Joint Committee Committee on Capital Development (06/16/2010)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	06/16/2010	ATTENDANCE

Time:	09:05 AM to 10:01 AM	Renfroe	A
		Schwartz	X
Place:	SCR 356	Sonnenberg	X
		Vigil	X
This Meeting was called to order by		Riesberg	X
	Senator Bacon	Bacon	X

This Report was prepared by
	Kori Donaldson
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Department of Corrections State-Funded Supplemental Request Western State College Cash-Funded Requests (3) University of Colorado at Boulder Cash-Funded Supplemental Request Metropolitan State College Cash-Funded Supplemental Request Department of Labor and Employment Six-Month Waiver Request		Pass Pass Pass Pass Pass

09:05 AM -- Department of Corrections State-Funded Supplemental Request

The committee was called to order. A quorum was present. Ms. Deb Kugler, Budget Manager, and Mr. Richard Weems, Director of Facility Management Services, both of the Department of Corrections, presented a state-funded supplemental request for the Colorado State Penitentiary II, High-Custody Expansion (COP Project). Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment A). Ms. Kugler gave background about the payment schedule for the certificates of participation (COP) for the project, including a supplemental request to eliminate the FY 2009-10 payment considered by the committee in February 2010. Ms. Kugler addressed questions about the project.


BILL:	Department of Corrections
TIME:	09:10:52 AM
MOVED:	Riesberg
MOTION:	Approve the state-funded supplemental request for the Colorado State Penitentiary II, High-Custody Expansion (COP Project) FY 2009-10 certificates of participation annual payment ($2,855,175 CCF). The motion carried on a vote of 6-0.
SECONDED:
		VOTE
	Renfroe	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

09:11 AM -- Western State College Cash-Funded Requests

Dr. Jay Helman, President, and Mr. Brad Baca, Vice President for Finance and Administration, both of Western State College, presented two FY 2010-11 cash-funded requests subject to the Higher Education Revenue Bond Intercept Program including: (1) Shavano Apartment Complex; and (2) Paul Wright Gymnasium Renovation. Committee members received a summary of the requests, prepared by Legislative Council Staff (Attachments B and C, respectively). President Helman and Mr. Baca also presented a revised two-year projection of cash need. Committee members received a copy of the revised projection, prepared by Legislative Council Staff (Attachment D). Mr. Baca discussed the structure of a capital fee approved by students in spring 2010 and outlined the need for both projects. He said the student capital fee will also finance some deferred maintenance. In response to a question, Mr. Baca explained that by 2020 the student fee will be $2,688 per full-time student, or $97 per credit hour for a maximum of 15 credit hours. Discussion ensued about other student fees levied by the college and the availability of financial aid to offset the student capital fee for certain students.

09:22 AM

Mr. Baca addressed a question about changes made to the Shavano Apartment Complex request since it was last considered by the committee in December 2009. He explained that the college has since completed a program plan for the project which helped it to better define its housing needs. Mr. Baca addressed a question about where students currently choose to live since the existing facility has only a 65 percent occupancy rate. In response to a question, Mr. Baca explained that there is asbestos in the existing apartment complex and that abatement moneys are built into the budget. Discussion turned to moneys available from student housing and capital fees for future operating and maintenance costs for the two requested facilities. President Helman answered a question about the recent student vote for a new capital fee and said about 40 percent of the student population participated. Mr. Baca said the college projects an 80 percent occupancy rate for the new apartment complex, which will generate about $1.2 million more per year in housing revenues. He added that he expects the actual occupancy rate to far exceed the projections. Discussion returned to the cost of the student capital fee. Mr. Baca explained the expected increase in housing fees for the new student apartments.

09:31 AM

Discussion returned to the student capital fee. Mr. Baca said the fee is intended to be a permanent fee. However, once the debt is repaid, the college will likely ask students whether they want the fee to be used for other capital projects or to be retired. Mr. Baca answered questions about the average annual payment for the bonds that will be issued for the projects and whether there would be a corresponding increase in tuition.


