[House Hearing, 114 Congress]
[From the U.S. Government Publishing Office]
HEARING ON H.R. 3262; H.R. 3484; H.R. 4056; H.R. 4129; A DRAFT BILL TO
AMEND THE VETERANS' BENEFITS PROGRAMS IMPROVEMENT ACT OF 1991 TO
AUTHORIZE VA TO SELL PERSHING HALL; AND, VA'S LEGISLATIVE PROPOSAL
REGARDING FISCAL YEAR 2016 CONSTRUCTION PROJECTS
=======================================================================
HEARING
before the
SUBCOMMITTEE ON HEALTH
of the
COMMITTEE ON VETERANS' AFFAIRS
U.S. HOUSE OF REPRESENTATIVES
ONE HUNDRED FOURTEENTH CONGRESS
FIRST SESSION
__________
TUESDAY, DECEMBER 8, 2015
__________
Serial No. 114-47
__________
Printed for the use of the Committee on Veterans' Affairs
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Available via the World Wide Web: http://www.fdsys.gov
______
U.S. GOVERNMENT PUBLISHING OFFICE
98-702 WASHINGTON : 2017
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Washington, DC 20402-0001
COMMITTEE ON VETERANS' AFFAIRS
JEFF MILLER, Florida, Chairman
DOUG LAMBORN, Colorado CORRINE BROWN, Florida, Ranking
GUS M. BILIRAKIS, Florida, Vice- Minority Member
Chairman MARK TAKANO, California
DAVID P. ROE, Tennessee JULIA BROWNLEY, California
DAN BENISHEK, Michigan DINA TITUS, Nevada
TIM HUELSKAMP, Kansas RAUL RUIZ, California
MIKE COFFMAN, Colorado ANN M. KUSTER, New Hampshire
BRAD R. WENSTRUP, Ohio BETO O'ROURKE, Texas
JACKIE WALORSKI, Indiana KATHLEEN RICE, New York
RALPH ABRAHAM, Louisiana TIMOTHY J. WALZ, Minnesota
LEE ZELDIN, New York JERRY McNERNEY, California
RYAN COSTELLO, Pennsylvania
AMATA COLEMAN RADEWAGEN, American
Samoa
MIKE BOST, Illinois
Jon Towers, Staff Director
Don Phillips, Democratic Staff Director
SUBCOMMITTEE ON HEALTH
DAN BENISHEK, Michigan, Chairman
GUS M. BILIRAKIS, Florida JULIA BROWNLEY, California,
DAVID P. ROE, Tennessee Ranking Member
TIM HUELSKAMP, Kansas MARK TAKANO, California
MIKE COFFMAN, Colorado RAUL RUIZ, California
BRAD R. WENSTRUP, Ohio ANN M. KUSTER, New Hampshire
RALPH ABRAHAM, Louisiana BETO O'ROURKE, Texas
Pursuant to clause 2(e)(4) of Rule XI of the Rules of the House, public
hearing records of the Committee on Veterans' Affairs are also
published in electronic form. The printed hearing record remains the
official version. Because electronic submissions are used to prepare
both printed and electronic versions of the hearing record, the process
of converting between various electronic formats may introduce
unintentional errors or omissions. Such occurrences are inherent in the
current publication process and should diminish as the process is
further refined.
C O N T E N T S
----------
Tuesday, December 8, 2015
Page
Hearing On H.R. 3262; H.R. 3484; H.R. 4056; H.R. 4129; A Draft
Bill To Amend The Veterans' Benefits Programs Improvement Act
Of 1991 To Authorize VA To Sell Pershing Hall; And, VA's
Legislative Proposal Regarding Fiscal Year 2016 Construction
Projects....................................................... 1
OPENING STATEMENTS
Honorable Dan Benishek, Chairman................................. 1
Honorable Julia Brownley, Ranking Member......................... 2
Honorable Jerry McNerney, Member................................. 6
WITNESSES
Honorable John Shimkus, U.S. House of Representatives, 15th
Congressional District; Illinois............................... 3
Prepared Statement........................................... 26
Honorable Ted Lieu, U.S. House of Representatives, 33rd
Congressional District; California............................. 4
Prepared Statement........................................... 26
Honorable John L. Mica, U.S. House of Representatives, 7th
Congressional District; Florida................................ 5
Prepared Statement........................................... 28
Honorable Mike Coffman, U.S. House of Representatives, 6th
Congressional District; Colorado............................... 7
Prepared Statement........................................... 30
Raymond C. Kelley, Director of the National Legislative Service,
Veterans of Foreign Wars of the United States.................. 10
Prepared Statement........................................... 39
Howard Trace, Director of the National Library and Museum
Division, The American Legion.................................. 12
Prepared Statement........................................... 40
Accompanied by:
Lou Celli, Director of the National Veterans Affairs and
Rehabilitation Division, The American Legion
Stella S. Fiotes, Director of the Office of Construction and
Facilities Management, Office of Acquisition, Logistics, and
Construction, U.S. Department of Veterans Affairs.............. 17
Prepared Statement........................................... 43
HEARING ON H.R. 3262; H.R. 3484; H.R. 4056; H.R. 4129; A DRAFT BILL TO
AMEND THE VETERANS' BENEFITS PROGRAMS IMPROVEMENT ACT OF 1991 TO
AUTHORIZE VA TO SELL PERSHING HALL; AND, VA'S LEGISLATIVE PROPOSAL
REGARDING FISCAL YEAR 2016 CONSTRUCTION PROJECTS
----------
Tuesday, December 8, 2015
U.S. House of Representatives,
Committee on Veterans' Affairs,
Subcommittee on Health,
Washington, D.C.
The Subcommittee met, pursuant to notice, at 10:03 a.m., in
Room 334, Cannon House Office Building, Hon. Dan Benishek
[Chairman of the Subcommittee] presiding.
Present: Representatives Benishek, Bilirakis, Huelskamp,
Coffman, Wenstrup, Brownley, Takano, and Kuster.
Also Present: Representative McNerney.
OPENING STATEMENT OF DAN BENISHEK, CHAIRMAN
Mr. Benishek. The Subcommittee will come to order.
Before we begin, I would like to ask unanimous consent for
a fellow Committee Member, Congressman Jerry McNerney from
California, to sit on the dais and participate in today's
proceedings. Without objection, so ordered.
Good morning. Thank you all for joining us today. This
morning we are going to discuss six pieces of legislation all
of which concern some element of VA's construction and real
property asset portfolio.
The last two years have seen a string of high-profile
failures for VA major construction projects across the country.
These failures are exemplified, of course, by the replacement
medical center construction project in Denver, Colorado.
As we are all too well aware at this point, the Denver
project began as a discussion in 1999 between the VA and the
University of Colorado regarding the possibility of a shared
facility on the former Fitzsimons Army Base in Aurora,
Colorado.
Almost 17 years later, after undergoing a laundry list of
scope changes, cost increases, and schedule delays that
culminated in a decision one year ago by the Civilian Board of
Contract Appeals that found the VA in breach of its contract
with the project's general contractor, VA finally came to
Congress to admit that the project required an additional $830
million in funding which was then slightly adjusted to a total
authorization requirement of $1.675 billion, triple the
original authorization to continue moving forward.
Though Congress and this Committee have taken steps to
address many of the deficiencies that have been identified in
the management of VA major construction projects, serious
concerns persist about the department's ability to effectively
manage a complex and costly construction portfolio.
Until these concerns are sufficiently addressed, it would
be remiss for this Committee to authorize VA to carry out any
more major construction projects or leases without extreme
scrutiny and due diligence.
Along those lines, I am extremely disappointed that the
Subcommittee did not receive the text of the VA's legislative
proposal concerning fiscal year 2016 construction authorization
until 8:42 this morning. The department had more than adequate
notice of this hearing and there is no excuse for not providing
the text of their own legislative proposal in a more timely
manner.
I am grateful to the sponsors of the bills that are being
considered today and to the witnesses from our veteran service
organizations and VA for being here to share their views.
I look forward to hearing their testimony, and now yield to
Ranking Member Brownley for any opening statement she may have.
OPENING STATEMENT OF JULIA BROWNLEY, RANKING MEMBER
Ms. Brownley. Thank you, Mr. Chairman, and thank you for
calling this legislative hearing.
I would also like to thank my colleagues who are testifying
on their legislation to help improve veterans' access to health
care and VA services.
Although there are many important bills dealing with
construction on this morning's agenda, I would like to focus on
the Los Angeles Homeless Veterans Leasing Act, a bill which I
have cosponsored and which will help fight veteran homelessness
in southern California. Ten percent of America's homeless
veterans live in the Los Angeles region including some from my
own congressional district in Ventura County.
This legislation authorizes the settlement agreement
Secretary McDonald reached with the plaintiffs of a long-
running lawsuit regarding the misuse of the West Los Angeles VA
Campus and is supported by the Disabled American Veterans, The
American Legion, and the Vietnam Veterans of America.
Unless it is passed, the secretary will not have the
authority he needs to transform the West LA Campus into a
first-class community for veterans and their families with
improved access to VA housing, to VA health care, and to VA
services.
I look forward to hearing from my friend, Representative
Lieu, on his bill and all the witnesses today on their
legislation.
Thank you, Mr. Chairman. I yield back.
Mr. Benishek. Thanks.
I am honored to be joined this morning by several of my
colleagues to speak in support of their legislation. With us
today is the Honorable John Shimkus from Illinois; the
Honorable Ted Lieu from California; Mr. Mica from Florida
should be joining us shortly; the Honorable Jerry McNerney from
California; and Mr. Coffman from Colorado as well should be
joining us.
Thank you all for being here today and for sponsoring the
bills on today's agenda. We will begin with Representative
Shimkus.
You have five minutes. Please proceed.
OPENING STATEMENT OF JOHN SHIMKUS
Mr. Shimkus. Thank you, Mr. Chairman and Ranking Member
Brownley. Thank you for the opportunity to come before this
Committee to discuss the simple yet important bill and for
taking the time to consider it today.
As a five-year active Army officer and a 23-year reservist,
I always feel home with my fellow veterans and those on this
Committee that serve them.
In my district is a town called Danville, Illinois which is
a small town by most standards, but it is the largest in my
congressional district. It has a rich history. It was the home
of Dick Van Dyke who grew up in Danville and Speaker Joe
Cannon, the namesake of the building we are in today.
Two institutions Danville prides itself on are the VA
Illiana Health Care System and Danville Area Community College.
The relationship between the VA and Danville Area Community
College is an excellent example of two institutions working
today to serve our veterans.
The location of the VA hospital adjacent to the community
college campus provides our veterans returning home a one-stop
opportunity for medical treatment and help with benefits while
at the same time the education and training experiences that
help them transition into a career in civilian life.
[The attachment appears in the Appendix]
Mr. Shimkus. My bill H.R. 3262 is simple. It allows the VA
to transfer .68 acres of land from its property in Danville in
exchange for 1.06 acres of land currently owned by Danville
Area Community College. Swapping the land provides benefits to
both the VA and the local community.
The Danville VA has looked into the possibility of building
a fence along its perimeter, but as the property lines are
currently drawn, that boundary is not a straight line. Swapping
these two parcels will fix that problem, cutting construction
costs should the VA choose that option.
The VA's current property that would be transferred
includes a Carnegie library that is more than a century old.
The building has become so deteriorated and expensive to
maintain that the VA has stopped using it and it now sits
vacant.
Danville Area Community College and the local community on
the other hand see great potential for the library. With the
generous help of a private donor, Danville Area Community
College plans to transform the old building into an art center.
By swapping these parcels of land, we can relieve the VA of
the burden of maintaining an old building while providing the
community with a historically significant location for a
cultural attraction. While small in terms of acreage, this swap
is big in terms of benefits for the VA, Danville, and my
constituents.
I thank the Committee for this opportunity and their
consideration. I look forward to working with you to move this
bill forward. This weekend is the historic Army/Navy game and
with great trepidation, I will end with a hardy beat Navy. And
I yield back my time.
[The prepared statement of John Shimkus appears in the
Appendix]
Mr. Benishek. Thank you, Mr. Shimkus.
Representative Lieu, you may now proceed with your
testimony.
OPENING STATEMENT OF TED LIEU
Mr. Lieu. Thank you, Chairman Benishek, Ranking Member
Brownley, and Members of this Committee. Thanks for letting me
discuss H.R. 3484, the Los Angeles Homeless Veterans Leasing
Act.
[The attachment appears in the Appendix]
Mr. Lieu. As a veteran, it is a privilege to represent the
West LA Medical Center, the largest VA in the Nation. This
hospital does a tremendous amount of good every day for our
veterans.
However, LA County is also ground zero for homeless
veterans with thousands sleeping on the streets each night. The
numbers are daunting and the urgency to provide permanent homes
to these veterans is a priority.
This West LA VA has a complicated history, and for many
years, the campus was mismanaged. However, as Ranking Member
Brownley stated, there has been a significant shift that
occurred this year when the VA secretary settled a lawsuit
brought on behalf of homeless veterans.
The terms of the settlement call for the development of a
massive plan for the entire campus. In addition, part of this
plan is a comprehensive homeless plan that has been developed
for the region and implementation has already begun.
A critical part of the massive plan and the homeless plan
includes the construction of permanent supportive housing. As
this Subcommittee knows, housing first is an evidence-based
model for providing stable, permanent housing so veterans can
both be housed as well as get services following their housing.
The best vehicle for the development of this housing is a
public/private partnership known as enhanced-use leases. These
leases enable leasing terms for up to 75 years. Every other VA
facility in the Nation can do these leases except this one.
There was a complicated history for why this was not allowed,
but now the climate is different and the massive plan and
homeless plan will not succeed without this important leasing
tool.
The public comment period for the draft master plan closed
yesterday. The VA will now review the nearly 1,000 public
comments and update the draft plan. And I hope that we can work
all stakeholders to move forward, but we do need this
legislation to allow this master plan to go forward so that
these housing units can be built.
I also note that nothing in this legislation is meant to
impede a subway stop to occur at the West LA VA Campus if that
is what happens in the future. This legislation has nothing to
do with that.
I would like to enter my complete statement as well as
letters and resolutions in support of H.R. 3484 into the
record. And thank you again for the Committee for letting me
testify.
[The prepared statement of Ted Lieu appears in the
Appendix]
Mr. Benishek. All right. Thank you, Representative Lieu.
And without objection, we will add that stuff to the record.
[The attachment appears in the Appendix]
Mr. Benishek. Representative Mica, please proceed with your
testimony.
OPENING STATEMENT OF JOHN L. MICA
Mr. Mica. Well, thank you and good morning, Mr. Chairman
and Ranking Member.
[The attachment appears in the Appendix]
Mr. Mica. The simple proposal H.R. 4056, and that would
take an existing nursing facility that has been vacated with
the construction of a new one down in Lake Nona, Florida to the
south of Orlando and opened about a year ago. Some of that
space has been used for transition and staffing our new
hospital, but we have known it is going to be vacant for some
time, that facility.
In fact, back in 2012, and I would like this to be made
part of the record, I wrote then Secretary Shinseki that it is
going to be vacant, what are we going to do with it. Then in
2014, I wrote Gibson it is going to be vacant, what are we
going to do with it. So now it is vacant.
And with the VA's difficulties sometimes in moving forward,
I have hundreds of aging veterans in Central Florida and we
have a vacant nursing home built fairly recently. I was there
for the dedication, I think in 1998, about 17 years old and in
very good condition.
It has been used for some swing space and some other
intermediate services with a new complex opening to the south.
The quickest way to get this activated is to transfer it to the
State of Florida. That is what this bill does. The State VA now
has seven nursing facilities, excellent, and I visited them.
They do it cheaper, better, faster. They have a scale that
you can manage things with. They have agreed to take it on, so
we have agreement from the State. I think we have agreement
from the feds, VA, and that is what the bill does. It asks for
a little waiver because it was built for singles and not
doubles. And many of the veterans like that accommodation. Some
can be transitioned to doubles.
But we want to get it done as soon as possible, and get our
veterans the care and attention in nursing facilities as the
population ages and the needs continue.
So that is basically the proposal, and I would ask your
support. We want to get it done as soon as possible.
[The prepared statement of John L. Mica appears in the
Appendix]
Mr. Benishek. Thank you for your testimony. We will add
those documents to the record without objection.
Mr. Mica. Great. Thank you.
Mr. Benishek. Thanks for your testimony.
[The attachment appears in the Appendix]
Mr. Benishek. Mr. McNerney, you are recognized.
OPENING STATEMENT OF JERRY MCNERNEY
Mr. McNerney. I thank Chairman Benishek and Ranking Member
Brownley and Members of the Subcommittee.
[The attachment appears in the Appendix]
Mr. McNerney. I want to talk a little bit about a proposal,
H.R. 4129, to allow the Federal Government to partner with non-
Federal organizations to facilitate construction. We have seen
how the Federal construction project has been mismanaged in the
past.
Members in my community have waited ten years to break
ground on a project and it is being held up because of
mismanagement at the VA. So I am going to read my prepared
statement.
In my district, I have experienced firsthand how veterans
have needed to travel long distances to receive care. I
volunteered to go with a veteran to the nearest VA facility for
a podiatry appointment, a half an hour podiatry appointment. It
took all day. It took ten hours of time for us to leave our
house, go to the facility, return. And it was a very maddening
situation.
In 2013, 50 major construction projects were under
management by the VA at a cost of more than $12 billion. The
GAO report found that some of the VA's largest medical
construction project costs had skyrocketed, as Mr. Coffman has
noted, and significant delays threw these projects off track.
Projects in Denver, Las Vegas, Orlando, New Orleans have all
experienced significant setbacks in their construction.
Veterans and their families are waiting meanwhile and taxpayers
suffer.
The GAO found that as of January 2015, delays for these
projects range from 14 to 86 months and cost increases range
from 66 percent to 144 percent. This includes the cost of the
New Orleans project increasing by $40 million and the Orlando
project being delayed by 57 months.
The buildings of the VA are on average 60 years old. The VA
currently manages and maintains more than 5,600 buildings and
almost 34,000 acres of land. According to the VA, more than
3,900 infrastructure gaps remain at an estimated cost of
between $54 billion and $66 billion to close including $10
billion in activation costs.
So we can see that the VA is not doing a very good job of
managing. We need another model so that we can move forward
expeditiously with these projects.
My bill, the Jumpstart VA Construction Act, is intended to
help reduce the construction backlog of VA projects by allowing
for more partnerships between non-Federal entities such as
state and local governments.
My bill would permit these non-Federal entities and
partners to raise half of the funds for major medical projects
and facilitate the construction process. Project restrictions
include major medical facility projects where Congress has
already approved appropriated funds, the design and development
phase is complete, and the construction has not begun as of the
date of the enactment of this act.
The VA is already moving from managing major construction
projects and has proposed having the Army Corps of Engineers be
the project lead, though it is my understanding that this
process has yet to be resolved, and I hope to get a chance to
speak to the secretary this week. And I look forward to hearing
from the VA about this effort and what progress, if any, has
been made in determining how to best manage major construction
projects.
I am open to working with Members of this Committee and
Subcommittee to enhance my bill, but I am committed to
reforming the process to make sure that we are providing
veterans with more opportunities to access quality health care.
Now, as I conclude, I just want to say that I appreciate
the VA supporting the inclusion of $450 million for the
realignment project that would facilitate the building of the
French Camp facility in my district, and I yield back.
Mr. Benishek. Thank you, Mr. McNerney.
I would like to recognize Mr. Coffman. You may begin.
OPENING STATEMENT OF MIKE COFFMAN
Mr. Coffman. Thank you, Mr. Chairman, for holding this
legislative hearing and including my legislation that would
authorize the Department of Veterans Affairs to sell Pershing
Hall, a five-star boutique, 24-room hotel, restaurant, and club
in the heart of Paris, France.
[The attachment appears in the Appendix]
Mr. Coffman. What is today known as Pershing Hall was
purchased by The American Legion in 1928 to serve as a memorial
for General John J. Pershing and the soldiers who fought in
World War I. The United States Government acquired the property
in the 1930s and after a long period of neglect, VA obtained
jurisdiction and control over Pershing Hall in 1991.
Later in 1998, VA signed a 99-year enhanced-used lease to a
French firm allowing it to invest millions of dollars to
renovate and redevelop the property as a hotel. Today, Pershing
Hall is popular in Paris for its open sky restaurant and a
vertical garden of more than 100 feet.
My colleagues on the dais have been distributed several
photos of Pershing Hall as it exists today.
In short, my bill provides VA the authority to sell
Pershing Hall and it requires an independent real estate
assessment of the property prior to any sale to ensure
taxpayers receive the fair market value.
Additionally, VA should be required to ensure that any
personal property originally belonging to The American Legion
such as historical artifacts and artwork be returned when the
facility is sold. The proceeds from the sale and the corpus of
VA's Pershing Hall revolving fund would be deposited into VA's
major construction account for use on construction and
renovation projects in the United States.
My bill is not the first proposal to sell Pershing Hall. In
1993, Senator Jay Rockefeller, the Chairman of the Senate
Veterans' Affairs Committee, introduced legislation which would
have authorized the sale of the property. At that time, VA
supported the provision and testified that the authority would
allow the secretary more options to consider in determining the
best interest of the United States Government.
One pertinent portion of the 1993 committee report still
rings true today. Quote, ``Managing property in Europe is a
very unusual activity for VA. The agency, therefore, is not set
up to perform this activity in a cost-effective manner. The
only incentive to lease the property would arise from the need
to safeguard the building as a memorial, but this objective
could be accomplished through restrictive covenants if the
property were sold.''
Aside from the infusion of capital into VA's construction
account, authorizing the sale of Pershing Hall also puts two
broader VA reform initiatives into focus. First, managing
property leases is not a core competency of the Department of
Veterans Affairs.
The Oversight and Investigations Subcommittee held a
hearing earlier this year examining VA's wasteful land
management practices after the Government Accountability Office
identified significant problems with VA's land-use agreements.
Specifically, GAO found problems with unenforced payments or
other agreement terms, expired agreements, and instances where
land-use agreements did not exist.
As this Committee deliberates how best to refocus VA
towards its core competencies, oddly helping VA get out of the
French real estate market is a safe bet.
Finally, VA consistently asks Congress to grant it
legislative flexibility to dispose of its excess
infrastructure, most recently in its November plan, to
consolidate community care programs. It seems odd that VA
should consider the sale of domestic VA property while the sale
of a hotel in Paris is off limits.
Thank you again, Chairman Benishek and the Ranking Member,
for allowing me to give this testimony on Pershing Hall. And I
urge all my colleagues on this Committee today to join me in
this effort. With that, I yield back.
[The prepared statement of Mike Coffman appears in the
Appendix]
Mr. Benishek. Thank you, Mr. Coffman.
Well, thank you, gentlemen, for these great common-sense
proposals here.
I am going to yield myself five minutes for questions. I
have just got a couple of questions.
Mr. Shimkus, are there any drawbacks or challenges in
completing this transfer? I mean, we are not going to find out
about some problem in the future here?
Mr. Shimkus. You know, we have talked with all the
stakeholders, for really now, I have represented this area
about three plus years. And the answer is no. No one has come
up with any objection. It is just efficiency.
And this Carnegie library which I have been in is, you
know, a library that is falling in. And there are some local
community leaders that have pledged a lot of money to help
rehab that.
I think that is the most compelling thing. It gets it off
of the VA books and gets it into the community college books.
And it will be turned into an art center which is also a great
thing. So there is no objection that I have heard of.
Mr. Benishek. All right. Cool.
Mr. Lieu, the second panel, the VFW is going to testify
about 3484 but recommend amending the bill to remove a section,
Section 2B3. That would create carve-out for the existing
lessees. According to the VFW, there should be no special
treatment or consideration for any current leases that cannot
fulfill the requirements of Section 2B2 of the legislation.
Can you tell me more about this?
Mr. Lieu. Sure. It is not a carve-out. The VA secretary
still has to approve all leases at the campus. And this section
also says the provision of services to veterans still has to
remain the predominant focus of activities.
So it is not a carve-out. It simply authorizes the VA
secretary, if he wants to, to approve this lease. In addition,
I would note that the local VFW supports this legislation.
Mr. Benishek. Okay. I think that is all that I am asking.
Ms. Brownley, do you have any questions for the panel?
Ms. Brownley. Yes, just quickly to Mr. Mica.
So with the transfer of the facility, the VA involvement in
the community living center will be finished is my
understanding and there will be no further requests for funding
for the veterans living there; is that correct?
Mr. Mica. That is right. We are going to transfer the
property, the nursing facility to State VA and they will
operate it. And so it is a win-win, less Federal taxpayer
monies, and they actually run their facilities. They have seven
in the State of Florida. It is not an amateur hour transfer. So
we are pretty excited about it and we have the need. And that
is the most important thing.
Ms. Brownley. Thank you.
And to Mr. Lieu, again, thank you for bringing, I think,
this very, very important bill forward. And I am proud to be a
coauthor and standing with you on this legislation.
There is no question previously the facility has been
mismanaged and I think we are finally taking the right steps
forward, I think, with almost universal community backing on it
which would not have been the case a couple of years ago. I can
attest to that.
And I think I just wanted to ask you if you could just
expand a little bit beyond the homelessness issue because we
know how pervasive that is in Los Angeles and, you know, ten
percent of the United States population, homeless population is
in the Los Angeles area.
But if you could talk a little bit about some of the other
provisions in the bill that are going to provide services
particularly as it relates to UCLA, the Brentwood School, and
talk about some of the services that will be available for
veterans that are going to help our veterans in the local area.
Mr. Lieu. Sure. And thank you for that question.
So as part of this settlement that the VA secretary entered
into, basically the campus has to be veteran-centric. And so
the services, the leases all have to have that focus. So this
bill doesn't say that the VA secretary has to approve anything.
It is still completely in the discretion of the VA secretary.
And so the VA still has to go through all these leases and
decide, for example, with Brentwood School, do they want to
approve that lease or not. This bill doesn't say anything about
that. What Brentwood School would need to do is to say what we
are doing is essentially focused on veterans and providing
services to veterans. And that is a decision that they will
work out or not work out with the department. Same with UCLA.
Same with any other lease on this campus.
What this bill intends to do is deal with the homeless
housing part of it, that they need to build these public/
private partnerships to construct the housing. So that is what
this bill primarily deals with.
And then on the homeless, I do want to note that, first
off, thank you for all your work on this issue as well, but the
West LA VA Campus can be part of the solution. It can't be the
only one. And so there is a recommendation that the entire LA
County as well as other counties are going to be involved to
help reduce homelessness across the southern California region.
Ms. Brownley. Thank you.
I yield back.
Mr. Benishek. Do you guys have any questions, Mr.
Huelskamp, Mr. Coffman? No?
All right. I think you are all excused. Thank you very much
for your legislation and your testimony.
We are going to now welcome the second panel to the witness
table. Joining us on the second panel is Raymond Kelley, the
Director of the National Legislative Service for the Veterans
of Foreign Wars of the United States, and Howard Trace, the
Director of the National Library and Museum Division of The
American Legion. Mr. Trace is accompanied by Lou Celli, the
Director of the National Veterans Affairs and Rehabilitation
Division of The American Legion.
Thank you all for being here today and your hard work and
advocacy on behalf of our veterans. I look forward to hearing
the views of your Members.
We will begin with Mr. Kelley.
STATEMENT OF RAYMOND C. KELLEY
Mr. Kelley. Mr. Chairman, Ranking Member Brownley, Members
of the Committee, thank you for the opportunity for the VFW to
testify before your Subcommittee today.
H.R. 3262 authorizes the Department of Veterans Affairs to
convey approximately .6 acres of land included on which is
building number 48 to the Danville Area Community College. In
exchange, Danville Community College will convey approximately
1.06 acres of land back to VA.
This conveyance will benefit both VA and the community
college. VA has plans to place a fence around the property and
it will save the VA money by making the property a straight
line.
VA will also save funds that would otherwise be obligated
for the maintenance of building number 48 which is currently
unutilized. The community college wants building number 48 so
it can be refurbished and used as an art center.
This conveyance makes sense to the VFW. It will relieve the
VA of a building they no longer use, saving them money, and the
college gains a building they can use for students. The VFW
supports this legislation.
The West LA Campus was deeded through a will to the Federal
Government in 1888 with the explicit intent for the property to
be used to assist veterans. This bill will realign the property
with the original intent of that deed.
The VFW agrees in principle with this legislation because
it returns the property to its rightful owners, the veterans of
West LA. The VFW has concerns, though, with Section 2,
paragraph B3. This section of the bill appears to provide a
specific carve-out for one or more of the current leases. There
should be no special treatment or consideration for any current
leases that cannot fulfill the requirements of Section 2,
paragraph B2 of this legislation.
The VFW supports the intent of H.R. 3484, but would ask
that paragraph B3 be removed to ensure that all leases meet
requirements of paragraph B2 of this bill.
H.R. 4056 will authorize the conveyance of a community
living center or a CLC at the Lake Baldwin Veterans Affairs
Community Outpatient Clinic to the Department of Veterans
Affairs of Florida. The 60-bed CLC described in this
legislation is currently being used as transitional storage
while VA moves to its new facility.
Currently, the VA does not have plans to reopen the CLC.
But by conveying this building to the Florida Department of
Veterans Affairs, the facility will be able to reopen quickly
to serve the veterans of the Lake Baldwin area. The VFW
supports this legislation.
The Department of Veterans Affairs has managed Pershing
Hall which is now owned by VA and is leased as a hotel in
Paris, France. The current lease is set to expire in 2097. The
VFW believes that VA should not be in the hotel business, but
disposal of the hotel should be a business decision and not
just an effort to no longer own the building.
The VFW is glad to see that the draft legislation contains
language stating the property be sold at fair market value
determined by an independent assessment. The VFW would,
however, recommend that this Committee consider amending the
draft legislation to include language that would call for a
prospectus that will outline the cost, if any, of breaching the
lease agreement and the loss of annual revenue that the lease
currently provides.
With this fiscal data, VA and the Committee can more
clearly see the fiscal positives and negatives of selling this
property.
The VFW supports the legislative proposal that will allow
VA to plan, design, construct, and lease joint VA/DoD shared
medical facilities. There are already current sharing
agreements and 11 joint VA/DoD facilities that have been viewed
very positively by both communities. The authority makes sense
and aligns with the Independent Budget's framework that will
allow VA to better partner with public agencies to better
provide veterans with timely access to health care. The VFW
supports this legislative proposal.
The VFW has not taken a position on H.R. 4129, but we look
forward to working with Congressman McNerney on this
legislation. Public/private partnerships are a cornerstone of
the future of VA and they need to be explored. We just need a
little more time to take a look at that piece of legislation.
Mr. Chairman, this concludes my testimony. I will be happy
to answer any questions you or the Committee Members may have.
[The prepared statement of Raymond C. Kelley appears in the
Appendix]
Mr. Benishek. Thanks, Mr. Kelley.
Mr. Trace, you may begin your statement.
STATEMENT OF HOWARD TRACE
Mr. Trace. In May of 1935, addressing the spring meeting of
the National Executive Committee of The American Legion,
Chairman Paul Herbert of the Paris Memorial Building Committee
had this to say about the historic landmark Pershing Hall.
Quote, ``At present time, the building is the center of
American patriotic and civic activities in France and
Continental Europe. It has enabled The American Legion to carry
on a splendid program of rehabilitation among our veterans
residing in France and has extended help to countless numbers
of Americans particularly veterans who have become destitute in
Europe. It has been a refuge for many destitute families and
has been a haven for American orphan children and has supported
for years as high as 200 orphan children. It has maintained for
years a school for American children in France and has afforded
the only opportunity to instruct these children in the English
language and the traditions of Americanism,'' unquote.
Good morning, Chairman Benishek, Ranking Member Brownley,
and Members of the Committee. On behalf of our national
commander, Dale Barnett, and over two million members of The
American Legion nationwide, thank you for inviting us here
today to discuss the legislation before this Committee.
You have my written remarks on the slate of legislation. I
would like to spend some time today focusing on one of the
bills, Representative Coffman's draft legislation to facilitate
the sale of Pershing Hall.
As the opening story relates, Pershing Hall once was a
touchstone in the middle of Paris, a visible symbol of the
foothold of the American Expeditionary Force carved into the
landscape of war-torn Europe in the Great War. Even today, if
you walk the streets of Paris, you see above the door to this
building quite distinctly the emblem of The American Legion
marking what was once a center of remembrance of the American
sacrifices in the first World War.
The building was purchased by The American Legion and set
up following our national convention in 1927. Subsequent
legislation would turn ownership over to the U.S. Government in
1935 and fully to the VA in 1991.
In recent years, the building has operated as a luxury
hotel and spa far from its initial purpose as a memorial and a
place of remembrance for those who fought and sacrificed on
behalf of our allies.
When The American Legion asked the government to pay off
and assume control of the building, it was never imagined that
the building would be used for any purpose other than as a
memorial and space in Paris for those who had served in the
first World War and subsequent wars.
Mr. Coffman's legislation would pave the way for the
building to be sold. VA has many tasks to serve veterans and
property management overseas is not at the top of the list of
those tasks. If there are ways this could help VA's much
troubled construction fund, then it is a productive use of
funds and we support Mr. Coffman's bill.
The American Legion was founded among other reasons to
preserve the memories and incidents of our associations in the
Great Wars. In 1991, VA provided a partial inventory of the
artifacts and items associated with Pershing Hall and the list
is extensive covering over 14 pages and two continents. We
believe there are pieces of history in Pershing Hall itself in
Paris, in Compiegne, France, in VA's central office here in
Washington, in the VA Medical Center in Mountain Home,
Tennessee, even in VA's New York regional office. There may be
even more locations and more items, but they still represent an
important piece of the history of this country and the men and
women who fought for America.
The materials deserve to be kept together for the original
purpose, to honor and remember General Pershing and those who
fought in World War I. The American Legion wants to establish
permanent American Legion custodianship of the Pershing Hall
art, artifacts, furnishing, memorabilia, and other items so
that they can be interpreted for public display and protected
from damage or disappearance.
All of these historical artifacts would need to be
collected, inventoried, appraised, and prepared and preserved.
There is a Pershing Hall revolving fund of investments
dedicated to providing for the needs of Pershing Hall with VA
authorized to utilize the funds under certain prescribed
circumstances.
The American Legion recognizes that with the sale of
Pershing Hall, this fund and the monies contained therein will
transfer to the construction accounts as dictated by the
legislation.
However, it is wholly appropriate that some portion of
these funds is needed to provide for the preservation and
proper treatment of the artifacts and material be dedicated to
the transfer of these vital historical artifacts.
The monies were initially intended to provide for the
preservation of history. And while they have been utilized for
many other purposes since that time, that does not remove the
original intent.
If there are costs associated with transferring, shipping,
storing, appraising, and conserving artifacts through the
transfer process, The American Legion believes these costs
should be borne by the revolving fund.
The American Legion is very grateful to Representative
Coffman for his ongoing work with The American Legion through
recognition of our role in the history of this landmark.
Through every step of the process, he and his staff have
striven to ensure history is protected and preserved in the
transfer of the property.
It is disconcerting and troubling that this site could have
drifted so far from its initial intended disposition as a place
of remembrance and history. But if it is to have purpose in the
future, at least there is some merit in finally ensuring that
the history it represents is put in the hands of those who will
be careful custodians of the past.
This legislation has the potential to help VA meet the
infrastructure challenges of the 21st century. However, it must
also serve to help preserve the memory of what was fought for
and sacrificed for at the dawn of the 20th century.
Thank you for your consideration today. I am happy to
answer any questions to the best of my ability about The
American Legion's involvement in Pershing Hall, and Director
Lou Celli of the Veterans Affairs and Rehabilitation Division
is here to assist with any questions about other legislation.
[The prepared statement of Howard Trace appears in the
Appendix]
Mr. Benishek. Thank you both for your testimony.
I am going to yield myself for some questions. Mr. Kelley,
tell me more about this West LA Campus concern. I tried to
bring it up when Mr. Lieu was here. Did he address the concerns
that you have in his answer there? I just want to be sure that
this all moves forward. I mean, he said it wasn't a carve-out.
You said it is a carve-out. So can you just elaborate a little
more about your concern?
Mr. Kelley. So the VFW is not opposed to any of the leases
that are there to be maintained there. But we feel there ought
to be parity in the way that all those leases are looked at.
And if there is a specific provision for a specific one or two
of those current leases, then there is not parity between
those.
I believe that the UCLA property could very easily fall
under Section 2B2, Subsection D, the peer activity
socialization and physical recreation portion of that, and
wonder why that lease isn't being held to the same scrutiny as
any of the current or future leases that are being held there.
So that is what we want. We want to make sure that
everybody is treated equally. This property has obviously
gotten to the point of mismanagement. That didn't happen
overnight. It was over time that little things were overlooked,
and if we start legislation by overlooking some little things,
we are heading back down that road in another hundred years
from now.
Mr. Benishek. All right. What policies would you like to
see the VA put in place to make sure this doesn't happen?
Mr. Kelley. I think Section 2B2 does that. I think that
very clearly states how those leases have to be involved on
that campus. And I believe that each one of the leases that are
there that are going to be maintained, any future leases,
should be held to that scrutiny.
Mr. Benishek. All right. Mr. Trace, The American Legion
testimony forcefully references a need to ensure that revenues
resulting from leases in the West LA Campus are well-
documented, tracked, and transparently spent.
Can you elaborate a bit on the concerns regarding revenues
on the West LA Campus?
Mr. Celli. Chairman, I would be happy to answer that for
you.
Mr. Benishek. All right.
Mr. Celli. And The American Legion echoes some of the same
concerns that the VFW has. And we also understand that the
intent of the proposed or of the draft agreement does cover
many of those concerns, but we look to the past so that we can
try to see what is going to happen in the future.
We want to make sure that the revenue that was received by
the West LA VA facility is accounted for in some of those prior
leases. And we are very concerned that there are millions of
dollars that have been received that are unaccounted for even
today. And we have asked for an accounting of that and still
yet have not received it.
We are very pleased that through this draft process,
veteran service organizations were consulted and were involved
in some of those draft proposals. We are very pleased about
that.
And I would be remiss if I didn't point out there is a lot
to be angry at the VA in recent months and years, but we would
not be here today had it not been for Secretary McDonald and
Under Secretary Sloan stepping up as soon as they got into
position to make sure that this didn't get any more out of hand
than it needed to and was able to broker this agreement. And we
applaud them for that.
And we would like to be able to continue as a community in
that same vein of working together to make sure that this
property is returned to the veterans in the way that the
original deed had intended.
Mr. Benishek. Are there any specific provisions? I mean, I
guess I am not familiar enough with the terms to identify how
the land is going to be used for a veteran purpose.
Mr. Celli. There is, Chairman, and I think it is 2B that
specifically says that any use of this property be for the
specific benefit of our veterans. The language that is in
there, it is ironclad. It is concrete. And as long as they
stick to not only the theme but the word of the document, then
I think we will be going in the right direction.
Mr. Benishek. All right. Thanks.
I yield back. Ms. Brownley.
Ms. Brownley. Thank you, Mr. Chairman.
I guess I would just ask a general question from all of you
in terms of what you might see, certainly in the draft plan
that poses the biggest challenge for VA to implement the
proposed plan if you have any observations to share.
Mr. Kelley.
Mr. Kelley. It is a big plan, so there are a lot of details
that just need to be made sure that they are followed through
on. I don't think there are any big road blocks in any of the
ideas and any of the provisions that are in that. Again, it
needs parity. It needs a clear focus on each one of those and
ensure, like Mr. Celli said, that on the back end of that, that
we don't lose sight of what that money and what those leases
were meant for.
Mr. Celli. Ranking Member, the plan clearly represents the
spirit of the original agreement and the spirit of what the
veteran service organizations were hoping for. What we are
concerned about is, there is some discussion about some public
land use, a dog park or something, and we just want to make
sure that this land sticks to the exact language of the
agreement that preserves this space for the sanctity of our
veterans healing.
Ms. Brownley. Thank you so much.
And, Mr. Kelley, I understand your argument about this
Section 2B3, but I also understand that this is, as Mr. Celli
expressed, it is ironclad about how this property has to be
veteran-centric and that is key not only for the homelessness
issue, but other services provided to veterans in the area.
And my veterans travel from Ventura County every single day
to receive services there, so it is not just Los Angeles. It is
really a regional issue.
So I guess, you know, with respect to particularly UCLA, I
don't know whether you have sat down to meet with them yet and
if you haven't, if you would meet with them to see what they
are at least proposing, you know, under this potentially new
proposed plan and agreement.
Mr. Kelley. I would be happy to sit with them. I have read
the documents that they have submitted to the secretary. And I
believe everything that they have said in those documents still
fits under Section 2B2. So having a separate section for them
just seems a little out of place.
So I would be happy to sit down and talk with them, but,
again, everything that I have read, everything I have looked at
leads me to believe that they would qualify under the previous
provision.
Ms. Brownley. So in terms of looking at what UCLA has
proposed to this, you don't oppose their proposal?
Mr. Kelley. No, not at all.
Ms. Brownley. It is just the language--
Mr. Kelley. Yes.
Ms. Brownley [continued]. --within the agreement you
believe what they proposed would fit in well to another
section--
Mr. Kelley. Right.
Ms. Brownley [continued]. --within the agreement?
Mr. Kelley. And just to keep that focus on what those are,
there are nine specific provisions that you have to meet, and
to keep the focus on that instead of having some softening of
those provisions for them or any other future contracts because
it does set a precedent.
Somebody else comes along and says, hey, we would like to
do this, but we will make sure that we do a little extra. Okay.
And then we just go down that road.
So I believe that they fully fit into the first section of
that, and that is where they belong and what they are proposing
is absolutely accurate.
Ms. Brownley. Thank you very much.
I yield back.
Mr. Benishek. Thank you.
Mr. Coffman, do you have any questions?
Mr. Coffman. No, Mr. Chairman.
Mr. Benishek. All right. Thanks.
Ms. Kuster.
Ms. Kuster. Thank you for joining us today.
And I don't mean to rock the boat, but we are all talking
around something that I want to make sure I understand.
There is a baseball stadium that UCLA uses on the property.
Is that what we are talking about and how does that benefit the
health care or the well-being of veterans?
Mr. Kelley. So there is a larger agreement with UCLA. Part
of that agreement is the use of about seven acres for their
baseball stadium. In their proposal, they are going to have
activities. They are going to do things for veterans in the
community on that facility.
So they are heading in the right direction long term.
Again, just where it is placed in this language in the bill is
what is important.
Ms. Kuster. But you think that the baseball stadium will
benefit the veterans or you think the promises that are being
made--
Mr. Kelley. I don't believe it currently is, but I believe
under what they are proposing, it will, because they could have
family days. They could have rec leagues that are used on that
property. So those types of things would directly benefit
veterans in that community and that does fit the spirit of what
this is. And then the larger agreement that VA and UCLA has
would be protected under that as well.
Ms. Kuster. And tell me a little bit more about the larger
agreement. That is where there is--
Mr. Kelley. It is a learning hospital. The VA pays for the
training of UCLA docs and there is research that goes on,
research and development. And under the proposals, that would
be expanded greatly and I think those are important provisions.
Ms. Kuster. To benefit veterans?
Mr. Kelley. Absolutely, yes.
Ms. Kuster. Okay. All right. Well, I guess I just would say
for the record on behalf of the taxpayers and the veterans that
I agree with you that we need to be vigilant that these
properties are used to benefit veterans.
And I also just want to say for the record, I want to join
my colleague and friend, Mike Coffman, in cosponsoring your
bill. And thank you very much. My father and my father-in-law
were proud veterans of World War II, but I think running a
luxury hotel and spa in Paris in their honor is probably not
the best use of our funds. So thank you very much.
Thanks, Mr. Chair. I yield back.
Mr. Benishek. Thanks, Ms. Kuster.
Anyone have any further questions?
Well, thank you, gentlemen, for being here this morning. I
sure appreciate your testimony and your answers to our
questions. So you are now excused.
And I would like to welcome our third and final panel to
the witness table. Joining us from the Department of Veterans
Affairs is Ms. Stella Fiotes, Director of the Office of
Construction and Facilities Management for the Office of
Acquisition, Logistics, and Construction. She is accompanied by
Mr. Vince Kane, a Special Assistant to the Secretary.
Thank you both for being here, and, Ms. Fiotes, you are
recognized for five minutes when you are ready.
STATEMENT OF STELLA S. FIOTES
Ms. Fiotes. Good morning, Chairman Benishek, Ranking Member
Brownley, and Members of the Subcommittee. Thank you for the
invitation to present our views on several bills that would
affect VA benefits, programs, and services.
Seated with me is Vincent Kane. Mr. Kane is a Special
Assistant to the Secretary.
I would like to begin by thanking Representative Ted Lieu
for introducing H.R. 3484 and for the support from other
Members. The bill would authorize VA to enter into enhanced-use
leases and other agreements for housing and services
benefitting veterans and their families. VA firmly supports
this bill as it will enhance our current efforts to revitalize
the campus and help end homelessness in greater Los Angeles.
This legislation helps us in three ways. First, it would
allow VA to enter into agreements with housing providers, local
governments, community partners, or nonprofits to provide
housing and services for those veterans and their families that
are homeless or at risk of homelessness.
Second, it will allow VA to revitalize the campus into a
rich and vibrant community that puts the needs of veterans
first in a manner consistent with VA's ongoing efforts to
complete a new master plan for the campus.
And, third, it will ensure the campus honors the underlying
deed that transferred the property to the Federal Government in
1888 to be a safe, welcoming, and healing environment for
veterans.
We appreciate the Committee's support for this legislation
and look forward to working closely with each of you on its
passage and implementation.
[The attachment appears in the Appendix]
Ms. Fiotes. VA also supports our fiscal year 2016
construction legislative proposal. This legislation would
authorize eight major construction projects and 18 major lease
projects for the VA.
In addition, authorization of VA's construction bill would
expand opportunities for VA to work with other Federal agencies
and expand the capabilities of the department's enhanced-use
lease program to allow VA to further repurpose vacant and
underutilized properties reducing the financial burden to
maintain.
The department's main priority is to provide high-quality
care to veterans in facilities that are procured legally,
constructed soundly, and comply with Federal requirements for
accessibility, safety, and security.
If VA's budget request is authorized, points of service for
VA health care would be created or expanded and specifically if
authorized, the proposed 18 leases would provide over a million
and a half square feet of lease space establishing new
presences where VA wasn't before or upgrading existing leases.
VA has taken the necessary steps to put in place sound
construction management processes to ensure success in our
major construction program and for future projects that VA will
continue to manage. These improvements have and will ensure
proper execution of our major construction program and provide
the much needed access to health care for our Nation's
veterans.
We have also engaged with the U.S. Army Corps of Engineers
to continue our longstanding working relationship and we
anticipate a joint effort with them and potential other Federal
entities on our super construction projects over $100 million
that brings us in line with the Department of Veterans Affairs'
Expiring Authorities Act of 2015 which was enacted on September
30th.
H.R. 3262 would require VA to convey six-tenths of an acre
of real property and improvements at the VA Illiana Health Care
System to the Danville Area Community College of Danville,
Illinois. VA supports this legislation and this, in fact, would
bring VA in line with reducing our ongoing infrastructure costs
by decreasing our maintenance costs for this property.
VA also expresses support for H.R. 4056 which conveys the
real property known as the community living center located at
the Lake Baldwin Veterans Affairs Outpatient Clinic in Orlando.
This action is in alignment with the Lake Baldwin Campus
repurpose plan and will permit a productive partnership between
VA and the Florida Department of Veterans Affairs.
We note in our testimony the need to address some
operational and technical concerns which arise from the fact
that the land transfer is in connection with an effort to
establish a state veterans' home. We are glad to discuss these
issues with the Committee.
In 1991, Congress enacted legislation to transfer
jurisdiction, custody, and control of Pershing Hall to VA.
After several other pieces of legislation, Congress authorized
VA the ability to out-lease the building for up to 99 years.
And in 1998, VA executed a 99-year lease agreement with a
developer which in turn made several improvements to the
property.
This bill would amend the Veterans Benefit Programs Act of
1991 to authorize the Secretary of Veterans Affairs to sell
Pershing Hall. VA has no objection to selling or disposing of
Pershing Hall with accommodations for our veteran service
organizations.
We would also like to be able to transfer the sale proceeds
for the fair market value of Pershing Hall in VA's capital
accounts without further appropriation. This is a technical and
implementation issue that we would be happy to work with this
Committee to address.
Lastly, VA was recently provided with H.R. 4129, the
Jumpstart VA Construction Act. At this time, VA is unable to
provide official views or estimates, but we appreciate the
concept of exploring strategic public/private partnerships to
allow VA to efficiently expand access to care and services.
Mr. Chairman, thank you for the opportunity to provide VA's
view on several important bills before this Committee today. My
colleague and I would be pleased to answer any questions that
you or other Members of the Committee may have.
[The prepared statement of Stella S. Fiotes appears in the
Appendix]
Mr. Benishek. Thank you very much for your testimony.
I am going to yield myself five minutes for questions. I am
going to start with the issues that the service organization
brought up, mainly the VFW thinks that the UCLA agreement meets
the spirit of veteran support.
Does the Brentwood School agreement meet that same spirit?
Mr. Kane. So with respect to the leases on the campus, the
legislation is very clear about what is veteran focused. We
have been meeting with the existing lessees to clarify that
definition and to give them opportunity to look at their
practices and to submit comments into the master plan.
What we plan to do at the end of the comment period is to
review their remarks to see if it is consistent with the
overall theme and focus of the master plan and to evaluate
whether or not it meets that definition. If it does not meet
the definition, we will be moving forward with exiting those
lessees from the campus.
Mr. Benishek. All right. I guess the other issue apparently
is, is Brentwood Village parking as part of the--I mean, to me,
that seems less veteran-centric.
Mr. Kane. That is correct. That has been there for some
time. However, the community has approached VA and have been
working with the local, state and congressional authorities to
talk about ways that they could be partnering with VA for
employment opportunities in the Brentwood Village.
Again, similar to what we did with every one, we instructed
them to put their ideas and comments into the master plan. It
will be looked at in the master plan as well as through
separate processes where we are looking at all the leases to,
one, make sure it is consistent with the master plan--
Mr. Benishek. You are saying a lot of words, but it doesn't
address the parking thing.
Mr. Kane. So the parking, the proposal the community has
sent into the master plan that we have looked at, one of
thousand comments is to convert that to employment
opportunities for veterans. We have not had time to study that
in detail. We will be looking at that as part of our update to
the master plan. But, again, if it is simply parking, it will
not meet the criteria for veteran focus.
Mr. Benishek. That is kind of what I wanted to hear.
Why did it take so long to get the legislative proposal to
us?
Ms. Fiotes. I apologize for that. There is no excuse.
Mr. Benishek. I am glad to hear that.
Please elaborate on the provision in the legislative
proposal that will expand the definition of medical facilities.
How many more facilities would count as VA medical facilities
under this proposal and tell me why the VA is constrained by
the current definition?
Ms. Fiotes. The expansion of the definition would allow us
to enter into agreements with the Department of Defense for
common use of joint facilities. And currently, there are
limitations with that $10 million threshold on major
construction that put us in the position where the current
definition does not include shared facilities in that
definition. We have run into issues where we cannot commingle
funds with the Department of Defense, for example, in a shared
facility because of that limitation.
Mr. Benishek. All right. It seems like the enhanced-use
lease authority that is outlined in the VA's legislative
proposal is significantly broader than the enhanced lease
authority that the VA is supporting for the West LA Campus.
What is the difference? What is that about?
Ms. Fiotes. I don't believe that is the case, Mr. Chairman.
The intent is to actually mirror what is proposed in the West
LA enhanced-use lease expanded authority.
Mr. Benishek. All right. Well, we definitely have to
follow-up on that because we didn't really have much
opportunity to review the legislative proposal before the
hearing.
What measures will the VA use to make the determination
that a proposed enhanced-use lease is not inconsistent with or
will not adversely affect the mission of the department and
what will be the parameters of the Office of Management and
Budget's review of proposed use leases be?
Ms. Fiotes. I am not sure that I can answer all that in
quite enough detail at this point, but I will tell you that
there will be specific criteria that will be worked out
together to ensure that we follow them consistently across the
entire portfolio of the leases. And I would be glad to follow-
up later with you.
Mr. Benishek. I am just going to have one more quick
question. The major construction project failures have received
a lot of attention because of the Denver issue, but minor
construction projects could be just as vulnerable to cost
overruns.
What are you changing at the VA to make sure that minor
construction projects, and some of them are not so minor in my
view, how are you changing things so those will be on time and
on budget?
Ms. Fiotes. That is an excellent point, Mr. Chairman. And,
in fact, while my office is responsible for major construction,
we have been asked by the deputy secretary to look at the
overall construction program across the VA and ensure that best
practices are, in fact, being applied not only to the major,
but also to the minor program.
We have learned a lot from our mistakes and our challenges
in the major program. We want the opportunity to share those
and implement those across the construction program.
Mr. Benishek. Will you forward to the Committee then the
actual proposal for change within the VA, how this is going to
change the way you have been doing things to the way you are
going to do things in the future?
Ms. Fiotes. I will be glad to share with you the memo that
Deputy Secretary Gibson put out regarding primarily the major
construction program and then in oral discussions, we have been
talking about expanding that to the minor. But we have not put
that in a written policy.
Mr. Benishek. I see. All right.
Ms. Brownley.
Ms. Brownley. Thank you, Mr. Chairman.
Last week or two weeks ago, I had the VA come out to my
district in Ventura County and make a presentation on the draft
plan of the West LA facility to our veteran community in
Ventura County. It was very, very helpful. I appreciate the VA
coming out to do that.
And I just sort of want to put a plug in, in some sense,
because there were issues raised at that meeting for veterans
like my veterans who travel to the West LA facility for
services, you know, every single day. It is the only place
where they are going to receive services or many of the
services that they need. And things like parking was an issue,
you know, not enough parking.
And so I just want to put in a plug to say I think that we
really need to, when we are talking about the facility being
veteran-centric, and I believe that it should be, that we also
need to be thinking about the veterans who have to travel to
that facility and some of the accommodations they may need to
receive similar services that our veterans in the immediate LA
area, you know, have there. So I just want to put, you know,
that plug in.
And also as it relates to the UCLA that has been talked
about, it is my understanding that in addition to the services
that UCLA is providing now to veterans and there are many,
there are a lot of new concepts that they have, I think,
proposed that include things like trauma and addiction work,
adaptive recreational activities, new medical fellowships, a
legal clinic for veterans, and the list kind of goes on from
there.
But in my mind, there is a tremendous benefit and
partnership particularly between UCLA and the VA. And there has
been a long history and a long partnership there. And my son is
currently a medical student at UCLA and has done work, you
know, at the VA that has benefitted him and his education.
And so, you know, I think that we have got to take and
respect to the sort of holistic proposal, not just the baseball
field, although veterans tell me all the time they love going
to the baseball games there. And I think that facility can also
be used for adaptive, you know, recreational activities for our
veterans and so forth.
So I just wanted to, you know, make that statement and be
clear that I think the proposal, and if you would verify that
at least, that that proposal is a more extensive one.
Mr. Kane. Yes. And as the congressman indicated, it is not
a carve-out to UCLA. It is a recognition that we have had a 70-
year academic affiliation with them. We share the same mission
for community service, for teaching and education, training the
next generation of medical professionals.
But we have been clear and UCLA has been responsive in
noting that to be veteran-centric, to be veteran focused, they
need to do more not only at the stadium, but in the service
area. And we have been in discussions with UCLA addressing
issues related to women's health, addiction, mental health,
trauma, traumatic brain injury, legal clinics, all of those
things that you have mentioned.
There has been ongoing and open dialogue with them about
doing more for veterans from a direct service perspective to
demonstrate their commitment to the veterans in the community.
Ms. Brownley. Thank you so much.
And then going back to my veterans in Ventura County, I see
that Oxnard is a proposed lease for this year, and I am happy
to see that. I cannot underscore more how desperately it is
needed in Oxnard. The demand there is quite significant and,
you know, I feel as though our veterans have been under-served
now for years.
We have an interim solution, but this is, you know, the
long-term goal and particularly to have a facility that is VA
run because, quite frankly, the contracts that we have had have
just not worked very well.
And there has just been a disconnect between the contractor
working there and being able to answer and respond to veterans.
So far, it has sort of been, well, you just need to call the
VA. I can't answer your questions. I am a contractor. And it
hasn't worked very well.
But I am just curious to get a rough idea of if, you know,
there is the passage of this bill, how long would you think it
would be before a facility would open in Oxnard for veterans
there?
Ms. Fiotes. Congresswoman, typically we anticipate about a
four-year delivery time if we are going to build a facility,
have a built-to-suit facility leased for us. We have been
working since the Choice Act leases to reduce that timeframe as
much as possible. It takes us about a year to get the official
competition out and sometimes a year to award and then two
years to design and build the facility.
We are working on the front end which is what we still
control to reduce that to hopefully under two years before we
can award the lease. So I would hope that we would be able to
deliver it no later than four years, but my goal would be to
deliver it much earlier than that.
Mr. Kane. I would like to also just acknowledge your
comments about parking and better accommodations on the campus
for veterans and veterans' families traveling in. It is very
much a part of the master plan. There is a recognition, that is
signage, roads, parking, and accommodations for family members.
Ms. Brownley. Yeah.
Mr. Kane. A safe, warm, welcoming place for them to meet
and relax while their loved one is getting care is something
desperately needed and it is very much a part of the master
plan.
Ms. Brownley. Thank you, sir. I appreciate it.
And I yield back.
Mr. Benishek. Ms. Kuster.
Ms. Kuster. Thank you, Mr. Chairman, and thank you for
being with us.
I want to follow-up on a couple of projects in my district
in New Hampshire, the rural northern part of the district. So
we opened a wonderful new CBOC in a town called Littleton, New
Hampshire, very much appreciated.
There was much fanfare announcing that two more CBOCs were
going to be built. One was in Colebrook, New Hampshire and one
is in Berlin, New Hampshire. And what has happened in the past
year is that we seem to run into some lengthy delays. There is
difficulty. I just heard on the news that they are using a van
that is coming with a doctor but only a handful of veterans
have even used it.
I wanted to just, if you could take that back to your folks
and maybe respond to my office directly as to what the status
is of those two in Colebrook and Berlin, New Hampshire. And
just generally, these are smaller projects, so I am very
curious about your minor project leasing or building process.
Are you trying to speed that up and what causes these types
of lengthy delays that hinder the capacity to just provide care
for veterans in a timely way within their community?
Ms. Fiotes. Absolutely, Congresswoman. I will take that
back and we will get a response to you. I don't have specific
information about the two leases. As you mentioned, minor
leases under the million dollar threshold have been
historically managed and handled out of the regional
contracting offices within the Veterans Health Administration.
We are in the process of changing that and, in fact,
consolidating the entire leasing program under my organization
so that we have consistent policies, consistent standards, and
hopefully more streamlined processes.
Part of the delays I have to say start with the fact that
as a Federal agency, we are bound by the competition
requirements and preparing the competition, advertising,
getting bid proposals, and evaluating those and sometimes
dealing with protests takes up a fairly large amount of time.
Historically, we have been not very good at establishing
our requirements up front which would help the process. We have
now moved to standardized clinics that we are using ever since
the Choice Act leases so that we can have again more standard
designs, quicker ability to hit the market with our
advertisement, and then less design time to get from the award
to the actual construction start.
So we will be applying those not only to the majors, but
hopefully in the very near future to some of the minor leases.
But we will get back to you with information about the specific
two leases.
Ms. Kuster. Thank you very much.
And then my other question is around construction, and this
may be for a separate hearing, but I have been hearing about
lengthy delays in payment for construction. And I don't know if
you are aware of that or if that is something that I should
take up with someone else.
Ms. Fiotes. We would have to know more specifics about the
types of projects and which projects. Traditionally, there are
some complaints from contractors where claims are involved and
where we are not able to resolve change orders, but I would
have to know the specifics of the project to tell you. But feel
free to share the information with us, and I will find out who
the appropriate office is and we will get you an answer.
Ms. Kuster. Great. Thank you very much.
Thank you. I yield back.
Mr. Benishek. Thanks, Ms. Kuster.
I just want to follow-up now that my colleagues have had a
chance to ask their questions on your answer about the minor
construction projects there.
You know, it is called a minor construction project, but it
is my understanding it is like a hundred million dollar level.
So as I said before, it is pretty major.
It seems to me, that you would have some written plan to be
sure that that all works more efficiently than it has in the
past, you know, other than what you mentioned, you have had
discussions. And it seems to me that there should be a, you
know, uniform plan for this construction that is being
monitored closely and stays within budget.
Are you in the process of developing that or is there just
going to be continued oral discussions, or can you go on a
little bit more about that?
Ms. Fiotes. Absolutely, Mr. Chairman. The minor
construction threshold is $10 million by law. So when we talk
about minor construction, we are talking about projects under
$10 million that are executed locally by the medical centers,
you know, with contracting staff and engineering staff at the
local facilities.
The hundred million dollar threshold that you mention was
recently applied to the projects that we will be required to
engage other Federal entities to help us with the construction
such as the Corps of Engineers. But $10 million is actually the
threshold for minor construction. So my office does every
construction project over $10 million, not over a hundred
million.
Mr. Benishek. The minor projects are you saying are managed
locally by the local medical center or the--
Ms. Fiotes. They are managed totally by the local medical
center and contracting staff, yes.
Mr. Benishek. All right. All right. Thank you.
Any other questions?
Well, you are excused then.
Ms. Fiotes. Thank you.
Mr. Benishek. Thank you very much to all of our witnesses
for being here today.
I ask unanimous consent that all Members have five
legislative days to revise and extend their remarks and include
extraneous material. And without objection, that is ordered.
The hearing is now adjourned. Thanks.
[Whereupon at 11:20 a.m., the Subcommittee was adjourned.]
A P P E N D I X
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Prepared Statement of John Shimkus
Chairman Miller and Chairman Benishek, Ranking Member Brown and
Ranking Member Brownley, thank you for the opportunity to come before
the Committee to discuss this simple, yet important bill and for taking
the time today to consider it.
In my district, Danville, Illinois is a small town by most
standards, with a rich history. It was the home of Dick Van Dyke, who
grew up in Danville, and Speaker Joe Cannon, the namesake of the
building we're in today. Two institutions Danville prides itself on
today are the VA Illiana Health Care System and Danville Area Community
College (DACC).
The relationship between the VA and DACC is an excellent example of
two institutions working together to serve our veterans. The location
of a VA hospital adjacent to the community college campus provides our
veterans returning home a one-stop opportunity for medical treatment
and help with benefits, while as well as the educational and training
experiences that help them transition into a career in civilian life.
My bill, H.R. 3262, is simple. It allows the VA to transfer 0.6
acres of land from its property in Danville, in exchange for 1.06 acres
of land currently owned by Danville Area Community College (DACC).
Swapping the land provides benefits to both the VA and the local
community. The Danville VA has looked into the possibility of building
a fence along its perimeter, but as the property lines are currently
drawn, that boundary is not a straight line. Swapping these two small
parcels will fix that problem, cutting construction costs should the VA
choose that option.
The VA's current property that would be transferred includes a
Carnegie Library that is more than a century old. The building has
become so deteriorated and expensive to maintain that the VA has
stopped using it, and it now sits vacant. DACC and the local community,
on the other hand, see great potential for the library. With the
generous help of private donors, DACC plans to transform the old
building into an arts center. By swapping these parcels of land, we can
relieve the VA of the burden of maintaining an old building, while
providing the community with a historically significant location for a
cultural attraction.
While small in terms of acreage, this swap is big in terms of
benefits for the VA, Danville, and my constituents. I thank the
committee for this opportunity and their consideration and look forward
to working with you to move this bill forward.
Prepared Statement of Ted Lieu
Chairman Benishek, Ranking Member Brownley, and members of the
Committee on Veterans' Affairs, I want to thank you for inviting me to
testify at today's legislative hearing.
I am pleased to join you to discuss H.R. 3484, the Los Angeles
Homeless Veterans Leasing Act of 2015 that I authored. This legislation
authorizes the Department of Veterans Affairs (VA) to enter into
Enhanced Use Leases at the West Los Angeles Campus.
As a Veteran myself, it is a privilege to represent the West Los
Angeles VA Medical Center (West LA VA), the largest VA Medical Center
in the nation. Our VA hospital does a tremendous amount of good every
day for our Veterans. However, Los Angeles County is also ground zero
for homeless Veterans, with thousands sleeping on the streets each
night. The numbers are daunting and the urgency to provide permanent
homes to these Veterans must be a priority.
The West LA VA has a complicated history. It has not always served
our Veterans to the standard that they deserve and the American people
expect. For many years the campus was mismanaged and inappropriate uses
were permitted to operate on the property.
I am pleased to report, however, that a significant shift has
occurred this year among all stakeholders, including the VA, Veteran
Service Organizations, elected officials, the community, and our
Veterans. We have come together on the heels of a landmark legal
settlement of a lingering lawsuit brought by the ACLU on behalf of
homeless Veterans. The terms of the settlement call for the development
of a Master Plan for the West LA VA to guide its future service to our
Veterans. In addition, a comprehensive Homeless Plan has been developed
for the region and implementation has already begun.
A critical part of the Master Plan and Homeless Plan includes the
construction of Permanent Supportive Housing. As the Subcommittee
knows, ``Housing First'' is the evidence-based model for providing
stable permanent housing to Veterans followed by intense services.
Unfortunately, the West LA VA does not currently offer any of these
desperately-needed Permanent Supportive Housing units.
The best vehicle for the development of Permanent Supportive
Housing is a public-private partnership using an Enhanced Use Lease.
These leases allows for leasing terms of up to 75 years, enabling
affordable housing developers to gain financing and accrue tax credits
while constructing housing for our Veterans.
Every other VA facility across the nation has the authority to
enter into Enhanced Use Leases except for West LA. The prohibition on
Enhanced Use Leases dates back to 2008 when the West LA VA was not
being managed responsibly. United States Senator Dianne Feinstein and
Congressman Henry Waxman drafted language that was signed into law
which prohibits Enhanced Use Leases. Their concern at the time was that
the property would be commercialized through the use of these leases.
But today the climate is different and the Master Plan and Homeless
Plan will not succeed without this important leasing tool.
The public comment period for the Draft Master Plan closed
yesterday. Secretary McDonald will now review the comments and update
the Draft. The current Plan calls for 150 units of Permanent Supportive
Housing followed by 700 to 900 units depending upon need.
My bill, H.R. 3484, restores the authority to the VA to enter into
Enhanced Use Leases solely for the purpose of developing supportive
housing for homeless and at-risk Veterans. I am pleased to report
Senator Feinstein has introduced S. 2013 in the Senate, the companion
bill to H.R. 3484. It is my hope the bills will pass through committee
and go to the floors of our respective chambers very soon. Without
Enhanced Use Leases, our ability to serve vulnerable veterans on this
property will be stalled.
An additional point I would like to share with the Committee
involves a subway that is being built in Los Angeles County known as
the Purple Line. Its alignment will pass directly next to the West LA
VA. Over the last few years, the VA and our local transit authority,
Metro, have been in discussions about locating a stop on the West LA
VA. Veterans, their families, VA staff and the public would
significantly benefit by gaining access to public transit on the VA
grounds. This legislation is not intended in any way to impede a Metro
stop on the West LA VA campus. If necessary, I am open to amending the
bill to clarify that a subway stop is consistent with the Draft Master
Plan and permissible under the bill.
Finally, I am delighted to let the Subcommittee know that this
legislation has gained support on the ground from cities to homeowners'
groups to Veterans Service Organizations. I believe their formal
support is recognition that our homeless Veterans deserve Permanent
Supportive Housing and the West LA VA is a proper and appropriate
campus on which to build it.
I would like to enter letters and resolutions in support of H.R.
3484 into the record from the following institutions:
Brentwood Glen Association
City of Agoura Hills
City of Los Angeles
County of Los Angeles
Holmby Westwood Property Owners Association
Jewish War Veterans Post 118
Los Angeles Neighborhood Council Coalition
Pacific Palisades Democratic Club
Pacific Palisades Task Force on Homelessness
South Brentwood Residents Association
University Synagogue
Westwood Homeowners Association
Westwood Neighborhood Council
I would like to thank the Subcommittee again for allowing me to
advocate for this pending legislation.
Prepared Statement of John L. Mica
H.R. 4056, to authorize VA to convey to the Florida Department of
Veterans Affairs all right, title, and interest of the United States to
the property known as ``The Community Living Center'' at the Lake
Baldwin VA Clinic, Orlando, Florida.
Thank you Mr. Chairman and allow me to commend you for your
leadership and tireless support of our nation's veterans.
Chairman Benishek, Ranking Member Brownley and distinguished
Members of the Subcommittee, I come before you today in support of HR
4056, to authorize VA to convey to the Florida Department of Veterans
Affairs all right, title, and interest of the United States to the
property known as ``The Community Living Center'' at the Lake Baldwin
VA Clinic, Orlando, Florida. Mr. Chairman, this Bill will transfer the
nursing home facility on the campus of the Lake Baldwin VA Clinic to
the State of Florida Department of Veterans' Affairs.
Since its opening in 1998, the Lake Baldwin VA Clinic has provided
vital medical resources for Central Florida's Veterans population. With
the opening of the Lake Nona VA Hospital complex, a new 120 bed
Community Living Center (CLC) has been opened on that campus. In 2012,
in anticipation of the vacating of the Lake Baldwin CLC, I wrote then
VA Secretary Eric Shinsecki requesting that the re-use of that facility
be considered and that we maintain the nursing home (CLC), which
currently is being vacated. I would like to include for the record my
correspondence with the VA regarding this matter. It is important to
note that both Federal VA representatives and Florida VA officials have
met and agreed to the re-use of the facility as a CLC and hope to do so
in an expedited manner. We have reached an agreement with the Florida
Department of Veterans Affairs to have them operate the facility, and
both federal and state agencies support this arrangement.
Besides vastly expediting the restart operations of this facility
with this transfer, a significant cost savings will be realized to the
federal taxpayer. The State of Florida Department of Veterans Affairs
has a proven track record of efficiency and service and will provide
our region's veterans with the care they so richly deserve. To make
this a reality and to make the project viable, included in the Bill is
a waiver of the ``small home'' design requirement outlined by the VA.
This waiver will allow for the current 120-bed unit to remain a double-
occupancy unit as currently constructed.
Again, let me thank Chairman Benishek, Ranking Member Brownley and
the distinguished Subcommittee Members for your support of this
legislation. H.R. 4056 will help fulfill the promises we have all made
to our men and women in uniform as we continue to provide the health
care and services owed to them now and in the future.
July 7, 2014
The Honorable Sloan Gibson
Acting Secretary
U.S. Department of Veterans Affairs
810 Vermont Ave., N.W.
Washington, DC 20420
Dear Secretary Gibson:
I wanted to follow up on our recent conversation relating to the
Lake Baldwin VA Clinic and medical complex at Baldwin Park, in my
District.
Most importantly, I appreciate your commitment to making a decision
regarding the currently vacant 120-bed nursing facility and 60-bed
domiciliary and the future operation of the clinic at that site. Again,
it is my understanding that you have committed to me to making a
decision on the fate of the Lake Baldwin VA medical clinic and the
currently vacant beds' future within 60 days. Furthermore, I have
followed up with VISN 8 Director, Joleen Clark, who is your designated
contact for me regarding this matter. In a conversation with her, she
has confirmed to me that she will be convening appropriate meetings to
resolve this issue.
I was most encouraged by our conversation, as I have had a request
into the VA for two years to resolve this matter. I am particularly
impressed by your statement, ``the last thing I want to do right now is
exit a major facility''; as well as your commitment to provide me with
a plan for the future use of the Lake Baldwin VA clinic within 60 days.
Please know that I will work with you to ensure that our veterans
receive the best possible care.
Once again, I would like to strongly encourage that the Lake
Baldwin VA facility's resources remain available to provide medical
care to our veterans. I know that VA's recent assessment confirms that
Florida's veteran population is growing faster than any other state.
Currently, the new domiciliary and nursing beds at Lake Nona are
already at capacity. Also, the VA itself has publicly stated the need
for double the amount of space to properly care for the region's
veterans than is being provided at the new Lake Nona VA medical
complex.
I appreciate your commitment to resolve this important matter and
am confident that by working together we can keep this facility open to
meet the current and future medical requirements of our veterans.
With my regards and best wishes, I remain
Sincerely,
John L. Mica
Member of Congress
cc: VISN 8 Network Director, Joleen Clark
7th Congressional District Veterans Advisory Task Force
7th Congressional District Community Leaders
April 9, 2014
The Honorable Eric Shinseki
Secretary
U.S. Department of Veterans Affairs
810 Vermont Ave. N.W.
Washington, DC 20420
Dear Secretary Shinseki:
This year, as we approach the completion of construction of the new
veterans' hospital and medical complex at Lake Nona, we would like to
request that you consider keeping the existing clinic and medical
facilities at Baldwin Park in service to our veterans. This complex is
a valuable federal asset that must not sit idle once the new medical
center opens.
With an increasing veteran population that is already the second
largest in the nation, including those service men and women now
returning from overseas conflicts, it is important that we plan now for
their future medical care.
In the past, we have encouraged you to consider keeping this
medical care facility open. We are now asking that you act soon to
ensure that the VA will preserve and utilize this much needed VA
property as Florida's veteran population continues to expand.
The recently opened Lake Nona veterans' 120-bed nursing facility
and 60 bed domiciliary care unit are already at capacity and the demand
for VA services will continue to grow in the Sunshine State.
These men and women who have faithfully served our nation deserve
the very best medical care and the taxpayers valuable assets must not
sit idle.
We thank you for your consideration of this request.
Sincerely,
------------------------/s/------------------------------
Member of Congress
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Member of Congress
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Member of Congress
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Member of Congress
November 20, 2015
The Honorable Robert A. MacDonald
Secretary
U.S. Department of Veterans Affairs
810 Vermont Ave., NW
Washington, D.C. 20420
Secretary MacDonald,
Thank you for your assistance in helping to keep the clinic and
pharmacy at the Lake Baldwin Clinic operational. While this will
provide a significant service to Central Florida veterans, I would like
to request your aid in expediting the reuse of the additional three
floors of the former Naval Hospital building at the Lake Baldwin
complex. It is my understanding that the current plan for the 2nd floor
are tentatively designated to facilitate outpatient surgical services.
I have also been informed that the top two floors may be made available
to provide mental health and Post Traumatic Stress Syndrome (PTSD)
counseling and treatment as well as other special medical services that
may be needed. It is important that the Veterans Administration
finalize plans for reuse of that facility as soon as possible.
I solicit your cooperation in helping determine the final use of
the remaining space in that facility. Moving forward with a firm plan
that can be supported by Congress as soon as possible will expedite
reuse of valuable VA asset that otherwise would remain vacant.
Thank you again for your assistance in making the Lake Nona
Hospital a reality and for your continuing commitment to our nation's
veterans. Again, I request your attention to helping us finalize the
reuse of the Lake Baldwin VA Complex. Please do not hesitate to contact
me or my Veterans Affairs Legislative Assistant, Kevan Stone at (202)
225-4035.
Respectfully,
John L. Mica
Member of Congress
Prepared Statement of Mike Coffman
Thank you Chairman Benishek for holding this legislative hearing
and including my legislation that would authorize the Department of
Veterans Affairs to sell Pershing Hall, a five-star boutique 24 room
hotel, restaurant, and club in the heart of Paris, France.
What is today known as Pershing Hall was purchased by the American
Legion in 1928 to serve as a memorial for Gen. John Pershing and the
soldiers who fought in World War I. The United States Government
acquired the property in the 1930's, and after a long period of
neglect, VA obtained jurisdiction and control over Pershing Hall in
1991. Later in 1998, VA signed a 99-year enhanced use lease to a French
firm allowing it to invest millions of dollars to renovate and
redevelop the property as a hotel.
Today, Pershing Hall is popular in Paris for its open-sky
restaurant and a vertical garden more than 100 feet high. My colleagues
on the dais have been distributed several photos of Pershing Hall as it
exists today.
In short, my bill provides VA the authority to sell Pershing Hall,
and it requires an independent real estate assessment of the property
prior to any sale to ensure taxpayers receive fair market value.
Additionally, VA would be required to ensure that any personal property
belonging to American Legion, such as historical artifacts and art
work, be returned when the facility is sold. The proceeds from the
sale, and the corpus of VA's Pershing Hall Revolving Fund, would be
deposited into VA's Major Construction account for use on construction
and renovation projects in the United States.
My bill is not the first proposal to sell Pershing Hall. In 1993,
Senator Jay Rockefeller, then Chairman of the Senate Veterans' Affairs
Committee, introduced legislation which would have authorized the sale
of the property. At that time, VA supported the provision and testified
that the authority would allow the Secretary more options to consider
in determining the best interests of the United States Government.
One pertinent portion of the 1993 committee report still rings true
today: ``Managing property in Europe is a very unusual activity for VA.
The agency, therefore, is not set up to perform this activity in a
cost-effective manner.The only incentive to lease the property would
arise from the need to safeguard the building as a memorial, but this
objective could be accomplished through restrictive covenants if the
property were sold.''
Aside from the infusion of capital into VA's construction account,
authorizing the sale of Pershing Hall also puts two broader VA reform
initiatives into focus.
First, managing property leases is not a core-competency of the
Department of Veterans Affairs. The Oversight and Investigations
Subcommittee held a hearing earlier this year examining VA's wasteful
land-management practices after the Government Accountability Office
identified significant problems with VA land-use agreements.
Specifically, GAO found problems with unenforced payment or other
agreement terms, expired agreements, and instances where land-use
agreements did not exist. As this Committee deliberates how best to
refocus VA towards its core-competencies, I believe helping VA get out
of the French real-estate market is a safe bet.
Finally, VA has consistently asked Congress to grant it legislative
flexibility to dispose of its excess infrastructure, most recently in
its November Plan to Consolidate Community Care Programs. It seems odd
that VA should consider the sale of domestic VA property while the sale
of a hotel in Paris is off-limits.
Thank you again to Chairman Benishek for allowing testimony and
discussion on Pershing Hall, and I urge all of my colleagues on the
Committee today to join me in this effort.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Prepared Statement of Raymond C. Kelley
WITH RESPECT TO: H.R. 3262, H.R. 3484, H.R. 4056 and DRAFT
LEGISLATION
Chairman Benishek, Ranking Member Brownley and members of the
Subcommittee, on behalf of the men and women of the Veterans of Foreign
Wars of the United States (VFW) and our Auxiliaries, I want to thank
you for the opportunity to present the VFW's views on legislation
pending before this Subcommittee.
H.R. 3262, a bill to provide for the conveyance of land of the
Illiana Health Care System
H.R. 3262 authorizes the Department of Veterans Affairs (VA) to
convey approximately .6 acres of land, included on which is building
number 48, to the Danville Area Community College. In exchange,
Danville Community College will convey approximately 1.06 acres of
land. Included on this property stands a gazebo. These properties are
adjacent to each other and authorizing the conveyance will allow the
new property line to run in a straight line.
This conveyance will benefit both the VA and the Community College.
VA has plans to place a fence around its property and it will save the
VA money by making the property line straight. Building number 48 is
currently unutilized, and by conveying this property, VA will save
funds that would otherwise be obligated for maintenance of the
building. The Community College wants building number 48 so it can be
refurbished and used as an art studio.
This conveyance makes sense to the VFW. It will relieve the VA of a
building they no longer use, saving them money, and the college gains a
building they can use for its students. The VFW supports H.R. 3262.
H.R. 3484, the ``Los Angeles Homeless Veterans Leasing Act of
2015''
The West LA campus was deeded through a will to the federal
government with the explicit intent for the property to be used to
assist veterans. Over time, VA lost sight of that intent and leased out
parts of this property - which is over 300 acres - to private entities
and has made little to no repairs or improvements for the veterans it
was intended for. This bill will realign the property with the original
intent of the family who deeded the property in 1888.
The VFW agrees in principal with this legislation because it
returns the property to its rightful owners, the veterans of West LA.
The VFW has concerns, though, with Section 2(b)3. This section of the
bill appears to provide a specific carve-out for one or more of the
current leases VA has entered into that do not conform to existing laws
that govern Enhanced Use-Leases, nor follow the future leasing process
laid out in this legislation. There should be no special treatment or
consideration for any current leases that cannot fulfill the
requirements of Section 2(b)2 of this legislation.
The VFW supports the intent of H.R. 3484, but would ask that
Section 2(b)3 be removed so all leases meet the requirement of Section
2(b)2 of this bill.
H.R. 4056, a bill to provide for the conveyance of land at the Lake
Baldwin Veterans Affairs Outpatient Clinic, Orlando, Florida
H.R. 4056 will authorize the conveyance of the Community Living
Center (CLC) at the Lake Baldwin Veterans Affairs Outpatient Clinic to
the Florida Department of Veterans Affairs. The 60 bed CLC described in
this legislation is currently being used as transitional storage while
VA moves to its new facility. Currently, the VA does not have plans to
reopen the CLC, but by conveying this building to the Florida
Department of Veterans Affairs the facility will be able to reopen
quickly to serve the veterans in the Lake Baldwin area by the Florida
Department of VA.
The VFW supports this legislation.
Draft Legislation to amend the Veterans' Benefit Program
Improvement Act of 1991 to authorize the Secretary of Veterans Affairs
to sell Pershing Hall
The Department of Veterans Affairs has managed Pershing Hall, which
is now owned by VA and is leased as a hotel in Paris, France. The
current lease is set to expire in 2097. The VFW believes the VA should
not be in the hotel business, but disposal of the hotel should be a
business decision, not just an effort to no longer own the building.
The VFW is glad to see that the draft legislation contains language
stating the property be sold at the fair market value determined by an
independent assessment. The VFW would, however, recommend this
Committee consider amending this draft legislation to include language
that would call for a prospectus that will outline the costs, if any,
of breaching the lease agreement and the loss of annual revenue that
the current lease provides. With this financial data, VA and this
Committee can more clearly see the financial positives and negatives of
selling the property.
VA's legislative proposal regarding fiscal year 2016 construction
projects
The VFW supports VA's legislative proposal that will allow VA to
plan, design, construct, or lease joint VA/DoD shared medical
facilities. There are already current sharing agreements between VA and
DoD that have allowed medical services to be provided closer to where
veterans and military personnel are located. There are also 11 joint
ventures that have been viewed very positively by both communities.
This authority makes sense and is aligned with the Independent Budget's
framework that will allow VA to better partner with other public
agencies to better provide veterans with timely access to health care.
The VFW supports this legislative proposal.
Mr. Chairman, this concludes my testimony. I will be happy to
answer any questions you or the Subcommittee members may have.
Information Required by Rule XI2(g)(4) of the House of Representatives
Pursuant to Rule XI2(g)(4) of the House of Representatives, the VFW
has not received any federal grants in Fiscal Year 2015, nor has it
received any federal grants in the two previous Fiscal Years.
The VFW has not received payments or contracts from any foreign
governments in the current year or preceding two calendar years.
Prepared Statement of Howard Trace
Chairman Benishek, Ranking Member Brownley, and distinguished
Members of the Subcommittee, on behalf of our National Commander, Dale
Barnett, and the over 2 million members of The American Legion, we
thank you for this opportunity to testify regarding The American
Legion's positions on the following pending legislation.
H.R. 3484: Los Angeles Homeless Veterans Leasing Act of 2015
To authorize the Secretary of Veterans Affairs to enter into
certain leases at the Department of Veterans Affairs West Los Angeles
Campus in Los Angeles, California, and for other purposes.
This bill would allow veterans who are currently living on the
streets to relocate to a more secure space on the campus of the West
Los Angeles Healthcare System for the purpose of receiving housing,
health care, education, family support, vocational training, and other
needed services.
For nearly 80 years, the VA West Los Angeles Campus has been
providing disabled veterans a place to live and receive needed
services. For over 35 years, The American Legion has been actively
protesting the Department of Veterans Affairs misuse of the property.
Since that time the VA has been leasing the land to private businesses
in the area directly contrary to the explicitly stated original intent
when the land was donated by Senator John P. Jones and a prominent Los
Angeles family intending to serve the homeless veteran community in Los
Angeles. \1\
---------------------------------------------------------------------------
\1\ HVAC O&I Hearing: An Examination of Waste and Abuse Associated
with VA's Management of Land-Use Agreements: Feb 2015
---------------------------------------------------------------------------
While The American Legion supports H.R. 3484, we want to ensure
that the revenues generated by these leases are benefitting the veteran
community, as well as enhancing the West Los Angeles VA facility
itself. We also want those revenues well documented and tracked and
continue to urge VA to report what had happened to the original funds
as The American Legion asked earlier this year. VA has continued to
fail to provide answers regarding accounting of funds collected from
commercial tenants of the West Los Angeles VA facility when the
organization violated land-use agreements. To date, the money collected
in exchange for use of campus assets has not been accounted for.
The American Legion opposes any Enhanced-Used-Lease that does not
specifically provide any obvious and permanent benefits, resources or
services to the veterans' community. \2\ This legislation can provide
tangible benefits to the veterans in the West Los Angeles area, but
there must be a complete and transparent accounting of the activities
on the property, past and present, to restore trust in the veterans'
community.
---------------------------------------------------------------------------
\2\ Resolution No. 154: Department of Veterans Affairs Enhanced-
Used-Leasing: Aug 2014
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The American Legion supports H.R. 3484
H. R. 4129: Jumpstart VA Construction Act
To direct the Secretary of Veterans Affairs to carry out a program
under which the Secretary enters into partnership agreements with non-
Federal entities for the construction of major construction projects
authorized by law, and for other purposes.
This legislation aims to help manage the task of addressing VA's
building infrastructure problems. Despite voiced concerns from The
American Legion over many years, construction budgets have often been
unable to keep up with the demands of modernizing VA's buildings. As
the legislation notes, VA buildings have an average age of 60 years,
and some estimates place the costs to modernizing all of these
facilities at over $55-65 billion. Furthermore, VA has struggled with
the management of major construction projects, including major projects
over budget and overdue in recent years in Florida, Nevada, Colorado
and Louisiana.
This legislation would enable VA to enter into partnerships for
major construction projects with non-Federal entities to share the
management and financial burdens and, it is hoped, improve the
construction process by leveraging the partnerships to ensure better
management.
The American Legion believes strongly in improving VA's
construction programs and specifically encourages VA ``to consider all
available options, both within the agency and externally.to ensure
major construction programs are completed on time and within budget.''
\3\
---------------------------------------------------------------------------
\3\ Resolution No. 24: Department of Veterans Affairs Construction
Programs
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Updating VA's major medical centers will require better management
and better results than what has been seen in recent years. This
legislation hopefully represents a step in that direction.
The American Legion supports H.R. 4129
Draft Bill:
To amend the Veterans' Benefits Programs Improvement Act of 1991 to
authorize the sale of Pershing Hall, and for other purposes
Nearly 100 years ago, members of the Allied Expeditionary Force in
World War I came together to, among reason reasons ``preserve the
memories and incidents of our associations [in] the Great War[s];'' and
in 2015 approaching the 2019 anniversary of our founding, The American
Legion is still dedicated to that mission. Part and parcel of the
service the members of The American Legion devote to this country is to
ensure the service and sacrifice of America's military is not
forgotten.
The American Legion fought for the dedication of a memorial
building in Paris, France to recognize the service and sacrifices of
the members of the Allied Expeditionary Forces and General of the
Armies John J. Pershing in 1927. The memorial building was a townhouse
in the heart of Paris that would become known as Pershing Hall. This
memorial was authorized by resolution passed in the 1927 national
convention. Eight years later, in 1935, Congress authorized funds to
perpetuate the memorial and transfer the building to the United States
Government. \4\ In 1991, the building was transferred to the Department
of Veterans Affairs (VA). \5\
---------------------------------------------------------------------------
\4\ 38 USC Sec. 2400 (a) - (e)
\5\ Pub. L. 102-86, title IV, Sec. 403, Aug. 14, 1991, 105 Stat.
422 , as amended by Pub. L. 103-79, Sec. 4, Aug. 13, 1993, 107 Stat.
772 ; Pub. L. 103-446, title XII, Sec. 1202(c), Nov. 2, 1994, 108
Stat. 4689 ; Pub. L. 107-217, Sec. 3(o), Aug. 21, 2002, 116 Stat. 1303
; Pub. L. 107-330, title III, Sec. 308(i), Dec. 6, 2002, 116 Stat.
2829
---------------------------------------------------------------------------
Through all these actions it was the hope and wish of The American
Legion that Pershing Hall retain its original purpose, as a memorial
and focal point to honor the memories and sacrifices of the men who had
fought in World War I.
Currently, the Pershing Hall building, in the prime Paris
neighborhood of the Champs Elysees, contains a luxury hotel and spa,
where guests can stay for upwards of $450-900 a night. The focus and
purpose as a place of remembrance seems gone by the wayside. When The
American Legion asked the government to pay off and assume control of
the building it was never imagined that the building would be used for
any purpose other than as a memorial and space in Paris for those who
had served in the first world war and subsequent wars.
This legislation, proposed by Representative Coffman, would
authorize VA to divest themselves of the property and transfer the
monies resulting from the sale into their construction funds, badly
needed to help VA deal with their aging infrastructure. The legislation
would also provide for the transfer of the artifacts and items
associated with the building to be transferred to the original owners
for preservation.
The preservation of these artifacts and the history they represent
is a major concern of The American Legion. The building and material
deserve to be kept together for their original purpose, to honor and
remember General Pershing and those who fought in World War I. The
American Legion wants to work with VA to ``establish permanent American
Legion custodianship of the Pershing Hall art, artifacts, furnishings,
memorabilia and other items so that they can be interpreted for public
display, and protected from damage or disappearance.'' \6\
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\6\ Resolution No. 24: Pershing Hall Artifacts and Memorabilia -
OCT 2013
---------------------------------------------------------------------------
This would require several steps. To begin with, all of the
materials would need to be reassembled. The VA provided The American
Legion with a 1991 inventory \7\ however it is unclear whether this
even represents the complete collection. At the very least, this
includes artifacts and items scattered over several continents
including material on display or being stored in:
---------------------------------------------------------------------------
\7\ Appendix A
Pershing Hall, Paris, France
Compeigne, France
VA Central Office, Washington DC
James H. Quillen VA Medical Center, Mountain Home, TN
VA New York Regional Office
These represent the collections we are sure of at this time, but
there may be more. All of these historical artifacts would need to be
collected, collated, appraised and prepared and preserved. There is a
Pershing Hall Revolving Fund of investments dedicated to providing for
the needs of Pershing Hall with VA authorized to utilize the funds
under certain prescribed circumstances. \8\ The American Legion
recognizes that with the sale of Pershing Hall this fund and the monies
contained therein will transfer to the construction accounts as
dictated in the legislation, however it is wholly appropriate that some
portion of such funds as needed to provide for the preservation and
proper treatment of the artifacts and materials should be allotted to
the transfer process. These monies were initially intended to provide
for this preservation of history, and while they have been doled out
for many other purposes since that time, that does not remove the
original intent. If there are costs associated with transferring,
shipping, storing, appraising and conserving the artifacts through the
transfer process, these costs should be borne by the Revolving Fund.
---------------------------------------------------------------------------
\8\ 36 USC Ch. 22 Sec. 493 (d)
---------------------------------------------------------------------------
The extensive list of artifacts and materials associated with
Pershing Hall represent critical insight into American struggle and
sacrifice in the first world war. It is a sacred duty to preserve and
protect this history.
The American Legion has been very grateful to Representative
Coffman for his continued communication with The American Legion and
recognition of our role in the history of this landmark. Through every
step of the process he and his staff have striven to ensure history is
protected and preserved in the transfer of this property. It is
disconcerting and troubling that this site could have drifted so far
from its initial intended disposition as a place of remembrance and
history, but if it is to have productive purpose in the future, at
least there is some merit in finally ensuring that the history it
represents is put in the hands of those who will be careful custodians
of the past.
As stated previously, our own preamble to the Constitution of The
American Legion avers to ``preserve the memories and incidents of our
associations in the Great War[s]'', but also commits our organization
to the importance of ``safeguard[ing] and transmit[ing] to posterity
the principles of justice, freedom and democracy.'' \9\
---------------------------------------------------------------------------
\9\ Preamble to the Constitution - The American Legion
---------------------------------------------------------------------------
This legislation has the potential to help VA meet the
infrastructure challenges of the 21st century, however it must also
serve to help preserve the memory of what was fought for and sacrificed
for at the dawn of the 20th century.
The American Legion supports this draft legislation.
Conclusion
As always, The American Legion thanks this subcommittee for the
opportunity to explain the position of the over 2 million veteran
members of this organization. For additional information regarding this
testimony, please contact Mr. Warren J. Goldstein at The American
Legion's Legislative Division at (202) 861-2700 or
wgoldstein@legion.org.
APPENDIX A: 1991 INVENTORY
Prepared Statement of Stella S. Fiotes
Good afternoon Chairman Benishek, Ranking Member Brownley, and
Members of the Committee. Thank you for inviting us here today to
present our views on several bills that would affect VA benefits
programs and services. Joining me today is Vince Kane, Special
Assistant to the Secretary. On December 3, H.R. 4129, the ``Jumpstart
VA Construction Act'' was added to the hearing agenda. VA will provide
views on that bill to the Committee at a later time.
H.R. 3484 - The Los Angeles Homeless Veterans Leasing Act of 2015.
H.R. 3484 would authorize the Secretary of Veterans Affairs to
enter into Enhanced-Use Leases and other agreements for housing and
services at VA's West Los Angeles Campus in Los Angeles, California.
The leases would principally benefit Veterans and their families,
including severely disabled, aging, women, and homeless Veterans.
VA strongly supports this legislation. It would enable VA to enter
into agreements with housing providers, local governments, community
partners, and non-profits to provide additional housing and services
for homeless and disadvantaged Veterans. Such leases would be squarely
Veteran focused, as the benefits resulting from them would be designed
to principally benefit Veterans and their families. The legislation
would also enable VA to work with state entities such as the University
of California, Los Angeles, to obtain improved services for Veterans,
over and above the range of benefits generated from the current VA-UCLA
medical affiliation arrangement. This effort is in line with VA's goal
to foster and improve its medical affiliations nationwide, to help
ensure that sufficient quality and quantity of doctors, nurses, and
research are available, to help ensure that Veterans will receive
improved care and services well into the 21st Century and beyond.
The legislation is important to VA's goal of revitalizing the
campus into a rich and vibrant community, which Veterans will be proud
to call home. It would dovetail with existing law contained in Section
224, Division I, of Public Law 110-161, the Consolidated Appropriations
Act of 2008, to prohibit VA from selling or disposing of any land
interests in the West Los Angeles Campus to third parties.
Additionally, the legislation contains several significant protections,
to ensure fulfillment of the bill's objectives. The protections include
the following:
All leases must be consistent with the new Master Plan
under development, with community input, that will detail how the
campus will be used to benefit all Veterans;
Office of Inspector General (OIG) audit reports on lease
and land-use management of the West Los Angeles Campus will be required
to be issued two years following enactment of this legislation, five
years following enactment, and then as necessary;
VA will be prohibited from entering into new leases
during any periods where it is found by the OIG that VA is out of
compliance with Federal policy or law pertaining to leases and land-use
on the campus, until the Department certifies it has implemented all
recommendations of the OIG; and
VA will be required to notify the Senate and House
Veterans' Affairs Committees and the congressional delegation for the
area encompassing the campus 45 days before entering into or renewing
any lease, and submit an annual report evaluating all leases and land-
sharing agreements on the campus.
These restrictions will help to ensure the campus is Veteran
focused going forward, in a manner consistent with the underlying 1888
deed of the property to the United States.
Along with supporting this legislation, VA is working intensely to
positively revitalize the West Los Angeles Campus, to make it more
Veteran focused. Such efforts include pursuing a new master plan for
the campus; providing additional funding to VA's homeless-related
programs; and working with several entities in the Greater Los Angeles
area, to help end Veteran homelessness in Greater Los Angeles. Such
entities include the California congressional delegation; the former
plaintiffs in the West Los Angeles litigation (Valentini v. McDonald)
that was settled in January 2015; Veterans Service Organizations;
Veterans; State and local authorities; non-profit entities; VA
contractors; the local community; and charitable organizations. Through
such efforts and hopeful enactment of this proposed legislation, VA is
confident that all homeless Veterans of Greater Los Angeles will be
able to obtain housing and wrap-around supportive services, so that
they can have restored dignity and improve their lives and well-being.
The ongoing Master Planning process takes into account VA's clear
priority to prospectively operate the campus as a vibrant, welcoming,
and sustainable community where all Veterans - including homeless,
severely disabled, women, and elderly Veterans will feel comfortable
accessing care, living, and interacting with one another, their
families, VA personnel, and visitors.
Since March of this year, almost 1,400 Los Angeles area Veterans
have been placed into permanent housing through the implementation of
housing first principles. Housing first is the proven method where
homeless Veterans are placed into housing with the needed supportive
services to keep them in housing and more effectively help them
reintegrate into their community. On average, almost 275 Veterans per
month are being placed into housing, largely through VA outreach,
coordination efforts, and funding commitments. VA has also increased
resources to expand capacity to care for homeless and at-risk of
homelessness Veterans. Specifically, in 2015 an additional $30 million
was provided for Supportive Services for Veteran Families homeless
prevention, and rapid rehousing programs. Approximately 800 HUD-VASH
vouchers were awarded for Greater Los Angeles. This increased the total
vouchers in Greater Los Angeles to nearly 6,000. An additional 325 new
beds have also been added at the West Los Angeles Campus for bridge or
emergency housing for Veterans in need.
Despite these enhancements, there is more to do to care for our
Veterans. The legislation will address gaps in services and facilitate
the revitalization of the 388 acre campus to better serve Veterans. It
will also ensure we care for disadvantaged Veteran populations to
ensure they have needed healthcare and housing.
VA estimates that HR 3484 will be cost-neutral because it provides
for outlease of certain properties on the VA West Los Angeles Campus,
without additional cost to VA. The bill does not create an obligation
by VA to fund the housing or services contemplated by Section 2. There
is also no obligation for VA to use future appropriations to fund
capital or other costs related to the outleases authorized by this
section.
H.R. 3262 - To Provide for the Conveyance of Land of the Illiana
Health Care System of the Department of Veteran Affairs in Danville,
Illinois.
VA supports H.R. 3262, which would require VA to convey 0.6 acres
of real property and improvements, known as Building Number 48, at the
VA Illiana Health Care System, to the Danville Area Community College
of Danville, Illinois.
Although Building Number 48 has been vacant for a number of years,
VA incurs maintenance costs, and is expending sums to heat the
building, provide fire monitoring/protection and structural
maintenance, and assure a safe surrounding area for a building.
Further, VA does not have any future plans for this building. Failure
to convey this property will require VA to expend upwards of $98,000 in
continued maintenance costs over a ten (10) year period. In return for
the conveyance of Building Number 48, Danville Area Community College
will convey 1.06 acres of land to the United States. This acquisition
of property will allow VA to straighten the property line of the
campus, subsequently shortening the amount of fencing that would be
required to create a secure campus.
VA's FY 2016 Construction Legislative Proposal.
This bill will authorize eight major construction projects and
eighteen major lease projects for the Veterans Health Administration.
In addition, authorization of VA's construction bill would expand
opportunities for VA to work with other Federal agencies and expand the
capabilities of the Department's Enhanced Use Leasing (EUL) program to
allow VA to further repurpose vacant and underutilized properties
reducing the financial burden to maintain these properties. These
programs are critical to increasing Veterans' access to safe, secure,
and state-of-the art care nationwide, when and where it is needed.
The Department's main priority is to provide high-quality care to
Veterans in facilities that are procured legally, constructed soundly,
and comply with Federal requirements for accessibility, safety, and
security. If VA's budget request is authorized, points of service for
VA health care would be created or expanded, through both construction
and leasing activities. The eight major construction projects would
allow VA to address seismic building deficiencies in Long Beach, San
Francisco, and West Los Angeles, California, and American Lake,
Washington. The projects would also allow VA to construct and/or
renovate clinical and community living center facilities to expand and
upgrade VA's owned-property portfolio. The eighteen major leases
proposed would serve Veterans in twelve states and would provide over
1.5 million square feet of leased space, establishing new presences or
replacing and upgrading existing leases.
In addition to its construction and leasing activities, VA's
authorization bill includes a request to expand the definition of
``Medical Facilities'' in VA's authorizing statutes to allow VA to more
easily plan, design, construct, or lease medical facilities jointly
with other Federal agencies. VA and the Department of Defense (DoD)
have a unique relationship with regard to Veterans health care. VA is
currently constrained in its ability to partner with DoD or any other
agency and cannot easily act on partnership opportunities without
expanding the definition of ``Medical Facilities.''
The EUL Program is another means to provide services as well as
properly utilize VA's owned property portfolio. If authorized, the
proposed bill would expand VA's current EUL authority, which is now
restricted to housing purposes, to allow a full range of uses. This
would give VA more opportunities to engage the private sector and local
governments to truly enhance the Department's use of currently
underutilized property.
VA has also put in place sound construction management processes to
ensure success in the major construction program for projects currently
underway and future projects that VA will continue to manage, including
medical projects under $100 million in cost. These process improvements
allow VA to ensure proper execution of our major construction projects
and continue to provide access to care for Veterans and their families
around the country.
Earlier this year, VA engaged the United States Army Corp of
Engineers (USACE) to evaluate the Department's major construction
program. The goal of this evaluation was to identify program
deficiencies and opportunities for improvement in the management and
execution of our major construction program. USACE noted numerous
strengths in VA's program and highlighted the quality and commitment of
the project staff.
VA agrees with this assessment and has issued policy that
identifies roles and responsibilities within VA for the development of
needs, requirements, and control of design and construction to assure
alignment of the project delivery team.
We also anticipate a productive joint effort with a non-VA federal
partner on our future major medical projects over $100 million, as well
as with USACE on VA's Denver major medical construction effort. Section
502 of the Department of Veterans Affairs Expiring Authorities Act of
2015 (Public Law 114-58), enacted on September 30, 2015, amended
section 8103 of Title 38 United States Code to add the requirement that
the Department of Veterans Affairs enter into an agreement with an
appropriate non-Department Federal entity to provide full project
management services for each medical facility project involving a total
expenditure of more than $100,000,000 (``super construction project'').
VA is committed to using these partnerships to best deliver facilities
for our Veteran population.
We will be glad to work with the Committee on all of the items in
the bill and appreciate the committee's interest in this bill.
H.R. 4056 - To Authorize the Secretary of Veterans Affairs to
Convey to the Florida Department of Veteran Affairs All Right, Title,
and Interest of the United States to the Property Known as ``The
Community Living Center'' at the Lake Baldwin Veterans Affairs
Outpatient Clinic, Orlando, Florida.
H.R. 4056 would authorize the Secretary of Veterans Affairs to
convey all right, title, and interest in real property known as ``The
Community Living Center'' located at the Lake Baldwin Veterans Affairs
Outpatient Clinic in Orlando, Florida to the State of Florida, Florida
Department of Veteran Affairs.
VHA supports H.R. 4056. This action is in alignment with the Lake
Baldwin Campus Re-Purpose plan and will permit a productive partnership
between VA and the Florida Department of Veterans Affairs, which will
accept the property in an ``as is'' condition.
Currently, VA is maintaining the Community Living Center property;
however, VA has no plans for future use of this building after the full
activation of the Lake Nona Campus. While maintenance, utility
expenses, and due diligence costs are minimal in regard to maintaining
the property, current Facilities Condition Assessment (FCA) correction
costs, regarding future use of the property, exceed $1.6 million for
infrastructure system upgrades, architectural corrections, and IT room
upgrades. Further, this conveyance to the State of Florida will provide
a needed long-term health care option to Central Florida Veterans as
well as fill a State-identified gap in long term care needs. Although
the draft bill raises technical and implementation concerns, VA would
be pleased to work with the Committee to address these concerns.
Draft Bill - To Amend the Veterans' Benefits Programs Improvement
Act of 1991 to authorize the Secretary of Veteran Affairs to sell
Pershing Hall, and for other purposes.
In 1991, Congress enacted Section 403 of Public Law 102-86 to
transfer the jurisdiction, custody, and control of Pershing Hall to VA.
Due to the costs of maintaining the historic landmark and the
deteriorating condition of the building, Congress authorized VA to
outlease the building for up to 35 years. In 1993, Congress increased
the allowable lease term to 99 years (Public Law 103-79). In 1998, VA
executed a 99-year lease agreement with a private developer. The
developer made significant improvements to the property, converting the
building into a hotel and memorial.
This Draft Bill would amend the Veterans' Benefits Programs
Improvement Act of 1991 to authorize the Secretary of Veterans Affairs
to sell Pershing Hall. VA has no objection to selling or disposing of
Pershing Hall, with accommodations for our Veterans Service
Organizations. VA would also like to be able to transfer the sale
proceeds for the fair market value of Pershing Hall into VA's capital
accounts without further appropriation. While VA has technical and
implementation concerns about the bill as drafted, VA would be pleased
to work with the Committee to address these concerns.
VA cannot estimate the cost or savings of this Draft Bill because
of uncertainty regarding fair market value.
Mr. Chairman, this concludes my statement. Thank you for the
opportunity to appear before you today. I would be pleased to respond
to questions you or the other Members of the Subcommittee may have
regarding the bills on the agenda today.
[all]