Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:10/19/2015
ATTENDANCE
Time:08:01 AM to 08:47 AM
Becker K.
X
Brown
X
Place:SCR 356
Heath
X
Sonnenberg
X
This Meeting was called to order by
Vigil
X
Representative Vigil
Baumgardner
X
This Report was prepared by
Bo Pogue
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
New Chair and Vice Chair
Grand Junction CBI Lab Refinance Update
Discuss Changes to Review of Higher Ed Intercept Program Projects
CSU Two-Year Projection of Cash Need and Intercept Program Project
Pikes Peak Community College Two-Year Projection of Cash Need
Requests to Waive the Six-Month Encumbrance Deadline (3)
Other Business		Passed
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Passed
Passed
Passed and Draft Legislation Authorized
Draft Legislation Authorized

08:02 AM -- New Chair and Vice Chair

The committee was called to order. All members were present.
BILL:New Chair and Vice Chair
TIME: 08:02:40 AM
MOVED:Brown
MOTION:Elect Senator Baumgardner to serve as the chair of the Capital Development Committee, and Representative Vigil to serve as vice chair of the committee. Adopt the Senate Rules as the rules of procedure for the Capital Development Committee, except the committee shall not be prohibited from meeting on a day of the week other than is provided in the schedule of committee meetings, if needed.
SECONDED:
VOTE
Becker K.
Yes
Brown
Yes
Heath
Yes
Sonnenberg
Yes
Vigil
Yes
Baumgardner
Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS




08:03 AM -- Grand Junction CBI Lab Refinance Update

Mr. Jon Forbes, Deputy State Treasurer, provided an update on the refinancing of the Grand Junction Colorado Bureau of Investigation laboratory. Mr. Forbes discussed the bonding situation for the new laboratory. Mr. Forbes responded to questions regarding the expected savings to be realized under the refinancing

08:06 AM -- Discussion of Changes to Review of Higher Ed Bond Intercept Program Projects

Ms. Kori Donaldson, Legislative Council Staff, provided an update on changes to the review and analysis of Higher Education Revenue Bond Intercept Program projects. Mr. Forbes returned to respond to questions regarding whether Colorado State University (CSU) meets the program requirements. Ms. Donaldson discussed some unique elements associated with a forthcoming CSU bond intercept project. Mr. Forbes responded to questions regarding CSU's current credit rating in the bond market, and the university's current aggregate debt service coverage. Mr. Forbes responded to additional questions regarding whether CSU can incur additional debt for more capital construction projects considering this aggregate. Discussion returned to CSU's credit rating, and the university's authority to borrow under the intercept program for a project.

08:16 AM -- CSU Two-Year Projection of Cash Need and Bond Intercept Program Project

Mr. Richard Schweigert, Chief Financial Officer, CSU, presented a request for a new project on its two-year projection of cash need list, as well as additional authority for the project under the Higher Education Revenue Bond Intercept Program. Committee members received revised copies of the two-year projection of cash need list (Attachment A), prepared by Legislative Council Staff; a written description of the new cash project, which is entitled Prospect Road Underpass, prepared by Legislative Council Staff (Attachment B); and an artist's rendering of the new underpass provided by CSU (Attachment C). Mr. Schweigert provided input on the university's debt capacity and sources of revenue for debt coverage, and provided an overview of the Prospect Road Underpass project. Ms. Donaldson explained what action needed to be taken on the project.

151019 AttachA.pdf151019 AttachA.pdf151019 AttachB.pdf151019 AttachB.pdf151019 AttachC.pdf151019 AttachC.pdf
BILL:CSU Two-Year Projection of Cash Need and Bond Intercept Program Project
TIME: 08:20:54 AM
MOVED:Sonnenberg
MOTION:Approve the new project listed on the Colorado State University two-year projection of cash need. The motion passed on a vote of 6-0.
SECONDED:
VOTE
Becker K.
Yes
Brown
Yes
Heath
Yes
Sonnenberg
Yes
Vigil
Yes
Baumgardner
Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS



BILL:CSU Two-Year Projection of Cash Need and Bond Intercept Program Project
TIME: 08:21:50 AM
MOVED:Sonnenberg
MOTION: Approve borrowing for the Colorado State University Prospect Road Underpass project under the Higher Education Revenue Bond Intercept Program. The motion passed on a vote of 6-0.
SECONDED:
VOTE
Becker K.
Yes
Brown
Yes
Heath
Yes
Sonnenberg
Yes
Vigil
Yes
Baumgardner
Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

08:22 AM -- Pikes Peak Community College Two-Year Projection of Cash Need

Ms. Brenda Lauer, Vice President for Administrative Services, Pikes Peak Community College (PPCC), and Mr. Mark Superka, Vice President for Administration and Finance, Colorado Community Colleges System, presented a request for a new project on PPCC's two-year projection of cash need entitled Aspen Building Student Services Renovation. Committee members received copies of the college's two-year projection of cash need, prepared by Legislative Council Staff (Attachment D). Ms. Lauer explained why the cost of the project, which was approved by the committee on February 23, 2014, had increased.

151019 AttachD.pdf151019 AttachD.pdf
BILL:Pikes Peak Community College Two-Year Projection of Cash Need
TIME: 08:25:23 AM
MOVED:Sonnenberg
MOTION:Approve the revised project listed on the Pikes Peak Community College two-year projection of cash need. The motion passed on a vote of 6-0.
SECONDED:
VOTE
Becker K.
Yes
Brown
Yes
Heath
Yes
Sonnenberg
Yes
Vigil
Yes
Baumgardner
Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS




08:26 AM -- Requests to Waive the Six-Month Encumbrance Deadline (3)

Ms. Donaldson explained why the committee was considering three requests to waive the six-month encumbrance deadline on behalf of the Joint Technology Committee. The three waiver requests are for: the Department of Human Services Child Welfare Case Management System Replacement project; (2) the Department of Human Services IT Systems Interoperability project; and (3) the Department of Personnel and Administration Collections System Replacement project. Committee members received written descriptions of the waiver requests, prepared by Legislative Council Staff (Attachments E, F, and G). Ms. Donaldson explained why the waiver requests required approval by the Capital Development Committee on behalf of the Joint Technology Committee. Senator Sonnenberg explained that he would be requesting that committee legislation be drafted to allow the Joint Technology Committee to take action on encumbrance waiver requests for projects over which it has oversight authority.

151019 AttachE.pdf151019 AttachE.pdf151019 AttachF.pdf151019 AttachF.pdf151019 AttachG.pdf151019 AttachG.pdf
BILL:Requests to Waive the Six-Month Encumbrance Deadline (3)
TIME: 08:28:47 AM
MOVED:Sonnenberg
MOTION:Approve three requests for waivers of the six-month encumbrance deadline pursuant to Section 24-30-1404 (7), C.R.S., contingent on the recommendation by the Joint Technology Committee to waive the deadline. The motion passed on a vote of 6-0.
SECONDED:
VOTE
Becker K.
Yes
Brown
Yes
Heath
Yes
Sonnenberg
Yes
Vigil
Yes
Baumgardner
Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS



08:29 AM

Discussion ensued regarding the potential for drafting legislation to address waiver requests for Joint Technology Committee-related projects, and the need to take action on drafting committee legislation.
BILL:Requests to Waive the Six-Month Encumbrance Deadline (3)
TIME: 08:29:51 AM
MOVED:Sonnenberg
MOTION:Request that committee legislation be drafted by the Office of Legislative Legal Services to allow the Joint Technology Committee to take action on requests for waivers of the six-month encumbrance deadline for capital projects over which that committee has oversight authority. The motion passed on a vote of 6-0.
SECONDED:
VOTE
Becker K.
Yes
Brown
Yes
Heath
Yes
Sonnenberg
Yes
Vigil
Yes
Baumgardner
Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

08:30 AM -- Other Business

Ms. Donaldson provided a summary of the FY 2016-17 capital budget request portfolio, and the costs associated with funding these requests. Committee members received spreadsheets showing the FY 2016-17 capital construction requests (Attachment H) and the FY 2016-17 information technology capital requests (Attachment I), prepared by Legislative Council Staff. Ms. Donaldson responded to questions regarding changes made to the capital process under Senate Bill 15-211, and the amount of money available for funding capital projects in FY 2016-17. Ms. Donaldson also made some recommendations for changing state law created under SB 15-211 pertaining to the tolling of facility depreciation. Committee members received copies of SB 15-211 (Attachment J). Discussion returned to the amount of money available to fund capital projects in FY 2016-17.

151019 AttachH.pdf151019 AttachH.pdf151019 AttachI.pdf151019 AttachI.pdf151019 AttachJ.pdf151019 AttachJ.pdf



08:41 AM

Discussion returned to certain proposed changes to the process created under SB 15-211. Ms. Donaldson responded to questions regarding how long capital funding will be available under SB 09-228, and the process for amending the funding mechanism created under SB 15-211.
BILL:Other Business
TIME: 08:44:52 AM
MOVED:Brown
MOTION:Request that committee legislation be drafted by the Office of Legislative Legal Services to make certain changes to the process associated with the automatic funding mechanism created by Senate Bill 15-211. The motion passed on a vote of 6-0.
SECONDED:
VOTE
Becker K.
Yes
Brown
Yes
Heath
Yes
Sonnenberg
Yes
Vigil
Yes
Baumgardner
Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

08:45 AM

Mr. Matt Becker, Legislative Council Staff, updated the committee on its upcoming meeting schedule.


08:47 AM

The committee adjourned.