusetts-based company, Samaritania Inc., performs this service. Mr. Stephens explained it was "a good service from the beginning." He said there is about $800,000 in NDOT’s budget to continue providing this service. He stated the Freeway Service Patrol is assisting about 2,500 citizens a month. Mr. Stephens said that of these 2,500 assists, 81 involve accident scenes, 35 are pedestrians that are asked to remove themselves from the freeways, and the remainder are stranded motorists. He asserted Nevada has one of the highest rates of pedestrians killed on the highways among all of the states in the nation.

Mr. Stephens explained the new web site is www.nevadadot.com and contains updated road conditions. He said NDOT has also started a Highway Advisory Radio in Lake Tahoe, which is found at the 530 AM radio station or the 1610 FM radio station. He said this service had previously only been available in the Reno and Carson City areas. Mr. Stephens noted NDOT’s statewide toll-free number should be up and running by June 1, 1999.

Continuing his discussion on improved customer services, Mr. Stephens said NDOT’s phone system would be changing to a menu-select program, and the menu would have a suggestion or complaint option to help with customer service.

Senator Raggio asked whether the avalanche that had occurred the previous day on Mount Rose Highway had been cleared. Mr. Stephens responded no, the crew would not have it cleared until that afternoon.

Senator Raggio asked whether NDOT personnel are responsible for shooting the cornices of snow above the highways. Mr. Stephens affirmed they are and said anything along the highways is NDOT’s responsibility. He explained the ski areas coordinate with NDOT personnel to protect the public and keep the ski areas open for tourism. He said the Mount Rose crew (C250) had added new equipment over the last few years to help keep the roads open. He noted crew C250 now has a giant front-loader and three new snowblowers. Mr. Stephens explained the giant front-loader has a rotary attachment for the front to remove huge walls of snow. He said NDOT had added more crew members and opened the Incline Village rental areas for crew members to stay on-site overnight to facilitate snow removal.

Senator Raggio acknowledged the crews do a great job of getting into the snowbound areas and keeping the roads clear for the motoring public.

Senator Raggio asked the status of NDOT’s "super" projects. Mr. Stephens responded by calling attention to the salmon-colored bulletin "Nevada Highway Super Project Program" (Exhibit G). He asserted these projects typically take 5 to 10 years to complete. He read the status of each project to the committee.

Senator Raggio, referring to project No. 1 on the bulletin (Exhibit G), asked the amount of funds that were allocated for use on the 29-mile bottleneck from Barstow to Victorville in California. Mr. Stephens responded the amount was $10 million. He agreed with Senator Raggio that these funds would be available for projects in Nevada if they had not been allocated to the California project. Mr. Stephens emphasized this route is very important to the economy in southern Nevada.

Senator Coffin pointed out the allocation increases in TEA-21 seem to be enough to cover the $10 million earmarked for the California project. Mr. Stephens agreed those funds are covered "nicely" by TEA-21. He said this project got $24 million in special allocations. He explained the bulk of the funds came from U.S. Congressman Jerry Lewis, who represents San Bernardino County in California, which is the largest county in the United States. Mr. Stephens noted that Senator Reid and ex-Congressman Ensign each contributed part of the funds they controlled out of TEA-21. He said the senator and the congressman controlled approximately $25 million each to designate, and each ascribed a portion of these funds to the California highway-widening project. Mr. Stephens said the whole project cost approximately $140 million.

Senator Coffin asked what could be done to minimize the interference with traffic flow from the widening project, and whether Mr. Stephens could provide traffic counts for that section of highway. Mr. Stephens replied he would certainly provide the traffic counts. He claimed the counts are not dropping, but highway use had not increased as much as Nevada’s room nights and other tourist counts. He said the return trip from Las Vegas is of major concern to NDOT. He cited the return-trip traffic on New Year’s Day, saying there was congestion for three days this year, and next year tourists only have two days to return home. He said this congestion may well be a major problem. Mr. Stephens noted that all of the Sunday traffic congestion is a problem. Senator Coffin stated that having traffic problems is bad for the economy, especially when Indian casinos are developing everywhere and tourists are wondering whether the hassle is worthwhile. He said anything that could be done on the widening project to help the congestion problem is critical for the goodwill of homeward-bound tourists. He suggested the use of extra auxiliary lanes even on dirt, if necessary. Mr. Stephens said NDOT is taking care of the problem in Las Vegas, but part of the problem is in California.

Senator Raggio asked the status of the right-of-way purchase for the I-580/U.S. 395 freeway extension to the state capital. Mr. Stephens responded NDOT had purchased approximately one-third of the right-of-way. He explained there were other right-of-way issues. He said that for example, Saint James Village has filed a $20 million inverse-condemnation suit against NDOT because NDOT did not buy the land within the period the developers had anticipated.

Senator Raggio asked whether the estimated $225 million would be available in federal funding for the I-580/U.S. 395 freeway extension project. Mr. Stephens replied NDOT would have to issue a bond for a portion of the funds and then in the future pay the bond with federal funding. He maintained that NDOT has the ability to sell approximately $500 million in bonds to support its projects.

Senator Rawson voiced the concerns of constituents in the northwest "leg" of U.S. 95 in the Las Vegas project. He said the original plan was to come around on the south side and he wanted to know whether the park that was built recently was temporary or whether NDOT was planning to take another route. Mr. Stephens replied the park was temporary. He explained the long-range plan was to build a new school on the park site and reestablish the park on the school site. He said that "within a year we could start construction on the school and start construction on the extension of U.S. 95/Rainbow, which has no right-of-way issues." He stated that by the end of the summer of 1999 NDOT expects to have the environmental studies completed. Mr. Stephens said that moving the school back has to take priority or NDOT cannot build the extension to the freeway.

Mr. Stephens continued with the information on the super projects listed in Exhibit G, which included the I-15 widening project, the U.S. 95 project, the I-580/U.S. 395 extension project, the U.S. 93 Boulder City Bypass project, the Carson City Bypass-Phase 2 project, and the U.S. 93 Hoover Dam Bypass project.

Senator Raggio inquired why there was a disparity in the ratio of federal funding to total project cost for the U.S. 95 project. Mr. Stephens responded that part of the project is to improve city streets; consequently, only a little over half of the funds are available from federal funds. He said this is a local responsibility and must be funded from local funds. He explained that 90 percent of the main-line route is federally funded. Senator Raggio asked whether there are numerous surface streets in that area to be repaired. Mr. Stephens replied yes. He said this was part of the conclusion of the study conducted regarding the relief of congestion of northwest Las Vegas and added he would provide the study findings if the committee thought it necessary.

Referring to a presentation display map of the Las Vegas area, Mr. Stephens explained NDOT ‘s construction projects in Las Vegas. He said the Nevada map (Exhibit H) in the committee’s handouts showed last year’s and next year’s preservation projects in the rural areas of Nevada. The point of the map, Mr. Stephens emphasized, was to show that NDOT is not neglecting the preservation of Nevada’s highways. He called attention to the map of Elko County (Exhibit I) and said it shows the extent of preservation work being performed in the rural areas of Elko County from 1993 to 1999.

Mr. Stephens remarked there are two new pieces of legislation that are imperative to Nevada’s receiving federal funding. He insisted Nevada would be penalized to the extent of $1.5 million a year for two years and $3 million a year for three years and every year thereafter if this legislation is not passed. He explained that for Nevada to avoid this penalty it needs to have a Repeat Driving Under the Influence of Alcohol or a Controlled Substance (DUI) Offender’s Bill that meets the requirements of federal legislation. Mr. Stephens explained that Nevada’s prison sentences are much tougher than federal legislation mandates; however, the federal legislation has other penalties that Nevada does not have. One is a "hard" 1-year driver’s license suspension after the second DUI. Nevada allows these offenders to drive their vehicles to work and back after 90 days; the federal bill does not allow this. Mr. Stephens stated that if Nevada wants to avoid being penalized it must change this legislation. Senator Raggio inquired whether this was a new requirement. Mr. Stephens agreed this was a new requirement mandated by TEA-21.

Senator Raggio asked how many states are in compliance with the TEA-21 requirement. He commented the states have been given mandates in the past, and in many cases these mandates were not enforced. Mr. Stephens responded he would provide the state’s compliance information that Senator Raggio wanted. He said it was his impression the federal government intended to enforce all the mandates addressing DUI policy, including the .08 blood toxicity level. Senator Raggio asked whether Nevada would have to lower its rate from .1 blood toxicity level to .08 to comply with the federal mandate. Mr. Stephens replied the blood level was not a mandate but more of an incentive. He said if Nevada lowered its rates then NDOT would receive an extra $500,000 a year in grants, and if all the states comply by 2001 then Nevada would receive approximately $800,000 more a year. He stated NDOT had not requested a bill to lower the blood toxicity level, though it has requested the Repeat DUI Offender’s Bill. He said the Repeat DUI Offender’s Bill does not require added incarceration time; however, the blood toxicity level requirement does.

Mr. Stephens said the second piece of legislation concerns logo direction signs placed on freeway right-of-ways by NDOT. He explained that NDOT plans to make and place a few experimental logo signs for resorts. He said NDOT would like to charge a small amount more than the cost of installing the sign, which is not allowed by law at this time. Mr. Stephens said NDOT would like to use the added funds on the "Strip" in Las Vegas or in the resort areas of Reno to help with the logo signs there and other such items. He stated these resort logo signs would help the motoring public know when to exit from the freeway to reach one of the resorts.

Mr. Stephens commented there also is a "design-build" bill to be introduced and the committee should be hearing more about it soon. He said the design-build concept may save time and money but could be a disaster as far as traffic control is concerned. He stated this particular program has been used in Salt Lake City and Salt Lake City is now having major problems with contractors. This program allows the contractor to close every other interchange along the freeway in order to save time and money on construction. Mr. Stephens stated that in a tourist state like Nevada, NDOT has to be concerned with keeping the traffic flowing. Senator Raggio asked whether in a design-build contract there is any way to keep the contractors from closing the interchanges. Mr. Stephens answered the contractors could be fined, but that would not help in a situation where the traffic has been backed up for over 24 hours. He stated that fining a contractor does not create goodwill with the motoring public. Mr. Stephens stressed that in a design-build situation the contractor cannot be shut down for causing traffic jams. He emphasized that he is not in favor of a design-build contract for an urban improvement or expansion project.

Senator Coffin asked whether it is possible to get more low-powered radio-traffic-conditions reporting stations. Mr. Stephens replied that to do so, NDOT would have to have permanent 24-hour, or at least 8-hour, staff to do the reports. He explained that NDOT has installed six temporary changeable-message signs in the Las Vegas area to help report traffic problems to the motoring public. He said these signs are "dial up" signs and can be programmed immediately on receipt of the report of a traffic problem, and this helps facilitate the flow of traffic around these problem areas. Mr. Stephens explained that NDOT has a consultant contract for a freeway management system to install cameras along the freeway and/or a highway advisory radio, and/or permanent changeable signs. He stressed that in a few years the public will be better informed of traffic problems to help route or reroute trips.

Senator Coffin requested information on the cost of having a permanent radio traffic station and personnel for a 5-day reporting schedule. He suggested that five 12-hour shifts would be sufficient to cover the traffic flow problem. Mr. Stephens replied he would send Senator Coffin the information. He said, however, part of the problem is that NDOT, city transportation departments, and county transportation departments do not have permanent personnel "on station" to report the problems so a road-reporting operator can make reports to the public. He asserted this is one of the reasons the video cameras are needed.

Transportation Administration – Budget Page NDOT-1

Budget Account 101-4660

Mr. Stephens said NDOT is asking for 52 new positions, which is a 3.3 percent increase in NDOT personnel.

Senator Raggio pointed out these positions are "authorized positions" and their being filled would depend upon the flow of NDOT’s revenue. Mr. Stephens replied he understood and stated that if the NDOT administration were to perceive there might be a budget crunch, then it would not authorize the filling of these requested positions.

Mr. Stephens called attention to the sheet that listed what the positions were and where they would be placed in the organizational chart (Exhibit J). He commented that of the new positions half of them are in Carson City, 22 are in Las Vegas, 3 are in Reno, and 1 is in Elko County. He stated that of the functional areas, 21 are in the field doing maintenance work, 6 are dealing with construction, 14 are in engineering, and 8 are in administration.

