Joint Committee Committee on Capital Development (09/08/2010)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	09/08/2010	ATTENDANCE

Time:	09:03 AM to 11:30 AM	Renfroe	*
		Schwartz	X
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
	Kori Donaldson
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Division of Wildlife Real Property Transactions (4) Colorado School of Mines Supplemental Request CU Denver Two-Year Projection of Cash Need Revision CU Denver Supplemental Request Colorado State University -- Pueblo Supplemental Request Dept. of Personnel and Administration Supplemental Requests (2) State Capitol Dome Renovation Fund-Raising Taskforce and Contract Capitol Building Advisory Committee Recommendation Community Colleges Two-Year Projection of Cash Need Revision Other Business		Pass Pass Pass Pass Pass Pass Pass Pass Pass Witness Testimony and/or Committee Discussion Only

09:03 AM -- Division of Wildlife

The committee was called to order. A quorum was present. Mr. Grady McNeill, Resource Support Section Manager, Division of Wildlife (DOW), Department of Natural Resources, presented four real property transactions. Mr. McNeill first explained the Red Hawk Ranch Too Conservation Easement transaction. Committee members received a packet of information on the transaction, prepared by the DOW and assembled by Legislative Council Staff (Attachment A). Mr. McNeill responded to questions regarding road access to the site, and responsibility for maintaining such access.


BILL:	Division of Wildlife
TIME:	09:08:16 AM
MOVED:	Riesberg
MOTION:	Recommend support for the donation of the Red Hawk Ranch Too Conservation Easement (1,000 acres). The motion passed 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

09:09 AM

Mr. McNeill next explained the Taylor Flat Conservation Easement transaction proposal. Committee members received a packet of information on the transaction, prepared by the DOW and assembled by Legislative Council Staff (Attachment B).


BILL:	Division of Wildlife
TIME:	09:10:45 AM
MOVED:	Riesberg
MOTION:	Recommend support for the donation of the Taylor Flat Perpetual Conservation Easement (640 acres). The motion passed 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

09:11 AM

Mr. McNeill next discussed both the El Estates de Dos Hermanas and Clift Fee Title acquisition proposals. Committee members received packets of information on the transactions, prepared by the DOW and assembled by Legislative Council Staff (Attachments C and D). Ms. Anne Kelson, Real Estate Unit Supervisor, DOW, provided information on appraisals performed on the two properties to be acquired under the proposals, and the DOW's appraisal process. Discussion ensued regarding efforts on the part of the landowners to sell these properties on the open market, and the potential for purchasing conservation easements on the properties.

09:21 AM

Ms. Kelson responded to questions regarding inquiries made by the DOW about the market history of a property when acquiring fee title. Ms. Kelson responded to further questions regarding the comparable property values considered during the appraisals on the El Estates de Dos Hermanas and Clift properties. Discussion ensued regarding the DOW's property acquisition process in general. Discussion followed regarding the impact of property acquisition by the DOW on county property tax revenues, and options for ensuring counties recoup tax losses when the DOW acquires properties by fee title. Mr. McNeill explained the impact assistance process for counties. Ms. Kelson responded to additional questions regarding the ownership history of the two properties.

09:32 AM

Ms. Kelson responded to questions regarding mineral interest ownership of the El Estates de Dos Hermanas and Clift properties.


BILL:	Division of Wildlife
TIME:	09:34:56 AM
MOVED:	Vigil
MOTION:	Recommend support for the purchase of the Clift Fee Title Acquisition ($227,000 CF for 279 acres) and the purchase of the El Estates de Dos Hermanas Fee Title Acquisition ($3,865,000 CF for 4,069 acres). The motion passed 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

09:36 AM -- Colorado School of Mines

Ms. Kirsten Volpi, Senior Vice President for Finance and Administration, Colorado School of Mines, presented an FY 2010-11 supplemental capital construction request for additional cash funds spending authority for the Marquez Hall Petroleum Engineering Building. Committee members received a written description of the proposal, prepared by Legislative Council Staff (Attachment E). Ms. Volpi discussed the source of cash funds for the supplemental request.


BILL:	Colorado School of Mines
TIME:	09:39:37 AM
MOVED:	Riesberg
MOTION:	Approve the supplemental request for additional cash funds spending authority for the Marquez Hall Petroleum Engineering Building project ($17,600,000 CF). The motion passed 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

09:40 AM -- University of Colorado Denver Revised Two-Year Projection of Cash Need

Ms. Kelly Fox, Vice President for Budget and Finance, University of Colorado Denver, presented a request to revise the university's FY 2010-11 and FY 2011-2012 two-year projection of cash need list. Committee members received a revised copy of the list, prepared by Legislative Council Staff (Attachment F). Ms. Fox discussed the project involved in the revision, the Central Utility Plant Purchase and Expansion project, and responded to questions regarding the need for the project. Ms. Fox responded to further questions regarding the contractor on the project, and the tax impact of the project.


BILL:	University of Colorado Denver
TIME:	09:44:33 AM
MOVED:	Riesberg
MOTION:	Approve the Revised Two-Year Projection of Cash Need, with the addition of the Central Utility Plant Purchase and Expansion project ($46,000,000 CF). The motion passed 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

09:45 AM -- University of Colorado Denver Supplemental Request

Ms. Fox next discussed a FY 2010-11 supplemental request for additional cash funds spending authority for the Lazzara Center for Oral-Facial Health 4th Floor Addition. Committee members received a written description of the proposal, prepared by Legislative Council Staff (Attachment G). Ms. Fox responded to questions regarding the impact of not approving the supplemental request on student tuition and fees, and the funding sources for the 4th floor addition. Discussion ensued regarding the project's impact on the university's dental program.


BILL:	University of Colorado Denver
TIME:	09:53:38 AM
MOVED:	Riesberg
MOTION:	Approve the supplemental request for additional cash funds spending authority for the Lazzara Center for Oral-Facial Health 4th Floor Addition 202 Project ($4,209,273 CF). The motion passed 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

09:54 AM -- Colorado State University -- Pueblo

Mr. Rich Schweigert, Chief Financial Officer, Colorado State University System, presented a negative supplemental request for the Occhiato University Center Renovation project. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment H).


BILL:	Colorado State University -- Pueblo
TIME:	09:56:53 AM
MOVED:	Vigil
MOTION:	Approve the negative cash-funded supplemental request to rescind the entire FY 2008-09 appropriation for the Occhiato University Center Renovation 202 Project (-$22,710,904 CF). The motion passed 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

09:58 AM -- Department of Personnel and Administration

Ms. Kori Donaldson, Legislative Council Staff, presented an emergency supplemental request for the Replace Fire Alarm System, 1570 Grant project and explained the need for a technical correction to the Long Bill. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment I).


BILL:	Department of Personnel and Administration
TIME:	09:58:37 AM
MOVED:	Riesberg
MOTION:	Approve the supplemental request to append footnote "a" to the Replace Fire Alarm System, 1570 Grant line item in the 2010 Long Bill (House Bill 10-1376). The motion passed 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

09:59 AM -- Department of Personnel and Administration

Mr. Larry Friedberg, State Architect, Department of Personnel and Administration, presented an emergency supplemental request for the State Capitol dome renovation project. Committee members received a summary of the request, prepared by Legislative Council Staff (Attachment J). Mr. Friedberg provided an overview of the needed renovations. He next gave an overview of the phased approach of the project and the current and future requests for the project. Mr. Friedberg explained that the plan is to have scaffolding in place in April 2011 and that he will present a scaffolding configuration to the committee in January 2011. After the scaffolding is installed, the project engineers will conduct a forensic study of the damage to the cast iron structure.

10:09 AM

Discussion turned to the scrim that will cover the scaffolding. Mr. Friedberg addressed questions about how repairs will be made to the cast iron structure. He explained that the renovations will be made from the top down for each of the 16 segments. In response to a question about the possibility that the damage to the dome is worse than anticipated, Mr. Friedberg said he will be providing frequent updates to the committee. He reminded the committee that the main structure of the rotunda is stone and that support for the dome structure rises from the sub-basement of the building. Therefore he doesn't anticipate any structural integrity issues with the dome itself, only with how the cast iron is attached to the dome. Discussion continued about the possibility of additional repair work and the likely response to unforeseen contingencies.


BILL:	Department of Personnel and Administration
TIME:	10:14:22 AM
MOVED:	Sonnenberg
MOTION:	Approve the supplemental request for cash funds spending authority for Phase I of III of the State Capitol dome renovation project ($3,955,375 CF). The motion carried on a vote of 5-1.
SECONDED:
		VOTE
	Renfroe	No
	Schwartz	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 5 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

10:15 AM -- State Capitol Dome Renovation Fund-Raising Oversight Task Force

Ms. Donaldson reminded the committee that at its last meeting it moved to appoint a task force to review advertisements using the Share in the Care logo or trademark. She next outlined recommendations made by the Executive Committee of the Legislative Council regarding the task force, including: (1) the appointment of someone from the Governor's office; (2) the inclusion of Legislative Council Staff in the process of coordinating and recording recommendations made by the task force; and (3) the use of concurrence letters to indicated support for possible advertising by members of the task force. Ms. Donaldson responded to questions from the committee about these recommendations. She explained that House Bill 10-1402 requires that advertisements be "tasteful and appropriate" and that the committee previously approved a Sponsorship Policy as part of the fund-raising proposal submitted by Colorado Preservation, Inc. (CPI).

Ms. Debbie Haskins, Senior Attorney, Office of Legislative Legal Services, came to the table to address questions about the role of the task force and the legislation authorizing fund-raising for the State Capitol dome renovation project. She explained that it may be cumbersome for the entire committee to review every possible advertisement because there will likely be many possible advertisements to consider. Ms. Haskins suggested that one member of the Capital Development Committee could also participate on the task force and report on their proceedings. She reiterated that the Sponsorship Policy sets parameters for acceptable advertising. Discussion ensued about guiding principles dictating the approval or disapproval of various advertisements.

10:25 AM

Mr. Jim Hare, Executive Director, CPI, came to the table to discuss the task force. He explained that he would like an independent body to review possible advertisements. He responded to questions about how quickly this review would be required. Discussion ensued. Mr. Hare gave an example of a situation in which an accelerated review of an advertising campaign may be necessary. Representative Riesberg expressed reservations about giving decision-making authority concerning possible advertisements to a three-person committee and said the reporting requirements in House Bill 10-1402 give a lot of responsibility to various committees to oversee decisions related to the fund-raising campaign. Mr. Hare clarified that there will be no advertisements on the scrim of the scaffolding surrounding the dome. He said the intent of the task force is to look at the minutia of the advertising campaigns and said he was concerned that the volume of advertisements to be reviewed would overwhelm the committee. In response to a question, Mr. Hare offered additional examples of the type of advertising that might be reviewed by the committee or by an appointed task force.

10:35 AM

Discussion continued about the task force and reporting requirements specified in Senate Bill 10-192 and House Bill 10-1402. Representative Riesberg suggested that the committee could oversee the initial work of the task force. Ms. Haskins and Ms. Donaldson both made suggestions about the possible oversight and organization of the task force. Discussion continued on this topic.

10:45 AM

Mr. Hare clarified that in the vast majority of cases the review of possible advertising will not be time sensitive. He added that if the approval of an advertisement is time sensitive, it could be distributed electronically to the committee so its approval can be expedited. The committee agreed to appoint task force members at its next meeting. The committee discussed possible representation on the task force.

10:50 AM

Discussion turned to the appointment of someone from the Governor's office to the task force. Discussion returned to the various reporting requirements included in Senate Bill 10-192 and House Bill 10-1402. Discussion continued about the role of the task force.


BILL:	State Capitol Dome Renovation Fund-Raising Oversight Task Force
TIME:	10:53:42 AM
MOVED:	Riesberg
MOTION:	Form a task force to review cause-related marketing advertising proposals. The task force shall consist of one member to be designated by the Governor's office, one member to be designated by the Capitol Building Advisory Committee, and one member to be designated by the Capital Development Committee. Those interested in participating in the task force should indicate their interest before the next meeting of the committee. The committee shall make appointments to the task force at its October 25, 2010, meeting. The motion passed 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

10:54 AM -- State Capitol Dome Renovation Fund-Raising Contract

Mr. Bart Miller, Office of Legislative Legal Services, briefed the committee on the draft contract between the Colorado General Assembly and CPI for services pertaining to fund-raising on the Capitol dome restoration project. Committee members received a draft copy of the contract (Attachment K). Mr. Miller responded to a question regarding the frequency with which the General Assembly enters into contracts. Discussion ensued regarding language in the draft contract pertaining to the Fund-Raising Oversight Task Force and its duties. Discussion followed regarding language in the draft contract pertaining to compensation to be paid to CPI.

11:05 AM

Discussion continued regarding compensation to be paid to CPI under the contract, and the basis for this compensation. Discussion ensued regarding the contract's allowance for additional sources of funding outside of those contemplated in the contract, such as funding from governmental entities, and the impact of these funding sources on CPI's compensation. Mr. Ed Nichols, representing the Colorado Historical Society, provided input on the contract from the perspective of the State Historic Fund.


BILL:	State Capitol Dome Renovation Fund-Raising Contract
TIME:	11:12:07 AM
MOVED:	Riesberg
MOTION:	Approve the contract between the Colorado General Assembly and Colorado Preservation, Inc. (CPI) concerning fund-raising for the State Capitol dome restoration project, with conceptual amendments to conform the process of approving cause-related marketing to House Bill 10-1402 and to address compensation for CPI associated with various fund sources; allow the Office of Legislative Legal Services to make technical changes to the contract, including updating the names of the signatories, as necessary; and recommend the contract to the Speaker and President for their signatures. The motion passed on a 5-1 vote.
SECONDED:
		VOTE
	Renfroe	No
	Schwartz	Yes
	Sonnenberg	Yes
	Vigil	Yes
	Riesberg	Yes
	Bacon	Yes
Final YES: 5 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:13 AM -- Capitol Building Advisory Committee Recommendation

Ms. Georgianna Contiguglia, Capitol Building Advisory Committee, and Ms. Karen Hadfield, Committee Coordinator for the Colorado Quilting Council Capitol Quilt Show, briefed the committee on a proposal to stage another Capitol quilt show in 2011. Committee members received copies of a letter from Ms. Contiguglia and the CDC chair providing certain details about the proposed 2011 quilt show (Attachment L). Ms. Contiguglia discussed the most recent quilt show, staged in 2009. Ms. Hadfield made recommendations pertaining to proposed dates for a 2011 quilt show.


BILL:	Capitol Building Advisory Committee Recommendation
TIME:	11:17:59 AM
MOVED:	Schwartz
MOTION:	Approve the proposal from the Capitol Building Advisory Committee to stage a quilt show in the State Capitol during summer 2011. The motion passed on a 6-0 vote.
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

11:19 AM -- Community Colleges Two-Year Projection of Cash Need Revision

Mr. Cliff Richardson, Vice President of Finance and Administration, Community Colleges System, discussed a proposal to revise the system's FY 2010-11 and 2011-12 two-year projection of cash need list. Committee members received a copy of the revised list, prepared by Legislative Council Staff (Attachment M). Discussion ensued regarding the addition of the Community College of Denver's Student Learning and Success Building project to the list. Mr. Richardson responded to questions regarding the student fees associated with the project. Mr. Richardson next discussed the Academic Building/Learning Center and College Center Expansion projects on the Pueblo Community College campus, and the source of funds for the projects.


BILL:	Community Colleges Two-Year Projection of Cash Need Revision
TIME:	11:26:04 AM
MOVED:	Vigil
MOTION:	Approve the Community College System's Revised Two-Year Projection of Cash Need, with the addition of the Community College of Denver Student Learning Success Building ($50,000,000 CF), Pueblo Community College Academic Building/Learning Center ($4,000,000 CF), and Pueblo Community College College Center Expansion ($11,000,000 CF) projects. The motion passed on a 6-0 vote.
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

11:26 AM -- Other Business

Ms. Donaldson discussed upcoming committee business, including upcoming meetings. Discussion ensued regarding the need for an October committee meeting, and potential dates for such a meeting.

11:30 AM

The committee adjourned.