STAFF SUMMARY OF MEETING
COMMITTEE ON JOINT TRANSPORTATION
|Time:||01:39 PM to 03:17 PM|
|This Meeting was called to order by|
|This Report was prepared by|
X = Present, E = Excused, A = Absent, * = Present after roll call
|Bills Addressed: ||Action Taken:|
|Briefing by the Public Utilities Commission|
Briefing on Public Private Partnerships
01:40 PM -- Briefing by the Public Utilities Commission
Director Doug Dean, representing the Public Utilities Commission (PUC), introduced members of his staff and provided a background on the PUC and its mission. The PUC is the oldest regulatory agency in the state of Colorado and serves a number of roles. Director Dean described the current members of the commission and their terms. Director Dean responded to questions from the committee members. Representative Vaad asked Director Dean about designating transportation as a public utility as a potential new area to deliver transportation services.
Representative King asked questions regarding specific power plant closures and steps taken during the decision-making process. Mr. Gene Camp, representing the PUC, provided information on cost analyses, and provided information on determining factors that impact final decisions. Representative Looper asked why power plants are retired from service. Mr. Camp responded such plants were put in place several decades ago and are nearing the end of their useful life.
Representative McFadyen thanked the PUC staff and director for coming to the committee.
The committee recessed.
02:46 PM -- Briefing on Public-Private Partnerships
The committee returned to order.
Mr. Frank Rapaport, representing McKenna, Long, and Aldridge, LLP, testified regarding the use of public-private partnerships specific to transportation infrastructure projects. Mr. Rapaport was joined by Mr. Richard Kaufman and Mr. Lino Lipinsky, also representing McKenna, Long, and Aldridge, LLP. The federal economic stimulus was discussed. Mr Rapaport emphasized the importance of states being ready, willing, and able to use federal stimulus funds for projects. Mr. Rapaport provided copies of his testimony to the committee members (Attachment A).
Mr. Rapaport discussed FasTracks as a model public-private partnership. He discussed advantages of such partnerships, including those specific to life-cycle delivery. Mr. Rapaport stated that the proposed FASTER law will further improve Colorado's public-private partnership laws. He closed by providing seven recommendations on the effective use of public-private partnerships for transportation infastructure. Mr. Rapaport took questions from the committee members.
Representative Green asked how value is determined for such projects. Mr. Rapaport responded that cost analyses are conducted, and described the role of profit. Representative Green expressed concerns that noncompetes may be promoted. Representative Baumgardner asked clarifying questions on federal stimulus dollars and funding origination for public private partnerships.
Representative Green asked if it was normal for public-private partnerships to receive a 10 percent profit guarantee. Mr. Rapaport responded that such arrangements are abnormal.
Senator Romer thanked the witnesses for testifying and stated that public-private partnerships are an inevitable step forward. Sen. Romer also discussed challenges with equity issues.
The committee adjourned.