C.L. "Butch"
Otter
Governor
Lawerence
Denney
Secretary of
State
Lawrence
Wasden
Attorney
General
Brandon D
D Woolf
State
Controller,
Secretary
SCO > Board of Examiners > Board of Examiners Minutes
MINUTES
STATE BOARD OF EXAMINERS
Tuesday, August 11, 1998 – 8:45 a.m.
JRW East Conference Room

Members present:
      Governor Philip E. Batt, Chairman of the Board
      Secretary of State Pete T. Cenarrusa
      Attorney General Alan G. Lance
      State Controller and Secretary of the Board J. D. Williams

Sub-Committee members present:
      David High, Office of Attorney General
      Darrell Manning, Office of Governor
      Ben Ysursa, Office of Secretary of State

      Kevin Satterlee, Deputy Attorney General

CONSENT AGENDA

BUREAU OF HAZARDOUS MATERIALS

1. Incident #980304 - Request for authorization to issue deficiency warrants in the amount of $2,872.51 for reimbursement of response costs incurred in a hazardous substance incident in Paul, Idaho on March 12, 1998, pursuant to Idaho Code §39-7110.

2. Incident #980410 - Request for authorization to issue deficiency warrants in the amount of $565.75 for reimbursement of response costs incurred in a hazardous substance incident in Boise, Idaho on April 15, 1998, pursuant to Idaho Code §39-7110.

3. Incident # 980415 - Request for authorization to issue deficiency warrants in the amount of $698.64 for reimbursement of response costs incurred in a hazardous substance incident in Caribou County, Grace, Idaho on April 21, 1998, pursuant to Idaho Code §39-7110.

4. Incident #980408 - Request for authorization to issue deficiency warrants in the amount of $2,962.78 for reimbursement of response costs incurred in a hazardous substance incident near Jerome, Jerome County, Idaho on April 24, 1998, pursuant to Idaho Code §39-7110.

5. Incident #980612 - Request for authorization to issue deficiency warrants in the amount of $670.00 for reimbursement of response costs incurred in a hazardous substance incident in Shoshone County, near Osborn, Idaho on June 6, 1998, pursuant to Idaho Code §39-7110.


UNIVERSITY OF IDAHO

6. Request for authorization to pay moving expense reimbursement from non-state funds in the amount of up to $5,290 for Dr. Ashley Morris, Assistant Professor in Computer Science, College of Engineering, pursuant to the provisions of the State Moving Policy. Dr. Morris will be moving to Moscow from New Orleans.

7. Request for authorization to pay moving expense reimbursement from non-state funds in the amount of $6,200 for Dr. Gurdeep Hura, Associate Professor in Computer Science, College of Engineering, pursuant to the provisions of the State Moving Policy. Dr. Hura will be moving to Moscow from Singapore and will personally pay the substantial balance of his expenses.

8. BOARD OF EDUCATIONKevin Satterlee, Deputy Attorney General
    Request for authorization to lift annual leave caps for the following employees of Boise State University, Lewis-Clark State College and the Office of the State Board of Education from now through June 26, 1999. These employees are being moved from Board of Education’s annual leave schedule, which has a cap of 240 hours, to the annual leave schedule described in Idaho Code §67-5334 and §67-5335, which has a cap of 192 hours for employees with less than 10,400 hours of credited state service. This will allow employees to continue accumulating leave as they reduce their annual leave balances to the new maximum.
          Boise State University
          Philip Boysen Dean Allen Gunderson
          Becky Bunderson Jennifer Harper
          Sharon Burke Duane Warn
          Kara Burns

          Lewis-Clark State College
          V. Carr A. Kennaly
          L. Day D. Morris
          D. Frasier T. Osburn
          C. Fryer R. Reidhaar
          J. Goldammer K. Rhoades
          D. Hardy M. Sanderlin
          T. Hart R. Warnacutt
          C. Holland C. White
          G. Johnson

          Office of the State Board of Education
          Vicki Barker


9. STATE TAX COMMISSION
    Request for authorization to trade in a Bell & Howell Aim 5000 Inserter to AutoSort, Inc., who is willing to give a fair market price, estimated at $2,500, which would be traded for inserter services.


10. DEPARTMENT OF LABOR
    Request for authorization to use up to $50,000 per year of Penalty & Interest monies to cover costs in excess of the general fund appropriation for the Wage and Hour Program, per Idaho Code §72-1348(b).


11. DEPARTMENT OF TRANSPORTATION
    Request for approval of Recognition of Assignment as executed by Assignor David P. Evans & Associates and Assignee Panhandle State Bank, Sandpoint, Idaho, for Project Name: North Bonners Ferry to JCT. US-2. Project No. NHF-5116(026), Work Task No. 3: FC#98-207/AUTO-3561.


12. OFFICE OF ATTORNEY GENERAL
    Notification that Mr. Eugene A. Ritti, of the firm of Hawley, Troxell, Ennis & Hawley, to represent the third party defendant in the Lee, et al. v. Bearclaw Crushers, Inc., et al., Case No. CV-PI-97-00149D, pursuant to Idaho Code §67-1409.


