Joint Committee Committee on Capital Development (12/03/2010)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	12/03/2010	ATTENDANCE

Time:	08:33 AM to 11:30 AM	Brown	X
		Renfroe	*
Place:	SCR 356	Schwartz	*
		Vigil	X
This Meeting was called to order by		Bacon	X
	Representative Sonnenberg	Sonnenberg	X

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

Bills Addressed:		Action Taken:
Colorado Historical Society FY 2011-12 Requests Discussion of Capitol Dome Sponsorship Policy Office of the State Architect Annual Report & DPA 11-12 Request		Committee Discussion and/or Witness Testimony Only Pass Committee Discussion and/or Witness Testimony Only

08:33 AM -- Colorado Historical Society FY 2011-12 Capital Requests

The committee was called to order. A quorum was present. Mr. Ed Nichols, President, Colorado Historical Society (CHS), Mr. Steve Turner, Vice President, State Historical Fund, and Mr. Joseph Bell, Vice President of Finance, Facilities and Regional Museums, CHS, presented the organization's FY 2011-12 capital requests. Mr. Nichols made some introductory remarks and provided an overview of the organization. He next outlined each of the organization's four FY 2011-12 capital requests.

08:42 AM

Mr. Turner gave a report about the activities of the State Historical Fund. Committee members received the State Historical Fund FY 2009-10 Annual Report (Attachment A). Mr. Turner outlined some of the projects that received grants from the fund during the most recent round of grant awards. He addressed questions and comments from the committee regarding grant awards for projects in rural Colorado. Discussion turned to increases in services statewide resulting from the construction of a new state museum.

08:49 AM -- Discussion of Capitol Dome Sponsorship Policy

Representative Sonnenberg reminded the committee that during its October 25, 2010, meeting it raised some concerns about the Capitol Dome Sponsorship Policy for the Share in the Care Colorado fund-raising campaign for the State Capitol dome restoration project. Ms. Deborah Haskins, Office of Legislative Legal Services (OLLS), came to the table to summarize suggested changes to the Capitol Dome Sponsorship Policy. Committee members received a revised Capitol Dome Sponsorship Policy and a memorandum discussing how language about political activity in the Capitol Dome Sponsorship Policy can be interpreted and applied to individual sponsors, prepared by OLLS (Attachments B and C). Ms. Haskins walked the committee through Attachments B and C and explained her recommendations regarding how to clarify the ambiguity surrounding the sponsorship policy. Discussion continued on this topic.

09:02 AM

Discussion turned to whether hard liquor should be prohibited by the sponsorship policy and how "hard liquor" should be defined. Mr. Bo Pogue, Legislative Council Staff, briefly outlined the language in statute defining various types of alcohol. The committee members continued to express their opinions of whether advertisements for certain types of alcohol should be restricted by the sponsorship policy. Ms. Christine Staberg, Capstone Group, LLC, came to the table as a representative of Colorado Preservation, Inc. (CPI) to address concerns about the sponsorship policy and how it applies to various potential advertisers.

09:12 AM

Ms. Staberg clarified that there will not be any advertising on the scaffolding surrounding the State Capitol dome during the renovation. She also explained that the sponsorship policy is intended, in part, to give the committee comfort about the types of fund-raising sponsors that will be sought by CPI. The chair suggested that "Adult Entertainment" be struck from the restricted category in the sponsorship policy (Attachment B, page 2) because elsewhere the policy limits advertisements that are "offensive, obscene, or pornographic as defined by prevailing community standards." Discussion turned to whether advertisements for medical marijuana are prohibited by the policy.

09:21 AM

Discussion turned to whether or not a gun manufacturer could be a sponsor of the fund-raising campaign and whether advertisements for guns or ammunition are prohibited by the policy. Prior to the vote, discussion continued about whether "Hard Liquor" and "Adult Entertainment" should be removed from the list of restricted sponsors.


BILL:	Capitol Dome Sponsorship Policy
TIME:	09:23:31 AM
MOVED:	Brown
MOTION:	Adopt suggested changes to Capitol Dome Sponsorship Policy as reflected in Attachment B, as amended. The motion passed on a vote of 5-1.
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


BILL:	Capitol Dome Sponsorship Policy
TIME:	09:25:56 AM
MOVED:	Schwartz
MOTION:	Amend motion to adopt suggested changes to Capitol Dome Sponsorship policy to strike "Hard Liquor," from page two of Attachment B and insert "is offensive, obscene, or pornographic as defined by prevailing community standards," after "Adult Entertainment" on page two of Attachment B. The motion passed on a vote of 4-2.
SECONDED:
		VOTE
	Brown	No
	Renfroe	No
	Schwartz	Yes
	Vigil	Yes
	Bacon	Yes
	Sonnenberg	Yes
Not Final YES: 4 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

09:35 AM

Discussion turned to the State Capitol dome fund-raising task force.


BILL:	State Capitol Dome Fund-Raising Task Force
TIME:	09:36:41 AM
MOVED:	Bacon
MOTION:	Authorize the State Capitol dome fund-raising task force to approve sponsorship policies, so long as it acts unanimously. In the event the task force is not in unanimous agreement about approving potential sponsors, direct the task force to report to the Capital Development Committee (CDC) in order that the CDC may approve or disapprove sponsors that raise questions or concerns for a member or members of the task force. Also, give the task force the latitude to decide whether or how it will approve advertisements for the Share in the Care Campaign. This includes whether it will approve some or all advertisements. Direct the task force to report periodically, and a minimum of quarterly, regarding its actions. The task force shall report to the CDC prior to the quarterly required report from Colorado Preservation, Inc. regarding fund-raising efforts for the State Capitol dome renovation project. Finally, direct the task force to hold its first meeting no later than January 31, 2011. The motion passed on a vote of 6-0.
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

Prior to the vote, Representative Sonnenberg asked whether it is necessary to direct the task force to meet prior to January 31, 2010. Discussion ensued.

