Task Force Meeting Information

October 27, 2008

University of Wyoming Outreach Building, Casper, Wyoming

 

Task Force Members Present

Senator Henry H.R. “Hank” Coe, Co-Chairman

Representative Del McOmie, Co-Chairman

Senator Michael Von Flatern

Representative Lorraine Quarberg

Jerry Austin, Wamsutter, Representing Oil and Gas

Lynn Birleffi, Cheyenne, Representing Travel, Tourism & Recreation

Glenn Dalton, Rock Springs, Representing Community Colleges-Vocational Programs

Joan K. Evans, Cheyenne, Representing Workforce Services

Tom Kinnison, Sheridan, Representing Small Business Community

 

Task Force Members Absent

Senator Rae Lynn Job

Representative Pete Jorgensen

Mary Behrens, Casper, Representing Health Care

Steve L. Johnson, Sheridan, Representing Mining

Bryan Pedersen, Cheyenne, Representing Public-At-Large

David R. Reetz, Powell, Representing Community Colleges-Academic Programs

 

Other Legislators Present

Senator Mike Massie

Representative Colin Simpson

 

Legislative Service Office Staff

Dave Nelson, School Finance Manager, Brenda Long, School Finance Analyst

Matthew Sackett, Research Analyst, Josh Anderson, Staff Attorney

 

Others Present at Meeting

Please refer to Appendix 1 to review the Committee Sign-in Sheet
for a list of other individuals who attended the meeting.

Executive Summary

The Community College Task Force met for two days at the University of Wyoming Outreach Center in Casper.  The Task Force reviewed proposals forwarded from the September 29 and 30 meeting.  Proposed recommendations will be considered at the November 19, 2008 meeting for finalization and submission to the Joint Education Committee in December.

 

Call To Order

Co-Chairman Coe called the meeting to order at 8:30 am.  The following sections summarize the Committee proceedings by topic.  Please refer to Appendix 2 to review the Committee Meeting Agenda.

 

Approval of Minutes

Senator Von Flatern moved that the Task Force approve the minutes from September 29 and 30, 2008 with no changes.  The motion was seconded and passed by voice vote.

 

Capital Construction Process Recommendations

Mr. Dave Nelson of the Legislative Service Office provided a handout to the Task Force on a capital construction mechanism and statutory implementation (see Appendix 3 for a copy of the handout).  Mr. Nelson noted that the capital construction process would be tied to the strategic plan and the state’s interest.  He noted that the Community College Commission would be directed to develop inventories and distinguish square footage that is within or not within the state’s interest and forward priorities to the Department of Administration and Information.  Mr. Nelson noted that major maintenance funds would also be tied to the strategic plan and that some interim planning money would be provided to the colleges for projects to be forwarded in the next biennium.

 

In response to a question, Mr. Nelson noted that the changes may slow the capital construction process down for current projects but that once it is fully implemented it should result in a similar timeline to what is currently in place.

 

Mr. Rich Cathcart of the Department of Administration and Information addressed the Committee on construction management and the differences between level I, level II and level III review conducted for state projects recommended to the State Building Commission.  He noted that projects start with feasibility which is level I.  He stated that level II is more detailed and focuses on what type of facility, how large, a rough square footage cost to provide a schematic idea of what the project will need, and other such detailed planning and review activities.  He stated that Level III review was for design and construction and noted that the level III review is where construction management becomes more involved in to the process by applying value engineering to the design.  He noted that value engineering occurs through approximately 70% of the total design process and is very valuable in managing construction projects.  

 

Mr. Cathcart noted that his office is not looking to take the additional duties involved in the proposed community college process, but added his office would require more than one person undertake expanded activities.  He noted that it may be appropriate to establish a construction management section within the Commission and suggested it may be more effective to delegate control of state funds and project construction to the construction management office within the Commission or his office.  He stressed the importance of this aspect in providing effective oversight of state funds.

