Authorization Bill and Proposed Amendments

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STATE

OF COLORADO

COLORADO WATER CONSERVATION BOARD Department of Natural Resources

721 State Centennial Building 131 3 Sherman Street Denver, Colorado 80203

Phone: (303) 866-3441

M E M O R A N O U M

TO: Members, CWCB

F ROt'1: Bill McDonald, Director DATE: January 4, 1985

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SUBJEC'r: Agenda Item 23, January 14-15, 1985, Board

Meeting--Projects Authorization Bill and Proposed ~mendments to

Construction Fund Statutes

Introduction

In order to effect the authorization of the projects

recommended to the General Assembly by the Board, it is necessary

for the Legislature to pass an authorizations bill. As has been

the past practice, I have already sought .sponsors for such a·

bill and have drafted a bill f~r pre-filing. Representative

Younglund and Senator Brandon have agreed again to sponsor the

bill, which has already ~een introduced as HB 1042 (copy

enclosed).

The Board needs to review the bill at this time and finalize

its recommendations in order that I can report the Board's

position to the House Agriculture Committe~ when the bill is

taken up. I expect the committee to hold hearings on the bill

within the next couple of weeks.

Discussion

As introduced, HB 1042 addressed three matters. In Section

1, the projects bein1 recommended to the General Assembly by the

~oard would be authorized. The language of Section 1 is the

standard language that has been used in the last several annual

proj~cts authorization bills.

In Section 2, I nave pro9osed amendments to Section

37-60-120 of the current statutes. The proposed language is

nearly identical to language which has been in each of the last

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several authorization bills. This language, however, has never been codified and made generally applicable to all projects. I think it appropriate that this be done and this is the reason for Section 2.

Section 3 of the bill would amend Section 37-60-122 of the current statutes. The purpose of this language is to address an issue which has arisen with respect to the selection of

consulting engineering firms to perform feasibility studies which are paid for in part by the Board with construction fund monies.

In 1979, the General Assembly passed a law which requires

that state agencies which need the services of consulting

engineering firms select such firms in a particular manner.

After some controversy about the application of that statute to

the construction fund program, I decided, in consultation with

the Attorney General's staff, that when a feasibility study was funded in part by an entity other than the Board, then I would

permit that entity to select a consulting engineer in such manner

as it saw fit and state procedures would not be used. The

Attorney General's Office has now advised that state procedures

need to be followed with consulting firms selected by the Board rather than a project sponsor even though the Board is oaying for only a portion of the cost of a feasibility study.

The purpose of the amendatory language proposed by Section 3

of the bill is to exempt the Board from the state statutes which

govern the selection of consulting engineering firms when local

project sponsors are bearing part of the costs of a study and a

project. I believe it appropriate th~t the Board be so exempted

s ince feasibility studies and projects are really being done by local project proponents for their own purposes, albeit with

financial assistance from the Board and subject to the Board's guidelines.

Recommendation

I recommend that the Board recommend to the General Assembly

that

nB

projects oeing recommended for authorization and with the

addition of a provision for the deauthorization of the Craig project.

JwM/gl

Enclosure: as stated

-,\lC::'10RAt'-IDUM

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First Regular Session

LOO NO. 85 0184/1 Fifty.fifth General Assembly HOUSE BILL NO.

I O 4 2

STATE OF COLORADO

Agriculture, Livestock

&

Natural Resources

BY REPRESENTATIVE Younglund; also SENATOR Brandon.

A BILL FOR AN ACT

1 CONCERNING PROJECTS FUNDED BY THE COLORADO WATER CONSERVATION

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BOARD CONSTRUCTION FUND, AND RELATING TO THE ACTIVITIES OF THE COLORADO WATER CONSERVATION BOARD IN CONNECTION THEREWITH.

Bill Summary

(Note: This summai:y applies to this bill as introduced a.nd does not necessar!.J..t reflect any amendments which ~~ be

__ .subseguerit]_y adopted.)

Authorizes the Colorado water conservation board to loan moneys for the construction of specified· water projects.

Empowers the board to require the sponsor of an authorized project to comply with all procedures and requirements of the board. Authorizes the board to withhold or terminate all or a portion of moneys contributed by the board to a project if the sponsor fails to comply with the board's procedures and requirements. Enables the board to authorize an entity or agency funding, in part, a feasibility study or a project to select an engineer to provide professional services needed to prepare such study or manage such project.

5 Be it enacted~ the General Assembly of the State of Colorado: 6 SECTION 1. Project authorizations. (1) Pursuant to 7 section 37-60-122 (1) (b), Colorado Revised Statutes, the 8 Colorado water conservation board is hereby authorized to loan

CaJJital letters indicate new material to be added to existing statute.

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1 moneys to enable the construction of the following water 2 resources projects:

3 Repayment

4 Period Total

5 Priority Project Name Board Loan (Years) ~ment

6 (2) The Colorado water conservation board may make loans 7 for the co~struction of each project specified in subsection

8 (1) of this section from su~h moneys as are or may hereafter

9 become available to the Colorado water conservation board 10 construction fund, said loans to be in the amounts listed in

11 subsection (1) of this section plus or minus such amounts, if 12 any, as may be justified by reason of ordinary fluctuations in 13 construction costs as indicated by the engineering cost 14 indices applicable to the types of construction involved for 15 such projects or as may be justified by reason of changes made 16 in the plans for a project if those changes are required by

17 final engineering drawings and specifications or by federal or

18 state requirements.

19 (3) Contracts entered into by the Colorado water

20 conservation board pursuant to section 37-60-119 (2), Colorado

21 Revised Statu~es, for loans to enable the construction of the

22 projects specified in subsection (1) of this section shall be

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1 subject to the repayment periods and total repayments set 2 forth in subsection (1) of this section; except that total

3 repayments shall be adjusted to reflect any changes in

4· expenditures made pursuant to subsection (2) of this section.

5 SECTION 2. 37-60-120, Colorado Revised Statutes, as 6 a~ended, is amended to read:

7 37-60-120. Control of projects - contractual powers of 8 board. · (1) The state of Colorado shall have the ownership

9 and control ·of such portions of said projects, or shall take a

10 sufficient security interest in property or take such bonds, 11 notes, or other securities evidencing an obligation, as will 12 assure repayment of funds made available by section 37-60-119. 13 The board is empowered to enter into contracts which are, in

14 its opinion, necessary for the maintenance and continued

15 operation of such projects.

16 (2) THE SPONSOR OF AN AUTHORIZED PROJECT MAY NOT 17 INITIATE OR INCUR COSTS FOR FINAL DESIGNS AND SPECIFICATIONS 18 FOR A PROJECT, NOR AWARD A CONTRACT FOR, PROCEED WITH, OR IN 19 ANY MANNER INCUR COSTS FOR CONSTRUCTION OF A PROJECT, UNTIL 20 SUCH SPONSOR HAS COMPLIED WITH ALL PROCEDURES AND REQUIREMENTS

21 OF THE BOARD. IF A SPONSOR FAILS TO COMPLY WITH THE BOARD'S 22 PROCEDURES AND REQUIREMENTS, THE BOARD MAY, AT ITS DISCRETION,

23 WITHHOLD OR TERMINATE ALL OR A PORTION OF THE BOARD'S 24 FINANCIAL CONTRIBUTION TO OR LOAN FOR A PROJECT, 25 NOT\oJITHSTANDING THE AUTHORIZATION OF THE SAME BY THE GENERAL 26 ASSEMBLY, OR THE BOARD MAY REQUIRE SUCH ASSURANCES FROM THE

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PROJECT SPONSOR AS THE BOARD DEEMS NECESSARY IN ORDER TO ADEQUATELY PROTECT THE BOAR01

S INVESTMENT IN A PROJECT.

(3) THE BOARD MAY EXTEND THE AUTHORIZED REPAYMENT PERIOD FOR ANY PROJECT ANO DEFER ONE OR MORE ANNUAL PAYMENTS IF, IN THE BOARD1

S OPINION, THE ENTITY REQUESTING SUCH EXTENSION ANO DEFERMENT DEMONSTRATES THAT IT HAS ENCOUNTERED SIGNIFICANT AND UNEXPECTED FINANCIAL DIFFICULTIES ANO THAT IT HAS BEEN DULY DILIGENT IN ITS EFFORTS TO COMPLY WITH THE REPAYMENT 9 PROVISIONS OF ITS CONTRACT WITH THE BOARD.

10 SECTION 3. 37-60-122, Colorado Revised Statutes, as

11 amended, is amended BY THE ADDITION OF THE FOLLOWING NEW

12 SUBSECTIONS to read:

13 37-60-122. General assembly approval. (2) When a 14 feasibility report ·prepared pursuant · to paragraph (c) of 15 subsection (1) of this section is funded in part by an entity

16 or agency other than the board, then the board may, at its

17 discretion and subject to such procedures as it deems 18 appropriate, have such entity or agency select an engineer to

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provide the professional report, notwithstanding

21 30 of title 24, C.R.S.

services needed to prepare such the provisions of part 14 of article

22 (3) When construction of a project authorized pursuant

23 to paragraph (b) of subsection (1) of this section is funded 24 in part by an entity or agency other than the board, then the 25 board may, at its discretion and subject to such procedures as

26 it deems appropriate, have such entity or agency select an

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1 engineer to provide the professional services needed for the

2 construction management of the project, notwithstanding the

3 provisions of part 14 of article 30 of title 24, C.R.S.

4 SECTION 4. Safety clause. The general assembly hereby

5 finds, determines, and declares that this act is necessary

6 for the immediate preservation of the public peace, health,

7 and safety.