Joint Committee Committee on Capital Development (12/17/2014)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	12/17/2014	ATTENDANCE

Time:	08:31 AM to 12:22 PM	Fischer	X
		Kefalas	X
Place:	SCR 356	Sonnenberg	X
		Szabo	E
This Meeting was called to order by		Baumgardner	X
	Representative Vigil	Vigil	X

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

Bills Addressed:		Action Taken:
Overview CPW Budget Requests and Supplemental Request CPW Property Acquisitions DPA Supplemental Requests (2) DHS Supplemental Request History Colorado Supplemental Requests (2) Public Safety Supplemental Request AHEC Two-Year List and Five-Year Projection of Need CU-Boulder Two-Year Cash List Grand Junction Regional Center Discussion Consideration of Potential Legislation Office of the State Architect Presentation		Witness Testimony and/or Committee Discussion Only Pass Approved Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Pass Witness Testimony and/or Committee Discussion Only Approved Approved Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only

08:33 AM -- Overview

The meeting was called to order. Ms. Kori Donaldson, Legislative Council Staff (LCS), began the meeting with an overview of the schedule. Discussion ensued regarding the January/February calendar for the Capital Development Committee (CDC), including the upcoming annual hearings. Three days in February will be dedicated to prioritizing FY 2015-16 capital budget requests. Ms. Donaldson explained that for today's meeting, Colorado Parks and Wildlife (CPW) will be presenting their FY 2015-16 requests, since CPW has no state-funded requests. CPW will also present a technical correction supplemental request. Ms. Donaldson recommended that the CDC wait to act upon state-funded supplemental requests until January, after the December revenue forecast is published. Sen. Kefalas asked about the procedure for adjusting supplemental requests. Ms. Donaldson said legislation for supplemental appropriations would be introduced early in the session. Ms. Donaldson discussed the remainder of the day's agenda and explained that CPW's FY 2015-16 requests were amended by CDC staff to make adjustments in the request amounts because of deferred projects from FY 2014-15.

08:41 AM

Ms. Donaldson discussed a staff-initiated supplemental request on behalf of the Department of Military and Veterans Affairs which adds matching federal funds in the 2014 Long Bill to the Perform Structural Repairs and Code-Compliance Upgrades, Aurora Readiness Center controlled maintenance project. Committee members received a summary of the request, prepared by LCS (Attachment A). Ms. Donaldson also discussed a second staff-initiated supplemental request on behalf of the Department of Personnel and Administration for the Replace Water Well and Sprinkler System, Camp George West controlled maintenance project. Committee members received a summary of the request, prepared by LCS (Attachment B).

141217 AttachA.pdf

141217 AttachB.pdf


BILL:	Overview
TIME:	08:42:36 AM
MOVED:	Fischer
MOTION:	Approve the supplemental request from the Department of Military and Veterans Affairs to add federal funds spending authority to the Perform Structural Repairs and Code-Compliance Upgrades, Aurora Readiness Center controlled maintenance project ($540,500 FF). The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Fischer	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Szabo	Excused
	Baumgardner	Yes
	Vigil	Yes

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

BILL:	Overview
TIME:	08:43:38 AM
MOVED:	Baumgardner
MOTION:	Approve the supplemental request on behalf of the Department of Personnel and Administration to reassign the Replace Water Well and Sprinkler System, Camp George West controlled maintenance project from the Department of Public Safety to the Department of Personnel and Administration. The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Fischer	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Szabo	Excused
	Baumgardner	Yes
	Vigil	Yes

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

08:45 AM -- CPW Budget Requests and Supplemental Request

Mr. Bob Broscheid, Director, and Mr. Steve Cassin, Chief Financial Officer, CPW, presented CPW's four FY 2015-16 budget requests. The four budget requests for FY 2015-16 are: Land and Water Acquisitions, Wildlife Areas; Park Infrastructure and Facilities; Infrastructure and Real Property Maintenance, Wildlife Areas; and Land and Water Acquisitions, State Parks. Committee members received a summary of the request, prepared by LCS (Attachment C). Mr. Broscheid discussed how capital development has been an area of focus in his first year serving as Director. State parks, state wildlife areas, fish hatcheries, dams, and other infrastructure are part of the agency's inventory. Discussion ensued on CPW's position on property acquisitions, including conservation easements and fee-title acquisitions. Mr. Broscheid said CPW is improving its partnership with Great Outdoors Colorado (GOCO). He also said the division continues to evaluate its land and water portfolio to ensure the agency is biologically, recreationally, and fiscally responsible. Mr. Cassin summarized the FY 2015-16 capital construction requests, which total $23 million and are entirely cash funded.