Senator Mathews asked how much additional space would he need in Carson City. Mr. Stephens responded that NDOT headquarters is remodeling its current space by using modular furniture. He explained the modular furniture uses less space than do the plywood partitions that are in place now, and the plywood partitions violate the fire code. He noted that also in this budget there is an equipment purchase request, which will give the department additional space. Mr. Stephens explained that NDOT has a large area dedicated to photographic equipment and the hazardous chemicals that go with it. He said NDOT is changing to a digital system that requires less space, which will also give the Carson City building more space. Mr. Stephens said NDOT has also remodeled some of the shop areas in the maintenance yard behind the headquarters building. He said NDOT has moved the shops into a parking garage area and made office space out of the old shop areas. He stated that NDOT was not planning to build any new add-ons or a new building to accommodate the additional personnel.

Returning to Exhibit J, Mr. Stephens said the most senior position on the list is the Traffic Administrator II position. He pointed out that the Traffic Division is now part of the Roadway Design Division, but NDOT plans to create a new division that includes the traffic department and the new Intelligent Transportation System (ITS). He said ITS is the system that contains the cameras, the highway advisory radio, ramp meters, and changeable-message signs. Mr. Stephens noted that traffic engineering has change significantly in the last 10 or 15 years and NDOT wants to stretch its resources. He emphasized Nevada needs to operate its highways "smarter" because there are a limited amount of lanes that can be installed to expand a highway.

Mr. Stephens pointed out position No. 50, a Senior Landscape Architect. He explained NDOT is responsible for a great deal of landscaping in Nevada and has had many requests for landscaping, but the department does not have anyone whose job it is to coordinate and plan landscaping.

Mr. Stephens said NDOT is adding a lighting crew in Las Vegas and is taking over "the beltway" in Las Vegas with all the lights on it. He said Clark County is building the beltway but NDOT will be taking care of the maintenance.

Mr. Stephens stated that NDOT has had a lot of problems repairing concrete pavement but does not have a "specialties" crew to attend this work. He said District I wants to add a concrete repair/stormwater crew to handle these specialized problems.

Mr. Stephens testified the equipment shop in Las Vegas wants to add a night crew to handle the repair problems that the equipment shop has not been able to keep up with.

Senator Mathews asked whether NDOT recruits for minorities for middle management or upper management positions. Mr. Stephens replied that most of the positions at NDOT are promoted from within. He said NDOT actively recruits anyone who graduates from the College of Engineering of the University of Nevada, Reno (UNR) or the University of Nevada, Las Vegas (UNLV). He stated NDOT has a cooperative program for engineering students. He expressed the belief NDOT has not turned down a single student seeking a job who was enrolled in civil engineering at UNLV or UNR. He said the engineering student program leads to the Rotational Engineering Program, which can lead to NDOT’s engineering series. Mr. Stephens said the gender issue might be a problem, because 80 percent of NDOT’s employees are male. He stated NDOT does not discriminate against females. He said about 10 percent of Nevada’s registered civil engineers (RCEs) are female, whereas about 20 percent of NDOT’s RCEs are female. He noted NDOT has the highest percentage of Native Americans of any of Nevada’s state agencies. He said roughly 6 percent of NDOT’s employees are Native American, but that may be due to the fact NDOT has a lot of rural employment.

Senator Neal asked Mr. Stephens to explain what the numbers on the organizational chart (Exhibit J) represent. Mr. Stephens replied the red numbers represent the positions listed on the previous page of the exhibit, and the black numbers show how many people a position supervises. Senator Raggio asked whether these numbers represent authorized positions or actual positions. Mr. Stephens replied the positions are authorized. He said NDOT has approximately 75 vacant positions out of 1,600 employees at any given time. Responding to a question from Senator Neal, Mr. Stephens said NDOT has the funds to fill the vacant positions and is actively recruiting.

Mr. Stephens, in response to a comment from Senator Jacobsen, maintained that several of the members of NDOT’s board of directors have substantial experience. He stated that Jim Thornton, NDOT Board of Directors, District II, owned his own construction company and is very knowledgeable. He said Thomas G. Gust, NDOT Board of Directors, District III, has worked in construction. Mr. Stephens stated that very few people in the state are as knowledgeable as Father Caesar Caviglia, NDOT Board of Directors, District I. Mr. Stephens explained that Father Caviglia was a member of the diocese in Las Vegas and is the person on the board who understands the purchase of land and the construction of buildings.

