University building funding may come up short

Thursday, Sept. 16, 2004 | 11 a.m.

CARSON CITY -- When the construction bids come in next year, the science and engineering building at UNLV may cost about $6.8 million more than the $60 million the state had planned to spend on the project, state officials said Wednesday.

The Legislative Interim Finance Committee gave the school approval to proceed with the bidding, anyway, without scaling back the project.

But lawmakers did not give any assurances that in 2005 they would come up with the additional $6.8 million that they expect will be needed to complete the project.

Inflation in steel prices at a rate of 10 percent has caused the cost of the building to rise.

UNLV President Carol Harter told the finance committee the school has already reduced the size of the project by 34,000 square feet and saved millions of dollars on the 200,000-square-foot project.

The project is to go out to bid in January. Dan O'Brien, manager of the state Public Works Board, said the bids will include $6.8 million in alternates to complete the building. If the bids are below estimates, than the $6.8 million in alternates will be included.

If the bids are on target, O'Brien said the 2005 Legislature will be asked to provide money to finish the project.

The University and Community College System of Nevada Board of Regents has already put the $6.8 million in the budget to complete the building, but the project also will need another $6.7 million in furniture and equipment.

Sen. Dean Rhoads, R-Tuscarora, said government agencies should do what the private sector does. He said it reduces or eliminates something when there are cost overruns.

But Sen. Bob Coffin, D-Las Vegas, said people are continuing to come to Nevada, and "we have to provide education for them." He said until there is a moratorium on growth, these increasing costs will continue to confront the Legislature.

Harter said UNLV would have its $25 million in outside funds ready by Dec. 1 to complement the money the state is putting into the project.

The same steel inflation problem is affecting the new library building planned for the University of Nevada, Reno. It initially was projected to cost $86 million.

Assemblyman John Marvel, R-Battle Mountain, said the action by the finance committee does not obligate the 2005 Legislature to pour more money into these two buildings.

In other action, the finance committee: