Capital Planning Advisory Board


Minutes of the<MeetNo1> 2nd Meeting

of the 2011 Calendar


<MeetMDY1> June 17, 2011


Call to Order and Roll Call

The<MeetNo2> 2nd meeting of the Capital Planning Advisory Board was held on<Day> Friday,<MeetMDY2> June 17, 2011, at<MeetTime> 9:00 AM, in<Room> Room 169 of the Capitol Annex. Representative Melvin Henley, Chair, called the meeting to order, and the secretary called the roll.


Present were:


Members:<Members> Senator Jack Westwood, Co-Chair; Representative Melvin Henley, Co-Chair; Senator Paul Hornback, Representative Ron Crimm; David Buchta, Charles Byers, Ben Fletcher, Carole Henderson, John Hicks, Bill Hintze, Ryan Keith, Mark Overstreet, and Carol Palmore.


Guests testifying before the Board: Hank List, Deputy Secretary, Bruce Scott, Director of Environmental Protection, and Tony Hatton, Director of the Division of Waste Management, Energy and Environment Cabinet; Peter Ervin, Executive Director, Office of Legal Services, Jamie Anderson, IT Director, and Mark Gilfold, Deputy Executive Director, Public Protection Cabinet; Charles Harman, Director, Division of Budget and Financial Management, Kentucky Department of Education; Joseph Meyer, Cabinet Secretary, Ryan Green, Executive Director, Office of Budget and Administration, and Stuart Johnston, Director and Information Technology Officer, Education and Workforce Development Cabinet; Beth Jurek, Executive Director, Office of Policy and Budget, Kathy Frye, Deputy Executive Director, Office of Administration and Technology, Rodney Murphy, Director, Division of Infrastructure and User Support, and Richard Dugas, Manager, Facilities Management Branch, Cabinet for Health and Family Services; Robert L. King, President, Dr. John Hayek, Vice President for Budget, Policy and Planning, Allen Lind, Vice President for Information and Technology, and Sherron Jackson, Associate Vice President, Budget, Policy and Planning, Council on Postsecondary Education; Eric Shaffer, Director for Facilities Management, Kentucky Community and Technical College System; John Osborne, Vice President of Campus Services and Facilities and Brian Russell, Director of Planning, Design and Construction, Western Kentucky University; Dr. Randy Dunn, President, Tom Denton, Vice President of Finance and Administrative Services, Kim Oatman, Chief Facilities Officer and Director, Facilities Design & Construction, Bob Jackson, Vice President, Development and Governmental Relations, Murray State University; Dr. Wayne Andrews, President and Michael Walters, Vice President of Administration and Fiscal Services, Morehead State University; Jack McNear, Associate Vice President for Capital Planning, Construction and Facility Operations and Joseph Gronefeld, Senior Project Manager, Capital Planning and Construction, Kentucky State University; James Street, Acting Executive Vice President for Administration, Eastern Kentucky University; Larry Blake, Assistant Vice President for Facilities Management, Dr. Denise Robinson, Dean, College of Health Professions, Dr. Bill Attenweiler, Professor of Psychology and Associate Dean of the College of Arts and Sciences, Northern Kentucky University; Angela Martin, Vice President for Financial Operations and Treasurer and Bob Wiseman, Vice President for Facilities Management, University of Kentucky; and Larry Owsley, Vice President for Business Affairs, University of Louisville.


LRC Staff: Shawn Bowen and Jennifer Luttrell


Approval of Minutes May 13, 2011

There was a motion made by Mr. Hicks, seconded by Mr. Buchta and adopted by voice vote to approve the minutes of the May 13, 2011 meeting.


Information Items

Ms. Bowen said included in members’ folders were two information items submitted in response to member questions at the May meeting: a Request for Proposal for operation of a private hangar at the Capital City Airport in Frankfort, and Correspondence from Dr. Robert Tarvin, Executive Director, School Facilities Construction Commission, regarding the Bellewood Home for Children in Anchorage.


Review of Agency Capital Plans

Representatives from the Energy and Environment Cabinet included Hank List, Tony Hatton, and Tony Scott. Mr. List gave a brief overview of the Cabinet’s capital plan, which included projects for the redesign of an information technology (IT) system for the Mine Safety, Licensing and Mapping project, purchase of replacement wild land fire suppression equipment and a two-way radio system; soil replenishment projects, and the acquisition and construction of a new tree nursery.


In response to a question from Representative Henley, Mr. Hatton said that the waste at Maxey Flats is considered a low level nuclear waste because it has alpha and beta emitters, primarily tritium which comes from nuclear reactors.


In response to a question from Mr. Hicks as to the current condition of Maxey Flats, Mr. Hatton indicated that an interim cap was placed on the site in 2003. Under the terms of an agreement the Commonwealth has with the potentially responsible parties, if the interim cap continues to work over a 10-year period, the Commonwealth will be responsible for putting the final cap on Maxey Flats.


Responding to a question from Representative Henley, Mr. List replied that the National Guard provides helicopters capable of moving water to put out forest fires if the need arises.


