Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:12/04/2013
ATTENDANCE
Time:08:43 AM to 01:29 PM
Fischer
X
Jahn
X
Place:SCR 356
Renfroe
E
Szabo
*
This Meeting was called to order by
Vigil
X
Senator Schwartz
Schwartz
E
This Report was prepared by
Bo Pogue
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
Metro State U. Denver FY 2014-15 Capital Request
Judicial Branch FY 2014-15 Capital Request
History Colorado FY 2014-15 Capital Requests
CSU System Overview
CSU FY 2014-15 Capital Requests and Five Year Need
Colorado Mesa University FY 2014-15 Capital Requests
Colorado Community Colleges System Overview
Arapahoe Comm. College FY 2014-15 Capital Request
Front Range CC FY 2014-15 Capital Requests
Otero Junior College FY 2014-15 Capital Request
Pikes Peak CC FY 2014-15 Capital Requests
Red Rocks CC FY 20104-15 Capital Request
Trinidad State JC FY 2014-15 Capital Request
Western State CO U. FY 2014-15 Capital Request
UNC Overview and Five-Year Projection of Need
OSA Annual Report and Controlled Maintenance Overview		Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only

08:44 AM -- Metro State University Denver FY 2014-15 Capital Request

The committee was called to order. A quorum was present. Dr. Stephen Jordan, President, Mr. Steve Kreidler, Vice President of Administration, Finance, and Facilities, and Mr. Sean Nesbitt, Director of Facilities Planning, Metropolitan State University of Denver (Metro State), presented the university's FY 2014-15 capital construction request for the Aviation, Aerospace, and Advanced Manufacturing Building. Committee members received a packet of letters in support of the project (Attachment A). Dr. Jordan provided some background on Metro State and its mission. Dr. Jordan then provided an overview of the FY 2014-15 capital request, discussing the merits of constructing a building dedicated to the aviation and aerospace industries. Dr. Jordan responded to questions regarding job growth in the aviation and aerospace industries, and the land grant status of Metro State.

131204 AttachA.pdf131204 AttachA.pdf

08:56 AM

Discussion ensued regarding the source of the cash-funded portion of the Aviation, Aerospace, and Advanced Manufacturing Building project.



08:58 AM -- Judicial Branch FY 2014-15 Capital Request

Mr. David Kribs, Director of Financial Services, Judicial Branch, presented the department's FY 2014-15 capital request for the Ralph L. Carr Justice Center Certificates of Participation (COP) Payment. Mr. Kribs was joined by Mr. Ed Nichols, President, and Mr. Joseph Bell, Vice President of Finance, Facilities, and Regional Museums, History Colorado, because the financing for the COP payment is coupled with the New Colorado History Museum COP Payment. Mr. Kribs explained this arrangement. Mr. Nichols discussed History Colorado's COP payment. Ms. Kori Donaldson, Legislative Council Staff, explained that these COP payments are shown as separate requests in the FY 2014-15 capital request list.

09:02 AM -- History Colorado FY 2014-15 Capital Requests

Mr. Nichols and Mr. Bell presented five FY 2014-15 capital construction requests for History Colorado. Mr. Nichols referenced the New Colorado History Museum COP Payment request, which was discussed earlier, and provided an overview of the Regional Museum Preservation Projects request. Mr. Nichols next provided an overview of the Georgetown Loop Business Capitalization Program request. Mr. Nichols provided an overview of the Lebanon Mill Dam Restoration project, which is associated with the Georgetown Loop Railroad. Committee members received a packet of letters in support of these two projects (Attachment B). Finally, Mr. Nichols provided an overview of the Pearce McAllister Renovation capital request. Discussion ensued regarding the potential for funding History Colorado's state-funded requests. Mr. Bell responded to questions regarding the location of the Pearce McAllister Cottage, the proposed uses of the cottage once renovated, and the potential rental rate for the property once the project is complete.

131204 AttachB.pdf131204 AttachB.pdf

09:14 AM

Mr. Nichols responded to questions regarding History Colorado's plans to purchase additional rolling stock for the Georgetown Loop Railroad. Discussion ensued regarding the committee's recent tour of the Georgetown Loop Railroad, and the importance of maintaining the railroad. Mr. Nichols and Mr. Bell responded to questions regarding the cash-funded portion of the Georgetown Loop Business Capitalization Program request. Mr. Bell responded to questions regarding water rights held by History Colorado at the Georgetown Loop Railroad, and the impact of the Lebanon Mill Dam Restoration project on these water rights.

