MINUTES OF THE MEETING OF THE
JOINT SUBCOMMITTEE ON HIGHER EDUCATION/CAPITAL IMPROVEMENTS
OF THE
SENATE Subcommittee on Finance
AND THE
ASSEMBLY COMMITTEE ON WAYS AND MEANS
Seventy-First Session
May 24, 2001
The Joint Subcommittee on Higher Education/Capital Improvements of the Senate Committee on Finance and the Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry Jr. at 12:30 p.m., on Thursday, May 24, 2001, in Room 3137 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 MEMBERS PRESENT:
Senator William J. Raggio, Chairman
Senator Raymond D. Rawson
Senator Bob Coffin
Senator Bernice Mathews
ASSEMBLY MEMBERS PRESENT:
Mr. Morse Arberry Jr., Chairman
Mr. Joseph E. Dini, Jr.
Ms. Christina R. Giunchigliani
Mr. John W. Marvel
Mr. Richard D. Perkins
ASSEMBLY MEMBERS ABSENT:
Mr. Lynn C. Hettrick
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Rick Combs, Program Analyst
Bob Williston, Committee Secretary
OTHERS PRESENT:
Carol Harter, President, University of Nevada, Las Vegas, University and Community College System of Nevada
Don Hataway, Deputy Director, Budget Division, Department of Administration
Daniel K. O’Brien, Manager, State Public Works Board, Department of Administration
Ward Patrick, Deputy Manager, Professional Services, State Public Works Board, Department of Administration
Rick Combs, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, stated he would go through the items on his work sheet (Exhibit C) that had changed significantly from the amounts that were in the Governor’s recommended capital improvement program (CIP).
Mr. Combs stated in the first project, 01-C1, which is the High Desert State Prison, Phase III, discussions with the Department of Motor Vehicles and Public Safety revealed there was approximately $1.7 million available for the project through the federal government’s Violent Offender Incarceration/Truth in Sentences (VOI/TIS) program.
Mr. Combs added there was another issue discussed in the subcommittee hearing, the need for housing units to be constructed during this biennium and the possibility of deferring construction until the next biennium. He said the Department of Prisons and the Public Works Board indicated that to delay construction would cause prisons to exceed emergency capacity at a number of institutions during that period of time.
Mr. Combs pointed out the staff has not made any adjustment for the housing units at this time. He stated if the costs for the construction of the housing units were removed it would delete about $34.8 million from the project this time, but the construction costs would need to be funded in the next biennium.
Senator Raggio said he thought the case had been made that the housing units were quite essential. He stated he would not want to leave the Department of Prisons “hanging out there” with the need not filled over the coming biennium.
Ms. Giunchigliani stated she had not been part of the discussion during the subcommittee hearing, but it was her understanding that the committee was not going to move forward with the construction of the housing units in Phase III of the High Desert State Prison. She asked whether there was a way to get more information about the need for the additional prison beds.
Gary L. Ghiggeri, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, stated the Department of Prisons and the Department of Administration provided revised population projections about mid-March that resulted in the addition of approximately 125 inmates the first year and 200 the second year. He said that would be more inmates than originally estimated in the Governor’s recommended budget. He stated the population at this point is probably a little unstable, and to defer this construction could cause problems later on.
Ms. Giunchigliani expressed her appreciation for the information. She said it is her thought that “as we build them they will fill them.” She said she is not comfortable about going into Phase III. She stated she understands the issue of reaching capacity, but said there are other things that could be done if that situation occurs rather than funding the construction of additional housing units at this time.
SENATOR RAGGIO MOVED TO APPROVE $47,237,000 IN GENERAL OBLIGATION BONDING AND $1.7 MILLION IN OTHER FUNDING FOR PROJECT 01-C1.
ASSEMBLYMAN MARVEL SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYWOMAN GIUNCHIGLIANI VOTED NO. ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated that in project 01-C2, regarding the Southern Nevada Correctional Center (SNCC), testimony indicated that the facility would be reopened as a facility for male inmates. He said the proposed adjustments will add approximately $4.1 million to the project for a transfer of items related to SNCC that were included in the statewide projects. He explained it would reduce costs to move them into one project and to have them in the same place.
SENATOR RAGGIO MOVED TO APPROVE PROJECT 01-C2 INCLUDING $4,160,424 IN GENERAL OBLIGATION BONDS.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.
* * * * *
Mr. Combs stated project 01-C3 involves purchase and renovation of the Employees Insurance Company of Nevada (EICON) buildings. He said there are two buildings, one in Carson City and one in Las Vegas. He stated the staff was unable to get an appraisal for the Las Vegas building, but an appraisal was made on the building in Carson City. He said the appraisal came in at $3.2 million. He added the project cost estimate was based on an amount that was $440,000 higher than the appraised value.
Mr. Combs stated the staff is recommends that the building in Las Vegas not be purchased and that the Carson City cost be reduced to the appraised amount.
Senator Raggio asked what the total cost would be on the Carson City building, and how the funds would be allocated.
Mr. Combs replied there is one other adjustment recommended. He said the total cost comes to approximately $5.5 million, and some of that, approximately $492,000, is estimated for moving costs, furnishings, and equipment.
Senator Raggio asked whether that was the part on the sheet indicated under the General Fund. Mr. Combs replied that it was and he recommended it be from General Fund revenue.