 

In response to a question, Mr. Cathcart noted that the University of Wyoming has an in-house construction management pool and therefore, does not require his services for construction management review purposes.  Mr. Cathcart noted that his office is currently doing a joint venture program with the University because it was cost effective to partner with the University on a certain project.  In response to a question, Mr. Cathcart noted that his office currently is comprised of 9 or 10 positions dedicated to managing construction projects, and with the amount of construction contained within previous Community College Commission budgets, an additional 5 positions would be required to effectively manage future college projects.  He noted that each construction manager could manage 2-3 projects at a time because each project requires constant communication.

 

In response to a question, Mr. Cathcart noted that in terms of each project, the Department becomes the owner of the project but they are really the owner's representative for the project and work closely with the agency to ensure they have input throughout the process.

 

In response to a question, Mr. Rick Miller of the University of Wyoming noted that University employment tied to construction management averages 3 to 5 positions, but it varies depending on the amount of construction occurring at the University.

 

In response to a question, Mr. Cathcart noted that even if a project is 100% self funded by a college it should go through the same process and take advantage of the state's construction management staff.

 

Dr. Jim Rose of the Community College Commission noted that the level of funding discussed for Community College projects would not be of the magnitude suggested, and would not generally be of that magnitude in any given time in the future.

 

Mr. Bob Cox of Laramie County Community College noted that the college employs staff to manage projects but that any additional staff provided at the state level to assist with construction management would be of great help.  He noted that the concern would be the availability of service.

 

Dr. Karla Leach of Western Wyoming Community College noted that there is some feeling of a loss of control especially in cases where the locals are doing the majority of the funding.  She also noted that without being able to accumulate reserves, the colleges will be hindered in the ability to acquire triple A rated bonding, which ultimately impacts colleges in raise sufficient local funding for capital construction.

 

Dr. Walt Nolte of Casper College noted that Casper College employs an experienced facilities manager but that if state funds are received for local construction, state oversight would be expected.

 

In response to a question, Mr. Nelson noted that each biennium a separate state appropriations request is forwarded for major maintenance based upon a formula based upon square footage.  He noted that the use of those funds is for major system components such as a roof or HVAC system.

 

Mr. Nelson provided handouts to the Task Force on capital construction proposals (see Appendix 4 for a copy of the handouts).  Mr. Nelson noted that the major change contained within the distributed proposals is that action taken at the September meeting reinserted statutorily required authorization of all capital construction above prescribed thresholds from both the Commission and the Legislature.

 

Task Force Member Tom Kinnison moved to adopt the changes to the capital construction documents and the interim capital construction document and move them forward to the November meeting for final consideration.  The motion was seconded and adopted by voice vote.

 

Member Kinnison requested that staff draft an amendment for the next meeting to require oversight of legislatively authorized college construction by the Department of Administration and Information as discussed earlier in the meeting.  Member Kinnison also requested staff include an amendment that would allow the Department of Administration and Information to control the money appropriated for community college capital construction.

 

Representative Quarberg requested staff draft a similar amendment that would place construction management review under the control and direction of the Community College Commission.

 

Mr. Nelson provided handouts to the Task Force on the strategic plan process proposals (see Appendix 5 for a copy of the handouts).  Mr. Nelson explained the revisions incorporated from the previous meeting and noted the process provided for the review and development of the initial strategic plan which includes the Governor, Legislature and the Task Force.

 

Member Kinnison requested staff to draft an amendment to include student goal attainment and student retention in the performance benchmarks as set out in the strategic plan proposal.

 

Mr. Nelson noted that in the process for strategic plan development, the Commission would develop preliminary draft recommendations and report by July 31 with final completion by November 1, 2009.

 

Senator Von Flatern moved to forward those documents as amended.  The motion was seconded and passed by voice vote.

 

Mr. Nelson provided handouts to the Task Force on operation funding proposals (see Appendix 6 for a copy of the handouts).  Mr. Nelson explained revisions within the documents incorporated from Task Force action at its September meeting and noted the removal of language requiring an inflationary adjustment by the Commission to the budget baseline amount.

