Joint Committee Committee on Capital Development (12/02/2010)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	12/02/2010	ATTENDANCE

Time:	09:05 AM to 02:57 PM	Brown	X
		Renfroe	*
Place:	SCR 356	Schwartz	X
		Vigil	X
This Meeting was called to order by		Bacon	X
	Representative Sonnenberg	Sonnenberg	X

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

Bills Addressed:		Action Taken:
Department of Corrections FY 2011-12 Capital Requests Department of Public Safety FY 2011-12 Capital Requests Department of Revenue FY 2011-12 Capital Request Department of Labor and Employment FY 2011-12 Capital Request Dept. of Public Health and Environment FY 2011-12 Capital Requests Department of Human Services FY 2011-12 Capital Requests Cumbres and Toltec Scenic Railroad FY 2011-12 Capital Request Dept. of Military and Veterans Affairs FY 2011-12 Capital Requests Division of Wildlife FY 2011-12 Capital Requests Division of Parks FY 2011-12 Capital Requests		Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only 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

09:05 AM -- Department of Corrections FY 2011-12 Capital Requests

The committee was called to order. A quorum was present. Mr. Karl Spiecker, Director of Finance and Administration, and Mr. Steve Hager, Warden, Youthful Offender System, both of the Department of Corrections (DOC), presented the DOC's FY 2011-12 capital construction requests, along with the department's five-year projection of capital need. Mr. Spiecker provided an overview of the department's duties, and discussed growth in the prison population in recent years, which is driving an increase in capital construction needs. Mr. Spiecker then provided an update on the construction of Colorado State Penitentiary II, and discussed recent programs established within the prison system. Mr. Spiecker also noted efforts taken by the department to address an inmate escape that took place in August 2010.

09:15 AM

Mr. Hager explained the reason for the creation of the department's Youthful Offender System, and discussed efforts undertaken to rehabilitate youthful offenders. Mr. Hager then discussed the department's Multi-Use Support Building capital construction project in Pueblo, and the potential benefits of the project. Mr. Hager responded to questions regarding the history of the programs to be relocated to the Multi-Use Support Building. Mr. Hager responded to further questions regarding the male/female ratio within the Youthful Offender System, and the punitive aspects of the programs within the Youthful Offender System.

09:26 AM

Mr. Hager responded to questions regarding incentive-based programs in the Youthful Offender System. Mr. Spiecker provided background on the creation of the Corrections Expansion Reserve Fund (CERF), and explained how moneys accrue to the CERF. Mr. Spiecker then tied the DOC's FY 2011-12 capital construction requests to the source of funding for the projects, including money available in the CERF. Discussion ensued regarding the potential diversion of CERF moneys away from their intended purposes, as expressed in CERF-associated legislation.

09:35 AM -- Department of Public Safety FY 2011-12 Capital Requests

Chief James Wolfinbarger, and Captain Matt Secor, Aircraft Division, and Mr. Bobby Juchem, all of the Colorado State Patrol within the Department of Public Safety, presented the department's FY 2011-12 capital construction request and five-year projection of cash need. Committee members received copies of the Colorado State Patrol's Strategic Plan for 2011-2015 (a copy of the plan is on file with Legislative Council Staff). Chief Wolfinbarger provided background on the need to patrol the roadways through the air, and discussed the department's Turbo 182 Aircraft capital construction request for FY 2011-12. Captain Secor discussed the work performed by the Aircraft Division, and detailed the need to replace the division's existing aircraft fleet. Captain Secor responded to questions regarding the reasons that the communications systems have not been previously replaced within the existing aircraft fleet. Chief Wolfinbarger provided further input on the connection between communications upgrades and replacing the aircraft fleet, and detailed other features that do not exist in the division's aircraft fleet but are standard in more modern aircraft.

09:47 AM

Captain Secor responded to questions regarding the utilization rate of the Aircraft Division's fleet each year, and the ability of the division to replace existing aircraft with other used aircraft. Discussion ensued regarding alternatives to purchasing new aircraft. Discussion followed regarding the impact of the use of aircraft for patrolling purposes on public safety, and the importance of the department's aircraft program.

10:01 AM

Discussion ensued regarding the diversity of missions that are performed by the department's aircraft program. Chief Wolfinbarger responded to questions regarding potential uses of Highway Users Tax Fund "off-the-top" moneys requested for the Turbo 182 Aircraft project if the project is not funded, and the appropriateness of using these moneys to purchase an aircraft, which will be used for missions not associated with highway supervision.

10:09 AM -- Department of Revenue FY 2011-12 Capital Request

Ms. Roxy Huber, Executive Director, and Mr. John Vecchiarelli, Senior Director of the Tax Division, Department of Revenue, presented the department's FY 2011-12 capital construction request and five-year projection of cash need. Ms. Huber provided background on the department's Colorado Integrated Tax Architecture (CITA) capital project, and also provided an update on the project's status. Ms. Huber discussed the benefits to be derived from the CITA system. Ms. Huber responded to questions regarding the applicability of the CITA system to taxes collected at and on behalf of the county level. Mr. Vecchiarelli provided input on the impact of the CITA upgrade on counties, and responded to questions regarding the impact of the CITA upgrade on the problem of properly attributing automobile-related taxes based on geography.

10:19 AM

Mr. Vecchiarelli responded to questions regarding the CITA system's life cycle. Discussion ensued regarding the deficiencies in the system that preceded the CITA system.

10:23 AM -- Department of Labor and Employment FY 2011-12 Capital Request

Mr. Wayne Peel, Chief Financial Officer, and Mr. Mahesh Albuquerque, Director, Division of Oil and Public Safety, Department of Labor and Employment, presented the department's FY 2011-12 capital construction request for the Consolidated Enterprise System project. Mr. Albuquerque presented background on the project, and provided a status update. Mr. Peel noted that the project has no impact on the state's General Fund.

10:28 AM -- Department of Public Health and Environment FY 2011-12 Capital Construction Requests

Mr. Dan Scheppers, Remediation Program Manager, Hazardous Materials and Waste Management Division, Department of Public Health and Environment, presented the department's FY 2011-12 capital construction requests. Mr. Scheppers first discussed the department's Natural Resources Damage Restoration project, and then provided details on the Brownfields Remediation and Superfund Sites Cleanup projects. Mr. Scheppers responded to questions regarding the type of technology to be employed in a water treatment plant to be constructed on Clear Creek in association with the Superfund Sites Cleanup project. Discussion ensued regarding operation costs at Superfund sites to be borne by the state after the U.S. Environmental Protection Agency sunsets its 10-year funding obligations. Mr. Scheppers responded to questions regarding the status of the Summitville Mine Superfund Site remediation project. Mr. Scheppers responded to further questions regarding the solvency of the Hazardous Substance Response Fund, and the future funding of state Superfund-related obligations.

10:42 AM

Discussion ensued regarding the status of various projects undertaken under the federal Superfund program.

10:43 AM

The committee recessed.

10:51 AM -- Department of Human Services FY 2011-12 Capital Requests

Mr. Reginald Jefferson, Deputy Executive Director, Department of Human Services (DHS), provided opening remarks in presenting the department's FY 2011-12 capital construction requests, along with the department's five-year projection of cash need. Committee members received a binder of information pertaining to the presentation, prepared by DHS staff (a copy of the binder is on file with Legislative Council Staff). Ms. Viki Manley, Division Director for State and Veterans Nursing Homes, provided an overview of the Building Renovations, Rifle State and Veterans Nursing Home request. Mr. Kevin Ross, Manager of the Division of Facilities Management within DHS, provided details on upgrades to be performed under the Rifle project. Ms. Manley responded to questions regarding the potential local economic impact of the Rifle project. Ms. Manley next discussed the domiciliary care project associated with the Fitzsimons State Veterans Nursing Home, which is an out-year request.

11:01 AM

Mr. John Bernhart, Director for the Division of Child Support within the DHS, presented the division's request to waive the six-month encumbrance deadline for the Automated Child Support Enforcement System (ACSES) Migration and Modernization. Committee members received a written description of the waiver request, prepared by Legislative Council Staff (Attachment A).


