Capital Development Committee [Mar 19, 2026]

Capital Development Committee will come to order. Ms. Forbes, please call the roll.

Members, we have one item on the agenda, consideration of property transaction proposal from CPW. Do we have Daphne Gervais here?

Pete Conovitz

Ms. Dervais I have been informed that you may be this may be the last time that you're before the Capital Development Committee that you have another position within the department and so I just want to take this opportunity on the record to thank you for all your work you have been nothing but amazing sometimes I know it's challenging but I just hope you know how good you are at your job and really been great to work with. And so thank you for everything you've done. Thank you, Senator.

Should I launch into it?

Awesome. Well, good morning, committee members. Thank you for having us today. Daphne Gervais, I'm the Director of Legislative Affairs with the Department of Natural Resources for two more days I here today to present a property transaction proposal for Colorado Parks and Wildlife along with a couple of CPW colleagues joining us virtually Frank McGee Southeast Regional Manager as well as Pete Conovitz our Water Rights Program Administrator. By way of background CPW has owned approximately 10% of the shares in the Mount Pisgah Reservoir and Ditch Company however in 2024 a private entity acquired a majority of the shares in the company and indicated that they wanted to convert the company from a mutual ditch company to a for-profit corporation. That conversion would render CPW's share ownership in the company unconstitutional because state agencies cannot hold shares in a for-profit corporation. So that move would essentially nullify CPW's water rights. Because of that, CPW filed a lawsuit against the company in 2025 to protect its interests in the shares, including its associated ownership of water rights, infrastructure, and storage space. During the course of the litigation, the parties engaged in settlement negotiations, which resulted in the transaction that is being brought to you today. The settlement proposal that is mutually agreeable to both parties involves the sale of CPW's shares and associated interests in the water rights infrastructure and storage space in the Mount Pisgah Reservoir in exchange for a long lease of water storage at the reservoir that would support operations at Mueller Lake State Park and Dome Rock State Wildlife Area, which both have water features that support wildlife and recreation. So with the CDC's approval of this proposal, the litigation would be resolved amicably and without the risk of a trial and significant ongoing litigation costs. In your packet, you'll find a letter of support for this transaction from the Mount Pisgah Reservoir and Ditch Company. And with that, I ask for your support and would be happy to take any questions.

Thank you, Mr. Chair. I move for CDC to recommend support for the fee title disposition of 2,446,000. I'm sorry, I can't see if that's a dot or a comma. I think it 2 acres Yes 0 acres in the Mount Pisgah Reservoir and Ditch Company and the lease acquisition of a minimum of 25 acre feet of storage space in Mount Pisgah Reservoir. Yeah.

Senators and Representatives, Senator Henriksen is excused and Representative Lindsay is excused. Pelton? Aye. Winter? Yes. Story?

Chair. I just wanted to also echo your comments for Daphne Gervais. Really appreciate the work that you've done. You've been great and always offer all the information that's needed and follow up with all of I'm sure, well, at least for me, but probably for everybody, you know, with all the details and questions and answering them along the way. Appreciate all of your work, and you will be missed.