Joint Committee Committee on Capital Development (04/05/2012)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	04/05/2012	ATTENDANCE

Time:	08:01 AM to 08:48 PM	Brown	X
		Renfroe	*
Place:	SCR 356	Schwartz	X
		Vigil	X
This Meeting was called to order by		Sonnenberg	E
	Senator Bacon	Bacon	X

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

Bills Addressed:		Action Taken:
CSU Two-Year Cash Need Revision CMU Student Housing Phase V and Two-Year Cash Need Revision Metro State Two-Year Cash Need Overview of Long Bill Capital Construction Section Consideration of Unspent COP Proceeds		Pass Pass Pass Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only

08:01 AM -- Colorado State University Two-Year Cash Need Revision

The committee was called to order. A quorum was present. Mr. Rich Schweigert, Chief Financial Officer, Colorado State University (CSU), presented a revised Two-Year Projection of Cash Need, including three new projects: the Behavioral Sciences Building Addition, the Eddy Hall Revitalization, and the rebuild of the Equine Reproduction Laboratory. Committee members received copies of the revised two-year list, prepared by Legislative Council Staff (Attachment A). Mr. Schweigert provided an overview of these projects, including sources of cash funding. Mr. Schweigert responded to questions regarding the displacement of students while work is being performed on the three projects. Mr. Schweigert responded to further questions regarding cost savings associated with projects funded with Federal Mineral Lease moneys at CSU.


BILL:	Colorado State University
TIME:	08:08:57 AM
MOVED:	Brown
MOTION:	Approve the Colorado State University Two-Year Projection of Cash Need. The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	Yes
	Schwartz	Yes
	Vigil	Yes
	Sonnenberg	Excused
	Bacon	Yes

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

08:09 AM -- Colorado Mesa University Student Housing Phase V Request and Revised Two-Year Projection of Cash Need

Mr. Patrick Doyle, Vice President of Finance and Administration, Colorado Mesa University, presented a revised Two-Year Projection of Cash Need including one revised project: the Student Housing Phase V project. The committee also considered authorizing cash funds spending authority for the project. Committee members received a revised two-year list (Attachment B), and a written description of the Student Housing Phase V project (Attachment C), both prepared by Legislative Council Staff. Mr. Doyle responded to questions regarding the projected growth in the university's student population, and the number of students that will require on-campus housing. Mr. Doyle responded to further questions about the reduction in scope of the Student Housing Phase V project, and potential locations for building the new facility.


BILL:	Colorado Mesa University
TIME:	08:16:54 AM
MOVED:	Schwartz
MOTION:	Approve the Colorado Mesa University revised Two-Year Projection of Cash Need list. The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	Yes
	Schwartz	Yes
	Vigil	Yes
	Sonnenberg	Excused
	Bacon	Yes

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


BILL:	Colorado Mesa University
TIME:	08:17:20 AM
MOVED:	Schwartz
MOTION:	Approve cash funds spending authority for the Colorado Mesa University Student Housing Phase V project ($14,00,000 CF). The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	Yes
	Schwartz	Yes
	Vigil	Yes
	Sonnenberg	Excused
	Bacon	Yes

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

08:18 AM -- Metropolitan State College of Denver Two-Year Cash Need List

Ms. Natalie Lutes, Vice President for Finance and Administration, and Mr. Sean Nesbitt, Director of College Facilities and Space Planning, Metropolitan State College of Denver (MSC), presented a Two-Year Projection of Cash Need consisting of one project: the Athletics Complex Phase I. Committee members received copies of the two-year list prepared by Legislative Council Staff (Attachment D), a map of the proposed Athletics Complex Phase I project prepared by MSC (Attachment E), and an aerial photograph of the campus prepared by MSC (Attachment F). Mr. Nesbitt provided an overview of the Athletics Complex Phase I project. Mr. Nesbitt responded to questions regarding student and public access to the new complex, which will be located on a spur of the campus across a busy avenue from the main campus area. Discussion ensued regarding the status of the college's renaming.


BILL:	Metropolitan State College of Denver
TIME:	08:26:23 AM
MOVED:	Schwartz
MOTION:	Approve the Metropolitan State College of Denver Two-Year Projection of Cash Need. The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	Yes
	Schwartz	Yes
	Vigil	Yes
	Sonnenberg	Excused
	Bacon	Yes

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

08:27 AM -- Overview of 2012 Long Bill Capital Construction Section

Ms. Kori Donaldson, Legislative Council Staff, provided an overview of the capital construction section for House Bill 12-1335, the Long Bill. Committee members received a memorandum detailing the 2012 capital construction recommendation, prepared by Legislative Council Staff (Attachment G). Ms. Donaldson reviewed the contents of Attachment G for the committee. Discussion ensued regarding the disposition of capital construction moneys associated with three Cumbres and Toltec Scenic Railroad projects, which will be funded through its operating budget, and the Long Bill documentation for these three projects. Discussion followed regarding cash funds spending authority for History Colorado.

08:34 AM -- Consideration of Unspent Certificates of Participation Proceeds

Representative Brown initiated a conversation about how to use unspent proceeds from the sale of Certificates of Participation (COPs) backed by Federal Mineral Lease revenues earmarked for higher education institutions. Committee members received a draft memorandum about the issue, prepared by the Colorado Commission on Higher Education (Attachment H). The unspent proceeds derive from cost savings realized during the construction of the projects funded by the COPs. Representative Brown discussed the possibility of funding additional controlled maintenance projects using the unspent moneys. Mr. Dan Krug, Direct of Capital Assets and Compliance, Colorado Commission on Higher Education, provided input about how the unspent proceeds may be spent. Ms. Donaldson provided additional input regarding how the committee may recommend the use of the unspent proceeds, and to which projects the proceeds may be committed. Discussion ensued regarding the merits of funding new capital projects using the unspent proceeds as opposed to funding controlled maintenance projects. Mr. Krug provided input on the process that would need to be undertaken to use the unspent moneys on controlled maintenance.

08:45 AM

Discussion continued regarding the possible uses of the unspent COP proceeds. Ms. Donaldson provided input about the potential for phasing certain higher education capital construction projects to match the available unspent COP proceeds.

08:48 AM

The committee adjourned.