BILL:	Department of Human Services ACSES Migration and Modernization Waiver Request
TIME:	11:03:34 AM
MOVED:	Bacon
MOTION:	Approve the waiver request for the FY 2010-11 appropriation to the Automated Child Support Enforcement System (ACSES) Migration and Modernization project ($2,677,500 CF and $5,197,500 FF). The motion passed on a 6-0 vote.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	Yes
	Schwartz	Yes
	Vigil	Yes
	Bacon	Yes
	Sonnenberg	Yes

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

11:04 AM

Mr. Jefferson was joined by Mr. Ken Cole, Director of the Mental Health Institutes, and Mr. Brad Membel, Division of Facilities Management Director for the DHS, to discuss the department's five-year projection of capital construction need. Mr. Cole provided an overview of the mental health institutes system within DHS, and discussed the DHS Suicide Risk Mitigation project, providing an update on the overall project and detailing work yet to be done. Mr. Cole then discussed other future capital construction needs at the mental health institutes. Mr. Cole responded to questions regarding steps being taken to avoid the risk of suicide prior to the completion of the Suicide Risk Mitigation project, and the efficacy of work performed on the project to date in preventing suicide.

11:14 AM

Mr. Jefferson provided an overview of future capital construction action planned for the regional centers, which serve populations with developmental disabilities. Mr. Membel provided an update on the Replace Adams County Youth Correctional Facility project undertaken by the Division of Youth Services. Mr. Membel then discussed overall infrastructure and controlled maintenance needs within the DHS.

11:20 AM -- Cumbres and Toltec Scenic Railroad FY 2011-12 Capital Request

Mr. Lon Carpenter, Vice Chairman, Cumbres and Toltec Scenic Railroad Commission, and Mr. Leo Schmitz, Executive Director of the railroad, presented the railroad's FY 2011-12 capital construction requests. Committee members received a time line detailing funding needs associated with repair of the Lobato Trestle, prepared by the railroad (Attachment B). Mr. Carpenter provided an overview of the railroad, its operations, and how it came under the purview of the state. Mr. Carpenter also briefed the committee on the recent fire on the Lobato Trestle, and its impact on the railroad's operations. Mr. Schmitz responded to questions regarding the fare structure for riding the railroad. Discussion ensued regarding flexibility for the railroad to divert money to repairing the Lobato Trestle from an existing project, if needed. Mr. Schmitz responded to questions regarding the level of insurance coverage for the railroad's assets.

11:30 AM

Discussion ensued regarding the importance of the Cumbres and Toltec Scenic Railroad to the economic vitality of its host region. Mr. Schmitz responded to questions regarding the employment status of those who work with the railroad, and the source of funding for professional services. Discussion followed regarding the source of the fire on the Lobato Trestle, and New Mexico's contribution to the trestle replacement. Committee members received a written description of a request to waive the six-month encumbrance deadline for a controlled maintenance project to upgrade systems in the railroad's Chama Depot, prepared by Legislative Council Staff (Attachment C).


BILL:	Cumbres and Toltec Scenic Railroad Upgrade HVAC and Electrical Systems, Chama Depot Waiver Request
TIME:	11:34:58 AM
MOVED:	Vigil
MOTION:	Approve the waiver request for the FY 2010-11 appropriation to the Upgrade HVAC and Electrical Systems, Chama Depot controlled maintenance project ($100,600 CF). The motion passed on a 6-0 vote.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	Yes
	Schwartz	Yes
	Vigil	Yes
	Bacon	Yes
	Sonnenberg	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:35 AM

Mr. Carpenter recognized the contributions of the Colorado Historical Society to the railroad. The committee recessed.

01:00 PM -- Department of Military and Veterans Affairs FY 2011-12 Capital Construction Requests

The committee returned to order. Major General H. Michael Edwards, Adjutant General, Brigadier General Dana Capozella, Assistant Adjutant General with the Colorado Army National Guard, and Mr. Mickey Hunt, Executive Director, Department of Military and Veterans Affairs (DMVA), presented the department's FY 2011-12 capital construction requests, along with the department's five-year projection of capital need. Committee members received a packet of slides associated with the presentation, prepared by the DMVA (Attachment D). General Edwards provided an overview of the functions that fall under the purview of the department. General Capozella discussed the components of the National Guard, and the new battalion awarded to the National Guard, which is driving the department's readiness center projects. General Capozella provided an overview of the five readiness centers, two of which are already under construction.

