MINUTES OF THE meeting

of the

ASSEMBLY Committee on Government Affairs

 

Seventy-First Session

May 3, 2001

 

 

The Committee on Government Affairswas called to order at 8:08 a.m., on Thursday, May 3, 2001.  Chairman Douglas Bache presided in Room 3143 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Agenda.  Exhibit B is the Guest List.  All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

 

 

COMMITTEE MEMBERS PRESENT:

 

Mr.                     Douglas Bache, Chairman

Mr.                     John J. Lee, Vice Chairman

Ms.                     Merle Berman

Mr.                     David Brown

Mrs.                     Dawn Gibbons

Mr.                     David Humke

Mr.                     Harry Mortenson

Mr.                     Roy Neighbors

Mr.                     Bob Price

Mrs.                     Debbie Smith

Ms.                     Kathy Von Tobel

Mr.                     Wendell Williams

 

COMMITTEE MEMBERS EXCUSED:

 

Mrs.                     Vivian Freeman

Ms.                     Bonnie Parnell

 

GUEST LEGISLATORS PRESENT:

 

Senator William J. Raggio, Washoe District No. 3

Senator Randolph J. Townsend, Washoe District No. 4

 

STAFF MEMBERS PRESENT:

 

Eileen O’Grady, Committee Counsel

Dave Ziegler, Committee Policy Analyst

Glenda Jacques, Committee Secretary

 

OTHERS PRESENT:

 

Dave Howard, Lobbyist, Reno-Sparks Chamber of Commerce

Steve Teshara, Executive Director, Lake Tahoe Gaming Alliance

Daryl Drake, Citizen, Truckee Meadows

Mary Walker, Lobbyist, Carson City, Douglas and Lyon County

Tom Gribbin, Citizen, Reno

Phil Miller, Citizen, Reno

Michael Houghton, President, Reno Air Racing Association

Keith Lee, Lobbyist, Southwest Airlines

Peg O’Malley, Citizen, South Hills Neighborhood

Robert Barengo, Lobbyist, Reno-Sparks Visitor Convention Authority

Jackie Decker, Citizen, Rewana Farms

John Moore, Airport Authority Board, City of Sparks

Neena Laxalt, Lobbyist, City of Sparks

Judith Snell, Citizen, Reno

Larry Martin, Citizen, Reno

Jay Dilworth, Judge, Reno Municipal Court

Mary Henderson, Lobbyist, Reno

John Sande, Lobbyist, Howard Hughes Properties

 

 

Senate Bill 299:  Makes various changes relating to Airport Authority of Washoe County. (BDR S-759)

 

Senator William J. Raggio, Washoe District No. 3, said S.B. 299 concerned the Washoe County Airport Authority Board.  Originally, the Reno airport had been operated by the city of Reno.  A nationwide study of airport operations revealed airports should be operated as a business and the best method of management was an appointed airport authority.  The Washoe County Airport Authority was created in 1977.  The first board consisted of seven members from Reno, Sparks and Washoe County.  An additional member was later added and proved problematic with tie votes.

 

S.B. 299 would recognize the airport as a regional airport and would increase the board to nine members.  The additional member would be appointed by the County Fair and Recreation Board of Washoe County.  The bill outlined guidelines for appointed board trustees.  Appointees should have business or aviation backgrounds and service would be limited to two terms.  Members could not be removed by exercising independent judgment.  Because the airport operated on generated revenue, Senator Raggio explained, the bill was an attempt to run the airport in a business-like manner.  The bill also adopted guidelines for appointees and eliminated tie votes.

 

Mrs. Gibbons felt the airport authority board needed to have an understanding of open meeting laws.

 

Senator Raggio explained the airport authority meetings were subject to open meeting laws.  He introduced two editorials that said the airport was a business (Exhibit C and Exhibit D).

 

Senator Randolph J. Townsend, Washoe District No. 4, explained the bill addressed airport problems.  Every gaming and nongaming business was affected by “air access.”  The defining portions of the bill helped operate the airport in a business-like manner.  The Columbus, Ohio, airport authority board had worked with the community and increased their airport traffic five-fold.

 

Mr. Lee asked if airport concessionaires could nominate a member to the board.  Senator Townsend explained the bill did not change the nominating process.  The new language addressed experience in aviation, business, tourism, financing, accounting, or other qualifications the appointing entity determined were necessary and appropriate for carrying out the duties of the board.