09:20 AM -- CSU System Overview

Mr. Richard Schweigert, Chief Financial Officer, and Dr. Michael Martin, Chancellor, Colorado State University (CSU) System, provided an overview of the university system. Dr. Martin discussed the origins of the CSU system, accolades received by the system, and enrollment at the system's constituent institutions. Dr. Martin discussed the economic impact of the CSU system, and the system's retention and graduation rate. He also discussed the importance of facilities to the CSU system's mission. Discussion ensued regarding the CSU system's land grant status, and the land grant mission in general.

09:30 AM

Mr. Schweigert provided an overview of the CSU system's capital assets, and discussed its capital needs. He also discussed funding sources for meeting these capital needs. Mr. Schwiegert responded to questions regarding funding for CSU's capital requests during the out-years, with specific reference to the Chemistry Building Addition on the main Fort Collins campus. Discussion ensued regarding funding for these projects. Dr. Martin discussed CSU-Pueblo's service to certain demographics.




09:37 AM -- CSU FY 2014-15 Capital Requests and Five Year Need

Ms. Amy Parsons, Vice President of Operations, CSU, provided an overview of CSU's FY 2014-15 capital requests, two-year projection of cash need, and five-year projection of need. Ms. Parsons first provided an update on capital projects already underway. Ms. Parsons provided an overview of the Chemistry Building Addition project. Ms. Parsons next provided an overview of the Shepardson Building Renovation and Expansion and Warner College of Natural Resources Addition projects. Ms. Parsons also discussed the San Luis Valley Research Center project. Ms. Parsons then provided an overview of CSU's two-year projection of cash need. Mr. Schweigert discussed CSU's participation in the renovation of the National Western Stock Show campus. Ms. Parsons provided the details of this project.

09:48 AM

Ms. Parsons and Mr. Schweigert responded to questions from the committee on the projects currently underway at CSU and the university's capital requests.

09:57 AM

Mr. Craig Cason, Physical Plant Director, CSU-Pueblo, provided an overview of CSU-Pueblo's FY 2014-15 capital requests and controlled maintenance projects. Committee members received a collection of slides providing the basis for Mr. Cason's presentation (Attachment C). Mr. Cason first provided an overview of the Soccer and Lacrosse Stadium Complex project. Mr. Cason next provided an overview of the General Classroom Building project. Mr. Cason also provided an overview of the cash-funded Lory Student Center Revitalization project. Finally, Mr. Cason discussed the university's Psychology Building Renovation and Addition project. Mr. Schweigert and Dr. Martin commented on the CSU-Pueblo campus.

131204 AttachC.pdf131204 AttachC.pdf

10:07 AM

Ms. Parsons responded to a committee request to further expand on the university's two-year projection of cash need list which includes the Temple Grandin Center for Equine Assisted Therapies and the Biology Building projects.

10:10 AM -- Colorado Mesa University FY 2014-15 Capital Construction Requests

Ms. Donaldson discussed the changes to the schedule due to the weather. Mr. Bo Pogue, Legislative Council Staff, presented the three capital requests from Colorado Mesa University on behalf of the university's representatives, who were grounded in Grand Junction due to the weather. Mr. Pogue first discussed the Tomlinson Library Addition and Renovation project. Mr. Pogue next discussed the university's Health Sciences Department Remodel project. Finally, Mr. Pogue discussed the university's Combined Cooling, Heating, and Power System project. Mr. Pogue stated that the committee would make an effort to have President Tim Foster and Pat Doyle, Vice President for Administrative Service and Finance, Colorado Mesa University, brief the committee on these projects in person during the session.



10:46 AM -- Colorado Community Colleges System Overview

Dr. Nancy McCallin, President, and Mr. Mark Superka, Vice President of Finance and Administration, Colorado Community College System, provided an overview of the system. Dr. McCallin provided an update on recently funded community college capital projects, and a history of funding for capital projects on community college campuses. Dr. McCallin also provided an overview of FY 2014-15 capital requests for community colleges, and funding sources for these projects. Dr. McCallin discussed the community college curriculum, and controlled maintenance needs among the community colleges.

