Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:01/19/2006
ATTENDANCE
Time:07:49 AM to 08:56 AM
Berens
X
McElhany
*
Place:SCR 356
Riesberg
X
Windels
*
This Meeting was called to order by
McFadyen
X
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:
School of Mines FY 2006-07 Request
Departmemt of Military & Veterans Affairs Waiver Request
Staff Overview of Various Issues		Witness Testimony Only
Pass
Witness Testimony Only

07:50 AM - Call to Order

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

07:50 AM - Colorado School of Mines FY 2006-07 Request

Ms. Hille Dais, Vice-President for Finance and Operations, and Mr. Paul Leef, Campus Architect, Colorado School of Mines (Mines), presented the school's capital request to renovate the Green Center. Ms. Dais started out by generally explaining fundraising efforts for capital projects on the Mines campus, as well as some general background on the future of the campus. Ms. Dais mentioned the school's Strategic Plan 2004-2014, copies of which were distributed to the committee members. The committee members also received copies of written responses to staff's questions regarding the Green Center project (Attachment A), and an article regarding the capital shortfall for higher education institutions in North Carolina (Attachment B). Ms. Dais also referenced a website with further information on Mines (www.mines.edu).

07:57 AM

Mr. Leef provided an overview of the Green Center request. Included in the overview was an explanation of the need for the project and an itemization of the expenses involved. Mr. Leef also explained the accreditation process related to the need for the project. Mr. Leef then briefly explained a capital project, an addition to Brown Hall, that may come before the committee in a future fiscal year. Ms. Dais responded to a question regarding the need for future capital projects related to the Green Center. In so responding, Ms. Green mentioned a possible joint agreement between Mines and the City of Golden to construct a performance center. In response to a question, Ms. Dais and Mr. Leef also explained the situation regarding certain experiments performed in the Green Center basement. The discussion then returned to campus fundraising efforts for future Mines capital projects and the likelihood of capital requests for future Green Center projects.


08:08 AM - Department of Military and Veterans Affairs Waiver Request

Colonel Deborah Roberts, Facilities Management Officer, Department of Military and Veterans Affairs (DMVA), presented a request to waive the six-month encumbrance rule for the FY 2005-06 appropriation to the Anti-Terrorism Force Protection Measures and Window Wall Replacement project at the Joint Forces Headquarters. Colonel Roberts was joined by Mr. Richard Markovich, Architect for the DMVA. Colonel Roberts provided an overview and history of the project, and explained the need for the waiver. The committee received a description of the waiver request prepared by Legislative Council Staff (Attachment C). In response to committee questions, Colonel Roberts and Mr. Markovich explained the purpose of a window wall, as opposed to a standard wall, and addressed the potential to recover money under a warranty due to leaking windows in the window wall. Colonel Roberts also explained the nature and location of the window leaks.
BILL:Department of Military & Veterans Affairs Waiver Request
TIME: 08:17:02 AM
MOVED:McFadyen
MOTION:Approve the Department of Military and Veterans Affairs request for a waiver from the six-month encumbrance rule for the FY 2005-06 appropriation of $1,111,086 to the Window Wall Replacement project ($555,543 CCFE and $555,543 FF). The motion passed on a 6-0 vote.
SECONDED:
VOTE
Berens
Yes
McElhany
Yes
Riesberg
Yes
Windels
Yes
McFadyen
Yes
Bacon
Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS


08:19 AM -- Staff Overview of Various Issues

Ms. Jennifer Moe, Legislative Council Staff, presented an overview of statutory requirements for supplemental requests. Ms. Moe also presented an overview of the revenue available for FY 2006-07 capital construction requests and the five-year capital outlook. Ms. Moe referenced three memoranda that she prepared for the committee, copies of which were provided to committee members. The memoranda explain the supplemental appropriations process and timeline (Attachment D), revenue available for capital construction and controlled maintenance projects from the Capital Construction Fund and Controlled Maintenance Trust Fund (Attachment E), and the five-year outlook for capital expenditures, including Certificates of Participation (COP) commitments (Attachment F). The committee also received a memorandum prepared by Legislative Council Staff detailing issues to be considered by the committee in future discussions (Attachment G). A discussion ensued regarding supplemental requests that have been forwarded to the Joint Budget Committee in the current fiscal year. A discussion followed regarding projects currently being funded with COPs. During the discussion, Ms. Moe clarified funding commitments for COPs, the source of funds to meet these commitments, and the payment timetable for the Colorado State Penitentiary II COP project.

08:36 AM

The chairman opened the floor for a general discussion regarding sources of revenue for capital projects. The committee discussed the use of COPs for future capital projects, and the ramifications of using this sort of financing instrument. The discussion turned to methods of funding capital construction projects in recent years and the need to diversify funding sources going forward. The committee instructed Legislative Council Staff to prepare a memorandum for the committee regarding the implications of seeking funds from other sources, such as funds earmarked for transportation.

The chairman next referenced a letter he received from Representative Plant, Chairman of the Joint Budget Committee, regarding a FY 2006-07 budget request for a new Colorado Bureau of Investigation facility on the Western Slope (Attachment H). The chairman then mentioned that the next committee meeting would be on Thursday, January 26, the time yet to be determined.

08:56 AM

The meeting was adjourned.