Joint Committee Committee on Capital Development (12/15/2015)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	12/15/2015	ATTENDANCE

Time:	09:48 AM to 04:07 PM	Becker K.	E
		Brown	X
Place:	SCR 356	Kefalas	X
		Sonnenberg	X
This Meeting was called to order by		Vigil	X
	Senator Baumgardner	Baumgardner	X

This Report was prepared by
	Matt Becker
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Capitol Complex CSU System and National Western Center Overview CSU Pueblo Department of Human Services Department of Corrections Staff Presentation on Student Fees History Colorado Colorado Community College System Department of Public Safety Western State Colorado University University of Colorado Other Business		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

09:48 AM -- Capitol Complex

The committee was called to order. A quorum was present. Ms. Kori Donaldson, Legislative Council Staff, presented two projects that address capital need in the Capitol Complex: (1) State Capitol Building House and Senate Chamber Renovations; and (2) Replace/Restore Roof, State Capitol Building. Ms. Donaldson firrst provided an overview of the Chamber Restoration project. Ms. Donaldson responded to questions regarding the reasons for extending the Chamber Restoration project an additional phase. Ms. Donaldson provided an overview of the roof project. Ms. Donaldson responded to questions regarding whether the roof project will retain solar panels on the Capitol, and the priorities assigned to the two projects. Ms. Donaldson explained why the contingency for one of the projects is abnormally high.

09:56 AM -- CSU System and National Western Center Overview

Chancellor Tony Frank, Ms. Lynn Johnson, Vice President of Operations, and Mr. Rich Schweigert, Chief Financial Officer, Colorado State University (CSU), provided and overview of the CSU system capital outlook and need, as well as the planned National Western Center project. Committee members received a packet of slides outlining CSU's capital outlook, prepared by CSU Staff (Attachment A). Dr. Frank first discussed the National Western Center project, and then briefed the committee on capital need throughout the CSU system. Dr. Frank discussed the importance of funding controlled maintenance. Discussion ensued regarding the importance of funding controlled maintenance, and the merits of the National Western Center project. Mr. Schweigert noted some other CSU personnel in the room, and made some opening comments about CSU's capital need.

151215 AttachA.pdf

10:10 AM

Ms. Johnson responded to questions regarding donations earmarked for the Chemistry Building project. Mr. Schweigert responded to questions regarding the planning costs for the Shepardson Building Renovation and Expansion project. Mr. Schweigert noted some controlled maintenance needs on CSU campuses, and responded to a question regarding a dam project on the system's controlled maintenance request list. Mr. Schweigert discussed the merits of the National Western Center project. Discussion returned to the Shepardson Building project. Mr. Schweigert returned to briefing the committee on the CSU system capital outlook, and the system's debt outlook.

10:24 AM

Ms. Johnson discussed the scope and financing of the National Western Center project, and the potential for initiating one element of the project earlier than the rest of the project. Discussion returned to the importance of funding controlled maintenance. Dr. Frank and Ms. Johnson responded to questions regarding CSU student fees committed to capital construction, and votes undertaken by students on student fee issues. Discussion followed regarding paying down debt on capital projects.

10:34 AM -- CSU Pueblo

Mr. Karl Spiecker, Vice President for Finance, CSU Pueblo, provided an overview of recently funded capital projects at the campus, and discussed the Psychology Building Renovation and Addition project. Committee members received a packet of supporting slides prepared by CSU Pueblo (Attachment B).

151215 AttachB.pdf

10:39 AM -- Department of Human Services

Mr. Reggie Bicha, Executive Director, and Ms. Susan Beckman, Director, Office of Administrative Solutions, Department of Human Services (DHS), briefed the committee on the department's capital outlook and FY 2016-17 capital construction requests. Committee members received a packet of supporting Powerpoint slides, prepared by DHS Staff (Attachment C). Mr. Bicha provided an overview of the department's programming and supporting capital infrastructure, and then described the need for each of the five DHS FY 2016-17 capital requests. Mr. Bicha responded to questions regarding the Rifle Veterans Community Living Center. Mr. Bicha returned to briefing the committee on the department's FY 2016-17 capital requests. Ms. Beckman responded to questions regarding the continuation status of the Suicide Risk Mitigation project. Ms. Donaldson provided input on the status of the project.

