Joint Committee Committee on Capital Development (10/25/2010)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	10/25/2010	ATTENDANCE

Time:	09:00 AM to 11:22 AM	Renfroe	X
		Schwartz	E
Place:	SCR 356	Sonnenberg	X
		Vigil	X
This Meeting was called to order by		Riesberg	X
	Senator Bacon	Bacon	X

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

Bills Addressed:		Action Taken:
Community Colleges Revised Two-Year Projection of Cash Need Office of Information Technology Six-Month Encumbrance Waiver Division of Wildlife Real Property Transactions (5) Update on Capitol Dome Fund Raising Share in the Care Advertising Review Task Force		Pass Pass Pass Witness Testimony and/or Committee Discussion Only Pass

09:01 AM -- Community Colleges Revised Two-Year Projection of Cash Need

The meeting was called to order. A quorum was present. Mr. Cliff Richardson, Vice President of Finance and Administration, Colorado Community Colleges System, and Mr. Andy Dorsey, President, Front Range Community College (FRCC), presented the Westminster Campus Renovation project at FRCC, which requires a revision to the Community College two-year projection of cash need. Committee members received copies of the revised list, prepared by Legislative Council Staff (Attachment A). Mr. Dorsey discussed the need for the renovation project and explained the work to be done. Mr. Dorsey responded to questions regarding the time line for the project, and the project's cash funding source. Discussion ensued regarding tuition at FRCC, and community colleges in general.


BILL:	Community Colleges Revised Two-Year Projection of Cash Need
TIME:	09:10:33 AM
MOVED:	Riesberg
MOTION:	Approve the request of the Community Colleges System to revise its two-year projection of cash need list to include the addition of the Front Range Community College Westminster Campus Renovation project. The motion passed on a 4-1-1 roll call vote.
SECONDED:
		VOTE
	Renfroe	Yes
	Schwartz	Excused
	Sonnenberg	No
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 4 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS

09:11 AM -- Office of Information Technology Six-Month Encumbrance Waiver

Mr. Todd Olson, Chief Financial Officer, Governor's Office of Information Technology, presented a request to waive the six-month encumbrance deadline for the Replace Microwave Site Towers project. Committee members received a written description of the request, prepared by Legislative Council Staff (Attachment B). Mr. Olson responded to questions regarding potential cost changes for the project due to delays in starting construction.


BILL:	Office of Information Technology Six-Month Encumbrance Waiver
TIME:	09:14:03 AM
MOVED:	Sonnenberg
MOTION:	Approve the request from the Office of Information Technology to waive the six-month encumbrance rule for the Replace Microwave Site Towers project ($800,614 CF), contingent upon approval by the Office of State Planning and Budgeting. The motion passed on a 5-0-1 roll call vote.
SECONDED:
		VOTE
	Renfroe	Yes
	Schwartz	Excused
	Sonnenberg	Yes
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

09:14 AM -- Division of Wildlife Real Property Transactions

Mr. Grady McNeill, Resource Support Section Manager, and Ms. Anne Kelson, Real Estate Unit Supervisor, Department of Natural Resources, Division of Wildlife (DOW), presented five real property transactions. Mr. Pat Miks, Budget Manager for the division, responded to opening questions regarding funding for real property transactions from the Great Outdoors Colorado (GOCO) program. Mr. McNeill first discussed the Gelvin Ranch Public Access and Conservation Easement request. Committee members received a description of the request and supporting documentation, prepared by the DOW and Legislative Council Staff (Attachment C). Mr. McNeill discussed reservations about the real property transaction raised by Senator Brophy, and the objectives of acquiring the easement. Mr. Tom Crane, Brush Area Wildlife Manager for the DOW, responded to questions regarding landowner compensation rates for walk-in hunting on conservation easement land, and headcounts for wildlife on the Gelvin Ranch property. Discussion ensued regarding rates for hunting on other properties in the area.

09:27 AM

Ms. Kelson responded to questions regarding the time sensitive nature of the Gelvin acquisition, and the original purchase price of the ranch for the current owners. Ms. Kelson responded to further questions regarding the basis for appraising conservation easements. Discussion ensued regarding the need to move forward with the easement acquisition, and the involvement of the Nature Conservancy in the transaction. Discussion followed regarding real estate costs in the region surrounding the Gelvin Ranch, and prices charged for private hunting trips in the area.

09:38 AM

Discussion continued regarding real estate prices in the Gelvin Ranch area, and the price for the easement on the ranch in comparison to its appraised value. Ms. Kelson provided further information regarding the DOW's appraisal process when acquiring real property interests. Mr. McNeill responded to questions regarding the division's goals for acquiring property interests for hunting purposes on the eastern plains, and discussed the evolving nature of hunting in the western United States. Discussion ensued regarding the market for hunting trips.

09:48 AM

Discussion ensued regarding the current real estate market, and its bearing on prices paid for acquiring real property interests by the DOW. Discussion followed regarding the committee's role in making recommendations pertaining to DOW real property transactions.


BILL:	Division of Wildlife Real Property Transactions
TIME:	09:50:58 AM
MOVED:	Sonnenberg
MOTION:	Remove the Gelvin Ranch Public Access and Conservation Easement from consideration by the committee, to be heard at a later date. The motion failed on a 2-3-1 roll call vote.
SECONDED:
		VOTE
	Renfroe	Yes
	Schwartz	Excused
	Sonnenberg	Yes
	Vigil	No
	Riesberg	No
	Bacon	No
Not Final YES: 2 NO: 3 EXC: 1 ABS: 0 FINAL ACTION: FAIL


BILL:	Division of Wildlife Real Property Transactions
TIME:	09:51:25 AM
MOVED:	Riesberg
MOTION:	Recommend to the Wildlife Commission the acquisition of the Gelvin Ranch Public Access and Conservation Easement. The motion passed on a 3-2-1 roll call vote.
SECONDED:
		VOTE
	Renfroe	No
	Schwartz	Excused
	Sonnenberg	No
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 3 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS

09:52 AM

Mr. McNeill presented a proposal to acquire a conservation easement on the New Beginnings Ranch in San Miguel County. Committee members received a written description of the proposal and supporting documentation, prepared by the DOW and Legislative Council Staff (Attachment D). Mr. McNeill responded to questions regarding changes to the use of the New Beginnings Ranch in recent years, and the possibility of preserving Gunnison sage grouse on the property without acquiring a conservation easement. Mr. McNeill responded further to questions regarding Representative Tipton's opinion of the proposed transaction.


BILL:	Division of Wildlife Real Property Transactions
TIME:	09:57:14 AM
MOVED:	Vigil
MOTION:	Recommend to the Wildlife Commission the acquisition of the New Beginnings Ranch Conservation Easement. The motion passed on a 3-2-1 roll call vote.
SECONDED:
		VOTE
	Renfroe	No
	Schwartz	Excused
	Sonnenberg	No
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 3 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS

09:58 AM

Mr. McNeill presented a proposal to acquire a public access and conservation easement on the Shallow River Ranch near Burlington. Committee members received a written description of the proposal and supporting documentation, prepared by the DOW and Legislative Council Staff (Attachment E). Mr. McNeill responded to questions regarding the abundance of wildlife on the property, and the owners of properties adjacent to the ranch. Mr. Cory Chick, DOW Colorado Springs Area Wildlife Manager, responded to questions regarding the adjacent property owners and property uses. Ms. Kelson responded to questions regarding the number of acres contained in an inholding on the easement, the owner of the inholding, and access arrangements for the inholding. Discussion ensued regarding water rights associated with a pond on the Shallow River Ranch property. Mr. McNeill responded to questions regarding the impact of acquiring the easement on the property owner's participation in the federal Conservation Reserve Program.

10:10 AM

Mr. McNeill responded to questions regarding the disparity in price-per-acre to be paid for the various real estate transactions.


BILL:	Division of Wildlife Real Property Transactions
TIME:	10:11:04 AM
MOVED:	Riesberg
MOTION:	Recommend to the Wildlife Commission the acquisition of the Shallow River Ranch Public Access and Conservation Easement. The motion passed on a 3-2-1 roll call vote.
SECONDED:
		VOTE
	Renfroe	No
	Schwartz	Excused
	Sonnenberg	No
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 3 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS

10:11 AM

Mr. McNeill presented a proposal to acquire the Gunnison Rising Mitigation/Signal Peak Conservation Easement donation. Committee members received a written description of the proposal and supporting documentation, prepared by the DOW and Legislative Council Staff (Attachment F). Discussion ensued regarding the ownership of open space adjacent to the proposed easement property. Mr. McNeill responded to questions regarding the reasons the developers of the Gunnison Rising residential project are making a conservation easement donation.


BILL:	Division of Wildlife Real Property Transactions
TIME:	10:18:24 AM
MOVED:	Vigil
MOTION:	Recommend to the Wildlife Commission the acquisition of the Gunnison Rising Mitigation/Signal Peak Access and Conservation Easement. The motion passed on a 5-0-1 roll call vote.
SECONDED:
		VOTE
	Renfroe	Yes
	Schwartz	Excused
	Sonnenberg	Yes
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

10:19 AM

Mr. McNeill presented a proposal to acquire the Twenty Mile Sheep Conservation Easement near Hayden. Committee members received a written description of the proposal and supporting documentation, prepared by the DOW and Legislative Council Staff (Attachment G). Discussion ensued regarding the purchase price for the easement, and the factors that impact the price. Mr. McNeill responded to a question about the future use of the property once an easement is placed on it.


BILL:	Division of Wildlife Real Property Transactions
TIME:	10:25:22 AM
MOVED:	Vigil
MOTION:	Recommend to the Wildlife Commission the acquisition of the Twenty Mile Sheep Conservation Easement. The motion passed on a 3-2-1 roll call vote.
SECONDED:
		VOTE
	Renfroe	No
	Schwartz	Excused
	Sonnenberg	No
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 3 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS

10:26 AM -- Update on Capitol Dome Fund Raising

Mr. Jim Hare, Colorado Preservation, Inc., provided an update on the time line for the Share in the Care Capitol dome fund-raising campaign. Committee members received a written time line for the campaign (Attachment H), and a proposal for a fund drive in Colorado schools (Attachment I), both prepared by Colorado Preservation, Inc. Mr. Hare discussed upcoming presentations that he will be making to prospective donors, and other fund-raising developments. Discussion ensued regarding potential sponsorship of the campaign by State Bill Colorado, and the need for the committee to approve the sponsorship. Mr. Hare returned to briefing the committee on fund-raising developments.

10:36 AM

Mr. Hare responded to questions regarding the timing involved in notifying the public of the Share in the Care campaign, and how the proposal by the Colorado Education Association was conceived. Discussion ensued regarding the ramifications of involving the Colorado Education Association in the Share in the Care campaign.

10:46 AM

Discussion continued regarding the ramifications of including the Colorado Education Association in dome fund-raising. Discussion followed regarding other philanthropic partnerships with corporate entities. Mr. Hare responded to questions regarding the Share in the Care sponsorship levels available to potential donors, and the costs associated with each level. Discussion ensued regarding the benefits associated with each sponsorship level.

10:58 AM -- Share in the Care Ad Review Task Force

The committee next discussed with Mr. Hare the need to appoint a task force to review advertisements associated with the Share in the Care campaign. Committee members received copies of an e-mail transmission between Legislative Council Staff and Office of State Planning and Budgeting staff regarding the Governor's Office appointment to the task force (Attachment J), and a letter addressed to the committee chair from Ms. Georgianna Contiguglia expressing interest in serving on the task force (Attachment K). Committee members also received copies of the Share in the Care Campaign draft sponsorship policy, prepared by Colorado Preservation, Inc. (Attachment L). Ms. Lisa Esgar, Office of State Planning and Budgeting, brought forward some concerns about the time line for the Share in the Care campaign. Mr. Hare weighed in on these concerns, and discussed the overall financing of the dome renovations. Mr. Ed Nichols, representing History Colorado, provided input on the project's financing and its impact on the State Historical Fund. Discussion ensued regarding the potential for cause-marketing efforts to be used to repay the State Historical Fund, and the fund's obligations should fund-raising fall short of goals.

11:08 AM

Discussion continued regarding financing the Capitol Dome Restoration project, and timing for fund-raising. Discussion ensued regarding the need to appoint members of the advertising review task force, and the persons appointed by constituent parties. The committee then discussed its representative on the task force.


BILL:	Share in the Care Ad Review Task Force
TIME:	11:12:35 AM
MOVED:	Bacon
MOTION:	Appoint Representative Riesberg as the Capital Development Committee member on the Share in the Care Advertising Review Task Force, until the committee's December meeting, The motion passed on a 5-0-1 roll call vote.
SECONDED:
		VOTE
	Renfroe	Yes
	Schwartz	Excused
	Sonnenberg	Yes
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

11:13 AM

Discussion ensued regarding the role of the committee in Colorado Preservation, Inc.'s fund-raising efforts, and the need to expedite the process. Discussion returned to the Colorado Education Association's participation as a sponsor, and proper vetting of potential sponsors in light of the approved sponsorship guidelines. Mr. Hare discussed the fund-raising campaign's goals.

11:22 AM

The committee adjourned.