Regents: Contractor must make deadline

Jennifer Knight

Tuesday, Feb. 26, 2002 | 9:50 a.m.

Regents voted unanimously Monday to penalize contractors $50,000 a day if the construction deadline is not met on the Fire Science Academy in Carlin.

A lawyer representing contractor Clark & Sullivan said the decision may result in the academy not being finished at all.

"It would almost be financial suicide for a contractor to operate under those circumstances," said Bill McGrath, representing Clark & Sullivan, the Sparks contractor making repairs to the Fire Science Academy. "Either we come up with another agreement, or this is not going to get done."

Regents met in special session Monday to iron out cost overages from enhancements made to the Fire Science Academy to make it environmentally safe.

The academy closed in summer 2000 after construction defects were found. Fuel used to accelerate controlled burns during fire training exercises made its way into nearby soil, because pipes designed to filter it were leaking.

A $5 million settlement was reached with Clark & Sullivan to fix the design flaws, but recent upgrades to the fuel filtration system have resulted in an estimated $1.3 million in overruns.

Regents did not come up with answers as to how the University of Nevada, Reno would pay the extra money. UNR, which runs the academy, already has a $5.4 million deficit from the project.

"Any suggestions of how we are going to come up with the additional funds for this?" UNR President John Lilley asked.

"I hate to have to say this, but it's up to you," Regent Tom Kirkpatrick said.

Lilley later said there are only three options: Go further into deficit spending, ask regents to recommend that a state estate tax fund be used or use money left over from a recent $31 million revenue bond that was approved by the Board of Regents.

UNR needs the academy to open on May 1 or it will risk losing further money in revenue from student tuition and money paid to vendors to supply fuel used in burn exercises.

It was unclear after the board's vote whether construction would continue.

"I think there isn't any doubt about it, we are going to end up with a lawsuit at the end of this," Regent Doug Hill said.