J_CDC_2017A 02/07/2017 Committee Summary

07:32 AM -- National Western Center COP Issuance, Deputy State Treasurer



The committee was called to order. All members were present. Mr. Jon Forbes, Deputy State Treasurer, provided an overview of draft legislation concerning a clarification that the lease-purchase agreements needed in order to contribute to the financing of the phased development of the National Western Center may be entered into before July 1, 2019, but must specify that payments are not due from the General Fund until July 1, 2019. Committee members received copies of the draft legislation (Attachment A). Mr. Forbes responded to questions regarding why House Bill 15-1344 did not adequately provide for phased development of the National Western Center, and the legal opinion of the Department of Law on the matter. Discussion ensued regarding some potential consequences of not adopting the draft legislation. Mr. Forbes responded to questions regarding the historic track record of the state's bond rating.



170207 AttachA.pdf

07:42 AM



The committee discussed sponsorship for the legislation.







07:43 AM -- CDC Staff Presentations



Mr. Matt Becker, Legislation Council Staff, updated the committee on state-owned vacant buildings. Committee members received a memorandum outlining the inventory of state-owned vacant buildings, prepared by Legislative Council Staff (Attachment B). Mr. Becker briefed the committee on the memorandum, addressing areas of concern previously expressed by committee members. Mr. Becker outlined some potential committee actions to address vacant buildings, as outlined in the memorandum. Mr. Becker responded to questions regarding how long buildings in the inventory have been vacant, and the potential for selling some of some of the buildings. Mr. Becker responded to questions regarding the annual costs of maintaining the vacant buildings, and the ability of agencies and higher education institutions to dispose of properties in their portfolios. Ms. Kori Donaldson, Legislative Council Staff, and Mr. Larry Friedberg, State Architect with the Department of Personnel and Administration, provided input on this issue.



170207 AttachB.pdf



07:54 AM



Discussion continued regarding the ability of state departments and higher education institutions to independently dispose of vacant or unused properties. Mr. Becker responded to questions regarding action undertaken by these entities to seek the sale of their vacant properties, and the potential for repurposing state-owned properties to help attain certain policy objectives. Ms. Donaldson provided an overview of the ten-year history of appropriations and spending for construction by higher education institutions. Committee members received a memorandum outlining this information, prepared by Legislative Council Staff (Attachment C).



170207 AttachC.pdf



08:02 AM -- Meeting with the Joint Budget Committee



The Capital Development Committee (CDC) entered into a discussion with the Joint Budget Committee (JBC) on a variety of capital-related topics. Senator Lambert, JBC Chair, opened a discussion about certain JBC Staff-initiated recommendations. Committee members received draft legislation concerning the establishment of minimum appropriation amounts for certain types of capital construction based on a percentage of the current replacement value of state buildings (Attachment D); and draft legislation concerning a requirement that the General Assembly make controlled maintenance appropriations for every state agency and state institution of higher education in a single line item to the Department of Personnel (Attachment E). Senator Lambert provided background on these issues. Senator Lambert referenced two memoranda prepared by JBC Staff: (1) Additional information for legislation recommendation - Minimum Appropriations for Recapitalization (Attachment F); and (2) State Agency Buildings and Higher Ed Buildings - Controlled Maintenance and Recapitalization to Current Replacement Value Comparison Analyses (Attachment G). Discussion ensued regarding the need for improving the capital construction planning process to improve funding for the capital budget. Discussion followed regarding the legislative proposal to require minimum levels of appropriations to be dedicated to maintaining or restoring the state's current building inventory.



170207 AttachD.pdf170207 AttachE.pdf170207 AttachF.pdf170207 AttachG.pdf









08:15 AM



Discussion continued regarding the bill addressing minimum appropriation amounts, the ramifications of adopting the legislation, and the potential for tying the disposition of vacant state buildings to constructing new buildings. The discussion included potential funding sources for state building maintenance.



08:25 AM



Discussion continued regarding exploring funding sources for state building maintenance, and how drawing down the current vacant building inventory might assist this purpose. Discussion ensued regarding the use of moneys that may become available when the certificates of participation payments for Colorado State Penitentiary II expire, and consolidation of certain Department of Corrections capital assets. Discussion returned to the plan for using or disposing of vacant state buildings, as outlined in Attachment B. Discussion followed regarding the FY 2017-18 controlled maintenance requests.



08:39 AM



Discussion continued regarding the disposal of vacant buildings and funding for the upkeep of the remaining state capital inventory. The discussion turned to the FY 2017-18 capital construction budget, and capital spending priorities.



08:52 AM



Senator Lambert provided closing remarks about the discussion on spending for capital investment.



08:54 AM



The committee adjourned.