Joint Committee Committee on Capital Development (08/02/2010)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	08/02/2010	ATTENDANCE

Time:	09:03 AM to 10:22 AM	Renfroe	*
		Schwartz	X
Place:	Grant Humphreys Mansion	Sonnenberg	X
		Vigil	X
This Meeting was called to order by		Riesberg	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:
Division of Wildlife Consideration of Real Property Transactions University of Colorado at Boulder Revised Two-Year List Capitol Building Advisory Committee Recommendations (2) Senate Bill 10-207 Update		Pass Pass Pass Witness Testimony and/or Committee Discussion Only

09:04 AM -- Consideration of Real Property Transactions, Division of Wildlife

The meeting was called to order. This is the only record of the meeting; no recording was made. Mr. Ed Nichols, President and Chief Executive Officer, Colorado Historical Society, welcomed the committee to the Grant Humphreys Mansion. Senator Schwartz gave some history of the Humphreys family and their connection to her Senate district.

09:07 AM

Mr. Grady McNeill, Resource Support Section Manager, and Ms. Anne Kelson, Real Estate Unit Supervisor, both of the Division of Wildlife, presented three real property transactions, including: (1) Bighorn Springs State Wildlife Area and Ruby Mountain State Wildlife Area; (2) Glenwood Springs Area 8 Service Center; and (3) Grand View Ranch State Wildlife Area. Committee members received summaries of the transactions, prepared by Legislative Council Staff (Attachments A, B, and C, respectively). Mr. McNeill first presented the Bighorn Springs State Wildlife Area and Ruby Mountain State Wildlife Area perpetual fishing easements. He told the committee about big game population objectives in the area. Ms. Kelson addressed a question about whether the property is outside the scope of potential energy development areas. Mr. McNeill responded to a question about how the Ruby Mountain State Wildlife Area property will be accessed.


BILL:	Division of Wildlife
TIME:	09:13:02 AM
MOVED:	Schwartz
MOTION:	Recommend support for the acquisition of two perpetual public fishing access easements at Bighorn Springs and Ruby Mountain State Wildlife Areas (1 acre). The motion carried on a vote of 5-0-1.
SECONDED:
		VOTE
	Renfroe	Excused
	Schwartz	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

09:13 AM

Mr. McNeill next presented the Glenwood Springs Area 8 Service Center transaction. Mr. McNeill distributed two letters of concurrence (appended to Attachment B) and told the committee that the division had received verbal concurrence for the transaction from Senator Al White. He then told the committee about the big game population objectives in the area. In response to a question, Mr. McNeill told the committee that once the division has signed the 40-year land lease for the property, it will pursue construction of a new service center. The division will then seek to acquire the property. Mr. McNeill also told the committee that the division is in the process of finalizing the terms of the lease and if the division opts to terminate the lease, it will be able to sell the land to recover its investment. He clarified that this is not the division's intent.


BILL:	Division of Wildlife
TIME:	09:20:53 AM
MOVED:	Schwartz
MOTION:	Recommend support for a 40-year land lease with an option to purchase for the relocation and future construction of the Glenwood Springs Area 8 Service Center ($60,000 CF for 3.793 acres). The motion carried on a vote of 6-0.
SECONDED:
		VOTE
	Renfroe	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

09:21 AM

Mr. McNeill presented the Grand View Ranch State Wildlife Area fee title acquisition. He told the committee about the big game population objectives in the area and responded to questions about the size of the resident elk herd. Discussion commenced about the type of license required to hunt on the property. Mr. McNeill and Ms. Kelson responded to questions about whether the division could sell the property and retain a conservation easement so the property could be used as ranch land. Discussion continued on this topic and on the need for a buffer for a shooting range located adjacent to the property. Discussion ensued about privately owned land in the vicinity and whether area ranchers may want to purchase the property for grazing purposes.

09:32 AM

Ms. Kelson addressed questions about the use of the terminology "outside the scope" to describe whether potential property transactions are subject to future energy development. She also explained that the mineral rights of the Grand View property have been entirely severed form the surface estate of the parcel. Discussion turned to how the value of this and other potential property transactions are appraised by the division. Representative Riesberg explained that the role of the committee in considering potential property transactions is advisory only.


BILL:	Division of Wildlife
TIME:	09:38:55 AM
MOVED:	Riesberg
MOTION:	Recommend support for the purchase of the Grand View Ranch State Wildlife Area Fee Title Acquisition ($2,200,000 CF for 940 acres). The motion carried on a vote of 4-2.
SECONDED:
		VOTE
	Renfroe	No
	Schwartz	Yes
	Sonnenberg	No
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 4 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

09:39 AM -- University of Colorado at Boulder Revised Two-Year List

Ms. Kelly Fox, Vice-President for Budget and Finance, University of Colorado System, present a revised two-year projection of cash need for the University of Colorado at Boulder (CU Boulder). Committee members received a summary of the revised and original request, prepared by Legislative Council Staff (Attachment D). The original request was revised to include one new project: the acquisition and renovation of a building located at 3665 Discovery Drive. In response to a question, Ms. Fox described the location of the new building in the East Campus Research Park. She also responded to a question about how the moneys for the project would be spent if not used to purchase and renovate the building. Ms. Fox explained the need for additional research space on the campus. She next answered questions about whether other properties were available for purchase at a better price in the area. She also clarified that the building infrastructure is research-lab ready. Ms. Fox explained that the land is already owned by the CU System and that the university wants to start building out the east campus. Discussion turned to the building's current occupants and how the purchase price was established for the building.


BILL:	University of Colorado at Boulder
TIME:	09:46:57 AM
MOVED:	Riesberg
MOTION:	Approve the University of Colorado at Boulder's Revised Two-Year Projection of Cash Need, with the addition of the 3665 Discovery Drive project ($15,076,252 CF). The motion carried on a vote of 6-0.
SECONDED:
		VOTE
	Renfroe	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

09:47 AM -- Capitol Building Advisory Committee Recommendation

Ms. Georgianna Contiguglia, Chair, Capitol Building Advisory Committee (CBAC), presented two advisory recommendations for the committee's consideration, including: (1) the indefinite extension of the Creative Capitol art exhibit in the basement rotunda of the State Capitol building; and (2) a fund-raising proposal from Colorado Preservation, Inc. (CPI) for repairs to the State Capitol dome. Committee members received a letter from CBAC concerning these recommendations, prepared by Legislative Council Staff (Attachment E). Ms. Contiguglia explained that the Creative Capitol exhibit was originally approved for a period of one year. She added that the cost of the exhibit is entirely borne by the Colorado Council on the Arts (council) and that the council oversees the installation of the exhibits. She described the discussion the CBAC had regarding the decision to recommend that the exhibit be extended indefinitely and explained that the memorandum of understanding between the CBAC and the council allows for either party to terminate the agreement for due cause. Representative Vigil disclosed his membership on the council board. Discussion commenced about the selection of artwork for past and future exhibits.


BILL:	Capitol Building Advisory Committee
TIME:	09:53:40 AM
MOVED:	Riesberg
MOTION:	Approve the recommendation of the Capitol Building Advisory Committee to extend indefinitely the Creative Capitol rotating art exhibit in the basement rotunda of the State Capitol building. The motion carried on a vote of 6-0.
SECONDED:
		VOTE
	Renfroe	Yes
	Schwartz	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

09:53 AM

Mr. James Hare, Executive Director, CPI, joined Ms. Contiguglia at the table to discuss the fund-raising proposal for repairs to the State Capitol dome. Committee members received a copy of the fund-raising proposal dated August 2, 2010 (Attachment F). Ms. Contiguglia described the review of the fund-raising proposal undertaken by CBAC. She next outlined the revisions to the proposal suggested by CBAC (see page 2 of Attachment E) and explained that the suggested revisions were incorporated into the August 2, 2010, draft of the fund-raising proposal. Discussion turned to how moneys raised by CPI will be transferred to the state. Ms. Contiguglia next explained that the CBAC approved the creation of a sub-committee to consider whether the use of the fund-raising logo by project sponsors is tasteful and appropriate. Discussion ensued. She added that Mr. Hare has agreed to regularly attend CBAC meetings to update the committee about fund-raising efforts. Discussion ensued about the various reporting requirements included in House Bill 10-1402.

10:04 AM

Discussion continued on the topic of the creation of a sub-committee. Mr. Hare clarified the objective of the sub-committee and explained that a smaller committee could be available to meet more frequently to answer questions as they arise. He explained that there could be as many as 150 advertisements carrying the fund-raising logo and that corporate sponsors may need a more rapid response to advertising questions than is possible with the regular committee meeting schedule. Discussion continued on this topic. Ms. Contiguglia commended CPI for the good working relationship they have established with CBAC. Discussion turned to the rights and benefits for various levels of sponsorship and recognition of the efforts of CPI thus far in the process of establishing a fund-raising campaign.


BILL:	Capitol Building Advisory Committee
TIME:	10:13:36 AM
MOVED:	Riesberg
MOTION:	Accept the Colorado Preservation, Inc. fund-raising proposal draft dated August 2, 2010, and accept the recommendation of the Capitol Building Advisory Committee regarding the fund-raising proposal. Furthermore, accept the recommendation from the Capitol Building Advisory Committee to create a taskforce to oversee decisions about the use of the fund-raising logo in advertising by various sponsors. The motion passed on a vote of 4-2-0.
SECONDED:
		VOTE
	Renfroe	No
	Schwartz	Yes
	Sonnenberg	No
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 4 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

10:15 AM

Senator Bacon asked the Office of Legislative Legal Services to prepare a contract concerning the fund-raising proposal for the committee's review at its September 8, 2010, meeting.

10:16 AM -- Senate Bill 10-207 Update

Mr. Brett Johnson, Energy Manager, Governor's Energy Office (GEO), and Mr. Rod Vanderwall, Energy Manager, Office of the State Architect, Department of Personnel and Administration, discussed an upcoming capital submission resulting from the passage of Senate Bill 10-207. Senate Bill 10-207 authorizes the state to enter into lease-purchase agreements to finance capital construction projects proposed by GEO in order to improve the energy efficiency of state facilities. Mr. Johnson discussed the cost savings that can be realized through financing energy efficiency projects. He outlined the role of the Capital Development Committee in the approval of projects for financing and explained GEO's timeline. He then responded to a question about the Xcel Energy tiered approach to billing based on energy consumption.

10:22 AM

The committee discussed its next meeting: September 8, 2010. The committee adjourned.