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17DEEF596AC0844F8725880000537D35 Hearing Summary


Date Mar 9, 2022      
Location SCR 357

Discussion of FY 2022-23 Capital Construction Requests - Committee Discussion Only

08:11:58 AM  
Senator Story called the meeting to order and gave an overview of CDC's charge under statute. Senator Story emphasized the great need in the state for capital funds. Senator Story discussed CDC's thinking in their prioritized recommendations to the Joint Budget Committee (JBC).
08:23:32 AM  
Representative Hooton gave additional comments on the prioritization process.
08:24:56 AM  
Representative McCluskie,
Chair of the JBC, gave comments on the CDC's work, historical state investment
in capital, and explained the JBC's interest in arranging this meeting.
08:27:38 AM  
Representative McCluskie
asked why the CDC chose not to tier recommendations this year. Senator
Story explained that the CDC did not tier the list because of the great
capital needs in the state and due to the fact that there was indication
that CDC could go higher than the amount recommended from the Office of
State Planning and Budgeting (OSPB). Additioanlly, she said that tiering
sometimes sends the wrong message. Senator Sonnenberg also gave context
that the tiering process only started about three years ago.
08:31:58 AM  
Senator Hansen asked
why the Department of Corrections (DOC) projects were re-ordered from OSPB's
recommendations. He expressed that he was concerned about the drain and
sewer projects that got put below the line and life safety implications
if they failed. Senator Story explained that the CDC prioritized list is
in order that DOC provided as their highest need and gave more details
on each of the projects that were included above the line.
08:37:26 AM  
Senator Hansen asked
for the reasoning behind putting Controlled Maintenance Level 3 at the
bottom of the list since he guesses that those projects probably escalate
in severity over time. Senator Story explained that Controlled Maintenance
Level 1 is always a priority, Controlled Maintenance Level 2 is less severe
but that the CDC tries to prioritize it, but that in her time on CDC Controlled
Maintenance 3 has never been on the recommended list because the funds
were not available. She also explained that Level 3 doesn't necessarily
ever move up to Level 2.

Senator Sonnenberg
expanded on that point by explaining that during the process of debating
Senate Bill 17-267, which funded all three levels of controlled maintenance
in 2017, they learned that Level 3 usually does not escalate toLevel 2
or Level 1. So the reason Level 3 is at the bottom of the list is because
it should be funded if the funds are available, but  the issues will
likely not get worse if it is not funded.
08:41:49 AM  
Senator Hansen asked
about out-year costs and the pre-encumbrance of funds for those projects.
Senator Story cited the Sterling Kitchen project as one with significant
out-year costs, but explained that it has been requested for many years,
it's acritical issue, and that the costs if the repairs are not made and
the kitchen is shut down will be enormous. She said it is better to address
it now while the state has the funds.
08:46:55 AM  
Senator Hansen asked
whether any local entities are assisting in the costs for Colorado Mesa
University's Robinson Theater request. Senator Rich explained that the
cash funds are coming from the community and that the theater is a revenue
generator for the entire Western Slope.
08:50:28 AM  
Discussion ensued
about the availability of excess and one-time funds for capital projects.
08:58:45 AM  
Representative McCluskie
clarified that the high inflationary environment gives JBC pause, especially
given possible impacts on capital construction projects. The JBC will try
to respect list put before them and will continue their evaluation and
09:00:43 AM  
Senator Story clarified
on Senator Hansen's previous question on DOC versus OSPB priorities that
CDC did indeed follow DOC's top priorities.
09:05:57 AM  
Senator Fields asked
if the JBC had a priority list to share. Representative McCluskie responded
that they do not have a list yet and will be looking into it today after
they receive briefings from JBC staff.
09:06:51 AM  
Senator Story gave closing remarks.