Joint Committee Committee on Capital Development (04/25/2006)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	04/25/2006	ATTENDANCE

Time:	08:04 AM to 08:51 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:
DOC Presentation on Financing of CSPII Project Update on Capitol Bldg. Advisory Committee Meeting Discussion of Future Committee Meetings and Travel		Witness Testimony Only Witness Testimony Only None

08:04 AM

The committee came to order. A quorum was present.

08:04 AM -- Department of Corrections Presentation on Financing of Colorado State Penitentiary II Project

Mr. L.D. Hay, Director of Administration, Department of Corrections (DOC), Mr. Gary Golder, Director of Prisons, DOC, and Mr. Nate Eckloff, Managing Director, RBC Capital Markets, presented an update on the financing of the Colorado State Penitentiary II (CSPII) project. Committee members received a memorandum describing the financing of the project to date, prepared by Legislative Council Staff (Attachment A). Mr. Hay explained the DOC's need for high-custody prison bed space. He then explained the process by which the DOC moved forward with the CSPII project, from developing a program plan through the financing of the project by using certificates of participation (COPs). Committee members received an outline of this process, prepared by the DOC (Attachment B).

08:14 AM

Mr. Hay and Mr. Eckloff explained the status of the sale of the COPs for the CSPII project and the capitalized interest on the COPs. Mr. Golder responded to questions regarding the inmates to be housed at CSPII, the projected occupancy of the new facility, and the overall high-custody bed space need by the DOC. Mr. Hay responded to questions regarding the time line for the CSPII project and the anticipated number of employees needed for the facility. Mr. Eckloff explained the bond rating and payment schedule for the COPs. A discussion ensued regarding the purchase of bond insurance for the COPs.

08:31 AM

Mr. Hay explained the difference between the principal amount stipulated in CSPII's authorizing legislation and the new principal amount for the project. Mr. Hay then responded to questions about the anticipated bed space for CSPII and the configuration of the facility.

08:36 AM -- Update on Capitol Building Advisory Committee Meeting

Senator Windels updated the committee on the subjects covered at a meeting held by the Capitol Building Advisory Committee on April 21. Committee members received copies of Senator Windels' notes from the meeting (Attachment C). Discussion ensued regarding access to and security measures needed for the Capitol building. Discussion followed regarding potential threats to Capitol building employees and visitors.

08:49 AM -- Discussion on Future Meetings and Travel

The committee received a handout prepared by Legislative Council Staff outlining potential sites for the committee to visit in the interim (Attachment D). The committee decided to delay discussion of interim meeting dates until the next meeting. The committee then briefly discussed paring down the number of projects in the current fiscal year with out-year costs in response to concern over lack of future funding.

08:51 AM

The committee adjourned.