Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:12/02/2008
ATTENDANCE
Time:09:09 AM to 02:49 PM
McFadyen
X
Penry
*
Place:HCR 0112
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:
Election of Chair / Vice Chair
OSPB -- FY 2009-10 Capital Recommendations
CCHE -- FY 2009-10 Capital Recommendations
Update on FML Revenue and COP Projects
AHEC Emergency Supplemental Request
DOW -- Supplemental Request
DOW -- Real Property Transactions
DOC -- Request to Waive Six-Month Rule
DPA -- Real Property Transactions
Update on Adams County DYC Facility Replacement
DHS -- Request to Waive Six-Month Rule
Parks -- Real Property Transaction
CSU -- Waiver Requests
Potential 2009 Capital Development Legislation
Other Business
Pass
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Pass
Pass
Pass
Pass
Pass
Witness Testimony and/or Committee Discussion Only
Pass
Pass
Pass
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only


09:09 AM -- Election of Chair / Vice-Chair

The meeting was called to order. The chairman explained that, pursuant to Section 2-3-1302 (2), C.R.S., the first order of business was to elect a new committee chairman and vice-chairman.
BILL:Election of Chair / Vice Chair
TIME: 09:09:31 AM
MOVED:Schwartz
MOTION:Elect Representative Riesberg to serve as chairman of the committee. The motion passed on a 4-0-2 vote.
SECONDED:
VOTE
McFadyen
Yes
Penry
Excused
Schwartz
Yes
Sonnenberg
Excused
Bacon
Yes
Riesberg
Yes
Final YES: 4 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS
BILL:Election of Chair / Vice Chair
TIME: 09:10:21 AM
MOVED:Schwartz
MOTION:Elect Senator Bacon to serve as vice-chairman of the committee. The motion passed on a 4-0-2 vote.
SECONDED:
VOTE
McFadyen
Yes
Penry
Excused
Schwartz
Yes
Sonnenberg
Excused
Bacon
Yes
Riesberg
Yes
Final YES: 4 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

09:11 AM -- Governor's Office of State Planning and Budgeting FY 2009-10 Capital Recommendations

Mr. Todd Saliman, Director, and Ms. Lisa Esgar, Deputy Director, both of the Governor's Office of State Planning and Budgeting (OSPB), presented the Governor's FY 2009-10 capital recommendations. The committee received a letter about the status of the federal mineral lease (FML) projects (Attachment A), a General Fund overview (Attachment B), and a list of level 1 controlled maintenance projects (Attachment C), all prepared by OSPB. Mr. Saliman began by reviewing Attachment B and giving an overview of OSPB's most recent economic forecast. He explained that a General Fund transfer of $17.4 million would be required to fund OSPB's list of recommended capital projects. This recommendation includes continuation projects, certificates of participation (COP) payments, and level 1 controlled maintenance. There is one new project on the list, the Department of Human Services, Domiciliary Care Center, Fitzsimons State Veterans Nursing Home. Also, one continuation project is below the line of projects recommended for funding: the Department of Personnel and Administration, Digital Trunked Radio System. Mr. Saliman responded to a question about COPs and said these payments were included in the list of recommended continuation projects. Mr. Saliman responded to a question about the availability of revenue from the Fitzsimons Trust Fund.

09:20 AM

Representative Riesberg introduced Representative Sonnenberg as a new member of the Capital Development Committee, replacing Representative Marostica. Mr. Saliman said that when OSPB completes its December 20 economic forecast, it may revise its estimate of available revenue and project recommendations. He explained that the December 20 forecast will not reflect tax revenues collected through the holiday season. Ms. Esgar explained that OSPB created four separate priority lists of capital recommendations in lieu of a single list of recommendations for FY 2009-10. Ms. Esgar said that due to the new source of revenue for higher education projects from FML, OSPB saw a need for different priority lists for state department and higher education projects. Attachment A includes the four OSPB priority lists.

