Joint Committee Committee on Capital Development (12/02/2009)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	12/02/2009	ATTENDANCE

Time:	08:21 AM to 03:49 PM	Kopp	*
		McFadyen	*
Place:	SCR 356	Schwartz	X
		Sonnenberg	X
This Meeting was called to order by		Riesberg	*
	Senator Bacon	Bacon	X

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

Bills Addressed:		Action Taken:
Colorado Commission on Higher Education Fort Lewis College Adams State College University of Northern Colorado Colorado State University System Mesa State College Colorado School of Mines University of Colorado at Boulder University of Colorado Colorado Springs University of Colorado Denver Auraria Higher Education Center Metropolitan State College of Denver Cumbres & Toltec Scenic Railroad		Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Pass Pass Pass Pass Pass Pass Witness Testimony and/or Committee Discussion Only Pass Witness Testimony and/or Committee Discussion Only Pass Witness Testimony and/or Committee Discussion Only

08:21 AM -- Colorado Commission on Higher Education -- Presentation of FY 2010-11 Capital Budget Requests

The committee was called to order. Dr. Patricia Pacey, Commissioner, Colorado Commission on Higher Education (CCHE), and Mr. Dan Krug, Financial and Compliance Analyst, Department of Higher Education (DHE), presented CCHE's prioritized list of FY 2010-11 higher education institution capital budget requests. Commissioner Pacey explained how CCHE prioritized projects for FY 2010-11. She listed the factors considered during the prioritization, including: (1) if a project was included in House Joint Resolution 08-1042; (2) if an institution provided a cash contribution; (3) institutional priority rankings; (4) the Governor's Office of State Planning and Budgeting's (OSPB) published budget criteria; and (5) the condition and use of affected facilities. Commissioner Pacey explained that higher education institutions submitted cash requests in a new format for FY 2010-11: a Two-Year Projection of Cash Need.

Mr. Krug gave the committee a comparison of the total requests from higher education institutions from state and cash sources. He explained that for FY 2010-11 higher education institutions are asking for $800 million in state funds and bringing forward over a billion in cash funds, including more than $100 million in federal funds. Mr. Krug told the committee that higher education institutions are trying to fill the gap in state funding, and that schools are aware that there is a shortage of available state funds for capital projects.

08:31 AM

Discussion ensued about the use of student fees for capital construction. Commissioner Pacey addressed a question about the inclusion of projects listed in House Joint Resolution 08-1042 on the priority list, and told the committee that these projects are also listed separately on a Federal Mineral Lease (FML) list. She said that if FML revenue becomes available, these projects will be recommended for funding, but that the projects are also included on the CCHE prioritized list of FY 2010-11 projects. Discussion continued about the prioritization of higher education projects. In response to a question, Mr. Krug explained that a building's facility condition index score is a factor in the prioritization of state-funded requests. He then explained that institutions spent about $73 million from institutional cash sources on controlled maintenance during the last fiscal year.

08:40 AM

Discussion continued about spending for controlled maintenance. Commissioner Pacey told the committee that many of the FY 2010-11 state-funded requests will renovate existing facilities, and if these requests are funded it will reduce future controlled maintenance needs and outyear operating expenses. Discussion returned to how projects were ranked on the CCHE prioritized list of FY 2010-11 projects. Mr. Krug responded to questions about institutional spending for controlled maintenance and the use of student fees for capital construction and controlled maintenance.

08:47 AM -- Fort Lewis College

Mr. Steve Schwartz, Vice President for Finance and Administration, Fort Lewis College, presented two FY 2010-11 requests and the college's five-year projection of need. Committee members received a summary of Mr. Schwartz's presentation (Attachment A). Mr. Schwartz told the committee that the Berndt Hall Reconstruction -- Biology/Agriculture project is nearing completion and the building will open in six weeks. Mr. Schwartz presented the FY 2010-11 request for the Berndt Hall Reconstruction -- Geosciences, Physics, and Engineering project and explained that the project is currently under design. Mr. Schwartz next presented the FY 2010-11 request for the Whalen Gymnasium -- Exercise Science/Adventure Education Expansion, South and East project. Mr. Schwartz told the committee that controlled maintenance is a growing concern for Fort Lewis College, and that without funding many of its assets will continue to deteriorate. Discussion ensued about controlled maintenance at Fort Lewis College and the possible use of student fees to address controlled maintenance needs.