Senator Raggio stated that he had discussed this project with the Governor, who had proposed this project. The Governor indicated that if the state does not purchase the EICON building he would recommend that the bonding authority he had recommended for that project be used for other projects. He proposed $5 million of that authority for the transitional bridge building at the University of Nevada, Las Vegas (UNLV) dental school, $1 million for advance planning of the future dental school building, and $1 million for the dental residency program at the University of Nevada, Reno (UNR). He stated that would be a $7 million reallocation, and the proposal would include $5,049,000 in general obligation bond proceeds and $492,000 in General Funding for the purchase of the EICON building in Carson City.
SENATOR RAGGIO MOVED TO APPROVE FUNDING FOR THE TRANSITIONAL BRIDGE BUILDING AT THE UNIVERSITY OF NEVADA, LAS VEGAS DENTAL SCHOOL, $1 MILLION FOR THE ADVANCED PLANNING FOR THE DENTAL SCHOOL, $1 MILLION FOR THE DENTAL RESIDENCY PROGRAM AT THE UNIVERSITY OF NEVADA, RENO, AND THE FUNDING FOR THE PURCHASE OF EICON BUILDING IN CARSON CITY.
SENATOR MATHEWS SECONDED THE MOTION.
Ms. Giunchigliani asked whether the cost of the Carson City facility would be $5,049,000 plus $492,000 General Fund, and whether $16 million would no longer be needed. Mr. Combs replied that was correct.
Senator Mathews asked to have the amount repeated for the purchase of the Carson City building. Mr. Combs replied it would amount to a total of approximately $5.5 million.
Ms. Giunchigliani asked whether the total amount would be $12 million if the committee added the funding authorities Senator Raggio included in the motion. Mr. Combs replied the total of Senator Raggio’s proposal would be $7 million, making an overall total of $12.5 million.
Ms. Giunchigliani noted it is strange that when the State Industrial Insurance System (SIIS) was privatized she had argued that those facilities belonged to the state, and now the committee suggests buying back one of the buildings.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C4 is for the new State Motor Pool building on the UNLV campus. He said staff agreed that the amount of $2,867,797 approved by the Governor would be reasonable.
Senator Coffin stated there have been discussions about the State Motor Pool taking away from campus parking space. He pointed out that will amount to a loss of approximately 130 spaces on the campus. He expressed discomfort with this.
Senator Coffin approved of Senator Rawson’s suggestion to use land across Tropicana Avenue from the campus as a place for the motor pool facility, because it would eliminate the parking concern and free up space for another building on the UNLV campus. He said there has also been further discussion on that proposal. He asked Mr. Combs what his investigation on the issue revealed.
Senator Coffin stated in his conversations with airport personnel he was told that UNLV has first right of refusal on that land and can do as it pleases with it.
Mr. Combs replied he was not aware of whether the university has the right of first refusal on that property. He acknowledged he had heard that, but he said he is not at liberty to say. He added he submitted the question to the State Public Works Board and that he had not received an answer from the board.
Senator Coffin asked Senator Rawson whether he had second thoughts on that idea.
Senator Rawson replied he was “shooting from the hip.” He stated it seemed to him there is excess parking land located near the exit from the airport that would be convenient for a motor pool area. He said he would recommend that the committee approve this amount and make the recommendation that the board and UNLV consider other locations for the facility. He stated it should ultimately be the decision of the university where the facility will be placed. He suggested if the location is convenient, and it is a site that has not been investigated, it is a location that could be looked at.
Senator Coffin added in his conversation with the airport manager he learned that the motor pool has until the last quarter of 2003 or the first quarter of 2004 to get off that land. He said this is the same period of time that the rental car companies have to get off that land. He concluded there is sufficient time to finish the rehabilitation on the old Dickerson Library building so the law school can move in, which in turn would leave time for something to be built on that property without even taking down the school building. He stated there is enough room for a motor pool on the grassy portion at the old school.
Senator Coffin stated he did not know what plans the university has, but suggested the university should be aware of the fact the motor pool could be put in the other location. He said the committee could advise the university that it could “tell the motor pool to go someplace else.” He stated the airport has said the university has the right to that land.
Senator Coffin reiterated his appreciation for Senator Rawson’s suggestion, and suggested it be aired that the university has this opportunity to not have the motor pool on the campus.
Mr. Combs advised the committee that if the decision is made to move the motor pool somewhere else that is not owned by the university, there are no site acquisition costs currently in the project. He said that would add to the costs of the project.
SENATOR RAWSON MOVED TO APPROVE PROJECT 01-C4; TO GIVE THE UNIVERSITY OF NEVADA, LAS VEGAS, THE AUTHORITY TO PUT THE MOTOR POOL FACILITY WHERE IT CHOOSES; AND WITH INSTRUCTIONS TO PRESENT DETAILS TO THE INTERIM FINANCE COMMITTEE FOR ITS APPROVAL BEFORE ANY CHANGE ARE MADE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C5 contains $200,000 for advance planning for the next CIP improvements. He said staff recommended reducing funding by $50,000 in line with the advance planning projects for the last two CIP programs. He stated the State Public Works Board indicated it wanted the extra $50,000 to be used for an additional 10-year capital planning programming. He said only $69,000 of the money that was approved by the 1999 Legislature has been spent.
SENATOR RAGGIO MOVED TO APPROVE PROJECT 01-C5 AT THE REDUCED LEVEL OF $150,000.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C6 provides for advance planning for the Las Vegas Readiness Center for the Office of the Military. He said the appropriation would include $75,000 in General Funds and $225,000 in federal funds. He said the staff recommended it be funded as the Governor recommended.
