Call to Order and Roll Call
The1st meeting of the Capital Planning Advisory Board was held on Tuesday, May 27, 2014, at 10:00 AM, at Eastern State Hospital, Lexington, Kentucky. Senator Stan Humphries, Chair, called the meeting to order, and the secretary called the roll.
Members:Senator Stan Humphries, Co-Chair; Representative Terry Mills, Co-Chair; Charles Byers, Carole Henderson, John Hicks, Sherron Jackson, Jane Driskell on behalf of Mary Lassiter, James W. Link, and Mark Overstreet.
Guests testifying before the board: Mary Begley, Commissioner, Department for Behavioral Health, Developmental and Intellectual Disabilities, Scott Baker, Energy Management Program Manager, Division of Facilities Management, Beth Jurek, Executive Director, Office of Policy and Budget, Shari Randle, Director, Division of Systems Management, Office of Administrative and Technology Services, and Dr. Allen Brenzel, Medical Director, Department for Behavioral Health, Developmental and Intellectual Disabilities, Cabinet for Health and Family Services (CHFS).
Approval of Minutes
A motion to approve the minutes of the September 24, 2013, meeting was made by John Hicks, seconded by James Link, and approved by voice vote.
Introduction of New Staff Member
Chairman Humphries introduced Katherine Halloran. Ms. Halloran has been a Legislative Analyst for the Capital Projects and Bond Oversight Committee and the Capital Planning Advisory Board since November 2013. She is replacing Josh Nacey, who was promoted to Committee Staff Administrator for the Capital Projects and Bond Oversight Committee.
Two spreadsheets, relating to newly authorized capital projects, and state agency maintenance pool allocations, were included as information items in members’ folders. These items did not require action.
Chairman Humphries noted that several of the newly authorized capital projects were recommended by members in the last capital planning cycle as high priority for funding. He said the 2014-2016 Executive Budget authorizes about $33.5 million for agency miscellaneous maintenance pools. This amount is an increase of about $2 million over the 2012-14 budget appropriation, however, it falls short of what agencies need. In the last capital plan for the first biennium, agencies estimated the need for about $86 million for its miscellaneous maintenance pools.
Instructions for the 2016-2022 Capital Plans
Chairman Humphries said the Instructions for the 2016-2022 Capital Plans were included in the members’ materials. Three forms in the planning system have been changed to better match the forms in the Kentucky Budget System, and the instructions have been updated to reflect these changes.
With there being no questions, a motion to approve the instructions was made by Representative Mills, seconded by James Link, and approved by roll call vote.
CHFS Report on Capital Projects – Replacement of Eastern State Hospital
Mary Begley, Scott Baker, and Dr. Allen Brenzel discussed the Eastern State Hospital Replacement project. Construction of the new facility began in September 2010, and was completed in May 2013, at a cost of $118,135,000. The new complex, situated on 29 acres at the UK Coldstream Research Park, consists of an inpatient facility with 239 patient beds, a 17-bed neuro-behavioral unit for patients with acquired brain injuries, and a long-term care unit. Four personal-care homes, totaling 50,000 square feet with 16 beds each, are provided for patients that will eventually return to a community setting.
Mr. Baker said the new facility was designed and built under the guidelines of the Kentucky High Performance Building Standards. It is one of the first new buildings to be designed and built with integration to the Commonwealth Energy Management Control System (CEMCS) as part of the plan. Full implementation and functionality of CEMCS is nearing completion.
Relative to the Lexington-Fayette Urban County Government Public Facilities Corporation Lease Revenue Bonds, Series 2011A (Eastern State Hospital project), Mr. Hicks said the debt service is $10 million annually for 30 years rather than 20 years, as indicated by the debt service schedule included in member folders.
In response to a question from Mr. Hicks, Mr. Baker stated that the Commonwealth has achieved about $4 million in energy savings since the pilot implementation of CEMCS began.
In response to questions from Representative Mills, Dr. Brenzel said prior to the opening of the brain injury unit at Eastern State Hospital, Frazier Rehabilitation Institute in Louisville, and Cardinal Hill Rehabilitation Hospital in Lexington, accepted brain injury patients. Dr. Brenzel further stated that the hospital serves approximately 80 counties within its defined catchment area of central and northern Kentucky.
In response to another question from Representative Mills, Dr. Brenzel said before patients are transitioned back to the community, a patient risk assessment is conducted by staff. Former patients have daily or weekly contact with staff, are transported to and from appointments, and have access to medications.
Relative to a question from Senator Humphries, Dr. Brenzel said the most significant needs, relative to patient custodial care, include access to qualified workers, and access to medication, telehealth resources, and training.
CHFS Report on Capital Projects – Eligibility Systems Integration Services project
Beth Jurek and Shari Randle reported on the Eligibility Systems Integration Services project. The Capital Projects and Bond Oversight Committee approved this project in October 2013 at a scope of $80,000,000 (Federal Funds $66,000,000; Restricted Funds $14,000,000.) The project was initially included in the cabinet’s 2014-2020 capital plan as its number two priority ($11,378,000 General Funds; $46,122,000 Federal Funds, Plan Version 3.)
The project will integrate the cabinet’s intake and eligibility programs through the development of a single enterprise eligibility system. The current eligibility system, known as KAMES (Kentucky Automated Management and Eligibility System), is a 20-year old legacy mainframe system that is obsolete and not fully integrated. The project is scheduled for completion in December 2015. Programs administered by KAMES include Supplemental Nutrition Assistance Program; Temporary Assistance for Needy Families program; Low Income Home Energy Assistance program; State Supplementation for the Aged, Blind, and Disabled; Medicaid Waiver programs; and Women, Infants, and Children programs.
In response to a question from Chairman Humphries, Mrs. Jurek said that the new system should last about 20 years.
Representative Mills commented positively on the Eligibility Systems Integration Services project and said he was supportive of the project.
Chairman Humphries said the board will meet in August in Frankfort, tentatively at the new AOC facility, and at Western Kentucky University later in the fall.
With there being no further business, a motion to adjourn the meeting was made. The motion was seconded, and the meeting adjourned at 11:13 AM. A tour of the facility followed the meeting.