01:13 PM

General Edwards discussed the benefits that will accrue to communities that will host the new readiness centers, explained some of the features at the readiness centers, and discussed the funding requests associated with the Alamosa and Windsor projects. General Edwards then mentioned the Great Western Industrial Park Fee Title Acquisition request. Committee members received a memorandum regarding this request, prepared by Legislative Council Staff (Attachment E). General Edwards responded to questions regarding the change of terminology from "armory" to "readiness center." Discussion ensued regarding the source of funds for the property transaction. Discussion followed regarding the status of the land transaction for the Alamosa Readiness Center project.


BILL:	Department of Military and Veterans Affairs Great Western Industrial Park Fee Title Acquisition
TIME:	01:18:15 PM
MOVED:	Bacon
MOTION:	Recommend to the Adjutant General support for fee title acquisition of a 17-acre site in the Great Western Industrial Park in Windsor to construct a new readiness center. The motion passed on a 5-0-1 vote.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	Yes
	Schwartz	Yes
	Vigil	Excused
	Bacon	Yes
	Sonnenberg	Yes

Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

01:22 PM -- Department of Natural Resources, Division of Wildlife FY 2011-12 Capital Construction Requests

Ms. Susan Hunt, Chief Financial Officer, Division of Wildlife within the Department of Natural Resources, presented the division's FY 2011-12 capital construction requests, along with three real property transactions. Ms. Hunt first provided an overview of the division, its mission, and its duties. Ms. Hunt also discussed the economic impact of the resources and recreational opportunities supported by the division's activities. Ms. Hunt next provided an overview of the division's five FY 2011-12 capital construction requests. In addition, Ms. Hunt provided details regarding the source of cash funds for funding these projects.

01:32 PM

Mr. Ed Frazar, Chief Engineer for the Division of Wildlife, presented the department's three remaining continuation projects. Ms. Hunt then presented the Gunnison Regional/Area Office and Hunter Education Facility capital request, and discussed the need for the project. Mr. Tony Gurzick, the division's Assistant Regional Manager for the Southwest Region, weighed in on the importance of the Gunnison project.

01:44 PM

Mr. Grady McNeill, Resource Support Section Manager for the division, presented the first of three real property transaction proposals, titled the Koziel/Carbondale Public Access and Conservation Easements. Committee members received a written description of the transaction, assembled by Legislative Council Staff (Attachment F). Committee members also received a packet of correspondence from state legislators and county commissioners expressing support for the transaction (Attachment G). Mr. McNeill responded to questions regarding the recipient of the proceeds in the easement transactions, and the propriety of forwarding Great Outdoors Colorado (GOCO) moneys from the state to another public entity. Discussion ensued regarding the nature of the interest being purchased under the request.

01:55 PM

Discussion continued regarding the arrangement between separate levels of government in acquiring varying levels of property interests in the Koziel/Carbondale property. Mr. McNeill discussed the economic impact to the community of acquiring the property. Mr. McNeill responded to questions regarding public access boat launches in the region. Discussion returned to the property interests being acquired by the various parties to the transaction.


BILL:	Division of Wildlife Koziel/Carbondale Property Transaction
TIME:	02:00:36 PM
MOVED:	Schwartz
MOTION:	Recommend support for the acquisition of the Koziel/Carbondale Public Access and Conservation Easements ($950,000 CF for 7.5 acres). The motion passed on a 5-1 vote.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	No
	Schwartz	Yes
	Vigil	Yes
	Bacon	Yes
	Sonnenberg	Yes

Final YES: 5 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:01 PM

Mr. McNeill presented the Tarryall Creek Ranch and Ranch 2 Public Access and Conservation Easements real property transaction request. Committee members received a written description of the transaction, assembled by Legislative Council Staff (Attachment H). Committee members also received a packet of letters from state legislators and county commissioners expressing support for the transaction (Attachment I). Mr. McNeill provided data pertaining to the wildlife herd objectives for the herd units associated with the property. Mr. Ed Perkins, Real Estate Specialist for the division, responded to questions regarding the nature of a conservation easement already held on a portion of the Tarryall property. Mr. Perkins and Mr. McNeill responded to further questions regarding the present and future use of the property. Mr. Reid DeWalt, the Area Wildlife Manager for Area 1, which includes Park County, provided further input regarding this question, and responded to questions regarding wildlife herd damage in the area. Discussion ensued regarding the purchase price of the property as compared to other such properties in the area.