SENATOR MATHEWS MOVED TO APPROVE PROJECT 01-C6 AS RECOMMENDED BY THE GOVERNOR.
SENATOR RAGGIO SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C7 is designated for the Veterans’ Cemetery Expansion Phase IV in Boulder City. He said there is $300,000 in general obligation bond funds that are there as seed money. He stated his only recommendation for the project is that a Letter of Intent be sent to have the money revert to the bond interest and redemption account as soon as the federal government has reimbursed those funds.
ASSEMBLYMAN MARVEL MOVED TO APPROVE PROJECT 01-C7, AND THAT FUNDING BE AUTHORIZED AS A LOAN FROM THE STATE GENERAL FUND.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
Senator Raggio suggested the motion authorize this as a loan from the state General Fund that could be repaid once the federal reimbursement for design costs is received. He stated that could free up $300,000 in additional bonding authority and not require an appropriation from the state General Fund.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C8 contains funding to finalize the Southern Nevada Veterans’ Home. He pointed out the committee is aware of the concerns and problems that have been confronted with this project. He said staff requested detailed information on furnishings and equipment products that would have to be purchased. He added there is a question regarding the project cost estimate and change orders being left open from the previous 97‑C16 project.
Mr. Combs stated the way the project has been going made it impossible for the board to comply with the requests for information because it does not know how much money will be required to purchase the furnishings. He said that affects how much they would need to spend out of this project.
Mr. Combs acknowledged staff cannot calculate the exact amount needed to finish the facility, but it is clear that money will be needed to complete the veterans’ home.
SENATOR RAGGIO MOVED TO APPROVE PROJECT 01-C8 AS RECOMMENDED BY THE GOVERNOR.
ASSEMBLYMAN PERKINS SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated that project 01-C9 provides for the Special Children’s Clinic Addition in Reno. He said the only recommended change in this project is to combine project 01‑M18, the finishing of the basement floor, with this budget. He explained there are some cost savings to be realized from combining the two projects into one.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO APPROVE PROJECT 01-C9 AS RECOMMENDED BY STAFF.
ASSEMBLYMAN MARVEL SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C10 involves renovations to the Capitol, Capitol Annex and the Blasdel Building. He recalled there were extensive discussions about the Blasdel renovations, and the Public Works Board has indicated the only renovations planned for that building are the result of people moving in and out of it. He said renovations will involve moving a few walls.
Mr. Combs stated moving costs are included in this project as well, and the staff recommended funding moving costs with General Funds rather than through obligation bonds.
Senator Rawson said he could support this project, but pointed out the only change that would make him happier would be if enough money were encumbered to implode the building in the future.
ASSEMBLYMAN PERKINS MOVED TO APPROVE PROJECT 01-C10 AS RECOMMENDED BY THE GOVERNOR.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C11 involves remodeling Building Number 17 at the Stewart facility. He recalled that in the subcommittee hearing the Public Works Board indicated the asbestos abatement costs had been left out of the project cost estimate. He stated the board indicated that it would require an additional $31,668 for asbestos abatement, and staff has included that in the worksheet.
SENATOR RAGGIO MOVED TO APPROVE PROJECT 01-C11 WITH THE ADJUSTED AMOUNT AS RECOMMENDED BY STAFF.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C12 involves renovations at the National Guard Rural Armory. He said the project is increasing from $1,973,193 in general obligation bond funding to $2,033,001 in general obligation bond funding based on the transfer of some asbestos abatement costs from CIP 01-S6. He stated in this case the federal Department of Military’s 50 percent match was not included in the 01‑S6 project. He explained that, in addition to transferring the funding from 01‑S6, he also had included the additional federal matching funds.
ASSEMBLYMAN MARVEL MOVED TO APPROVE PROJECT 01-C12 AS RECOMMENDED BY STAFF.
ASSEMBLYMAN DINI SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C13 would convert the Bellrose Building in Las Vegas from warehouse space to a record storage center for the Department of Museums, Library and Arts.
SENATOR RAGGIO MOVED TO DELETE PROJECT 01-C13.
ASSEMBLYMAN MARVEL SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C14 provides for Phase II to remodel the Carson City Court House. He recalled it was funded by the 1999 legislative session but has been on hold because of a funding shortfall. He said it will require $1.7 million to complete the project.
ASSEMBLYMAN DINI MOVED TO APPROVE PROJECT 01-C14 AS RECOMMENDED BY THE GOVERNOR.
ASSEMBLYMAN PERKINS SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C15 is designated for advance planning and design and utility infrastructure for the Science and Engineering Complex at the University of Nevada, Las Vegas, (UNLV) campus. He indicated the total is for $8.8 million.
Mr. Combs alerted the committee it appears that if this project is approved it is expected to ultimately cost about $66 million, $15 million of which is expected to be generated from donated funds.
Ms. Giunchigliani asked why it would cost $66 million. Mr. Combs replied the facility is expected to be 230,000 square feet and the size probably drives that cost. He added that being a science and engineering complex, it is expected there will be extraordinary equipment costs.
Ms. Giunchigliani asked whether there is already an engineering building on the UNLV campus. Mr. Combs said the university officials would be better equipped to answer that question.
Carol Harter, President, University of Nevada, Las Vegas, stated the engineering facility at UNLV is “completely full and overflowing,” and there is no space left for any more students or faculty in the science complexes or the engineering complex. She explained this project is intended to expand space for the students and faculty that will be coming to the university.
Ms. Giunchigliani asked how many buildings this will involve. Ms. Harter replied it will be one very large building. She stated it will interconnect several of the science and engineering buildings that already exist and will provide interdisciplinary space. She explained it is significantly less expensive to build one interdisciplinary building between science and engineering than two separate ones. She pointed out engineers and scientists will share everything except specialized laboratory space.
Ms. Giunchigliani asked what the initial $8 million will accomplish.
Ms. Harter stated it would be applied to design and expanding the existing infrastructure. She added the present infrastructure cannot support any additional building, and a restructuring of the whole infrastructure would cost almost half of the $8.8 million.
Senator Raggio stated he understood the potential cost will be $66 million, and $15 million of that is to come from other sources.
Ms. Harter stated the $15 million will come from a lease the university has already struck with the Environmental Protection Agency (EPA), which is renting property.
Senator Raggio asked whether this is a facility for which there should be some other type of private funding. Ms. Harter replied the university hopes to find some private funding.
Senator Raggio suggested if the committee approves this project serious attention should be given to finding other funding because the committee anticipates bonding authority will be severely limited in the immediate years ahead. He said that, based on information the committee was given, there is no likelihood there will be this amount of bonding authority available. He said private funding should be sought to complement this projected cost.
Senator Raggio pointed out that “we have to be realistic.” He stated that once the committee commits to planning and design, it becomes a commitment, and the committee does not want to make a commitment that it cannot keep. He pointed out this is a project for which alternative funding needs to be found if it is ever going to be accomplished.
Ms. Harter said the university will do everything it can to find additional funds.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO APPROVE PROJECT 01‑C15 AS RECOMMENDED BY THE GOVERNOR.
ASSEMBLYMAN PERKINS SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C16 is for the furnishings and “build-out” of Phase I of the Redfield Campus. He recalled this project was approved by the 1999 Legislature and has been scaled back. He stated it is expected to be funded with $2.5 million from general obligation bonds and $2.5 million from other funds.
ASSEMBLYMAN MARVEL MOVED TO APPROVE PROJECT 01-C16 AS RECOMMENDED BY THE GOVERNOR.
SENATOR MATHEWS SECONDED THE MOTION.
Ms. Giunchigliani asked what the long-term costs will be, and whether this approval will complete the project.
Mr. Combs replied this will complete Phase I, which is the first building on campus. He said he does not have a long-range estimate of a campus master plan. He reiterated this would complete the first building.
Ms. Giunchigliani asked how many phases are anticipated.
Mr. Combs replied he was not aware of how many are planned.
Ms. Giunchigliani suggested the same caution ought to be given with this project as was given on project 01-C15.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C17 would provide furnishings and “build-out” for the Southern Science Center for the Desert Research Institute in Las Vegas. He indicated there is a slight cost reduction because the Governor, when he sent over the list of recommended General Fund allocations to the various projects, indicated this would be a General Fund project. Mr. Combs explained that bond sale costs were reduced from the project.
ASSEMBLYMAN DINI MOVED TO APPROVE PROJECT 01-C17 AS RECOMMENDED BY STAFF.
SENATOR RAGGIO SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C18 would be used for the furnishings and build-out of the library and student center at Western Nevada Community College. He said that during the 1999 legislative session the Governor recommended including funding for the furnishings, but the Legislature elected to defer the cost of the furnishings and equipment.
Mr. Combs stated the adjustment indicated in Exhibit C was recommended by the staff. He explained the recommendation proposes that furnishings and equipment be reduced by $82,417. He said the cost estimate received in the 1999 legislative session was inflated by 10.25 percent for the 2-year delay in getting furnishings, and the staff recommends adding another 5 percent for another year. He said the facility is expected to open in 2002. He stated the project would total $1,492,583.
ASSEMBLYMAN DINI MOVED TO APPROVE PROJECT 01-C18 AS RECOMMENDED BY STAFF.
ASSEMBLYMAN MARVEL SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C19 is for furnishings for the Pennington Medical Building at the University of Nevada, Reno (UNR). He said the recommended cost reduction came about because the appropriation will be made through the General Fund and there will be no cost for bond sales.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO APPROVE PROJECT 01‑C19 AS ADJUSTED BY THE STAFF.
ASSEMBLYMAN PERKINS SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C20 will furnish the Science Building on the West Charleston campus of the Community College of Southern Nevada (CCSN). He explained the furnishings in this project were also deferred to this biennium. He stated the cost of this project is $3,502,062.
SENATOR RAGGIO MOVED TO APPROVE PROJECT 01-C20 AS RECOMMENDED BY THE GOVERNOR.
ASSEMBLYMAN PERKINS SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C21 will be used to build a new Health Sciences/Biotech Building on the West Charleston campus of CCSN. He pointed out the Governor recommended the project be funded for $20 million with state funds and $5 million with funds from CCSN. He said the State Public Works Board submitted a revised project cost estimate indicating that the amount of donated funds would be reduced to $1 million based on the level the school believed they could come up with to fund this project.
SENATOR RAGGIO MOVED TO APPROVE $1,446,720 FOR THE ADVANCE PLANNING ONLY FOR PROJECT 01‑C21. HE ALSO MOVED TO APPROVE $20 MILLION FOR THE CONSTRUCTION OF A TELECOMMUNICATION BUILDING ON THE CHEYENNE CAMPUS OF THE COMMUNITY COLLEGE OF SOUTHERN NEVADA, USING $19 MILLION FROM THE PROCEEDS OF THE SALE OF BONDS AND $1 MILLION FROM OTHER SOURCES PROVIDED BY THE COMMUNITY COLLEGE.