08:58 AM

Mr. Schwartz addressed questions about student enrollment and told the committee that the college's current enrollment is 3,715 and that the majority of its student population is from the Denver metro area.

09:02 AM -- Adams State College

Dr. David Svaldi, President, Mr. Bill Mansheim, Vice President of Finance and Administration, and Mr. Erik van de Boogaard, Associate Vice President of Facilities Planning and Design, all of Adams State College, and Mr. Tim Walters, Chair, Board of Trustees, presented the college's FY 2010-11 request and five-year projection of need. Dr. Svaldi told the committee that there is a demand for improvements to student housing, and updated the committee about a recent vote for a student capital fee for auxiliary facilities. He briefly summarized the FY 2010-11 request for the Richardson Hall Renovation project.

Mr. Mansheim explained how the student capital fee will be used to finance various cash projects and presented two FY 2010-11 cash projects including (1) Education and Social Studies Building Renovation; and (2) Music Building Remodel. Committee members received a description of both cash requests, prepared by Legislative Council Staff (Attachments B and C, respectively). Mr. Mansheim next presented a FY 2009-10 supplemental request for additional cash funds spending authority for the Auxiliary Facilities project. Committee members received a summary of the supplemental request, prepared by Legislative Council Staff (Attachment D).

09:08 AM

Mr. van de Boogaard continued the presentation of the two FY 2010-11 cash requests and the FY 2009-10 supplemental request. Committee members also received a list of the college's FY 2010-11 Two-Year Projection of Cash Need, prepared by Legislative Council Staff (Attachment E). Mr. Mansheim addressed questions about the source of cash funds for the various projects listed on the two-year list. He then responded to questions about the college's existing student capital fee. Discussion commenced about the aging infrastructure on the campus and the high usage of many of its facilities. Discussion turned to projects subject to the Higher Education Revenue Bond Intercept Program.


BILL:	Adams State College
TIME:	09:24:58 AM
MOVED:	Riesberg
MOTION:	Approve Adams State College's FY 2010-11 Two-Year Projection of Cash Need (see Attachment E). The motion passed on a vote of 5-0-1.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Excused
	Schwartz	Yes
	Sonnenberg	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:	Adams State College
TIME:	09:25:30 AM
MOVED:	Riesberg
MOTION:	Approve the FY 2010-11 request for cash funds spending authority for the Education and Social Studies Building Renovation project ($12,150,727 CF). The motion passed on a vote of 5-0-1.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Excused
	Schwartz	Yes
	Sonnenberg	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:	Adams State College
TIME:	09:26:12 AM
MOVED:	Riesberg
MOTION:	Approve the FY 2010-11 request for cash funds spending authority for the Music Building Remodel project ($6,254,103 CF). The motion passed on a vote of 5-0-1.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Excused
	Schwartz	Yes
	Sonnenberg	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:	Adams State College
TIME:	09:26:44 AM
MOVED:	Riesberg
MOTION:	Approve the FY 2009-10 supplemental request for additional cash funds spending authority for the Auxiliary Facilities project ($10,000,000 CF). The motion passed on a vote of 5-0-1.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Excused
	Schwartz	Yes
	Sonnenberg	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

09:28 AM

Mr. Walters made some closing remarks.

09:31 AM -- University of Northern Colorado

Ms. Kay Norton, President, and Mr. Randal Haack, Senior Vice President for Finance and Administration, both of the University of Northern Colorado (UNC), presented a FY 2010-11 request, the university's two-year projection of cash need, and its five-year projection of state need. Ms. Norton summarized the FY 2010-11 request for the Education Innovation Building project. She described the history of funding for the university after the first economic downturn at the beginning of the decade, and the potential impact of the current recession on future capital funding and projects. Ms. Norton addressed a question about UNC's existing student fees. Committee members received the university's Two-Year Projection of Cash Need, prepared by Legislative Council Staff (Attachment F).


BILL:	University of Northern Colorado
TIME:	09:40:06 AM
MOVED:	Riesberg
MOTION:	Approve the University of Northern Colorado's FY 2010-11 Two-Year Projection of Cash Need (see Attachment F). The motion passed on a vote of 4-0-2.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Excused
	Schwartz	Yes
	Sonnenberg	Excused
	Riesberg	Yes
	Bacon	Yes
Final YES: 4 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

09:41 AM -- Colorado State University System

Mr. Joseph B. Blake, Chancellor, and Mr. Richard Schweigert, Chief Financial Officer, both of the Colorado State University (CSU) system, presented an overview of the system's capital needs. Chancellor Blake discussed the system's enrollment growth and the aging infrastructure of its campuses. He then acknowledged the shortage of available state funds for capital construction and explained that future construction will likely occur through the use of student fees.