 

Ms. Von Tobel noted the Senate had voted the bill out unanimously with one abstention.  Senator Townsend replied Senator Matthews had abstained because she owned an airport concession.

 

Mr. Humke supported the bill because of economic reasons but felt airport noise impacted his district adversely. 

 

Senator Townsend replied all elected officials wrestled with those types of issues.  S.B. 299 did not affect how the appointing authority chose their members.  Section 1, subsection 3, allowed local jurisdictions to choose anyone they wanted to serve on the board.  The bill did not tell the appointing authority whom to appoint. 

 

Mrs. Smith said her constituents felt the airport authority would change and there would be no accountability.  Senator Townsend reiterated there was nothing in the bill that changed the appointing authority’s ability to screen or analyze future appointees.  The guidelines concentrated on gaming, residential and business concerns of the community.

 

Mrs. Smith questioned why the Convention and Visitors Authority had been chosen as an entity to appoint a board member.  Senator Townsend replied the Convention and Visitors Authority was chosen to not be preferential to other appointing authorities.  Conventions impacted airport business tremendously.

 

Mr. Price questioned who was on the Fair and Recreation Board.

 

Senator Townsend explained it was the Reno-Sparks Visitors Convention Authority (RSVCA) and consisted of elected officials and business and gaming representatives.  The RSVCA consisted of two members of the Washoe County Commission, two members of the governing body of Reno, one member from the governing body of Sparks, and seven members appointed from the business community.

 

Mr. Price commented both groups were public bodies and would be covered under open meeting laws.

 

Mrs. Smith questioned if the RSVCA could appoint one of their members to the airport authority board.  Senator Townsend replied affirmatively.

 

Mrs. Gibbons questioned the make up of the Airport Authority Board.  Senator Townsend referred to Section 1, subsection 2(a), which said four members were from Reno, two were from Sparks and two were from Washoe County.

 

Dave Howard, Lobbyist, Reno-Sparks Chamber of Commerce, felt the concerns about adding an additional board member were unfounded and would not change the concept of the board.  The RSVCA had flexibility to appoint whom they wanted.  The Chamber of Commerce supported the bill because it would make the airport a stronger business entity.

 

Mr. Humke said the recent battle over the postal hub at the Reno Airport had caused his constituents great concern.  Many residents felt the Airport Authority Board did not take their concerns seriously.

 

Mr. Howard empathized with elected officials balancing the needs of the community and concerns of constituents, S.B. 299 was not a threat to the community or business entities.

 

Mr. Humke stated he was interested in the welfare of the business community and the regional impact of the airport.  The airport was one of the engines of economic stability.

 

Mrs. Gibbons felt a provision should state the RSVCA-appointed member could not be the chairman.  She felt they needed to be aware of their public role.

 

Mr. Howard did not know if an amendment could be drafted in the remaining time frame of the session.  He felt an orientation process could address the issue.  Mrs. Gibbons replied affirmatively.

 

Chairman Bache commented Mr. Price’s bill, A.B. 479, had been amended to include $50,000 funding for open meeting law training.

 

Mrs. Smith was concerned the RSVCA appointee would only serve business interests.

 

Mr. Howard replied it was difficult to find qualified people who wanted to serve on appointed boards.  An application period would be followed by a review process that allowed the RSVCA to determine the best possible candidate.  It would be difficult to appoint one of their members to the airport authority board because of the tremendous time and responsibility involved.

 

Mr. Price commented elected officials had obligations to the people they served and hired employees were obligated to their employer.  He felt the chairman should be an elected official. 

 

Steve Teshara, Executive Director, Lake Tahoe Gaming Alliance, represented gaming and tourism in Douglas County and strongly supported S.B. 299.  The Lake Tahoe Gaming Alliance started a luxury motor coach service in 1991.  The service had operated successfully and recently reached the one million passenger mark.  Their investment had helped make the Reno/Lake Tahoe Airport international.  Their economic success depended upon the success of the airport operating as a regional facility.  They felt board members outside of Washoe could address regional concerns.

 

Daryl Drake, Citizen, Truckee Meadows, was a retired commercial and private pilot.  He had organized conferences in Northern Nevada to address the impact of Indian gaming on Nevada.  Gaming and tax revenues had reflected a decrease.  The airport was as important to northern Nevada’s economy as other multi-jurisdictional facilities, such as Interstate 80, U.S. 395, and the transcontinental railroad.  The utility, function and benefit of the airport transcended local politics.  The board must be sensitive to the needs of the community because the airport had a $4 billion effect on the community.  Any appointed member must be allowed to exercise their judgment freely.

 

Mary Walker, Lobbyist, Carson City, Douglas and Lyon County, supported S.B. 299 and the recognition the Reno/Tahoe International Airport was regional.  They encouraged the RSVCA to appoint a regional member.

 

Mr. Humke asked Mr. Drake if he had wanted to formally propose his suggested amendment that the ninth member must reside outside of Washoe County.  Mr. Drake stated they had discussed the issue but were comfortable with the bill’s current language.

 

Tom Gribbin, Citizen, Reno, stated the Airport Authority Board had taken no position on the bill.  He felt the ninth member was important to break ties or stalemates.  A recent Deloitte & Touche report cited the board with over 100 infractions.  A major concern was the board’s relationship to the public.  A new executive director was hired and had brought the board into the communication realm.  A citizens’ outreach committee was formed that contained 12 members of Washoe County and held public, monthly meetings.  In-house counsel was hired to assist the board.  The Airport Noise Advisory Panel met quarterly to address airport noise issues and consisted of appointed citizens from Washoe County, Reno and Sparks.  Currently, 35 people were involved with the noise-monitoring element of the master plan.  Over $150,000 had been spent to involve the public.  The board wanted public participation and was reaching out to the community.  If the board did not vote how residents wanted it did not mean the board was not listening.  The board had a responsibility to the region and the community to review all facts presented.

 

Phil Miller, Citizen, Reno, was a member of the Airport Authority Board and supported S.B. 299.  The airport had regional economic impacts and was sensitive to citizen comments and the safety of passengers and visitors.  Many hours were spent listening to citizen concerns related to the airport postal hub.

 

Michael Houghton, President, Reno Air Racing Association, was the newest appointee to the board.  He felt the bill addressed important guidelines for appointees.  The airport authority was unified in their perspective to represent business and citizens in general.

 

Mrs. Gibbons asked if the Airport Authority Board had a seat on the Air Race Board.  Mr. Houghton responded affirmatively.

 

Mr. Price questioned the possibility of moving the Reno airport to the Stead air force base.  Mr. Gribbin responded they had considered that.  It had been problematic because Stead was 500 feet higher and located in a deep basin. 

 

Mrs. Smith was concerned when board members spoke as individuals because distinguishing between “hats” was difficult.

 

Mr. Mortenson asked what the major differences were between the Reno Airport Authority and the McCarran Airport.  Mr. Gribbin replied the board in Las Vegas was made up of County Commissioners.

 

Chairman Bache stated McCarran was a county airport and entirely run by the county.

 

Keith Lee, Lobbyist, Southwest Airlines, stated they generally did not get involved in local, political issues but they supported S.B. 299 for two specific reasons.  It was good policy to have an odd-numbered board and the bill recognized the regional nature of the airport and its impact on the community.

 

Mrs. Gibbons asked whether legislation should be drafted to ensure one of the board members come from outside Washoe County.  Mr. Lee felt it was better to leave the decision open.  At this time Lake Tahoe and Incline Village were key drivers in the usage of the airport, but that could change in the future.  The potential growth of the Truckee Meadows corridor could result in the area being a future driver.  Faith should be put in the RSVCA to recognize the competing interests and to appoint someone who would represent those interests.

 

Peg O’Malley, Citizen, South Hills Neighborhood, opposed S.B. 299.  Her community was under the airport pathway and they supported the airport’s attempt to increase business and flights.  Her neighborhood’s concerns about the proposed postal hub had been ignored even though their elected official listened to them and intervened on their behalf.  If the airport authority was not held accountable for their actions, the citizens would have no power.  A ninth member from the business community would give the board a trump card.  Any tie vote could be broken if the chairman abstained.  A businessperson would support the business community’s needs.  Elected officials were the only recourse citizens had.  She felt elected officials outside of Reno should not vote on Reno issues.

 

Robert Barengo, Lobbyist, Reno-Sparks Visitor Convention Authority, had not taken a position on the bill.

