Bill Summary for Bill Number Consideration of Unspent COP Proceeds

Date: 04/26/2012

Final
Consideration of Unspent COP Proceeds

COMMITTEE ON CAPITAL DEVELOPMENT

Votes: View-->	Action Taken:
Proceed with the introduction of committee legisla	PASS

07:32 AM -- Consideration of Unspent COP Proceeds

The committee was called to order. A quorum was present. Ms. Kori Donaldson, Legislative Council Staff, and Ms. Esther van Mourik, Office of Legislative Legal Services, led a discussion about how to use unspent proceeds from the sale of Certificates of Participation (COPs), which were used for a number of higher education institution capital projects pursuant to House Joint Resolution 08-1042. Some of these projects were completed under budget, resulting in the unspent proceeds. The committee discussed the issue at its April 19th meeting. Committee members received an updated spreadsheet detailing costs associated with the projects funded by the COPs in November 2008, and any predicted savings associated with the projects (Attachment A). Ms. Donaldson briefed the committee on the information in Attachment A. Ms. van Mourik discussed the potential need for legislation to use the unspent COP proceeds. Committee members received draft legislation to this end (Attachment B). Ms. van Mourik briefed the committee on Attachment B.

07:42 AM

Ms. van Mourik continued to brief the committee on Attachment B. Ms. Donaldson provided input about the potential for refunding certain proportional moneys to the Auraria Higher Education Center (AHEC) based on savings projected to be realized from its Science Building Addition and Renovation project. Discussion ensued regarding the range of options available to the committee for refunding money to AHEC. Ms. van Mourik responded to questions regarding flexibility in the draft legislation for using the unspent COP proceeds, and in particular addressing the AHEC refund issue.

07:54 AM

Discussion continued regarding the potential for refunding certain cash proceeds to AHEC based on savings to be realized from the Science Building project. Mr. Bill Mummert, Chief Financial Officer for AHEC, discussed AHEC's preference for how to refund cash proceeds to AHEC. Discussion ensued regarding the potential for requiring that AHEC spend the refund moneys on controlled maintenance. Discussion followed regarding the accounting procedures that would need to be undertaken to refund AHEC. Since some of the refund moneys may be based on a student capital construction fee earmarked for certain projects, discussion turned to potential complications that may arise in using the refund moneys for controlled maintenance. Mr. Mark Superka, representing the Colorado Community College System, clarified that the original source of the cash moneys to be refunded was tuition, and expressed his preference for refunding the AHEC moneys and moneys to Colorado Northwestern Community College (CNCC). Discussion followed regarding tuition rates.

08:05 AM

Discussion returned to the best uses for the AHEC refund proceeds. Ms. van Mourik responded to questions regarding the steps required to finalize the draft legislation. Discussion ensued regarding the options available for using the total balance of the unspent COP proceeds, and the potential for setting guidelines to address the use of unspent COP proceeds in the future. Ms. Donaldson responded to questions regarding the refund amounts available to AHEC and CNCC. The committee clarified its intent with regard to the draft legislation. Mr. Mummert clarified that any moneys refunded to AHEC would go to the campus and not its constituent institutions, and also clarified the source of cash funding that AHEC contributed to the Science Building project.


BILL:	Consideration of Unspent COP Proceeds
TIME:	08:17:04 AM
MOVED:	Sonnenberg
MOTION:	Proceed with the introduction of committee legislation pertaining to the use of unspent proceeds from the sale of Certificates of Participation in 2008 for higher education capital construction projects, including in it a provision for refunding the Auraria Higher Education Center proportionally for the share of funding it committed to the Science Building Addition and Renovation project. The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	Yes
	Schwartz	Yes
	Vigil	Yes
	Sonnenberg	Yes
	Bacon	Yes

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

08:18 AM

Additional discussion ensued regarding the draft legislation, including sponsorship and house of origin.