Joint Committee Committee on Capital Development (04/07/2009)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	04/07/2009	ATTENDANCE

Time:	07:34 AM to 08:38 AM	Kopp	E
		McFadyen	X
Place:	SCR 352	Schwartz	X
		Sonnenberg	X
This Meeting was called to order by		Bacon	E
	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:
Consideration of Draft Committee Legislation Dept. of Public Health and Environment FY 2009-10 Cash Request University of Colorado at Boulder SB 92-202 Requests		Pass Pass Pass

07:34 AM -- Consideration of Draft Committee Legislation

Mr. Jeremiah Barry, Office of Legislative Legal Services (OLLS), presented a draft of committee legislation, "Concerning Flexibility for Capital Construction Projects." Committee members received a copy of the draft legislation, prepared by OLLS (Attachment A). Mr. Barry explained a change in the draft's title. Mr. Barry then highlighted changes between the April 3 draft and previous drafts of the legislation presented to the committee. Mr. Barry addressed a question about the two-year projections of cash-funded projects prepared by higher education institutions required by the draft legislation. Discussion ensued about whether the review of the 2-year projection list will occur annually or biannually.

07:45 AM

Mr. Barry continued his explanation of changes to the latest version of the draft legislation, including how projects subject to the higher education revenue bond intercept program will be reviewed and whether projects that receive future gifts, grants, or donations will require additional review or approval. Committee members received a list of suggested changes to the draft legislation, prepared by the Governor's Office of State Planning and Budgeting and the Department of Higher Education (Attachment B). Mr. Barry addressed questions about Attachment B and explained how the recommended changes affect the draft legislation.

07:55 AM

Discussion ensued about the intent of the draft legislation and how to best grant flexibility for higher education institutions for cash-funded projects. Discussion continued about Attachment B. The committee decided to incorporate two changes from Attachment B, including (1) Page 7, line 8, insert "additional" between "to" and "review;" and (2) Page 10, line 21, insert "and (10)" after "(9)".


BILL:	Consideration of Draft Committee Legislation
TIME:	07:59:36 AM
MOVED:	McFadyen
MOTION:	Recommend draft legislation, "Concerning Flexibility for Capital Construction Projects," dated April 3, 2009, as committee legislation, incorporating two suggested changes from Attachment B. The motion carried on a vote of 6-0.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Bacon	Yes
	Riesberg	Yes

Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

Prior to the vote, discussion ensued about the necessity of a safety clause for the proposed legislation. The committee decided not to add a safety clause to the proposed legislation. The committee decided to start the bill in the Senate. Senator Bacon and Representative Riesberg agreed to be the primary bill sponsors.

08:09 AM -- Department of Public Health and Environment FY 2009-10 Cash-Funded Request

Mr. Gary Baughman, Director, Hazardous Materials Waste Management Division, Department of Public Health and Environment, presented a request for a FY 2009-10 cash-funded project, Cleanup Projects, American Recovery and Reinvestment Act of 2009. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment C). Mr. Baughman addressed questions about the federal consent decree associated with superfund sites and available funds from the Hazardous Substance Response Fund for operating and maintenance expenses for hazardous waste cleanup sites in the state. Representative Riesberg addressed a concern about whether the project will be subject to a six-month or 18-month encumbrance deadline. He said the project will be treated as if it has a six-month deadline for encumbering funds, but that the committee will entertain a future request to waive this deadline if necessary.


BILL:	Department of Public Health and Environment FY 2009-10 Cash-Funded Request
TIME:	08:18:40 AM
MOVED:	McFadyen
MOTION:	Approve the request for cash funds spending authority for the Cleanup Projects, American Recovery and Reinvestment Act of 2009 project ($22,550,000, including $20,500,00 FF and $2,050,000 CF). The motion carried on a vote of 5-0-1.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Bacon	Excused
	Riesberg	Yes

Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

Prior to the vote, Mr. Baughman addressed a question about whether state approval is required for the project. He explained that approval is needed for the cash funds component, but not necessarily for the federal funds.

08:21 AM -- University of Colorado at Boulder Senate Bill 92-202 Requests

Ms. Kelly Fox, Interim Vice-President of Budget and Finance, University of Colorado System, presented a Senate Bill 92-202 request for the Behavioral Science Building. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment D). Ms. Fox addressed questions about the source of cash funds for the project and the status of construction at Grandview Terrace.


BILL:	University of Colorado at Boulder Senate Bill 92-202 Requests
TIME:	08:25:08 AM
MOVED:	Sonnenberg
MOTION:	Approve the request for cash funds spending authority for the Behavioral Science Building (202 Project) ($1,805,376 CF). The motion carried on a vote of 4-0-2.
SECONDED:
		VOTE
	Kopp	Excused
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Bacon	Excused
	Riesberg	Yes

Final YES: 4 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

08:26 AM

Ms. Fox summarized a second SB 92-202 request, Williams Village Phase 2a project. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment E). Ms. Fox discussed the housing goals of the Boulder campus, the planned architectural style of the facility, and budgetary challenges facing higher education institutions. In response to a question, Ms. Fox told the committee that the new facility will include some classroom space and said it is important to students to be housed in Boulder. Senator Schwartz said the Boulder community encourages the university to provide as much on-campus housing as possible and that public-private partnerships are not always successful in the development of student housing.

08:35 AM

Discussion turned to the advent of increased enrollment during economic recessions at higher education institutions.


BILL:	University of Colorado at Boulder Senate Bill 92-202 Requests
TIME:	08:36:15 AM
MOVED:	Schwartz
MOTION:	Approve the request for cash funds spending authority for the Williams Village Phase 2a (202 Project) ($51,535,000 CF). The motion carried on a vote of 3-1-2.
SECONDED:
		VOTE
	Kopp	Excused
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	No
	Bacon	Excused
	Riesberg	Yes

Final YES: 3 NO: 1 EXC: 2 ABS: 0 FINAL ACTION: PASS

08:38 AM

The committee adjourned.