Governor: The State Board of Examiners will come to order. We have a Consent Agenda before us.

Attorney General: Mr. Chairman, it is my understanding that the request for moving expense from the University of Idaho that right now it is built into the contract that if these folks terminate employment within one year that they repay the moving fees. Kevin Satterlee is here. Kevin, have you checked that out? Have you run that down to make absolutely certain that is inserted in their employment contract?

Kevin Sattterlee: Governor, members of the Board of Examiners, I haven’t run that down for certain. The question just came this morning. I have reviewed that issue with the university counsel at University of Idaho in the past and they represented that is a standard form in their employment contract. I would have to check specifically again, but I think that is correct.

Attorney General: If you would do so and report back next meeting, please, and make sure it is being done.

Kevin Satterlee; Yes, sir.

Attorney General: With that, if the Chair is ready for a motion, Mr. Chairman, I would move for the approval of the Consent Agenda items 1-12.

Secretary of State: Second.

Governor: All in favor say aye.

Aye: Governor
      Secretary of State
      Attorney General
Opposed, nay. The ayes have it. The Chair votes aye.


REGULAR AGENDA

13. STATE CONTROLLER’S OFFICESteve Allison, Division of Statewide Accounting and Peggy Haar, Division of Statewide Payroll
    Request for approval of financial transaction fee rates for Divisions of Statewide Accounting and Statewide Payroll for Fiscal Year 2000 in the following amounts:
        Statewide Accounting $ .29 per accounting transaction
        Statewide Payroll $2.98 per employee per payroll


Governor: Item 13.

State Controller: Governor, Idaho Code presently provides that the Board of Examiners approve the fees that are charged by my office for accounting transactions and for EIS or payroll transactions. We come every year for the approval of the Board. The history of this is that the fees for the current fiscal year, 1999, for Statewide Accounting transactions is $.28 and Statewide Payroll for the cost of paying an employee per payroll is $3.39. The proposal that we have before you is that the Statewide Accounting transaction fee would go up one penny to $.29 and the Statewide Payroll fee would go down $.41 from $3.39 to $2.98. The reason for the reduction is because the year 2000 conversion costs were previously in that, and those costs are less than we anticipated for the year 2000. We are coming in now at about 60 – 65% below the budget on that. The reason the one cent increase for Accounting is because we are looking at the transaction numbers going down in Accounting as things get more mechanized, more efficiencies. The agencies aren’t running as many transactions through the Accounting System. Also, we have an enhancement in the budget for $100,000 to continue creating an offset program. How that works is if somebody owes the State of Idaho money – child support is already being done, but say they owe an agency money, but yet they get a tax return. We want to create a system that will intercept the tax return to pay off the other receivable to the state. Many states are doing that now and have had excellent income from that and it is a legitimate offset of money owed to the state by individuals. We have to be able to build that into the Accounting System and $100,000 is proposed in that. EIS has a proposal to continue the on-line project to completely create a paperless payroll system. We have all this technology, all this hardware, now we are basically converted on the year 2000. Our next goal is to go totally paperless with payroll. We have looked at that from a cost benefit basis and we think we can save at least $120,000 a year on paper alone if we do that. We recognize that the legislature will have to look at this and as in fiscal year 1999, they made some adjustments based upon what they approved. What we are asking today is that this be the extent of our fees subject to only be reduced by the legislature if they don’t approve the budgets as requested.

Attorney General: Two questions. I can still get paid in cash on my payroll? Is that right? It is the option of the employee?

State Controller: Now they are paid by state warrant unless they elect to go EFT or direct deposit. We have about 75% of full time state employees on direct deposit now, and we push that a lot because it saves us. Lydia feels like it is $5.00 - $6.00 a warrant. I think it is more like 80 cents, but it is a lot of money over time. Some states are now looking at either requiring employees to be on direct deposit, or if they are not, to charge them for issuance of the check or warrant. I am not ready to do that yet. I think the voluntary basis is the way to do it and every six months we have a campaign to get employees to go direct deposit, and I think that is the way to go. Some employees just do not want to be on direct deposit. I think it is probably their option if they don’t want to.

Attorney General: Secondly, Governor. In discussing this issue with General Manning, this is the issue we were discussing this morning as I recall, if you have time for motion I have one here from the Controller and will be prepared to make. Mr.Chairman. I move to approve, in accordance with Idaho Code § 67-3524, the financial transaction fees to be charged by the Office of the State Controller for FY 2000 as follows.
          Statewide Accounting $ .29 per accounting transaction
          Statewide Payroll $2.98 per employee per payroll

These fees are subject to adjustment following action on the FY 2000 budget of the Office of State Controller by the Idaho Legislature in 1999.


Secretary of State: Second.

Governor: Is there discussion of that worthy motion. There being none all in favor will signify by saying aye.

Aye: Governor
      Secretary of State
      Attorney General

Opposed, nay. The ayes have it. The Chair votes aye. Motion is carried.


