Bill Summary for Bill Number Use of Unspent COP Proceeds

Date: 09/05/2012

Final
Use of Unspent COP Proceeds

COMMITTEE ON CAPITAL DEVELOPMENT

Votes: View-->	Action Taken:
Approve the expenditure of unspent proceeds from t Approve the expenditure of unspent proceeds from t SUBSTITUTE MOTION W/DRAWN PRIOR TO VOTE (SEE FOLLO	PASS TIE

10:07 AM -- Unspent Certificates of Participation Proceeds

Senator Bacon provided general information about the unspent proceeds from the 2008 sale of certificates of participation (COPs) used to finance the construction of various higher education facilities. He explained the role of the committee in determining how these moneys will be spent. Committee members received a copy of a letter from the Office of the State Controller detailing the remaining moneys available (Attachment F). Committee members also received a table listing score 12 and 14 projects from the FY 2012-13 Level II controlled maintenance priority list that have been identified as capital expenditures and therefore eligible for funding from this source, prepared by Legislative Council Staff (Attachment G). Ms. Donaldson walked the committee through Attachments F and G.

10:11 AM

Mr. Bill Mansheim, Vice President, Office of Finance and Governmental Relations, Adams State University, presented a request to use a portion of the unspent COP proceeds to make repairs to the auditorium in Richardson Hall. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment H). Senator Schwartz explained that the third floor of the building is not currently in use. Mr. Mansheim described the recent findings of a structural engineer that have lead to limited use of the third floor. Discussion ensued about the projects funded through the 2008 COP issuance and the history of requests for the Richardson Hall project. Mr. Mansheim responded to a comment from the committee about other moneys granted to the campus and provided information about recent construction projects on the campus. Discussion ensued on the topic of capital needs at higher education institutions throughout the state.

10:23 AM

The committee discussed the merits of funding the Adams State University project and Level II controlled maintenance projects. Senator Schwartz discussed the original intent of the 2008 COPs and the use of federal mineral lease revenues for higher education institution capital projects. In response to a question, Ms. Donaldson explained that there are sufficient funds available to pay for the Richardson Hall project, the score 12 projects, and two score 14 projects (either projects 14.02 and 14.09, or projects 14.07 and 14.09). (See Attachments F and G.) Discussion continued about potential funding scenarios. Mr. Manshiem provided additional information about student fees used to finance various academic buildings on the Adams State University campus. He also said the Richardson Hall project would have been submitted as a controlled maintenance request if he had known there were moneys available for that category of project. Discussion ensued on this topic.

10:35 AM

The committee continued its discussion of potential funding scenarios. Mr. Mansheim explained why student fees were used to construct academic buildings rather than make renovations to Richardson Hall. Discussion ensued about the submittal process for the Richardson Hall request. In response to a question, Mr. Mansheim discussed enrollment growth on the campus.

10:46 AM

Mr. Larry Friedberg, State Architect, Department of Personnel and Administration, came to the table to discuss the potential funding scenarios and the request process for controlled maintenance and capital renewal projects. Mr. Friedberg addressed a question about the E. S. French Renovation project at Northeastern Junior College included on the original list of projects approved for funding from the 2008 sale of COPs. Representative Sonnenberg expressed reservations about approving requests that do not follow the standard process for project submittal and consideration. Discussion continued on the topic of unfunded projects that were originally listed on the priority list of projects eligible for funding through COPs.

10:56 AM

Committee discussion about possible funding scenarios and the standard submittal process continued. Senator Bacon explained that the use of the unspent COP proceeds for controlled maintenance does not meet the original intent of the 2008 COP issuance, which directed that federal mineral lease revenues would be spent for higher education institution capital projects.


BILL:	Unspent Certificates of Participation Proceeds
TIME:	10:58:30 AM
MOVED:	Schwartz
MOTION:	Approve the expenditure of unspent proceeds from the 2008 sale of certificates of participation to fund the following projects: Richardson Hall Renovation, Phase I (see Attachment H), all remaining higher education institution score 12 projects on the FY 2012-13 Level II controlled maintenance priority list (see Attachment G), and the score 14.02 and score 14.09 projects on the FY 2012-13 Level II controlled maintenance priority list (see Attachment G). The motion failed on a 3-3 vote.
SECONDED:
		VOTE
	Brown	No
	Renfroe	No
	Schwartz	Yes
	Vigil	Yes
	Sonnenberg	No
	Bacon	Yes

Final YES: 3 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: TIE


BILL:	Unspent Certificates of Participation Proceeds
TIME:	11:00:12 AM
MOVED:	Sonnenberg
MOTION:	SUBSTITUTE MOTION W/DRAWN PRIOR TO VOTE (SEE FOLLOWING VOTE SHEET)
SECONDED:
		VOTE
	Brown
	Renfroe
	Schwartz
	Vigil
	Sonnenberg
	Bacon

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION:


BILL:	Unspent Certificates of Participation Proceeds
TIME:	11:03:33 AM
MOVED:	Sonnenberg
MOTION:	Approve the expenditure of unspent proceeds from the 2008 sale of certificates of participation to fund the following projects: all remaining higher education institution score 12 projects and score 14.02 through score 14.07 projects, and the score 14.09 project on the FY 2012-13 Level II controlled maintenance priority list (see Attachment G). The motion passed on a vote of 4-2.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	Yes
	Schwartz	No
	Vigil	No
	Sonnenberg	Yes
	Bacon	Yes

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

11:05 AM

The committee adjourned.