09:25 AM -- Colorado Commission on Higher Education FY 2009-10 Capital Recommendations

Mr. David Skaggs, Executive Director, Department of Higher Education (DHE); Dr. Patricia Pacey, Commissioner, Colorado Commission on Higher Education (CCHE); and Ms. Diane Lindner, Chief Financial Officer, DHE; presented the FY 2009-10 recommendations from CCHE for higher education capital projects. Committee members received a capital funding history for higher education institutions and a list of prioritized higher education projects, prepared by CCHE (Attachment D). Ms. Lindner gave a brief 10-year history of capital spending for higher education. She explained that the COPs issued October 23, 2008, for higher education projects helped with backlog of capital need for higher education institutions. Ms. Lindner said CCHE is hopeful for another COP issuance for higher education in the future. She discussed legislation from the 2008 session that benefitted higher education, particularly House Bill 08-1205, which changed review thresholds, program plan requirements, and the six-month encumbrance rule for certain cash-funded projects at higher education institutions . Ms. Lindner said that projects that were listed in House Joint Resolution 08-1042 but not included in the October 23 COP, are at the top of CCHE's priority list. Dr. Pacey discussed the factors that were considered during the FY 2009-10 prioritization process, and qualitative and quantitative measures that CCHE plans to use to prioritize capital requests in future years. Discussion ensued about the different qualitative measures that can be used to assess capital need for higher education institutions.

09:38 AM

Mr. Skaggs explained the need to find an equitable system to evaluate a higher education institution's ability to contribute cash funds to capital projects. Mr. Skaggs addressed a question about how student fees should be weighed when CCHE evaluates requests for capital funding. Dr. Pacey reiterated that CCHE is trying to be sensitive to the ability of different higher education institutions to contribute cash funds for construction of new capital facilities. Mr. Skaggs answered a question about how budget recommendations are made for higher education institutions that use a property-tax base for funding. Mr. Skaggs said the allocation model used by CCHE is total revenue per student, measured by General Fund support and tuition. Discussion continued about comparative measures used by CCHE to evaluate capital requests and future capital needs. Mr. Skaggs explained economic factors impacting capital need for higher education in the next five years.

09:49 AM

Discussion continued about factors that can be used to assess capital need for higher education institutions including patterns of enrollment, per-pupil funding, and year-to-year revenues per full-time equivalent student. Mr. Skaggs addressed a question about how Colorado compares to other states in terms of higher education funding and preparing students for the workforce. Discussion ensued. Mr. Skaggs said revenue per higher education student in Colorado is very low as compared to the rest of nation. Dr. Pacey spoke about the need to convince the general public that Colorado's students be unable to compete for the same jobs as students in other states if the quality of education in the state is not improved.

09:58 AM

Discussion ensued about what CCHE can do to address concerns about the quality of education in the state and the need for additional funding for higher education. Mr. Skaggs said many leaders at higher education institutions are eager to find new funding options for higher education. Senator Schwartz said she would like CCHE to engage the business community in these discussions. Mr. Skaggs addressed a question about how decreases in construction cost inflation will be taken into consideration for FY 2009-10 capital requests and for the projects financed by the October 23 COP.

10:04 AM -- Update on Federal Mineral Lease Revenue and Related Higher Education Certificates of Participation Projects

Ms. Lisa Esgar, Deputy Director, OSPB, and Ms. Mary Wickersham, Director of Initiatives, Office of the State Treasurer, gave an update on the FML revenue and the October 23 COP issuance. Ms. Esgar addressed an earlier question about construction cost inflation assumptions. She said that now that as projects proceed, the higher education institutions will draw down funds as needed for the construction costs. The higher education institutions will have the latitude to draw down the full project amount appropriated. Senator Penry asked whether the committee wants to allow the higher education institutions the discretion to spend the full project balance even if there might be cost savings due to lower-than-projected construction cost inflation. Ms. Wickersham addressed questions about extra money that may be available from construction cost inflation savings.

10:12 AM

Discussion continued about the possible implication of construction cost inflation savings. Senator Schwartz suggested that rather than allow institutions to spend their institutional share last, they should spend state dollars last so any surplus money can be used for other higher education projects. Ms. Wickersham explained that there are only three institutions that contributed institutional match funds. Ms. Esgar referenced page 1 of Attachment A to explain OSPB's projection of available FML revenue for future higher education projects. She said that the OSPB forecast of revenue available from this source is lower than its previous forecasts. She cautioned the committee that this revenue source is volatile and explained that OSPB is not recommending any FY 2009-10 higher education projects from this revenue source because it is concerned that there may not be sufficient revenue. Ms. Esgar continued with an explanation of how OSPB developed a prioritized list of FML projects, and referenced this FML list in Attachment A.