141217 AttachC.pdf

Mr. Cassin, discussed CPW's supplemental request, which is technical in nature. It addresses the 2014 Long Bill, which omitted $300,000 in funding from the Highway Users Tax Fund (HUTF). Senator-elect Sonnenberg inquired about the status of the board-imposed reserve policy. Mr. Cassin stated the reserve is currently at $13 million, and the current policy minimum is $3.5 million. He explained that CPW would like to maintain the reserve at a minimum of $10 million. Mr. Cassin responded to a question about the reserve policy and said that while there had been a hiatus in updating the policy, CPW has been working on the interim policy. By June 2015, a new policy should be in place. Senator-elect Sonnenberg requested that the new policy ensure that properties which are paid for by hunting and fishing fees are accessible to hunters and fishers. Mr. Cassin responded that the policy is to exhaust all options prior to acquiring a property with fee-title. However, since a public access easement is voluntary on the part of the land-owner, a public-access easement is not always possible.

08:58 AM

Senator-elect Sonnenberg reiterated that CPW should have a standard to allow hunters and fishers access to the properties it acquires. Senator Kefalas inquired about the reserves in the Wildlife Cash Fund and why expenditures have exceeded revenues in the past. Mr. Cassin responded that because of the nature of fee setting, the fund goes through cycles. About six to eight years ago, the fund balance was high, so expenditures were increased. However, CPW has had to reduce expenditures in recent years.

No action was taken by the committee on the FY 2015-16 budget requests from CPW. Mr. Cassin discussed the FY 2014-15 supplemental request to approve HUTF cash funds spending authority ($300,000) in a footnote in the 2014 Long Bill for the Park Infrastructure and Facilities project. The committee received a summary of the request, prepared by LCS (Attachment D).

141217 AttachD.pdf

Ms. Donaldson addressed a question from the committee about prior HUTF appropriations for the project.


BILL:	Colorado Parks and Wildlife
TIME:	09:01:56 AM
MOVED:	Fischer
MOTION:	Approve the supplemental request from the Department of Natural Resources to add Highway Users Tax Fund (HUTF) cash funds spending authority ($300,000) to the footnote itemizing the sources of cash funds in the 2014 Long Bill for the Park Infrastructure and Facilities project. The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Fischer	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Szabo	Excused
	Baumgardner	Yes
	Vigil	Yes

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

09:06 AM -- CPW Property Acquisitions

Ms. Anne Kelson, Real Estate Section Manager for CPW, and Mr. Rob White, Park Manager for Arkansas Headwaters Recreation Area, introduced three property transactions. Ms. Kelson discussed the Arkansas River Recreation Site Placer Fee Title Acquisition. Committee members received a summary of the request, prepared by LCS (Attachment E). She explained that the acquisition would allow additional boat access, 1.5 miles of river frontage access, and fishing. Senator Baumgardner inquired about the identify of the current property owner and location of the site. Mr. White responded that the United States Forest Service (USFS) property lies to the north of the site and that a family trust currently owns a historic mining claim on the property. Mr. White responded to a question from the committee about the current visitation numbers on the property. He stated that the site is one of the most popular recreation areas, and it is preferred that the state maintain recreational control over the property, rather than the USFS. Representative Fischer inquired if the contract is secure enough to delay action on this acquisition. Mr. White responded that the property has been for sale for some time, and the family would prefer to see CPW acquire the property rather than the USFS or other private owners. Mr. White responded to a question from the committee about how the property was identified and stated CPW was approached by the property owner after negotiations with USFS failed. He also stated that the family's preference was for a fee title acquisition.

