Bill Text - HB368 (2017)

Relative to the heating of certain state-owned buildings in Concord and making appropriations therefor.


Revision: Jan. 30, 2017, 8:19 a.m.

HB 368-FN-A - AS INTRODUCED

 

 

2017 SESSION

17-0582

10/09

 

HOUSE BILL 368-FN-A

 

AN ACT relative to the heating of certain state-owned buildings in Concord and making appropriations therefor.

 

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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ANALYSIS

 

This bill authorizes the commissioner of administrative services to decommission the Concord Steam Corporation facilities and contract for replacement systems providing heat to state-owned buildings in Concord.  The bill makes operating and capital appropriations to the department of administrative services for the purposes of the bill.

 

This bill is a request of the joint legislative Concord Steam task force.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17-0582

10/09

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Seventeen

 

AN ACT relative to the heating of certain state-owned buildings in Concord and making appropriations therefor.

 

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.  Notwithstanding any law or administrative rule to the contrary, the commissioner of the department of administrative services is authorized to contract for the purchase and replacement of all systems providing heat to the 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.  This shall include system design, construction, hazardous material remediation, and project administration and management as required.  These projects 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.

II.  Notwithstanding any law or administrative rule to the contrary, the commissioner of the department of administrative services is authorized to decommission the steam plant located at 105 Pleasant Street in Concord.  This shall include 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.

III.  The commissioner of the department of administrative services shall identify and propose to the legislature heating system projects that may be added to the operating budget for the biennium ending June 30, 2019, in lieu of bonding such projects, when such action may be beneficial to the state.

IV.  In planning the design, the commissioner of the department of administrative services shall explore all reasonable options to provide heat and hot water in a way that minimizes costs, preserves technological flexibility, and protects environmental quality and the aesthetic nature of state facilities.

2  Capital Appropriation; Department of Administrative Services; Heating of State-Owned Buildings.

I.  The sum not to exceed $25,000,000 is hereby appropriated to the department of administrative services for purposes identified in paragraphs I and II of section 1 of this act.

II.  The state treasurer is hereby authorized to borrow upon the credit of the state not exceeding the sum of $25,000,000 for the purposes identified in paragraphs I and II of section 1 of this act and may issue bonds and notes in the name of and on behalf of the state of New Hampshire in accordance with RSA 6-A.

III.  The payment of principal and interest on bonds and notes issued for the projects identified in paragraphs I and II of section 1 of this act shall be made when due from the general fund of the state.

3  Appropriation; Department of Administrative Services.  In lieu of bonding such projects pursuant to section 2 of this act, the commissioner of the department of administrative services is hereby authorized to identify and expend an amount necessary for said projects out of any money in the treasury not otherwise appropriated, when such action may be beneficial to the state.  The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.  In no instance shall the total amount authorized pursuant to sections 2 and 3 of this act exceed $25,000,000.

4  Appropriation; Department of Administrative Services.  A sum equal to the amount necessary to replenish expended funds from the capital appropriation line included in 2015, 220:1, II, A. 1, All State Owned Facilities – Emergency Repairs, is hereby appropriated to the department of administrative services for the biennium ending June 30, 2017.  The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

5  Appropriation; Department of Administrative Services; Division of Plant and Property Management.  The sum of $60,000 for the biennium ending June 30, 2017 is hereby appropriated to the department of administrative services for the purpose of funding an environmental study of the property at 105 Pleasant Street in Concord.  The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

6  Effective Date.  This act shall take effect upon its passage.

 

LBAO

17-0582

1/4/17

 

HB 368-FN-A- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the heating of certain state-owned buildings in Concord and making appropriations therefor.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2018

FY 2019

FY 2020

FY 2021

   Appropriation

Indeterminable Increase

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Increase

$2,712,500

$2,637,500

$2,562,500

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [    ] Other

 

 

 

 

 

This bill increases the bonded indebtedness supported by the general fund by $25,000,000.

 

METHODOLOGY:

This bill authorizes the Commissioner of Administrative Services to decommission the Concord Steam Corporation facilities and contract for replacement systems providing heat to State-owned buildings in Concord that are currently served by Concord Steam Corporation.  The Commissioner is also required to identify and propose to the Legislature heating system projects that may be added to the operating budget for the biennium ending June 30, 2019, in lieu of bonding such projects, when such action may be beneficial to the State.  The bill makes a capital appropriation in an amount not to exceed $25 million to the Department of Administrative Services and authorizes the Treasurer to borrow upon the credit of the State not to exceed such amount.  Payment of principal and interest on bonds and notes to fund the projects are to be made from the State’s general fund.  