Peter Ervin and Jamie Anderson, representing the Public Protection Cabinet, gave a brief overview of the Cabinet’s capital plan. The Cabinet reported the need for one project, an information technology system for the Kentucky Horse Racing Commission.


In response to a question from Ms. Palmore, Ms. Anderson replied that the new system will be of benefit to the agency, as it will provide for much better communication between the Kentucky Horse Racing Commission, enforcement personnel, and race track personnel.


In response to a question from Mr. Hicks, Ms. Anderson stated that the Cabinet has identified a vendor to provide this “off-the-shelf” software.


The next plan to be reviewed was for the Kentucky Department of Education (KDE). Representing KDE was Charles Harmon. Mr. Harmon gave a brief overview of the capital plan, which included projects for the Kentucky School for the Blind in Danville, Kentucky, and the Kentucky School for the Deaf in Louisville, Kentucky.


In response to questions from Representative Henley, Mr. Harmon noted the Department has included two projects to replace instructional devices. He explained that the use of small handheld devices for reading electronic books (called Nooks) would save the state money by helping to reduce the costs of textbooks. The Department has not funded the cost of text books in the past; however, if a student cannot afford to buy textbooks, the district picks up that cost.


The next plan to be reviewed was for the Education and Workforce Development Cabinet. Representing the Cabinet were Joseph Meyer, Ryan Green, and Stuart Johnston. Mr. Meyer gave a brief overview of the Cabinet’s capital plan, which included projects for Kentucky Educational Television (KET), and the Department for Libraries and Archives (KDLA).


In response to a question from Mr. Hicks regarding KDLA’s plan to expand the Libraries and Archives Building, Mr. Johnston replied that the Cabinet has applied for two federal grants to help fund this project.


Relative to a question from Mr. Hicks regarding the Enterprise Case Management System, Mr. Meyer said the current system would be upgraded, not replaced. The system will be updated with the capability to provide information on the number of people receiving benefits.


In response to a question from Senator Westwood, Mr. Meyer replied that KDLA, in order to meet the current need for records storage space, has released a Request for Proposal (RFP) to expand and consolidate two offices for storage. He added that at this time, KDLA is not in danger of losing any permanent records.


In response to questions from Representative Henley, Mr. Meyer stated that a task force has been assembled by the Governor to further study career and technical education in Kentucky. The Cabinet also supports this initiative and has appointed a steering committee to look deeper into the concept of aligning, consolidating, and expanding the quality of VoTech programs.


The next plan to be reviewed was for the Cabinet for Health and Family Services. Representing the Cabinet were Beth Jurek, Kathy Frye, Rodney Murphy, and Richard Dugas. Ms. Jurek gave a brief overview of the Cabinet’s capital plan, which focused on the top General Fund project requests of four departments within the Cabinet.


In response to questions from Representative Crimm, Ms. Jurek responded that the construction of new cottages at Hazelwood is nearly complete and patients will begin transitioning this fall. The old building will not be demolished, but will be used by Central State staff as administrative offices or by other state agencies as office space.


In response to questions from members regarding the number of generators the Cabinet owns, Ms. Jurek replied that the Cabinet is responsible for 23-30 generators statewide. This number has decreased over time as the power of each generator has increased. Mr. Dugas replied that the Federal Emergency Management Agency (FEMA) assisted with the cost of the generators for the Caney Creek Facility, but they do not expect any additional federal funds or homeland security funds.


In response to a question from Mr. Hintze, Mr. Dugas responded that the Eastern State Hospital project is 13 to 15 percent complete.


Relative to questions from Senator Westwood, Ms. Frye answered that the upgrades to the Radiation Health Lab and the Medicaid Eligibility System would be obsolete in ten years, but the system should still be usable. Ms. Jurek added that one of the features of the upgrade to the Medicaid Eligibility System would be the ability to share information electronically with other states.


Addressing a question from Senator Westwood regarding the Web Portal System project, Ms. Jurek stated that this project would create a significant savings across the state because it would expedite the time it takes to process a case.


In response to another question from Senator Westwood, Ms. Jurek replied that the Cabinet no longer constructs buildings with flat roofs; however, funding is needed to maintain older Cabinet-owned facilities that have flat roofs.


The next plan reviewed was for the Council on Postsecondary Education. Representing CPE were Robert King, Dr. John Hayek, Allen Lind, and Sherron Jackson. Mr. King gave a brief overview of the capital plan which included eight information technology projects required to maintain a statewide postsecondary and adult education database and provide access to the Kentucky Virtual Campus and the Kentucky Virtual Library.


In response to a question from Mr. Hicks, Mr. Lind stated that the statewide network infrastructure to support these projects has been in place for several years. He added that the National Broadband Plan calls for regional education networks to serve community anchor institutions such as public libraries, public safety locations, and health care providers.


Mr. Eric Schaffer, representing the Kentucky Community and Technical College System, gave a brief overview of the College’s capital plan, noting that the plan mainly addresses future capacity, the adequacy of existing space for intended use, and maintenance and renovation needs.


The next plan reviewed was for Western Kentucky University. Mr. Osborne gave a brief overview of the capital plan which focused on restoring the architectural integrity of WKU’s campus and emphasized capital renewal, replacement and renovation of existing facilities, and upgrading campus infrastructure.


In response to a question from Mr. Hicks regarding the Renovate Downing University Center-Phase V project, Mr. Osborne responded that student fees will cover 60 percent of the cost of this project, and the University’s auxiliary services would cover the remaining 40 percent. The student government supported an increased University center fee for this project and a resolution to that effect was approved by the University’s Board of Regents and the Council on Postsecondary Education. The University is now waiting on agency bond authorization.


The next plan reviewed was for Murray State University. Representing the university were Dr. Randy Dunn, Tom Denton, Kim Oatman, and Bob Jackson. Dr. Dunn gave a brief overview of the university’s capital plan, including the highest priority projects that included general funds.


In response to a question from Representative Crimm regarding the need for a new university library (Construct New University Library, 2012-2014, $62,033,000), Dr. Dunn stated that even though academic libraries are moving towards the use of electronic libraries, there is still a tremendous need to provide a repository for written materials. The new library would not only house rare books and government documents, but it would also provide the opportunity for students to come together in work groups and teams. He added that there is not enough space in Melanie and Jones Halls to supply enough computer kiosks or stand-alone electronic libraries for students.


Relative to a question from Mr. Hicks regarding the Construct Paducah Regional Campus Facility project (2012-2014, $11,000,000), Dr. Dunn said this project will be funded primarily by bonds that would be sold by McCracken County. Also, there will be a contribution from each of the three entities in support of the debt service on the bonds and the university would also solicit gifts in the amount of $1,000,000.


The next plan reviewed was for Morehead State University (MoSU). Representing the university were Dr. Wayne Andrews and Mike Walters. Dr. Andrews discussed the highest priority capital projects for the university, including the Construct Enrollment, Retention, and Student Support Services Center project, the Renovate Combs Classroom Building project, the Construct Vet Tech Clinical Services Center project, and the Construct MSU Campus at Ashland Classroom Building project.


Representative Henley commented that the General Assembly should not have to oversee agency bonds for university projects.


Mr. Jack McNear and Mr. Joseph Gronefeld discussed Kentucky State University’s capital plan. The university’s highest priority projects include the expansion/renovation of the Betty White Nursing Building, the Central Boiler Plant Replacement project, the construction of three facilities - a Business and Technology Center, a Fine Arts building, and a pedestrian bridge across US 60.


Mr. James Street gave a brief overview of Eastern Kentucky University’s capital plan. The discussion focused primarily on the university’s top funding request, the Construct Science Building, Phase 2 project (2012-2014, $65,040,000).


Representatives from Northern Kentucky University included Mr. Larry Blake, Dr. Denise Robinson, and Dr. Bill Attenweiler. Mr. Blake said the University’s top General fund project requests include the Construct Health Innovations/Renovate Old Science project, the Construct New College of Business project, a new Chiller Plant, and the renovation of the Civic Center building. The University has key projects for which agency bond authorization is needed in 2012-2014, including the Expand/Renovate Albright Health Center project, for which the students have approved a building fee that will fully fund the bonds for this project.


In response to a question from Senator Westwood, Mr. Blake replied that the HVAC in the Science Building is old and deteriorating, and the university will eventually have to close the building, but they are not sure when.


Senator Westwood noted that NKU turns away about 300-400 qualified students per year because there is not enough space to house students. He commented that it is distressing that the University must turn away qualified students.


The next plan reviewed was for the University of Kentucky. Representing the University were Angela Martin and Bob Wiseman. The highest priorities of the University include the completion of a new Patient Care Facility, the renovation of the Reynolds Building which currently houses the College of Fine Arts, the construction of the Gatton Building Complex, the Law School Building, and a Bio-Medical Research Building.


In response to a question from Mr. Keith regarding the status of the Law School Building project, Mr. Wiseman responded that a new facility for the Law School is a top priority. The University has done preliminary planning on this project, and they are planning to use private funds for this project.


Mr. Hicks said the VFA study conducted in 2007 determined that some the university’s student housing facilities have exceeded their useful life. He asked how the University plans to address this issue. Mr. Wiseman stated that the University is looking at privatization to complete the construction of new student housing buildings.


Mr. Larry Owsley gave a brief overview of the University of Louisville capital plan, including the Belknap Classroom/Academic Building project and several renovation projects.


Board Discussion of Planning Issues

Representative Henley stated that in addition to the project recommendations, the statewide capital plan typically includes policy recommendations made by members.


Senator Westwood said that the Board may want to consider policy recommendations regarding agency bond authority for the universities and updating the state leasing laws. He noted that more research is needed on both topics.


Mr. Hicks suggested that the Office of State Budget Director and the Capital Planning Advisory Board staff work together to develop a high priority list of capital renewal projects that members would vote upon.


Schedule of Future Meetings

Representative Henley stated that the next meeting is scheduled for Friday, July 29 starting at 9:00 AM.



With there being no further business to discuss, the meeting was adjourned at 3:01 PM.