141217 AttachE.pdf


BILL:	Colorado Parks and Wildlife
TIME:	09:16:52 AM
MOVED:	Baumgardner
MOTION:	Recommend support for the fee title acquisition of the Arkansas River Recreation Site Placer property ($635,000 CF for 42 acres). The motion passed on a vote of 4-1.
SECONDED:
		VOTE
	Fischer	Yes
	Kefalas	Yes
	Sonnenberg	No
	Szabo	Excused
	Baumgardner	Yes
	Vigil	Yes

Final YES: 4 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS

09:18 AM

Ms. Kelson discussed the Arkansas Headwater Recreation Area Pink House Fee Title Acquisition. Committee members received a summary of the request, prepared by LCS (Attachment F). Ms. Kelson responded to a question about considering an easement instead of a fee-title acquisition and stated the Request For Proposal (RFP) process is only for wildlife parcels, not parks parcels. Therefore, the RFP process was not utilized. The landowner approached local staff. Mr. White responded that the parcel was leased from the property owner for the past two years. After two years, the property owner asked if CPW would be interested in purchasing the property, as it is currently landlocked by BLM and other property. Representative Fischer asked where the property is located in relation to the Cotter Mill Superfund site, and if the state would have any increased liability because of the purchase. Ms. Kelson stated that a Phase I environmental report was conducted on the property, and it did not indicate any environmental liability. Mr. White added that the property is more than ten miles away and that all landscape to the west is public land. Mr. Broscheid offered that the item could be pulled from the agenda and resubmitted at a later date. Senator-elect Sonnenberg discussed the appraisal comparables and inquired about the benefits of fee-title acquisition over extending the current lease. Discussion ensued on the per-acre cost.

141217 AttachF.pdf


BILL:	Colorado Parks and Wildlife
TIME:	09:26:56 AM
MOVED:	Fischer
MOTION:	Recommend support for the acquisition of the Arkansas Headwaters Pink House property ($270,000 CF for 4 acres). The motion passed on a vote of 3-2.
SECONDED:
		VOTE
	Fischer	Yes
	Kefalas	Yes
	Sonnenberg	No
	Szabo	Excused
	Baumgardner	No
	Vigil	Yes

Final YES: 3 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS

09:30 AM

Ms. Kelson discussed the Woodard Ranch Perpetual Public Access Easement, located 30 miles northwest of Limon. Committee members received a summary of the request, prepared by LCS (Attachment G). The easement would be granted to CPW by a land trust. It is located near the headwaters of the Bijou Creek drainage and is adjacent to the Jumping Cow Ranch State Wildlife Area, creating a continuous corridor of 30,000 acres of conserved lands. In response to a question from the committee, Ms. Kelson responded that Senator Brophy did not write a letter of concurrence. Representative Fischer inquired about the nearby State Land Board (SLB) lease and its access to hunting and fishing. Ms. Kelson responded that the SLB parcel is part of the CPW public access program and is leased by CPW.

141217 AttachG.pdf


BILL:	Colorado Parks and Wildlife
TIME:	09:33:22 AM
MOVED:	Baumgardner
MOTION:	Recommend support for the acquisition of a perpetual public access easement at the Woodland Park Ranch ($45,000 CF for 2,934 acres). The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Fischer	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Szabo	Excused
	Baumgardner	Yes
	Vigil	Yes

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

09:35 AM -- DPA Supplemental Requests (2)

Mr. Matt Azer, Director of Statewide Programs, Department of Personnel and Administration (DPA) presented two FY 2014-15 state-funded supplemental requests, including: (1) Centennial Building (1313 Sherman Street) Renovation; and (2) Capitol Annex Building (1375 Sherman Street) Renovation. Committee members received a summary of the requests, prepared by Legislative Council Staff (Attachments H and I, respectively). Mr. Azer explained that the need for these projects is outlined in the recently completed Capitol Complex Master Plan. He outlined the deficiencies reported in the building assessment -- included in the master plan -- of 1375 Sherman Street and discussed more costly project alternatives considered by the department. He next outlined the deficiencies reported in the building assessment of 1313 Sherman Street. Mr. Azer addressed a question about the timing of the project request submittal. He also responded to a question about relocating building occupants for the duration of the project. Mr. Larry Friedberg and Ms. Carol Lewis, both representing the Office of the State Architect, DPA, also provided input about relocating tenants for the duration of construction and the associated operating budget impact. Ms. Donaldson responded to a question from the committee about when action on the projects would be scheduled for consideration.

141217 AttachH.pdf

141217 AttachI.pdf

09:51 AM

Mr. Lance Shepherd, DPA, came to the table to respond to a question about the Armenian Garden on the Capitol Grounds and the installation of a replica khachkar in the garden.

09:52 AM -- DHS Supplemental Request

Mr. Kevin Ross, Manager of Planning and Construction, Colorado Veterans Community Living Centers (CVCLC), Department of Human Services, presented a FY 2014-15 state-funded supplemental request for the Resident Support Areas and Security Upgrades project. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment J). Mr. Ross explained the renovations needed at various CVCLC facilities and explained that matching federal funds on behalf of the project will not be made available for at least five years and that the work requested under the project addresses urgent life-safety issues.