09:46 AM -- Colorado State University

Dr. Anthony Frank, President, Mr. Brian Chase, Director of Facilities, and Ms. Michelle Carroll, Engineer, Facilities Management, all of CSU, presented the university's FY 2010-11 requests, a two-year projection of cash need, and a five-year projection of need. Dr. Frank thanked the committee for their assistance in funding and approving the recently opened Diagnostic Medicine Center. Committee members received a summary of the FY 2010-11 requests for state and cash funds spending authority, and a list of state funds received since FY 2005-06 for capital projects and controlled maintenance at the CSU campus, prepared by CSU staff (Attachment G). Mr. Chase showed diagrams of two completed projects on campus, including the Diagnostic Medicine Center and auditoriums in the Clark Building.

09:58 AM

Mr. Chase continued his presentation and walked the committee through Attachment G. He addressed three of the university's FY 2010-11 requests including: (1) Chemistry Building Addition; (2) Engineering II Building; and (3) Clark Building Revitilization (Capital Renewal Project). Mr. Chase responded to a question regarding the Chemistry Building Addition project and confirmed that the project was recommended to be funded from FML revenue by House Joint Resolution 08-1042. Committee members received a copy of the university's FY 2010-11 Two-Year Projection of Cash Need list, prepared by Legislative Council Staff (Attachment H). Mr. Chase reviewed the cash projects included on the list. (The projects are also listed on page 2 of Attachment G.) Mr. Chase explained that the proposed Morgan Library expansion project will create more study space for students.

10:08 AM

Mr. Chase continued his presentation of projects included on the university's Two-Year Projection of Cash Need. He told the committee that there is currently a lot of construction underway on campus and that capital construction on the CSU campus is an economic driver in northern Colorado.

10:19 AM

Mr. Chase continued his presentation of projects included on the university's Two-Year Projection of Cash Need. Discussion ensued about projects currently under construction. Mr. Schweigert returned to the table to address a question about which cash projects on the two-year list will be subject to the Higher Education Revenue Bond Intercept Program. Discussion ensued regarding the Higher Education Revenue Bond Intercept Program.


BILL:	Colorado State University
TIME:	10:27:30 AM
MOVED:	Riesberg
MOTION:	Approve Colorado State University's FY 2010-11 Two-Year Projection of Cash Need (see Attachment H). The motion passed on a vote of 5-0-1.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Excused
	Riesberg	Yes
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

10:28 AM

The committee took a recess.

10:42 AM -- Colorado State University -- Pueblo

Mr. Joseph Garcia, President, Ms. Joanne Ballard, Vice President of Finance and Administration, and Mr. Craig Cason, Director of Facilities, all of CSU-Pueblo, presented three FY 2010-11 requests, a two-year projection of cash need, and a five-year projection of state need. Mr. Garcia discussed enrollment trends at the university and noted that that CSU-Pueblo is the only university in Colorado that has been designated as a Hispanic Serving Institution. Committee members received an overview of recently completed and newly requested capital projects, prepared by CSU-Pueblo staff (Attachment I). Mr. Garcia walked the committee through Attachment I and highlighted the impact of new student housing and the new stadium on enrollment and retention.

10:51 AM

Mr. Garcia provided the committee with an overview of a planned renovation to the Academic Resources Center. He explained that the renovation will include additional classroom space to accommodate an increase in enrollment. Mr. Garcia discussed the creative financing that the university has used for several projects. For instance, the football field is actually owned by a donor and leased to the university. Committee members received the university's Two-Year Projection of Cash Need list, prepared by Legislative Council Staff (Attachment J). Mr. Garcia discussed the projects included on the two-year list.

Mr. Garcia next presented three FY 2010-11 requests, including: (1) General Classroom Building; (2) Psychology Building Renovation; and (3) Technology Building Renovation. He noted that the Technology and Psychology buildings are inefficient and need renovation in order to be used effectively.

10:59 AM

Mr. Garcia responded to a question about student enrollment and stated that the current student headcount is just over 5,000. He also discussed the rate of student transfer from community colleges. In response to a question, Mr. Garcia stated that about 33 percent of the students enrolled at CSU-Pueblo are minorities.


