Joint Committee Committee on Capital Development (09/05/2012)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	09/05/2012	ATTENDANCE

Time:	09:31 AM to 11:05 AM	Brown	X
		Renfroe	*
Place:	SCR 356	Schwartz	X
		Vigil	X
This Meeting was called to order by		Sonnenberg	X
	Senator Bacon	Bacon	X

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

Bills Addressed:		Action Taken:
UCCS Two-Year List CPW Real Property Transaction and Waiver Requests DMVA Real Property Transaction CBAC Recommendation: Khachkar Donation Use of Unspent COP Proceeds		Pass Pass Pass Pass Pass

09:32 AM -- University of Colorado at Colorado Springs Two-Year List

The committee was called to order. A quorum was present. Mr. Geoff Barsch, Associate Vice President, and Ms. Teresa Osborne, Senior Director of Budget and Planning, both representing the University of Colorado System, presented a two-year projection of cash need for the University of Colorado at Colorado Springs. Committee members received a copy of the two-year projection, prepared by Legislative Council Staff (Attachment A). Mr. Barsch addressed questions about the source of funds for the four new projects included in the two-year projection.


BILL:	University of Colorado at Colorado Springs
TIME:	09:35:41 AM
MOVED:	Schwartz
MOTION:	Approve the new projects (4 projects, $118.0 million) listed on the University of Colorado at Colorado Springs two-year projection of cash need. The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	Yes
	Schwartz	Yes
	Vigil	Yes
	Sonnenberg	Yes
	Bacon	Yes

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

09:36 AM -- Colorado Parks and Wildlife Real Property Transaction

Mr. Grady McNeill, Resource Support Section Manager, and Ms. Anne Kelson, Real Estate Unit Supervisor, both representing the Department of Natural Resources, Colorado Parks and Wildlife, presented a real property transaction proposal. Committee members received a packet of information about the proposal, assembled by Legislative Council Staff (Attachment B). Mr. McNeill addressed a question from the committee about the acquisition of the property by the La Plata Open Space Conservancy. Discussion on this topic ensued. In response to a question, Mr. McNeill said future use of the property is unrestricted. Ms. Kelson said the mineral rights have been severed from the property. In response to additional questions, Ms. Kelson explained that the property is not on the map of potential geothermal activity. However, the property could be developed for this purpose at a later date if it is determined that geothermal potential existed. Ms. Kelson also said no water rights will be conveyed with property. Finally, Ms. Kelson provided information about the stewardship contribution the division will make in lieu of purchasing the property. Discussion ensued on this topic. Mr. McNeill said that there will be public access to the property.


BILL:	Colorado Parks and Wildlife
TIME:	09:45:15 AM
MOVED:	Schwartz
MOTION:	Recommend support for the fee title acquisition of two parcels of land from the La Plata Open Space Conservancy. There is no cost to purchase these parcels, but the purchase agreement includes a $25,000 CF stewardship contribution to the La Plata Open Space Conservancy. The stewardship contribution will be payable through a National Fish and Wildlife Foundation grant. The motion passed on a vote of 4-2.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	No
	Schwartz	Yes
	Vigil	Yes
	Sonnenberg	No
	Bacon	Yes

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

09:46 AM

Ms. Kori Donaldson, Legislative Council Staff, presented two waiver requests on behalf of Colorado Parks and Wildlife. Ms. Donaldson explained that the waiver requests were made concurrent with the request for cash funds spending authority for FY 2012-13, and that the committee typically acts on requests of this type at the same time it approves cash funds spending authority for projects included in the annual budget bill. Committee members received a copy of the waiver requests, prepared by Legislative Council Staff (Attachment C). Ms. Donaldson addressed a question about what would happen to the funds included in the waiver requests if the waiver of the six-month encumbrance deadline is not approved. Discussion ensued on this topic.