10:55 AM -- Arapahoe Community College FY 2014-15 Capital Request

Dr. Diana Doyle, President, and Mr. Joe Lorenzo, Chief Financial Officer, Arapahoe Community College, presented the FY 2014-15 Science and Health Lab Renovation capital construction request. Dr. Doyle provided an overview of the project and discussed its merits. Discussion ensued regarding the source of cash funds for the project.

11:02 AM -- Front Range Community College FY 2014-15 Capital Requests

Mr. Andy Dorsey, President, Front Range Community College (FRCC), presented two FY 2014-15 capital construction requests. Mr. Dorsey provided an overview of the Allied Health and Nursing Building project on FRCC's Larimer campus, and discussed the need to construct the building. He discussed funding sources for this project. Discussion ensued regarding enrollment at the FRCC Larimer campus. Mr. Dorsey provided an overview of the Central Plant Upgrade capital renewal project on the FRCC Westminster campus. Mr. Dorsey responded to questions regarding the number of chillers and heaters needing replacement under the Central Plant Upgrade project. Mr. Dorsey responded to questions regarding power generation at both the Larimer and Westminster campuses.

11:12 AM

Mr. Dorsey responded to the proposed location of the Allied Health and Nursing Building on the Westminster campus.

11:13 AM -- Otero Junior College FY 2014-15 Capital Request

Mr. Pat Malott, Vice President for Finance and Administration, Otero Junior College (OJC), presented the FY 2014-15 Agricultural Science Program Remodel capital construction request. Mr. Malott explained the improvements to be made under the project and discussed its need. Mr. Malott responded to questions regarding enrollment at OJC, and a student transfer arrangement between OJC and CSU. Dr. McCallin discussed community college enrollment trends. Discussion ensued regarding the drivers of these trends.

11:21 AM -- Pikes Peak Community College FY 2014-15 Capital Requests

Mr. Superka provided an overview of Pikes Peak Community College's FY 2014-15 capital construction requests in the absence of Dr. Lance Bolton, president of the college. Mr. Superka read Dr. Bolton's remarks about the Student Learning Commons and Theatre, Downtown Studio Campus project. Mr. Superka responded to questions regarding the "black box theatre" component of the project. Mr. Superka next read Dr. Bolton's remarks about the college's Aspen Building Student Services Renovation cash-funded request. Discussion ensued regarding the High Performance Certification Program component of the project.



11:27 AM -- Red Rocks Community College FY 20104-15 Capital Request

Dr. Michele Haney, President, and Ms. Peggy Morgan, Vice President for Finance and Administration, Red Rocks Community College, presented the college's FY 2014-15 Health Professions and Science Building capital construction project for the Arvada campus. Dr. Haney discussed the college's programming and provided an overview of the project. She discussed funding sources for the project, and plans to reconfigure campus access. Discussion ensued regarding the source of cash funding for the project.

11:34 AM -- Trinidad State JC FY 2014-15 Capital Request

Mr. Michael Jolly, Vice President of Finance and Administration, Trinidad State Junior College, presented the college's FY 2014-15 New Valley Campus Facility capital construction request. Mr. Jolly explained the project and discussed the need to construct a new facility in Alamosa. Discussion ensued regarding the priority rank assigned to the project by the Colorado Commission on Higher Education and the Governor's Office of State Planning and Budgeting. Discussion ensued regarding community support for the project, and a parcel of land donated to the college as a site for the new facility. Discussion followed regarding the source of cash funding for the various community college projects.

11:43 AM -- Western State Colorado University FY 2014-15 Capital Request

Mr. Brad Baca, Interim President, Ms. Julie Feier, Interim Chief Operating Officer, and Mr. Todd Wheeler, Chair, Board of Trustees, Western State Colorado University (WSCU), presented the college's FY 2014-15 Quigley Hall Renovation capital construction request. They were joined by two WSCU students: Ms. Natalie Kinsey and Mr. Scott Bird. Mr. Baca provided some opening remarks about the capital process, and some background on WSCU. Mr. Baca provided a ten-year overview of capital construction undertaken on the campus, and discussed the Quigley Hall Renovation project. Ms. Kinsey discussed her tenure at WSCU, and some of the deficiencies in Quigley Hall. Mr. Bird discussed his reasons for attending WSCU, and provided further detail about Quigley Hall's deficiencies.

11:57 AM

Representative Fischer discussed a recent legislative tour of WSCU. Discussion ensued regarding the potential for the university to contribute cash funding for the Quigley Hall project. Mr. Wheeler provided additional remarks about the deteriorated condition of Quigley Hall. Discussion followed regarding the priority ranking for the Quigley Hall project.

12:03 PM -- UNC Overview and Five-Year Projection of Need

Dr. Kay Norton, President, and Mr. Kirk Leichliter, Assistant Vice President for Facilities Management, University of Northern Colorado (UNC), provided an overview of the university and presented its five-year projection of capital need. Dr. Norton provided an overview of UNC's capital needs going forward, and discussed potential funding sources for projects on the university's five-year projection of capital need list. Dr. Norton also discussed some potential cash-funded projects that UNC may undertake in the future, and the role of controlled maintenance funding. Dr. Norton responded to questions regarding UNC's enrollment and student fee and tuition structure.

12:16 PM

The committee recessed.



12:22 PM -- OSA Annual Report and Controlled Maintenance Overview

The committee returned to order. Mr. Larry Friedberg, State Architect, Mr. Rod Vanderwall, Manager for Energy Programs, and Mr. Mike Karbach, Manager for Real Estate Programs, Office of the State Architect within the Department of Personnel and Administration, presented the State Architect Annual Report and an overview of recommended FY 2014-15 controlled maintenance projects. Committee members received the Office of the State Architect FY 2014-15 Annual Report; A copy of the report is on file with Legislative Council Staff. Attachment D contains the report's executive summary and FY 2014-15 controlled maintenance recommendations.). Mr. Friedberg briefed the committee on the contents of the annual report, and walked the committee through the report's executive summary, discussing the state's real estate inventory.

131204 AttachD.pdf131204 AttachD.pdf

12:32 PM

Mr. Friedberg continued briefing the committee on the annual report, discussing the history of state funding for controlled maintenance. Mr. Friedberg responded to questions regarding the state's progress toward funding the controlled maintenance backlog for its facilities, and the plan to ensure state real estate assets are maintained.

12:44 PM

Mr. Friedberg continued to brief the committee on the annual report, focusing on the Office of the State Architect's recommendations for funding controlled maintenance in FY 2014-15. He explained the three levels of controlled maintenance recommendations. Mr. Friedberg responded to questions regarding the explanations of the varying levels of controlled maintenance requests in the annual report. Discussion ensued regarding the recommended FY 2014-15 controlled maintenance funding by the Office of State Planning and Budgeting as compared to the Office of the State Architect's recommendation that controlled maintenance be funded at a level commensurate to one percent of the state's current real estate replacement value.

12:55 PM

Mr. Friedberg discussed the process by which state controlled maintenance projects are prioritized. Mr. Friedberg responded to questions regarding the potential effect of the Capitol Complex Master Plan capital construction project on the controlled maintenance process. Mr. Friedberg next briefed the committee on the Controlled Maintenance Emergency Fund. Mr. Friedberg responded to questions regarding reimbursement by insurance companies for damage to state real estate assets during emergencies.

01:08 PM

Mr. Vanderwall provided an overview of energy management activities overseen by the Office of the State Architect, and savings realized under energy performance contracting. He next discussed the High Performance Certification Program, and tracking of projects constructed to high performance standards. Mr. Vanderwall discussed the state's cumulative valuation of energy performance contracts. Mr. Vanderwall responded to questions regarding the savings realized by the state under the High Performance Certification Program. Mr. Karbach discussed the acquisition and disposition of real estate by the executive branch during FY 2012-13, and the state's leased inventory for the fiscal year. Mr. Karbach responded to questions regarding the potential fiscal impact of relocating state programs that are currently located in leased space into state-owned buildings. Mr. Friedberg discussed analysis of leased space to be conducted under the Capitol Complex Master Plan capital project.


01:23 PM

Mr. Friedberg provided an update on the Capitol Dome Renovation project. Discussion ensued regarding the committee's upcoming meeting schedule.

01:29 PM

The committee adjourned.