BILL:	Colorado State University -- Pueblo
TIME:	11:03:17 AM
MOVED:	McFadyen
MOTION:	Approve Colorado State University at Pueblo's Two-Year Projection of Cash Need (see Attachment J). The motion passed on a vote of 5-0-1.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Excused
	Riesberg	Yes
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

11:19 AM -- Mesa State College

Mr. Patrick Doyle, Vice President for Finance and Administration, Mesa State College, presented four FY 2010-11 requests, a two-year projection of cash need, and a five-year projection of state need. Committee members received a handout detailing Mesa State College's energy independence initiative (Attachment K). Mr. Doyle presented the four FY 2010-11 requests, including: (1) Houston Hall Renovation and Expansion; (2) Campuswide Geoexchange System; (3) Tomlinson Library Addition and Renovation; and (4) Events Center. Committee members received the college's Two-Year Projection of Cash Need list, prepared by Legislative Council Staff (Attachment L). Mr. Doyle gave an overview of the projects included on the two-year list and addressed questions about the Campuswide Geoexchange System project. Mr. Doyle told the committee that its top cash-funded priority is a new student residence hall complex because the college is at 100 percent capacity for housing.


BILL:	Mesa State College
TIME:	11:26:37 AM
MOVED:	Riesberg
MOTION:	Approve Mesa State College's Two-Year Projection of Cash Need (see Attachment L). The motion passed on a vote of 5-0-1.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Excused
	Riesberg	Yes
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

11:27 AM

The committee recessed for lunch.

01:18 PM -- Colorado School of Mines

The committee returned to order. Dr. Bill Scoggins, President, Ms. Kirsten Volpi, Senior Vice President for Finance and Administration, and Mr. Peter Han, Chief of Staff and Associate Vice President for External Relations, all representing the Colorado School of Mines, presented an overview of the school's five FY 2010-11 capital requests, a two-year projection of cash need, and a five-year projection of state need. Committee members received a packet of presentation slides highlighting information on the school and its capital requests (Attachment M), and a brochure detailing the school's research initiatives (Attachment N), both prepared by the school. Dr. Scoggins highlighted certain information about the school, including enrollment trends, growth in research grants, and strategic objectives. Dr. Scoggins then provided a brief overview of the school's five-year capital construction plan, along with status updates for certain projects. Committee members received the school's Two-Year Projection of Cash Need list, prepared by Legislative Council Staff (Attachment O).

01:29 PM

Ms. Volpi responded to questions regarding the status of controlled maintenance requests for the Colorado School of Mines campus, and the source of funds that the school uses to pay for controlled maintenance. Ms. Volpi also responded to questions regarding the use of the Higher Education Revenue Bond Intercept Program for the New Campus Housing project.


BILL:	Colorado School of Mines
TIME:	01:31:10 PM
MOVED:	Kopp
MOTION:	Approve Colorado School of Mines Two-Year Projection of Cash Need (see Attachment O). The motion passed on a vote of 5-0-1.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Riesberg	Excused
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

01:32 PM

The committee recessed.

01:41 PM -- University of Colorado System Overview

The committee returned from recess. Mr. Bruce Benson, President, and Ms. Kelly Fox, Vice President for Budget and Finance and Chief Financial Officer, both representing the University of Colorado system, presented an overview of the university system and its capital construction needs. Mr. Benson discussed efforts to fund capital construction in light of the current economic climate, and provided an update on certain capital projects. Discussion ensued regarding the need to address certain details of the higher education capital construction approval process. Mr. Benson returned to discussing how the system is endeavoring to fund capital construction.

01:50 PM -- University of Colorado at Boulder

Mr. Phil DiStefano, Chancellor, and Mr. Frank Bruno, Vice Chancellor for Administration, both of the University of Colorado at Boulder, presented six FY 2010-11 capital construction requests, a two-year projection of cash need, and a five-year projection of state need for the Boulder campus. Committee members received a collection of slides prepared by the university highlighting certain general information regarding the Boulder campus, and providing details on the university's FY 2010-11 capital requests (Attachment P). Committee members also received a fact sheet on the Boulder campus and its importance as an educational institution, prepared by the university (Attachment Q), and the university's Two-Year Projection of Cash Need, prepared by Legislative Council Staff (Attachment R). Mr. DiStefano detailed the university's capital requests based on the information provided in Attachment P, including the projects found on the university's two-year list. Mr. DiStefano also noted a forthcoming supplemental request for a cash-funded athletics practice facility.

