Joint Committee Committee on Capital Development (01/29/2009)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	01/29/2009	ATTENDANCE

Time:	08:02 AM to 08:37 AM	McFadyen	X
		Penry	X
Place:	SCR 356	Schwartz	*
		Sonnenberg	X
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:
University of Colorado Denver FY 2009-10 Cash Request Discussion about Active Capital Projects		Pass Witness Testimony and/or Committee Discussion Only

08:02 AM -- University of Colorado Denver FY 2009-10 Cash Request

Ms. Kelly Fox, Interim Vice-President of Budget and Finance, and Ms. Teresa Osborne, Director of Capital Assets, both of the University of Colorado System, presented a cash request for the third-floor buildout of the New Pharmacy Research Building on the Anschutz Medical Campus. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment A). Ms. Fox addressed a question about funding for the project and explained that bonding is available as well. She also addressed questions about the sale of possible naming rights. Ms. Osborne addressed a question about the discovery of contaminated soils at the site of the proposed building.


BILL:	University of Colorado Denver FY 2009-10 Cash Request
TIME:	08:06:20 AM
MOVED:	Bacon
MOTION:	Approve the request for the third-floor buildout of the New Pharmacy Research Building ($11,117,804 CF). The motion passed on a vote of 6-0.
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

08:07 AM -- Discussion About Active Capital Construction and Controlled Maintenance Projects

Committee members received a spreadsheet showing the remaining balance of capital construction project appropriations, prepared by the Office of the State Controller and Legislative Council Staff (Attachment B). Committee members also received the Governor's latest budget balancing proposal (Attachment C). Representative Riesberg said that state agencies and higher education institutions are not finding many additional places to cut capital expenditures. Discussion ensued. Mr. Larry Friedberg, State Architect, Department of Personnel and Administration, addressed a question about possible cost-saving measures that state agencies and institutions of higher education can undertake. Senator Penry said he thought that more cost savings are possible because higher education projects included in the November 6 certificates of participation (COP) issuance budgeted for aggressive construction inflation costs. Discussion ensued. Mr. Friedberg addressed specific questions about what projects are included in the Office of the State Architect's Level 1 controlled maintenance recommendations and explained the difference between the total funds recommended for Level I projects on his list versus the Governor's Office of State Planning and Budgeting (OSPB) list of recommendations.

Ms. Lisa Esgar, Deputy Director, OSPB, addressed a question about the source of funds for the four FY 2009-10 recommended projects listed in Attachment C and explained why OSPB recommends that the Higher Education Maintenance and Reserve Fund be used to address the current economic recession. Discussion ensued.

08:19 AM

Discussion continued about the use of the Higher Education Maintenance and Reserve Fund and higher education projects included in the November 2008 COP issuance.

08:26 AM

Committee members received a handout detailing potential inflation savings identified by higher education institutions for projects included in the November 2008 COP issuance, prepared by the Colorado Commission on Higher Education and Legislative Council Staff (Attachment D). Ms. Esgar addressed questions about the Colorado State Penitentiary II High Custody Expansion COP project. She explained that construction on the new prison is not complete and that the Governor has delayed its opening until 2010.

08:31 AM

Ms. Jennifer Moe, Legislative Council Staff, addressed questions about specific projects listed on Attachment B. Discussion ensued about Attachment B.

08:37 AM

The meeting adjourned.