 

Jackie Decker, Citizen, Rewana Farms, felt if you were not “pro” airport the board totally ignored you.  Her neighborhood had been condemned and ripped apart by the blight because of noise abatement.  Airport authorities were going to elected boards because of abuse of power and money.  Airports received millions of dollars of federal money and were public entities with public responsibilities.  Any expansion affected noise, pollution and the environment of the community.  The bill removed the airport authority from all accountability.  Reno and Sparks were against the bill but would not take a position against Senator Raggio.  Local governments had lost their ability to remove bad trustees.  The airport authority was a figurehead because Senator Raggio and his staff ran the airport.  Any board with condemnation powers and great financial responsibility should be elected.

 

Mr. Price questioned what cities had opposed the bill.  Ms. Decker replied Sparks and Washoe County had taken a position of opposition to the bill.  The city of Reno had one abstain, three in favor, and three “no position.”

 

John Moore, Airport Authority Board, City of Sparks, stated the city of Sparks had not taken a position on the bill.

 

Neena Laxalt, Lobbyist, City of Sparks, said the city had concerns about the limited authority to remove board members who got out of hand.

 

Mr. Price asked Mr. Moore what Sparks’ position was on S.B. 299.  Mr. Moore replied members of the city council had concerns about the bill but had not taken an official position.

 

Judith Snell, Citizen, Reno, had attended Reno City Council meetings and felt the Reno City Council and Mayor were politically “blackmailed” by Senator Raggio.  The bill removed citizens’ involvement from actions taken by the airport board.  The Airport Authority Board had provisions in the bylaws for tie votes.  Elected officials had the authority to hold board members accountable.

 

Larry Martin, Citizen, Reno, was a member of the Washoe County Airport Authority Board.  He felt the airport board should be held accountable for their decisions.  He felt the ninth member should not be the chairman.  The airport authority had no control over economic issues and federal aviation regulations.

 

Chairman Bache closed the hearing on S.B. 299 and opened the hearing on S.B. 304.

 

 

Senate Bill 304:  Amends charter of City of Reno by increasing term of office of municipal judges. (BDR S-870)

 

Jay Dilworth, Judge, Reno Municipal Court, stated NRS 5.020 allowed cities to determine the term of municipal judges.  Reno increased their term limits to six years on November 21, 2000.  Nevada had 150 judges and all but 19 served six-year terms.

 

Mary Henderson, Lobbyist, Reno, stated the Reno City Council supported the bill unanimously.  The Nevada Judges Association also supported the bill.

 

ASSEMBLYMAN HUMKE MADE A MOTION TO DO PASS S.B. 304.

 

ASSEMBLYMAN NEIGHBORS SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY BY THOSE PRESENT.

 

Chairman Bache opened the hearing on S.B. 350.

 

Senate Bill 350:  Increases membership of county fair and recreation board in certain counties. (BDR 20-685)

 

Mr. Barengo stated the RSVCA had sponsored the bill because of the passage of S.B. 477 of the Seventieth Session.  The bill raised the tax on rental, transient lodging in Washoe County and allowed the Incline Village and Crystal Bay visitor’s center to receive a percentage of the money collected in their area.  The RSVCA felt an additional voting member should be added to the board from that area.

 

Ms. Von Tobel commented Clark County had added a member to their board last session.  Chairman Bache remembered the adding of additional members and closed the hearing on S.B. 350.

 

ASSEMBLYMAN NEIGHBORS MADE A MOTION TO DO PASS S.B. 350.

 

ASSEMBLYWOMAN VON TOBEL SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY BY THOSE PRESENT.

 

Chairman Bache opened the hearing on S.B. 470.

 

Senate Bill 470:  Makes various changes relating to bonds issued by local government for local improvements. (BDR 21-1155)

 

John Sande, Lobbyist, Howard Hughes Properties, Inc., stated the bill cleaned up special assessment districts and the issuance of variable-rate bonds.  Payment plans were outlined and out-dated language was removed.  He stated there had been no opposition to the bill on the Senate side.

 

Chairman Bache closed the hearing on S.B. 470.

ASSEMBLYMAN NEIGHBORS MADE A MOTION TO DO PASS S.B. 470.

 

ASSEMBLYMAN MORTENSON SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY BY THOSE PRESENT.

 

Seeing no further business, Chairman Bache adjourned the meeting at 10:35 a.m.

 

 

RESPECTFULLY SUBMITTED:

 

 

 

Glenda Jacques

Committee Secretary

 

 

APPROVED BY:

 

 

 

                       

Assemblyman Douglas Bache, Chairman

 

 

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