Joint Committee Committee on Capital Development (12/15/2006)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	12/15/2006	ATTENDANCE

Time:	01:00 PM to 03:26 PM	Berens	X
		McElhany	*
Place:	SCR 356	McFadyen	*
		Windels	X
This Meeting was called to order by		Bacon	X
	Representative Riesberg	Riesberg	X

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

Bills Addressed:		Action Taken:
Department of Revenue Six-Month Encumbrance Waiver Department of Corrections Six-Month Encumbrance Rule Waiver Northeastern Junior College Waiver and Supplemental Requests Division of Wildlife Shell Oil Property Transaction Proposal Division of Wildlife Six-Month Encumbrance Waiver Requests Colorado Historical Society Emergency Supplemental Public Health and Environment Six-Month Encumbrance Waivers Election of a Chair and Vice-Chair Public Health & Environment Superfund Presentation K-12 Capital Construction Matching Grant Projects University of Colorado at Boulder Supplemental Request Potential Committee Hearing Dates		Pass Pass Pass Pass Pass Pass Pass Pass Witness Testimony Only Pass Pass Discussion Only

01:00 PM

The committee was called to order. A quorum was present.

01:01 PM -- Election of Chair and Vice-Chair

Committee members received a copy of the statute that governs election of a new chair and vice-chair (Attachment A).


BILL:	Election of a new Chair and Vice-Chair
TIME:	01:03:05 PM
MOVED:	Windels
MOTION:	Elect Representative Riesberg to serve as Chair of the Capital Development Committee, and Senator Bacon as Vice-Chair. The motion passed on a 4-0-2 vote.
SECONDED:
		VOTE
	Berens	Yes
	McElhany	Excused
	McFadyen	Excused
	Windels	Yes
	Bacon	Yes
	Riesberg	Yes
Final YES: 4 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

01:11 PM -- Department of Revenue Six-Month Encumbrance Waiver Request

Mr. Paul Doyle, Chief Financial Officer, and Mr. Eric Meyers, Budget and Policy Analyst, Department of Revenue, presented a request to waive the six-month encumbrance requirement for the Colorado Integrated Tax Architecture project (CITA). The project was formerly known as RITA, or Revenue Integrated Tax Architecture. Committee members received a memorandum summarizing the statutory requirements for six-month encumbrance rule waivers, prepared by Legislative Council Staff (Attachment B). Committee members also received a description of the CITA project waiver request, prepared by Legislative Council Staff (Attachment C). Mr. Doyle briefly explained the reason for the request, and responded to a question regarding the change of the project name.


BILL:	Department of Revenue Six-Month Encumbrance Waiver Request
TIME:	01:12:14 PM
MOVED:	Bacon
MOTION:	Approve the request from the Department of Revenue for a waiver of the six-month encumbrance rule for the full FY 2006-07 appropriation to the Colorado Integrated Tax Architecture project ($8,077,488 CFE). The motion passed on a 5-0-1 vote.
SECONDED:
		VOTE
	Berens	Yes
	McElhany	Yes
	McFadyen	Excused
	Windels	Yes
	Bacon	Yes
	Riesberg	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

01:14 PM -- Department of Corrections Six-Month Encumbrance Waiver Request

Mr. Gary Golder, Director of Prison Operations, Department of Corrections, presented a request for a waiver of the six-month encumbrance rule for the Trinidad Correctional Facility Water Utilities project. Committee members received a description of the waiver request, prepared by Legislative Council Staff (Attachment D). Mr. Golder explained why encumbering the project's appropriation had been delayed, and responded to a question regarding the planned timeline for encumbering the appropriation.


BILL:	Department of Corrections Six-Month Encumbrance Waiver Request
TIME:	01:15:16 PM
MOVED:	Bacon
MOTION:	Approve the request from the Department of Corrections for a waiver of the six-month encumbrance deadline for the full FY 2006-07 appropriation to the Trinidad Correctional Facility Water Utilities project ($2,880,562 CCFE). The motion passed on a 5-0-1 vote.
SECONDED:
		VOTE
	Berens	Yes
	McElhany	Yes
	McFadyen	Excused
	Windels	Yes
	Bacon	Yes
	Riesberg	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

01:18 PM -- Northeastern Junior College Six-Month Encumbrance Waiver and Supplemental Requests

Dr. Lance Bolton, President, Mr. Dennis Sander, Chief Financial Officer, and Ms. Cherie Brungardt, Information Technology Office, Northeastern Junior College (NJC), presented a request for a waiver of the six-month encumbrance rule and a FY 2006-07 supplemental request for state funds to upgrade the telecommunications system on campus. The representatives were joined by Mr. Jason Hopfer, contract lobbyist for the college. Committee members received descriptions of the waiver request (Attachment E) and the supplemental request (Attachment F), both prepared by Legislative Council Staff. The representatives from NJC explained the reason for the waiver request and additional state funds for the upgrade. Mr. Hopfer and Ms. Brungardt responded to questions regarding why NJC failed to recognize the campus telecommunications infrastructure deficiencies when the project was planned. Ms. Brungardt explained the specific technological systems to be installed under the project, and discussed the potential for future upgrades of the system. Ms. Jennifer Moe, Legislative Council Staff, responded to questions regarding the source of state funds for the supplemental request.


BILL:	Northeastern Junior College Six-Month Encumbrance Waiver Request
TIME:	01:25:48 PM
MOVED:	Bacon
MOTION:	Approve the request from Northeastern Junior College for a waiver of the six-month encumbrance rule for the full FY 2006-07 appropriation to the Telecommunications Information Technology Upgrade project ($499,670 CCFE). The motion passed on a 5-0-1 vote.
SECONDED:
		VOTE
	Berens	Yes
	McElhany	Yes
	McFadyen	Excused
	Windels	Yes
	Bacon	Yes
	Riesberg	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:	Northeastern Junior College Supplemental Request
TIME:	01:26:45 PM
MOVED:	Bacon
MOTION:	Approve the supplemental request from Northeastern Junior College for additional FY 2006-07 funds for the Telecommunications Information Technology Upgrade project ($419,985 CCFE). The motion passed on a 5-0-1 vote.
SECONDED:
		VOTE
	Berens	Yes
	McElhany	Yes
	McFadyen	Excused
	Windels	Yes
	Bacon	Yes
	Riesberg	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

01:28 PM -- Division of Wildlife Shell Oil Property Transaction Proposal

Mr. Grady McNeill, Acting Manager, Resource Support Section, Department of Natural Resources, Division of Wildlife (DOW), presented a proposal to exchange land and water rights between Shell Frontier Oil & Gas, Inc., and the division. Committee members received a description of the transaction, prepared by Legislative Council Staff (Attachment G). Mr. McNeill briefly discussed efforts to secure concurrence on the project from area legislators.


BILL:	Division of Wildlife Property Transaction Proposal
TIME:	01:29:48 PM
MOVED:	Bacon
MOTION:	Recommend to the Colorado Wildlife Commission support for the Division of Wildlife's proposal to exchange land and water rights between the division and Shell Frontier Oil & Gas, Inc. The motion passed on a 6-0 vote.
SECONDED:
		VOTE
	Berens	Yes
	McElhany	Yes
	McFadyen	Yes
	Windels	Yes
	Bacon	Yes
	Riesberg	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:32 PM -- Division of Wildlife Six-Month Encumbrance Waiver Requests

Mr. McNeill presented requests to waive the six-month encumbrance rule for the FY 2006-07 appropriation for two projects: the Property Acquisition project and the Motorboat Access on Lakes and Streams project. Committee members received descriptions of both requests, prepared by Legislative Council Staff (Attachments H and I). Mr. McNeill described the functions of and funding sources for both projects. Mr. McNeill and Ms. Pam Wagner, Legislative Liaison, DOW, responded to a question regarding the viewpoint of a legislator whose district covers the property that is subject to the Shell Oil Property exchange. The committee chair noted that the exchange was considered previously.


BILL:	Division of Wildlife Six-Month Encumbrance Waiver Requests
TIME:	01:36:00 PM
MOVED:	Bacon
MOTION:	Approve the request from the Division of Wildlife for a waiver of the six-month encumbrance rule for the FY 2006-07 appropriations for two projects: (1) the Property Acquisition project ($7,492,150 CFE); and (2) the Motorboat Access on Lakes and Streams project ($367,677 CFE and $275,533 FF). The motion passed on a 6-0 vote.
SECONDED:
		VOTE
	Berens	Yes
	McElhany	Yes
	McFadyen	Yes
	Windels	Yes
	Bacon	Yes
	Riesberg	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:38 PM -- Colorado Historical Society Emergency Supplemental Request

Ms. Georgianna Contiguglia, President, and Mr. Joseph Bell, Facilities Services Director, Colorado Historical Society (CHS), presented an emergency supplemental request for cash funds exempt spending authority for the Regional Museum Preservation Projects line item. Committee members received a description of the request, prepared by Legislative Council Staff (Attachment J). The additional funding would pay for landscape improvements at the Byers-Evans House Museum and repairs and improvements to the Georgetown Loop Railroad. Ms. Contiguglia described the project and discussed CHS's mission in general. Discussion ensued regarding the impact of deficiencies at the Georgetown Loop Railroad on visitation to the railroad, and the source of funds for the request. Discussion followed regarding the revenue structure for the Georgetown Loop Railroad.


BILL:	Colorado Historical Society Emergency Supplemental Request
TIME:	01:49:04 PM
MOVED:	Windels
MOTION:	Approve the emergency supplemental request from the Colorado Historical Society for additional spending authority of $425,000 CFE for the FY 2005-06 appropriation to the Regional Museum Preservation Projects line item. The motion passed on a 6-0 vote.
SECONDED:
		VOTE
	Berens	Yes
	McElhany	Yes
	McFadyen	Yes
	Windels	Yes
	Bacon	Yes
	Riesberg	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:50 PM -- Department of Public Health and Environment Six-Month Encumbrance Waiver Requests

Mr. Gary Baughman, Director, Hazardous Materials and Waste Management Division, Mr. Steve Gunderson, Director, Water Quality Division, and Ms. Donna Davis, Financial Assistance Program Manager, Department of Public Health and Environment, presented requests for waivers of the six-month encumbrance rule for three projects. Committee members received descriptions of the waiver and requests, prepared by Legislative Council Staff: (1) the Brownfields Cleanup Program (Attachment K); (2) the Small Community Domestic Wastewater Treatment Grants project (Attachment L); and (3) the Small Community Drinking Water Treatment Facilities Construction project (Attachment M). Mr. Baughman provided background on the objectives of the three projects and described the need for waiving the six-month encumbrance rule for the projects' FY 2006-07 appropriations. Mr. Baughman responded to questions regarding the application process for wastewater treatment grants, and the timing of the processes involved for the three projects. Discussion ensued regarding possibly exempting the three projects from the six-month encumbrance rule requirements on a permanent basis.


BILL:	Department of Public Health and Environment Six-Month Encumbrance Waiver Requests
TIME:	01:55:46 PM
MOVED:	Bacon
MOTION:	Approve the Department of Public Health and Environment's request for a waiver of the six-month encumbrance rule for the full FY 2006-07 appropriation to three projects: (1) the Brownfields Cleanup Program ($250,000 CF); (2) Small Domestic Wastewater Treatment Grants ($1.5 million CFE); and (3) Small Community Drinking Water Treatment Facilities Construction ($1.5 million CFE). The motion passed on a 6-0 vote.
SECONDED:
		VOTE
	Berens	Yes
	McElhany	Yes
	McFadyen	Yes
	Windels	Yes
	Bacon	Yes
	Riesberg	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:02 PM

The committee recessed.

02:09 PM -- Presentation by the Department of Public Health and Environment on the Status of the Superfund Cleanup Program

Mr. Baughman briefed the committee on the status of the Superfund cleanup program in Colorado. Committee members received copies of the department's Powerpoint presentation (Attachment N). Mr. Baughman provided background on the operation of the Superfund program. Mr. Baughman then discussed the various Superfund sites throughout the state and the current disposition of these cleanup efforts, including sites where the cleanup is complete and sites where cleanup continues.

02:23 PM

Mr. Baughman continued to brief the committee on the status of Superfund cleanup efforts in the state. During the presentation, Mr. Jeff Deckler, Remedial Programs Manager for the DPHE's Hazardous Materials Waste Management Division, and Mr. Baughman responded to questions regarding the cleanup timeline for the California Gulch site, and the time frame involved in cleaning up a contaminated site in general. Mr. Baughman explained the amount of cleanup work that remains and the funding sources for cleanup, and responded to questions regarding the potential for a future change in the level of federal funding for Superfund projects in the future.

02:42 PM

Mr. Baugman further explained Superfund cleanup work yet to be done in the state and the time frame for completion of this work. Mr. Baughman responded to questions regarding the potential for identifying additional Superfund sites in the future, and further clarified the source of the state's share of funding for cleanup. Discussion ensued regarding the recovery of cleanup costs from parties responsible for site contamination, and bonding requirements for active mines. Discussion followed regarding the uniformity of laws governing mining activity between Colorado and neighboring states.

02:54 PM -- K-12 School Districts Recommended to Receive Matching Grants from the School Construction & Renovation Fund

Ms. Vody Herrmann, Director of Public School Finance, and Mr. Ted Hughes, Senior Consultant for Capital Construction, Department of Education, presented the department's list of school districts recommended to receive matching grants from the School Construction and Renovation Fund. Committee members received copies of the list (Attachment O). Discussion ensued regarding the process by which the projects on the list are prioritized for funding. Mr. Hughes responded to questions regarding the authority of the State Board of Education to approve or deny the projects on the list.


BILL:	K-12 Capital Construction Projects
TIME:	03:01:02 PM
MOVED:	Windels
MOTION:	Approve the State Board of Education's list of K-12 school districts recommended to receive matching grants from the School Construction & Renovation Fund (Attachment O, page 1). The motion passed on a 6-0 vote.
SECONDED:
		VOTE
	Berens	Yes
	McElhany	Yes
	McFadyen	Yes
	Windels	Yes
	Bacon	Yes
	Riesberg	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:02 PM -- University of Colorado at Boulder Business School Renovation and Addition Supplemental Request

Mr. Robert Moore, Vice-President of Budget and Finance, University of Colorado system, presented a supplemental request for additional cash funds exempt spending authority to construct an annex to the College of Business Building, and renovate space in the existing building. Committee members received a description of the request, prepared by Legislative Council Staff (Attachment P). Mr. Moore explained why additional spending authority was necessary and the sources for the additional funds. Discussion ensued regarding the project's timeline, and the pricing of certain elements of the project.


BILL:	University of Colorado at Boulder Supplemental Request
TIME:	03:10:10 PM
MOVED:	Bacon
MOTION:	Approve the supplemental request from the University of Colorado at Boulder for additional spending authority in FY 2005-06 for the Business School Renovation and Addition project ($3.76 million CFE). The motion passed on a 6-0 vote.
SECONDED:
		VOTE
	Berens	Yes
	McElhany	Yes
	McFadyen	Yes
	Windels	Yes
	Bacon	Yes
	Riesberg	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:12 PM -- Discussion of Potential Committee Hearing Dates

The committee discussed potential hearing dates for FY 2006-07 supplemental requests and FY 2007-08 capital construction requests, as well as the timeline for a change in the committee's membership. The committee agreed to meet on the dates established in an agenda prepared by Legislative Council Staff (Attachment Q). The committee next discussed potential dates for touring state facilities during the interim, and the planned times for committee meetings during the legislative session. Ms. Moe briefed the committee on documents distributed to the committee, including a report from the Colorado Commission on Higher Education (CCHE) detailing various higher education projects not subject to CCHE review (Attachment R); a memorandum listing information technology projects prioritized by the Commission on Information Management (Attachment S); a memorandum providing an overview of FY 2007-08 capital construction requests, prepared by Legislative Council Staff (Attachment T); and a memorandum about available revenue for FY 2007-08 capital projects, prepared by Legislative Council Staff (Attachment U). Discussion ensued regarding the state's total debt capacity.

03:26 PM

The committee adjourned.