BILL:	Colorado Parks and Wildlife
TIME:	09:52:00 AM
MOVED:	Sonnenberg
MOTION:	Approve the waiver request for the FY 2012-13 appropriation to the Land and Water Acquisitions, Wildlife Areas ($6.5 million CF) project, and the FY 2012-13 appropriation to the Motorboat Access on Lakes and Streams ($137,025 FF and $45,675 CF) project. The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	Yes
	Schwartz	Yes
	Vigil	Yes
	Sonnenberg	Yes
	Bacon	Yes

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

09:53 AM -- Department of Military and Veterans Affairs Real Property Transaction

Mr. Mickey Hunt, Deputy Executive Director, and Mr. Greg Dorman, Resource Director/Legislative Liaison, both representing the Department of Military and Veterans Affairs, presented a proposal to sell the Boulder Readiness Center site. Committee members received a copy of the proposal, prepared by Legislative Council Staff (Attachment D). Mr. Dorman addressed a question from the committee about the Boulder community's response to the pending sale. He explained that community members will have an opportunity to comment about the future use of the property during the permitting and zoning process.


BILL:	Department of Military and Veterans Affairs
TIME:	09:54:58 AM
MOVED:	Sonnenberg
MOTION:	Recommend support for the sale of the Boulder Readiness Center site. The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	Yes
	Schwartz	Yes
	Vigil	Yes
	Sonnenberg	Yes
	Bacon	Yes

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

09:56 AM -- Capitol Building Advisory Committee Recommendation: Khachkar Donation

Ms. Sona Hedeshian, President, and Mr. Ken Allikian, both representing Armenians of Colorado, presented a recommendation by the Capitol Building Advisory Committee (advisory committee) to accept the donation of a replica khachkar for inclusion in the Armenian gardens in the northeast quadrant of the State Capitol grounds. Committee members received a letter from the advisory committee and additional background about the proposed donation, prepared by Legislative Council Staff (Attachment E). Ms. Hedeshian explained that she hopes that the khachkar can be placed prior to the 100th anniversary of the Armenian genocide. She agreed that the Armenians of Colorado will continue to work with the advisory committee to select a final design for the garden and the placement of the replica khachkar. Senator Bacon explained that a joint resolution concerning the donation will need to be passed by the General Assembly. Ms. Hedeshian responded to a question about the role of the Governor's office in approving the donation. Prior to the vote, committee discussion turned to whether the advisory committee should make the final decision about the design of the memorial, or whether it should refer its selection to the Capital Development Committee for final approval.


BILL:	Capitol Building Advisory Committee
TIME:	10:02:21 AM
MOVED:	Sonnenberg
MOTION:	Approve the Capitol Building Advisory Committee proposal to accept the donation of a replica khachkar contingent upon future consideration of the final memorial design and plaque language selected by the advisory committee. The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	Yes
	Schwartz	Yes
	Vigil	Yes
	Sonnenberg	Yes
	Bacon	Yes

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

10:07 AM -- Unspent Certificates of Participation Proceeds

Senator Bacon provided general information about the unspent proceeds from the 2008 sale of certificates of participation (COPs) used to finance the construction of various higher education facilities. He explained the role of the committee in determining how these moneys will be spent. Committee members received a copy of a letter from the Office of the State Controller detailing the remaining moneys available (Attachment F). Committee members also received a table listing score 12 and 14 projects from the FY 2012-13 Level II controlled maintenance priority list that have been identified as capital expenditures and therefore eligible for funding from this source, prepared by Legislative Council Staff (Attachment G). Ms. Donaldson walked the committee through Attachments F and G.

10:11 AM

Mr. Bill Mansheim, Vice President, Office of Finance and Governmental Relations, Adams State University, presented a request to use a portion of the unspent COP proceeds to make repairs to the auditorium in Richardson Hall. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment H). Senator Schwartz explained that the third floor of the building is not currently in use. Mr. Mansheim described the recent findings of a structural engineer that have lead to limited use of the third floor. Discussion ensued about the projects funded through the 2008 COP issuance and the history of requests for the Richardson Hall project. Mr. Mansheim responded to a comment from the committee about other moneys granted to the campus and provided information about recent construction projects on the campus. Discussion ensued on the topic of capital needs at higher education institutions throughout the state.