 

Representative Quarberg moved that the Task Force forward the documents as amended to the November meeting.  The motion was seconded and approved by voice vote.

 

Mr. Nelson provided a handout to the Task Force on the consideration of college reserves proposal (see Appendix 7 for a copy of the handout).  Mr. Nelson explained the revisions from the previous meeting and noted that reserves are considered in three, in establishing the baseline amount, in funding for purposes of max loss and in the restriction of the spending of future reserves for emergency needs.  In response to a question, Mr. Nelson noted that existing reserve fund balances are not restricted under the modification, but the beginning in 2011, reserves would be restricted to emergency uses.

 

Member Kinnison requested staff to draft an amendment that would allow the colleges to keep a percentage as unrestricted reserves, as related to the percentage of state to local funding.

 

Senator Von Flatern moved that the reserve document be forwarded to the next meeting as amended.  The motion was seconded and passed by voice vote.

 

Mr. Nelson provided a handout to the Task Force regarding the max-loss or hold-harmless proposal (see Appendix 8 for a copy of the handout).  Mr. Nelson explained changes and noted that the colleges would be held harmless at the amount appropriated in the 2009-10 biennium plus the amount of the 4 mill local levy considered in the allocation funding model distributions during this biennium together with the balance of reserve funds existing as of June 30, 2007.  He noted under the revised proposal, the hold-harmless level is set at 100% for the 2011-2012 biennium, at 90% for the first year of the 2013-2014 biennium and at 80% for the remaining year.

 

Member Kinnison directed staff to draft an amendment that would modify the max loss levels to 90%, 80%, 70%, and 60% over the four year transitional period.

 

Member Kinnison moved that the document be forwarded as amended to the next meeting.  The motion was seconded and passed by voice vote.

 

Mr. Nelson provided a handout to the Task Force on interim administration appropriations (see Appendix 9 for a copy of the handout).  Mr. Nelson noted that there were only minor changes from the previous meeting.

 

Member Kinnison moved that the document be forwarded as amended to the next meeting.  The motion was seconded and passed by voice vote.

 

Dr. Rose provided handouts to the Task Force on some additional informational items including revenues and enrollment (see Appendix 10 for a copy of the handouts).  Dr. Rose noted that it is difficult to compare all 7 colleges across the system because they record items differently.  He noted that when a student is listed as undecided the student may have declared his intentions but they did not fit neatly into another category.

 

Dr. Rose provided a handout to the Task Force that detailed proposed amendments to the Task Force proposal on the strategic planning process, as forwarded by the Commission (see Appendix 11 for a copy of the handout).  Member Kinnison suggested the Task Force considered the proposed amendments at the November meeting.

 

Mr. Nelson provided a handout to the Task Force from the Community College Presidents Council responding to Task Force questions presented during its testimony submitted at the September meeting (see Appendix 12 for a copy of the handout).

 

Meeting Adjournment

There being no further business, Co-Chairman Coe adjourned the meeting at 2:00 pm.

 

 

 

 

 

 

 

 

 

 

Appendix		Appendix Topic		Appendix Description		Appendix Provider
1		Committee Sign-In Sheet		Lists meeting attendees		Legislative Service Office
2		Committee Meeting Agenda		Provides an outline of the topics the Committee planned to address at meeting		Legislative Service Office
3		Interim Capital Construction		Interim Capital Construction		Legislative Service Office
4		Capital construction documents		Capital construction documents		Legislative Service Office
5		Strategic plan documents		Strategic plan documents		Legislative Service Office
6		Funding documents		Funding documents		Legislative Service Office
7		College Reserves		College Reserves		Legislative Service Office
8		Max-loss provisions		Max-loss provisions		Legislative Service Office
9		Interim administration		Interim administration		Legislative Service Office
10		Revenues and enrollment		Revenues and enrollment		Community College Commission
11		Strategic plan changes		Strategic plan changes		Community College Commission
12		College impacts		College impacts		Community College Presidents Council