Denver committee approves referral of up to $108M in COPs to replace Convention Center fire alarm; council questions work started before approval

The Finance & Governance Committee on July 8 voted to send a request to the full City Council to authorize a lease-purchase backed by Series 2025 certificates of participation (COPs) not to exceed $108,000,000 to pay for replacing the Colorado Convention Center fire alarm system.

Travis Bogan, director of the special projects and initiatives division, said the existing fire alarm system is "nearing the end of its useful life" and that replacement and backbone integration are needed to meet Denver Fire Department commitments and obtain a full certificate of occupancy for the recent expansion. "The fire alarm system is fully operational and it's inspected on a regular basis," Bogan said, but an updated integrated system is required to remove the temporary certificate of occupancy for the expansion.

City staff described the project scope as extensive: roughly 120 miles of conduit and more than 6,000 devices to be installed, a new system backbone, smoke-control integration and phased testing so portions of the expansion can receive occupancy certificates as they are integrated and tested. Hensel Phelps, the design-build partner that delivered the expansion, is proposed as the contractor for the work; staff said an independent cost estimate reconciled within about 3% of Hensel Phelps’ bid.

Ross (identified in the meeting as the city debt manager) outlined the financing package as a competitive, tax-exempt COP transaction not to exceed $108,000,000, an interest rate "not to exceed 5.25%," and an estimated annual lease payment of about $7.9 million leveled over a 20-year term. Staff said repayment would come from the Colorado Convention Center capital fund and a facilities emissions fund (a C‑tax), not from the city's general fund. The lease property for the financing was identified as the Convention Center parking garage and the Denver Performing Arts Complex parking garage.

Council members pressed staff about timing after committee members learned early staging and preparatory work had already begun. Council President Amanda Sandoval said she was "out of patience" with work beginning before council authorization and called it a potential charter violation. Staff responded that limited pre-construction work had been funded from existing convention center CIP funds and that further encumbrances would require council approval; if the COP action is not approved, staff said additional encumbrance and further work would stop.

The committee approved a motion by Council President Sandoval, seconded by Council Member Daryl Watson, to move the item to the full council for floor consideration. The transcript records that a floor referral was made; no roll-call vote tally was included in the committee transcript.

Key details stated in committee: - Proposed principal: not to exceed $108,000,000 (includes ~ $1,000,000 cost of issuance). - Interest rate: not to exceed 5.25% (presented as a cap). - Estimated annual lease payment: about $7,900,000, leveled over a 20-year term. - Repayment sources: Colorado Convention Center capital fund and facilities emissions fund (C‑tax); not paid from general fund. - Scope: ~120 miles of conduit, >6,000 devices; phased testing and integration to obtain occupancy for expansion areas. - Contractor: Hensel Phelps (design-build partner and contractor of record for integration and permit closeout).

Clarifying notes and items not resolved in committee: the transcript contains a garbled reference to the transaction’s final maturity date (staff read a sequence that was transcribed as "twelveonetwo thousand and 44"); the committee discussion did not include a detailed roll-call vote or a contract award amount beyond the not‑to‑exceed principal. Staff said pricing is tentatively scheduled for Aug. 19 with an anticipated closing on Sept. 4 if the council refers and later approves the financing.

The committee record shows the item was referred to the full council; committee members and the public will have opportunity to revisit specific contract and financing documents on the council floor and during the subsequent ordinance readings.