Senator Jacobsen asked whether the Washington, D.C. consultant and the Washington Office work together. Mr. Stephens responded yes, and noted these entities work together on a daily basis. He said the Washington consultant is an expert in engineering, has good contacts with the Federal Highway Administration (FHA), and provides staff support to Nevada’s congressional offices. He explained the Washington Office coordinates what happens and informs the agencies with needed information. He maintained Nevada most likely would not have gotten the extra $70 million a year without this support.

Senator Raggio inquired why the actual expenditures for 1998 were $2 million, but the budget request for 1999 was substantially lower. Mr. Stephens indicated the difference was attributable to the replacement of the photographic airplane in 1998.

Senator Raggio asked for an explanation of the transfer of $400,000 from NDOT to the Agency for Nuclear Projects. He voiced the need for clarification regarding how the use of these funds relates to Nevada’s transportation department and whether this was just a portion of the funds needed for the project. Mr. Stephens explained the $400,000 was for the Agency for Nuclear Projects to continue the study of the transportation of nuclear waste through Nevada and within Nevada. He said NDOT’s planning division studies the transportation of goods but has not performed any studies on nuclear waste because this was being done by the Agency for Nuclear Projects. Mr. Stephens said the Agency for Nuclear Projects had been using funds from a federal grant for these studies but was now unfunded, and this transfer would help the agency continue the nuclear studies.

Senator Rawson commented he is not impressed with the science that comes out of the Agency for Nuclear Projects and would like to have some respected scientist involved. He stated Nevada is more vulnerable now than ever before. He asked whether NDOT is simply going to grant the funds to that agency, and if so whether Nevada would have any control of how these funds are used. He wondered whether it might be more appropriate to allocate the funds to UNLV or UNR. The committee discussed the appropriate controlling authority and concluded this issue should be directed to the budget office at another time.

Senator Raggio mentioned there was an allocation to the Transportation Services Authority of $480,000 from the Highway Fund and asked whether it was shown in this budget. John P. (Perry) Comeaux, Director, Department of Administration, answered that the abovementioned appropriation did not show up in this budget but would be an appropriation measure.

Senator Raggio asked Mr. Stephens to comment on what the impact would be to NDOT projects if the transfer of $1.6 million to other agencies were approved. Mr. Stephens responded this type of funding has been the norm for many years. He said NDOT does not control the Highway Fund. He explained that NDOT takes funds from the Highway Fund to support its needs just as the Transportation Services Authority and the Department of Motor Vehicle and Public Safety do. Senator Raggio reiterated he would like to know what impact this has on the available federal funds NDOT would have for projects. Mr. Stephens responded the $1.6 million could be used on highway projects. Senator Raggio asked whether this reallocation of funds "leverages" additional federal funding. Mr. Stephens responded no, the federal funding is fixed. He stated that Nevada overmatches federal funding and would match every dollar of federal funding it could get.

Mr. Stephens said in response to a query from Senator Raggio that it would be very difficult to evaluate what impact $1.6 million would have on a $200-million-plus-a-year program in projects.

Senator Jacobsen asked whether there are any problems with the use of inmate crews on highway projects. Mr. Stephens responded that NDOT would like to have more of them. He said the inmates are doing a great job and it is very cost-effective for NDOT to use them.

Senator Jacobsen asked whether the noxious weeds along the highway are a major problem for NDOT. Mr. Stephens stressed that yes, NDOT does see it as a major problem and that NDOT has a weed contract statewide. This contract is to spray the weeds and NDOT is working with "the agricultural people" to plan how to control the problem. Mr. Stephens said that if the agricultural people need more funds then NDOT is willing to help them.

Mr. Stephens explained this item is not for design consultants; those are included in land and building improvements. He said these consultants are for planning, data processing, audit, legal, and human resources. He noted that the amount is $4 million in 1997 and then increases to $5.7 million in 1999. He said over half of these funds (approximately $3 million) are passed through to local agencies like the Regional Transportation Commission (RTC). He said NDOT’s volume of planning studies will increase as a result of the additional funds authorized under TEA-21. He said NDOT is also doing the Intelligent Transportation Systems (ITS) studies. He emphasized most of these funds are federal funds and have been designated for obtaining needed consultant services.