02:00 PM

Mr. Bruno responded to questions regarding unforeseen delays in moving forward with the athletics practice facility. Mr. DiStefano and Mr. Bruno responded to questions regarding the cash reserves the university has on hand to fund certain cash-funded projects. Ms. Fox provided further information in response to these questions. A general discussion ensued regarding the university's cash revenue sources, and the need to plan for controlled maintenance expenditures. Ms. Fox responded to questions regarding controlled maintenance funding for Senate Bill 92-202 facilities. Discussion ensued regarding the use of the Higher Education Bond Revenue Intercept Program to assist with financing for cash projects. Discussion returned to changes made to the higher education cash-funded project approval process put in place by Senate Bill 09-290. Discussion followed regarding the difference between the university's cash-funded project list and its state-funded request list.


BILL:	University of Colorado at Boulder
TIME:	02:11:26 PM
MOVED:	Schwartz
MOTION:	Approve the University of Colorado at Boulder's Two-Year Projection of Cash Need (see Attachment R). The motion passed on a vote of 5-0-1.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Riesberg	Excused
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:12 PM -- University of Colorado at Colorado Springs

Ms. Pam Shockley-Zalabak, Chancellor, and Mr. Brian Burnett, Vice Chancellor for Administration and Finance, both of the University of Colorado at Colorado Springs, provided an overview of the university's two FY 2010-11 capital construction requests, a two-year projection of cash need, and a five-year projection of state need. Committee members received the Quick Facts 2009 guide to the campus and its capital requests, prepared by the university (Attachment S), and the university's Two-Year Projection of Cash Need, prepared by Legislative Council Staff (Attachment T). Ms. Fox provided information regarding the need to revise the two-year list. Ms. Shockley-Zalabak provided background on the university and its initiatives. Ms. Shockley-Zalabak then detailed the university's capital construction requests, including cash-funded requests, and explained the need to go forward with these projects. Ms. Shockley-Zalabak included details pertaining to the sources of cash funds for cash-funded projects in her discussion.

02:22 PM

Ms. Shockley-Zalabak continued to brief the committee on the university's cash-funded requests, and explained a forthcoming negative supplemental request for a state-funded project. Discussion ensued regarding revisions being made to the two-year list.

02:25 PM -- University of Colorado Denver

Dr. M. Roy Wilson, Chancellor, presented the University of Colorado Denver's two FY 2010-11 capital construction requests, a two-year projection of cash need, and a five-year projection of state need. Committee members received a fact sheet about the Denver campus (Attachment U), and a collection of slides highlighting certain information about the campus and the university's FY 2010-11 capital requests (Attachment V), both of which were prepared by the university. Committee members also received the university's Two-Year Projection of Cash Need, prepared by Legislative Council Staff (Attachment W). Dr. Wilson walked the committee through the information found in Attachment V, first focusing on the university's Anschutz Medical Campus. Dr. Wilson responded to questions regarding the work performed in a vivarium facility. Dr. Wilson then returned to briefing the committee on its FY 2010-11 capital construction requests for the Anschutz Medical Campus.

02:35 PM

Dr. Wilson briefed the committee on the university's capital requests for the Auraria campus, and potential locations for planned facilities. Ms. Fox responded to questions regarding the prioritization process undertaken by CCHE, which led to the exclusion from the priority list of the planned psychology facility on the Auraria campus.


BILL:	University of Colorado Denver
TIME:	02:44:43 PM
MOVED:	Schwartz
MOTION:	Approve the University of Colorado Denver's Two-Year Projection of Cash Need (see Attachment W). The motion passed on a vote of 5-0-1.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Riesberg	Excused
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:45 PM

The committee recessed.

02:56 PM -- Auraria Higher Education Center

The committee returned from recess. Ms. Barbara Weiske, Interim Executive Vice President for Administration, Auraria Higher Education Center (AHEC), Dr. Karen Bleeker, President, Community College of Denver (CCD), and Ms. Jill Jennings Golich, Campus Planner, AHEC, presented a five-year projection of need for the AHEC campus. Committee members received information about the Auraria Campus Neighborhood Concept (Attachment X). Ms. Weiske spoke about AHEC's capital needs and explained the neighborhood concept. Dr. Bleeker summarized the mission of CCD and discussed the college's dramatically increasing enrollment. She explained that there is insufficient classroom and office space for students and faculty, and said that CCD's main classroom building, the South Classroom Building, is in need of major renovations.

