"Draft Only - Approval Pending"

 

M I N U T E S

Select School Facilities Committee

 

 

Room 302, State Capitol Building                                                                                   January 11, 2006

                                                                                                                              Cheyenne, Wyoming

 

 

PRESENT:      Senator Hank Coe, Co-Chairman;

                        Representative Del McOmie, Cochairman;

Senators Mike Massie and Kathryn Sessions;

Representatives Patrick Goggles, Debbie Hammons and Mick Powers.

 

School Facilities Commissioners:  Jeff Marsh, Chairman, State Superintendent Jim McBride, Jeff Carrier, Ralph Goodson, Rande Pouppert, Dick Ferris and Rick Gilpatrick.

 

                        Legislative Service Office: Dave Nelson, Brenda Long and Matt Sackett.

 

                        Others:  See attached Appendix A.

 

EXCUSED:     Senators Jim Anderson and John Hines and Representative Alan Jones.

 

AGENDA:       See attached Appendix B.

 

 

*  *  *  *  *

 

Representative Del McOmie, Select Committee Cochair, called the meeting to order at 10:05 a.m.  Select Committee Staff Dave Nelson conducted roll call of the Select Committee with three members excused.  Cochair McOmie resolved the meeting into joint session of the Select Committee and the School Facilities Commission.

 

Annual School Building Status Report (W.S. 21-15-121).

 

Mr. Ken Burnett, Director Shivler and Chairman Marsh reviewed the 2005 Annual School Building Status Report with the Select Committee, a copy of which is attached at Appendix C.  Select Committee members, commissioners and Commission staff discussed the building assessment scoring and the evolution of the scoring system under the consultation of MGT.

 

School Facilities Commission Report to the Committee.

 

Chairman Marsh introduced Commission members, commended the staff on their hard work throughout the past year and thanked the legislature for making the funding available to the Commission to construct and repair schools.

 

Director Shivler reported on previous fiscal year activities.  The increase in construction prices has made the year very tumultuous and has prevented the School Facilities Commission from building some schools due to lack of funding.

 

Chairman Marsh recommended the Commission and the Select Committee consider a standardized design format for school building remediation and alternative delivery methods in constructing and renovating school buildings.  Substantial savings could be experienced by the state in design fees and hard costs.  Chairman Marsh suggested the need to explore these two areas to add efficiency to the process.

 

Cochair Coe commended the Commission on the accomplishments they have made by working towards the mandates that were set forth by the Wyoming Supreme Court with the limited number of contractors made available in the State.

 

Commission and Staff members answered questions from the Select Committee concerning the number of enhancements bonded for and the staffs’ involvement with the district-hired architect.

 

School Facilities Commission Budget Request.

 

Director Shivler reviewed the School Facilities Commission 2007-2008 biennial budget request, a copy of which was distributed and is attached at Appendix D.  Director Shivler reported the total bonding capacity of the state is around $300 million compared to a total biennial budget request by school districts of $673,055,123.  With this in mind, the Commission prioritized the capital construction projects in accordance with its rules and regulation and is forwarding priority 1 projects for a total capital construction request of $220,652,041 plus an additional $14,000,000 in contingency and value engineering funding.  All minor capital construction projects were brought forward in a total funding request of $36,194,644.  Also included in the 2007-2008 biennial request is the Commission's operating budget of $7,350,256, review and analysis funds totaling $60,000,000, emergency funding at $1,000,000, major maintenance program funding of $68,200,000 and a proposed project opportunities fund of $134,000,000, all resulting in a total budget request of $541,396,941.  Remaining prioritized projects total $416,208,439, which the Commission is requesting approval without an appropriation in the event the district wants to complete one of these projects in replacement of one of the priority 1 funded projects.

Senator Massie stated it is required by constitution that the state meet the needs of school construction and questioned if the reduced budget request is a matter of not wanting to ask for the funds or is it that the Commission feels they can not physically get the construction completed.  Chairman Marsh responded the Commission is attempting to implement a reasonable approach by funding projects within the state's construction capacity and as such, is submitting a funding request reflecting this capability.