Senator Raggio asked for clarification on this module, which would provide the funding for the environmental commitment to the Lake Tahoe initiative in the amounts of $1.4 million in Fiscal Year (FY) 2000 and $4.3 million in FY 2001. Mr. Stephens replied those are projects at Lake Tahoe and most of the items are in land and building improvements. He said NDOT has done a major project between Sand Harbor and Incline Village. This project included putting rocks on the slopes and adding new drainage for catching the water from the road before it runs into the lake and putting it through oil separators before letting it enter the lake. Mr. Stephens said this is an example of the work NDOT is performing.

Mr. Stephens noted that because of the nature of the Nevada interstate commitment to Lake Tahoe, NDOT has been asked to document the work at Lake Tahoe separately from other repair and improvement projects.

Mr. Stephens said a couple of hydraulic engineers will also be dedicated to this process. He said this module includes the hydraulic engineers’ expenses and some design contracts. He stated NDOT is asking for two new positions for Lake Tahoe and equipment for their use.

Senator Raggio inquired what is anticipated in the year 2001 for land and building improvement in the amount of $3.6 million. Mr. Stephens responded he would have to supply this information later. Senator Raggio said he wanted a complete breakdown for what is planned for Lake Tahoe for both of the years, 2000 and 2001. Mr. Stephens agreed to supply this information. He said NDOT must continue the erosion control and construction of the drainage collection around the lake.

Senator Jacobsen asked whether NDOT is doing anything about the dead and dying trees on the highway right-of-ways around Lake Tahoe. Mr. Stephens replied he did not believe NDOT was doing anything significant in that area. He told the senator he would provide a more detailed answer after he spoke with the district engineer, Richard J. Nelson. Senator Jacobsen said it is apparent some of the trees along Highway 28 are definitely a hazard. Mr. Stephens said some of those trees are off of NDOT’s right of way and there are tight restrictions in the Tahoe Basin on what can be done. Senator Jacobsen asked whether anything has come from the "federal summit" on the Tahoe Basin, and wanted to know whether the participants at the summit were concerned about the dead trees. Mr. Stephens responded he believed there was a concern and that is why there have been controlled burns and helicopters removing trees. He noted there was opposition to even this amount of control.

Mr. Stephens said NDOT is participating in the Integrated Financial System (IFS) program which he said is part of the solution to the Y2K problem. He remarked that at least 50 people from NDOT are devoting a great amount of time to this changeover. He said NDOT is working with the Department of Administration and all of those expenses are in the budget account of the Department of Administration. Mr. Stephens explained new computers are being bought to replace those stations that are not compatible with the new system. He said these new stations are being networked in this budget. He mentioned that in the Assembly Committee on Ways and Means meeting he was asked to explain why NDOT had Y2K expenses into the years 2000 and 2001. He explained NDOT is networking these stations, but first the stations must be updated to a Y2K system that is compatible with the IFS requirements.

Mr. Stephens noted the committee will most likely see "sound wall" bills coming through. Senator Raggio asked him to give his analysis of the necessity for this legislation. Mr. Stephens responded that whether or not to retrofit all highways in the state with sound walls is a policy decision for the legislators to make. He said that certainly sound walls would be put in at many of these locations if they were being built today, but to retrofit them now would cost hundreds of millions of dollars. Senator Raggio inquired whether in some cases the residents have built the sound walls after the freeways have been constructed. Mr. Stephens replied yes. He elaborated that this is especially true in southern Nevada, but that in some instances, such as in Senator Mathews’ area around the Spaghetti Bowl in Reno, many of those homes were already there. He noted it is against federal policy to spend federal funds on retrofitting. Mr. Stephens said that anytime NDOT increases the capacity on a freeway then sound wall construction is eligible for federal funds and NDOT would add the walls as part of the project. He said it has not been NDOT’s policy to retrofit these areas with sound walls. Senator Raggio asked whether any federal funding is available for this kind of improvement. Mr. Stephens answered no and explained that in fact the use of federal funds for retrofitting is specifically precluded.

Senator Rawson explained that the policy the Legislature wishes to develop is that "there are situations that need to be handled" and that it is not the Legislature’s intention to have sound walls built on every existing freeway. He said that as each situation is analyzed certain items must be considered, such as: Were the homes here before? Has traffic increased significantly since the homes were built? Is there a school or are there other special circumstances that warrant the need for a sound wall? Senator Rawson said the committee most likely would not approve every sound wall project that is requested.

