Cost increase threatens mental hospital

Wednesday, Jan. 5, 2005 | 10:57 a.m.

CARSON CITY -- The 150-bed state psychiatric hospital planned for the Las Vegas Valley is running into money problems, and some work on the project will be scaled back, officials said Tuesday.

The state Public Works Board estimated it would cost $25.7 million to build the hospital and open its doors by 2006. But the low bid in December by Sletten Companies was $27.8 million.

The board, in a memo to the Legislative Interim Finance Committee, said it had based its estimates on a 4 percent per year inflation rate. That estimate turned out to be flawed because inflation rates have risen 12 percent on construction projects.

Gus Nunez, deputy general manager of the Public Works Board, said Tuesday the finance committee will be asked on Jan. 12 for permission to delay some portions of the construction project.

Nunez said that would permit the project to match the budget available so that construction could start. The Public Works Board would ask the 2005 Legislature for the extra money to complete the project.

The hospital was one of the top construction priorities for Gov. Kenny Guinn and the Legislature in 2003. A total of $32.2 million was allocated for design, construction and other costs.

The state already has paid $1.5 million to HMC Architects of Nevada and another $1.8 million bill for such items as soils analysis, plan checks, project management in inspection fees and material testing services.

The Public Works Board also wants a $1.4 million contingency for unexpected problems during construction.

Southern Nevadans have complained that the hospital has long been desperately needed.

Hospital emergency room officials complained to the Legislature that mentally ill patients were filling their beds because the state hospital did not have enough room.

Clark County Manager Thom Reilly declared a mental health emergency July 9, after about a third of Las Vegas Valley's emergency room beds were taken up by mentally ill patients.

The new hospital is key to alleviating the conditions that caused the emergency, according to state and private health care officials.

In order to get the hospital built, the Interim Finance Committee will be asked to defer such things as sidewalks, paving, curbs, landscaping, work on the drainage channel and interior items such as counters and cabinets, ceramic and quarry tile, painting, restroom compartments and accessories.

That would save $3.6 million on the project. And then the Public Works Board would ask the Legislature to appropriate that much money early in the session so the full hospital could be completed without delay.

The proposed contract with Sletten would be reduced to $24.1 million and construction could start later this month with the proposed move-in date May 2006.

The board, which oversees state construction projects, will also ask the Legislature to allocate more than $7 million to build a fourth wing of 40 beds to add to the 150-bed Southern Nevada Psychiatric Hospital. Nunez said approval of this project by the Legislature would allow the 190 beds to be completed at one time, rather than in stages.

Timothy Pratt contributed to this story.