10:25 AM

Ms. Esgar further explained that OSPB's recommendation is to use the FML revenue from Higher Education Maintenance and Reserve Fund to offset the cost of Level 1 controlled maintenance. Ms. Wickersham talked about the two funds created by Senate Bill 08-218 for use for higher education capital projects. Ms. Esgar addressed a question about the use of the Higher Education Maintenance and Reserve Fund.

10:30 AM -- Auraria Higher Education Center -- Emergency Supplemental Request

Mr. Dean Wolf, Executive Vice President for Administration, Auraria Higher Education Center (AHEC), presented a request for an emergency supplemental for the Science Building Addition and Renovation project. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment E). Mr. Wolf said the project is two days ahead of schedule and is staying within budget.
BILL:Auraria Higher Education Center
TIME: 10:32:42 AM
MOVED:Bacon
MOTION:Approve the emergency supplemental request for the Science Building Addition and Renovation project (-$24,743,873, including -$13,443,873 CCF and -$11,300,000 CF). The motion passed on a 5-1 vote. (Attachment E)
SECONDED:
VOTE
McFadyen
No
Penry
Yes
Schwartz
Yes
Sonnenberg
Yes
Bacon
Yes
Riesberg
Yes
Final YES: 5 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

10:34 AM

Mr. Wolf addressed a question about the number of students on the Auraria campus and how future requests will be prioritized by CCHE.

10:35 AM -- Division of Wildlife -- Supplemental Request

Mr. Pat Miks, Acting Chief Financial Officer, Division of Wildlife (DOW), presented a supplemental request to amend House Bill 08-1375 to change the letternote to show a different source of cash funds for the Small Maintenance and Improvement Projects. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment F). Mr. Miks addressed a question about whether the source of funds is often changed for these types of projects.
BILL:Division of Wildlife
TIME: 10:38:30 AM
MOVED:Schwartz
MOTION:Approve the supplemental request to amend House Bill 08-1375 to show that, for this project, $361,000 CF comes from the Wildlife Cash Fund and $200,000 CF comes from the Wildlife Management Public Education Fund. The motion passed on a 3-2-1 vote. (Attachment F)
SECONDED:
VOTE
McFadyen
Yes
Penry
No
Schwartz
Yes
Sonnenberg
No
Bacon
Yes
Riesberg
Excused
Final YES: 3 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS


10:42 AM -- Division of Wildlife -- Real Property Transaction Proposals

Mr. Grady McNeill, Resource Support Manager, DOW, presented two real property transaction proposals for the committee's consideration: 1) Flying Diamond Ranch Perpetual Conservation Easement Donation; and 2) Bar Nothing Ranch Perpetual Conservation Easement Donation. Committee members received a description of the proposals, prepared by Legislative Council Staff (Attachments G and H, respectively).
BILL:Division of Wildlife
TIME: 10:42:54 AM
MOVED:Schwartz
MOTION:Recommend support for the donation of the Flying Diamond Ranch Perpetual Conservation Easement (540 acres). The motion passed on a 5-0-1 vote. (Attachment G)
SECONDED:
VOTE
McFadyen
Yes
Penry
Yes
Schwartz
Yes
Sonnenberg
Yes
Bacon
Yes
Riesberg
Excused
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

10:43 AM

Mr. Grady answered questions about public access and limitations related to energy development on conservation easements. Discussion ensued about surface-use agreements and provisions made by the DOW when negotiating conservation easements.
BILL:Division of Wildlife
TIME: 10:45:44 AM
MOVED:Schwartz
MOTION:Recommend support for the donation of the Bar Nothing Ranch Perpetual Conservation Easement (500 acres). The motion passed on a 5-0-1 vote. (Attachment H)
SECONDED:
VOTE
McFadyen
Yes
Penry
Yes
Schwartz
Yes
Sonnenberg
Yes
Bacon
Yes
Riesberg
Excused
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


10:46 AM

Committee members received a table showing the status of Wildlife Cash Funds for property acquisitions between FY 2005-06 and FY 2009-10, prepared by DOW (Attachment I). Mr. Miks gave an overview of the handout and addressed questions about the source of cash funds used for DOW projects.