 

An appropriation is made to the Department of Administrative Services for a sum equal to the amount necessary to replenish expended funds from the State-Owned Facilities-Emergency Repairs account for the biennium ending June 30 2017.  The capital budget (Chapter 220:1, Laws of 2015) appropriated $975,000, so the maximum appropriation would not exceed this amount.  The Department indicated it spent $100,000 from this account for emergency repairs at the men's prison.  The bill does not specify that previously expended funds must have been used for projects related to Concord Steam.

 

A sum of $60,000 for the biennium ending June 30, 2017 is made to the Department of Administrative Services for the purpose of funding an environmental study of the property located at 105 Pleasant Street in Concord. The Department of Administrative Services states that the Department will not require any funding to complete the environmental study.  Phase I is already completed and Phase II will be paid from the Underground Storage Tank Fund.

 

The Treasury Department states this bill will increase state general fund expenditures by $625,000 in FY 2018, $2,712,500 in FY 2019, $2,637,500 in FY 2020, and $2,562,500 in FY 2021.  

The State Treasury has indicated that the amount of total outstanding direct general obligation bonded indebtedness on behalf of and incurred by the State as of June 30, 2016 is $828 million (not including bond anticipation notes outstanding).  The amount of net general obligation bonded indebtedness (general improvement plus University System of New Hampshire bonds), as of June 30, 2016 is $606 million.  The estimated amount of net general obligation bonds authorized, but unissued, as of June 30, 2016 is $283.3 million.  

 

The Treasury Department has assumed the proposed bond authorization appropriation of $25 million will be issued in FY 2018.  Current interest bond rates are assumed fixed at 5% and amortized over 20 years (60% of the principal paid in the first ten years, 40% paid in the second ten years).   An estimated debt retirement schedule for all outstanding direct general obligation bonded indebtedness, including the proposed authorization contained in this bill through FY 2021, is displayed below (in thousands):

 

Fiscal Existing Additional Total Year Debt Obligation Debt Obligation Debt Obligation 2018 $87,970 $625                  $88,595

2019 $86,675 $2,712             $89,387

2020 $82,545 $2,637 $85,182

2021 $70,385 $2,562 $72,947

 

 

AGENCIES CONTACTED:

Treasury Department and Department of Administrative Services

 

 

HB 368-FN-A - AS INTRODUCED

 

 

2017 SESSION

17-0582

10/09

 

HOUSE BILL 368-FN-A

 

AN ACT relative to the heating of certain state-owned buildings in Concord and making appropriations therefor.

 

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

 

-----------------------------------------------------------------

 

ANALYSIS

 

This bill authorizes the commissioner of administrative services to decommission the Concord Steam Corporation facilities and contract for replacement systems providing heat to state-owned buildings in Concord.  The bill makes operating and capital appropriations to the department of administrative services for the purposes of the bill.

 

This bill is a request of the joint legislative Concord Steam task force.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

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.

17-0582

10/09

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Seventeen

 

AN ACT relative to the heating of certain state-owned buildings in Concord and making appropriations therefor.

 

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.  Notwithstanding any law or administrative rule to the contrary, the commissioner of the department of administrative services is authorized to contract for the purchase and replacement of all systems providing heat to the 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.  This shall include system design, construction, hazardous material remediation, and project administration and management as required.  These projects 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.

II.  Notwithstanding any law or administrative rule to the contrary, the commissioner of the department of administrative services is authorized to decommission the steam plant located at 105 Pleasant Street in Concord.  This shall include 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.

III.  The commissioner of the department of administrative services shall identify and propose to the legislature heating system projects that may be added to the operating budget for the biennium ending June 30, 2019, in lieu of bonding such projects, when such action may be beneficial to the state.

IV.  In planning the design, the commissioner of the department of administrative services shall explore all reasonable options to provide heat and hot water in a way that minimizes costs, preserves technological flexibility, and protects environmental quality and the aesthetic nature of state facilities.

2  Capital Appropriation; Department of Administrative Services; Heating of State-Owned Buildings.

I.  The sum not to exceed $25,000,000 is hereby appropriated to the department of administrative services for purposes identified in paragraphs I and II of section 1 of this act.

II.  The state treasurer is hereby authorized to borrow upon the credit of the state not exceeding the sum of $25,000,000 for the purposes identified in paragraphs I and II of section 1 of this act and may issue bonds and notes in the name of and on behalf of the state of New Hampshire in accordance with RSA 6-A.

III.  The payment of principal and interest on bonds and notes issued for the projects identified in paragraphs I and II of section 1 of this act shall be made when due from the general fund of the state.

3  Appropriation; Department of Administrative Services.  In lieu of bonding such projects pursuant to section 2 of this act, the commissioner of the department of administrative services is hereby authorized to identify and expend an amount necessary for said projects out of any money in the treasury not otherwise appropriated, when such action may be beneficial to the state.  The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.  In no instance shall the total amount authorized pursuant to sections 2 and 3 of this act exceed $25,000,000.

4  Appropriation; Department of Administrative Services.  A sum equal to the amount necessary to replenish expended funds from the capital appropriation line included in 2015, 220:1, II, A. 1, All State Owned Facilities – Emergency Repairs, is hereby appropriated to the department of administrative services for the biennium ending June 30, 2017.  The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

5  Appropriation; Department of Administrative Services; Division of Plant and Property Management.  The sum of $60,000 for the biennium ending June 30, 2017 is hereby appropriated to the department of administrative services for the purpose of funding an environmental study of the property at 105 Pleasant Street in Concord.  The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

6  Effective Date.  This act shall take effect upon its passage.

 

LBAO

17-0582

1/4/17

 

HB 368-FN-A- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the heating of certain state-owned buildings in Concord and making appropriations therefor.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2018

FY 2019

FY 2020

FY 2021

   Appropriation

Indeterminable Increase

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Increase

$2,712,500

$2,637,500

$2,562,500

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [    ] Other

 

 

 

 

 

This bill increases the bonded indebtedness supported by the general fund by $25,000,000.

 

METHODOLOGY:

This bill authorizes the Commissioner of Administrative Services to decommission the Concord Steam Corporation facilities and contract for replacement systems providing heat to State-owned buildings in Concord that are currently served by Concord Steam Corporation.  The Commissioner is also required to identify and propose to the Legislature heating system projects that may be added to the operating budget for the biennium ending June 30, 2019, in lieu of bonding such projects, when such action may be beneficial to the State.  The bill makes a capital appropriation in an amount not to exceed $25 million to the Department of Administrative Services and authorizes the Treasurer to borrow upon the credit of the State not to exceed such amount.  Payment of principal and interest on bonds and notes to fund the projects are to be made from the State’s general fund.  

 

An appropriation is made to the Department of Administrative Services for a sum equal to the amount necessary to replenish expended funds from the State-Owned Facilities-Emergency Repairs account for the biennium ending June 30 2017.  The capital budget (Chapter 220:1, Laws of 2015) appropriated $975,000, so the maximum appropriation would not exceed this amount.  The Department indicated it spent $100,000 from this account for emergency repairs at the men's prison.  The bill does not specify that previously expended funds must have been used for projects related to Concord Steam.

 

A sum of $60,000 for the biennium ending June 30, 2017 is made to the Department of Administrative Services for the purpose of funding an environmental study of the property located at 105 Pleasant Street in Concord. The Department of Administrative Services states that the Department will not require any funding to complete the environmental study.  Phase I is already completed and Phase II will be paid from the Underground Storage Tank Fund.

 

The Treasury Department states this bill will increase state general fund expenditures by $625,000 in FY 2018, $2,712,500 in FY 2019, $2,637,500 in FY 2020, and $2,562,500 in FY 2021.  

The State Treasury has indicated that the amount of total outstanding direct general obligation bonded indebtedness on behalf of and incurred by the State as of June 30, 2016 is $828 million (not including bond anticipation notes outstanding).  The amount of net general obligation bonded indebtedness (general improvement plus University System of New Hampshire bonds), as of June 30, 2016 is $606 million.  The estimated amount of net general obligation bonds authorized, but unissued, as of June 30, 2016 is $283.3 million.  

 

The Treasury Department has assumed the proposed bond authorization appropriation of $25 million will be issued in FY 2018.  Current interest bond rates are assumed fixed at 5% and amortized over 20 years (60% of the principal paid in the first ten years, 40% paid in the second ten years).   An estimated debt retirement schedule for all outstanding direct general obligation bonded indebtedness, including the proposed authorization contained in this bill through FY 2021, is displayed below (in thousands):

 

Fiscal Existing Additional Total Year Debt Obligation Debt Obligation Debt Obligation 2018 $87,970 $625                  $88,595

2019 $86,675 $2,712             $89,387

2020 $82,545 $2,637 $85,182

2021 $70,385 $2,562 $72,947

 

 

AGENCIES CONTACTED:

Treasury Department and Department of Administrative Services