Revision: March 30, 2017, 12:15 p.m.
HB 368-FN-A - VERSION ADOPTED BY BOTH BODIES
9Feb2017... 0210h
03/16/2017 0899s
23Mar2017... 1097-CofC
2017 SESSION
17-0582
10/09
HOUSE BILL 368-FN-A
SPONSORS: Rep. Chandler, Carr. 1; Rep. Hinch, Hills. 21; Rep. L. Ober, Hills. 37; Rep. Shurtleff, Merr. 11; Sen. Daniels, Dist 11; Sen. Bradley, Dist 3; Sen. D'Allesandro, Dist 20
COMMITTEE: Public Works and Highways
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This bill authorizes the commissioner of administrative services to decommission the Concord Steam Corporation facilities and manage the replacement of systems providing heat to state-owned buildings in Concord. The bill makes an appropriation to the department of administrative services for the purposes of the bill.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
9Feb2017... 0210h
03/16/2017 0899s
23Mar2017... 1097-CofC 17-0582
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Department of Administrative Services; Authority; Heating of State-Owned Buildings.
I. The sum of $18,000,000 is hereby appropriated to the department of administrative services for the fiscal year ending June 30, 2017 for the purpose of the purchase and replacement of all systems providing heat to state facilities located at the Governor Hugh J. Gallen state office park and state-owned buildings in downtown Concord that are currently obtaining steam from Concord Steam corporation, as well as the decommissioning of the steam plant located at 105 Pleasant Street in Concord, including but not limited to system design, construction, hazardous material remediation, and project administration and management, as required. This project shall be managed by the division of public works design and construction and funds may be expended to fund any temporary personnel for the purpose of project administration, management, or clerk of the works. The commissioner of the department of administrative services is also authorized to employ a classified, full-time, permanent project manager in the division of public works design and construction, whose initial salary and benefit cost shall be from funds appropriated pursuant to this act. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated, and said funds shall not lapse until June 30, 2019.
II. An additional $7,000,000 in capital appropriations shall be included in the state capital budget (HB 25) of the 2017 legislative session. Said sum shall be used for the purposes described in paragraph I and shall be in addition to the appropriation contained in paragraph I.
2 Total Funding Appropriated and Authorized. The combined totals for the funding appropriated and authorized in section 1 of this act shall not exceed $25,000,000.
3 Effective Date. This act shall take effect upon its passage.
17-0582
Amended 3/21/17
HB 368-FN-A- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2017-0899s)
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
Appropriation | $13,000,000 | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 | $0 |
Expenditures | $13,000,000 | $300,000 | $1,302,000 | ($1,049,220) | ($1,085,220) |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ ] Other |
This bill increases the bonded indebtedness supported by the general fund by $12,000,000.
METHODOLOGY:
This bill as amended appropriates $13 million to the Department of Administrative Services (DAS) for fiscal year 2017 for the purpose of purchase and replacement of all systems within the 25 state owned buildings that currently obtain heat from Concord Steam Corporation and for decommissioning the steam facility. This appropriation is funded with any money in the Treasury not otherwise appropriated and will not lapse until June 30, 2019. The amendment also directs the Commissioner of DAS to request an additional $12 million in capital appropriations to be included in the State Capital Budget (HB 25) of the 2017 legislative session for the same purposes.
The DAS assumes the legislation will be effective immediately for the $13 million appropriation, which will come from current surplus funds and has no associated borrowing cost. The DAS also assumes that the work will be completed by spring of 2019. The DAS assumes the State will begin to take advantage of utility cost savings beginning in FY 2020. These savings are estimated at $2,315,220 for each year FY 2020 and FY 2021.
The Treasury and DAS assume the $12 million capital appropriation will be spent during FY 2018 and included in the bond issue of FY 18; a fixed coupon of 5% will be used; and amortization over 20 years, with the debt service payments structured to require the first principal payment in the spring of the year following the debt issuance. The State generally repays 60% of the principal in the first 10 years and 40% during the remaining 10 years.
An estimated debt retirement schedule for all outstanding direct general obligation bonded indebtedness, including the proposed $12 million authorization contained in this bill as amended through FY 2021 is displayed below:
Fiscal Existing Additional Total Year Debt Obligation Debt Obligation Debt Obligation 2018 $87,970 $300 $88,270
2019 $86,675 $1,302 $87,977
2020 $82,545 $1,266 $83,811
2021 $70,385 $1,230 $71,615
AGENCIES CONTACTED:
Treasury Department and Department of Administrative Services