10:49 AM -- Department of Corrections -- Six-Month Waiver Request


Mr. Richard Weems, Director, Facility Services, Department of Corrections (DOC), presented a request to waive the six-month encumbrance deadline for the Repair Waste Water Treatment Plant and Water Storage Tank, Fort Lyon Correctional Facility project. Committee members received a description of the request, prepared by Legislative Council Staff (Attachment J).
BILL:Department of Corrections
TIME: 10:53:36 PM
MOVED:Sonnenberg
MOTION:Approve the waiver request for the Repair Waste Water Treatment Plant and Water Storage Tank, Fort Lyon Correctional Facility project ($540,486 CCF). The motion passed on a 4-0-2 vote. (Attachment J)
SECONDED:
VOTE
McFadyen
Yes
Penry
Excused
Schwartz
Yes
Sonnenberg
Yes
Bacon
Yes
Riesberg
Excused
Final YES: 4 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS



10:54 AM -- Department of Personnel and Administration -- Real Property Transaction Proposals

Mr. Scott Madsen, Director, Division of Central Services, Department of Personnel and Administration, and Mr. Mike Karbach, Manager, Real Estate Programs, Office of the State Architect, presented two real property transaction proposals. Mr. Karbach presented a proposal to acquire property in Cripple Creek on behalf of the Department of Revenue, Division of Gaming. Committee members received a summary of the proposal, prepared by Legislative Council Staff (Attachment K).
BILL:Department of Personnel and Administration
TIME: 10:56:58 AM
MOVED:Schwartz
MOTION:Recommend support for the acquisition of 350 West Carr Avenue to serve as the Cripple Creek field office for the Department of Revenue, Division of Gaming, and the Colorado State Patrol. The motion passed on a 5-0-1 vote. (Attachment K)
SECONDED:
VOTE
McFadyen
Yes
Penry
Yes
Schwartz
Yes
Sonnenberg
Yes
Bacon
Yes
Riesberg
Excused
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

11:19 AM

Mr. Madsen presented a request to acquire, through lease-purchase, a property in Pueblo for use by the Department of Personnel and Administration's Integrated Document Solutions operations. Committee members received a summary of the proposal, prepared by Legislative Council Staff (Attachment L). Representative McFadyen agreed to sponsor a bill granting legislative authority for the lease-purchase of the facility.
BILL:Department of Personnel and Administration
TIME: 10:59:15 AM
MOVED:McFadyen
MOTION:Recommend support for the acquisition, through lease-purchase, of a building at 2 Jetway Court in Pueblo for use by the department's Integrated Document Solutions operations. The motion passed on a 5-0-1 vote. (Attachment L)
SECONDED:
VOTE
McFadyen
Yes
Penry
Yes
Schwartz
Yes
Sonnenberg
Yes
Bacon
Yes
Riesberg
Excused
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS






11:01 AM -- Update on Adams County Youth Services Center Replacement


Mr. John Gomez, Director, Division of Youth Corrections (DYC) and Mr. Bradford Membel, Director, Division of Facilities Management, Department of Human Services (DHS), gave an update on the Adams County Youth Services Center replacement. The committee received a letter about the facility condition index of buildings within the DHS (Attachment M), and a summary of the proposed Northeast Region Youth Services Center (Attachment N), both prepared by DHS. Mr. Gomez walked the committee through Attachment N and gave an overview of the detention and commitment capabilities of DYC facilities statewide. Mr. Gomez explained that 75 percent of the DYC population is placed in a facility outside of the juvenile's home region because of space limitations. Mr. Gomez addressed a question about DYC cooperation with juvenile assessment centers. He gave an overview of the five-year projected growth of the DYC population in the northeast region and explained that this is the only region in the state where the juvenile population is continuing to grow.

