Joint Committee Committee on Capital Development (12/19/2008)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	12/19/2008	ATTENDANCE

Time:	11:01 AM to 11:44 AM	McFadyen	X
		Penry	*
Place:	SCR 356	Schwartz	X
		Sonnenberg	*
This Meeting was called to order by		Bacon	X
	Representative Riesberg	Riesberg	X

This Report was prepared by
	Kori Donaldson
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Division of Wildlife Six-Month Waiver Request University of Colorado Supplemental Requests and SB 92-202 Request Colorado State University FY 2009-10 Cash-Funded Request Other Business		Pass Pass Pass Witness Testimony and/or Committee Discussion Only

11:01 AM -- Division of Wildlife -- Six-Month Waiver Request

The committee came to order. A quorum was present. Mr. Pat Miks, Acting Chief Financial Officer, Division of Wildlife, presented a request to waive the six-month encumbrance deadline for the Property Acquisition project. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment A).


BILL:	Division of Wildlife
TIME:	11:03:16 AM
MOVED:	Bacon
MOTION:	Approve the waiver request for a portion of the FY 2008-09 appropriation to the Property Acquisition project ($4,098,840 CF). The motion passed on a vote of 4-0-2.
SECONDED:
		VOTE
	McFadyen	Yes
	Penry	Excused
	Schwartz	Yes
	Sonnenberg	Excused
	Bacon	Yes
	Riesberg	Yes
Final YES: 4 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

11:04 AM -- University of Colorado at Boulder Supplemental Requests

Mr. Robert Moore, Vice-President of Budget and Finance, University of Colorado System, presented two supplemental requests for Senate Bill 92-202 projects including: 1) Community Dining and Student Center; and 2) Andrews Hall, Smith Hall, and Buckingham Hall Renovations. Committee members received summaries of the requests, prepared by Legislative Council Staff (Attachments B and C, respectively).


BILL:	University of Colorado at Boulder Supplemental Request
TIME:	11:06:16 AM
MOVED:	Bacon
MOTION:	Approve the supplemental request for the Community Dining and Student Center SB 92-202 project ($18,837,404 CF). The motion passed unanimously.
SECONDED:
		VOTE
	McFadyen	Yes
	Penry	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Bacon	Yes
	Riesberg	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

Mr. Moore responded to a question about projections for increased enrollment and said the demand for on-campus housing continues to increase.


BILL:	University of Colorado at Boulder Supplemental Request
TIME:	11:09:13 AM
MOVED:	Bacon
MOTION:	Approve the supplemental request for the Andrews Hall, Smith Hall, and Buckingham Hall SB 92-202 project ($16,980,600 CF). The motion passed unanimously.
SECONDED:
		VOTE
	McFadyen	Yes
	Penry	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Bacon	Yes
	Riesberg	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

Mr. Moore responded to a question about prior renovations in Buckingham Hall. He said this project is the building's first major renovation.

11:10 AM -- University of Colorado at Boulder Senate Bill 92-202 Request

Mr. Moore presented a Senate Bill 92-202 request for the Willard and Hallett Residence Halls Recommissioning project. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment D).


BILL:	University of Colorado at Boulder Senate Bill 92-202 Request
TIME:	11:11:11 AM
MOVED:	Bacon
MOTION:	Approve the request for cash funds spending authority for the Willard and Hallett Residence Hall Recommissioning Senate Bill 92-202 project ($10,925,000 CF). The motion passed unanimously.
SECONDED:
		VOTE
	McFadyen	Yes
	Penry	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Bacon	Yes
	Riesberg	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:11 AM

The committee gave a tribute to Mr. Moore upon the occasion of his retirement from the University of Colorado system.

11:20 AM -- Colorado State University FY 2009-10 Cash-Funded Request

Mr. Brian Chase, Director of Facilities Management, and Ms. Michelle Carroll, Project Approval and Submittal Specialist, Facilities Management, both of Colorado State University, presented a FY 2009-10 cash-funded request for the Institute for Learning and Teaching project. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment E). Mr. Chase responded to a question about a possible increase in the student fee for capital improvements from $10 per credit hour to $20 per credit hour. He also answered a question about parking on campus.


BILL:	Colorado State University FY 2009-10 Cash-Funded Request
TIME:	11:24:38 AM
MOVED:	Bacon
MOTION:	Approve the request for cash funds spending authority for the Institute for Learning and Teaching project ($13,000,000 CF), contingent upon approval of a student fee increase by the Colorado State University Board of Governors and student body. The motion passed on a vote of 5-0-1.
SECONDED:
		VOTE
	McFadyen	Yes
	Penry	Excused
	Schwartz	Yes
	Sonnenberg	Yes
	Bacon	Yes
	Riesberg	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

11:25 AM -- Discussion About Draft Committee Bills for 2009 Session

The chairman decided to postpone this discussion until the committee's next scheduled meeting on January 13.

11:27 AM -- Overview of November 6, 2008, Certificates of Participation Issuance

Ms. Kori Donaldson, Legislative Council Staff, provided an overview of a memorandum prepared by Legislative Council Staff about the federal mineral lease (FML) certificates of participation (COPs) issued on November 6, 2008, which was distributed to the committee (see Attachment F). Ms. Donaldson highlighted the terms and conditions of the COP issuance, stating that the total cost was $325.5 million, including $202.3 million in principal and $123.2 million interest. She referred to Attachment A of the memorandum, which lists the projects and their respective costs, including FML funds and institutional cash matches. Ms. Donaldson briefly summarized steps that were taken after the COPs were authorized by legislation. She referred to Attachment B of the memorandum, which lists the buildings that were selected to serve as collateral for the COP issuance. Ms. Donaldson noted that Wells Fargo Bank is serving as both the lessor and the trustee for the COPs, and spoke about the accounting process that will be used by the State Treasure's office. She referred the committee to Table 2 on page 4 of the memorandum, which shows the COP payment schedule for the next 10 years. She also noted the Higher Education Lease-Purchase Cash Fund and how it will be used. She concluded by stating that projects must complete expenditures by November 6, 2011, pursuant to federal requirements associated with this financing mechanism and structure.

11:34 AM

The chairman invited Ms. Lisa Esgar, Deputy Director of the Office of State Planning and Budgeting, to come to the table to make additional comments about the FML COPs. Ms. Esgar stated that OSPB updated its FML forecast in December and communicated the latest numbers to the CDC in a December 10 letter. She stated that OSPB's December 20 forecast reflects the same data as the December 10 letter. She indicated that the Higher Education Revenues Fund is expected to have a balance of $600,000 by June 30, 2009, after making the first two COP payments in FY 2008-09 and FY 2009-10. Ms. Esgar emphasized caution with spending FML revenue during the next two years and recommended not proceeding with a second COP for the time being because FML revenue is a volatile revenue source. Ms. Esgar state that the Higher Education Maintenance and Reserve Fund balance is expected to be lower than the projected $1.9 million previously estimated.

11:39 AM

Representative Riesberg thanked Ms. Donaldson for the memorandum and her presentation. Ms. Esgar responded to questions from the committee regarding whether or not there would be sufficient FML revenue in the future to make the scheduled COP payments. She also responded to questions about the statutorily authorized uses of the principal of the Higher Education Maintenance and Reserve Fund.

11:41 AM -- Discussion About Future Meeting Dates

Ms. Donaldson told the committee that some FY 2009-10 cash-funded requests will be ready to be heard at the next meeting on January 13, 2009.

11:44 AM

The committee adjourned.