INFORMATIONAL AGENDA
    STATE INSURANCE FUND

14. Estimate of the State Insurance Fund expenses to be paid by sight draft for the month of March, 1998.
      Estimated expenditures for workers $ 7,500,000.00
      compensation claim costs, dividends
      and premium refunds
    Funds expended in February 1998
      Workers Compensation Claim Costs $ 6,446,955.66
      Policy Refunds 859,196.01
      Total $ 7,306,151.67


15. Estimate of the Petroleum Storage Tank Fund expenses to be paid by sight drafts for the month of March 1998.
      Estimated expenditures for $ 500,000.00
      Petroleum Storage Tank Fund

    Funds expended in February 1998.
      Payroll $ 48,973.06
      Operations 157,944.08
      Continuing Appropriations 32,188.00
      PSTF Claim Costs 371,361.32
      Total $610,466.45


16. Estimate of the State Insurance Fund expenses to be paid by sight draft for the month of April, 1998.
      Estimated expenditures for workers $ 7,500,000.00
      compensation claim costs, dividends
      and premium refunds
    Funds expended in March 1998
      Workers Compensation Claim Costs $ 5,707,133.16
      Policy Refunds 692,602.06
      Total $ 6,399,735.22


17. Estimate of the Petroleum Storage Tank Fund expenses to be paid by sight drafts for the month of April 1998.
      Estimated expenditures for $ 500,000.00
      Petroleum Storage Tank Fund

    Funds expended in March 1998.
      Payroll $ 48,854.22
      Operations 9,059.83
      Continuing Appropriations 23,139.29
      PSTF Claim Costs 201,568.02
      Total $282,621.36


18. Estimate of the State Insurance Fund expenses to be paid by sight draft for the month of May, 1998.
      Estimated expenditures for workers $ 7,500,000.00
      compensation claim costs, dividends
      and premium refunds
    Funds expended in April 1998
      Workers Compensation Claim Costs $ 4,999,197.64
      Commissions 614,914.02
      Policy Refunds 460,823.93
      Total $ 6,074,935.59


19. Estimate of the Petroleum Storage Tank Fund expenses to be paid by sight drafts for the month of May 1998.
      Estimated expenditures for $ 500,000.00
      Petroleum Storage Tank Fund

    Funds expended in April 1998.
      Payroll $ 48,854.27
      Operations 9,425.13
      Continuing Appropriations 46,006.13
      PSTF Claim Costs 139,625.87
      Total $243,911.40


20. Estimate of the State Insurance Fund expenses to be paid by sight draft for the month of June, 1998.
      Estimated expenditures for workers $ 7,500,000.00
      compensation claim costs, dividends
      and premium refunds
    Funds expended in May 1998
      Workers Compensation Claim Costs $ 5,657,636.89
      Commissions
      Policy Refunds 519,444.87
      Total $ 6,177,081.76


21. Estimate of the Petroleum Storage Tank Fund expenses to be paid by sight drafts for the month of June 1998.
      Estimated expenditures for $ 500,000.00
      Petroleum Storage Tank Fund

    Funds expended in May 1998.
      Payroll $ 72,651.49
      Operations 5,781.98
      Continuing Appropriations 4,204.50
      PSTF Claim Costs 22,614.14
      Total $ 105,252.11


22. Estimate of the State Insurance Fund expenses to be paid by sight draft for the month of July, 1998.
      Estimated expenditures for workers $ 7,500,000.00
      compensation claim costs, dividends
      and premium refunds
    Funds expended in June 1998
      Workers Compensation Claim Costs $ 6,064,062.07
      Commissions
      Policy Refunds 398,991.24
      Total $ 6,463,053.31


23. Estimate of the Petroleum Storage Tank Fund expenses to be paid by sight drafts for the month of July 1998.
      Estimated expenditures for $ 500,000.00
      Petroleum Storage Tank Fund

    Funds expended in June 1998.
      Payroll $ 51,762.82
      Operations 23,733.04
      Continuing Appropriations 6,190.50
      PSTF Claim Costs 390,307.86
      Total $ 471,994.22


24. SECRETARY OF STATE
    Secretary of State Pete Cenarrusa reported the Idaho Election Campaign Fund distributed $97,044 on August 4, 1998. Following is the distribution:
          American Heritage $ 2,720.00
          Democrat 42,611.00
          Libertarian 3,435.00
          Natural Law 1,397.00
          Reform 1,446.00
          Republican 45,435.00
Total 97,044.00


Governor: That concludes our business except for an Informational Agenda.

State Controller: Governor, the Informational Agenda is from the State Insurance Fund regarding the various funds they have under the Code that they are supposed to report to us every month.


WHEREUPON THE MEETING OF THE STATE BOARD OF EXAMINERS was adjourned, subject to the call of the Chairman.


                              _______________________________
                              Governor Philip E. Batt
                              Chairman of the Board


________________________________
J. D. Williams, Secretary to the Board
and State Controller
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