03:05 PM

Dr. Bleeker continued her presentation and told the committee that at the beginning of the fall 2009 semester there were 70 un-roomed classes. She then revisited the increase in student enrollment in recent years. Dr. Bleeker addressed questions about the South Classroom Building and existing student fees. She told the committee that the South Classroom Building is the oldest building on the AHEC campus. Ms. Jennings Golich presented a five-year projection of need for the campus and summarized six projects that will be requested in future years. She described AHEC's changing needs as triggered by enrollment growth at all three institutions housed on the AHEC campus.

03:15 PM -- Metropolitan State College of Denver

Dr. Stephen Jordan, President, Ms. Natalie Lutes, Chief Financial Officer, and Mr. Sean Nesbitt, Director, Facilities Planning and Space Management, all of Metropolitan State College of Denver (Metro), provided an overview of the college's capital need, including a two-year projection of cash need. Dr. Jordan discussed the AHEC shared campus, and said that Metro's capital request supports the shared mission. Committee members received the college's Two-Year Projection of Cash Need, and a summary of a FY 2010-11 request for cash funds spending authority, both prepared by Legislative Council Staff (Attachments Y and Z, respectively). Dr. Jordan presented the FY 2010-11 request for cash funds spending authority for the Academic Consolidation and Expansion Renovation, and said the project will create classrooms to address a shortage of faculty offices, specialty laboratories, and classroom buildings.

03:24 PM

Dr. Jordan discussed the previously approved Student Success Building, which will be built with cash funds. He told the committee that the college plans to break ground for the project in about a year. Dr. Jordan noted that the college was able to get a very low interest rate for the bonds that were issued to construct this facility. Dr. Jordan elaborated on the enrollment increases that the college is experiencing.


BILL:	Metropolitan State College of Denver
TIME:	03:30:16 PM
MOVED:	Schwartz
MOTION:	Approve Metropolitan State College of Denver's Two-Year Projection of Cash Need (see Attachment Y). The motion passed on a vote of 4-0-2.
SECONDED:
		VOTE
	Kopp	Absent
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Riesberg	Excused
	Bacon	Yes
Final YES: 4 NO: 0 EXC: 1 ABS: 1 FINAL ACTION: PASS


BILL:	Metropolitan State College of Denver
TIME:	03:31:18 PM
MOVED:	Schwartz
MOTION:	Approve the FY 2010-11 request for cash funds spending authority for the Academic Consolidation and Expansion Renovation project ($10,342,460 CF). The motion passed on a vote of 4-0-2.
SECONDED:
		VOTE
	Kopp	Absent
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Riesberg	Excused
	Bacon	Yes
Final YES: 4 NO: 0 EXC: 1 ABS: 1 FINAL ACTION: PASS

03:32 PM -- Cumbres & Toltec Scenic Railroad

Mr. Peter Foster, Chairman, and Mr. Leo Schmitz, Executive Director, Cumbres & Toltec Scenic Railroad, presented a FY 2010-11 request for the Track Rehabilitation project. Mr. Foster discussed the location of the railroad, which is co-owned by Colorado and New Mexico. Mr. Foster stated that the railroad provides economic stimulus to two of the poorest counties in Colorado and New Mexico. According to Mr. Foster, ridership is down for the most recent fiscal year, but revenue is up because of a new parlor car. Committee members received a summary of the FY 2010-11 request and key economic indicators for the railroad, prepared by railroad staff (Attachment AA). Mr. Foster told the committee that the railroad currently has four running locomotives and 70 employees. He then detailed the FY 2010-11 request.

03:40 PM

Mr. Foster responded to a question about alternate sources of funding for railroad operations and stated that the Friends of the Cumbres & Toltec Railroad have employed an individual to seek grant funding. He explained that the Friends organization has also been seeking landmark status for the railroad.

03:44 PM

Mr. Ed Nichols, President, Colorado Historical Society, came to the table and stated that the Historical Society has been working in partnership with the railroad on earning landmark status designation. Discussion turned to the new parlor car and other ways the railroad can create new revenue streams.

03:49 PM

The committee adjourned.