STATE BOARD OF EXAMINERS
August 24, 2000 – 1:25 p.m.
JRW East Conference Room
Governor Dirk Kempthorne, Chairman of the Board
Secretary of State Pete Cenarrusa
Attorney General Al Lance
State Controller and Secretary of the Board J. D. Williams
Sub-Committee Members Attending:
Darrell Manning, Office of the Governor
Ben Ysursa, Office of Secretary of State
David High, Office of Attorney General
Keith Johnson, Office of State Controller
David Tolman, Office of Governor
Marty Peterson, University of Idaho
Keith Hasselquist, State Board of Education
1. DEPARTMENT OF LABOR
Request for authorization to use $20,000 Penalty and Interest monies for construction costs incurred for a project conducted by the Department of Labor Blackfoot Job Service Office as part of a contract between the Department and the Department of Health and Welfare. These expenditures were committed by the Blackfoot Job Service Manager for materials used by at risk youth in a park construction project, but were later determined as unallowable charges to the federal grant that funds the contract. The Department of Labor just recently received rules governing this contract, and the manager responsible has been informed of the mistake.
2. SECRETARY OF STATE
Request for approval of county reimbursement for state’s pro-rata costs of presidential primary in the amount of $47,774.15, pursuant to Idaho Code § 34-739.
3. STATE CONTROLLER
Request for authorization to accept Balukoff, Lindstrom & Co. proposal to perform the audit of the Legislative Branch of the State of Idaho for years ending June 30, 2000 and 2001, pursuant to Idaho Code § 67-2027.
4. PUBLIC WORKS CONTRACTOR’S LICENSE BOARD
Request for approval for Recognition of Assignment as executed by Assignor Jeff Street, AST Properties, and Assignee Terry Ayres, Terah Corporation, both of Boise, Idaho, for real property lease regarding the State of Idaho, by and through the Public Works Contractor’s License Board, as “Lessee” and Lessee’s occupancy of 355 North Orchard Street, Suite 107, Boise, Idaho, pursuant to Idaho Code § 67-1027.
5. Request for reimbursement of closed cases handled by the Ada County Prosecutor dealing with the prosecution of State Penitentiary inmate Michael Allen Jauhola through December 31, 1999, in the amount of $161,704.53. Legislative Services Offices has audited this claim, found one exception in the amount of $22.50, and recommends payment of $161,727.03.
6. Request for reimbursement of closed cases handled by the Ada County Prosecutor dealing with the prosecution of State Penitentiary inmates through June 30, 2000, in the amount of $20,087.81. Legislative Services Office has audited this claim, found one exception in the amount of $297.50, and recommends payment of $19,790.31.
7. Notification that John W. Barrett of the firm of Moffatt, Thomas, Barrett, Rock & Fields, has been appointed as a special deputy attorney general for the purpose of representing the State of Idaho and its Executive Branch agencies in the Hayden Lake Fire Protection Dist., et al. v. Alcorn, et al., Case No. CV-00-00525, pursuant to Idaho Code § 67-1409.
8. Notification that Randall A. Peterman of the firm of Elam & Burke, has been appointed as a special deputy attorney general for the purpose of representing the Idaho State Department of Agriculture in the matters relating to claims against Commodity Indemnity Account Program (CIAP), resulting from failure of Curry Bean Co., Inc, pursuant to Idaho Code § 67-1409.
9. Notification that Richard A. Hearn of the firm of Racine, Olson, Nye, Budge & Bailey, as been appointed as a special deputy attorney general for the purpose of representing the State of Idaho in the Planned Parenthood of Idaho, Inc., et al. v. Lance, et al., Case No. CIV-00-0353-S-MHW, pursuant to Idaho Code § 67-1409.
10. Notification that Murray D. Feldman of the firm of Holland & Hart, has been appointed as a special deputy attorney general for the purpose of representing the State of Idaho in the Regents of the Univ. of Idaho, et al. v. Northwest Technologies, Inc., pursuant to Idaho Code § 67-1409.
