Joint Committee Committee on Capital Development (12/16/2015)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	12/16/2015	ATTENDANCE

Time:	09:11 AM to 12:22 PM	Becker K.	*
		Brown	X
Place:	SCR 356	Kefalas	X
		Sonnenberg	E
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:
Office of Information Technology Colorado School of Mines Colorado Parks and Wildlife Colorado School for the Deaf and the Blind Department of Military and Veterans Affairs Office of the State Architect Annual Presentation		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

09:11 AM -- Office of Information Technology

The committee was called to order. A quorum was present. Mr. Peter Bangas, Public Safety Communications Network Manager, representing the Governor's Office of Information Technology (OIT), discussed the office's FY 2016-17 capital budget request for its Public Safety Communications Network Microwave Infrastructure Replacement project. Mr. Bangas discussed technical aspects of the Digital Trunked Radio System (DTRS) and the associated transmitter towers and infrastructure. Committee discussion ensued on the electronic radio frequency radios to be replaced at various sites across the state and on the project schedule.

09:20 AM

Mr. Bangas discussed the availability of maintenance parts for the DTRS. Committee discussion ensued on the impact to the operating budget, the request for FTEs associated with the project, past funding requests for and appropriations to the project, and vendor support for the DTRS. Mr. Bangas discussed the critical nature of several sites, security protocols, backup systems, and weaknesses within the DTRS.

09:32 AM

Committee discussion ensued on the vulnerability of the DTRS system to external cyber attacks and the status of the appropriation to the project in FY 2015-16. Mr. Bangas stated the request for proposal is being finalized, with a contract expected to be issued to a vendor in March 2016.

09:37 AM -- Colorado School of Mines

Dr. Paul C. Johnson, President, and Ms. Kirsten Volpi, Chief Financial Officer, both representing the Colorado School of Mines, explained the school's FY 2016-17 capital budget request for its Green Center Renovation project. Committee members received an overview of the project (Attachment A). Dr. Johnson discussed recent accomplishments, enrollment trends, retention and graduation rates, and research awards for the school.

151216 AttachA.pdf

09:47 AM

Dr. Johnson discussed the school's involvement in K-12 education outreach. Ms. Volpi explained the Green Center Renovation project, including the project scope, cost, and history of capital investment to the building. Committee discussion ensued on student success opportunities provided by the university.

09:54 AM -- Colorado Parks and Wildlife

Mr. Bob Broscheid, Director, and Mr. Steve Cassin, Chief Financial Officer, both representing Colorado Parks and Wildlife (CPW), discussed the division's FY 2016-17 capital budget requests. Mr. Broscheid discussed accomplishments of CPW over the past two years, including property acquisitions and changes to its financial management and sustainability.

09:59 AM

In response to a committee question on annual expenditures, Mr. Cassin stated CPW's annual expenditures are approximately $200 million. Mr. Cassin explained its requests for Land and Water Acquisitions, Wildlife Areas; Park Infrastructure and Facilities; Infrastructure and Real Property Maintenance, Wildlife Areas; Land and Water Acquisitions, State Parks; and Chatfield Reservoir Reallocation Project Mitigation. Mr. Cassin explained CPW's process for acquiring property and the source of funds for the Land and Water Acquisitions, Wildlife Areas line item.

10:07 AM

Mr. Cassin explained the source of cash funds for the Park Infrastructure and Facilities line item. He also explained the types of projects funded by the line item, including campgrounds, dams, and other facilities at state parks. He also explained the types of projects funded under the Infrastructure and Real Property Maintenance, Wildlife Areas line item, the types of property acquired by the Land and Water Acquisitions, Wildlife Areas line item, and CPW's request for funding for the Chatfield Reservoir Reallocation Project Mitigation. Mr. Cassin also updated the committee on the current status, financial health, and reserve policy for the Wildlife Cash Fund.

10:12 AM
Committee discussion ensued on maintenance to be performed on the Willow Creek Dam and the use of Highway User Tax Fund monies for the Park Infrastructure and Facilities line item.

10:16 AM

The committee recessed.

10:47 AM -- Colorado School for the Deaf and the Blind

The committee returned to order. Superintendent Carol Hilty, Mr. Andy McElhany, Board Chair, and Mr. Kevyn Brown, Facilities Manager, all representing the Colorado School for the Deaf and the Blind (CSDB), presented one FY 2016-17 capital budget request: Jones and Palmer Hall Renovation. Committee members received a summary of the request and a fact sheet about the school (Attachment B). Superintendent Hilty made some opening remarks and Mr. Brown updated the committee about the work accomplished to date under the project. Mr. McElhany commented on the importance of the project and on the population served by the CSDB. Superintendent Hilty responded to question from the committee about how construction will affect the campus population. Mr. Brown explained when construction is anticipated to be completed. He also spoke about the history of the campus.

151216 AttachB.pdf

11:00 AM -- Department of Military and Veterans Affairs

Mickey Hunt, Deputy Directory, Department of Military and Veterans Affairs, updated the committee about a capital project currently underway and about three FY 2016-17 capital budget requests. Committee members received a summary of Mr. Hunt's presentation (Attachment C). Mr. Hunt responded to a question about the Grand Junction Veterans One-Stop capital request. Discussion ensued on the topic of a new land purchase required in order to relocate an existing armory or armories.

11:11 AM -- Office of the State Architect Annual Presentation

Senator Baumgardner and members of the committee commented on the importance of fully funding FY 2016-17 Level 1 controlled maintenance projects and their interest in funding some of the FY 2016-17 Level 2 controlled maintenance projects.

11:13 AM

Mr. Larry Friedberg, State Architect, Mr. Rod Vanderwall, Manager of Energy Programs, and Mr. Mike Karbach, Manager of Real Estate Programs, all representing the Office of the State Architect (OSA) within the Department of Personnel and Administration, presented the OSA annual report to the committee. The OSA provided a copy of the executive summary of the report (Attachment D). Discussion ensued on the topic of the general level of readiness of the projects included in the prioritized controlled maintenance list of projects. Mr. Friedberg and Kori Donaldson, Legislative Council Staff, answered questions about historic funding for controlled maintenance.

151216 AttachD.pdf

Mr. Friedberg introduced new staff in the OSA.

11:25 AM

Mr. Friedberg walked the committee through the executive summary. He addressed questions from the committee about the cost of the FY 2016-17 controlled maintenance projects.

11:38 AM

Mr. Friedberg continued to walk to the committee through the executive summary. He spoke about historic funding for controlled maintenance, including the types of projects funded through controlled maintenance. Mr. Friedberg next discussed the number and type of projects included in the FY 2016-17 Level 1 controlled maintenance list. He also discussed emergency project funding from the Emergency Controlled Maintenance Account. Discussion ensued about fixed funding for the emergency controlled maintenance account.

11:58 AM

Mr. Friedberg concluded his presentation with an explanation of the five-year projection of outstanding controlled maintenance need prepared by each agency. Mr. Vanderwall presented about agency use of energy performance contracts and the associated savings. He also discussed projects built to High Performance Certification Program standards. Mr. Vanderwall addressed a question about how moneys saved through energy performance contracts are spent. Mr. Friedberg addressed a question about vacant buildings in the state inventory.

12:14 PM

Mr. Karbach presented about the number of acquisitions and dispositions of real property during FY 2014-15, and about building leases and the Capitol Complex Master Plan. Mr. Friedberg and members of the committee made some closing remarks.

12:21 PM

The committee adjourned.