11:10 AM

Mr. Gomez continued with a description of the existing Adams County DYC facility, noting that it is the smallest facility in the state and is functionally obsolete. He said the facility serves the 17th judicial district. Mr. Gomez said a site in Adams County has been selected for the construction of a new facility. He reviewed the purchase agreement between the developer that owns the site, Adams County, the city of Brighton, and the department. He explained that this agreement has two state funding deadlines. The first deadline for state funds is December 31, 2013, to develop the site infrastructure. The second deadline for state funds is December 31, 2015, for construction costs. Mr. Gomez further explained that if the project is not funded, then land will revert back to county and the developer will purchase the land back from county.

11:20 AM

Mr. Gomez addressed questions about the funding deadlines and when the project will be completed. Mr. Gomez explained that if the current facility were to fail before the completion of a new facility, then the population would have to be absorbed by other facilities in the state. Mr. Gomez addressed a question about possible alternatives to building a new facility. He explained that law enforcement officials often have to drive to other districts because the existing facility in Adams County only houses a committed population; (the proposed facility will have both detention and commitment beds). Discussion continued about the purchase agreement for the new site. Mr. Gomez answered questions about how the new site will be accessed and what will happen to the existing facility after a new facility is completed. He said ownership of the current facility and property will revert back to Adams County and the county plans to demolish the existing facility.

11:29 AM

Discussion continued about possible alternatives to building a new facility, including private-sector options. Mr. Gomez said it is difficult to accommodate detention needs for the youth population in the private sector. He said there are presently no private providers for the juvenile system that own and operate a physically secure environment in the state. Mr. Membel addressed the contents of Attachment M. Mr. Gomez said that the current FY 2009-10 request for a Northeast Region Youth Services Center is for $4.0 million for design services and the total request amount for all years is $45.8 million.

11:37 AM

Representative McFadyen expressed support for the project and questioned whether the state could save any costs on LEED certification. Mr. Larry Friedberg, State Architect, Department of Personnel and Administration, addressed Representative McFadyen's question about the cost of LEED certification and reviewed the provisions of SB 07-051 and the responsibilities of his office. He said an institution can budget up to 5 percent of a project's total construction costs to meet the requirements of LEED certification. He added that LEED is a national standard and that it is required for any facility that receives state funds. Mr. Friedberg said that the 5 percent is for the project's design, materials, construction, and costs of certification, and that the costs of certification are a small fraction of the total construction costs. Mr. Gomez reiterated the need for a new facility and highlighted key points of his presentation.

11:46 AM -- Department of Human Services -- Six-Month Waiver Request


Ms. Leslie Bulicz, Programs Administrator, Division of Child Care, presented a request to waive the six-month encumbrance deadline for the Child Care Automated Tracking System (CHATS) Replacement project. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment O).
BILL:Department of Human Services
TIME: 11:47:39 AM
MOVED:Bacon
MOTION:Approve the waiver request for the Child Care Automated Tracking System Replacement project ($14,747,783 FF). The motion passed on a 5-0-1 vote. (Attachment O)
SECONDED:
VOTE
McFadyen
Yes
Penry
Excused
Schwartz
Yes
Sonnenberg
Yes
Bacon
Yes
Riesberg
Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

11:48 AM

The committee recessed for lunch.

01:09 PM -- Division of Parks and Outdoor Recreation -- Real Property Transaction Proposals

The committee reconvened. Mr. Dean Winstanley, Director, and Mr. Greg Monroe, Real Estate Coordinator, both of the Division of Parks and Outdoor Recreation (Parks), presented two real property transaction proposals. Mr. Winstanley summarized the proposal for the Smith and Fuoco / City of Fruita Property Exchange. Committee members received a description of the proposal, prepared by Legislative Council Staff (Attachment P). Mr. Monroe addressed a question about appropriation spending limits for Great Outdoor Colorado (GOCO) cash funds. Mr. Winstanley continued with an explanation of how GOCO funds are transferred to and from the division. Discussion ensued.
BILL:Division of Parks and Outdoor Recreation
TIME: 01:19:10 PM
MOVED:Bacon
MOTION:Recommend support for the exchange of the 15 Road Refinery property for the Smith property (3 acres), Fuoco property (5.5 acres), and $134,000 from the city of Fruita. The motion passed unanimously. (Attachment P)
SECONDED:
VOTE
McFadyen
Yes
Penry
Yes
Schwartz
Yes
Sonnenberg
Yes
Bacon
Yes
Riesberg
Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:19 PM

Mr. Winstanley summarized the second proposal for the Lone Mesa State Park / Bayless Ranches LLC Property Exchange. Committee members received a description of the proposal, prepared by Legislative Council Staff (Attachment Q). Mr. Monroe addressed a question about when the State Parks Board will meet to consider these requests. Mr. Winstanley answered a question about when the new park proposed for the property will be developed and open to the public.
BILL:Division of Parks and Outdoor Recreation
TIME: 01:26:27 PM
MOVED:Schwartz
MOTION:Recommend support for exchange of 2,033 acres of Lone Mesa State Park land for 2,033 acres of Bayless Ranches LLC land. The motion passed unanimously. (Attachment Q)
SECONDED:
VOTE
McFadyen
Yes
Penry
Yes
Schwartz
Yes
Sonnenberg
Yes
Bacon
Yes
Riesberg
Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS






01:27 PM -- Colorado State University -- Six-Month Waiver Requests

Mr. Brian Chase, Director, Facilities Management, and Ms. Michelle Carroll, Project Approval and Submittal Specialist, Facilities Management, both of Colorado State University (CSU), presented two requests to waive the six-month encumbrance deadline. The first request is for the Veterinary Teaching Hospital -- PET/CT Scanner Purchase and Installation project and the second request is for the Veterinary Teaching Hospital -- Digital Imaging Equipment Purchases project. Committee members received descriptions of the requests, prepared by Legislative Council Staff (Attachments R and S, respectively).
BILL:Colorado State University
TIME: 01:29:09 PM
MOVED:Bacon
MOTION:Approve the wavier request for the Veterinary Teaching hospital -- PET/CT Scanner Purchase and Installation ($1,400,000 FF). The motion passed unanimously. (Attachment R)
SECONDED:
VOTE
McFadyen
Yes
Penry
Yes
Schwartz
Yes
Sonnenberg
Yes
Bacon
Yes
Riesberg
Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS
BILL:Colorado State University
TIME: 01:30:21 PM
MOVED:Bacon
MOTION:Approve the waiver request for the Veterinary Teaching Hospital -- Digital Imaging Equipment Purchases project ($659,814 CF from Western Interstate Commission for Higher Education funds). The motion passed unanimously. (Attachment S)
SECONDED:
VOTE
McFadyen
Yes
Penry
Yes
Schwartz
Yes
Sonnenberg
Yes
Bacon
Yes
Riesberg
Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:31 PM

Mr. Chase informed the committee that the university's Diagnostic Medicine Center project will be completed in the spring of 2009 and ready for occupation in May 2009.







01:32 PM -- Potential 2009 Capital Development Committee Legislation

Ms. Jennifer Moe, Legislative Council Staff, gave an overview of potential legislation that could be sponsored by the Capital Development Committee (CDC) in 2009. Committee members received a memorandum summarizing several issues that could be addressed with legislation during the 2009 session, prepared by Legislative Council Staff (Attachment T). Ms. Moe explained that the first item listed in Attachment T is the scheduled repeal of the CDC on July 1, 2009. Mr. Jeremiah Barry, Office of Legislative Legal Services (OLLS), responded to a question about whether the Department of Regulatory Agencies has any role in the repeal of the CDC.
BILL:Potential 2009 Capital Development Legislation
TIME: 01:36:03 PM
MOVED:Bacon
MOTION:Draft legislation extending the scheduled repeal of the Capital Development Committee. The motion passed unanimously.
SECONDED:
VOTE
McFadyen
Yes
Penry
Yes
Schwartz
Yes
Sonnenberg
Yes
Bacon
Yes
Riesberg
Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:37 PM

Ms. Moe continued with an explanation of the second item listed in Attachment T, concerning review thresholds for cash-funded requests from state departments versus higher education institutions. Discussion ensued about whether there is a need to raise the state department review threshold for cash-funded requests. Several committee members expressed concern about raising the threshold. Ms. Moe continued with the third item listed in Attachment T, concerning the exemption of certain cash-funded capital projects from the six-month encumbrance deadline. Discussion ensued. The chair directed OLLS to draft legislation related to this issue. Ms. Moe continued with the fourth item listed in Attachment T, concerning the allocation of 1 percent of capital construction costs for art in public places for state-funded versus cash-funded projects, and project costs to be considered for the 1 percent calculation for art in public places. Discussion ensued. Several committee members expressed their strong support for the 1 percent for art in public places program. Discussion continued.

01:50 PM

Discussion about 1 percent for art in public places continued, and eventually the issue was tabled for the time being. Ms. Moe continued with the fifth and sixth items listed in Attachment T, concerning information provided to the CDC from DOW and Parks regarding real property transaction proposals and the order in which the CDC is involved with reviews of real property transaction proposals submitted by both. Discussion ensued.

02:00 PM

Discussion continued about the expectations for reports provided by DOW and Parks for real property transaction proposals. The committee requested feedback from CDC staff regarding materials provided by the divisions and whether a statutory change is required. Ms. Moe suggested a memorandum of understanding regarding expectations for materials provided by DOW and Parks to the CDC would be appropriate. Discussion turned to the whether the committee would like to sponsor legislation concerning the order in which the CDC is involved with reviews of real property transaction proposals. The chair directed OLLS to draft legislation.



02:16 PM -- Overview of FY 2009-10 Capital Construction and Controlled Maintenance Requests and Projected Revenue

Committee members received a memorandum providing an overview of FY 2009-10 capital construction and controlled maintenance requests and projected revenue, prepared by Legislative Council Staff (Attachment U). Ms. Moe gave an overview of the revenue projected to be available for FY 2009-10 projects. She explained how the projected revenue was calculated and answered questions from the committee. As of September 20, 2009, there is projected to be about $53.9 million available for FY 2009-10 capital construction projects.

02:23 PM

Ms. Kori Donaldson, Legislative Council Staff, gave an overview of the FY 2009-10 capital requests. She explained that of the 88 state-funded projects requested for FY 2009-10, 11 projects are continuation projects funded in House Bill 08-1375 and frozen by the Governor on September 25, 2008, and 5 projects were authorized by House Joint Resolution 08-1042, but not included n the FML COP issued on October 23, 2008. Ms. Donaldson walked the committee through Table 1 on page 2 of Attachment U.

02:31 PM -- Colorado School of Mines Supplemental Request

Ms. Moe explained that the Colorado School of Mines submitted a supplemental request that will be considered by the CDC in January 2009. The request was submitted as an emergency supplemental request, but it was determined that it did not need spending authority right away.

02:33 PM -- Metropolitan State College of Denver, Hotel Learning Center

Committee members received a letter from Metropolitan State College of Denver (Metro) concerning the release of a request for proposal for a new Hotel Learning Center project (Attachment V). Mr. Sean Nesbitt, Facilities Planner, Metro, explained why the college is not yet requesting spending authority for the project, and the circumstances under which the college is issuing the request for proposal. Mr. Nesbitt addressed a question about how this project relates to other programs on the Auraria Higher Education Center campus. Mr. Nesbitt provided further details of the proposed project. He said that the program plan has been approved by CCHE. Mr. Nesbitt answered additional questions about fundraising for the project and how the Auraria campus will benefit from the project.

02:40 PM

Mr. Nesbitt continued his presentation about the Hotel Learning Center project and answered additional questions about fundraising for the project. He explained that this is Metro's first solo project and that fundraising efforts may be easier to move forward for a single institution and not the entire Auraria campus. Discussion continued about fundraising, parking at a new facility, and how the Auraria campus would benefit from the project.

02:45 PM -- Future Meeting Dates

Representative Riesberg reminded the committee about the next economic forecast on December 19. The committee decided to schedule its next meeting on the same day, 15 minutes following the presentation of the economic forecast.

02:49 PM

The committee adjourned.
BILL:DOC -- Request to Waive Six-Month Rule
TIME: 04:40:39 PM
MOVED:McFadyen
MOTION:refer to appropriations
SECONDED:Schwartz
VOTE
McFadyen
No
Penry
Excused
Schwartz
No
Sonnenberg
Absent
Bacon
No
Riesberg
No
Not Final YES: 0 NO: 11 EXC: 1 ABS: 1 FINAL ACTION: FAIL