Public Works details Hobart Dam cost increase, Reno office purchase and new maintenance programs; lawmakers press staffing and cost questions

State Public Works officials told the joint subcommittee the governor—s recommended Capital Improvement Program includes project funding increases for the Marlette Lake water system, a proposed purchase of a leased office building in Reno and a set of combined maintenance and statewide programs intended to speed repairs and address emergent needs.

The nut graf: The presentation highlighted three budgetary themes: completing federal FEMA‑funded dam work at Hobart Reservoir (Couny: additional state funds requested), acquiring an occupied Reno office building to house state staff, and expanding combined maintenance programs (MO3, statewide elevator program, and a statewide building move program). Lawmakers pressed Public Works on procurement, appraisals, tenant impacts and how new move‑coordination positions will be funded.

Administrator Will Lewis and Deputy Administrator Brian Walker described CIP 21C05 (Hobart Dam rehabilitation), explaining the project is part of the Marlette Lake water system and was originally funded with state and federal resources. Lewis said the dam (an earthen fill structure built in 1877 and rebuilt in 1956) holds about 10 acre‑feet and that construction costs rose after additional FEMA coordination and permitting delays; the CIP adds $4.5 million of state funds to reach a combined project total of $18.5 million (the presenters said earlier approvals included $3.9M state and $10M federal). Public Works expects construction to begin in summer 2026 after permitting and design work.

Lewis and Will Walker also presented CIP 25C27, a recommended $24.2 million GO bond purchase of a leased office building at 10375 Professional Circle in Reno. Presenters said the 79,200‑square‑foot property is already leased by several state agencies and houses more than 300 staff. Project staff said they worked with commercial brokers and independent market participants and plan to complete a formal appraisal via State Lands before purchase; staff described the purchase price as supported by market checks and said a triple‑net lease structure for some occupants could reduce agencies— total net costs when operations and utilities are accounted for.

Walker outlined a package of maintenance projects. The combined MO3 maintenance project pools multiple priority‑1 items to reduce contingency percentages and start projects earlier; Walker said the approach reduces combined contingencies and accelerates work, and he reported MO3 (and related MO3H) totals about $18.9 million with a statewide program package of roughly $59.6 million across multiple maintenance categories (roofs, ADA, fire and life safety, paving, indoor air quality and more). He described a new statewide elevator program (SO7) to address an increase in elevator failures that have stranded employees during business hours and a statewide building move program (S10) that would fund five construction project coordinator positions to support tenant improvements and agency moves.

Several lawmakers pressed the division on the five positions: why the CIP rather than the agency operating budget funds them, why the CIP development uses a single PMNI hourly rate rather than direct payroll equivalents, and why each position is budgeted for 1,456 hours (about 70% billable). Brian Walker and Administrator Lewis said the Public Works staffing model typically funds professional services through the CIP and that their internal billing construct uses a single rate that allocates for billable hours; they said the proposed positions are construction project coordinator classifications (unlicensed, not engineer/architect) intended to handle tenant improvements and moves so licensed engineers and architects can focus on larger CIP work. The committee asked Public Works to provide more detail on the hourly rate methodology and whether general fund versus project billing is the correct mechanism.

Other project details presented included planning projects (PO3 Arrowhead HVAC planning, $977,000 design only) and MO8, a structural repair request for the Nevada State Library and Archives (total for administration maintenance projects and statewide programs noted above). Lawmakers asked about the Hobart project—s dependence on FEMA funding; Public Works said design and permitting will continue but construction cannot proceed without the federal grant.

Ending: Public Works said it will provide additional documents requested by committee members (appraisal timing for the Reno purchase, hourly rate and staffing calculations for the move program and further detail on project contingencies).