11. Incident 2000-538 – Request for authorization to issue deficiency warrants in the amount of $781.35 for reimbursement of response costs incurred when emergency response teams assisted in a hazardous materials incident at US93 MP 25, Twin Falls County, Idaho involving a spill of naptha soaked charcoal on February 16, 2000, pursuant to Idaho Code §39-7110.
BUREAU OF HAZARDOUS MATERIALS
12. Incident 2000-619 – Request for authorization to issue deficiency warrants in the amount of $2,996.25 for reimbursement of response costs incurred when emergency response teams assisted in a hazardous materials incident at 477000 Hwy 95, Ponderay, Bonner County, Idaho, involving a fuel spill on February 23, 2000, pursuant to Idaho Code §39-7110.
13. Incident 2000-983 – Request for authorization to issue deficiency warrants in the amount of $1,600.09 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Potlatch, Idaho on March 22, 2000, pursuant to Idaho Code §39-7110.
14. Incident 2000-1087 – Request for authorization to issue deficiency warrants in the mount of $511.67 for reimbursement of response costs incurred when emergency response teams assisted in a hazardous materials incident at the Boundary County Landfill, Bonners Ferry, Idaho on April 3, 2000, pursuant to Idaho Code §39-7110.
15. Incident 2000-1141 – Request for authorization to issue deficiency warrants in the amount of $322.74 for reimbursement of response costs incurred when emergency response teams assisted in a CIB drug lab incident in Post Falls, Idaho on April 7, 2000, pursuant to Idaho Code §39-7110.
16. Incident 2000-1198 – Request for authorization to issue deficiency warrants in the amount of $2,391.41 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Fenn, Idaho on April 13, 2000, pursuant to Idaho Code §39-7110.
17. Incident 2000-1403 – Request for authorization to issue deficiency warrants in the amount of $1,081.52 for reimbursement of response costs incurred when emergency response teams assisted in a hazardous materials incident at I-15 rest area, Malad, Oneida County, Idaho involving a diesel spill on May 2, 2000, pursuant to Idaho Code §39-7110.
18. Incident 2000-1441 – Request for authorization to issue deficiency warrants in the amount of $426.71 for reimbursement of response costs incurred when emergency response teams assisted in a CIB drug lab incident in Post Falls, Idaho on May 4, 2000, pursuant to Idaho Code §39-7110.
19. Incident 2000-1443 – Request for authorization to issue deficiency warrants in the amount of $1,758.72 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Orofino, Idaho on May 5, 2000, pursuant to Idaho Code §39-7110.
20. Incident 2000-1449 – Request for authorization to issue deficiency warrants in the amount of $526.93 for reimbursement of response costs incurred when emergency response teams assisted in a CIB drug lab incident in Pinehurst, Idaho on May 5, 2000, pursuant to Idaho Code §39-7110.
21. Incident 2000-1475 – Request for authorization to issue deficiency warrants in the amount of $225.75 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Dalton Garden, Idaho on May 8, 2000, pursuant to Idaho Code §39-7110.
Governor: Ladies and gentlemen, I will now call the Idaho State Board of Examiners to order and call upon the State Controller J. D. Williams to provide us the secretary’s report.
State Controller: Thank you, Governor. Before you today on the Consent Agenda are 21 items that have been reviewed by the Board’s Sub-Committee and are recommended for approval.
Governor: Are there any questions with regard to items 1-21? Attorney General.
Attorney General: Governor, I would move the adoption of the Consent Agenda.
Governor: Is there a second?
Secretary of State: Second.
Governor: It has been moved and seconded. Discussion? Those in favor please say aye.
Secretary of State
Opposed, nay. The ayes have it. So carried.
UNIVERSITY OF IDAHO – Marty Peterson
22. Request for authorization to reimburse moving expenses of up to $15,000 for Dr. Larry Forney, Chair of the Department of Biological Sciences and as a Professor Biology, from University of Groningen in The Netherlands, effective August 21, 2000. Payment will be from non-appropriated funds.