151215 AttachC.pdf

10:56 AM

Mr. Bicha returned to briefing the committee on the department's FY 2016-17 capital requests. Ms. Beckman responded to questions regarding the need to build the Adams County Youth Services Center Replacement project over three years, and partnerships with local governments on the project.

11:06 AM

Mr. Bicha returned to briefing the committee on the DHS FY 2016-17 capital requests, turning to the Resident Safety, Security, Accessibility Improvements, Colorado Veterans Community Living Centers project. Mr. Bicha responded to questions regarding the maintenance of department-owned facilities by DHS, and the status of the Grand Junction Regional Center.

11:17 AM -- Department of Corrections

Mr. Richard Weems, Assistant Director of Facilities Management Services, and Mr. Dennis Dunsmore, Associate Director of Correctional Industries, Department of Corrections (DOC), presented one cash-funded FY 2016-17 capital construction request: Correctional Industries Miscellaneous Small Projects. Mr. Weems introduced the request, and Mr. Dunsmore provided an overview of the request. Discussion ensued regarding the disposition of the water rights associated with the closure of Fort Lyon. Mr. Matt Becker, Legislative Council Staff, provided input on the issue. Discussion ensued regarding contingency costs for the project.

11:28 AM -- Staff Presentation on Student Fees

Ms. Donaldson provided an overview of higher education student fees that are used to support various campus initiatives, including capital construction projects, and the process by which these fees are enacted and levied. Committee members received a memorandum on the issue, prepared by Legislative Council Staff (Attachment D). Ms. Donaldson responded to questions regarding a clause in student fee policies creating a time period during which students may protest the fee. Ms. Donaldson returned to providing an overview of student fees.

151215 AttachD.pdf

11:43 AM

Ms. Donaldson responded to questions regarding the level of engagement by students in the student fee-setting process, and the process by which governing boards consider student fees. Ms. Donaldson responded to further questions regarding the nature of academic and student purpose fees.

11:50 AM

The committee recessed for lunch.

01:20 PM -- History Colorado

The committee reconvened. Mr. Steve Turner, Vice President of Preservation Programs, and Mr. Michael Carrara, Division Director of Facilities and Regional Museums, both representing History Colorado, discussed History Colorado's FY 2016-17 capital budget requests. Mr. Turner discussed recent changes to the organizational structure, personnel, and financial management of History Colorado. He further explained History Colorado's FY 2016-17 capital budget requests: the Georgetown Loop Business Capitalization Program and Regional Museum Preservation Projects. Committee discussion ensued on the specific work to be performed under the Regional Museum Preservation Projects request.

01:28 PM -- Colorado Community College System

Dr. Nancy McCallin, President, and Mr. Mark Superka, Vice President of Finance and Administration, both representing the Colorado Community College System (CCCS), discussed the system's FY 2016-17 capital construction requests. Dr. McCallin discussed the system's recent appropriations for capital construction, its five-year projection of capital construction need, and the system's use of online instruction.

01:34 PM

Dr. Diana Doyle, President, Arapahoe Community College, came to the table to explain the college's budget request for the Learning Commons project. She explained the details of the associated library remodel and the purpose of the project.

01:37 PM

Mr. Andy Dorsey, President, Front Range Community College, came to the table to explain the college's budget request for the Health Care Career Center project. He discussed the demands for health care professions in northern Colorado and the space needs for the college's Larimer Campus.

01:40 PM

Mr. Superka came to the table to discuss Lamar Community College's request for its Vocational Trades Building project, Otero Junior College's request for its Agriculture Science Program Remodel project, and Pikes Peak Community College's request for its Student Learning Commons and Theater, Downtown Studio Campus project.