Mr. Stephens noted NDOT has had a change in its sound wall policy. He said the change is that NDOT will contribute $2 million a year to sound wall projects. He said NDOT will build almost any sound wall project if local communities will put up half the funds for it.

Senator Neal requested that Mr. Stephens send him a memorandum regarding the justification for the Las Vegas lab positions and the buyer for the Equipment Division. Mr. Stephens said NDOT has a one-page narrative on each of the positions, which he will make available to the committee.

JUDICIAL BRANCH

Judicial Discipline – Budget Page COURTS-48 (Volume 1)

Budget Account 101-1497

Senator Raggio directed the Senate Committee on Finance to the next budget and called Leonard I. Gang, General Counsel and Executive Director Commission on Judicial Discipline, to present this budget.

Mr. Gang opened his testimony with an explanation that the Commission on Judicial Discipline’s purpose is to consider complaints regarding accusations of ethical misconduct of judges, and to protect the independence and integrity of the judiciary. He said the commission is composed of seven persons: two attorneys appointed by the board of governors of the State Bar of Nevada, two judges appointed by the Nevada Supreme Court, and three laypersons appointed by the Governor of Nevada. He explained that by constitutional directive the chairman of the commission must be a layperson. He said the commissioner’s terms are four years each.

Senator Raggio asked who serves on the discipline commission presently. Mr. Gang responded that Frank Bursa from Clark County is the chairman; Valerie Cooke from Washoe County is one of the attorneys; Diana M. Glomb from Washoe is one of the laypersons from that county; and Judge Sally L. Loehrer is a district court judge from Clark County. He said the three new appointees are Judge Brent Adams from Washoe County, Don Campbell from Clark County, and Steve Chappell from Minden.

Mr. Gang then presented the proposed budget for the Commission on Judicial Discipline. He said The Executive Budget projects a small increase in the commission’s budget of approximately 6 percent. He noted 5 percent of the 6 percent falls within the personnel category. Mr. Gang said the commission expended more than was budgeted for investigators during the base year, resulting in an increase of $5,000 in the category for investigators. He said the commission underexpended the funds for the attorneys who handle the cases presented to the commission and the attorneys who handle appeals. He said that consequently "there is a slight increase in that category also."

Mr. Gang, stated the commission was pleased that in the base year it was able to revert $1,240 to the General Fund, which is 0.38 percent of its budget.

Mr. Gang, referring to the Nevada Commission on Judicial Discipline Statistics report (Exhibit K), said the number of complaints received varies from year to year. He said it seems the number of complaints received in the even-numbered years exceeds the number of complaints received in the odd-numbered years.

Mr. Gang said the commission proposes to incorporate the Standing Committee on Judicial Ethics and Elections Practices’ budget into the Commission on Judicial Discipline budget. He said incorporating the standing committee’s budget would facilitate the operation of the commission. Mr. Gang said this would provide for the interchange and cross-training of personnel from the commission to the standing committee to cover positions for personnel on vacation or to deal with uncovered office hours of a part-time position.

Senator Raggio asked whether the proposal regarding budget account 101-1489 would be merged into budget account 101-1497. Mr. Gang responded yes. He said the Standing Committee on Judicial Ethics and Election Practices was created by the Nevada Supreme Court and was to be transferred to the Commission on Judicial Discipline. However, the budget category remains with the Supreme Court, although Mr. Gang remains the executive director of the committee and has been administering the committee’s budget.

Senator Raggio asked whether the commission and the committee operate separately. Mr. Gang replied yes. He confirmed this is the committee that has 12 attorneys who are appointed by the state bar, 12 laypersons who are appointed by the Governor, and 4 judges. He said although it is called a commission in The Executive Budget it is actually a standing committee created by the Supreme Court. He explained this committee actually serves two purposes. One is to provide written ethical opinions to judges upon request, and the other is to address election issues. Mr. Gang said the committee has 28 members serving so that when a "panel" is needed the committee has enough members available to serve on the panel.

