Joint Committee Committee on Capital Development (01/06/2015)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	01/06/2015	ATTENDANCE

Time:	01:38 PM to 03:16 PM	Becker K.	X
		Kefalas	X
Place:	SCR 356	Sonnenberg	X
		Szabo	X
This Meeting was called to order by		Baumgardner	X
	Representative Vigil	Vigil	X

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

Bills Addressed:		Action Taken:
Consideration of FY 2014-15 Supplemental Requests (4) Consideration of DPS FY 2014-15 Supplemental Requests (2) Overview of FY 2015-16 Capital Requests and Available Revenue OSPB Presentation of Prioritized FY 2015-16 Budget Requests CCHE Presentation of Prioritized FY 2015-16 Budget Requests		Requests Approved Requests Approved Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only

01:38 PM -- Consideration of FY 2014-15 Supplemental Requests (4)

The committee was called to order. All members were present. Ms. Kori Donaldson, Legislative Council Staff, provided some opening remarks on the afternoon's agenda. She then discussed an FY 2014-15 budget surplus for capital projects, and provided an overview of the committee's consideration of a number of supplemental capital construction requests. Committee members received written descriptions of the four supplemental requests, prepared by Legislative Council Staff (Attachments A through D); a packet of information supporting the Ute Museum Expansion supplemental request (Attachment E); and a letter of support for that same project from the Chair of the Southern Ute Indian Tribe (Attachment F). Ms. Donaldson responded to questions regarding the potential impact of the budget surplus on tax refunds under Article X, Section 20 of the Colorado Constitution (TABOR). Ms. Donaldson responded to further questions regarding the potential for the committee to receive additional supplemental capital construction requests, and the reasons why the Governor's Office of State Planning and Budgeting did not recommend funding for two of the supplemental requests submitted to the committee. Discussion ensued regarding the committee's options should it not approve any particular supplemental request.


BILL:	Consideration of FY 2014-15 Supplemental Requests (4)
TIME:	01:46:54 PM
MOVED:	Szabo
MOTION:	Approve the supplemental request from the Department of Personnel and Administration for FY 2014-15 funding to commence design renovations to the Centennial Building ($2,841,987 CCF) The motion passed on a vote of 4-2.
SECONDED:
		VOTE
	Becker K.	Yes
	Kefalas	Yes
	Sonnenberg	No
	Szabo	Yes
	Baumgardner	Yes
	Vigil	No

Final YES: 4 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	Consideration of FY 2014-15 Supplemental Requests (4)
TIME:	01:49:04 PM
MOVED:	Szabo
MOTION:	Approve the supplemental request from the Department of Personnel and Administration for FY 2014-15 funding to commence design of renovations to the Capitol Annex Building ($1,958,732 CCF). The motion passed on a vote of 4-2.
SECONDED:
		VOTE
	Becker K.	Yes
	Kefalas	Yes
	Sonnenberg	No
	Szabo	Yes
	Baumgardner	Yes
	Vigil	No

Final YES: 4 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	Consideration of FY 2014-15 Supplemental Requests (4)
TIME:	01:50:07 PM
MOVED:	Kefalas
MOTION:	Approve the supplemental request from the Department of Human Services to replace federal funds spending authority with increased state funding on behalf of the Resident Support Areas and Security Upgrades project ($1,443,000 CCF). The motion passed on a vote of 5-1.
SECONDED:
		VOTE
	Becker K.	Yes
	Kefalas	Yes
	Sonnenberg	No
	Szabo	Yes
	Baumgardner	Yes
	Vigil	Yes

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


BILL:	Consideration of FY 2014-15 Supplemental Requests (4)
TIME:	01:51:04 PM
MOVED:	Kefalas
MOTION:	Approve the supplemental request from History Colorado for additional funding for the Ute Museum Expansion Project ($500,000 CCF). The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Szabo	Yes
	Baumgardner	Yes
	Vigil	Yes

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

01:52 PM -- Consideration of DPS FY 2014-15 Supplemental Requests (2)

Mr. Stan Hilkey, Executive Director, Department of Public Safety, and Mr. Ron Sloan, Director, Colorado Bureau of Investigation (CBI), presented two FY 2014-15 supplemental capital construction requests: (1) Redesign of 690 and 700 Kipling Street Vacated Space; and (2) Acquisition or Renovation of Additional Denver CBI Lab Space to Comply with House Bill 13-1020. Committee members received written descriptions of the requests, prepared by Legislative Council Staff (Attachments G and H). Committee members also received a memorandum on recent budget actions concerning the Department of Public Safety, prepared by Legislative Council Staff (Attachment I); a breakdown of the costs associated with the CBI Lab project costs (Attachment J); and a spreadsheet showing all of the supplemental requests before the committee (Attachment K). Mr. Hilkey provided an overview of the CBI Lab project, and explained the need for additional funding for the project. Mr. Sloan responded to questions regarding how certain evidence is analyzed by CBI, and provided an update on the bureau's progress in testing a backlog of sexual assault kits as required by HB 13-1020. Mr. Sloan responded to questions regarding the costs associated with outsourcing the testing of sexual assault kits. Mr. Sloan provided background on how sexual assault evidence is collected and analyzed.