141217 AttachJ.pdf

09:57 AM -- History Colorado Supplemental Requests (2)

Mr. Ed Nichols, President, Mr. Joseph Bell, Vice-President of Finance, Facilities, and Regional Museums, and Mr. Andy Stine, Division Director, Facilities and Regional Museums, History Colorado, presented two supplemental requests, including a request to extend spending authority for one project: Ute Indian Museum Landscape and Parking Lot Redesign, and to add additional state funds to another project: Ute Indian Museum Expansion. Committee members received a summary of the requests, prepared by Legislative Council Staff (Attachments K and L, respectively). Mr. Nichols discussed the history of projects, including the involvement of local tribe members in designing the project. He also discussed how the scope of the Ute Indian Museum Expansion project may be limited if additional state funding is not made available for the project. Mr. Nichols addressed a question from the committee about changes to the proposed parking lot design since the committee visited the facility in 2011. Mr. Bell responded to a question from the committee about the average number of annual visitors to the museum. Mr. Nichols also provided information about ways the renovated facility may be used by local community members.

141217 AttachK.pdf

141217 AttachL.pdf


BILL:	History Colorado
TIME:	10:07:25 AM
MOVED:	Fischer
MOTION:	Approve the supplemental request from History Colorado to extend spending authority for the Ute Indian Museum Landscape and Parking Lot Redesign project. The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Fischer	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Szabo	Excused
	Baumgardner	Yes
	Vigil	Yes

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

10:10 AM -- Public Safety Supplemental Request

Mr. Stan Hilkey, Executive Director, and Mr. Ron Sloan, Director, Colorado Bureau of Investigation (CBI), both representing the Department of Public Safety (DPS), presented a FY 2014-15 state-funded supplemental request for a new project: Redesign 690 and 700 Kipling Street Vacated Space. The committee members received a summary of the request, prepared by Legislative Council Staff (Attachment M). Director Hilkey discussed the need for the project. He next discussed a forthcoming request associated with a lab the department is building in a newly purchased building. The department has received some funding on behalf of the lab construction, as part of another capital request; however, the department has since learned that the moneys appropriated to date are not sufficient to pay the costs to construct a new lab. Director Hilkey also discussed the changes made by the department in order to comply with the provisions of House Bill 13-1020, which required law enforcement agencies to submit to the CBI an inventory of all unanalyzed forensic evidence in active sexual assault investigations and for the CBI to develop a plan to analyze this evidence.

141217 AttachM.pdf

10:19 AM

Director Hilkey responded to a question from the committee about the landlord at commercial leased space currently occupied by members of the department. He also responded to a question from the committee about the value of the leased property. Director Hilkey confirmed that if the supplemental request is approved, the department will move into spaces vacated by the Department of Agriculture. He also clarified that a new lab will be constructed in Arvada rather than at 690 or 700 Kipling Street. Ms. Terri Anderle, Budget Director, DPS, came to the table to address questions about the cost per square foot to lease space within the Capitol Complex and the savings associated with leasing space within the Capitol Complex versus commercial leased space. Discussion ensued on the topic of the whether and how the value of an asset increases after it is renovated. Director Hilkey responded to additional questions from the committee about where various divisions and new FTE are physically located, and whether DPS will continue to lease space at 710 Kipling after moving into available space at 690 and 700 Kipling Street.

10:31 AM

Discussion continued on the topic of phasing in the hiring of newly appropriated FTE. Mr. Sloan and Director Hilkey continued to respond to questions about where new FTE will by physically located once they are hired.

10:34 AM -- AHEC Two-Year List and Five-Year Projection of Need

Ms. Barb Weiske, Executive Vice President for Administration and Chief Executive Officer, and Mr. Carl Meese, Campus Planner, both representing the Auraria Higher Education Center (AHEC), presented one project for approval as part of its two-year projection of cash need: Tivoli Commons Extension and Quadrangle. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment N). Committee members also received a handout describing the project, provided by AHEC (Attachment O). Ms. Weiske described the project and discussed possible future additions to the project. She responded to a question from the committee about the source of cash funds on behalf of the project.

141217 AttachN.pdf

141217 AttachO.pdf


BILL:	Auraria Higher Education Center
TIME:	10:40:15 AM
MOVED:	Baumgardner
MOTION:	Approve the new project listed on the Auraria Higher Education Center two-year projection of cash need. The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Fischer	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Szabo	Excused
	Baumgardner	Yes
	Vigil	Yes

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

10:40 AM

Ms. Weiske addressed a question from the committee about the student fees associated with future additions to the project and the total amount of fees charged to students on behalf of capital projects. She next discussed ongoing construction on the campus and presented information about outyear need for capital construction funding. Committee members received a summary of AHEC's five-year projection of need, prepared by Legislative Council Staff (Attachment P). Ms. Weiske discussed a FY 2016-17 request for a renovation and addition to the King Center.

141217 AttachP.pdf

10:45 AM

The committee recessed.

11:01 AM -- CU-Boulder Two-Year Cash List

The committee returned to order. Ms. Teresa Osborne, Senior Director for Budget and Planning, CU System, presented a revised two-year cash list for the University of Colorado at Boulder. Committee members received a summary of the request prepared by LCS (Attachment Q). Mr. Steve Thweatt, Vice Chancellor for Administration, CU System introduced the Capital Asset Management Plan (CAMP), which includes a space utilization study, energy services contract program, and deferred maintenance initiative. Mr. Thweatt said two projects were being submitted as part of the deferred maintenance initiative, including (1) the Carlson Gymnasium Renewal and Renovation Project and (2) the Engineering Center Phase I-A project. In response to a committee question about the internal loan, Mr. Thweatt said that efficiencies developed for the project will be sufficient to repay the loans. In response to a committee question about the return on investment for the two projects, Ms. Osborne clarified that the institution is considering several financing options, including internal loans from reserve funds or possible borrowing. She said the campus has budgeted annual operating dollars for whatever financing option is ultimately chosen. Mr. Thweatt stated that new revenue could also be generated from the new classrooms.

141217 AttachQ.pdf


BILL:	University of Colorado at Boulder
TIME:	11:09:15 AM
MOVED:	Sonnenberg
MOTION:	Approve the new projects listed on the University of Colorado at Boulder two-year projection of cash need. The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Fischer	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Szabo	Excused
	Baumgardner	Yes
	Vigil	Yes

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

11:10 AM -- Grand Junction Regional Center Discussion

Ms. Donaldson discussed a recent assessment of the physical condition of the Grand Junction Regional Center, operated by the Department of Human Services (DHS). Following the CDC's past visit, DHS commissioned a study to analyze options for the campus. The committee was provided with the Facilities Assessment Report prepared by OZ Architecture (Attachment R). Ms. Donaldson discussed the possible campus re-purposing and decommissioning options outlined in the report. She also discussed recent conversations that are ongoing with the Joint Budget Committee (JBC) regarding the campus. The per-client cost of the campus is relatively high compared to other DHS facilities. Discussion ensued on how the local community and city of Grand Junction have been made aware of the report and engaged in conversations regarding the future of the campus. In response to a question from the committee on how the CDC should respond to the report, Ms. Donaldson stated that the CDC could give a recommendation to the JBC.

141217 AttachR.pdf

Ms. Megan Davisson, JBC staff, came to the table to discuss the current state of the Grand Junction campus. She stated a majority of the clients have been moved to the Wheat Ridge Regional Center, with approximately five clients still living on the Grand Junction campus. She recommended reaching out to DHS on its future plans for housing clients in Grand Junction. Discussion ensued on a task force currently underway with legislative members and community members regarding DHS regional facilities. Discussion ensued about economic impacts from closing the facility. Mr. Larry Friedberg, State Architect, DPA, came to the table to discuss his office's familiarity with the campus and related requests for controlled maintenance. His office is not yet familiar with the report. Ms. Donaldson stated that once the CDC decides if it wants to make a recommendation on the report, future legislation or capital budget requests could be considered by the CDC. Ms. Davisson said the next task force meeting is scheduled for January 12 to present the findings of the report. Discussion ensued about life-safety issues on the campus.

11:29 AM -- Consideration of Potential Legislation

Ms. Esther van Mourik, Office of Legislative Legal Services (OLLS), discussed House Bill 14-1387, legislation recommended by the CDC in 2014 and passed by the General Assembly, as well as the CDC's desire to address a centralized process to address real property transactions statewide. Ms. van Mourik explained that a group of stakeholders consisting of staff from LCS, DPA, OLLS, the Attorney General's (AG) office, the Governor's Offices of State Planning and Budgeting (OSPB), and the State Treasurer's Office, had met to discuss improvements to the state's process for real property acquisitions. The group determined that while OSPB has a cursory review process for property transaction projects, more involvement is needed from DPA and the CDC. A more robust planning process for the entire state is needed, and it was recommended that a planning division should be created within the State Architect's Office under DPA. OSPB indicated that although it has performed a centralized planning function in the past, the new planning function is more properly suited within DPA. Mr. Alfredo Kemm, JBC staff, recently recommended that the JBC, rather than the CDC, propose legislation related to the new planning division.

Ms. van Mourik also recommended the committee consider legislation that would centralize all department-specific statutes related to real property. Staff from LCS, OLLS, and the AG's office have begun working on research to centralize the current statutes. Any potential legislation is not anticipated to reduce current statutory authority for individual state departments. However, operation concerns, e.g., janitorial services, snow removal, etc., may arise and still need to be sorted out. In October, the CDC indicated it was interested in pursuing legislation on this front. Other statutory changes are also recommended, including on state buildings, controlled maintenance phase, Office of the State Architect, emergency supplemental flexibility, and others.

11:45 AM

Discussion ensued after committee questions about creating the Office of the State Architect in statute and the nature of HB 14-1387. Ms. van Mourik responded that a small portion of HB 14-1387 related to inspector certifications was controversial among stakeholders prior to passage. Ms. van Mourik requested clarification from the committee to continue pursuing drafting potential legislation.


BILL:	Consideration of Potential Legislation
TIME:	11:49:40 AM
MOVED:	Kefalas
MOTION:	Authorize the Office of Legislative Legal Services to draft potential legislation concerning real property transactions and other matters related to HB 14-1387. The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Fischer	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Szabo	Excused
	Baumgardner	Yes
	Vigil	Yes

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

11:51 AM -- Office of the State Architect Presentation

Mr. Larry Friedberg, State Architect, Mr. Mike Karbach, Manager of Real Estate Programs, and Mr. Rod Vanderwall, Manager of Energy Programs, all representing the Office of State Architect (OSA), DPA, came to the table. Committee members received an executive summary of OSA's 2014 Annual Report from Mr. Friedberg (Attachment S). The committee was also provided with an annual flowchart of DPA's role in the state's capital construction process (Attachment T). The flow chart outlines the statutory authority, history, responsibilities, and annual timeline of the capital construction process for the OSA. Mr. Friedberg responded to a committee question on OSA's role in capital construction. Mr. Friedberg explained OSA is not involved, to a large degree, with the planning of capital construction prior to appropriation, except for the controlled maintenance and capital renewal processes.

141217 AttachS.pdf

141217 AttachT.pdf

12:07 PM

Mr. Vanderwall discussed the High Performance Certification Program (HPCP) and how it governs the design and construction of state buildings. The HPCP requires agencies to better analyze design, equipment, occupancy, and long-term operating costs, resulting in a better designed building and reduced controlled maintenance needs. Mr. Vanderwall discussed how technology and guidelines regarding high performance and efficient construction are constantly changing. He said continued monitoring and management is necessary to ensure legislative intent is met. Mr. Vanderwall then discussed energy performance contracts (EPCs) as an alternative source of funds for construction with the purpose of increasing the energy efficiency of buildings. The process uses avoided costs to help pay for construction financing. EPCs are jointly managed by OSA and the Governor's Energy Office. Mr. Vanderwall explained that the EPC process guarantees energy savings for the entire life of the financed project. Mr. Friedberg stated that the OSA annual report discusses the EPC process in more detail, and that costs have come down to such an extent that it is generally no longer more expensive to construct a building under high performance standards.

12:14 PM

Mr. Karbach discussed the state's real-estate programs. Mr. Karbach said OSA has the statutory authority to execute leases. The centralized leasing process used by the state was discussed. Mr. Karbach said the mission of real-estate programs is to ensure real estate is cost effective for the state, no matter the size of the transaction. To do so, he said his office undertakes a comprehensive process that analyzes the competitive market for lease or purchase options. OSA anticipates increased prices for leased space in the near future, especially in the Denver Metro area. Mr. Friedberg also clarified that OSA's approval for leasing is not authorized in statute. OSA only provides recommendations.

12:22 PM

The committee adjourned.