ASSEMBLYMAN PERKINS SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C22 provides $11 million to complete Phase II of the Student Center and Physical Plant renovation at the Truckee Meadows Community College’s (TMCC) Dandini campus. He said Phase I of this project was approved in the 1999 session of the Legislature.
ASSEMBLYMAN PERKINS MOVED TO APPROVE PROJECT 01-C22 AS RECOMMENDED BY THE GOVERNOR.
ASSEMBLYMAN MARVEL SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C23 provides funding for the UNLV Wright Hall addition and renovation. He said it had been recommended at $18,792,000 by the Governor. He pointed out the State Public Works Board indicated that, in doing the project cost estimate, the asbestos abatement costs were omitted from the project. He said those costs amount to $980,923 for this project. He stated that some demolition is being done as well as some remodeling, and those funds will be needed. He stated the figure on the worksheet (reflected in Exhibit C) is the total amount with the asbestos abatement costs included.
ASSEMBLYMAN DINI MOVED TO APPROVE PROJECT 01-C23 AS RECOMMENDED BY STAFF.
ASSEMBLYMAN MARVEL SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C24 funds the new library for UNR. He said originally it was a $66 million project, and he recalled that at the subcommittee hearing there was discussion as to whether the Getchell Library renovation should be included in the project. He said there was also discussion as to whether the cost per square foot was accurate.
Mr. Combs stated the State Public Works Board resubmitted a cost estimate on this project that included some moving expenditures as well as advance planning costs for the Getchell Library. He said the legislative staff, based on the current situation with respect to future bonding authority, recommend the committee hold off on a decision on the Getchell Library. He advised the committee to proceed and fund the new library for $22 million in general obligation bonds, $22 million in revenue bonds, and fund the remainder of the total cost from donations. He said that would amount to between $20 million and $21 million.
SENATOR RAGGIO MOVED TO APPROVE PROJECT 01-C24 WITH THE REVISED PROJECT COST ESTIMATE.
ASSEMBLYMAN MARVEL SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs stated project 01-C25 is for the Academic and Student Services Building for the Nevada State College campus in Henderson. He recalled the president of the college indicated to the subcommittee that the project costs could be reduced by $2.6 million as a result of the site being moved. He explained the utility costs are lower at the new site. He indicated that has been reduced on the chart (Exhibit C) and the general obligation bonds are now $13,400,000.
ASSEMBLYMAN PERKINS MOVED TO APPROVE PROJECT 01-C25 WITH THE COST ADJUSTMENT RECOMMENDED BY THE STAFF.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
Senator Coffin stated he is opposed to the project and recalled that he was startled a year ago when the project developed so quickly without a full and adequate statewide or community-wide search as to the right location for this new 4‑year third tier to the higher education system. He pointed out it has already “bounced around” in location from a fairly decent location to an industrial park.
Senator Coffin noted, on the other hand, that the surroundings are not necessarily so bad as other things that worry him about the project. He stated one of his concerns is that the location is at the farthest possible end of the valley from where the greatest population exists. He said it is in a “wonderful, fast-growing city” which some say may be the second largest in the state.
Senator Coffin stated this is the state’s entry into low-cost education at the 4‑year level, yet makes it almost inaccessible to 80 percent of the population of Clark County. He reiterated it could not be put any further away from where most of the people live unless it were on the Colorado River. He stated he objects to the location.
Senator Coffin stated the location itself has some problems that probably can be worked out. He surmised utilities are probably large-scale for that kind of project, and construction may be inhibited because of the gas-line there. He said, however, he has been assured by the State Public Works Board and other staff that the high pressure 10-inch gas-line will not be an impediment to construction, but could actually be an asset. However, he reiterated the location is too far from the population, and that the school is unnecessary when considering the need for the school was purported for purposes of educating students in fields for which the local university is doing a good job.
Senator Coffin stated the justification has not been demonstrated to him, but the Board of Regents has “bought it hook, line, and sinker.” He said he does not know how the other administrators feel, but suggested they have been understandably silent. He continued, emphasizing he is further troubled by the fact the management team chosen for this new campus, on which the committee is about to spend not just $25 million but inevitably hundreds of millions of the state’s money, consists of people who have been judged by the regents to be incapable of managing the campus. He stated it is astounding that the people who have been chosen to lead this campus have failed the test of responsibility as laid out by the regulations of the university system.
Mr. Arberry stated it would be appreciated if Senator Coffin’s comments were kept to the project and not used to attack personalities. Senator Coffin pointed out no names were mentioned.
Senator Coffin continued, stating the people already mentioned are the subject of a public report issued by the Attorney General, which broadly lays out and ratifies the management problems of the Community College of Southern Nevada. He insisted that is a public document, but because it may be hard to find one in the legislative building he would give the investigative report by the Attorney General to the secretary to be entered in the minutes. (Exhibit D) He stated he wanted the committee to understand what it would be doing if it votes for this project.
Senator Coffin stated normally when the committee faces a state agency head or assistant head, the committee “takes them to task” and tells them “who is in charge.” He pointed out that normally such incompetent persons are fired, but said the Board of Regents had “absorbed” this and continued to move forward. He pointed out the personalities involved are “personalities of their own making.” He stated he objects to this proposal, the waste of taxpayers’ money, and the total misdirection of the university system’s budget.
THE MOTION CARRIED. (SENATOR COFFIN AND ASSEMBLYWOMAN GIUNCHIGLIANI VOTED NO. ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
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Mr. Combs stated project 01-C26 involves advance planning of the Student Services addition and renovations to Frazier Hall at UNLV. He said this is a $300,000 general fund appropriation.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO APPROVE PROJECT 01‑C26 AS RECOMMENDED BY THE GOVERNOR.
ASSEMBLYMAN PERKINS SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
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Mr. Combs stated project 01-C27 was requested by the Division of Wildlife to rehabilitate state fish hatcheries. He stated this is Phase I of the project. He recalled a slide presentation was made to the subcommittee about the various phases. He pointed out the project cost has been increased because of some asbestos abatement costs that were transferred into this project. He explained that by transferring the asbestos abatement into this project, it will be possible to fund the project with revenue bonds from the Division of Wildlife rather than through the general obligation bonds that were recommended to fund the asbestos project.
Mr. Combs stated there is a request for $3.5 million in bonding authority overall for this project as well as for some other items that are taking place at the hatcheries. He suggested the committee may wish to add clarifying language to the CIP bill. He said he would work with the legal division to get the appropriate language.
Mr. Marvel stated the trout stamp fee was raised so new fisheries could be paid for with revenue bonds.
Mr. Combs agreed this project was being funded with revenue bonds. He stated the reference to general obligation bonds was that there was a portion of the asbestos abatement costs that were in a project being funded with general obligation bonds. He stated staff has recommended moving those costs into this project and funding them with revenue bonds.
Mr. Ghiggeri stated there has been an indication from the Budget Division that it wants to have bonding authority of approximately $3.5 million. He stated approximately $400,000 will be utilized by the Division of Wildlife for in‑house work on the project. He said the fiscal staff has not had an opportunity to review any backup for that submittal.
Don Hataway, Deputy Director, Budget Division, Department of Administration, stated the whole concept of this renovation project was that it would be a joint effort between what the State Public Works Board was doing and what the Division of Wildlife would be doing with either their own staff or others. He said the total cost projected over the next 3 years is $4.5 million. He pointed out that $700,000 of that would be federal matching funds of approximately 15 percent.
Mr. Hataway stated the cash flow analysis for the project indicates approximately $301,000 of trout stamp cash flow can be funded. He said the total amount of new bonding needed is $3.5 million, $3 million of which would go to the Public Works Board to do its part of the project, and the rest would be for the Division of Wildlife. He concluded that all the Budget Division is requesting is authorization for revenue bonds of approximately $3.5 million.
SENATOR RAGGIO MOVED TO APPROVE PROJECT 01-C27 AS RECOMMENDED BY THE GOVERNOR, AND WITH AUTHORIZATION FOR REVENUE BONDING OF $3.5 MILLION.
ASSEMBLYMAN DINI SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMEN HETTRICK AND PERKINS WERE ABSENT FOR THE VOTE.)
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Mr. Combs stated project 01-C28 has been removed because it was already approved by IFC.
Mr. Combs stated there is also a Department of Employment, Training and Rehabilitation facility to be considered (CIP 01-E1). He said the only cost adjustment indicated in Exhibit C is a reduction for bond sale costs that were not needed because the project cost estimates were based on the entire project being bonded.
SENATOR RAGGIO MOVED TO APPROVE PROJECT 01-E1 WITH THE ADJUSTMENT RECOMMENDED BY THE STAFF.
ASSEMBLYMAN DINI SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMEN HETTRICK AND PERKINS WERE ABSENT FOR THE VOTE.)
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Mr. Combs indicated he would mention maintenance projects for which there is a significant change in the cost. He explained bond sale costs were removed from many projects when it was determined to fund them with General Fund. He stated there are also some that are zeroed out because they have been recommended for transfer to be combined with larger projects that were approved as “C” projects.
Mr. Combs added there are three projects that were recommended to be deleted by the State Public Works Board. He stated project 01‑M6 was designated to demolish a house and garage at 303 Roop Street. He said it originally was needed because at one time there was a plan to build a new state office building in Carson City, but the item did not get taken out when that plan was abandoned.
Mr. Combs stated project 01-M43, another such project, is for unit wing gates at the Southern Desert Correctional Center. He stated that project was approved during the 1999 legislative session and it became necessary to transfer funds from the project to fund the High Desert State Prison construction project. He said there had been IFC approval to make the transfer. He explained it has been determined that the motors do not have to be replaced on those units, so the cost has been reduced significantly and the additional funding will not be needed.
Mr. Combs stated project 01-M5 involves improvements to the Clear Creek Facility. He recalled there was some testimony provided during the hearing that there were not only costs included in this project for roofing and underground storage tank removal, but there were also costs for American with Disabilities Act (ADA) compliance projects and paving projects. He said those projects were not listed anywhere in the CIP program, but the board believed at the time that they were included. He stated he had asked for a revised project cost estimate and did not get one. Therefore, he stated, the figure indicated in Exhibit C is the estimate of the cost to do the work that was in the project as well as the roofing and underground storage tank removal. He noted it does not included anything for ADA compliance or paving. He stated he received a revised estimate before the meeting that would increase this project to $1,672,873. He indicated staff has not had an opportunity to look at this. He recommended that, if the committee wants to approve the ADA compliance items and the paving, the project only be increased by $512,506 to a total of $1,629,447. He said there are items on the project cost estimate that have increased that he cannot identify and about which he could not advise the committee.
SENATOR RAGGIO MOVED TO APPROVE MAINTENANCE PROJECTS 01‑M1, 01‑M2, 01‑M3, 01‑M4, 01‑M5, 01‑M6, 01-M9, 01‑M10, 01‑M11, 01‑M12, 01‑M13, 01‑M14, 01‑M15, 01‑M16, 01‑M17, 01‑M18, 01‑M19, 01‑M20, 01‑M21, 01‑M22, 01‑M23, 01‑M24, 01‑M29, 01‑M30, 01‑M31, 01‑M32, 01‑M33, 01‑M34, 01‑M35, 01‑M36, 01‑M37, 01‑M38, 01‑M39, 01‑M40, 01‑M41, 01‑M42, 01‑M43, 01‑M44, AND 01‑M45; TO APPROVE THE ADJUSTMENTS RECOMMENDED BY THE STAFF, INCLUDING THE CLEAR CREEK FACILITY PROJECT 01‑M5 FOR $1,629,447, AND TO INCLUDE THE AUTHORITY FOR THE STAFF TO MAKE ANY NECESSARY ADJUSTMENTS THAT MAY BE IN ORDER AS A RESULT OF ANY REVIEW OF THESE COSTS.
SENATOR RAWSON SECONDED THE MOTION.
Mr. Hataway stated there is a problem regarding mold in the Las Vegas building. Senator Raggio replied he had reserved those items.
Mr. Hataway stated he was going to discuss it in relation to project 01‑M17. Senator Raggio asked whether the motion would accommodate the mold problem. Mr. Hataway said it did not. He stated project 01‑M17 should be pulled out for separate consideration.
Mr. Arberry asked whether the problem will be absorbed into project 01‑M17, and whether it will require additional funding. Mr. Hataway replied it will need additional funding.
Senator Raggio asked how much should be added to project 01‑M17 for the mold problem. Mr. Hataway replied the additional amount would be $1,590,446 from the General Fund. He stated $181,000 is already included in project 01‑M17.
Senator Rawson asked whether the developmental disabilities buildings or the children’s units have mold. He stated the subcommittee decided to approve funding to move the staff out of those facilities while the mold problem was being corrected.
Mr. Arberry asked whether the change had been proposed during the previous 4 hours. Mr. Hataway responded he would be happy to work with staff to fine-tune the request, but stressed it is a life safety issue that needs to be funded some way, and project 01‑M17 already addresses part of the solution. He stated the estimated additional amount is $1,590,446.
Mr. Combs stated project 01‑M17 is a painting and sealing project. He suggested a new project be created for the mold problem rather than combining it with something else.
Senator Raggio suggested if a new project is created it would have to be funded from general obligation bonds.
Mr. Hataway stated he would have no problem with that.
Senator Raggio stated, if the committee does that, the specific amount should not be authorized at this point. He suggested staff be allowed to determine the amount.
THE MOTION CARRIED. (ASSEMBLYMEN HETTRICK AND PERKINS WERE ABSENT FOR THE VOTE.)
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Mr. Combs explained the specific projects were pulled out of the prior motion because, based on the Governor’s recommendation to reduce the General Fund for the CIP program by $2 million, staff would recommend funding those projects with the proceeds of general obligation bonds rather than General Fund. He stated staff recommended doing so, because these projects will be repaid over time by those agencies once the projects are approved. He suggested the committee may want to fund the projects with general obligation bonds, and have the agencies repay the bond interest in to the redemption account. He stated that these seemed to be the most appropriate maintenance projects to reduce the General Fund contribution to the $16 million level.
SENATOR RAGGIO MOVED THAT MAINTENANCE PROJECTS 01‑M7, 01‑M8, 01‑M25, 01‑M26, 01‑M27, AND O1‑M28 BE FUNDED WITH GENERAL OBLIGATION BONDING, AND THAT THE PROVISION BE MADE FOR REIMBURSEMENT FROM THE AGENCIES.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
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Mr. Combs was asked what the total amount would be for general obligation bonds. He stated the amount has changed due to the actions of the committee today. He indicated that he was keeping a tally and it is under $200 million, which was what the state Treasurer indicated it should be.
Mr. Combs stated most of the adjustments made to the statewide projects were mentioned previously when he discussed how money was transferred from the statewide asbestos, paving, and underground storage tank programs into the construction and maintenance projects.
Mr. Combs stated Highway Funds were added to project 01-S2 because one of the projects on the list of a high priority was designated for highway projects.
Mr. Combs drew the committee’s attention to project 01‑S4. He said the CIP program recommended $2 million to allow the board to increase funding for previously approved projects upon the approval of the Legislature and the IFC. He stated it is the opinion of staff that the board has not provided sufficient detail to determine the manner in which these funds are going to be used. He said the approval of such a contingency amount does not appear to be necessary based on the fact that a contingency amount is built into each construction and maintenance project. He added the CIP legislation provides authority to transfer the funds from one CIP project to another within the same agency. He said the staff recommends this amount be eliminated.
SENATOR RAGGIO MOVED TO APPROVE THE ITEMS UNDER STATEWIDE PROJECTS AND ACCEPTING THE RECOMMENDATION OF STAFF, INCLUDING THE DELETION OF PROJECT 01‑S4.
SENATOR RAWSON SECONDED THE MOTION.