09:39 AM

Discussion continued about the appointment of a designee to the State Capitol dome fund-raising task force.


BILL:	State Capitol Dome Fund-Raising Task Force
TIME:	09:40:05 AM
MOVED:	Bacon
MOTION:	Reappoint Representative Jim Riesberg to the State Capitol dome fund-raising task force as the Capital Development Committee's designated member until such date as he no longer wishes to serve on the task force or until the committee decides to appoint someone in his place. The motion passed on a vote of 6-0.
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

09:40 AM


BILL:	State Capitol Dome Fund-Raising Task Force
TIME:	09:41:02 AM
MOVED:	Bacon
MOTION:	Appoint to the task force Ms. Lisa Esgar as the Governor's designated member, and Ms. Georgianna Contiguglia as the Capitol Building Advisory Committee's (CBAC) designated member, until such date as they no longer wish to serve or until the Governor or the CBAC, respectively, designates someone else in their place. The motion passed on a vote of 6-0.
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

09:41 AM -- Office of the State Architect Annual Report and Department of Personnel and Administration FY 2011-12 Request

Mr. Larry Friedberg, State Architect, Mr. Rod Vanderwall, Manager, Energy Programs, and Mr. Mike Karbach, Manager, Real Estate Programs, all from the Department of Personnel and Administration (DPA), presented the Office of the State Architect's annual report to the committee. Mr. Friedberg outlined the planned presentation. Committee members received a copy of the annual report. (A copy of the report is on file with Legislative Council Staff.) Excerpts of this report, including the Executive Summary and the Prioritized Recommendation for Controlled Maintenance are appended as Attachments D and E. Mr. Vanderwall first spoke about energy performance contracts. He addressed a question about how cost savings are calculated from energy performance contracts. Discussion ensued about this topic.

09:53 AM

Mr. Vanderwall next discussed high-performing buildings. Mr. Vanderwall and Mr. Friedberg addressed questions about the Leadership in Energy and Environmental Design (LEED) requirements for state buildings. Mr. Lance Shepherd, Project Manager, DPA, came to the table to discuss the geothermal project currently underway at the State Capitol and expected cost savings associated with the project.

10:06 AM

Discussion continued about the cost savings that can be realized from high-performing buildings and energy performance contracts and the pros and cons of these programs. Mr. Friedberg outlined the statutory requirement that his office adopt high performance standards for new state facilities, and about the various requirements of the LEED program and possible exemptions from the standards.

10:15 AM

Mr. Vanderwall addressed a follow-up question about cost-savings that have been realized by a LEED-certified facility. Mr. Friedberg continued the presentation with a brief overview of the state's building inventory. He said the inventory is both aging and growing. He next discussed industry standards for the reinvestment rate required to maintain and make critical repairs to facilities. Mr. Friedberg provided a historical overview of funding for capital construction and controlled maintenance for a 20 year period. He addressed a question about how his office tracks expenditures for renovations to buildings that also make controlled maintenance repairs.

10:29 AM

Mr. Friedberg continued his presentation and addressed a question about the best way to renovate a building. The committee discussed the need to set aside moneys for future controlled maintenance need for new projects. Mr. Friedberg provided a historical overview of recommended versus funded controlled maintenance for a 20-year period.

10:38 AM

Mr. Friedberg outlined the prioritized recommendations for controlled maintenance projects for FY 2011-12 and explained how the projects are prioritized by his office. He explained the three categories of controlled maintenance and the measure of severity and types of project according to category. Mr. Friedberg addressed questions about specific projects recommended for controlled maintenance funding for FY 2011-12. Discussion returned to the need to set aside moneys for future controlled maintenance need for new projects.

10:51 AM

Discussion returned to how the Office of the State Architect tracks need and spending for controlled maintenance. Mr. Friedberg addressed a question about who makes a determination about whether to renovate a facility rather than complete small controlled maintenance projects. Discussion continued about facility program planning requirements for various state agencies.

11:00 AM

Mr. Friedberg outlined the use of and demand for emergency controlled maintenance funds.

11:07 AM

Mr. Karbach addressed a question about property taxes paid by state tenants of buildings. He then presented information about the disposition and acquisition of real property and leasing activity by state agencies. He also responded to questions about the impact of property tax savings on local and state revenue collections, and how new lease rates for properties coming due for renewal are calculated.

11:18 AM

Mr. Friedberg made some concluding remarks about the annual report. He also gave the committee an update on the State Capitol dome restoration project. He said that temporary scaffolding will be installed sometime in the next month for forensic investigation purposes. He said long-term scaffolding for the project will be installed in the spring and summer of 2011. A computer-generated graphic of the proposed scaffolding plan will be presented to the committee for approval during the 2011 legislative session.

11:25 AM

Representative Sonnenberg told the committee that he would like to meet only once a week, on Thursdays, during the legislative session. He told the committee they may still meet on Tuesdays if there is a lot of business to consider in a given week. Discussion ensued about meeting dates and times. The committee agreed to set its usual meeting time as 7:30 a.m. on Thursday mornings. The next meeting of the committee will be January 13, 2011. Representative-elect Brown made some remarks about the possible prioritization of state-funded requests for FY 2011-12.

11:30 AM

The committee adjourned.