BILL:	Division of Wildlife Tarryall Creek Ranch and Ranch 2 Property Transaction
TIME:	02:10:15 PM
MOVED:	Bacon
MOTION:	Recommend support for the acquisition of the Tarryall Creek Ranch and Ranch 2 Public Access and Conservation Easements ($2,140,000 CF for 1,640 acres). The motion passed on a 5-1 vote.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	No
	Schwartz	Yes
	Vigil	Yes
	Bacon	Yes
	Sonnenberg	Yes

Final YES: 5 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:12 PM

Mr. Grady McNeill presented the LK Ranch LK and Grady Ranch Public Access and Conservation Easements property transaction proposal. Committee members received a written description of the request, assembled by Legislative Council Staff (Attachment J). Mr. McNeill also presented the wildlife herd objectives for the wildlife unit associated with the property. Mr. Doug Robinson, Real Estate Specialist for the division, responded to questions regarding building envelopes allowed as part of the property transactions. Discussion ensued regarding the ramifications of the transaction with regard to the property tax base. Mr. McNeill and Mr. Robinson provided details regarding the appraised value of the constituent properties subject to the proposal. Mr. Robinson responded to questions regarding potential mineral and natural resource extraction on the property. Mr. Robinson responded to further questions regarding the current and future use of the property, and the recent ownership history of the property.

02:23 PM

Discussion returned to natural resource extraction ramifications on the property. Discussion ensued regarding the potential for having a dialogue between the committee and the division pertaining to the division's appraisal process when obtaining an interest in real property. Discussion followed regarding the ability of outside parties to inspect appraisal documents associated with division real property transactions. Discussion returned to the topic of mineral development on division-acquired properties.


BILL:	Division of Wildlife LK Ranch LK Property Transaction
TIME:	02:28:56 PM
MOVED:	Bacon
MOTION:	Recommend support for the acquisition of the LK Ranch LK and Grady Ranch Public Access and Conservation Easements ($5,321,968 CF for 10,283 acres). The motion passed on a 5-1 vote.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	No
	Schwartz	Yes
	Vigil	Yes
	Bacon	Yes
	Sonnenberg	Yes

Final YES: 5 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:30 PM -- Department of Natural Resources, Division of Parks and Outdoor Recreation FY 2011-12 Capital Requests

Mr. Dean Winstanley, Director of State Parks, Mr. Steve Cassin, Chief Financial Officer, and Mr. Eric Scholz, Capital Program Manager, all of the Division of Parks and Outdoor Recreation within the Department of Natural Resources, presented the division's FY 2011-12 capital construction requests, along with one real property transaction. Mr. Winstanley provided an overview of the duties and holdings of the division, and explained why the division requires capital assets to perform its functions. Mr. Winstanley also discussed recent efforts to improve the division's programs. Mr. Winstanley next discussed the source of funding for the division's capital projects, and provided an overview of the division's three FY 2011-12 capital construction requests.

02:40 PM

Mr. Winstanley continued to brief the committee on the division's FY 2011-12 capital construction requests. Mr. Winstanley responded to questions regarding a potential land swap with the federal government to make Staunton State Park fully accessible to the public. Mr. Winstanley responded to further questions regarding the source of funding for purchasing water resources to maintain rafting opportunities on the Arkansas River. Mr. Winstanley next presented the Roxborough Park Ranch Fee Title Acquisition property transaction proposal. Committee members received a written description of the proposal, assembled by Legislative Council Staff (Attachment K). Committee members also received a letter in support of the transaction from Senator Mark Scheffel (Attachment L). Mr. Brian Ocepek, Real Estate Manager for the division, joined Mr. Winstanley to present the proposal.

02:52 PM

Mr. Winstanley continued providing an overview of the Roxborough Park Ranch property transaction proposal. Mr. Ocepek responded to questions regarding the appraisal process associated with the transaction.


BILL:	Division of Parks FY 2011-12 Capital Requests
TIME:	02:56:14 PM
MOVED:	Bacon
MOTION:	Recommend support for the purchase of the Roxborough Ranch Fee Title Acquisition ($583,100 CF for 58.31 acres). The motion passed on a 6-0 vote.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	Yes
	Schwartz	Yes
	Vigil	Yes
	Bacon	Yes
	Sonnenberg	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:57 PM

The committee adjourned.