10:23 AM

The committee discussed the merits of funding the Adams State University project and Level II controlled maintenance projects. Senator Schwartz discussed the original intent of the 2008 COPs and the use of federal mineral lease revenues for higher education institution capital projects. In response to a question, Ms. Donaldson explained that there are sufficient funds available to pay for the Richardson Hall project, the score 12 projects, and two score 14 projects (either projects 14.02 and 14.09, or projects 14.07 and 14.09). (See Attachments F and G.) Discussion continued about potential funding scenarios. Mr. Manshiem provided additional information about student fees used to finance various academic buildings on the Adams State University campus. He also said the Richardson Hall project would have been submitted as a controlled maintenance request if he had known there were moneys available for that category of project. Discussion ensued on this topic.

10:35 AM

The committee continued its discussion of potential funding scenarios. Mr. Mansheim explained why student fees were used to construct academic buildings rather than make renovations to Richardson Hall. Discussion ensued about the submittal process for the Richardson Hall request. In response to a question, Mr. Mansheim discussed enrollment growth on the campus.

10:46 AM

Mr. Larry Friedberg, State Architect, Department of Personnel and Administration, came to the table to discuss the potential funding scenarios and the request process for controlled maintenance and capital renewal projects. Mr. Friedberg addressed a question about the E. S. French Renovation project at Northeastern Junior College included on the original list of projects approved for funding from the 2008 sale of COPs. Representative Sonnenberg expressed reservations about approving requests that do not follow the standard process for project submittal and consideration. Discussion continued on the topic of unfunded projects that were originally listed on the priority list of projects eligible for funding through COPs.

10:56 AM

Committee discussion about possible funding scenarios and the standard submittal process continued. Senator Bacon explained that the use of the unspent COP proceeds for controlled maintenance does not meet the original intent of the 2008 COP issuance, which directed that federal mineral lease revenues would be spent for higher education institution capital projects.


BILL:	Unspent Certificates of Participation Proceeds
TIME:	10:58:30 AM
MOVED:	Schwartz
MOTION:	Approve the expenditure of unspent proceeds from the 2008 sale of certificates of participation to fund the following projects: Richardson Hall Renovation, Phase I (see Attachment H), all remaining higher education institution score 12 projects on the FY 2012-13 Level II controlled maintenance priority list (see Attachment G), and the score 14.02 and score 14.09 projects on the FY 2012-13 Level II controlled maintenance priority list (see Attachment G). The motion failed on a 3-3 vote.
SECONDED:
		VOTE
	Brown	No
	Renfroe	No
	Schwartz	Yes
	Vigil	Yes
	Sonnenberg	No
	Bacon	Yes

Final YES: 3 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: TIE


BILL:	Unspent Certificates of Participation Proceeds
TIME:	11:00:12 AM
MOVED:	Sonnenberg
MOTION:	SUBSTITUTE MOTION W/DRAWN PRIOR TO VOTE (SEE FOLLOWING VOTE SHEET)
SECONDED:
		VOTE
	Brown
	Renfroe
	Schwartz
	Vigil
	Sonnenberg
	Bacon

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION:


BILL:	Unspent Certificates of Participation Proceeds
TIME:	11:03:33 AM
MOVED:	Sonnenberg
MOTION:	Approve the expenditure of unspent proceeds from the 2008 sale of certificates of participation to fund the following projects: all remaining higher education institution score 12 projects and score 14.02 through score 14.07 projects, and the score 14.09 project on the FY 2012-13 Level II controlled maintenance priority list (see Attachment G). The motion passed on a vote of 4-2.
SECONDED:
		VOTE
	Brown	Yes
	Renfroe	Yes
	Schwartz	No
	Vigil	No
	Sonnenberg	Yes
	Bacon	Yes

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

11:05 AM

The committee adjourned.