Joint Committee Committee on Capital Development (01/17/2006)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	01/17/2006	ATTENDANCE

Time:	07:36 AM to 08:49 AM	Berens	X
		McElhany	X
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:
OSPB Overview of FY 2006-07 Recommendations Western State College FY 2006-07 Capital Requests Briefing on VOI-TIS Funds Briefing on Statutes Related to State Property		Witness Testimony Only Witness Testimony Only Witness Testimony Only Witness Testimony Only

07:36 AM

The committee came to order. A quorum was present.

07:37 AM -- Office of State Planning and Budgeting, Overview of Recommendations for FY 2006-07 Projects

Mr. Henry Sobanet, Director, Office of State Planning and Budgeting (OSPB), provided a general overview of the office's recommendations for FY 2006-07 capital projects. Mr. Sobanet related some background regarding the state budget as it pertains to capital development and discussed OSPB's priorities. In response to questions from the committee, Mr. Sobanet clarified the dollar figures in the overview and explained reasons for discrepancies in revenue forecasts between OSPB and other state agencies. In response to further questions, Mr. Sobanet clarified OSPB's position on including higher education projects in its recommendations. During this round of questioning, a discussion ensued regarding the potential for further funds becoming available for capital projects.

07:53 AM

Next, Mr. Sobanet reviewed OSPB's priorities for capital projects. A discussion ensued regarding the Department of Revenue's request to overhaul its tax system. Mr. Sobanet next referenced a memorandum addressed to the Governor regarding financing alternatives for a new forensics facility at the Colorado Mental Health Institute at Pueblo (CMHIP), copies of which were provided to the committee (Attachment A). The committee discussed these financing alternatives with Mr. Sobanet, including the use of Certificates of Participation (COPs) and other debt instruments, both generally and with regard to the CMHIP project. Mr. Sobanet responded to questions regarding the future use of these COPs.

08:14 AM

Mr. Sobanet concluded his remarks, and responded to a further question regarding the financing of the CMHIP project.

08:16 AM -- Western State College FY 2006-07 Requests

Mr. Jay Helman, President, Western State College (Western State), presented the college's FY 2006-07 capital requests. Mr. Helman was accompanied by Mr. Brad Baca, Chief Financial Officer, and Mr. Rick Tonnessen, Western State's Director of Operations. Mr. Helman first explained the need for the college's Information Technology Infrastructure Improvement project, and then provided an overview of the Kelley Hall Renovation project. A discussion followed regarding a dining hall upgrade at Western State. In response to a committee question, Mr. Helman provided further detail regarding the Information Technology project. Further discussion followed regarding capital spending priorities.

08:29 AM -- Update on Previously Discussed Issues

Ms. Jennifer Moe, Legislative Council Staff, first briefed the committee on Colorado statutes concerning private ownership of property on state lands and associated leases, referencing a memorandum she prepared on the subject (Attachment B). Committee members were also provided with a memorandum regarding the availability of Violent Offender Incarceration-Truth In Sentencing Grant Program (VOI-TIS) funding for a 20-bed youth corrections facility in Pueblo (Attachment C). The committee commented briefly on instances where government entities have set up such ownership arrangements and the statutory authority required to go forward with these arrangements. Next, Ms. Moe provided an update regarding funding the Pueblo facility with VOI-TIS funds, and explained other options for utilizing the VOI-TIS funds. Ms. Moe referenced Attachment C. In response to questions, Ms. Moe discussed the process for approving the VOI-TIS expenditures and clarified the source of recommendations for funding the 20-bed facility.

08:38 AM -- Discussion Regarding the Repeal of Section 24-82-1103, Colorado Revised Statutes

Mr. Jeremiah Barry, Office of Legislative Legal Services,discussed the potential for committee legislation to repeal Section 24-82-1103, C.R.S. The statute repeals by future repealer a portion of statute concerning the sale of state property and subsequent lease purchase agreements for the property. Mr. Barry referenced a memorandum he prepared on the subject (Attachment D), copies of which were provided to the committee. In response to committee questions, Mr. Barry explained the process by which property is disposed and subsequently leased under this statute, and further explained that the referenced statute was enacted in 2003 with an original repeal date in 2004. The committee discussed the fact that this statute was enacted in response to a state budget downturn. Senator Bacon explained that the Department of Personnel and Administration requested that the committee discuss this issue and sponsor legislation that repeals this statute. Senator Bacon requested that staff author a letter on the subject to the department, outlining the committee's position on the matter.

08:49 AM

The committee adjourned.