Lawmakers order audit of UNLV library

Tuesday, Dec. 12, 2000 | 11:09 a.m.

CARSON CITY -- The Legislative Commission Monday ordered an audit to find out what went wrong on the construction of the Lied Library at UNLV, which is behind schedule and plagued with cost overruns.

The commission was told there are $5.6 million in claims against the contractor and the state, and there is no money to pay them. The library was supposed to be open in January this year, but it won't be ready until the spring semester in 2001.

Sen. Ann O'Connell, R-Las Vegas, who heads the commission, said some legislative committee should have exercised oversight because the Legislature appropriated the money.

Assembly Majority Leader Richard Perkins, D-Henderson, said the state Public Works Board was responsible for supervising the projects. "We were told time and time again by the Public Works Board manager it would open on time," Perkins said. "Now it's a year behind schedule."

He said Public Works Board Manager Eric Raecke has resigned, and he is not answerable to any elective official. Raecke was appointed by the board and could not be removed by the governor or the Legislature. Perkins said he has a bill being drafted to change that situation.

The Legislature initially appropriated $32.8 million, and the Lied Foundation chipped in $15 million in 1997. The 1999 Legislature authorized $9.4 million for furnishings, equipment and a parking lot for the new library.

The total project was approved for $58.2 million, of which the state provided $43.2 million.

In June this year, the Public Works Board asked for and received permission from the Legislative Interim Finance Committee to spend $100,000 of the money set aside for furnishing for certain construction costs.

At the meeting earlier this month, the finance committee authorized the Public Works Board to use an additional $432,500 from the furnishing and equipment budget to fund additional construction. And included in that amount was $135,000 to pay for a third-party financial claims audit of the project.

Lorne Malkiewich, director of the Legislative Counsel Bureau, said subcontractors have filed about $4.3 million in claims against the contractor and an additional $1.3 million in claims "may be forthcoming."

He said the Public Works Board has indicated that the attorney general's office has recommended that a financial claims audit be conducted to help the board in defense of the claims.

Legislative Auditor Gary Crews said his staff would look "at what went wrong" and will suggest ways the problems can be avoided in the future. The audit could be completed some time during the upcoming session.

Among the things Crews intends to examine are the way the cost estimates were made, the selection of the architect, the bidding process, the construction monitoring and the managing of the project. His staff, he said, will not look at the design or the construction quality. But the auditors will examine change orders "to determine if they were needed and justified."