Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:03/12/2015
ATTENDANCE
Time:07:32 AM to 08:54 AM
Becker K.
*
Brown
X
Place:SCR 356
Kefalas
X
Sonnenberg
X
This Meeting was called to order by
Baumgardner
X
Representative Vigil
Vigil
X
This Report was prepared by
Matt Becker
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
Higher Education Revenue Bond Intercept Program
DHS Grand Junction Regional Center
Other Business		Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only


07:33 AM -- Higher Education Revenue Bond Intercept Program

The meeting was called to order. A quorum was present. Mr. Jon Forbes, Deputy State Treasurer, came to the table to discuss the state's Higher Education Revenue Bond Intercept Program. The committee received a handout prepared by Mr. Forbes (Attachment A). Mr. Forbes discussed the history of the Intercept Program, the State Treasurer's role in the program, and debt service obligations related to the program. In response to a committee question regarding withholding funds from a higher education institution in the case of default, Mr. Forbes discussed current statute related to repayment to the treasurer's office. Discussion ensued on the obligation of institutions for debt service payments.

150312 AttachA.pdf150312 AttachA.pdf

07:41 AM

In response to a committee question, Mr. Forbes discussed the ability for institutions to prepay any repayment owed to the state treasurer's office if institutional funds become available. Discussion ensued on the taxpayer liability of the intercept program. Mr. Forbes also discussed the eligibility requirements of the program, including a minimum credit rating and a minimum debt service coverage ratio. Mr. Forbes responded to a committee question regarding student fees and tuition as a source of funds for debt service repayment. He also discussed other sources of revenue used to make payments and the required debt service coverage ratio.


07:51 AM

In response to a committee question, discussion ensued on the success of the program since its inception.

07:53 AM -- DHS Grand Junction Regional Center

Ms. Susan Beckman, Director of the Office of Administrative Solutions for the Department of Human Services (DHS), and Mr. Steve Brooks, Principal with Oz Architecture, came to the table to discuss the Grand Junction Regional Center (GJRC) Facilities Assessment. Committee members received a copy of the presentation, the executive summary of the facilities assessment, and another handout with detailed figures and photographs, all prepared by DHS (Attachments B, C, and D, respectively). Ms. Beckman discussed the reasons behind the report and the scope of the assessment. She also updated the committee on the current state of the regional center.

150312 AttachB.pdf150312 AttachB.pdf150312 AttachC.pdf150312 AttachC.pdf150312 AttachD.pdf150312 AttachD.pdf

Mr. Brooks discussed the consultant team, the GJRC site, the number of clients served at the campus (currently less than 30), the buildings assessed, and the two phases of the assessment. Ms. Beckman responded to a committee question regarding the nature of intermediate care facilities. Mr. Brooks discussed the assessment phase and the alternatives analysis phase. Alternatives analyzed include downsizing operations on site or decommissioning operations on site. The first option of downsizing operations includes three alternatives: sell the remaining property; renovate the remaining buildings to lease; and sell the buildings and property. The second option of decommissioning operations at GJRC includes three additional alternatives: renovating the buildings to lease out, selling the property outright, and leasing a new 30,000 square-foot facility from a private building owner in Grand Junction.

08:14 AM

In response to a committee question regarding communication with local stakeholders, Ms. Beckman discussed the agency's outreach to real estate professionals and government officials in Grand Junction. Discussion ensued on the programmatic needs of DHS facilities in Grand Junction, the operational costs at the site, and the cost of renovating a single building to house the 23 clients currently on site. In response to a committee question regarding the management decisions of the GJRC property, Ms. Beckman discussed the findings of the facilities assessment and the potential options for moving forward.

08:31 AM

Ms. Nikki Hatch, Deputy Director of Operations for DHS, came to the table to discuss the Regional Center Task Force (RCTF) and the programmatic aspects of the GJRC. She also discussed the changing nature of community-based care across the country. She stated, while decreased, there is still a need for institutional care in the region. Discussion continued on the options presented in the facilities assessment. In response to a committee question regarding the central heating plant on campus, Mr. Brooks discussed the recommendation to shut down the plant and to provide a separate HVAC system for any new building that might be constructed.

08:41 AM

Ms. Hatch responded to a committee question regarding the recommendations from the RCTF and possible capital budget requests for next year's legislative session. Ms. Kori Donaldson, Legislative Council Staff, responded to a committee question regarding the committee's role in deciding on options for the future of the GJRC.





08:46 AM -- Other Business

Ms. Donaldson discussed details related to Senate Bill 15-211, which concerns automatic funding for capital assets. Ms. Esther van Mourik, Office of Legislative Legal Services, came to the table to discuss potential amendments to the legislation. She also clarified that the intent of the bill is to fund required set asides from the General Fund for state-funded projects. She discussed ongoing conversations with the Controller's Office and the Attorney General's Office and other technical issues related to the bill. Discussion ensued on the possible inclusion of higher education cash-funded projects in the bill.

08:54 AM

The committee adjourned.