Joint Committee Committee on Capital Development (11/17/2015)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	11/17/2015	ATTENDANCE

Time:	09:00 AM to 11:14 AM	Becker K.	X
		Brown	X
Place:	SCR 356	Kefalas	X
		Sonnenberg	X
This Meeting was called to order by		Vigil	X
	Senator Baumgardner	Baumgardner	X

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

Bills Addressed:		Action Taken:
Discussion of FY 2016-17 Capital Construction Requests FLC Nonmonetary Adjustment CU Denver Two-Year List CPW Real Property Transactions (3) Potential Legislation Other Business		Witness Testimony and/or Committee Discussion Only Passed Passed Recommendation(s) Approved Introduce Two Committee Bills Witness Testimony and/or Committee Discussion Only

09:00 AM -- Discussion of FY 2016-17 Capital Construction Requests

The committee was called to order. A quorum was present. Mr. Matt Becker, Legislative Council Staff, presented information about the FY 2016-17 capital construction requests submitted by the Governor's Office of State Planning and Budgeting on November 2, 2015. Committee members received an updated list of projects (Attachment A). Mr. Becker described a mapping project illustrating projects requested for funding in FY 2016-17. Mr. Becker addressed questions about Attachment A. Ms. Kori Donaldson, Legislative Council Staff, responded to questions about the potential construction of new Colorado Department of Transportation headquarter facilities.

151117 AttachA.pdf

09:12 AM -- FLC Nonmonetary Adjustment

Mr. Ed Bowditch, representing Fort Lewis College, presented a request for a nonmonetary budgetary adjustment to the appropriation to the Berndt Hall -- Geosciences, Physics and Engineering Building project. Committee members received a description of the project, prepared by Legislative Council Staff (Attachment B). Committee members also received information about the growth in enrollment in the various programs that will be housed in the addition, provided by Fort Lewis College (Attachment C). Mr. Bowditch discussed the importance of providing education in STEM fields (Science, Technology, Engineering, and Math). He addressed a question from the committee about the appropriateness of repurposing the funds to purchase additional engineering equipment.

151117 AttachB.pdf

151117 AttachC.pdf


BILL:	FLC Nonmonetary Adjustment
TIME:	09:17:28 AM
MOVED:	Brown
MOTION:	Approve the supplemental request from Fort Lewis College to expand the project scope of the Berndt Hall Reconstruction —Geosciences, Physics and Engineering project in order to purchase additional equipment for other Engineering Department locations. The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Baumgardner	Yes

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

09:18 AM -- CU Denver Two-Year Cash List

Mr. Jeffrey Parker, Vice Chancellor of Administration and Finance, University of Colorado Denver, presented two projects added to the CU Denver revised projection of cash need list. Committee members received a revised two-year cash list with descriptions of the projects (Attachment D), prepared by Legislative Council Staff. Committee members also received a description of each request, provided by CU Denver (Attachment E). Mr. Parker first described the Campus Village Acquisition. He addressed questions from the committee about future maintenance of the facility, future savings associated with the project, the role that the CU Real Estate Foundation plays in the management of the building, and the need for the acquisition. In response to additional questions, Mr. Parker explained that the property is tax exempt and how bonds will be repaid and reissued. He responded to a question about how the debt will be repaid.

151117 AttachD.pdf

151117 AttachE.pdf

09:31 AM

Mr. Parker next described the Campus Services, Various Buildings Renovation project.


BILL:	CU Denver Two-Year List
TIME:	09:35:23 AM
MOVED:	Kefalas
MOTION:	Approve the new projects listed on the University of Colorado Denver two-year projection of cash need ($72,085,445 CF). The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Baumgardner	Yes

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

09:37 AM -- CPW Real Property Transactions (3)

Mr. Bob Broscheid, Director, Colorado Parks and Wildlife (CPW), presented a financial update of various cash funds managed by CPW and overall spending. Committee members received a handout highlighting key points of Mr. Broscheid's presentation, prepared by CPW (Attachment F). He discussed CPW's revenue sources and expenses. He also discussed the cash reserves of all cash funds managed by CPW, the Wildlife Cash Fund, the Habitat Stamp reserve balance, and the reserve policy of the CPW Commission. Finally, He gave the committee a brief update on the Commission's policy for property acquisitions and CPW's use of federal funds for property acquisitions.

151117 AttachF.pdf

09:49 AM

Discussion ensued on the purpose and source of revenue for each cash fund managed by CPW and how refunds for certain transactions are managed by the Treasurer's Office. Mr. Steve Cassin, Chief Financial Officer, CPW, came to the table to discuss how the Treasurer's Office charges CPW for refunds.

09:58 AM

Discussion continued on CPW's refund process. In response to a committee question regarding the efficiency of processing refunds, Mr. Broscheid stated that CPW has considered other options to the current process.

10:00 AM

Mr. Bill deVergie, Area Wildlife Manager, came to the table to discuss the Rio Blanco Lake State Wildlife Area White River City Investments, LLC Fee Title Acquisition. Committee members received a summary of the acquisition, assembled by Legislative Council Staff (Attachment G). Mr. deVergie discussed the property's current use as a gravel pit operation.

151117 AttachG.pdf


BILL:	CPW Real Property Transaction
TIME:	10:02:57 AM
MOVED:	Vigil
MOTION:	Recommend support for the fee title acquisition for the Rio Blanco Lake State Wildlife Area White River Investments LLC Fee Title Acquisition ($0 for 39.21 acres). The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Baumgardner	Yes

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

10:03 AM

Mr. Jim Haskins, Area Wildlife Manager, discussed CPW's proposed acquisition of the Yarmony Ranch Perpetual Conservation and Public Access Easements. Committee members received a summary of the acquisition, assembled by Legislative Council Staff (Attachment H). Mr. Haskins discussed hunting and fishing opportunities on the property. In response to a committee question regarding how the use of the property will change with the acquisition of the easements, Mr. Haskins stated that the agricultural use will not change, but that public hunting and fishing access will be granted to the public in perpetuity.

151117 AttachH.pdf

Mr. Pat McConathy, the property owner of Yarmony Ranch, came to the table to discuss the current use of the property. Committee discussion ensued on the public access provided by the proposed easements. In response to a committee question regarding the ownership of an associated State Land Board (SLB) parcel, Ms. Anne Kelson stated that the SLB deeded the surface interest to the landowner and retained the mineral interests.


BILL:	CPW Real Property Transactions
TIME:	10:17:33 AM
MOVED:	Vigil
MOTION:	Recommend support for the acquisition of a perpetual conservation easement and a perpetual public access easement on the Yarmony Ranch property ($4,000,000 CF for 3,672 acres). The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Baumgardner	Yes

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

10:18 AM

Mr. Rick Basagoitia, Area Wildlife Manager, came to the table to discuss the Coller State Wildlife Area Rio Grande River Access Fee Title Acquisition. Committee members received a summary of the acquisition, assembled by Legislative Council Staff (Attachment I). Mr. Basagoitia discussed the current easements and restrictions on the property. In response to a committee question regarding road access to the property, Mr. Basagoitia discussed existing road access agreements with the Denver and Rio Grande Historical Railroad and other neighboring landowners.

151117 AttachI.pdf

10:25 AM

In response to a committee question regarding other possible river access points, Mr. Basagoita discussed an alternative location on the other side of the bridge that was determined not to be feasible. Committee discussion ensued on the selected location, the acreage of the property, and the purchase price.


BILL:	CPW Real Property Transactions
TIME:	10:32:23 AM
MOVED:	Vigil
MOTION:	Recommend support for the fee title acquisition of the Coller State Wildlife Area Rio Grande River Access Parcel ($125,000 CF for 2.46 acres). The motion passed on a vote of 4-2.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	Yes
	Sonnenberg	No
	Vigil	Yes
	Baumgardner	No

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

10:34 AM -- Potential Legislation

Ms. Nicole Myers, Office of Legislative Legal Services, came to the table to discuss a draft of legislation (LLS 16-0443) requested by the committee related to the Joint Technology Committee's authority to approve waiver requests for encumbrance deadlines (Attachment J).

151117 AttachJ.pdf

10:36 AM

The committee recessed.

10:45 AM

The committee reconvened. Ms. Myers discussed the CDC's current authority and the JTC's proposed authority to approve six-month encumbrance deadline waivers under the draft legislation.


BILL:	Potential Legislation
TIME:	10:46:48 AM
MOVED:	Becker K.
MOTION:	Introduce LLS 16-0443 as a CDC bill. The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Baumgardner	Yes

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

The committee decided to introduce LLS 16-0443 in the House with Representative Brown and Senator Baumgardner as prime sponsors and the remaining CDC members as co-sponsors.

10:48 AM

Ms. Esther van Mourik, Office of Legislative Legal Services, came to the table to discuss draft legislation (LLS 16-0444) regarding the clarification of how to calculate depreciation equivalent lease payments for certain capital projects pursuant to Senate Bill 15-211 (Attachment K). She discussed changes to how depreciation is recorded for the purposes of SB 15-211. The draft legislation also clarifies the Department of Higher Education's role in setting aside and recording depreciation pursuant to SB 15-211. Ms. van Mourik and Ms. Donaldson responded to questions related to the use of lottery funds, as defined in SB 15-211. They also responded to questions regarding the necessity of a safety clause for LLS 16-0444 and LLS 16-0443.

151117 AttachK.pdf


BILL:	Potential Legislation
TIME:	10:53:16 AM
MOVED:	Sonnenberg
MOTION:	Introduce LLS 16-0444 as a CDC bill. The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Baumgardner	Yes

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

The committee decided to introduce LLS 16-0444 in the Senate with Senator Sonnenberg and Representative Becker as prime sponsors and the remaining CDC members as co-sponsors.


BILL:	Potential Legislation
TIME:	10:59:03 AM
MOVED:	Sonnenberg
MOTION:	Remove the safety clause from LLS 16-0443. The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Baumgardner	Yes

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

11:00 AM -- Other Business

Ms. Donaldson discussed the recent capital construction briefing by Joint Budget Committee (JBC) Staff. She discussed the JBC staff recommendation regarding controlled maintenance funding for FY 2016-17, potential legislation related to the management of the state's real estate assets and long-term funding for controlled maintenance, other project-specific recommendations for FY 2016-17, potential legislation to create a state asset management enterprise, and long-term funding for capital projects at higher education institutions based on a model similar to the College Opportunity Fund.

Committee discussion ensued on future discussions with the JBC regarding recommendations related to capital construction.

11:14 AM

The committee adjourned.