The joint meeting of Senate Committee on Government Affairs and Assembly Committee on Government Affairs was called to order by Chairman Ann O'Connell, at 3:40 p.m., on Thursday, February 25, 1999, in Room 1214 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 Ann O'Connell, Chairman

Senator William R. O’Donnell

Senator Jon C. Porter

Senator Joseph M. Neal, Jr.

Senator Dina Titus

Senator Terry Care

ASSEMBLY COMMITTEE MEMBERS PRESENT:

Mr. Douglas A. Bache, Chairman

Mr. John J. Lee, Vice Chairman

Mr. David E. Humke

Mr. Harry Mortenson

Ms. Gene Wines Segerblom

Mr. Kelly Thomas

Ms. Sandra J. Tiffany

Mr. Wendell P. Williams

Ms. Kathy A. Von Tobel

Senator William J. Raggio, Vice Chairman

Ms. Merle A. Berman

Ms. Vivian L. Freeman

Mrs. Dawn Gibbons

Mr. P.M. "Roy" Neighbors

Ms. Bonnie Parnell

STAFF MEMBERS PRESENT:

Crystal Suess, Committee Secretary

OTHERS PRESENT:

Lorraine T. Hunt, Lieutenant Governor

Chairman O’Connell indicated the meeting would commence as a subcommittee. She maintained the first order of business would be a presentation on the accomplishments of the Southern Nevada Strategic Planning Authority (SNSPA).

Elizabeth (Betsy) N. Fretwell, Lobbyist, City of Henderson, expressed her intent to start the SNSPA’s presentation.

Elizabeth (Betsy) N. Fretwell, Lobbyist, City of Henderson, spoke regarding the contents of the presentation by the SNSPA. The SNSPA worked for approximately 16 months to accomplish the goals relating to this presentation.

Lorraine T. Hunt, Lieutenant Governor, explained there were thousands of work hours resulting in the final outline of the SNSPA which was created by Senate Bill (S.B.) 383 of the Sixty-ninth Session, sponsored by Senator Jon Porter, and established a 21-member panel to discuss and address the issue of growth in the Las Vegas Valley.

SENATE BILL 383 OF THE SIXTY-NINTH SESSION: Establishes Southern Nevada Strategic Planning Authority. (BDR S-506)

Mrs. Hunt stated she had served as a member of the SNSPA and participated to achieve the objectives as mandated by S.B. 383 of the Sixty-ninth Session. Mrs. Hunt gave a summation on the history of the Las Vegas Strip and noted that today it was the fastest growing metropolitan area in the state and in America, making southern Nevada the envy of the world. Along with the growth came new complications; poor air quality, traffic congestion, school- overcrowding and other growing pains of a community on the move. Mrs. Hunt went on to reference then Clark County Commissioner, Jay Bingham, in 1993 had initiated a "government efficiency" committee between Clark County (The Las Vegas Strip) and the city of Las Vegas (Fremont Street) to discuss regional cooperation and solutions to the area’s growing pains.

Mrs. Hunt further testified in 1995 she was elected to the Board of Commissioners, Clark County, and she was also appointed to the Government Efficiency Committee. The Government Efficiency Committee had been expanded to include all of the cities in Clark County; Las Vegas, North Las Vegas, Henderson, Boulder City and Mesquite, however Mesquite chose not to participate. The purpose of the committee was to bring together all affected jurisdictions, with respect to discuss and find solutions for our regional challenges of growth. The Government Efficiency Committee realized southern Nevada had experienced an unparalleled period of accelerated growth, which prompted S.B. 383 of the Sixty-ninth Session, mandating a long-range strategic plan for growth. Mrs. Hunt encouraged any interested parties to review the entire strategic plan (Exhibit C). Also part of the strategic plan are Exhibit D, Exhibit E and Exhibit F. Originals on file at the Research Library.