Governor: We have before us item #22.
State Controller: Governor, there is one item, #22, which is on the Regular Agenda. It is a request from the University of Idaho to reimburse moving expenses for one of their professors in the Department of Biological Science, and it is for $15,000. I believe the reason it is higher than normal is because this individual is presently in The Netherlands and would be moved from there to Moscow. There was some questions regarding this so it was placed on the Regular Agenda.
Governor: Marty Peterson, did you wish to comment on this?
Marty Peterson: Thank you Governor. Just very briefly. This is the department chair for the Department of Biological Sciences at the University. With our new bio-tech research complex that is going up, this is going to be a very critical position for us. We did an international search for this position. Dr. Forney, although he is a U.S. citizen, was in the Netherlands at the time and is moving from the Netherlands. He is the former Associate Director of the National Science Foundation Biological Ecology Division. We think he brings a great deal to the State of Idaho. We understand that the cost of this is higher than would be normal but under the existing policy of the Board we have that flexibility and would really hope that the Board would approve this. If there is a desire of the members of the Board to take a look at the establishment of a different policy than the one currently in place, we would certainly be more than happy to sit down and work with you on that, but we have classes starting next week. Dr. Forney is in Moscow, is anxious to get his stuff moved from the Netherlands.
Governor: Marty, it is noted here that this is from non-appropriated funds.
Marty Peterson: That is correct.
Governor: Also, when we talk about recruitment and retention of outstanding individuals for state employment, I would imagine this is one of those that comes under that category of a very important position, a man probably highly credential for this. Does this put the University of Idaho in a competitive advantage to have this position and this individual?
Marty Peterson: Governor, it does, and certainly we were competing with other institutions to recruit him and certainly there are other institutions out there that would have an edge over us if they were able to fully fund his moving expenses, and we were not able to, and when you get into that kind of position we would go the extra mile.
Governor: Other questions? Mr. Attorney General.
Attorney General: Governor, Marty, if I may. What is this fellow going to be paid?
Marty Peterson: Governor, General, I wish I could answer that. I cannot. I would assume it is in excess of $100,000 a year.
Attorney General: Is that a one year contract he is coming here on?
Marty Peterson: Governor, General, he is going into a tenure position, which would mean that it would be a lengthy commitment
Attorney General: Not to take issue with Marty, but in October of 1995 the Board indicated to the University of Idaho that we weren’t going to routinely approve moving expenses. I assume you have seen some of this correspondence. July 17, 1995 the letter went out to the State Board of Education indicating we would not be approving on a routine matter moving expenses and I think there are about three other pieces of correspondence. Now we are faced with this $15,000 bill and we are not sure exactly how long the contract is and there was not prior approval requested as far as I understand it. I think that we all need to sit down and figure out exactly what is reasonable, and what is not reasonable. It seems to me that if we are going to spend $15,000 on this fellow we need a contract at least three years and if he chooses to take employment elsewhere after we have paid to move him over to this country, maybe he ought to pay back those moving expenses. That is just good business, I think, Marty.
Marty Peterson: Governor, General, as an individual I would certainly agree with that. I suspect the university president and provost would agree with that as well. We would certainly be amenable if there was an interest on the Board in initiating some sort of policy along those lines that would apply to future hires. I suspect that would not cause a problem.
Attorney General: In light of the correspondence that kept floating in your direction saying that we are not going to be doing this on a routine basis, I think the policy was made pretty clear to everybody concerned for the last five years. You can imagine my reluctance to vote in favor of giving $15,000 for moving expenses after we had sent these numerous correspondences to you for the last five years. That is my problem with the deal.
Governor: Further discussion?
State Controller: Just one word in support of it. I heard an incredible presentation yesterday on the new economy. Taking into account where this state is right now financially, if you go behind the numbers where we are, the actual income tax that we are receiving from individuals for 40 hour work weeks is almost on track with the projections of the administration. But we all know there is a huge surplus and it looks like a large share of that has come from bonuses and stock options which is a huge part now of our economy. It is going to make a lot of interesting questions of how you budget that, but everything I heard yesterday is the next wave of the new economy is bio-tech. This is an opportunity for the state to probably pick up one of the world’s preeminent people. I recognize that we have had a lot of discussions in the past. I believe they are trying hard, and I believe the Sub-Committee is going to review this in great detail and come up with some proposals. This is an area that I think would be a very, very good investment for the future to keep this going that we have right now within the state.
Secretary of State: I would agree with the Controller and I think it would be money well spent providing expertise at the university, and I would move that this be approved.
Governor: Is there a second? The chair will second. Marty, let me ask you this question. The timing of this. You stated you felt the university administration would agree with what General Lance has said and would be willing to initiate a draft policy. Do you need a decision on this prior to that draft policy being in place?
Marty Peterson: Governor, yes, we do need a decision because he is, I believe, on the ground in Moscow. We have classes starting next week. Keith Hasselquist is here from the State Board of Education and I think the entire State Board, on behalf of our system would be very pleased to sit down and work with the Sub-Committee on readdressing these policy issues and seeing what might be developed that would be more acquiescent with the Attorney General’s concerns.
Governor: Mr. Hasselquist, any comments you would like to make? I don’t blame you. General.
Attorney General: With those assurances, and we have a couple of other things here. First of all the length of the contract. If we spent $20,000 to move somebody, they are here for six months and they decide to go home, that doesn’t make any sense to me at all that we would foot the bill for the moving expenses. Secondly, we have other universities, colleges and educational facilities that we are also responsible for and if this is used as being some sort of means of added inducement or compensation, we are going to start getting into a bidding war where we are paying a whole bunch of money, rather than paying it in salary, paying it in these other types of things. I just think we need to get a handle on it and have some sort of a mutual understanding about what is reasonable and how long somebody has to work to work off a $5,000 moving bill, or $10,000, or $15,000. But with the assurance that the State Board and you, Marty, are going to meet with our folks and have a policy in place hopefully within the next 60 days, I am prepared to vote in favor of the motion.
Governor: Let me just say too that I agree with what the General has said. He has raised valid points now. 1995 predates my being here, and I believe that currently state policy is that we provide moving expenses up to $5,000 and then there would be additional permission that would be necessary. So if you break that out on an annual basis, I can see where you come up with the three year contract. The reason that I believe, and am willing to vote for this, number one, my confidence in Dr. Hoover and the staff that surrounds him, including you, Mr. Peterson. Also the bio-tech field. I want to insure that Idaho is positioned well for the future. Bio-tech as late as a month ago was an issue that Alan Greenspan discussed with the Governor’s Association and if, in fact, we have someone who is preeminent in this field, let’s bring him to Idaho. Let’s put him to work and let’s achieve great things. Further discussion? It is with the full understanding that the Sub-Committee will bring back to the Board of Examiners a policy. Those in favor please say aye.
Secretary of State
Opposed, nay. It has carried. Would you tell Dr. Forney we welcome him to Idaho. We welcome him for a long period to Idaho.
Marty Peterson: Thank you. I certainly will.
23. Estimate of the State Insurance Fund expenses to be paid by sight drafts for the month of July 2000.
24. Estimate of the Petroleum Storage Tank Fund expenses to be paid by sight draft or the month of July 2000.
Estimated expenditure for workers $8,500,000.00
compensation claim costs, dividends
and premium refunds
Funds Expended in June 2000:
Workers Compensation Claim Costs $ 6,341,418.66
Policy Refunds 77,774.94
Total $ 6,335,808.03
Estimated expenditures for $750,000.00
Petroleum Storage Tank Fund
Fund expended in June 2000:
Payroll $ 57,488.85
Claim Costs 279,902.48
WHEREUPON THE MEETING OF THE STATE BOARD OF EXAMINERS was adjourned subject to the call of the Chairman.
-------Governor Dirk Kempthorne
Chairman of the Board
J. D. Williams, Secretary to the Board
and State Controller