Joint Committee Committee on Capital Development (01/27/2015)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	01/27/2015	ATTENDANCE

Time:	07:34 AM to 08:55 AM	Becker K.	X
		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:
Other Business University of Northern Colorado 15-16 Request CSU System Requests		Witness Testimony and/or Committee Discussion Only Two-Year Cash List Approved Two-Year Cash List Approved

07:34 AM -- Other Business

The meeting was called to order. A quorum was present. Ms. Kori Donaldson, Legislative Council Staff, discussed recent actions by the Joint Budget Committee (JBC) regarding capital projects. The committee received an updated list of FY 2015-16 capital budget requests (Attachment A). Ms. Donaldson discussed four projects that the JBC recommended to be considered by the Capital Development Committee (CDC) as regular FY 2015-16 capital budget requests rather than FY 2014-15 supplemental budget requests. In response to a committee question regarding the projects not prioritized by the Governor's Office of State Planning and Budgeting (OSPB), Ms. Donaldson stated that while these projects were not initially prioritized by OSPB, some of them have been recommended for funding. In response to a committee question regarding the new projects recommended for funding, Ms. Donaldson stated that this does not mean other projects are no longer recommended for funding.

150127 AttachA.pdf

07:39 AM -- University of Northern Colorado 15-16 Request

Dr. Kay Norton, President, Dr. Robbyn Wacker, Provost, and Mr. Kirk Leichliter, Assistant Vice President for Facilities, all representing the University of Northern Colorado (UNC), came to the table to discuss the university's FY 2015-16 capital budget request for the Campus Commons project. Committee members received a summary of the project, prepared by Legislative Council Staff, and a handout from the University (Attachments B and C, respectively). Dr. Norton discussed the three main goals of the project: increasing the number of students who enroll and succeed at UNC; addressing the basic curricular needs of students in performing and visual arts, business, nutrition, and tourism/hospitality; and creating a connecting point for UNC and the broader community. Discussion ensued on community support for the project. Dr. Wacker discussed the project in more detail, including student services that will be offered. She also discussed an example of a typical student in need of financial aid assistance. She explained that this student will be able to get all of the services he or she needs from the one-stop integrated concept provided by the Campus Commons project. She also discussed the performance hall that will be a part of the project.

150127 AttachB.pdf

150127 AttachC.pdf

07:50 AM

In response to a committee question regarding student enrollment, Dr. Norton responded that the university expects to see increased enrollment as a result of the project. She also discussed the university's master plan. In response to a committee question regarding support from the city of Greeley, Dr. Norton explained recent cooperative partnerships with the city. In response to a committee question regarding the source of cash funds for the project, Dr. Norton stated the university would participate in the Higher Education Revenue Bond Intercept Program. Mr. Leichliter discussed the projects listed on the university's two-year projection of cash need. Dr. Norton explained the quality of the university's music programs.


BILL:	University of Northern Colorado
TIME:	08:01:00 AM
MOVED:	Baumgardner
MOTION:	Approve the new projects listed on the University of Northern Colorado two-year projection of cash need. The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Baumgardner	Yes
	Vigil	Yes

Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

08:01 AM -- CSU System Requests

Dr. Michael Martin, Chancellor, Dr. Dorothy Horrell, Chair of the Board of Governors, Mr. Rico Munn, member of the Board of Governors, and Mr. Scott Johnson, member of the Board of Governors, all representing Colorado State University (CSU), came to the table to discuss the university's FY 2015-16 capital budget requests and its need for capital projects. Committee members received a summary of the projects, prepared by Legislative Council Staff (Attachment D). Dr. Horrell discussed the members, functions, and duties of the CSU Board of Governors. She also discussed the importance of capital assets to the success of the university and its students. Dr. Martin discussed the uniqueness of the university's three campuses: Fort Collins, Pueblo, and the Global Campus. He also discussed the land-grant status of the Fort Collins campus and its contribution to Science, Technology, Education, and Math (STEM) education.

150127 AttachD.pdf

08:12 AM

Dr. Tony Frank, President, Mr. Mike Rush, University Architect, and Mr. Steve Hultin, Facilities Director, all representing CSU-Fort Collins, came to the table to discuss the campus' three FY 2015-16 capital budget requests and its two-year projection of cash need. Dr. Frank discussed recent investments in capital assets across the campus. He noted that a majority of the investments have been STEM-related. Dr. Frank also discussed tuition as the second largest source of revenue for the university. While the university has seen increases in enrollment in each year over the last seven years, due in part to the investment in capital assets, Dr. Frank recognized the on-going needs of the university. Mr. Hultin discussed recent capital projects completed at the university. He discussed the Chemistry Building project and the second phase of funding requested for this year, as well as the outdated mechanical systems in the building. Mr. Hultin also discussed the Warner College of Natural Resources Addition and the Shepardson Building Renovation and Expansion projects.

08:23 AM

In response to a committee question regarding the Chemistry Building, Mr. Rush discussed the budget for professional services and utilities work. Mr. Rush also explained the physical utilities work for the project. Dr. Frank then discussed the projects listed on the university's two-year projection of cash need. He explained the Multi-purpose On-Campus Stadium project and how planning for it originated over three years ago. He also discussed the analysis and public testimony that have occurred on behalf of the project. In October 2012, the university and the Board of Governors agreed to begin fundraising and planning for the project. He stated that the university was too aggressive in its initial proposal and has since revised the scope of the project. As planning has progressed, the university became increasingly concerned with the alternatives of renovating the current stadium, Hughes Stadium, at a total cost of over $60 million. Dr. Frank stated that the university had limited donor support for the alternative project, and it would have greatly impacted the university's general fund. Instead, the university turned to pursuing an on-campus stadium. Dr. Frank also discussed the financing mechanism for the $220 million project. He said the project will not use the state's Higher Education Revenue Bond Intercept Program. He also discussed the revenue projections analyzed for the project. Dr. Frank stated there are two primary consulting firms who analyze revenue projections for sports facilities in the country. The university hired both of them to provide revenue projections for the stadium project. He discussed the scenarios developed by the consultants. He summarized the financial position of the project as very strong. He also stated that the project has been subjected to extensive public testimony and that it is in the best interest of the state of Colorado. In response to a committee question regarding the total cost of the project over thirty years, including the cost of financing, Dr. Frank stated it was not unreasonable to believe that the project could cost more than $220 million. Dr. Frank also discussed the university's composite financial index score.


BILL:	CSU
TIME:	08:37:41 AM
MOVED:	Sonnenberg
MOTION:	Approve the new and revised projects listed on the Colorado State University two-year projection of cash need. The motion passed on a vote of 5-1.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	No
	Sonnenberg	Yes
	Baumgardner	Yes
	Vigil	Yes

Final YES: 5 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

08:48 AM

Dr. Lesley Di Mare, President, Mr. Karl Spiecker, Vice President for Finance and Administration, and Mr. Craig Cason, Associate Vice President for Facilities, all representing CSU-Pueblo, came to the table to discuss the university's FY 2015-16 capital budget request for the Psychology Building Renovation and Addition project. Dr. Di Mare discussed a recent campaign for capital fundraising. Mr. Spiecker discussed the Psychology Building Renovation and Addition project. He discussed the building's current use and the need to renovate the university's most heavily used building. Mr. Cason also discussed the need to upgrade the deteriorating infrastructure of the building.

08:55 AM

The committee adjourned.