01:45 PM

Mr. Jon Brude, Chief Business Officer, and Mr. Cliff Kitchen, Director of Facilities, both representing Pueblo Community College, came to the table to explain the college's continuation request for the Davis Academic Building Renovation (Capital Renewal) project.

01:47 PM

Dr. McCallin responded to committee questions regarding the system's funding mechanisms for controlled maintenance.

01:49 PM -- Department of Public Safety

Mr. Kevin Rants, Director of Support Services, Colorado State Patrol, discussed the FY 2016-17 capital budget request for the Loma Eastbound Port of Entry Replacement project. Mr. Rants gave an update on the construction status of the project. Committee discussion ensued on the funding history for other ports of entry around the state.

01:57 PM

The committee recessed.

02:57 PM -- Western State Colorado University

The committee reconvened. Mr. Brad Baca, Executive Vice President, and Ms. Julie Feier, Chief Financial Officer, both representing Western State Colorado University, discussed the university's FY 2016-17 capital budget request for the Savage Library Renovation project. Mr. Baca updated the committee on the university's recent enrollment trends and investment in capital construction. Ms. Feier discussed the university's controlled maintenance needs. Committee discussion ensued on the re-purposed spaced that is part of the Savage Library Renovation project.

03:06 PM

Committee discussion ensued on the source of cash funds for the project, graduation and retention rates at the university, and the cost savings expected as a result of the renovation project.

03:13 PM -- University of Colorado

President Bruce Benson, University of Colorado System, discussed the system's FY 2016-17 capital construction requests. Committee members received an article titled "Giving College Administrators a Business Education" (Attachment E). President Benson discussed the university's request for legislation to change the threshold required for the committee's review of higher education cash-funded projects.

151215 AttachE.pdf

03:20 PM

Dr. Pamela Shockley-Zalabak, Chancellor for the University of Colorado, Colorado Springs, explained the university's request for its Engineering and Applied Science (EAS) Renovation project. Committee members received an overview on the project and the Colorado Springs campus' capital construction needs (Attachment F). Dr. Shockley-Zalabak also discussed current enrollment, student diversity, and ongoing research at the campus.

151215 AttachF.pdf

03:26 PM

Dr. Philip DiStefano, Chancellor for the University of Colorado Boulder, explained the university's request for its Aerospace Engineering Sciences Building project. Committee members received an overview on the project, controlled maintenance needs, enrollment, diversity, and academic rankings for the campus (Attachment G). Dr. DiStefano discussed the university's recent investment in capital construction, controlled maintenance, and energy efficiency projects. He also discussed the university's aerospace engineering program, including its national rankings, enrollment trends, and economic benefits.

151215 AttachG.pdf

03:41 PM

Committee discussion ensued on the available revenue for capital construction projects in FY 2016-17.

03:42 PM

Mr. Don Elliman, Chancellor for the University of Colorado Anschutz Medical Campus, explained the university's request for its Interdisciplinary Building and Data Center project. Committee members received an overview on the project, other cash-funded projects, academic rankings, and enrollment trends for the campus (Attachment H). Mr. Elliman spoke about the economic benefits and output of the Anschutz Medical Campus. He also discussed the bioinformatics and personalized medicine programs at the campus and their potential for growth.

151215 AttachH.pdf

03:51 PM

Ms. Lisa Douglas, Chief Financial Officer for the University of Colorado Denver, explained the university's request for its Engineering and Physical Sciences Building project. Committee members received an overview on the project, enrollment, economic impacts, and space needs for the campus (Attachment I). Ms. Douglas discussed the university's locations on both the Auraria campus and on adjacent properties in downtown Denver. She also discussed the construction status of recent cash-funded projects.

151215 AttachI.pdf

04:01 PM -- Other Business

Ms. Donaldson updated the committee on a FY 2016-17 late budget request for Colorado Parks and Wildlife and discussed possible meeting dates for the next committee meeting.

04:07 PM

The committee adjourned.