Lynette Boggs McDonald, Ethnic Minority Representative, Southern Nevada Strategic Planning Authority, spoke on behalf of the citizen perspective. Ms. Boggs McDonald stated citizen participation was not mandated by S.B. 383 of the Sixty-ninth Session, but it was just good common sense to seek out input from the community. Ms. Boggs McDonald added the SNSPA sent out thousands of questionnaires to citizens trying to elicit the thoughts and ideas of the general public. The meetings of the SNSPA were open to public comment, criticisms, and ideas to help with the plan.

Tito Tiberti, Taxpayers Representative, Southern Nevada Strategic Planning Authority, talked of the benefits of owning a business in Nevada, noting that companies do not always relocate because of tax benefits, but because of the quality of life offered in southern Nevada.

James B. Gibson, Mayor, City of Henderson, stated he was born in Las Vegas, and watched it grow in ways never imaginable. Mayor Gibson iterated the accomplishments of the SNSPA have been the product of much effort which reflects the accomplishment. The SNSPA has identified and evaluated Clark County’s needs relating to growth, determined if there were significant means to meet growth needs, prioritized objectives and strategies relating to growth, and recommended growth strategies to the 1999 Nevada State Legislature. The strategic plan is a guideline to address the challenges of growth in southern Nevada over the next 20 years.

Senator O’Connell questioned if there was a projection concerning revenue which would be established so the plan would generate enough funds to pay for itself.

Mayor Gibson told the committee all parties were consulted and revenue strengths were discussed; then a detailed exercise commenced. The exercise included what funds were available, finding new revenue through taxation and any available source of revenue. He stated it is the belief of the SNSPA that in the long term, the plan will and can pay for itself.

Senator Neal questioned whether the plan is paying for itself now, or if that would be an end result.

Mayor Gibson answered the SNSPA was not certain if the plan has always paid for itself, the belief would be by incorporating into the policies of each of the jurisdictions of southern Nevada the principal plan can pay for itself. Mayor Gibson further stated the economy and economic development is vulnerable to a downturn, due to the fact that 50 percent of all jobs are related to gaming and hospitality, another 10 percent are construction-related and 60 percent of those jobs rely on 2 industries.

Senator O’Connell asked Mayor Gibson to please tell about the new state college, stating that it is her understanding the new college will be a teacher’s college.

Mayor Gibson stated the proposal was due in part to a three-tier approach to higher education in Nevada that would increase access to the limited number of seats available. The focus is on programs that may not be as well suited for the universities. One of the central plights that has been discussed and urged is the Board of Regents consider establishing a teachers academy as a centerpiece to the state college. The Board of Regents considered a proposal that would make The University of Nevada, Reno (UNR), and The University of Nevada Las Vegas (UNLV), research institutions. This would stop all undergraduate programs at the universities. The state college proposal makes good sense, and the City of Henderson has the means to help.

Ruth Johnson, Citizen Representative, North Las Vegas, clearly pointed out that although S.B. 383 of the Sixty-ninth Session had not included education, the membership of the SNSPA embraced the vision of what education should be in the years to come. She pointed out SNSPA appreciates the work of the sixty-ninth session of the Legislature that put funds in place to build schools; however the 1998 bond was a 10-year fund, so the last 10 years of funding still needs to be addressed. Ms. Johnson pointed out it is the consensus of SNSPA in the next 20 years Nevada will have to add 166 more schools, translating out to 1 new school every 44 days. Along with the new schools there will also be a demand for 14,500 more teachers. She stated it is the goal of the SNSPA to try to educate the needed teachers for quality-in-education standards. The SNSPA believes they can influence the quality of teachers if they are educated in the State of Nevada. Mrs. Johnson also stated that Nevada has the third-lowest per capita student expenditure. The SNSPA found that when funding across the nation was compared, Nevada was lower than expected.

Senator O’Connell asked when comparing those figures, if it was the goal of the SNSPA to compare "apples to apples."

Ms. Johnson responded the SNSPA looked at those figures and compared the way taxes were structured in each state and what kind of funding provided for education, thus comparing "apples to apples." Ms. Johnson continued by saying the strategic part of the SNSPA’s plan includes identifying and implementing capital-funding sources for the 10- to 20-year program as well as funding programs to improve education, not just K through 12 but higher education as well.

Jeff van Ee, Environmental Representative, Southern Nevada Strategic Planning Authority, drew attention to the fact the quality of life in Las Vegas since it has grown so rapidly has affected the environment. Mr. van Ee further pointed out that the air quality, water quality, waste water, water supply, and flood control have been directly affected by the growth. According to the Southern Nevada Water Authority (SNWA) the projection for water distribution is considered good over the next 20 years. Additional water supplies are coming from the Colorado River and adjoining states. The area of most concern is air quality, an issue on which there needs to be a focus. Clark County is considered a serious non-attainment area for both carbon monoxide and particulate matter (dust). The SNSPA realizes if southern Nevada does not meet federal air-quality standards by the end of the year 2000, Nevada could be imposed with sanctions which could seriously impact the growth of the state.

Senator O’Connell inquired if the federal air quality had ever established a definition of particulate matter, considering the fact that Nevada is a desert.

Mr. van Ee replied being in the desert is a complicating factor. There are a hundred other cities in the west that are in inherent climates or desert environments which do not have the problems Las Vegas is facing. Steps have been taken to address the problem with disturbed vacant land which is a primary contributor to some particulates, but certainly automobile and diesel vehicles also contribute to the measurable amount of particulates in the air. Some of the other programs the SNSPA looked to implement were the promotion of energy conservation, endangered species and habitats, and better recycling efforts in southern Nevada.

Mr. Van Ee defined the strategies of the SNSPA for the improvement of environmental planning and coordination between agencies, developing a plan for the management of the Las Vegas Wash, and implementing a smog-check program and penalties to be retained for air-pollution control. One of the concerns of the SNSPA is directly related to the rapid growth of the Las Vegas Valley, which puts a great strain on the Las Vegas Wash; in addition, Lake Mead receives urban runoff, storm water runoff, groundwater seepage, and increasing flows of treated wastewater. Mr. van Ee pointed out it is believed that Clark County will need an additional capacity of 91 million gallons per day by the year 2018. In regards to the water supply and distribution, the SNWA has obtained enough permanent water to meet the needs through the year 2018. He said Clark County will seek alternative water supplies along with looking at the issue of capturing excess water, treating it and reusing it. The City of Henderson has a treatment plant for the reuse of wastewater, which the SNSPA feels could be the next step for the water that escapes use through the Las Vegas Wash and into Lake Mead. Mr. van Ee stated the efforts to implement a master plan for flood control has forced the SNSPA to look at the proposed "build out" of the flood control structures; unfortunately, under the "pay-as-you-go system" these structures are not being built fast enough. He said the figures show only 47 percent of the flood control master plan will be implemented by the year 2008, and only 78 percent by the year 2018. The SNSPA is looking to leverage $150 million in bonds to expedite the implementation of the flood control master plan.

Mr. van Ee emphasized the importance of coordinating opportunities for multiple uses of the flood control facilities and to create local plans that provide benefits to those areas not covered by the regional facilities.

Senator Neal asked for clarification of where the water from the tributaries and streams ends up. Mr. van Ee reiterated all of those tributaries and streams flow directly into Lake Mead. Senator Neal inquired if the money being proposed will be for building more retention basins. He understood that sometimes the streams and tributaries can be overwhelmed. Mr. van Ee asserted the retention basins will continue to be built as they have been planned.

Senator Neal expressed his concern of the anticipated objective that is to be met by flood control. Mr. van Ee asserted the objective of the SNSPA was to protect property and to stop the erosion of the Las Vegas Wash. The plan would slow down the water before it reaches the Las Vegas Wash, thereby slowing the erosion problem and keeping tons of sediment out of Lake Mead and surrounding waterways.

Mr. Mortenson queried if Clark County was not gaining an allowance for the runoff water that was running back into Lake Mead, if it is a priority of the SNSPA to capture and reuse this water. Mr. van Ee maintained facilities would be built to retain that water and reuse water in such places as golf courses. In the case of the Las Vegas Wash, there have been proposals on intercepting the flood waters, holding them in that area and use the flood waters to establish a bird habitat over the next few years. The water can be used in constructive ways if it is retained in the Las Vegas Valley instead of going all the way to Lake Mead.

Courtney Alexander, American Federation of Labor-Congress of Industrial Organizations, Union Representative, Southern Nevada Strategic Planning Authority, explained the SNSPA projects a population growth over the next 20 years from the present 1.3 million to 2.3 million people. One of the keys to maintaining a vibrant southern Nevada economy is to provide a range of housing opportunities which are affordable. She stated the strategic plan sets forth a variety of land-use proposals, including a regional agency to allow local entities to collaborate on mutual issues without infringing on the autonomy of communities, standardize zoning codes and development standards, and offer a diversity of housing types and price ranges. The SNSPA has also looked at a variety of growth-related issues like parks and recreation, fire, medical, hazardous material emergencies, and law enforcement.

Ms. Alexander said the SNSPA feels the need for parks has not been met, the projections the SNSPA made revealed the need for 3800 to 5100 acres of parks developed over the next 20 years, pointing out southern Nevada is way below the standard which is 10 acres per 1000 people. The SNSPA committee felt the standard was unrealistic and settled on 2.5 acres per every 1000 residents. The SNSPA felt a new strategy was warranted and agreed on the need to establish a bonded revenue source to accelerate park construction and create a regional trails master plan.

Ms. Alexander further explained as the population increases, the demand on public-safety organizations also increases. The need to seek funding for public- safety organizations is already on the rise. This funding could come from voter- approved bonds promoting public safety and general fund expenditures. The biggest issue that comes with growth is transportation, she averred. In 1990 an average vehicle trip took 16 minutes; in 1996 that same trip took 34 minutes. Future growth will impact "peak-hour" drive times. The SNSPA feels that action taken now will improve regional transportation, with the help of short- term financing to fund highway and street construction in the early years of the 10-year capital-improvement fund. Mass Transit could be a serious way out in the way of pollution and drive-time delays.

Mr. Mortenson asked why the committee had decided to make the standard for parks in southern Nevada 2.5 acres per 1000, when the national average is 10 acres per 1000.

Ms. Alexander clarified the SNSPA looked at the need for programmable park space; the 2.5 acres realizes a standard for programmable park space, in some areas there is only 1 acre per 1000. The SNSPA wanted to set a realizable goal. The focus on the park space was established for the needs of softball, soccer and other team-related sports.

Mr. Mortenson questioned if there was a national standard for programmable park space. Ms. Alexander responded the SNSPA did not find any information in the national standards which were provided to the assessment committee. What the SNSPA looked toward was the standard set by the City of Henderson which just meets the programmable park space of 2.5 acres per 1000.

Senator Titus remarked some of the contractors said that if they were paid more timely they could speed up capital projects, and asked if the SNSPA has run into this problem. Ms. Alexander stated that she thought there was a potential need from an agency perspective to fund projects before all of the funding was available sitting in the bank. There were a number of recommendations that would help speed the process.

Senator Titus questioned if strategies pertaining to growth were urban growth, consistency policy and concurrency discussed. Ms. Alexander explained the SNSPA did not get into detail on specific growth-boundary proposals.

Ms. Tiffany inquired if the committee had considered using schools for parks.

Ms. Alexander responded all avenues were considered.

Ms. Tiffany queried about the types of revenue sources recommended for the bonds. Ms. Alexander replied the SNSPA did not have a specific proposal for recommendation of the bond issue, but it would be addressed by the SNSPA before implementation. The goal is to have bonds that are stable, but the process was not previously addressed.

Mayor Gibson averred the SNSPA looked at voter-approved financing; for instance, in 1997 the City of Henderson approved a $54 million bond to build 28 new parks in the city. Some of that money came from property taxes.

Ms. Fretwell iterated there are some dedicated funds for neighborhood or residential parks. Those do not fall into the category of the programmable parks space definition. Under the public safety infrastructure and donations for service provision, that would be a top priority in general fund allocations and in voter-approved funds for capital improvement. It is believed that parks fall into that general category.

Donald Clark, Citizen Representative, Clark County, emphasized the importance of health care in order to have a healthy state economy. Nevada is the fastest growing state with the lowest amount of unemployment and yet people still do not have health insurance. He pointed out in this country health care is not socialized medicine; therefore in this country medicine is primarily run by the private sector. In 1997 Nevada had 159 physicians per every 100,000 people, well below the national average of 268 per 100,000. In 1996, he stressed, Nevada had 225 hospital beds per 100,000, also below the national average of 325 beds per 100,000. Nevada ranks 50^th nationwide in the number of dentists. The population that has moved into Nevada has brought with it the financial means to support the health care system. One in every five residents is over 55 years of age, which increases the demand for nursing homes and long-term care facilities but 20 percent of all southern Nevada residents are underinsured. The SNSPA worked hard to come up with the strategy of feeding the supply and demand of the health care industry. The SNSPA believes the number of health care professionals in southern Nevada needs to increase along with establishing a dental college at UNLV. Mr. Clark said supporting legislation for the Clark County Organized Health Care System to coordinate publicly assisted medical programs would help establish the funding for higher performance standards. The state needs to be encouraged to designate a group responsible for coordinating heath care issues. The answer to meeting southern Nevada’s health care need is a genuine partnership between the public and private sector.

Senator O’Connell explained the Senate has been looking at this very issue and one topic of concern is long-term care. This is a statewide issue and it seems that doctors are moving out of the state because of the poor pay.

Mr. Clark responded there is substantial evidence that doctors are becoming dissatisfied with slow pay and dealing with the amount of it, but with the amount of health care money coming into the state the gap should close.

Bruce Woodbury, Chairman, Board of Commissioners, Clark County, maintained it was very important to take a comprehensive look at the most critical issues and key strategies identified in the strategic plan. The highest priorities of the SNSPA are governance, finance and legislation. He stated the SNSPA has requested five bill draft requests (BDRs) to allow local government to effectively implement the strategic plan.

Mr. Woodbury pointed out BDR 40-54 proposes a bill that addresses urban haze and other air-quality concerns and proposes a draft resolution on improving air quality in southern Nevada. BDR S-50 establishes a committee to address economic development and diversification issues to stimulate development, evaluate incentives, and recommend incentive programs that will increase Nevada’s competitive advantage while not eroding the tax base. He stated BDR 31-51 creates a community bond bank, proposes bonds be sold in synchronization with capital construction projects, and proposes that capital improvement plans be standardized. BDR 28-52 would allow the SNSPA to collaborate with public and private agencies on design-build legislation to be introduced in the 1999 session and proposes legislation that would make design-build idea available as another tool to assist local governments with large public works projects in southern Nevada. The SNSPA has realized the funding is in place for most of the changes that will come about for the plan to be implemented. The SNSPA’s accomplishment is a historic first for the state and its leaders to produce a comprehensive growth strategy for southern Nevada for the next 20 years.

Senator Neal asked since bonding seems to be finance marketed if it would be safe to say there was a lot of participation of gaming in this project. Mr. Woodbury responded the gaming industry pays a great deal; including room tax, transportation tax, sales tax and property tax.

Mayor Gibson clarified the SNSPA is positive of the steps being taken; there are many challenges. The goal is to build livable communities for the twenty-first century, to ease traffic congestion, and to have a clean water supply and clean air.

Senator Porter concluded the SNSPA had asked the citizens of southern Nevada to look at mountain development, education, the environment, housing, local land use, parks and recreation, growth boundaries, public safety, transportation, water, sewage and sanitation. This was a very difficult process that was concluded in a very short period of time. He stated this process was made of sound solutions but this is still the beginning of the process and there is more work ahead.

Senator O’Connell asked if there was any further questions or comments. Being none the meeting was adjourned at 5:45 p.m.

RESPECTFULLY SUBMITTED:

Crystal Suess,

Committee Secretary

APPROVED BY:

Senator Ann O'Connell, Chairman

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Assemblyman Douglas A. Bache, Chairman

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