BILL:	Western State College
TIME:	09:34:42 AM
MOVED:	Schwartz
MOTION:	Approve the request for cash funds spending authority for the Paul Wright Gymnasium Renovation project ($32,000,599 CF) and recommend it to the Joint Budget Committee. The motion carried on a vote of 4-2-0.
SECONDED:
		VOTE
	Renfroe	No
	Schwartz	Yes
	Sonnenberg	No
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 4 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	Western State College
TIME:	09:35:45 AM
MOVED:	Schwartz
MOTION:	Approve the request for cash funds spending authority for the Shavano Apartment Complex project ($20,044,500 CF) and recommend it to the Joint Budget Committee. The motion carried on a vote of 4-2-0.
SECONDED:
		VOTE
	Renfroe	No
	Schwartz	Yes
	Sonnenberg	No
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 4 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	Western State College
TIME:	09:37:09 AM
MOVED:	Riesberg
MOTION:	Approve Western State College's revised FY 2010-11 two-year projection of cash need ($52,045,099 CF). The motion carried on a vote of 4-2-0.
SECONDED:
		VOTE
	Renfroe	No
	Schwartz	Yes
	Sonnenberg	No
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 4 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

09:38 AM -- University of Colorado at Boulder Cash-Funded Supplemental Request

Ms. Kelly Fox, Vice President for Budget and Finance, University of Colorado at Boulder, presented a negative supplemental request for the Ekeley Sciences Middle Wing Renovation project. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment E). Ms. Fox addressed a question about future construction of the facility.


BILL:	University of Colorado at Boulder
TIME:	09:41:19 AM
MOVED:	Riesberg
MOTION:	Approve the supplemental request for reduced cash funds spending authority for the Ekeley Sciences Middle Wing Renovation project (-$1,436,219, including -$151,823 CFE in FY 2007-08 and -$1,284,396 in FY 2008-09). The motion carried on a vote of 6-0-0.
SECONDED:
		VOTE
	Renfroe	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

09:42 AM -- Metropolitan State College of Denver Cash-Funded Supplemental Request

Mr. Stephen Jordan, President, and Mr. Sean Nesbitt, Director of College Facilities and Space Planning, both of Metropolitan State College of Denver, presented a cash-funded supplemental request for the Hotel Learning Center project. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment F). President Jordan and Mr. Nesbitt addressed questions about the additional project costs and the planned parking facilities. In response to a question, Mr. Nesbitt explained the amount of moneys expended for the project before the college learned that it would need to move the site of the project due to existing underground utilities. President Jordan said the Auraria Higher Education Campus sits on the site of a former neighborhood and existing underground utilities frequently pose difficulties for new construction on the campus. President Jordan addressed a question about the operating agreements that are planned to cover the cost of the debt service and program operating expenses.


BILL:	Metropolitan State College of Denver
TIME:	09:53:48 AM
MOVED:	Riesberg
MOTION:	Approve the supplemental request for additional cash funds spending authority for the Hotel Learning Center project ($5,672,338 CF). The motion carried on a vote of 6-0-0.
SECONDED:
		VOTE
	Renfroe	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

09:54 AM -- Department of Labor and Employment Six-Month Waiver Request

Senator Bacon explained that the Department of Labor and Employment requested a waiver of the six-month encumbrance deadline concurrent with approval of the Consolidated Enterprise System, Division of Oil and Public Safety project, but that this request was overlooked at the time the project was approved. The committee received a copy of the waiver request, prepared by Legislative Council Staff (Attachment G).


BILL:	Department of Labor and Employment
TIME:	09:55:34 AM
MOVED:	Riesberg
MOTION:	Approve the waiver request for the FY 2010-11 appropriation to the Consolidated Enterprise System, Division of Oil and Public Safety project ($855,049, including $641,287 CF and $213,762 FF). The motion carried on a vote of 5-1-0.
SECONDED:
		VOTE
	Renfroe	No
	Schwartz	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 5 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

09:56 AM -- Updates

Ms. Kori Donaldson, Legislative Council Staff, summarized the contents of two letters dated June 1, 2010, from the Capitol Building Advisory Committee to the Capital Development Committee. She also provided an update about the committee's next scheduled meeting.

10:01 AM

The committee adjourned.