Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:02/11/2010
ATTENDANCE
Time:08:15 AM to 08:49 AM
Kopp
X
McFadyen
E
Place:SCR 356
Schwartz
*
Sonnenberg
X
This Meeting was called to order by
Riesberg
X
Senator Bacon
Bacon
X
This Report was prepared by
Kori Donaldson
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
Update on COP Refinance and Supplemental Requests (3)Pass

08:15 AM -- Update on the Refinance of Various Certificates of Participation and Supplemental Requests (3) to Reduce FY 2009-10 Payments

The committee was called to order. A quorum was present. Ms. Mary Wickersham, Director of Initiatives, Office of the State Treasurer, and Ms. Lisa Esgar, Deputy Director, Office of State Planning and Budgeting (OSPB), gave an overview of the certificates of participation (COP) refinance process and presented three supplemental requests to change FY 2009-10 payments for various COPs. Committee members received a summary of the refinancing process, provided by OSPB (Attachment A). Committee members also received a summary of the supplemental requests, prepared by Legislative Council Staff, including: (1) Various Higher Education Projects -- November 2008 Issue (COP Project), Department of Higher Education (Attachment B); (2) Various Projects at the Anschutz Medical Campus (formerly Fitzsimons) (COP project), University of Colorado Denver (Attachment C); and (3) Colorado State Penitentiary II, High-Custody Expansion (COP Project), Department of Corrections, (Attachment D).

100211AttachA.pdf100211AttachB.pdf100211AttachC.pdf100211AttachD.pdf

Ms. Esgar and Ms. Kori Donaldson, Legislative Council Staff, addressed questions about the approval process for the supplemental requests.

08:26 AM

Discussion ensued regarding the use of revenue in the Higher Education Federal Mineral Lease Revenues Fund for COP payments and for future use for other projects prioritized and approved by House Joint Resolution 08-1042, but not financed by the Various Higher Education Projects -- November 2008 Issue. Ms. Esgar addressed a question about the use of cash funds for something other than their designated purpose. Ms. Wickersham clarified the use of a General Fund transfer authorized during the 2009 session to the Higher Education Federal Mineral Lease (FML) Revenues Fund for FY 2009-10 and FY 2010-11 COP payments.





08:35 AM

Discussion continued about transfers made during the 2009 session to and from various cash funds to offset the FY 2009-10 budgetary shortfall. Representative Riesberg said he would like to use savings on future COP payments for Level I Controlled Maintenance projects in future years. Ms. Esgar described the OSPB recommendation for FY 2010-11 Level I Controlled Maintenance. Ms. Wickersham and Ms. Esgar addressed questions about dedicated funding sources for the various COP payments, and the use of the Higher Education Maintenance and Reserve Fund for controlled maintenance. Ms. Donaldson addressed a question about a General Fund transfer made during the 2009 legislative session for the Various Higher Education Projects -- November 2008 Issue project.

08:44 AM

Ms. Wickersham summarized the refinancing process. She explained that only some of the outstanding COPs for the three projects were refinanced, and that others can be refinanced at a later date. The Treasurer worked with various legislators and the Governor's office to make the refinancing a more transparent process. Ms. Wickersham explained the existing statutory authorities that permitted the COP refinance and complimented the other departments involved in the process. She addressed a question about why only part of the outstanding COPs were refinanced and not the entire issuance, and said the Treasurer listened to OSPB recommendations regarding increasing immediate savings rather then spreading the savings over the course of the payments. She said the refinancing resulted in both overall present value savings and overall actual dollar savings.
BILL:Department of Higher Education
TIME: 08:47:38 AM
MOVED:Riesberg
MOTION:Approve the supplemental request to reduce cash funds spending authority ($981,608 CF) for the Various Higher Education Projects -- November 2008 Issue project. The motion carried on a vote of 3-2-1.
SECONDED:
VOTE
Kopp
No
McFadyen
Excused
Schwartz
Yes
Sonnenberg
No
Riesberg
Yes
Bacon
Yes
Final YES: 3 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:University of Colorado Denver
TIME: 08:48:28 AM
MOVED:Riesberg
MOTION:Approve the supplemental request to eliminate the FY 2009-10 state-funded appropriation [($5,142,062)] and increase cash funds spending authority ($945,082) for the Various Higher Education Projects -- November 2008 Issue project. The motion carried on a vote of 3-2-1.
SECONDED:
VOTE
Kopp
No
McFadyen
Excused
Schwartz
Yes
Sonnenberg
No
Riesberg
Yes
Bacon
Yes
Final YES: 3 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS
BILL:Department of Corrections
TIME: 08:49:02 AM
MOVED:Riesberg
MOTION:Approve the negative supplemental request for the Colorado State Penitentiary II, High-Custody Expansion (COP Project) ($13,942,350, including $8,175,782 CCF and $5,766,568 CERF). The motion carried on a vote of 4-1-1.
SECONDED:
VOTE
Kopp
No
McFadyen
Excused
Schwartz
Yes
Sonnenberg
Yes
Riesberg
Yes
Bacon
Yes
Final YES: 4 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS
08:49 AM

The meeting adjourned.