Joint Committee Committee on Capital Development (06/22/2009)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	06/22/2009	ATTENDANCE

Time:	10:14 AM to 12:00 PM	Kopp	X
		McFadyen	X
Place:	SCR 356	Schwartz	X
		Sonnenberg	X
This Meeting was called to order by		Bacon	X
	Representative Riesberg	Riesberg	X

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

Bills Addressed:		Action Taken:
Update About Moneys Available for Capital Projects University of Colorado System FY 2009-10 Cash-Funded Requests Colorado School of Mines Senate Bill 92-202 Request Mesa State College Cash-Funded Emergency Supplemental Division of Wildlife Real Property Transactions		Witness Testimony and/or Committee Discussion Only Pass Pass Pass Pass

10:14 AM -- Update About Moneys Available for Capital Projects

The committee was called to order. A quorum was present. Ms. Lisa Esgar, Deputy Director, Governor's Office of State Planning and Budgeting (OSPB), gave the committee an overview of the OSPB June 22, 2009, economic forecast, as it relates to future funding for capital construction and controlled maintenance. Committee members received an excerpt of OSPB's June 2009 Revenue Forecast (Attachment A). Ms. Esgar began her presentation by discussing the projected General Fund transfer that will be available for capital construction and controlled maintenance projects for FY 2010-11 and FY 2011-12. Ms. Esgar talked the committee through the table on the first page of Attachment A and outlined the projects that received funding for FY 2009-10. Ms. Esgar emphasized the importance of funding Level 1 controlled maintenance projects in order to keep the state's current inventory of General Fund buildings up-to-date. Ms. Esgar addressed a question about the projected General Fund transfer for Level 1 controlled maintenance projects for FY 2010-11 and FY 2011-12. In response to a question about the Department of Revenue, Colorado Integrated Tax Architecture (CITA) project, Ms. Esgar clarified OSPB's recommendation for ongoing funding for CITA, and explained that the Department of Revenue will be required to request funding for each year of the project.

10:24 AM

Ms. Esgar answered questions about possible cost savings that may be realized from Senate Bill 09-280, which makes cuts to 61 prior years' projects in order to address the budgetary shortfall for FY 2008-09 and FY 2009-10. Ms. Esgar reminded the committee that the OSPB has not identified any inflation costs savings for previously appropriated projects. She then explained that federal mineral lease (FML) revenue is a very volatile fund source, particularly because of fluctuating demand for and prices of natural gas. She directed the committee to page 3 of Attachment A, which is a comparison of the amount of FML revenue projected to be available in various economic forecasts for certificates of participation (COP) payments for projects authorized by Senate Bill 08-233. Ms. Esgar also reviewed the table at the bottom of page 4 of Attachment A. Ms. Esgar explained that an appropriation from the Capital Construction Fund to the Higher Education FML Revenues Fund authorized by Senate Bill 09-280, ensured sufficient revenue to make both the FY 2008-09 and FY 2009-10 COP payment for the higher education projects authorized by Senate Bill 08-233.

10:35 AM -- University of Colorado System FY 2009-10 Cash-Funded Requests

Ms. Teresa Osborne, Capital Assets Director, University of Colorado (CU) System, presented two FY 2009-10 cash-funded requests, including: (1) Health and Wellness Center, University of Colorado Denver; and (2) Systems Biotechnology Building, University of Colorado at Boulder. Committee members received a summary of the requests, prepared by Legislative Council Staff (Attachments B and C, respectively). Ms. Osborne responded to questions about the source of cash funds for the Health and Wellness Center project and explained how the facility's operating and maintenance expenses will be funded. She said the proposed facility will conduct research on wellness and nutrition. In response to a question, Ms. Osborne said that the university considers the proposed facility to be entirely academic. Senator Schwartz commended the research and teaching conducted on the CU-Denver campus.


BILL:	University of Colorado System
TIME:	10:42:44 AM
MOVED:	Bacon
MOTION:	Approve the request for cash funds spending authority for the Health and Wellness Center project ($37,720,827 CF). The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Bacon	Yes
	Riesberg	Yes

Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

10:43 AM

Mr. Steve McNally, Associate Vice-Chancellor for Finance, CU Boulder, joined Ms. Osborne at the table to present the Systems Biotechnology Building project. Committee members received an overview of the project, prepared by CU (Attachment D). Ms. Osborne answered a question about how future operating and maintenance for the facility will be funded. Mr. McNally explained that the university has budgeted for ongoing operating and maintenance costs. He then addressed questions about federal funding for the project and indirect cost recoveries. Ms. Osborne said to date the CU System has received $13 million in federal economic stimulus grants for research at the Boulder and Denver campuses. Senator Bacon commented on possible cost savings for future controlled maintenance as a result of the passage of Senate Bill 09-290. Senate Bill 09-290 requires that any cash-funded capital construction project at a higher education institution that is eligible for future state dollars for operating or maintenance must comply with the provisions of the high performance certification program regarding LEED certification.


BILL:	University of Colorado System
TIME:	10:52:25 AM
MOVED:	Schwartz
MOTION:	Approve the request for cash and federal funds spending authority for the Systems Biotechnology Building project ($135,121,152, including 120,121,152 CF and 15,000,000 FF). The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Bacon	Yes
	Riesberg	Yes

Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

10:53 AM -- Colorado School of Mines Senate Bill 92-202 Request

Ms. Kirsten Volpi, Senior Vice-President for Finance and Administration, Colorado School of Mines, presented the West Campus Parking Garage (202 Project) request. Committee members received a summary of the request prepared by Legislative Council Staff (Attachment E). Ms. Volpi reviewed the results of a recent parking survey and the growing deficit of on-campus parking. Ms. Volpi addressed a question about an increase in the student parking fee.


BILL:	Colorado School of Mines
TIME:	10:56:39 AM
MOVED:	Kopp
MOTION:	Approve the Senate Bill 92-202 request for the West Campus Parking Garage project ($10,454,387 CF). The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Bacon	Yes
	Riesberg	Yes

Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

10:58 AM -- Mesa State College Cash-Funded Emergency Supplemental

Mr. Patrick Doyle, Chief Financial Officer, Mesa State College, presented a cash-funded emergency supplemental request for the Saunders Fieldhouse Renovation and Expansion project. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment F). Mr. Doyle addressed a question about the planned extension of the indoor running track.


BILL:	Mesa State College
TIME:	11:01:00 AM
MOVED:	Bacon
MOTION:	Approve the emergency supplemental request for additional cash funds spending authority for the Saunders Fieldhouse Renovation and Expansion project ($3,627,000 CF). The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Bacon	Yes
	Riesberg	Yes

Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:02 AM -- Division of Wildlife Real Property Transactions

Mr. Grady McNeill, Resource Support Section Manager, and Ms. Anne Kelson, Real Estate Unit Supervisor, both of the Division of Wildlife (DOW), Department of Natural Resources, presented nine real property transactions. Mr. McNeill began by summarizing the four proposed Torres Ranch State Habitat Area Conservation Easements. Committee members received a summary of each transaction, prepared by Legislative Council Staff (Attachments G, H, I, and J, respectively). Mr. McNeill addressed questions about public access on the four Torres Conservation Easements and the appraised value of the properties.

Mr. Mike Trujillo, Area Wildlife Manager, Pueblo Office, DOW, said the Trinidad area is at or slightly above herd objectives. In response to a question about why the properties need to be protected by conservation easement, Mr. Trujillo said landowners in Las Animas County have expressed interest in protecting the area for wildlife. He also said the Torres properties are near coal methane fields, and conservation easements may help protect wildlife corridors from possible mineral exploration and development. Mr. McNeill said subdivision of area properties into multiple plots will likely interrupt wildlife migration corridors. Ms. Kelson explained that even though the mineral rights on the properties will not be severed, the terms of the conservation easement permit DOW to negotiate surface use impacts with landowners if the mineral rights are to be developed.

11:12 AM

Discussion continued about why the Torres properties need to be protected by conservation easement. Mr. Trujillo and Mr. McNeill addressed questions about why the properties will not be open to public access.


BILL:	Division of Wildlife
TIME:	11:17:07 AM
MOVED:	Bacon
MOTION:	Recommend support for the four Torres Ranch State Habitat Area Conservation Easements, including: #1 ($531,000 CF, including 265,500 in Habitat Stamp funds and 265,500 in GOCO funds, for 624 acres); #2 ($153,500 CF, including 76,750 Habitat Stamp funds and 76,750 GOCO funds, for 191 acres); #3 ($536,000 CF, including 268,000 Habitat Stamp funds and 268,000 GOCO funds for 641 acres); and #4 ($466,000 CF, including 233,000 Habitat Stamp funds and 233,000 GOCO funds, for 637 acres). The motion carried on a vote of 4-2-0.
SECONDED:
		VOTE
	Kopp	No
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	No
	Bacon	Yes
	Riesberg	Yes

Final YES: 4 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:18 AM

Mr. McNeill continued his presentation and outlined the request for the Chubb Park Ranch Conservation Easement and Hunting Access Easement. Committee members received a summary of the transaction, prepared by Legislative Council Staff (Attachment K). Mr. McNeill addressed questions about the project's source of cash funds and how the annual operating costs will be expended. Mr. Trujillo provided an overview of the herd projections for the region. In response to a question, Ms. Kelson said a residence can be built on the property by either the current or future owner(s).


BILL:	Division of Wildlife
TIME:	11:26:25 AM
MOVED:	Schwartz
MOTION:	Recommend support for the Chubb Park Conservation Easement and Hunting Access Easement ($450,000 CF for 507 acres). The motion carried on a vote of 6-0.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Bacon	Yes
	Riesberg	Yes

Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

Prior to the vote, discussion turned to whether the terms of the conservation easement allow access for anglers. Ms. Kelson explained that the property likely does not have any desirable fishing locations and that the appraisal on the property was specific to the rights to be acquired, which, in the case of Chubb Park, included hunting but not fishing access.

11:30 AM

Mr. McNeill presented the Cabin Creek State Wildlife Area and Lost Canyon Wildlife Area Donation property transaction. Committee members received a summary of the transaction, prepared by Legislative Council Staff (Attachment L). Mr. McNeill addressed questions about when the transaction will be finalized.


BILL:	Division of Wildlife
TIME:	11:35:11 AM
MOVED:	Schwartz
MOTION:	Recommend support for the Cabin Creek State Wildlife Area (202 acres) and Lost Canyon State Wildlife Area (305-320 acres) donation. The motion carried on a vote of 6-0.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Bacon	Yes
	Riesberg	Yes

Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:36 AM

Mr. McNeill presented a request to acquire the Andrick Ponds State Wildlife Area. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment M), and letters of concurrence for the proposed transaction, supplied by DOW (Attachment N). Mr. McNeill answered a question about the map included in Attachment M. Discussion ensued about the water rights associated with the property. Mr. McNeill explained that DOW has no intention to change how the property is currently managed because it would not be beneficial to waterfowl in the area. Discussion continued about water augmentation, water rights, and the lease of water credits associated with the property.


BILL:	Division of Wildlife
TIME:	11:44:51 AM
MOVED:	Bacon
MOTION:	Recommend support for the acquisition of Andrick Ponds State Wildlife Area ($3,250,000 CF, including 1,625,000 Habitat Stamp funds and 1,625,000 GOCO funds, for 711 acres). The motion carried on a vote of 4-2-0.
SECONDED:
		VOTE
	Kopp	No
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	No
	Bacon	Yes
	Riesberg	Yes

Final YES: 4 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:45 AM

Mr. McNeill presented the Stengel Shooting Range Conservation Easement and Deed Donation property transaction. Committee members received a summary of the transaction, prepared by Legislative Council Staff (Attachment O). Discussion turned to the impact of House Bill 09-1168 on the submittal process for DOW real property transactions. House Bill 09-1168 clarifies the order of approval for real property transactions submitted by DOW and the Division of Parks and Outdoor Recreation to the Capital Development Committee and other entities.


BILL:	Division of Wildlife
TIME:	11:48:31 AM
MOVED:	Schwartz
MOTION:	Recommend support for the donation of the Stengel Shooting Range Conservation Easement and Quitclaim Deed Donation (80 acres). The motion carried on a vote of 6-0.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Bacon	Yes
	Riesberg	Yes

Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:49 AM

Mr. McNeill presented the Tomichi Creek State Wildlife Area property transaction. Committee members received a summary of the transaction, prepared by Legislative Council Staff (Attachment P). Mr. Pat Miks, Budget Manager, DOW, came to the table to address a question about anticipated future revenues from the sale of the Wildlife Habitat Stamp. Mr. Miks explained that changes resulting from the passage of Senate Bill 09-235 are expected to lead to an additional $2.9 million annually from this revenue source. Senate Bill 09-235 prioritizes expenditures from revenue collected from the sale of the Colorado Wildlife Habitat Stamp and creates the Colorado Wildlife Passport.

Mr. McNeill addressed a question regarding concerns expressed by the Gunnison County Commissioners regarding the property transaction.


BILL:	Division of Wildlife
TIME:	11:57:33 AM
MOVED:	Schwartz
MOTION:	Recommend support for the purchase of the Tomichi Creek State Wildlife Area property (up to $1,746,229 CF, including 873,114.50 Wildlife Cash funds and 873,114.50 Habitat Stamp funds, for 466 acres). The motion carried on a vote of 6-0.
SECONDED:
		VOTE
	Kopp	Yes
	McFadyen	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Bacon	Yes
	Riesberg	Yes

Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

12:00 PM

The committee adjourned.