Senator Rawson asked who may file a complaint. Mr. Gang responded that not just anyone may file a complaint. He said a candidate may only file complaints concerning election practices. However, anyone may file a complaint regarding judiciary ethics beyond election time. Senator Rawson asked what percentage of the complaints received actually resulted in an actual reprimand or judicial discipline against a judge. Mr. Gang responded it is a very small number, and the majority of the complaints are dismissed after the initial review. Senator Rawson inquired whether through legislation or rules the "nature of the complaints could be tightened up." He said the commission seems to be going through a tremendous effort without much effect. Mr. Gang reiterated that 88 percent to 90 percent of the complaints are dismissed after the initial review. He said he is not aware of a way to eliminate any of the complaints received. He noted that people need an outlet to voice their dissatisfaction and displeasure and said the commission serves this purpose.

Inquiring further, Senator Rawson asked how many of the decisions of the commission have been overturned by the judge’s appeal to the Supreme Court. Mr. Gang responded the commission has had one case in the past year that was appealed and reversed. The commission removed the judge in question. Mr. Gang said there was still one appeal pending, and the commission has removed the family court judge in question. Mr. Gang said in response to a comment from Senator Rawson that he expects judges to appeal. He said judges have the same rights as everyone else and sometimes the commission’s decisions may be reversed.

Senator Raggio asked at what point the complaints become public information. Mr. Gang responded that if the commission finds probable cause it retains an attorney, who files a formal complaint; and from that time on the information becomes public knowledge. Senator Raggio asked whether there is anything that prevents someone who files a complaint from going public with the information. Mr. Gang replied that under the commission’s rules the person who files a complaint is free to discuss his or her dissatisfaction with the case, but once a complaint is filed the complainant is not to talk about the complaint itself. He said once the commission has found there is no probable cause, then the complainant is free to discuss the filing of the complaint. Senator Raggio commented the worry that most officials have is that this information becomes public when the complaint is actually unwarranted. He said the public is not made aware the complaint is not valid, however, which leaves a "taint" on the person’s reputation. Mr. Gang replied that for the most part this does not happen, and in recent events the media in Las Vegas made it known to the public the claim was not valid. This concluded his testimony.

Staff then handed out the most recent budget updates (Exhibit L) to the members of the Committee on Finance. Then Senator Raggio asked Mr. Comeaux whether he wished to point out any information on the updated budget sheets. Mr. Comeaux said most of the additions to the list are small and the changed items were items that either had been left out of the budget or had been duplicated. He said a couple of major items affect the General Fund and he wished to explain them.

Mr. Comeaux started with item No. 36. He explained No. 36 affects various budget accounts. He said that when the budget office originally calculated the necessary rate for personnel assessment, the university positions were left out of the calculations, which produced an inflated rate. Mr. Comeaux said that when the rate was applied to all of the positions including the university’s positions, it produced more revenue than was necessary to support the Department of Personnel. He noted the recommendation in No. 36 is a reduction of the Department of Personnel budget by $523,602 in the first year of the biennium, $626,140 in the second year, and in "other" funds, $329,170 in the first year and $394,652 in the second year. Senator Raggio asked Mr. Comeaux what the "other" funds were that would be affected and how this affects the university. Mr. Comeaux responded the Highway Fund and other federal funds are the other funds affected and the university would be affected by the reduction in the General Fund.

Mr. Comeaux said the other item he wished to point out was No. 44. He said the funding for the State Department of Conservation and Natural Resources litigation for "water rights-type issues" usually is provided in a separate piece of legislation. However, the Governor would like that $200,000 added to the budget for the director of Conservation and Natural Resources. Mr. Comeaux said the bill to fund the litigation for Conservation and Natural Resources has been pulled.

Senator Coffin mentioned to Mr. Comeaux he has been told that a couple of items that were originally removed from the budget are to be restored, and he wanted to know what procedure the budget office is using for "these types of informal restorations." Mr. Comeaux responded the Senate Committee on Finance will receive notice of such changes via the budget updates like the ones they were discussing now. He said their budget updates are just a summary of the items and the Budget Division will send a memorandum to all of the members explaining fully all the changes the budget office or the Governor has proposed.

Mr. Comeaux said he did not have anything else he needed to impart to the Senate Committee on Finance.

Senator Raggio adjourned the meeting at 10:15 am.

RESPECTFULLY SUBMITTED:

Johnnie Willis,

Committee Secretary

APPROVED BY:

Senator William J. Raggio, Chairman

DATE: