The Joint Subcommittee on Public Safety/Natural Resources/Transportation of the Senate Committee on Finance and Assembly Committee on Ways and Means was called to order by Chairman Lawrence E. Jacobsen, at 8:05 a.m., on Thursday, February 18, 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.

SENATE COMMITTEE MEMBERS PRESENT:

Senator Lawrence E. Jacobsen, Chairman

Senator William R. O’Donnell

Senator Joseph M. Neal, Jr.

Ms. Chris Giunchigliani, Chairman

Mrs. Vonne S. Chowning

Mr. Richard D. Perkins

Mr. Bob Price

Mr. John W. Marvel (Excused)

STAFF MEMBERS PRESENT:

Gary Ghiggeri, Principal Deputy Fiscal Analyst

Jean Laird, Committee Secretary

OTHERS PRESENT:

DEPARTMENT OF CONSERVATION AND NATURAL RESOURCES - OVERVIEW

Senator Jacobsen asked Peter G. Morros, Director, State Department of Conservation and Natural Resources, to provide an overview of his department’s presentation. Mr. Morros reminded the committee that at the last legislative hearing for the department he presented the duties and responsibilities of the department and discussed the various divisions and boards within the department. At that hearing the committee requested additional information on boards and commissions within the agency and the organizational charts for the various divisions. Mr. Morros said all this has been provided, with the exception of the organizational chart for the Division of Wildlife; that will be distributed at this hearing. He added the Division of Forestry and the Division of Wildlife were on hand to provide testimony.

Mr. Morros reminded the committee the Aircraft Mechanic position and the positions associated with the Tahoe program and Environmental Improvement Program (EIP) in the Lake Tahoe Basin have already been discussed. He added that Pamela B. Wilcox, Administrator and State Land Registrar, Division of State Lands, State Department of Conservation and Natural Resources, is scheduled to testify after the Divisions of Forestry and Wildlife and will address the EIP program and the new positions request.

Senator Jacobsen asked whether there is poor attendance on any of the boards or commissions. Mr. Morros said that although he does not attend every board and commission meeting, he does ask the agency affiliated with a board or commission to provide reports, usually semi-annually. He said the report covers member attendance and the activities of the board. Overall, particularly with the regulatory commissions, there is very good attendance. He said the attendance for the State Environmental Commission, the Board of Wildlife Commission, and the State Conservation Commission has been historically very good. He explained that if there is a "weak member" who is not attending meetings, and who is not contributing, the department provides that information to the Governor’s Office when the term appointment expires. He said members of the Advisory Board on Natural Resources serve at the pleasure of the Governor. That is an umbrella advisory board over the department. If there is a member who is not participating, Mr. Morros informs the Governor’s Office and provides recommendations if requested.

Senator Jacobsen said the boards and commissions generally do the kind of job that is expected, but occasionally some are not very productive because of attendance problems.

Senator Jacobsen asked Roy W. Trenoweth, State Forester Firewarden, Division of Forestry, State Department of Conservation and Natural Resources, to provide an overview of his division and describe where he thinks the division is and hopes to be. Mr. Trenoweth replied the Division of Forestry is doing well in all programs. He said the division has five budget accounts and indicated he would begin by discussing performance indicators. He indicated the division has been working diligently with Mike Reed, Ph.D., Dean, College of Business Administration, University of Nevada, Reno, on performance indicators. Two division staff are working with Dr. Reed to create performance indicators that are more performance-oriented, rather than output measures. He said Dr. Reed has indicated approval of many of the indicators existing now, such as the number of fires and number of incidents. Dr. Reed informed the division that many of the existing indicators should continue because those existing indicators represent what the division does and how many times it is done. Mr. Trenoweth said he hoped in the near future to be presenting to the budget office and the Legislative Counsel Bureau (LCB) a new set of performance indicators. Some of the indicators in the budgets today will still exist, but may be enhanced.

Senator Jacobsen asked Mr. Trenoweth to provide an overview of how the air operations are at the Minden airport and what is located there, including how many airplanes. Mr. Morros said Freeman K. Johnson, Assistant Director, State Department of Conservation and Natural Resources, manages the consolidated air operations. He explained that Mr. Johnson could better provide an overview of the status of the consolidated air operations. He said the department reduced the number of pilots from five to four during the 1995 session and that has worked quite well. He confirmed that the department has been able to get the job done with the four pilots.

Mr. Johnson said air operations have been consolidated and the co-location is complete. Cross-training and the availability of Division of Wildlife pilots for Division of Forestry missions and Forestry pilots for Wildlife missions are well on the way. He said there are currently three rotary-wing aircraft (helicopters) and three fixed-wing aircraft. He informed the committee the department is in the process of acquiring three additional helicopters from the federal government’s military surplus program.

Mr. Johnson stated the time has come for the department to assume the responsibility for light and medium maintenance needs for operational efficiency and safety. Estimates are that the department can save as much as $35,000 a year by bringing those services in-house. He said those savings result from a reduced hourly rate. The rate for aircraft services and maintenance charged by companies in that business ranges from $50 to $68 an hour. The rate for an aircraft mechanic in the state’s classified system would be $20 to $21 an hour. Mr. Johnson pointed out there is a significant savings potential. Other savings would involve not having to ferry aircraft to Stockton or San Jose, California. Savings would include the per diem and salary of the pilot, who would be idle while the mechanic is changing an engine part. Mr. Johnson said the division can do that in-house. He pointed out another advantage is that the aircraft downtime is minimized.

Senator Jacobsen asked whether bringing these services in-house would eliminate the maintenance contracts for the regular maintenance checks. Mr. Johnson said the 100-, 200-, and 300-hour checks would be eliminated. He explained this would not eliminate all maintenance costs, because some maintenance must be performed by highly specialized and specially equipped organizations. Major equipment and major services will still be performed by an airframe powerplant organization certified by the Federal Aviation Administration (FAA).

Senator Jacobsen said one of the questions he continually receives is whether the helitak crews are doing maintenance. Mr. Johnson responded that helitak crews and "non-airframe powerplant qualified people" do not work on the aircraft, except to clean the windshield, wash off bugs that accumulate on the helicopter rotors or leading edges of the wings, or sweep out the aircraft. He stated the crews do not perform technical maintenance because the department will not jeopardize the safety of the operation by having unqualified, noncertified people performing the maintenance functions.

Assemblywoman Chris Giunchigliani asked whether there is a way to segregate within the budget the 100-, 200-, and 300-hour maintenance and other things the agency maintenance person would do versus the contracted maintenance and repair. Mr. Johnson said the department could segregate by type of service performed. Ms. Giunchigliani said that would be a meaningful performance indicator. She said it is understood the department would not eliminate all maintenance costs, but a good performance measure would be what the department has saved versus continuing outside contract costs. Mr. Johnson said he would provide information by type of service performed.

Senator Neal referenced Exhibit C, "Department of Conservation & Natural Resources Organizational Charts." He said that on the first page Mr. Johnson is represented as assistant director, but on a subsequent page, in the organization chart for the Division of Forestry, Mr. Johnson is represented as deputy director. Mr. Morros responded that Mr. Johnson’s correct title is assistant director; the statute that creates the position identifies it as the assistant director of the Department of Conservation and Natural Resources. He said if there is reference to a deputy director, he will correct that reference on the charts.

Senator Neal also noted the organizational chart for the department shows Mr. Johnson with clear lines of authority to the director in the department’s air operations. He said the organization chart for the Division of Forestry conversely indicates an "advisory capacity." Mr. Johnson indicated he has other responsibilities. He serves as the department’s personnel officer and he acts on behalf of the director (as delegated by the director) to attend to management issues, in concert with the state forester. He added it is a "dotted-line relationship," not a "solid-line relationship."

Senator Neal asked what happens when the state forester needs an airplane. Mr. Johnson answered that the state forester calls Mr. Johnson or he calls the chief pilot directly, depending on whether the airplane is needed in response to a fire. If it is needed in response to a fire, the state forester has clear authority to directly contact the Minden dispatch center and the plane can be dispatched without having to go through Mr. Johnson. He said calls must be directed to Mr. Johnson when air support services are requested by another agency, such as the Department of Information Technology (DoIT) or the Department of Motor Vehicles and Public Safety for air transportation to microwave and repeater sites for repairs. Senator Neal asked whether the aircraft are used primarily for fighting forest fires. Mr. Johnson said the aircraft are used primarily for fighting forest fires or for the Division of Wildlife game survey and captures operations, and for occasional administrative flights.

Mr. Morros further explained the assistant director has administrative oversight over air operations, which is a part of the director’s office. He clarified the chief pilot, Pat Ross, is responsible for physical air operations, scheduling, and maintenance. The chief pilot reports to the assistant director. The assistant director is also the department’s personnel officer and has responsibility for budgetary oversight.

Senator Jacobsen asked for an update on the helicopter lost at Watson Lake, including whether there was any liability attached. Mr. Johnson said there was no liability for the department. He said that, in fact, the department hopes to recover funds from the U.S. Forest Service because the forestry division was acting in response to a fire within the jurisdiction of the U.S. Forest Service at the time of the incident.

Senator Jacobsen asked whether a letter from this committee to Nevada’s congressional delegation would help. Mr. Johnson said it quite possibly could. He added the director has written a letter to U.S. Senator Richard H. Bryan. The director has also spoken to the Governor, who has indicated he intends to speak with U.S. Senator Harry Reid and U.S. Representative Jim Gibbons on the topic of acquiring federal military surplus property for the department’s helicopter needs. He added any help along those lines would be appreciated. Senator Jacobsen suggested the department draft a letter for the committee to consider sending to the congressional delegation. Mr. Johnson said he would do that.

Mr. Morros indicated that at the department’s last hearing there was a question about the cost of modifying the surplus helicopters to meet the department’s needs. He informed the committee the department strips out a lot of the armor plating and tears out the military wiring that does not meet the department’s needs. In the past the department has usually been able to accomplish the modifications for less than $10,000 a helicopter. Mr. Morros said the issue at the last hearing was where the money would come from to modify more helicopters if the department does acquire more. He indicated the U.S. Forest Service has agreed to pay the department approximately $65,000 for the helicopter lost at Watson Lake. He said the department intends to use some of that money for modification of helicopters, if it is able to acquire any.

Mr. Morros explained that the accident at Watson Lake on the California side of Lake Tahoe occurred as a result of a fire response call within the U.S. Forest Service jurisdiction. He said the helicopter was "totaled out." Fortunately, he remarked, no one was seriously injured or killed in the accident. He noted the U.S. Forest Service is sometimes difficult to deal with on these issues, because the helicopter was acquired at no cost. However, the department had an investment in that helicopter because of the cost of ferrying it to Minden and the necessary modifications, even though the helicopter was originally acquired at no cost.

Ms. Giunchigliani asked whether the $65,000 is in addition to any insurance recovery. Mr. Morros said he did not believe there would be any insurance recovery. Ms. Giunchigliani asked whether the lack of insurance recovery is due to the fact the helicopter was on a call for and in the jurisdiction of the U.S. Forest Service. Mr. Morros answered there is no hull insurance on helicopters because it is too expensive. Ms. Giunchigliani asked, "What if there had been a death?" Mr. Morros answered that would be covered under workmen’s compensation. Ms. Giunchigliani asked Mr. Morros to confirm that coverage to assure appropriate protections and survivor benefits.

Ms. Giunchigliani also asked whether there is insurance on the equipment in the helicopter. Mr. Trenoweth said the department carries insurance on the equipment, but in this particular case the department billed the U.S. Forest Service for flight time, staff time, and loss of equipment. Mr. Morros indicated he assumed Ms. Giunchigliani’s question was whether, in the absence of the U.S. Forest Service’s willingness to pay the $65,000, the department has insurance that would have covered that loss. He said the answer is yes. Mr. Morros added that if the U.S. Forest Service pays, the department would not have to file a claim with the insurance company, hopefully keeping the rates down. Ms. Giunchigliani asked where it is specified the U.S. Forest Service is responsible. Mr. Morros answered it is covered in the interagency agreements with all the agencies that are "cooperators." Ms. Giunchigliani asked whether it is advisable to renegotiate the interagency agreements. Mr. Trenoweth responded the department is currently in the process of updating the master agreement. Ms. Giunchigliani asked for a copy of the agreement. She also asked whether Nevada has standard language requirements for such agreements "to protect liability." Mr. Morros indicated the department would provide a copy of the agreement and respond to her question.

Senator Jacobsen indicated that Ms. Giunchigliani had made a good point and asked that Legislative Counsel Bureau (LCB) staff check with legal counsel to determine the legal ramifications, especially if one of the inmates were to lose his life.

Senator Neal noted the Division of Forestry has about 12 vacancies across the three regions. He asked whether those positions are included in The Executive Budget. Mr. Trenoweth said he had just reviewed the division’s vacancy list and there are two Conservation Crew Supervisor positions, two Battalion Chief positions, and a Fire Captain position vacant. Senator Neal said the organization chart shows vacancies in the battalion chief positions located in Eureka and Elko Counties. Mr. Trenoweth indicated that is correct. Senator Neal said there is a vacant prevention bureau position. Mr. Trenoweth said the division expected to receive the list of eligible applicants by the next Friday for the position in the prevention bureau and the fire captain position. He added the battalion chief position in Elko has been filled and the division is in the process of filling the two crew supervisor positions. Senator Neal asked about the vacant positions in Gold Creek, Jarbidge, and Carson City. Mr. Trenoweth responded those positions are seasonal and should be vacant at this time, since the department only fills them during the fire season.

Forestry – Budget Page CNR-52 (Volume 3)

Budget Account 101-4195

Mr. Trenoweth indicated the first major item in this budget is the recommended Fire Control Dispatcher for the new Elko dispatch center, which will be located at the northwest corner of the Elko airport. He said the division expects the Elko dispatch center to go to bid in early spring. It will be a joint dispatch center for the county, the city, and the Bureau of Land Management (BLM) law enforcement and fire control dispatch operations. He clarified that law enforcement and fire control will be separated and a dispatcher will be needed for 24-hour fire control operation. Senator Jacobsen asked whether this would close the other dispatch center currently in operation. Mr. Trenoweth said it would.

Ms. Giunchigliani asked for the expected completion date for the dispatch center. Mr. Trenoweth said he would check with the State Public Works Board but indicated he believed it would be sometime in the year 2000. He added it was hard to track since the project had been expanded more than once. Ms. Giunchigliani asked what the budget impact of the expansions would be. Mr. Trenoweth indicated the other tenants are providing the additional funding and added that this was presented to the Interim Finance Committee in the fall of 1998. Ms. Giunchigliani asked Mr. Trenoweth to provide the total cost and the completion date to the committee. He agreed to provide that. Mr. Morros indicated the completion date would probably be in the summer of 2000.

Ms. Giunchigliani asked whether staffing adjustments for the dispatch center are included in the budget. Mr. Trenoweth said the only staffing adjustment required is the new Fire Control Dispatcher position that he just discussed, which is included in the budget to start just before the center opens. Ms. Giunchigliani asked whether the position would start before the second year of the biennium. Mike Nolan, Principal Budget Analyst, Budget Division, Department of Administration, answered the position is budgeted to start in January 2000 based on the start-date information available when the budgets were constructed. He added that if the start date is delayed, it would be appropriate to delay the position start date.

Mr. Trenoweth called attention to Exhibit D, "Nevada Division of Forestry, Budget Summary/Equipment Request." He said the exhibit identifies the major equipment the division wishes to purchase and where it would be located. Senator Jacobsen asked whether there were any questions about the equipment; there were none.

Senator Jacobsen asked whether decision unit E-410, Natural Resource Management and Protection, is related to the summit that transpired late in 1998. Mr. Trenoweth indicated a presentation is planned on the Lake Tahoe Initiative, to be led by Ms. Wilcox. Senator Jacobsen said the committee would wait for that presentation.

Forestry Intergovernmental Agreements – Budget Page CNR-63 (Volume 3)

Budget Account 101-4227

Mr. Trenoweth indicated this budget is primarily for the county fire districts and revenues are primarily from counties. It also includes some revenue from the U.S. Forest Service for seasonal activities that will begin again soon in the Humboldt and Toiyabe National Forests. He said the division does not yet have a final amount and pointed out this budget is constantly being revised. As salaries and county revenues change, the budget changes, and, if necessary, changes are submitted to the Interim Finance Committee (IFC) for approval.

Mr. Trenoweth alerted the committee to the fact that Storey County has requested to form its own district. The Nevada Revised Statutes (NRS) Chapter 474.530 provides the structure for the dissolution of a district, he noted. He said the department is going through that process right now. He added the department has formed new districts in the past, but has never dissolved a district. He noted the first step in dissolving a district is for 25 percent of the property owners in the fire protection district to petition the state forester firewarden. That has been done and the signatures have been checked. He said notification has been sent to the Storey County Commissioners informing the county it had more than the required number of signatures. The last two steps are determining the feasibility of the dissolution and determining the legal and appropriate transfer of equipment ownership. Mr. Trenoweth indicated the division is taking the necessary time to assure it is done right since it has never been done before.

Ms. Giunchigliani asked whether the state has the authority to tell the county, "No, we think, for your safety, you may not move forward." Mr. Trenoweth answered the state has the authority. Ms. Giunchigliani said she appreciates the fact this has not been done before and asked whether there are policies already in place or whether the division is developing the policy as it proceeds through the process. Mr. Trenoweth said the division is writing the policy as it proceeds through the process. Ms. Giunchigliani asked whether other states have policies that could be used for guidance to reduce potential liability for the decision. Mr. Trenoweth said the potential liability is what he is also concerned about. Ms. Giunchigliani asked whether the U.S. Forest Service has provided any assistance. Mr. Trenoweth said the forest service does not do this kind of thing. He added that California does, but its laws are very different. Ms. Giunchigliani suggested that, even so, if Nevada takes advantage of California’s experiences, it might not be necessary to "reinvent all the wheels." Mr. Trenoweth indicated he is currently looking into the dissolution of a fire protection district in San Diego, based on information received by LCB staff.

Ms. Giunchigliani asked whether there is a specific timeline within which the decision must be made. Mr. Trenoweth answered there is none in the law. Ms. Giunchigliani said that at budget closings, the committee will need to know the decision. Mr. Morros said the department is trying to move along as quickly as possible but will not compromise the state in terms of liability. He added one thing that is unique in Storey County is that 93 percent of the land is privately owned. Once the county forms its own district and the division pulls out, the division will still provide the county with assistance in the event of a major fire, such as tankers and helicopters. Ms. Giunchigliani pointed out the division would have to bill the county and that would have a huge impact on a county that does not have much revenue. Mr. Morros replied that is correct and emphasized he has gone on record to say that Storey County will be sent a bill if that happens. He added this is Storey County’s choice and the county is set on going forward. He said Mr. Trenoweth has a responsibility under the law to make a determination on the feasibility. If it is not feasible, Mr. Trenoweth will tell the county "No." He said the attorney general’s office has indicated the state forester has that authority.

Responding further, Mr. Morros said the issue is fire protection for the property owners. Ms. Giunchigliani added there is the additional concern that a fire could spread and jeopardize other areas. Mr. Morros noted that a half-million-dollar fire could have a devastating impact on Storey County’s budget. Senator Jacobsen indicated it is hard to believe this is Storey County’s desire. He added the consolidation has operated well and said he surmises that what is driving this request is the county’s determination to guide itself.

Ms. Giunchigliani asked whether the Mt. Charleston fire district was established the same way as Storey County had been and Mr. Trenoweth said that it was. Ms. Giunchigliani indicated she had asked earlier about the backup water reserve tank having been moved from Kyle Canyon to Lee. She said the department said it would see that it was moved back to Kyle, which is a landlocked area. She added there had been a fire and there was no backup water. Mr. Trenoweth said the division had moved an underground fuel tank, but not a water tank. Ms. Giunchigliani said she would get more information from her source. She said she believed it was moved back, but she wished to ascertain for certain. Mr. Trenoweth said he would check on it.

Forest Fire Suppression – Budget Page CNR-68 (Volume 3)

Budget Account 101-4196

Mr. Trenoweth said the last two fire seasons have been relatively slow, possibly due to El Niño or La Niña. He said Nevada has been lucky with regard to lightning, because it has only struck where it would do no damage. He emphasized the prevention programs seem to be working and people-caused fires are down.

Mr. Trenoweth updated the committee regarding reimbursement in this budget account. All bills prior to Fiscal Year (FY) 1998 have been collected. He said the division is still in the process of billing and collecting for FY 1998. Senator Jacobsen asked for a rough estimate of the amount outstanding. Mr. Trenoweth said it is about $121,000, but the division is still billing, so it is a "moving target."

Senator Jacobsen informed the committee that some of the fire districts also handle medical emergencies and vehicle accidents; Jacks Valley is the best example, he said.

Senator Neal asked why the Governor reduced the agency request by $140,000. Mr. Trenoweth responded that the difference is in the projected reimbursements and, if necessary, the division can approach the budget office and the Interim Finance Committee (IFC) to increase the amount. When Senator Jacobsen asked Mr. Nolan whether he had any comment, Mr. Nolan responded The Executive Budget includes the FY 1998 "actual" in the base budget and decision unit M-201, Demographics/Caseload Changes, brings the amount up to the authorized amount for previous years. Mr. Nolan added he would review the detail calculations of M-201 and get back to LCB if changes are recommended.

Forestry Honor Camps – Budget Page CNR-71 (Volume 3)

Budget Account 101-4198

Mr. Trenoweth said decision unit M-200, Demographics/Caseload Changes, would add three additional crew supervisors at the Silver Springs Conservation Camp for the proposed prison expansion at the conservation camp for female inmates. He said it would also add three helitak seasonal crew supervisors.

Mr. Trenoweth again called attention to Exhibit D, "Nevada Division of Forestry, Budget Summary/Equipment Request." He said it details the recommended equipment by location.

Ms. Giunchigliani asked how many more inmate crews the division would like to have. Mr. Trenoweth said he is happy with the number he is getting. Ms. Giunchigliani said the committee wishes to be sure the division has the number of crews it needs.

Mr. Trenoweth said he had a legislative letter of intent to enhance revenue, help the parks, and establish a 1:12 ratio of crew supervisor to inmates. At the end of FY 1998 the ratio was 1:11.92 statewide. He said Indian Springs was 1:7.41 and Silver Springs was extremely high. So, with the permission of the budget office and with the knowledge of LCB, the division moved two positions to better balance the crew ratio. Mr. Trenoweth said that "after growth in Indian Springs" he also sought permission to move a vacant position from Tonopah to Indian Springs, which was done. He explained there is constant fluctuation and the numbers are moving targets. Ms. Giunchigliani asked whether the division can use the inmates provided. Mr. Trenoweth said the division can use the inmates provided. Ms. Giunchigliani recalled testimony given at a previous hearing that there were inmates sent to Silver Springs who were not in good health. Mr. Trenoweth said he is not aware of such a problem and he knows there is an abundance of ready workers at Silver Springs, as well as the other camps. Ms. Giunchigliani also noted there was earlier testimony that a large majority of officers were trainees at Warm Springs. Mr. Trenoweth said the division is not affiliated with Warm Springs and he cannot respond to that.

Senator Neal asked about the phone sex operation at Silver Springs involving the female prisoners. Mr. Trenoweth said that question would best be answered by the Director of the Department of Prisons. Senator Jacobsen said he was directly notified of this situation and was involved in the solution. He said modern technology came into play with the "1-900" numbers and the situation is now solved. He added the Silver Springs Conservation Camp is one of the best. He also said all the supervisors and crews are trained.

Senator Jacobsen recalled there were women’s crews at the fire west of Reno and there were no problems. He noted there were about 500 inmates from throughout the state at the Christmas flood at Fuji Park. Two women’s crews were the cooks. He said there were no incidents, not even a fight between any of the inmates. He said this is one of the state’s best programs and added that neither of the state’s cemetery operations could survive without the inmate crews. He said the only thing he hears is there are not enough crews. He added the Nevada Department of Transportation (NDOT) indicated in testimony that it could use more crews.

Senator Jacobsen said former Governor Miller had indicated at the last session he wanted the program to be more self-supporting, but the senator noted a lot of jobs cannot be charged for. He said the state tries to do jobs that do not interfere with private enterprise or with the unions. Crews have been sent into California on "rehab" work at the Leviathan mine, which California paid for. Senator Jacobsen reiterated this is one of the state’s best programs and said he can vouch for that because on occasion he goes out and works with the crews. He added the crews do all the maintenance at the 4-H camp at Lake Tahoe. By and large the program is very successful, he said, and although occasionally it has a few glitches, "those are ordinary human things that happen."

Ms. Giunchigliani pointed out the state is waiting until the building addition at Silver Springs is completed before getting additional crews out. She said there are 48 people in that camp doing nothing. She asked, "What are they doing during the day, playing cards?" She said that is four crews the state could have "out there doing some work." She suggested some of the crew supervisors be brought on sooner "to get those people out there working." She said it might also be possible to collect additional revenue, but noted that will not offset the full cost.

Mr. Nolan said the three new crews are scheduled to start in December of the second year. He informed the committee that was done because the prison population estimates initially provided to the budget office were 160, dropping to 112 in the construction phase. He said it did not make sense to add two new crew supervisors for a couple of months, then have the supervisors sit idle while the addition is being done. He added that, unbeknownst to him, at the last minute the population projections changed to 160, with an increase to 168 when the wing is complete. He said the budget director has asked him to examine what the costs would be to accelerate those crews in accordance with the new population projections. Ms. Giunchigliani said it would be helpful if that information were provided to the committee. Mr. Nolan said he would provide it.

Mr. Nolan that said during the last session seven crew supervisors were added for the Jean Conservation Camp, based on the anticipated expansion to add 240 inmates. He informed the committee the expansion is now being constructed in two phases. Phase 1 will be completed in April 1999 and will add 32 inmates and 2 crew supervisors. The remaining five crew supervisors will not start until August 1999 when phase 2 is completed. The amount originally budgeted for those five crew supervisors in FY 1999 has been placed in reserve for reversion. Ms. Giunchigliani asked whether some of those resources could be diverted to jump-start the other crews. Mr. Nolan reiterated the resources are planned for reversion to help meet the budget crisis.

Senator Neal asked for explanation of performance indicator No. 9 for this budget, "number of emergency workdays Inmate Stipends (4196)." Mr. Trenoweth said that is the actual number of workdays inmates work on incidents and the amount of inmate stipends transferred from the Forest Fire Suppression budget account 101-4196 to this budget.

Senator Jacobsen recalled the recent committee hearing during which the committee reviewed the prison budgets and talked about "mothballing" the Southern Nevada Correctional Center at Jean. The senator said he recommended that, if the center were "mothballed," the Department of Prisons utilize the Jean Conservation Camp for the maintenance work. He related to the committee that a couple of years ago the Jean Conservation Camp repaired a fence at Jean and saved the state about $20,000. He also related that when the state was building the legislative parking lot in Carson City there were about 20 trees to be removed at a cost of $20,000. Senator Jacobsen said the crews removed the trees and it cost him only two cases of soda. He said that is a reminder of what can be accomplished with the crews.

Senator Jacobsen asked for an update on what is planned for the Ely industry shop. He added that he has been there a number of times and knows the state utilizes some of the U.S. Forest Service area. He was wondering whether the building at the airport could ever be utilized rather than allowed to just slowly deteriorate.

Mr. Trenoweth said the U.S. Forest Service would like to have its building space back. He informed the committee there is a capital improvement project (CIP) for the camp at Ely. It would provide one building of about 4,000 square feet in which the division could do everything currently done at the forest service yard. He said inmate labor would be used in the construction. He indicated he had secured about 3 acres at the Ely industrial site across from the airport for $10 a year with a 20-year lease and said the division would like to put the new building there.

Mr. Trenoweth indicated appreciation to Senator Jacobsen for calling the State Public Works Board and suggesting the public works board offer a building at Truckee Meadows Community College to the division. The public works board agreed and the division moved the building to Ely. He said the lease at the industrial park allows for two Butler-type buildings. He said there is a decision unit in the budget for about $25,000 for footings, a concrete floor, and electrical work. He plans to use that second building for an auto repair and paint shop. NDOT said it could give the division about $40,000 in auto paintwork and then NDOT would not have to send its vehicles to Elko to be painted. Mr. Trenoweth said the division paints some of NDOT’s cars now, but unless there is a paint booth (which the division does not have) only 9 square feet can be done at a time according to Occupational Safety and Health Administration (OSHA) regulations.

Senator Jacobsen asked whether the division ever made any effort to look at the railroad museum. He said those buildings are slowly deteriorating. Mr. Trenoweth said the crews have done work there. Senator Jacobsen suggested the division might be able to take over the shop building. He added there may be a historic preservation issue, but the building has some potential. Mr. Trenoweth indicated the division would prefer not to place the inmates downtown.

Mr. Trenoweth said that following the last session, the division had received a legislative letter of intent to enhance revenues. He informed the committee that, in this budget, anything billable prior to FY 1998 has been collected, except for three small debts. Those three small debts should be written off, but the division does not have an approved debt-collection plan. Once that plan is approved, the billable amounts will be written off. Mr. Trenoweth said the accounting staff does a terrific job. There are only two small collections remaining in FY 1998, and in FY 1999 (through December) the division has billed almost $528,000. In FY 1998 the amount received was about $1.3 million.

Mr. Trenoweth said that, in addition, the division is doing everything possible to continue working the projects that do not generate revenue (the veterans’ cemetery and the parks) and yet is still enhancing the revenue. Having the flexibility to move crew supervisors enhances revenue, because it allows the division to maximize resources. He said much of the revenue is generated in Clark County at Jean and Indian Springs and in the north at Stewart (in Carson City) and Silver Springs. He added that Carlin is about the fifth-largest producer. He said that right now revenue in the northern region is down somewhat because the mines are not requesting as much work since the price of gold is down. He said that by moving the crews around to maximize efficiency, the division expects to generate about $1.2 million for FY 1999.

Senator Jacobsen noted that anytime the state commits inmate crews to any kind of fire under the jurisdiction of the BLM or the U.S. Forest Service, federal law requires that the state pay minimum wage and the crews be trained.

Ms. Giunchigliani suggested the reason the amounts are down is that the two low fire seasons resulted in decreased activity. She asked whether the state bills for work done for local governments, possibly with a sliding fee scale, to offset some of the cost of the work. She said local governments would have to pay someone else for the work if the division were not doing it. Mr. Trenoweth said some of the local governments pay the full rate and some pay a reduced rate. Ms. Giunchigliani asked for a report on the payments received from local governments. She added the state is providing a service and there should be some return for that service. Mr. Trenoweth said he would provide the report.

Senator Neal called attention to the "one-shot vehicles repair" expenditure category in E-710 for $135,000 in FY 2000 and "reserve vehicle maintenance" in the base for $175,000 in both years. He asked Mr. Trenoweth to comment on the status of the vehicle fleet and its operation in terms of repairs and maintenance. Mr. Trenoweth answered the fleet is in excellent shape. He added the division keeps the vehicles maintained because it has mechanics throughout the state to maintain the equipment. He said the $135,000 is recommended for major overhauls in the next biennium because funding for purchasing new vehicles is not recommended. He added this amount is set aside for vehicle maintenance and repairs and, if it is not needed for this purpose, it will not be spent.

Senator Neal asked for explanation of the Reserve Vehicle Maintenance category for $175,000 a year. Mr. Nolan explained it is a continuation of a policy implemented last legislative session. It is a reserve to be used for vehicle repair for damages incurred while responding to emergencies or fires. He said the division must earn the cost of the repair through billings for cost reimbursement. Vehicles are billed on a per-mile basis. He explained that the money, as earned, would be placed in that reserve and the division would come to IFC for approval prior to expending any money on vehicle repairs of that nature.

Senator Neal said he found Mr. Nolan’s answers a bit confusing. He asked what the distinction is between the $135,000 and the $175,000. Mr. Nolan said the $175,000 he just described is the reserve. He explained there is also one-shot money provided in this budget in the amount of $135,382 for vehicle repairs. He said the division had requested a one-shot appropriation for the purchase of new vehicles. Since there were insufficient resources to include those vehicle purchases in The Executive Budget, the budget office asked the division what it would absolutely need to get through the biennium. The division identified existing vehicles that might have major problems based on the vehicle age and mileage and estimated the cost of possible major repairs, such as replacing a transmission or engine. Mr. Nolan said this information was provided to LCB earlier and can certainly be provided again, if needed. He said the vehicles involved are mainly crew buses for the camps and if the vehicles are not running, crews do not work and revenue is not generated. Mr. Nolan noted the revenue in this budget has been increased to $1.2 million based on the division’s fine performance of the last couple years.

Senator Jacobsen indicated that any time work is done for local governments, such as maintenance of cemeteries, those local governments are automatically billed. He added that he had even arranged for $1,000 to be put in the 4-H camp budget to be paid to the Forestry Honor Camp budget for reimbursement of costs. He asked Mr. Trenoweth to furnish the committee with camp reports for the last month, which would describe what jobs the crews are accomplishing. Mr. Trenoweth said he would provide the report.

Forestry Nurseries – Budget Page CNR-77 (Volume 3)

Budget Account 258-4235

Mr. Trenoweth said this budget includes the nurseries and the seed bank program and is a self-funded budget. He said the only major item in this budget is the request for a seasonal position to be paid from the U.S. Forest Service grant. The position would provide watering coverage at the nurseries during the hot season and help with the seed bank.

Senator Jacobsen said a building was constructed at the Washoe Valley Nursery for a seed bank. He said Patrick M. Murphy, Deputy State Forester, Division of Forestry, State Department of Conservation and Natural Resources, is in charge of that and it is a good program. He added this operation uses inmate crews to harvest natural seed throughout the state.

Senator Jacobsen suggested that if the committee can find the time, it should conduct an on-site tour of this operation.

Senator Jacobsen congratulated Terry R. Crawforth on his appointment as administrator of the Division of Wildlife. He asked Mr. Crawforth to provide an overview, to identify major problems and insight into future plans, then to proceed with the budget discussions.

Terry R. Crawforth, Administrator, Division of Wildlife, State Department of Conservation and Natural Resources, said that following seven years of drought and five mild wet winters, wildlife populations in the state are recovering very well from the drought. He said there are some species that are not recovering quite as fast as hoped. Reservoirs are full, streams are flowing well, range conditions are "pretty good," and so the picture for wildlife is looking fairly good. He added this is a user-fee-funded agency and if conditions are good for wildlife, conditions are good for the budget. He said revenues have met budgeted amounts.

Senator Jacobsen asked about the federal funding situation. Mr. Crawforth said federal funding is always up and down, but the two principal areas, sport fish and wildlife restoration programs, are fairly stable. He said that at this time, with the health of the national economy as it is, these revenues do not seem to be in jeopardy. He added there is proposed legislation in Congress to provide another major federal funding initiative for nongame wildlife. He said the division has been actively supporting that program.

Continuing, Mr. Crawforth called attention to several handouts he had provided for the committee, including the "Nevada Division of Wildlife Organization Chart" (Exhibit E) and the "Nevada Division of Wildlife Comprehensive Strategic Plan, 1997" (Exhibit F. Original is on file in the Research Library.) He informed the committee the division has worked on the strategic plan extensively for about two years and the division budget requests are based on the plan. He added there was extensive public involvement in development of the plan. He said he has also provided the committee with a document showing current performance indicators, "Nevada Division of Wildlife, Performance Indicators" (Exhibit G). He indicated these are primarily output measures. Also provided were the proposed new performance indicators, "Draft, Nevada Division of Wildlife, Comprehensive Management System – Performance Indicators" (Exhibit H). Mr. Crawforth informed the committee the Division of Wildlife was one of the agencies designated for base budget review and he thought the review went well. He said that, based on the plan, the division is working with the budget office and LCB staff to establish new performance measures that are primarily outcome measures, rather than output measures.

Mr. Crawforth said there are three budget accounts to be discussed at this hearing: the Wildlife account, the "boat" account, and the obligated reserve account. He said these accounts are all very linked. There are many transfers from one account to another, primarily from the other two to the Wildlife account, because the Wildlife account is the "operating" account. All salaries are paid from the Wildlife account.

Mr. Crawforth also provided a revenue and expense matrix for the recommended budget for the Wildlife account, "Nevada Division of Wildlife, FY00 Estimated Revenue and Expense and FY01 Estimated Revenue and Expense" (Exhibit I) and a spreadsheet which delineates the enhancement requests, "Biennial Budget Submission Work Sheet" (Exhibit J).

Wildlife – Budget Page CNR-86 (Volume 3)

Budget Account 101-4452

Mr. Crawforth said the Wildlife account is in good condition, although it is estimated in The Executive Budget that by the end of the next biennium the reserve will only be $14,000. He said such a low reserve concerns him. He explained that the division receives much of its revenue late in the fiscal year and some federal funds are received after the year has ended. He said the committee has been provided a document that includes four modifications to the base budget revenues (primarily federal) and results in an ending reserve balance of over $2 million in the Wildlife account, "State of Nevada – Budget Division, Line Item Detail, Without Position by Budget Account" (Exhibit K).

Mr. Crawforth said the division is pleased that the questions regarding the unobligated reserve versus the obligated reserve will finally be resolved. He said all the obligated funds will be moved to the obligated reserve account and the division will end each fiscal year with purely an unobligated amount in the Wildlife account. He added this change also impacts the size of the closing reserve in the Wildlife account.

Senator Jacobsen requested an overview of the operation in Henderson and the position requested in decision unit M-200. Mr. Crawforth said the division opened a satellite office in Henderson to provide better customer service to the boating public. That office has two people staffing it and a third is requested in decision unit M-200.

Assemblywoman Vonne S. Chowning asked where the office is located and when it was opened. She also asked whether the division has advertised to notify the public that an office is open in Henderson. Mr. Crawforth answered the office has been open approximately one year. He said it is in a shopping center in Henderson. Mrs. Chowning asked him to provide the address and he said he would. He said the division has issued several news releases and has directly advised some of the boating public. He said traffic at the office would indicate "they are finding us." He added the traffic there is accelerating as anticipated. He also informed the committee there have been two burglaries at that office already.

Mr. Crawforth said this decision unit includes a new Game Warden position for the Las Vegas and Boulder City areas. That position would help on boating safety patrols on the Colorado River, but the primary purpose is to help "firm up" the boating safety education program in southern Nevada, including classes, additional educational materials, and radio announcements with a safety message.

Senator Neal asked how the increase in boating activity is measured and how the measures are used to justify the new positions. Mr. Crawforth said the division had contracted with a survey company some years ago to survey at boat ramps and contact boat users. He said the division also uses activity figures from the National Park Service of the U.S. Department of Interior, from the Division of State Parks and from the division’s own boat registration renewals, which increase at about 5 percent a year. Senator Neal asked whether the study is done on an annual basis. Mr. Crawforth answered that it is. He qualified that answer by adding that the division has a contract with a firm which is currently working on a new boater survey similar to the one conducted about 10 years ago. Senator Neal asked whether the new position is based on the survey done 10 years ago. Mr. Crawforth answered, "Only partially." He said mostly it is based on the activity figures from the National Park Service, the Division of State Parks and the division’s own boat registrations.

Mr. Crawforth said this decision unit is the result of the strategic planning effort and includes increases in several categories. He said it provides increases in employee training and provides for attention to some of the facilities. He advised the committee the division has four fish hatcheries and a number of wildlife management areas around the state. He said the Division of Wildlife is currently undergoing a maintenance backlog survey of all facilities, but it is clear the division needs to put some money into several of the facilities. So there are recommendations in several areas concerning maintenance, Mr. Crawforth said. He added the wildlife division is trying to update the license sales system because the division is basically issuing licenses the same way it did almost 40 years ago. He said that during the next biennium the division hopes to work into a more automated and customer-friendly program.

Mr. Crawforth said this decision unit adds a Management Analyst IV to continue the current planning and to help with coordination of federal aid. Federal aid provides more than 50 percent of the division’s total budget and the division needs to better manage those resources, he stated.

Mr. Crawforth said E-403 and E-407 are companion decision units which provide for two Conservation Educators, one for western Nevada and one for northeastern Nevada. He said the most resounding comments the division received during the public survey for the planning process was that people want more information and education about wildlife. He said people want to know who the division is and what it does. He explained there is a fairly substantial effort in southern Nevada at this time, but the program currently has no conservation education in northeastern Nevada and the division is attempting to enhance its efforts in western Nevada.

Mr. Crawforth said the division hopes to acquire Carson Lake in the Lahontan Valley and if it does, the division will need somebody to attend to water delivery and maintenance of structures at Carson Lake. The division also needs a person to perform those functions at the wildlife management area at Lovelock. This decision unit would provide a Wildlife Technician II to address those needs.

Mr. Crawforth said this decision unit recommends funding for a Fisheries Biologist II position to work on the Environmental Improvement Program (EIP) in the Lake Tahoe Basin, which he said will be discussed later in this hearing.

Mr. Crawforth said those are the primary enhancements for the division.

Senator Jacobsen said U.S. Senator Richard H. Bryan mentioned something about the Casey property in Washoe Valley and asked whether the division is involved in that. Mr. Crawforth said the division is involved in that in several areas. He explained to the committee John Casey passed away and left a sizeable estate, 45,000 acres of property scattered throughout mostly northwestern Nevada. He said there is a considerable piece of property at the junction of the old Franktown Road and Highway 395 in Washoe Valley near the old Winters’ Ranch House. The Scripps Wildlife Management Area borders that property and the division is working to acquire some buffer property along the edge of that wildlife management area. He said the division is also working with the Holland Land and Livestock Corporation, which has a lot of land in northern Washoe County, and is hoping to acquire some parcels in that area.

Senator Jacobsen asked for a status report regarding predatory animal and rodent control. He said the number of coyotes is increasing in the Gardnerville area. He noted he saw three large bald eagles on the way to this hearing and added it was the first time this year. Mr. Crawforth responded that predatory animal control is a large issue in the western United States at this time. He said the Board of Wildlife Commissioners would be entering into public dialogue on the issue starting at the board’s March meeting. He said the division has provided a listing of the various predators that reside in Nevada and a history of the various predator control efforts in Nevada over the last 150 years. He said the division has also asked the federally funded State Predatory Animal and Rodent Committee to discuss its program. He reiterated this issue needs a lot of public dialogue before taking substantial action.

Senator Jacobsen suggested the local game management boards could inform the public what the threats are, especially with coyotes and mountain lions. Mr. Crawforth said the County Wildlife Advisory Boards usually follow the wildlife commission agendas and place the same issues on the local boards’ agendas so there can be local discussion as well. He said the local boards bring that information back to the commission.

Senator Neal, returning to discussion of the game warden position for Boulder City in E-375, asked again how the division measures the level of boating activity. He said that at first he thought he understood the answer given earlier, but as he processed it, he realized he did not understand how it would be done. He recalled that Mr. Crawforth said the division would do a survey. Mr. Crawforth replied the division has fairly good estimates of the number of boats and the number of people who use Lake Mead, the lower Colorado, and Lake Mojave, for example. He said the division does not generate all the data. A lot of the numbers come from the National Park Service. Senator Neal asked whether the division uses ratios or percentages or some systematic formula to determine when a new position is needed. Mr. Crawforth said for the number of staff the division has patrolling the lake at this time, the division is keeping up with the traffic out there, but positions need to be added periodically. He reiterated the division’s goal with this position is primarily an educational effort to get the safety message out to the people in southern Nevada.

Senator Neal referred to Exhibit E, "Nevada Division of Wildlife Organization Chart." He noted the first page shows the position of Bureau Chief, Administrative Services, vacant. He said it is not connected with lines to any other positions and wondered to whom it would report, if filled. Mr. Crawforth responded it would report directly to the administrator. He said that currently Betty Horton is doing a very good job of filling that position. He added the division is in the recruitment process and expects a list in the following week.

Wildlife – Boating Program – Budget Page CNR-103 (Volume 3)

Budget Account 101-4456

Mr. Crawforth said there are a number of revenue sources in this budget account. The revenues are primarily from boat registration and title fees, state boat fuel tax, and federal funds. He said the division has implemented a very balanced five-part program. The division conducts the titling and registration of all motorboats in Nevada and there is a fairly substantial boating safety education program. Mr. Crawforth said the division conducts enforcement patrols on the various waters in the state. He added the division installs and maintains navigational aids on some of Nevada’s waters and it has a fairly active boating access program, construction of new boat ramps or repair, and maintenance of old ones. He said the division primarily works with the National Park Service and the Division of State Parks in those activities and is continuing to accelerate that program.

Mrs. Chowning asked how Nevada’s fees compare to other western states and when Nevada’s last increase occurred in all fees for the Division of Wildlife. Mr. Crawforth said he would provide that information.

Wildlife Obligated Reserve – Budget Page CNR-98 (Volume 3)

Budget Account 101-4458

Mr. Crawforth said this account was established several years ago at the suggestion of LCB staff. The division is requesting to include in this budget all revenues and expenses for "obligated" programs, such as elk damage fees, duck stamps, gifts from various hunting and fishing organizations, and "soft money" programs, such as short-term grants. He reiterated that by including all obligated funds in this budget, there will be a clear "unobligated" balance of license revenues in the Wildlife Budget Account 101-4452 and the division can better manage that account.

Senator Jacobsen indicated he recalled testimony by the division that the reserve should never go below $500,000 and asked Mr. Crawforth to address this item. Mr. Crawforth responded that over the years the division has tried to establish an end-of-year balance target and said the division would now like to try a new approach rather than picking a dollar amount. He said the division is proposing to maintain an end-of-year balance in the Wildlife budget account of at least 10 percent of the annual revenues. He explained that would provide a reserve end-of-year balance in the Wildlife budget account of nearly $2 million.

Senator Jacobsen, again returning to the Wildlife budget account 101-4452, noted that every time he visits the Mason Valley Ranch he sees a lot of heavy equipment, such as front-end loader, backhoe, motor grader, and farm tractor. Mr. Crawforth said the division is trying to liquidate a lot of that equipment, which was old military surplus from Hawthorne that was not functional. He said the division tried to sell it, but it is not very saleable and not very easy to haul off. The division does need, especially in the wildlife management areas, a fair amount of heavy equipment for construction and maintenance of projects. Some of the division’s heavy equipment has not been replaced for a while and would cost more to repair than the value of the equipment. Mr. Crawforth added the divisions within the State Department of Conservation and Natural Resources do share large equipment to maximize equipment resources.

Senator Jacobsen asked whether the division has a "wish list" on file with the Purchasing Division. Mr. Morros said the Division of Wildlife acquired three military surplus heavy-duty all-terrain forklifts. Senator Jacobsen said the prison system has an 8-yard front-end loader that could probably be borrowed if needed. Mr. Crawforth said the Division of Wildlife also shares such equipment as excavators with other agencies. Senator Jacobsen asked whether the division receives a list of equipment that other agencies have which might be available for loan. Mr. Crawforth said the State Department of Conservation and Natural Resources pools equipment for shared use.

Senator Jacobsen said he had not seen anything in the budget regarding fisheries. He added the fisheries program seems to be very successful. Mr. Crawforth said the program is dependent on the annual moisture and all the reservoirs and streams are full. He added that a lot of the division’s efforts over the years have recovered some fisheries lost during the drought. He said the fish hatchery program is providing what the customers are asking for. The division’s concern is related to the Endangered Species Act. He said that in the Great Basin environment, Nevada has a lot of isolated fish populations and many of those are either listed or threatened to be listed. He said the division is trying to work through many of those situations, but a lot of fisheries programs, even involving game fish, are listed as threatened under the Endangered Species Act.

Mrs. Chowning said she always likes to give compliments when compliments are due. She said the Division of Wildlife does a wonderful job of public relations. She added that people hear the division’s spokespersons on the radio in Las Vegas and see them on television in the north and on various public information television shows in Las Vegas. She said, "Good work." Mr. Crawforth said he would pass that on to the people involved in the program. Senator Jacobsen said that is well noted. He added there sometimes seems to be more emphasis on the bad things, with none on the good.

ENVIRONMENTAL IMPROVEMENT PROGRAM - OVERVIEW

Pamela B. Wilcox, Administrator and State Land Registrar, Division of State Lands, State Department of Conservation and Natural Resources, presented an overview of the Nevada Tahoe Initiative to Implement the Tahoe Environmental Improvement Program. She said her purpose is to provide context prior to the Tahoe Regional Planning Agency (TRPA) budget hearing. She noted that this will allow the committee to see the 10-year program the state has committed to and see the TRPA budget and other budget segments all tied together. She called the committee’s attention to Exhibit K, "Lake Tahoe Initiative – Environmental Improvement Program," which included the overheads she would be using, a summary of where the state is in terms of implementation, and three pages at the end that pull together all the pieces of different agency budgets on one table.

The first overhead in Exhibit K was "Table 2: Summary of Ten Year EIP Project Capital Needs, (1997-2006) Apportioned by Community Sector." Ms. Wilcox said Table 2 represents the commitments that were made during the Tahoe Presidential Forum in the summer of 1997. The TRPA asked the participants in that forum to commit to implementing the environmental improvement program over 10 years. The commitments from the different agencies totaled $908 million, of which $152 million was to come from the private sector, $101 million from local governments, $207 million from the state of California, $82 million from the state of Nevada, and $297 million from the federal government. She said it was all to be developed in a coordinated way with programs that would protect the lake and hopefully turn back the process of putrefaction, with the lake losing its clarity. She said the scientists have indicated this is a critical moment in time and that if aggressive action is not taken right now, this lake may cross a threshold from which it cannot return.

The second overhead was "Nevada EIP Commitment." Ms. Wilcox said this table represents the initial breakdown of how the $82 million will affect the state of Nevada. The expenditures will come from three agencies responsible for implementing these projects. The Division of State Lands has already been implementing programs to issue grants for environmental projects at the lake, Ms. Wilcox testified. Those programs would continue, totaling approximately $37 million. The Nevada Department of Transportation has already been retrofitting highways in the Tahoe Basin to make improvements. Those programs would continue. The major newcomer that has not in the past been successful in getting funds for its resource work is the Division of State Parks. The Division of State Parks has a great deal of resource work to be done within the park and would get funds for that work during this 10-year period, Ms. Wilcox continued.

The third overhead was a bar chart, "State of Nevada – Ten Year EIP Commitment." Ms. Wilcox said the 10-year program is in its second year. She said this bar chart is an approximate distribution of how the funds would be expended year by year and shows the importance of carrying out this program for the full 10 years. She said that by the end of the 10 years, $82 million will have been spent. Every session the agencies will be back to the Legislature with requests for funds needed for the following biennium. She said there will be a bill draft request (BDR) to authorize the expenditure of bonds to cover those expenditures and to authorize Ms. Wilcox to seek appropriations when there is enough cash that bonds are not needed.

The next overhead was "State of Nevada – Tahoe EIP Implementation Team." Ms. Wilcox said carrying out this program presents real challenges for Nevada. She said the state of California has an agency in the Tahoe basin, The California Tahoe Conservancy, with a large staff of over 20 people working full-time on the environmental improvements. She noted Nevada does not have that luxury. She said there is no such agency and it did not seem to be a very efficient way to do business. Instead, the agencies are requesting a few new positions, shown with asterisks on the handout.

Ms. Wilcox said the team also includes existing staff with appropriate expertise from all the state agencies with jurisdiction in the basin. Those agencies are being asked to contribute some time to an overall team. The team will work together to integrate the programs of all the different agencies for a coordinated effort to implement the Environmental Improvement Program (EIP) in the basin. Ms. Wilcox opined this is the most effective and efficient way to do the work. She added this would provide a unique ability to use new approaches in ecosystem management and watershed base management because there would be an interdisciplinary approach with people of different fields of expertise available to work together.

Continuing, Ms. Wilcox said the members of the resource agencies that would be added this session consist of one person from the Division of Wildlife, one person from the Division of Forestry, a stream restoration person in the Division of State Lands, and a resource conservation person in the Division of State Parks. Ms. Wilcox said there would be an attempt to co-locate the new staff, either in the basin or here in Carson City, for the staff to work together on a daily basis. She explained the Nevada Department of Transportation (NDOT), which is requesting two new positions for this program, already has an interagency team overseeing NDOT efforts in the basin. She concluded this is going to be a successful and efficient way to get the programs off the ground in the Tahoe basin over the next eight years.

Senator Neal asked whether support staff would come from the various agencies participating on the implementation team. Ms. Wilcox said the initial support staff shown on the chart is located in the Division of State Lands. She said one staff person has been added, Jim Lawrence, who is the Tahoe coordinator working under Ms. Wilcox to tie this team together. Most of the agencies participating are not requesting additional staff for this program. Ms. Wilcox said that, for example, this is a small part of the operations of the Commission on Tourism and the State Historic Preservation Office. Both of those agencies already have the Tahoe preservation programs in place. Ms. Wilcox said the EIP program only requires the new positions listed earlier and those new people will be working more or less full-time on Tahoe efforts. The support staff needed will come from the agencies represented.

Senator Neal asked how the EIP will be integrated with the present Tahoe Regional Planning Agency (TRPA). Ms. Wilcox said that will be covered later in the presentation, but pointed out on the overhead that TRPA is listed as a partner agency. She said there are partnership organizations that meet regularly. There is an EIP executive team, a federal partnership executive team within the basin. All these state agencies work closely together and work with federal agencies, TRPA, the state of California, local governments and the private partners. Many meetings are held in the Tahoe basin and there is much coordination.

Senator Neal asked whether the EIP will precipitate any changes in the Tahoe Regional Planning Compact. Ms. Wilcox answered that it will not.

Ms. Giunchigliani asked whether there will be any additional computer needs or mapping needs the committee will have to take into consideration. She said that sometimes these other areas come into play when putting together an environmental plan. Ms. Wilcox said all the recommended new positions have the necessary equipment components included. Ms. Giunchigliani asked whether there will be cost allocation impacts the committee will need to deal with. Mr. Nolan responded he is not aware whether cost allocation has or has not been considered. He said the budget office will look at that and get back to the committee.

Senator Neal asked whether there is some type of mission statement that has been developed among all these groups everyone can "buy into" and know exactly where the programs are going. Ms. Wilcox said there is not, but acknowledged it is a good idea and said the team would develop one.

Senator Jacobsen indicated he did not see Native Americans represented. Ms. Wilcox said the tribal groups are key players in all the partnerships within the basin.

Jeff Fontaine, Deputy Director, Nevada Department of Transportation, said that in the NDOT mission to provide a safe and effective highway system, there is a strong commitment to preserving environmental quality. This commitment is especially evident within the Lake Tahoe basin. Mr. Fontaine said NDOT has responsibility for 106 lane miles in the Tahoe basin and of course maintenance responsibilities for snow and ice removal in the basin and the three passes that lead into the basin. This includes the Mount Rose Highway, with the highest year-round pass (8,900 feet) open in the Sierra Nevada mountains despite snowfalls of more than 30 feet. Mr. Fontaine said NDOT has a difficult time working the Lake Tahoe basin for a variety of reasons. For one, it is a short construction season, which coincides with the peak traffic in tourism in the basin. For another, there are really no detour options during roadwork. Mr. Fontaine added the environmental mitigation that is necessary causes roadwork construction and maintenance to be very difficult. He noted the efforts of NDOT to protect Lake Tahoe have been ongoing for many years. One example is the Road Weather Information System (RWIS).

Mr. Fontaine called attention to Exhibit L, "RWIS." He explained that RWIS is a series of weather stations and sensors which collect and send information to computers that analyze the information to determine when NDOT needs to apply salt and sand. This information allows NDOT crews to apply the salt and sand efficiently, which results in a significant reduction in sand and salt in the Lake Tahoe basin. However, he said, it has really been the EIP that has created a framework in which NDOT has been able to establish comprehensive goals for improvements in the Lake Tahoe basin. The EIP has also enabled NDOT to combine its efforts with a variety of federal, state and local partners. Mr. Fontaine said NDOT’s role in the EIP is significant in terms of projects and costs, but the projects will result in measurable improvements.

Continuing, Mr. Fontaine said NDOT is involved in a variety of other projects in the Lake Tahoe basin that are not necessarily related to the EIP or traditional roadwork construction and maintenance. He said the other projects enhance the quality of life in the Tahoe basin and include things like Memorial Point Visitors’ Center, the Northshore Beautification Project, and construction of many miles of bike lanes. These projects are funded out of the enhancement program, which is part of the Transportation Equity Act for the Twenty-first Century (TEA-21) federal legislation and its predecessor, Intermodal Surface Transportation Efficiency Act (ISTEA).

Ms. Giunchigliani said she had talked to Tom Stephens, Director, Nevada Department of Transportation, about the mix of salt. She said she did not realize it was the drought that had caused so many of the trees to die along that side of the lake. She had assumed it was the salt. She said she learned that NDOT uses a different mix now, which has helped. Mr. Fontaine said the RWIS system and the change to a different type of de-icing chemical that prevents the road from actually freezing have been able to reduce the application of salt and sand by about 73 percent. Ms. Giunchigliani said Mr. Stephens had said he would consider that system for Mount Charleston, but she did not know whether this has happened.

Amir M. Soltani, Chief Hydraulic Engineer, Nevada Department of Transportation, testified using overhead projections. He said the primary goal of NDOT’s environmental program is to reduce the amount of sand and salt and to improve quality of the roadways within the basin. Erosion of roadway cut-and-fill slopes and roadway de-icing sand contributes to the pollution and mutation of the lake, he stated. Roadway runoff during rainfall carries pollutants such as oil, grease, nitrogen, phosphorus and acid to the lake. NDOT’s goal is to minimize the discharge of sediments and pollutants from roadways by controlling the source of sedimentation and minimizing and treating the pollutants from roadways. Mr. Soltani said NDOT does that by covering up the exposed cut-and-fill slopes with "Refab" to revegetate it. He added the department minimizes the application of roadway de-icing sand and salt, as Mr. Fontaine mentioned, with the help of the Road Weather Information System.

Continuing, Mr. Soltani said the department also plans to control and treat the runoff from the roadway with the construction of storm drain systems. As part of the system NDOT plans to build sediment traps to capture roadway de-icing sand and salt. NDOT also plans to build oil-water separators and filtration basins to clean the water as much as possible.

Mr. Soltani explained that, in doing this work, it is a challenge to develop solutions that have minimal impact on the environment of the lake. He said the department plans to make sure it does not degrade the quality of the cultural resources and fish habitats of Lake Tahoe. At the same time the department strives to develop solutions that are economically feasible, maintainable, and safe. To deal with those challenges, the department had a $2 million demonstration project in 1996 for 2 miles of State Route 28. Mr. Soltani said NDOT learned a lot from that project. As a result, the department started a master planning process of erosion control and water quality for all the roadways within the Tahoe basin. NDOT completed phase 1 of the planning project last year with plans and details for 6 miles of State Route 28. NDOT is now in the process of developing plans and details for 13 miles of U.S. Highway 50 and State Route 760 (Kahle Drive), Mr. Soltani said.

Mrs. Chowning asked why a section of highway was excluded in phase 1. Mr. Soltani said that section is reserved for future bike paths on State Route 28.

Mr. Soltani said one lesson learned from the master planning process is that NDOT must work with a lot of different agencies within the basin, and to do so the department initiated a partnering process. Right now the department has partnerships with 17 different federal, state, and local agencies and all these agencies have direct input into the department’s planning and design process. Mr. Soltani said that at the same time the department is working very closely with over 40 different agencies within the Tahoe basin, including 20 general improvement districts, the California Department of Transportation (Caltrans) and the Lahontan Water Quality Board.

Mr. Soltani showed an overhead with a list of NDOT projects and activities within the Tahoe basin and said it represents the schedule of work. He explained that each row represents a project and each column represents a year. In 1998 NDOT initiated $15 million in projects for the Tahoe basin. Mr. Soltani said these are maintenance projects, environmental improvement projects, and water quality projects. Between 1999 and 2002, NDOT plans to spend nearly $43 million on different types of projects in the Tahoe basin, he said. He noted $30 million of that is going to be for water quality and erosion control.

Mr. Soltani said the department has the funding sources for these projects: the state Highway Fund, the 1996 Tahoe bond, and nearly $20 million in federal highway funds. He noted the department has identified approximately $39 million in EIP projects needed on the roadways between 2003 and 2010. However, he said, up to this point the department has not identified the funding sources for these projects. He explained that as NDOT builds, it needs to maintain. Mr. Soltani said the cost of maintenance is going to increase. Right now the department requires over $400,000 a year to maintain the facilities. By the year 2008 that cost is going to be approximately $1 million a year. That is just for cleaning culverts and storm drain systems and maintaining erosion control facilities. The department must also have a monitoring program to assess how effective the design and maintenance activities are. The Nevada Division of Environmental Protection (NDEP) also requires a monitoring program. The cost of that is approximately $100,000 a year.

Mr. Soltani said that late last year the department initiated a public involvement program and had two meetings last year. At least four more are planned for this year. The department has given presentations to the Tahoe Governing Board and the Tahoe Advisory Planning Committee (APC). NDOT has started a website, which will be active in the next two to three weeks. Mr. Soltani called attention to Exhibit M, "Tahoe Counterparts" and said it is a joint newsletter that NDOT, the Division of State Lands, and TRPA develop and publish. He added that it was mass-mailed last year to nearly 1,000 residents in the Tahoe basin.

Senator Jacobsen asked whether there is an anticipated date for opening of the lookout on State Route 28. Mr. Fontaine said he thought the department was "shooting for" sometime in the spring. He said he would provide that information.

Ms. Wilcox indicated to the committee that local governments need to do the same kind of work on roads plus other kinds of work, and she said that is the primary purpose of the grant program operated out of her office. She said 11 grants have been issued so far out of Tahoe Bond Act Question 12 funds and additional funds will be requested as needed.

Ms. Giunchigliani asked whether the bill that Ms. Wilcox mentioned would be another bond for the public to vote on. Ms. Wilcox said that, as currently contemplated, it would not be a bond for the public to vote on. She said the budget office had indicated the most efficient way to fund this was from biennium by biennium, to use any cash sources that may be available in that biennium and then attach the remainder of whatever bonds may be needed to the state CIP bonds. Ms. Giunchigliani asked whether it would affect the state’s bonded indebtedness in any way. Ms. Wilcox said that would also be considered on a biennium-by-biennium basis. Ms. Giunchigliani indicated she did not want to impede her bond for school construction. Ms. Wilcox said these are conservation projects, which have a constitutional exemption and would be separate.

Ms. Wilcox said the Division of State Lands has similar programs being funded by grant. She said the division is also issuing grants to the Nevada Department of Transportation.

Tom Porta, Chief, Bureau of Water Quality Planning, Division of Environmental Protection, State Department of Conservation and Natural Resources, said he would provide a brief description of the division’s water quality activities within the Lake Tahoe basin and the division’s coordination with TRPA. He said one of the division’s roles is to allocate federal funds for water quality improvement projects throughout the state. He said these projects range from education to erosion control. He added the division currently funds four such projects within the Tahoe basin at an approximate cost of $250,000 with approximately $.5 million matching funds provided by the cooperative agencies. Two of these projects involve water quality education and two involve restoration work on streams and wetlands.

Mr. Porta said another function of the division is to collect and analyze water quality samples. Lake samples are collected, as well as samples of tributaries to the lake. He indicated the data from these samples is shared with TRPA and other agencies in the development of water quality standards for Lake Tahoe on the Nevada side.

Mr. Porta said the division and TRPA coordinate on many other planning-related issues through work groups and commissions. Mr. Porta said division staff, including himself, are members of the TRPA Advisory Planning Commission, the Lake Tahoe Water Quality Working Group, the Tahoe Bond Act Technical Advisory Committee, and other such groups. He said the Division of Environmental Protection will continue its support and efforts with the TRPA and the EIP program to improve Lake Tahoe’s water quality.

Wayne R. Perock, Administrator, Division of State Parks, State Department of Conservation and Natural Resources, said he has talked, over time, with the committee about forest health issues in the Lake Tahoe State Park. He said the state park area within the basin includes about 7,500 acres of the more than 14,000 total acres in the park.

Mr. Perock said the division would provide office space for the team either in Carson City or at Lake Tahoe. He explained that projects for the new staff would focus on resource management issues. The projects include upland wildlife habitat enhancement and habitat restoration of old growth in North Canyon and Sugar Pines.

Mr. Perock said the big emphasis in the first two years will be the initiation of phase 1 of forest restoration. Phase 1 would include identifying the problem areas and developing the long-range program for prescribed burns and other treatments on the forest. He said the state parks division would also be using its planning and development staff to do other recreational threshold improvements throughout the park. He explained that improvements would include erosion control, trails, the interpretive center, maintenance complex upgrades, and boat launch facility upgrades. Over the 10 years of the EIP program there would be more projects that meet these thresholds. He said that overall the largest and most critical issue is resource management.

Ms. Giunchigliani asked for a list of the state school lands appraisals that might be attached and any potential collections that might exist. Ms. Wilcox said she would provide the information.

Tahoe Regional Planning Agency – Budget Page CNR-136 (Volume 3)

Budget Account 101-4204

Jerry Wells, Deputy Executive Director, Tahoe Regional Planning Agency (NTRPA), said James W. Baetge, Executive Director, TRPA had hoped to attend the hearing but was recovering from surgery. Senator Jacobsen indicated the committee wished him well.

Mr. Wells said that over the last couple of years Nevada has come a long way in terms of partnering with various state agencies, and the same thing is happening at the federal and local levels as well as in California. He added there is a long way to go, but there is a good road map because the EIP has been adopted and Nevada can start moving forward.

Mr. Wells said the Governor’s recommendation for the two fiscal years of the biennium is approximately $1,320,000 for the first year and $1,330,000 for the second year. Revenues in both years are scheduled to come from the DMV Motor Vehicle Pollution Control account transfers. Approximately $703,000 in each year is considered base funding and the balance is contained in five specific decision units. The bistate Tahoe Regional Planning Compact requires funding to be one-third from Nevada and two-thirds from California. The two-thirds from California is included in the Governor’s recommended budget in California.

Mr. Wells said this decision unit is the Environmental Improvement Program, which is the most significant budget request for TRPA. He said $413,000 is recommended in the first year and $393,000 in the second year for Nevada’s share. He informed the committee the two states funded this program in the current biennium as a pilot program. He said that because of the overwhelming support received at all levels, the program has evolved into a major part of the agency’s base operations. The primary rationale for this particular budget request is to ensure that TRPA has the necessary resources to fully implement the EIP program. Mr. Wells said that as the committee can see from Pam Wilcox’s presentation, a lot of coordination is required.

Mr. Wells noted that what has been discussed at this hearing relates just to the Nevada side of the lake, but TRPA must consider the entire region of Lake Tahoe, which involves all the districts, all the local governments, and all the federal and state agencies on both sides of the state line. He said TRPA is currently facing a challenge with this program because the funding is becoming available so fast for these EIP projects that it is difficult from a staffing level to actually implement the projects. A good example, he said, is the NDOT presentation to this committee. He said there are about 15 EIP projects scheduled to be on the ground or in the process of being put on the ground over the next two years, totaling about $39 million. He added that TRPA must be in a position to respond to make sure those projects move forward in a timely fashion.

Mr. Wells said the E-400 decision unit involves five functional areas. The first is developing an EIP action plan. The second is enhancing the computer database and Geographic Information System (GIS) abilities. The third is implementing the plan for regulatory conformity in the basin. The fourth is the erosion control program for residential and commercial properties; TRPA has access to a federal grant of $260,000 over the next three years for erosion control. Mr. Wells said this decision unit would provide roughly $18,000 in state funding for the match. He said that, finally, the fifth piece is implementing the real-time monitoring program, which provides the feedback on the EIP projects as they are implemented and measures the success in terms of environmental improvement. He added that, if the EIP needs to be changed or adjusted as it proceeds, it can be done on a real-time basis.

Mr. Wells explained this decision unit would provide for the public education program for the motorized watercraft enforcement. He said TRPA has recently adopted ordinances regulating motorized watercraft and those ordinances go into effect in June 1999. He informed the committee that TRPA must be in a position to fully educate the public on the new regulations as well as enforce them. He explained this request is for six new seasonal positions, the equivalent of three full-time positions. Mr. Wells said the agency’s long-term strategy would be to work with local, state, and federal entities with jurisdiction over the lake to get full involvement in this program.

Mr. Wells said this decision unit recommends approximately $83,000 in each fiscal year for threshold studies. This program is funded in the current biennium by both states and this would be a continuation. There are a number of studies that need to be completed over the next 10 years relative to the EIP program to ensure it is on target, Mr. Wells said. He added that TRPA would be returning each biennium for this request in these same amounts.

Mr. Wells indicated this decision unit would provide $50,000 each year for increases in the cost of legal services. The legal services budget for TRPA, which is funded primarily by the two states, has not been increased since 1986. This request would provide an incremental increase to meet actual costs.

Senator Jacobsen asked how many lawsuits are currently pending. John Marshall, Legal Counsel, Tahoe Regional Planning Agency, answered there are seven pending cases. He cautioned this is just the legal work actually in court. He said four of those are large, active cases, for which the agency recently received an allocation from the Interim Finance Committee (IFC). He added this request is for a long-term increase so TRPA can, in essence, bring a lot of that work back in-house when the large trial load declines. He said this would allow the agency to conserve costs and not have to come before IFC for additional funds for private counsel. Senator Jacobsen asked what the oldest suit is. Mr. Marshall answered the oldest suit on record is the Tahoe-Sierra Preservation Council case, which was filed in 1984. Senator Jacobsen asked whether there has been any progress on that case. Mr. Marshall said that in December 1998 TRPA went to trial on the liability phase of that case. Judge Edward Reed, U.S. District Court Judge, District of Nevada, Reno Division, issued a decision early this year in which he found that TRPA is liable for a "temporary taking" from 1981 to 1984. TRPA has requested that he certify the ruling for appeal. Mr. Marshall said there will be a damages phase if the appeal is unsuccessful. That would probably occur later this year or next year.

Assemblyman Bob Price was curious about the "water scooter things." He said people who live in this area know about the problem because they read about it in the paper or see it on the news. But, he said, someone who lives outside the area and hauls one of those "little scooters" would not necessarily be informed. He asked whether the laws are posted at the dock. Mr. Wells said the biggest part of the request this first two years would be for a public education campaign to get the word out. He added the agency is working with the local marinas and the public launching facilities to put up signs and to distribute pamphlets and brochures to inform the public. He said that for the first year or two, TRPA plans to employ a public education tactic rather than a heavy-handed enforcement tactic. He said TRPA knows it has to get the word out about what watercrafts the public can and cannot use at Tahoe. He informed the committee the manufacturers are starting to manufacture clean engines that will be available to the public to buy. He said the people who have bought over the past couple years, however, will have to change out those engines over time.

Senator Neal noted that Mr. Marshall had said the oldest case was from 1984 and that TRPA is presently in the process of certifying that to an appeal. He asked for a brief statement about the issues. Mr. Marshall said it is not an appeal as of right now. He said TRPA has requested the court to certify certain issues of law, primarily a doctrine known as a "reasonable planning moratorium." Under this doctrine a public agency may halt development for a short time while it assesses how to proceed, in light of environmental or other conditions, and adopts a regional plan. Mr. Marshall said this case goes back to 1981 through 1984. There was a moratorium in place on development of sensitive land while the 1984 regional plan was being adopted. TRPA’s position is that it was a reasonable amount of time for the planning process, Mr. Marshall stated. He said the trial court admitted this was an issue of first impression (an application of law to unique facts addressed for the first time) and that is primarily what TRPA is seeking certification on.

Senator Jacobsen asked about the funding source and whether there will be a bill draft request (BDR) for that. Mr. Nolan indicated a copy of the BDR was distributed to the committee (Exhibit N). He said it clarifies the previous legislation in that it specifically authorizes the priority order for use of funding in the DMV Motor Vehicle Pollution Control account starting with the listed state agencies: DMV, DEP, Division of Agriculture, and Nevada TRPA (for NRS Chapter 277.200). Mr. Nolan indicated the BDR might need to be revised to include the Health Division. He said that is followed by the one-fifth portion of the fees "off the top" for the counties. Any remaining fees may be provided to agencies performing work in the basin (such as TRPA, the Division of State Parks, and the Division of Forestry). Mr. Nolan said he had a discussion with John P. (Perry) Comeaux, Director, Department of Administration, about funding sources. He said the budget office decided to recommend full funding for the entire TRPA from the DMV Motor Vehicle Pollution Control account. If the money is not available down the road, alternative funding will have to be identified. Mr. Nolan added there is some question or concern about the length of time TRPA can be funded at this level, and it may be just for this biennium. He said options are to fund it with the DMV Motor Vehicle Pollution Control money for right now and then the General Fund or, if necessary, reduce the program.

Senator Jacobsen asked whether California has similar pollution fees on the California side. Mr. Wells said the best analogy is that California has environmental license plate funding, which is collected from license plate registration, and TRPA collects a good portion of its money from that fund in California. He said it is a little different from the smog-check fees, however.

Mr. Wells said this decision would fund costs incurred automatically through merit step increases and increases in Medicare, workmen’s compensation, and so forth.

Mrs. Chowning asked the amount of revenue so far from the Lake Tahoe special plates. Mr. Wells said he would provide that information. Mrs. Chowning added that many Clark County residents have those plates on their cars too.

Senator Neal asked how the agency views its role in case there is deadlock and the various groups are not able to reach a decision. He added that it seems TRPA is the "big dog on the block." Mr. Wells said the agency takes a partnership approach and a consensus approach to the problem. He said the entities have not reached loggerheads yet on any issue to require making that kind of call. So far there is no indication of anybody even approaching that point, he stated. Everyone seems to be very cooperative. Mr. Wells said the funding levels seem to be increasing. He added the biggest challenge ahead is keeping everyone working as a team and having enough staff to move projects forward and get the projects done.

Ms. Giunchigliani said the policy decision the committee needs to make with these two budgets is the funding mechanism. She said she does not have a problem with using the DMV Motor Vehicle Pollution Control funding and said that with the budget constraints Nevada has, it makes sense. She said people had argued at one

point that it shifts money from Clark County. But Lake Tahoe is a state treasure, not something that just belongs to northern or rural Nevada, she remarked. She also said that since the money has not been used, Nevada might as well put it to use as best as it can. She said that is the bottom line. She added she has not received any complaints or calls about that funding, and her only concern was that the pollution control money may not keep pace with the need for this. She asked whether there is a mechanism in the budget for TRPA to return for supplemental funding. Senator Jacobsen said that in the past the door has always been open for TRPA to come back to IFC and requested LCB staff verify that it will continue to be a possibility.

Mr. Wells concluded his testimony by informing the committee there is a BDR moving its way through the process allowing local and state government to assist in the enforcement of motorized watercraft ordinances at Lake Tahoe.

Nevada Tahoe Regional Planning Agency – Budget Page CNR-140 (Volume 3)

Budget Account 101-4166

Ms. Wilcox indicated that, in addition to being the administrator of state lands, she is the executive officer for the NTRPA, which has jurisdiction to implement the provisions of the Tahoe Regional Planning Compact regarding structures, housing, and gaming. She said this budget includes two maintenance decision units.

Ms. Wilcox said this decision unit adds $506 to the $496 base to allow for four meetings a year. In the base year NTRPA only met twice.

Ms. Wilcox said this decision unit adds $2,718 each year in case NTRPA has controversial issues the agency must handle in meetings that would be separate from TRPA. She said that, normally, TRPA picks up the travel expenditures of the members of the board.

Ms. Wilcox said this budget is also proposed to be funded from the DMV Motor Vehicle Pollution Control account.

Senator Jacobsen indicated it is evident there will have to be a special meeting to take public input on the budgets heard today.

The meeting was adjourned at 11 a.m.

RESPECTFULLY SUBMITTED:

Jean Laird,

Committee Secretary

APPROVED BY:

Senator Lawrence E. Jacobsen, Chairman

DATE:

Assemblywoman Chris Giunchigliani, Chairman

DATE: