Committee Meeting Information

September 19, 2006

Cody Holiday Inn

Cody, Wyoming

 

Committee Members Present

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

Representative Del W. McOmie, Co-Chairman

Senator Jim Anderson

Senator John J. Hines

Senator Mike Massie

Senator Kathryn Sessions

Representative W. Patrick Goggles

Representative Debbie Hammons

Representative Alan C. Jones

Representative Mick Powers

 

Committee Members Absent

All Committee members were present

 

Other Legislators Present

Representative Jeff Wasserburger

Representative Elaine Harvey

 

Legislative Service Office Staff

Dave Nelson, School Finance Manager, Brenda Long, School Finance Analyst, Matthew Sackett, Associate Research Analyst, Joseph A. Rodriguez, 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 Committee met for one day in Cody, Wyoming.  The Committee adjourned to executive session where they were given an update regarding the school finance litigation.  The Committee took testimony from the School Facilities Commission regarding their standards, full day kindergarten, historic school buildings, maintenance of building enhancements, the modified building assessment system, the SFC data system, and SFC budget matters.  The Committee was given an update on the capital construction audit and the major maintenance audit.  The Committee directed staff to draft legislation requiring all new bond issues for education to include a sinking fund for maintenance expenses and to draft legislation regarding the 10% set aside.  The Committee also directed that legislation be drafted allowing schools to rent unused space to early childhood care providers without losing maintenance payments but not counting the leased space against the district allocation.  

 

The next meeting of the Committee will be November 8, 2006 in Cheyenne. 

 

Call To Order/Opening Remarks (September 19, 2006)

Co-Chairman McOmie called the meeting to order at 8:38 a.m.  The Committee adjourned to executive session.    The following sections summarize the Committee proceedings by topic.  Please refer to Appendix 2 to review the Committee Meeting Agenda.

 

Litigation Update/Select Committee Interim Work

Mike O’Donnell, State's Counsel, provided the litigation update during executive session.

 

School Facilities Standards and Accommodation of Full-Day Kindergarten Programs

Director Shivler of the SFC addressed the Committee.  The SFC is working on improving the system of school building assessment.  The SFC is looking for a nationally recognized and standardized scoring system.  The number one issue facing the SFC is the cost of school buildings.  Construction costs have risen drastically in recent years.  It costs more to build in Wyoming because there are not enough workers and a shortage of materials.  This is called the Wyoming factor.    The 15% inflationary accounts set up by the Legislature in the recent budget session have helped to absorb costs but the actual cost increases exceed 15%.  Refurbishing or remodeling of schools is being looked at much more closely as a cost efficient option to help defray the increasing costs of construction.  The educational program enhancements recently passed by the Legislature have created additional positions necessitating the immediate need for additional space.  Most districts have additional space but some do not.

 

Brenda Long of the Legislative Service Office supplied the Committee with Appendix 3.  Ms. Long discussed the 2007/2008 school capital construction profile.  After the 2006 Legislative session it was estimated that approximately 33 million dollars of the cap con account would be unobligated at the end of the 2007/2008 biennium.   Ms Long also discussed the cap con appropriation, spending and major maintenance payments.  The total cap con appropriation is around 789.5 million dollars over time.  The major maintenance payments reflected in the appendix are actual payments.  The total major maintenance payments total just over 268 million dollars over time. 

 

Director Shivler anticipated the needs in school construction over next two years are about 625 million.  The SFC can only build about 200 million per year and realistically will need between 200 -250 million dollars during the biennium for school construction

 

The SFC staff discussed with the Committee full day kindergarten and the standards.  The Committee was given Appendix 4 and Appendix 5.  The SFC by resolution, in response to Enrolled Act 23, resolved to verify that the ADM calculations used in the major maintenance payments included full day kindergarten.  The SFC has done that.  The SFC also resolved to ascertain that all districts providing full day kindergarten had adequate space to do so.  Not all schools have adequate capacity for full day kindergarten.  The short term solutions to the capacity issue are increasing class sizes, modular classrooms, reconfiguring space and bussing short distances.  The long term solutions are adding space to existing sites and reconfiguration of schools.  The SFC thinks that there is a need for a further in-depth utilization study focusing on how schools are utilizing their buildings.  The figures contained within the appendices reflect the 2005/2006 ADM.

 

Historic School Buildings

Nancy Thompson of the SFC addressed the Committee regarding historic school buildings and presented the Committee with Appendix 6.  The SFC conducted a study regarding historic school buildings.  The initial study was to identify school buildings that are 50 years or older.  There are 242 buildings on the SFC inventory that are 50 years or older.  Some of the buildings are storage buildings, pump houses, teacherages and some truly historic buildings.  The State Historic Preservation Office will make recommendations to the National Registry of Historic Buildings about which buildings should be given historic designations.

 

Charles Lanham of the Cheyenne Historic Preservation Board addressed the Committee.  Mr. Lanham provided the Committee with Appendix 7.  It is important to understand that a school is not historic just because it is 50 years or older.  There are explicit standards for what makes a building historic.  One factor is the physical integrity of the building.  Another factor is whether the building was designed by a prominent architect.  State Historical Preservation Office is trying to focus and target schools that should be kept.

 

Maintenance of Building Enhancements

Nancy Thompson of the SFC addressed this issue.  Ms. Thompson gave the Committee Appendix 8.  Ms. Thompson raised the issue of the different set asides and major maintenance payments.  The 2004 8% one time set aside could be spent by the districts for enhancements with the approval of the SFC.  Any unspent money could be carried over by the district.  A 10% set aside approved by the 2005 legislature is currently available to the districts.  The SFC does not allow carry over of this amount.  The Committee suggested that this set aside should also be carried over as well.  The intent was for the 10% to be used in the same manner as the 8%.  School districts cannot build anything new with major maintenance monies; they can only maintain that which already exists.  The Committee directed staff to draft legislation, containing both options, to deal with the issue of the carry over of the 10%.  In regard to general bond issues the district is responsible for determining if the bond is going to be tax free.  A district can issue general obligation bonds for building enhancements.  The districts can include a sinking fund the interest upon which the districts can use for the maintenance of the enhancements.  By requiring a sinking fund as part of the bond issue the State can ensure that the set aside can be used for major maintenance in providing the basket of goods and that the district can use the sinking fund for major maintenance of enhancements.  In a bond issue situation not only will the cost of the enhancement be known to the voters but also the true cost of maintaining the enhancement resulting in a more educated voter.  The Committee directed staff to draft legislation that if you choose to enhance with a bond issue any new bond issue, after July 1, 2007, must include a sinking fund for maintenance expenses.    

 

School Facilities Commission Issue Updates:

 

            Modified Building Assessment System

Jim Whitaker and Leslie Zumbrunnen of Facility Engineering Associates addressed the Committee pertaining to building assessments.  FEA works extensively with governmental agencies doing asset management and building condition assessments.  Their goal is to aid in the development of an objective and credible asset management plan that will allow the SFC to assess the condition of schools statewide, prioritize needs and capture data in robust applications.  The Committee was presented with Appendix 9 by FEA.  This is the firm selected by the SFC to develop a new assessment system.

 

            SFC Data Systems

Nancy Thompson of the SFC addressed the Committee.  Ms. Thompson supplied the Committee with Appendix 10.  They are in the process of implementing a new data system generated by a software company called Maximus.  The software is called Facilitymax.  The software is being used by several agencies in Wyoming.  It is a job cost accounting system.  The software will allow overall integration of data addressing more than one issue identified in the audit.

 

            Major Maintenance Program Audit Report/Update

Pam Robinson of the Department of Audit gave the report to the Committee.  Ms. Robinson also gave the Committee Appendix 11.  She performed the audit of the capital construction program and on major maintenance payments.  Ms. Robinson discussed the reason for the audit and the procedures used in conducting the audits.  Overall the audit determined that the capital construction program was running efficiently.  There were a couple of recommendations made to the agency such as putting more of their processes in a policy and procedures manual and streamlining the process to make their payments on a more timely basis.  Ms. Robinson is currently working on the major maintenance audit.  The main task was to determine if the formulas used by the SFC comply with statute, which they do.  The only real finding they have so far is that there does not seem to be a clear understanding of what is or is not major maintenance.  The Committee felt like this issue could be handled by the SFC through rule and regulation.

 

            SFC Budget Matters

Teresa Kunkel of the SFC addressed the Committee regarding this issue.  The SFC is going to make a supplemental budget request.  Ms. Kunkel referred the Committee back to Appendix 5.  The SFC is going to request two additional positions, one position being an administrative position and the other being a project manager position.  The SFC wants to have project managers strategically located across the state.  The SFC is going to request a replenishment of the inflationary funds spent this year. The SFC is also going to request money to address unanticipated projects.   

 

Public Comment

Lauri Cadrich of the City of Cody speaking on behalf of WAM, addressed the Committee regarding health and safety issues relating to infrastructure going to the new school sites.  Ms. Cadrich wanted the Committee to reconsider its decision on setting aside funds to deal with this issue on a health and safety basis. 

 

Representative Harvey addressed the Committee regarding constituent issues with major maintenance and construction items in her school district.  Many of her constituent concerns are in regard to ongoing construction while the elementary school is in session.  At the elementary school playground equipment is in disrepair and concrete around the school is torn up.  A power pole was dropped during recess blocking the entrance to the playground forcing students and parents to walk several blocks for ingress and egress to the facility.  Representative Harvey urged the Committee to look at the timing of major maintenance and construction activities and wants the process implemented by the SFC refined so no other community has to go through what Lovell has. 

 

Other Business/Future Committee Meetings

Senator Massie addressed the Committee regarding pre schools, childcare facilities and empty school buildings.  The number one problem is finding suitable buildings in which to provide early childhood services.  Senator Massie would like to find a way for the programs to be housed in empty school facilities.   Specifically requests that when space is surplus the district have the option of putting pre-schools and child care facilities in the excess space and allowing districts to continue to receive maintenance payments but not counting against the district allocation.  The Committee agreed to direct draft legislation be prepared to deal with the issue to look at during the next meeting. 

 

The next meeting date will be announced.      

 

Meeting Adjournment

There being no further business, Co-Chairman Coe adjourned the meeting at 3:50  p.m.

 

Respectfully submitted,

 

 

Senator Coe, Co-Chairman