Challenges for 2010 - A Time of Transition

  First, I would like to wish the membership of the Builders Association of Northern Nevada a happy new year.  The 365 days of 2009 were filled with many delightful Builders Association events and successful endeavors with regard to government matters.  I’m sure that  2010 will be as exciting and fulfilling!
   One major transformation occurred at the City of Reno on October 7, 2009 when the City Council initiated an endeavor to develop a “Recovery Program” recognizing and encouraging a stabilization of the local economy.  Some of the issues in the budding Recovery Program include:

• Delay imposing impact fees during this economic crisis
• Not increasing fees that push investors out of the area
• The Council agrees that exactions should not be used
• Both the Fire and Parks Departments announced their intentions to open discussions with stakeholders to develop an equitable and comprehensive CIP
• The Mayor directed staff to explore methods to reduce permit cost by 20% to stimulate the economy
• The Council directed staff to look into changing the timing for collection of fees to the Certificate of Occupancy
• Council has directed to explore ways to use community block grant funds to encourage growth for small businesses and assistance with building permit fees

            The challenge in 2010 will be to partner with the State, Cities, County and local agencies to promote good leadership and solid objectives.  Washoe County, Reno and Sparks have all indicated a willingness to explore innovative ways to jump start this economically.  We at the Builders Association of Northern Nevada must encourage other transition efforts to be substantial and immediate such as:

• The Builders Association of Northern Nevada recognizes that at all levels, energy efficiency and conservation is of growing importance.  We also recognize this goes beyond just energy conservation and energy alternatives, moving into the broader topic of “green building,” with an emphasis on resource conservation and alternative construction materials.  BANN is proactive in the implementation of the ICC 700- 2008 ANSI/NAHB standard through the Built Green Nevada program. Our aim is to work with the construction industry to develop appropriate, cost effective energy options that will be supported by the consumer via increasing the value of the home.  The Built Green Nevada program is sponsored by local policy makers and the public.
• Encourage the Regional Transportation Commission to prepare and adopt a new Capital Improvement Program that meets the needs of the community without bankrupting the developers.  The impact fees should include a rational inflationary adjustment for future funding for transportation.
• Encourage the Regional Transportation Commission to stabilize the street credit program before stakeholders abandon the idea to promote developer-built highway and street improvements. 
• The new OSHA training requirements have placed huge cost and time burden on the construction industry.  Employees will be required to have training certification on January 1, 2010.  The industry has absorbed the cost during a troubled time without complaint.  We need to participate with OSHA during the transition period to coordinate the many unanswered questions that could result in greater financial impact.
• Encourage the Contractor Board to revisit their bonding policies.  The method used for surety should be consistently applied and not exceedingly expensive.
• We appreciate the local governments’ delay in the adoption of new and costly codes until a reasonable time after recovery.  Our Infrastructure/Planning/Codes Committee will continue to work with the many agencies on issues such as wetland, drainage, flood plain, fire codes, building codes, green standards, mapping systems, energy issues and more.
• Assist the School District in their 2010 efforts to design a Capital Improvement Program to administer the important future of education.  We have promoted greater accountability of voter-approved bond and rollover bond funding for new schools.  The School District has been open to accountability and is reprogramming to meet the challenge.
• Assume a role with Truckee Meadows Water Authority (TMWA), Western Regional Water Commission and Regional Planning on policies governing the balance of identified water resources and land use.  The Builders Association of Northern Nevada was successful in 2009 in opposing efforts to use water planning to trigger negative growth impacts and possible economical collapse in Truckee Meadows.  We must promote adequate Truckee River storage to meet drought year demands.  The Western Regional Water Commission must oversee cost effective importation and resource management that adds resources to our existing system which will help stabilize our economy by increasing availability of water beyond 2050.
• Provide support in the merger of TMWA and Washoe County Water Resources (WCWR).  Further ,we will promote TMWA and WCWR providing water rights through acquisition and regional conservation plans designed to use our resources efficiently.
• Last but not least – the Builders Association of Northern Nevada will resolve itself to curtail the continuing drain on Nevada’s contractors and on our economy because of the many needless construction defect claims.  The construction industry is facing a very serious crisis as providers of general liability and construction liability leave the state. NRS Chapter 40 must be changed to include the right to repair (remedy/fix/cure) before going to court and right to release from liability.  We will support meaningful tort reform on frivolous class action construction defect lawsuits to include caps on damages which will open up the market to carriers.  Homeowners must be provided the assurance the defect will be fixed and the contractor the ability to perform the fix. 

   The question the majority stakeholders must ask in 2010 is, “Do our community leaders recognize the new economic landscape in Northern Nevada”?  Northern Nevadans seem to be much more attuned to the obvious relationship between the housing industry and economy.  Scoffing at the economic benefits of housing and growth is no longer debatable. Despite the state of the economy and recognition of growth's role in strengthening it, there was still reluctance in 2009 by government to embrace more sensible postures toward recovery but I believe the time of transition is occurring.  I am optimistic that the challenges of 2010 will come and go with success toward the housing market and economy.

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(For more information on how to make a difference for your business and the industry, or for how other communities nationwide have come up with ways to jump start construction through a reduction of up-front fees and costs, contact Jess Traver, the Builders Association of Northern Nevada’s Government Affairs Director, at 775-329-4611 or email jesst@thebuilders.com)