State Public Works presents CIP priorities, Hobart Dam funding request and concerns over building‑move staffing

Will Lewis, administrator of the State Public Works Division, and his staff presented the department’s recommended capital improvement program and maintenance priorities, highlighting projects across the Department of Administration, the Department of Agriculture and the Department of Native American Affairs.

Why it matters: The Division’s proposals cover repairs to aging state facilities, seismic and water‑intrusion fixes, replacement of critical mechanical systems, and new planning for office buildings that house dozens of state employees. Several projects carry dependencies on federal grants, approvals or future legislative funding.

Hobart Dam (Marlette Lake water system): Brian Walker and Will Lewis described CIP 21C05 (also referenced as 21c05/25c06 in the presentation) as a project to complete structural and functional upgrades to Hobart Dam. The presenters said the dam is an earthen-fill structure constructed in 1877 and rebuilt in 1956; Marlette Lake is an integral component that moves water to Carson City. The project request adds $4,500,000 in state funds to existing allocations (the slide cited $3,900,000 state and $10,000,000 federal previously approved) to arrive at a combined $18,500,000 total. Walker said permitting tied to the federal grant and construction-market escalation are drivers of the additional request and that construction is scheduled to start in summer 2026.

Hobart funding risk: Committee members asked what would happen if FEMA funds were delayed or withdrawn. Brian Walker said, ‘‘without the federal funds, that project cannot move forward’’ and that construction would not start without the federal funding in place.

State office building purchase, Reno (10375 Professional Circle): The presentation requested $24,200,000 in general obligation bonds to purchase a 79,200‑square‑foot office building leased by several state agencies. Committee members asked whether an appraisal had been completed. Jack Webb (realtor/administrator role in presentation) said the administration had worked with multiple real estate professionals and “are comfortable with the price.” He said a formal appraisal is being procured through State Lands and would be completed before purchase to ensure funds are sufficient; an appraisal now might be time‑limited and not valid at purchase time.

Arrowhead Building (planning): Public Works requested planning funds (PO3, about $977,000 design only) for HVAC replacement and sanitary sewer work at the Arrowhead Building, which the presenters said suffers from HVAC control issues and a main sewer line slope problem. Kent Choma said the sewer main ‘‘is not sloped enough to flow all of the waste out to the main sewer line’’ and said the planning project would evaluate re‑sloping.

Statewide maintenance and new programs: Walker described combined maintenance projects (MO3 and MO3H) and statewide programs (roofing, ADA upgrades, fire and life safety, paving, indoor air quality, new elevator program SO7, and a statewide building-move program S10). He said combined projects reduce contingency from 15% to 10% and allow priority‑2 work to start earlier when savings occur.

Elevator program (SO7): Walker and committee members discussed emerging elevator reliability problems in state facilities and the need for a focused statewide program. He said ‘‘the goal with this program is to not have that occur anymore’’—referring to employees becoming trapped or elevators failing during work hours.

Statewide building‑move program (S10) and staffing questions: Public Works requested funding for five full‑time construction project coordinator positions to coordinate agency moves into leased or owned spaces. Brian Walker said these would be ‘‘construction project coordinator 1 or 2’’ (unlicensed coordinator roles) rather than licensed architect/engineer project managers and that the positions would be used primarily to support moves into leased space. Multiple legislators pressed on why the CIP rather than the Public Works operating budget (1562) would fund the positions, how the hourly billing rate in the CIP was calculated, why the positions were modeled at 1,456 billable hours per year (70% billable assumption) rather than a full 2,080 hours, and why the CIP shows a higher effective cost than comparable positions. Walker said the CIP is the revenue authority for 1562 and that staff payroll is funded through CIP projects; he and Administrator Lewis said they would follow up with more detailed rate and staffing justification. Assemblymember Torres Fawcett and others described concern and asked that Public Works reexamine whether those positions should be funded through the operating account rather than a CIP project.

Nevada State Library & Archives (MO8): Walker said emergent structural and water intrusion issues were discovered during design work for prior tenant improvements; MO8 is a larger repair request to address water intrusion and structural damage on east and west entrances and plaza areas. Walker said occupants would not likely need temporary relocation for the entrance repairs but earlier tenant improvements were paused until these issues are addressed.

Process and schedule: Public Works explained their inflation assumptions (6.8% Northern Nevada, 6.4% Southern Nevada) and contingency practices (15% for projects under $10M, 10% for larger projects) and said contingency and construction allowances are included for remote locations, secured facilities, phased projects and occupied facilities.

No votes were taken. The committee repeatedly asked for follow‑up documentation: an appraisal before purchase for the Reno building, confirmation of FEMA funding for Hobart Dam, and written justification and cost breakdowns for the proposed five project coordinator positions and their billing rates.

Ending: Public Works officials said they will provide requested follow‑up materials and continue to work with fiscal staff and committee members on project specifics.