150106 AttachK.pdf

02:04 PM

Mr. Sloan responded to questions regarding the fiscal note for HB 13-1020. Discussion ensued regarding the time it will take for the CBI Lab project to be completed, and the potential need for certain leases to be extended should the project incur schedule changes. Ms. Terri Anderle, Budget Director for the Department of Public Safety, provided input on the lease extensions.


BILL:	Consideration of DPS FY 2014-15 Supplemental Requests (2)
TIME:	02:06:35 PM
MOVED:	Szabo
MOTION:	Approve the supplemental request from the Department of Public Safety for the Redesign of 690 and 700 Kipling Street Vacated Space project ($2,536,576 CCF). The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Szabo	Yes
	Baumgardner	Yes
	Vigil	Yes

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


BILL:	Consideration of DPS FY 2014-15 Supplemental Requests (2)
TIME:	02:12:28 PM
MOVED:	Szabo
MOTION:	Approve the supplemental request for additional state funding from the Department of Public Safety for the Acquisition and Renovation of Arvada CBI Lab Space to Comply with House Bill 13-1020 project ($1,265,332 CCF). The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Szabo	Yes
	Baumgardner	Yes
	Vigil	Yes

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

02:13 PM -- Overview of FY 2015-16 Capital Construction Requests and Available Revenue

Ms. Donaldson provided an overview of the FY 2015-16 capital construction requests made to the committee, and discussed the level of revenue available for capital for the upcoming fiscal year. Committee members received a memorandum outlining these requests and available funding levels, prepared by Legislative Council Staff (Attachment L). Ms. Donaldson briefed the committee on the contents of Attachment L. Ms. Donaldson also discussed the recent history of spending on capital construction, and briefed the committee on the FY 2015-16 capital request list. Committee members received copies of this list, prepared by Legislative Council Staff (Attachment M). Ms. Donaldson provided an overview of a binder containing written descriptions of the FY 2015-16 capital requests (A copy of the binder is on file with Legislative Council Staff.).

150106 AttachL.pdf

150106 AttachM.pdf

02:24 PM

Ms. Donaldson responded to questions regarding the impact of certain moneys required to be transferred for capital purposes under Senate Bill 09-228 on the amount of money available for FY 2015-16 capital funding. Ms. Donaldson returned to briefing the committee on the contents of the capital request binder.

02:28 PM -- OSPB Presentation of Prioritized FY 2015-16 Budget Requests

Mr. Henry Sobanet, Director, and Mr. Erick Scheminske, Deputy Director, Governor's Office of State Planning and Budgeting (OSPB), presented the Governor's recommendations for capital spending for FY 2015-16. Committee members received a packet of slides forming the basis for the presentation, prepared by OSPB staff (Attachment N). Mr. Sobanet briefed the committee on the FY 2015-16 budget outlook, referencing the contents of Attachment N. Mr. Sobanet responded to questions regarding the outlook for the impact of Medicaid spending on the state's budget, and the impact of this spending on the capital spending outlook.

150106 AttachN.pdf

02:38 PM

Mr. Sobanet briefed the committee on public school spending for FY 2011-12 through FY 2016-17, as outlined in Attachment N, and the impact of this spending on funding available for capital construction. Mr. Sobanet responded to questions regarding projected budget transfers for capital construction, and the effect of other budget responsibilities on capital spending in future years. Mr. Sobanet responded to questions regarding moneys generated by State Trust lands for public education, and the effective date of transfers for capital construction under SB 09-228. Mr. Sobanet responded to questions regarding the rationale for the passage of SB 09-228, and the potential for long-term fiscal reform.

02:55 PM

Mr. Sobanet responded to questions regarding the need for the Governor's Office of Information Technology Public Safety Communications Network Microwave Infrastructure Replacement project, and the ability to phase the project.

02:58 PM -- CCHE Presentation of Prioritized FY 2015-16 Budget Requests

Mr. Andrew Rauch, Lead Finance Analyst, Department of Higher Education, and Commissioner Richard Kaufman, Chair, Colorado Commission on Higher Education (CCHE), presented CCHE's FY 2015-16 capital budget requests. Mr. Rauch provided background on CCHE's role, and briefed the committee on the higher education community's capital construction request package. Mr. Rauch explained how higher education capital projects are prioritized, and provided an overview of the projects recommended for funding. Mr. Rauch responded to questions regarding the criteria considered by CCHE in prioritizing higher education projects.

03:10 PM

Mr. Rauch responded to questions regarding particular higher education projects that promote the mission of higher education. Mr. Kaufman responded to questions regarding certain higher education institutions that have not had capital projects funded in recent years. Discussion ensued on this point. Discussion followed regarding the role of student fees and other cash sources in higher education project prioritization, and geographical considerations in funding for higher education capital.

03:16 PM

The committee adjourned.