 

Director Shivler continued with the 2007/2008 budget by discussing the proposed project opportunities funding, which was developed by the staff to encourage contractors to bid a package of projects in closely located areas, allowing them to move subcontractors between projects while passing on an economy of scale benefit to the state.  These funds will allow the Commission to augment projects that are already in the design phase but were not considered a Priority 1 project.  Cochairs Coe and McOmie agreed the concept could be an opportunity to grow the construction industry in the state.  A discussion was held on the five percent preferential for in-state contractors and the ability of in-state contractors to bond for larger construction projects.

 

Teresa Kunkel, Commission staff, reviewed the remainder of the budget detail and fielded questions from the Committee with the assistance of Chairman Marsh and Director Shivler.  Following the budget discussion, Cochair Coe suggested a footnote to the Commission's budget be developed through the joint appropriations committee enabling project opportunities funding.

 

Public Comment.

 

Mr. Ed Goetz, Business Manager, Albany County School District No. 1, explained flex authority proposed by the project opportunities funding is critical for Albany County School District No. 1 to allow the district to make modifications within their five year plan.  Mr. Goetz encouraged the legislature to provide the Commission requested flex authority within its budget.

 

Mr. Boyd Brown, Associate Superintendent, Campbell County School District No. 1, thanked the Commission and staff for the forethought in requesting project funding flexibility.  Mr. Brown encouraged continued investigation into the ability to package project and alternate delivery methods.  Mr. Brown concluded by asking the legislature to appropriate the budget requested amount and make it accessible to the Commission to enable the packaging of building projects.

 

Ms. Diane Clapp, Superintendent, Fremont County School District No. 6, thanked the Commission for consideration of her district's needs at its January meeting..  Along with the previous speakers, she supports the flexibility requested by the Commission but cautioned the Commission and Committee to consider the needs of smaller districts which do not have the large number of projects with which to shift funds.

 

Mr. Mark Antrim, Associate Superintendent, Natrona County School District No. 1, thanked the Commission for its thoughtful budget request and for the packaging ability provided by the proposed project opportunities funding.

 

Co Chair Coe commended the SFC staff on their presentation and suggested the Commission prepare a white paper on its proposed budget request and project opportunities funding which could be posted on the web.

 

Select Committee Meeting.

 

At 3:25 p.m., Cochair Coe adjourned the joint session and resolved the Select Committee into session for formal Select Committee business.  Dave Nelson, Select Committee staff, called roll with three members excused.

 

Representative Goggles made a motion to approve minutes of the September 26, 2006, Select Committee meeting.  Senator Massie seconded the motion and motion passed unanimously.

 

Cochair Coe directed attention to draft legislation prepared in response to deliberations and action at the September Select Committee meeting.  Nancy Thomson, Commission staff, addresses the Select Committee on the draft proposals.

 

06LSO-0173.W4, "School capital construction-district facility plans."

 

The draft modifies the school district facility five-year planning process to coincide with the state budget cycle every two years, a copy of which is attached at Appendix E.  Mr. Nelson also pointed out provisions within the draft relating to the planning process and the ability to arbitrate a project within a district facility plan between a district and the commission through the administrative hearing process.  Positions will be made available within the Attorney General's budget to provide necessary positions to implement the hearing process.

 

Further discussion focused on the necessity for school districts to continue completing a five year plan, with the Commission focused on the two year impacting the state budget planning cycle.  Ms. Thomson advised the Commission will continue to consider the out years following the two year budget period and assist districts with this planning process.

 

Senator Massie made a motion to approve 06LSO-0173.W4 for introduction in the Budget Session under Select Committee sponsorship.  Representative Hammons seconded the motion and the motion carried unanimously.  Cochair Coe directed the bill be prepared for introduction in the House.  A copy of the roll call vote is attached at Appendix F.

 

06LSO-0174.W3, "School capital construction-building condition assessments."

The proposal modifies the periodic maintenance of the statewide building condition assessment to coincide with the district facility planning process imposed under 06LSO-0173.  A copy of the draft is attached at Appendix G.

 

Cochair McOmie made a motion to approve 06LSO-0174.W3 for introduction under Select Committee sponsorship.  Representative Powers seconded the motion and motion passed unanimously.  A copy of the roll call vote is attached at Appendix H.  Cochair Coe directed the bill be prepared for introduction in the Senate.

 

06LSO-0175.W3, "School facilities commission-amendments."

 

06LSO-0175 addressed commission concerns expressed at the September meeting on Commission oversight of project planning.  A copy of the proposal is attached at Appendix J.  Ms. Thomson clarified the proposed legislation does not grant the Commission authority to contract with the architect, but rather intervene if necessary and to guide the project planning process.  The Commission has requested within its budget an additional full-time position to assist in the review of project plans and specifications.  This position is to provide in-house expertise for oversight of district architects.

 

Commissioner McBride suggested the addition of language within the proposal providing a process for resolution of disputes arising between the Commission and districts.  Mr. Nelson advised the ability to resolve disputed cases already exists and would be clarified by 06LSO-173 if enacted by the legislature.  Following further discussion, Representative Hammons suggested the language within the proposed legislation did not appear to implement the explanation provided by Commission staff, and expressed concern that the proposal as drafted could be interpreted by districts as adversarial.  Cochair Coe questioned the necessity of the legislation, as it appears current statutory provision within W.S. 21‑15‑114 and 21‑15‑118 provide the Commission sufficient authority to oversee and administer contractual agreements pertaining to building projects.

 

Representative Powers expressed opposition to the proposal, specifically citing provisions containing the terms discretionary authority and enforcement of the discretionary authority.  He concluded his remarks by suggesting the proposal either be reworded or withdrawn.

 

Bill McIllvain, Wyoming Small Schools Coalition, indicated his clients have expressed concerns similar those stated by Representative Powers and agreed with the suggestion by Representative Hammons to include language clearly establishing an appeals process for districts.  Boyd Brown, Campbell County School District #1, expressed agreement with Senator Coe that the authority currently exists for the Commission to oversee projects and also, that current law provides the ability to resolve disputes.

 

Chairman Marsh clarified the Commission's intent by stating the proposal was initiated to clarity the role of the Commission as providing assistance to districts through the standardized design process.  In the event of an impasse with respect to any building remediation project, some authority is required to ensure a project is undertaken and completed to address the particular building remedy.  Chairman Marsh expressed his favorable reception to reworking the proposal.

 

Director Shivler recommended the proposal be withdrawn, to which Chairman Marsh agreed.

 

06LSO-00176.W3, "School capital construction-major maintenance program.

 

This proposal modifies the existing major maintenance program by eliminating from payment computations district square footage leased for purposes not related to provision of the required educational program.  A copy of the proposal is attached at Appendix K.  Senator Massie expressed concern with eliminating this provision, which was added after some debate.  If the proposal is adopted, the state will face problems encountered at the time regarding charter school programs.

 

Director Shivler advised current law clearly charges the Commission with ensuring schools are within capacity requirements specified by the statewide adequacy standards.  In light of this requirement and the fact that the amount of square footage in excess of standard is being reduced over time, building in excess of allowable capacity will not have the resources to maintain the space.

 

Following discussion, Cochair McOmie made a motion to adopt 06LSO-0176.W3 for introduction.  The motion failed for lack of a second.

 

Discussion focused on charter schools.  State Superintendent Jim McBride distinguished between charter schools and alternative schools.  Alternative schools provide for an alternative learning environment, whereas charter schools address needs not being met by a district.  He suggested the State not encourage charter schools unless another option is not available and suggested the state investigate the matter prior to providing additional charter school funding.

 

Adjournment.

 

There being no further business, Cochair Coe adjourned the Select Committee at 4:45 p.m.

 

 

Respectfully submitted,

 

 

 

 

__________________________                                __________________________

Senator Hank Coe,                                                        Representative Del McOmie,

Select Committee Cochair                                              Select Committee Cochair