Bill Summary for Bill Number Western State College Cash-Funded Requests (3)

Date: 06/16/2010

Final
Western State College Cash-Funded Requests (3)

COMMITTEE ON CAPITAL DEVELOPMENT

Votes: View-->	Action Taken:
Approve the request for cash funds spending author Approve the request for cash funds spending author Approve Western State College's revised FY 2010-11	PASS Pass Without Objection PASS

09:11 AM -- Western State College Cash-Funded Requests

Dr. Jay Helman, President, and Mr. Brad Baca, Vice President for Finance and Administration, both of Western State College, presented two FY 2010-11 cash-funded requests subject to the Higher Education Revenue Bond Intercept Program including: (1) Shavano Apartment Complex; and (2) Paul Wright Gymnasium Renovation. Committee members received a summary of the requests, prepared by Legislative Council Staff (Attachments B and C, respectively). President Helman and Mr. Baca also presented a revised two-year projection of cash need. Committee members received a copy of the revised projection, prepared by Legislative Council Staff (Attachment D). Mr. Baca discussed the structure of a capital fee approved by students in spring 2010 and outlined the need for both projects. He said the student capital fee will also finance some deferred maintenance. In response to a question, Mr. Baca explained that by 2020 the student fee will be $2,688 per full-time student, or $97 per credit hour for a maximum of 15 credit hours. Discussion ensued about other student fees levied by the college and the availability of financial aid to offset the student capital fee for certain students.

09:22 AM

Mr. Baca addressed a question about changes made to the Shavano Apartment Complex request since it was last considered by the committee in December 2009. He explained that the college has since completed a program plan for the project which helped it to better define its housing needs. Mr. Baca addressed a question about where students currently choose to live since the existing facility has only a 65 percent occupancy rate. In response to a question, Mr. Baca explained that there is asbestos in the existing apartment complex and that abatement moneys are built into the budget. Discussion turned to moneys available from student housing and capital fees for future operating and maintenance costs for the two requested facilities. President Helman answered a question about the recent student vote for a new capital fee and said about 40 percent of the student population participated. Mr. Baca said the college projects an 80 percent occupancy rate for the new apartment complex, which will generate about $1.2 million more per year in housing revenues. He added that he expects the actual occupancy rate to far exceed the projections. Discussion returned to the cost of the student capital fee. Mr. Baca explained the expected increase in housing fees for the new student apartments.

09:31 AM

Discussion returned to the student capital fee. Mr. Baca said the fee is intended to be a permanent fee. However, once the debt is repaid, the college will likely ask students whether they want the fee to be used for other capital projects or to be retired. Mr. Baca answered questions about the average annual payment for the bonds that will be issued for the projects and whether there would be a corresponding increase in tuition.


BILL:	Western State College
TIME:	09:34:42 AM
MOVED:	Schwartz
MOTION:	Approve the request for cash funds spending authority for the Paul Wright Gymnasium Renovation project ($32,000,599 CF) and recommend it to the Joint Budget Committee. The motion carried on a vote of 4-2-0.
SECONDED:
		VOTE
	Renfroe	No
	Schwartz	Yes
	Sonnenberg	No
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes

Final YES: 4 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	Western State College
TIME:	09:35:45 AM
MOVED:	Schwartz
MOTION:	Approve the request for cash funds spending authority for the Shavano Apartment Complex project ($20,044,500 CF) and recommend it to the Joint Budget Committee. The motion carried on a vote of 4-2-0.
SECONDED:
		VOTE
	Renfroe	No
	Schwartz	Yes
	Sonnenberg	No
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes

Final YES: 4 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	Western State College
TIME:	09:37:09 AM
MOVED:	Riesberg
MOTION:	Approve Western State College's revised FY 2010-11 two-year projection of cash need ($52,045,099 CF). The motion carried on a vote of 4-2-0.
SECONDED:
		VOTE
	Renfroe	No
	Schwartz	Yes
	Sonnenberg	No
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes

Final YES: 4 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS