TITLE: CONCERNING AUTHORIZATION FOR THE PROVISION OF RETAIL OR COMMERCIAL GOODS AND SERVICES AT PUBLIC TRANSPORTATION TRANSFER FACILITIES LOCATED ON PROPERTY OWNED BY THE DEPARTMENT OF TRANSPORTATION.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues Cash Fund	$158,400	$158,400
State Expenditure Cash Fund
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: TABOR
Effective Date: The bill would become effective August 4, 1999.
Appropriation Summary for FY 1999-2000:The DOT would not require additional appropriation.
Local Government Impact: None

Under current law, the Regional Transportation District (RTD) can enter into agreements with an entity to provide retail goods and services at a transfer station. This bill would require that RTD or other entities obtain approval from the Department of Transportation (DOT) before entering into these agreements. The bill would also allow the department to enter into these types of agreements and requires that the department receive full market value for the agreement. Certain limitations apply to the businesses at the transfer sites.

The bill would allow the DOT to enter into agreements for the leasing of DOT owned transfer sites. DOT has 30 sites used by RTD as transfer sites. Twenty-two of these are in high traffic areas and may have room for some retail activity. A 10' by 12' space in a parking facility used for drive through coffee or film processing pays on average about $600 per month in rent. If the DOT allows such facilities at all 22 sites, and the average rent collected is $600, the DOT would receive approximately $158,400 annually to the State Highway Fund (12 months X $600 X 22 sites = $158,400). The Federal Transportation Equity Act for the 21^st Century requires money earned from any federal aid projects to be applied to projects that are eligible for federal aid. Therefore, the rental money would be deposited into the State Highway Fund and would not be distributed to the cities and counties.

The DOT would have some startup costs to negotiate lease agreements with private entities. Startup costs have been estimated at 880 hours or 110 days to complete, and it assumes that all 22 sites have a request for a lease agreement. The estimated staff cost for the DOT is $26,400. The DOT would reallocate existing resources and workloads to accommodate this new work. DOT indicates some existing departmental projects would be delayed as a result of this bill, although no additional resources would be required. The DOT would review the contracts every five years and adjust their workload accordingly. The DOT would not incur increased expenditures in future years.