Speaking for Nevada - December 2004

Keeping up with Nevada’s Growth

The 2005-2007 Capital Improvement Program

by Daniel O’Brien

Question: "How does the Public Works Board decide which projects to approve, and why did this year’s list of buildings make the cut?"

The Nevada State Public Works Board (NSPWB) coordinates the design and construction of all state and university facilities that are approved and funded by the Nevada Legislature. The board’s mission is to "efficiently and effectively plan, manage and implement capital improvements for the state of Nevada."

The manager reports to the governor and a seven-member State Public Works Board appointed by the governor. While the primary function of the NSPWB is to implement the state’s capital improvement program, the manager also serves as the state’s building official, regulating all construction on state lands to safeguard public health, safety and welfare.

The NSPWB recently completed its 2005-2007 Recommended Capital Improvement Program and forwarded it to Governor Guinn for his review. During the next few months, the governor will review the program, add or remove projects and finalize his recommendations to be submitted to the 2005 Legislature. The Legislature will conduct hearings at which the NSPWB will present the governor’s recommendations and answer questions from the Capital Improvement Program (CIP) Subcommittee on the need, scope and cost estimates of the proposed projects.

Ultimately the subcommittee will make its final determination and submit a bill to the full Legislature for its approval. That will then complete the approval and funding phase of the 2005 CIP. But, going back to the beginning, the CIP process actually started much earlier.

Back in December 2003, the NSPWB solicited applications from state departments and the university system for projects to be considered for the 2005 CIP. The NSPWB received over $600 million worth of requests, which included minor and major maintenance projects, additions to existing facilities, remodels and upgrades to existing facilities, life-safety needs, handicapped facilities, water and sewer system improvements and new buildings.

After reviewing all the requests, each project was assigned to a staff member to create a scope of work, estimate construction costs and devise a complete budget. The results were then submitted to a committee of fellow staff members for a peer review to make sure all items were included, eliminate any surprises and serve as the in-house quality assurance program. All projects were then presented to the board and underwent hearings.

After all presentations were completed, the board set the major priorities, which were: first, life-safety items, then critical maintenance items, statewide programs (ADA, sprinkler and fire alarms, etc.), completion of previously funded projects and then new construction, including major remodels and advance planning projects. After a series of meetings with staff, the board agreed on a program that was then submitted to the governor.

Funding for the CIP comes from many sources, but most comes from the state’s bonding capacity, which is supported by a 16-cent ad-valorum (property) tax. Other sources of revenue are federal grants, donations and special revenue accounts. It is estimated the 2005 CIP will total between $200 million and $250 million.

During the 2003 CIP, the NSPWB received approval of approximately $219 million of proposed projects. One of those projects was the construction of a new engineering and science complex for the University of Nevada, Las Vegas. It will ultimately be an $86 million project, which will house research facilities at the university. A new psychiatric hospital in Las Vegas for the Department of Human Resources was also approved. This $32 million project located on the existing mental health campus will contain 150 beds.

Adhering to a project’s design and construction proposal is one of the NSPWB’s biggest challenges. A project must remain within its scope, within its budget and stay on schedule, and that’s not always easy. At any one time, the NSPWB has approximately 110 active projects, worth $600 million. The volume of work makes it very challenging for the 19 project managers and project coordinators at the NSPWB to deliver on time, scope and budget.

The NSPWB is working to gather comprehensive feedback about its projects from everyone involved: clients, architects, engineers and employees. This "360-degree review" is intended to gather input, summarize it, and communicate the key points throughout the organization. The good and bad aspects of a project, its management and its delivery are then communicated back to the board and its management staff for review.

Communication is the key to any successful project. About 95 percent of projects run smoothly, and for the most part, the NSPWB maintains a good relationship with its clients and contractors, and completes the project on time, in scope and in budget.