Joint Committee Committee on Capital Development (02/16/2006)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	02/16/2006	ATTENDANCE

Time:	08:07 AM to 09:02 AM	Berens	X
		McElhany	*
Place:	SCR 356	Riesberg	X
		Windels	X
This Meeting was called to order by		McFadyen	*
	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:
University of Colorado Six-Month Waiver and Spending Requests Discussion Regarding Financing Options for CBI Lab Discussion Regarding Senate Bill 06-189		Pass Witness Testimony Only Witness Testimony Only

08:08 AM

The committee was called to order. A quorum was present.

08:08 AM -- CU Six-Month Waiver and Two Spending Authority Extension Requests

Mr. Rob Kohrman, Assistant Vice-President of Budget and Finance, University of Colorado (CU) System, presented three requests to the committee. Mr. Kohrman first gave an overview of a requested waiver of the six-month encumbrance deadline for the CU-Boulder Information Technology Infrastructure Improvement project, and the reason for the request. Committee members received a description of the request, prepared by Legislative Council Staff (Attachment A).


BILL:	CU Six-Month Waiver Request
TIME:	08:10:28 AM
MOVED:	Berens
MOTION:	Approve the University of Colorado's request for a waiver of the six-month encumbrance rule for the Information Technology Infrastructure Improvement project on the Boulder campus ($13,524,930 CFE). The motion passed on a 5-0-1 vote.
SECONDED:
		VOTE
	Berens	Yes
	McElhany	Excused
	Riesberg	Yes
	Windels	Yes
	McFadyen	Yes
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

Mr. Kohrman provided a quick overview of the next request, to extend spending authority for two years for the Center for Bioethics and Humanities project at the CU-Health Sciences Center, and the reason for the request. Committee members received a description of the request, prepared by Legislative Council Staff (Attachment B).


BILL:	CU Spending Authority Extension Request
TIME:	08:12:36 AM
MOVED:	McFadyen
MOTION:	Approve the University of Colorado's request to extend spending authority from May 1, 2006, to June 30, 2008, for the Center for Bioethics and Humanities project at Fitzsimons ($4.8 million unexpended/unencumbered from the FY 2003-04 appropriation of $5.4 million CFE). The motion passed on a 5-0-1 vote.
SECONDED:
		VOTE
	Berens	Yes
	McElhany	Excused
	Riesberg	Yes
	Windels	Yes
	McFadyen	Yes
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

08:13 AM

Mr. Kohrman presented an overview of and reason for a request to extend the spending authority for three years for the Research Complex II at Fitzsimons on the CU-Health Sciences Center campus. Committee members received a description of the request, prepared by Legislative Council Staff (Attachment C).


BILL:	CU Spending Authority Extension Request
TIME:	08:15:10 AM
MOVED:	Riesberg
MOTION:	Approve the University of Colorado's request to extend spending authority from May 1, 2006, to June 30, 2009, for the Research Complex II project at Fitzsimons ($141.3 million unexpended/unencumbered from FY the 2003-04 appropriation of $205.8 million CFE). The motion passed on a 5-0-1 vote.
SECONDED:
		VOTE
	Berens	Yes
	McElhany	Excused
	Riesberg	Yes
	Windels	Yes
	McFadyen	Yes
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

08:17 AM

The committee discussed financing options for funding the construction of a new Colorado Bureau of Investigations (CBI) laboratory on the Western Slope. Representative Berens referenced discussions at a recent meeting of the committee with the Joint Budget Committee (JBC) with regard to the new facility, and the need to look at five-year departmental plans. Discussion ensued regarding the timing of a lease option for the new facility and the potential for phasing the facility. The committee referenced a letter addressed to the committee and the Governor from Mr. Steven Jeffers, Stifel Nicolaus & Company (Attachment D). The letter details the potential financing options for the new lab.

08:26 AM

Mr. Pete Mang, Deputy Director, CBI, made himself available to answer questions regarding the CBI lab project. Mr. Mang discussed the ability to phase the project. Discussion followed regarding the proposed size of the new facility and CBI's space needs in the facility. Mr. Mang provided details regarding the programs that the facility will house and briefly explained the process by which the space needs for the new facility were assessed. Discussion then returned to financing options for the new lab and the need to engage the JBC in discussions regarding these options.

08:38 AM

Senator Windels opened a discussion regarding Senate Bill 06-189, concerning the allocation of severance tax receipts. The committee received a handout detailing the severance tax forecast as of December 2005 and the impact of Senate Bill 06-189 on the use of tax receipts (Attachment E). The committee discussed the potential use of severance tax monies for controlled maintenance. Representative Berens referenced a memorandum prepared by Legislative Council Staff, which provides an update on General Fund revenue (Attachment F). Ms. Jennifer Moe, Legislative Council Staff, responded to questions about the memorandum. A discussion ensued regarding the General Fund revenue outlook.

08:50 AM

Ms. Moe explained the process by which capital construction projects have been prioritized in past years. The discussion returned to potential support for, and amendments to, Senate Bill 06-189. A discussion followed regarding funding for controlled maintenance issues and crediting monies to the Controlled Maintenance Trust Fund. Ms. Moe provided clarification regarding appropriating monies from the Controlled Maintenance Trust Fund. Senator McElhany noted the historical use of Controlled Maintenance Trust Fund monies and current controlled maintenance needs. Senator McElhany then discussed capital renewal project needs.

09:00 AM

Mr. Larry Friedberg, State Architect, explained the terms "deferred maintenance," "controlled maintenance," and "capital renewal," and the relationship between these terms. The committee discussed amending Senate Bill 06-189 to divert any applicable revenues to the funding of deferred maintenance projects.

9:02 AM

The committee adjourned.