Senator Rawson asked whether the $2 million was set aside as a contingency for contested projects. Mr. Combs replied the description the State Public Works Board gave to the project is what was detailed in the Recommended Capital Improvement Program, which was minimal.
Senator Rawson stated it is important to note emphatically that the committee has no intention of providing any additional funding for any contested projects.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
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Senator Raggio stated prior to the Public Works Board entering into contracts the CIP bill should designate that donated funds must be raised prior to entering into a contract for the project. He said that signing contracts before the funds are raised has caused some problems with the Public Works Board, and he suggested it must be addressed in the CIP bill.
Daniel K. O’Brien, Manager, State Public Works Board, Department of Administration, stated when the board is ready to enter into a contract for construction work there is concern whether sufficient funding is available. He noted the state statute requires the board to have the money “in the bank” before the board enters into contracts. He said the board has discussed this with the university system and it is in concurrence with the board regarding the need to make sure the money is there. He agreed if such a provision is added it will take care of this problem.
Senator Raggio stated that would also be of help to the university system because it could be pointed out to those who are relying on the funding. He suggested this be put into the CIP bill.
Senator Raggio added the Committee on Government Affairs had heard a bill that dealt with the authorization for bonding for energy retrofit, and it proposed a greater allowable expenditure authority. He stated the present law allows $5 million, and he recommended the authority for energy retrofit be increased to $15 million. He asked whether that would be adequate for the board’s purposes. Mr. O’Brien replied that it would be.
SENATOR RAGGIO MOVED TO PLACE LANGUAGE IN THE CIP BILL REQUIRING THAT ANY DONATED FUNDS FOR CONSTRUCTION PROJECTS BE AVAILABLE BEFORE THE STATE PUBLIC WORKS BOARD ENTERS INTO CONTRACTS FOR THE WORK, AND THAT THE $5 MILLION CAP FOR ENERGY RETROFIT PROJECTS BE INCREASED TO $15 MILLION.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR FOR THE VOTE.)
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Mr. Combs stated the remaining projects were all university maintenance projects to be funded out of general obligation bonds in the amount of $10 million and special higher education capital construction funds in the amount of $5 million.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO APPROVE THE CAMPUS IMPROVEMENT PROJECTS.
ASSEMBLYMAN PERKINS SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMAN HETTRICK WAS ABSENT FOR THE VOTE.)
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Mr. O’Brien stated a Nevada Highway Patrol project needed to be discussed.
Ward Patrick, Deputy Manager, Professional Services, State Public Works Board, Department of Administration, stated project 99-H1 in the 1999 Legislature was funded for $10.7 million, which included $2 million in site acquisition costs. He stated the project has been on hold for the last 2 years and the current funding is not going to meet the needs of the Nevada Highway Patrol.
Mr. Patrick stated $2 million was originally allocated for site acquisition only, and $620,000 of that has been allocated back into the building. He proposed that at least $600,000 of the balance of $1,375,000 be allowed to be put back into the building and removed from site acquisition costs. He said this would allow for the building to meet the needs of the Highway Patrol for the next 10 to 15 years, but it would not be sufficient to meet the total scope of the Highway Patrol’s original project. He noted the original project was a 60,000 square foot project with 40,000 square feet of shell.
Mr. Patrick said he has had discussions with the staff on this and would like to continue the opportunity to make the project successful.
Mr. Arberry asked when the committee would draw the line that the project is not even needed. He noted there was previously a drastic need for the building, and no progress has been made.
Mr. Patrick stated the need is still there. He stated the Highway Patrol currently occupies a building of approximately 25,000 square feet. He noted the proposal would enable a building of approximately 40,000 square feet, which it is believed will meet their needs for the next 10 to 15 years.
Mr. Combs explained there has been a shortfall in the Highway Patrol project. The board is requesting that to complete the project as envisioned would necessitate tapping into funds currently restricted by statute for land acquisition costs only. He stated if the committee wants the language amended to authorize the use of land acquisition funds for construction, the committee could amend the language in the 1999 CIP bill to allow some of that funding to be used for construction.
Mr. Combs pointed out there is a proposal by the Department of Transportation (NDOT) to be involved in the facility with its Freeway and Arterial System of Transportation (FAST) program. He said staff has not had the opportunity to understand the specifics of the proposal. The committee would need to know how much money would be provided and by whom the money would be provided, who would be in charge of the project, and where the money would be deposited. He said staff does not recommend approving anything other than the change in the language to allow the board to come to IFC and request to use the money in the 1999 CIP bill for land acquisition costs. He said that would require that a full proposal be presented to IFC before any of the funds were expended.
Senator Raggio agreed that would be appropriate.
SENATOR RAGGIO MOVED THAT A STATUTORY CHANGE BE MADE TO ALLOW THE USE OF MONEY FROM CIP 99-H1 PREVIOUSLY RESERVED FOR LAND ACQUISITION TO BE AVAILABLE FOR BUILDING COSTS, AND THAT CONSIDERATION OF THE REQUEST BE DEFERRED UNTIL SUCH TIME AS IT CAN BE SUBMITTED TO THE INTERIM FINANCE COMMITTEE FOR APPROVAL.
ASSEMBLYMAN DINI SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYMEN HETTRICK AND PERKINS WERE ABSENT FOR THE VOTE.)
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The meeting was adjourned at 1:48 p.m.
RESPECTFULLY SUBMITTED:
Bob Williston
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE:
Assemblyman Morse Arberry Jr., Chairman
DATE: