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
STATE BOARD OF EXAMINERS
MINUTES – REGULAR MEETING
700 W. State Street, Boise, Idaho
1st Floor, East Conference Room
November 12, 2003


The regular meeting of the State Board of Examiners was called to order at 700 West State Street, Boise, Idaho, at 9:58 a.m. pursuant to Idaho Code §67-2002 and by order of the chair.

The following board members were present, constituting all the members: Governor Dirk Kempthorne, chairman of the board; Secretary of State Ben Ysursa; and Attorney General Lawrence Wasden.

Also present by invitation was Daryl Bertelsen, Superintendent of Whitepine Joint School District, Deary, Idaho.

State Controller Keith Johnson, secretary to the board, recorded the proceedings of the meeting.

Governor: We’ll call the Board of Examiners to order and would call upon the State Controller.

State Controller: Good morning, Governor; members of the committee. Subcommittee met last week to prepare the agenda for today’s board meeting. You have before you that agenda. There are four items on the consent agenda. There is just one item on the regular agenda and there’s, looks like there are three or four items on the informational agenda. I’ll provide background information that you need on those items.

Governor: All right, are there any questions or comments?

Secretary of State: Governor, I move approval of the consent agenda.

Attorney General: I would second the….

Governor: Moved and seconded. Discussion? Those in favor please say “aye.” Response of “aye.” Those “nay?” The “ayes” have it: so carried.


· CONSENT AGENDA
1. Minutes–Approved

    Approval of official minutes for the subcommittee meeting of the Board of Examiners on September 9, 2003.

2. Bureau of Hazardous Materials, Division of Military, Executive Office of Governor–Approved
    Request for authorization to issue deficiency warrants for reimbursement of response costs incurred during September and October pursuant to Idaho Code §39-7110.
    ID #
    Description
    Amount
    Comments
    Date
        a. 2003-1942
    Diesel Spill
    137.80
    Vehicle accident
    5/28/03
        b. 2003-2477
    Chemical Spill
    392.18
    Ariel contaminant w/exposure
    7/1/03
        c. 2003-2514
    Diesel Spill
    882.89
    Vehicle accident, fuel in waterway
    7/3/03
        d. 2003-3050
    Drug lab
    1242.39
    Typical
    7/31/03
        e. 2003-3367
    Biohazard
    85.64
    Retrieved pkg from police and deliver to lab
    8/17/03
        f. 2003-2188
    Biohazard
    680.85
    Substance on roadway
    6/12/03
        g. 2003-3083
    Drug Lab
    760.74
    Typical
    8/2/03
        h. 2003-1649
    Spill
    2562.73
    Gasoline leaking from underground pipes
    9/12/03
        i. 2003-3543
    Hazmat
    1773.04
    Blasting caps by road
    8/28/03
        j. 2003-3052
    Drug Lab
    374.36
    Typical
    7/31/03
        k. 2003-3530
    Mercury spill
    3958.09
    Large qty of mercury spilled in garage and driveway
    8/27/03
        l. 2003-3156
    Drug Lab
    499.60
    Lab in vehicle
    8/4/03
        m. 2003-3938
    Biohazard
    364.41
    Suspicious powder at tax commission
    9/22/03
        n. 2003-3068
    Biohazard
    50.00
    Unknown powder in an envelope at Jerome County Courthouse
    8/1/03
        o. 2003-4097
    Hazmat
    3236.55
    Unknown substance in river
    10/3/03
    Total
    $17,001.27
3. Division of Military, Executive Offices of the Governor–Approved
    Request to pay $5,152.35 to the State Insurance Fund for workers’ compensation claims for members of the Idaho National Guard during the quarter ending September 30, 2003 pursuant to Idaho Code §72-928.

4. Department of Administration–Approved
    a. Request for recognition of assignment as executed by Assignor Rick Yzaguirre of Eagle, Idaho and Assignee John Wagers, of Boise, Idaho for a real property lease regarding the State of Idaho, by and through the Idaho State Liquor Dispensary as ‘Lessee’ and Lessee’s occupancy of 174 West State Street, Eagle, Idaho, pursuant to Idaho Code §67-1027.

    b. Request for recognition of assignment as executed by Assignor Wallace-Hudson & Associates of Pocatello, Idaho, and Assignee Wallace & Booth Architects, LLC, of Pocatello, Idaho, for a transfer of interest in three (3) DPW Projects pursuant to Idaho Code §67-1027:

      1) DPW Project No. 04090, CSI Scott’s Building Roof Replacement

      2) DPW Project No. 04220, ISU Mech/Tech Building Roof Replacement

      3) Contract for Roofing Architectural Services for FY2004 and Fy2005.


    c. Request for approval of a Memorandum of Understanding (MOU) between the Idaho State Agency for federal surplus property, Division of Purchasing, Department of Administration, and the GAS Property Office pursuant to Idaho Code §67-5740(e).


State Controller: Item number 5 is one item on your regular agenda. It comes from the Whitpine School District: a request to approve a claim for $377,555. There should be background information provided to you in your board material and I’ll be happy to address any question that you may have.

· REGULAR AGENDA
5. Whitepine School District No. 288–Defer one month pending further consideration

    Request to approve a claim for $377,555 to fulfill the statutory grant formula pursuant to the School Safety and Health Revolving Loan Fund. By formula, Whitepine Joint School District #288 should have received $784,000 in subsidies. However, its application was the last one received, and by the time it was processed, the balance of the fund failed to remit the full amount. The School District respectfully requests board approval and recommendation to the Legislature to pay the balance of their allocation with this claim.

Discussion:

Attorney General: Governor, I’d like to address this, if I may?

Governor: Mr. Attorney General.

Attorney General: This is an issue that arose over a number of years ago: over about the last 18 months, in which Whitepine School District passed a bond that would have been supported by a program the legislature provided for payment of interest. That when the legislature adopted that program, it set aside $10M for payment of those bonds. A series of school districts filed applications for that interest subsidy and Whitepine School District was the last of those school districts to make an application. The (pause) at that point, that (pause), that fund had been expended except for about $400,000, approximately. Whitepine’s request exceeded that $10M by about $377,000. So Whitepine got a partial funding for that bond subsidy, but was not reimbursed for the $377,000, approximately.

A number of weeks ago, I was in Lewiston and spoke to Superintendent Daryl Bertelsen. He wanted to know if there was anything that we could do to help on this claim. And I told him that I didn’t have anything, that there was nothing in my budget that I could do to address that problem. But gave some consideration to that and really felt like it was appropriate for this matter to be brought before this board. And so, I wrote a letter on November 3rd to the attorney for the Whitepine School District and urged them to submit a claim to this board, to the Board of Examiners. They did that immediately: the next day, November 4th; submitted a claim to this board. I realize that this is a very short time period for this board to consider the matter, and I’ve had, probably had, the advantage of my two other board members in that I’ve been dealing with this perhaps more than others have been. And so, perhaps more familiar with it than others, but in doing that, I certainly indicated to Mr. Bertelsen my support for this application and my belief that it is, the equity certain run to its approval. So, I wanted to make sure that it was pretty clear that I am the one that contacted the board to do that and because I really felt like (pause) petty strongly about this issue. So, I wanted to make sure everyone understood why that is before the board today.

Governor: Further discussion?

Secretary of State: Governor, I could appreciate what the Attorney General has said. I for one, ah, all well maybe I for two, (chuckle). I for one think the equities appear favor Whitepine on this issue, but there’s been 15 months since the interest payment was granted from the Treasurer’s Office and now it hits us last week and now today we’re asked to make a decision. Again I (pause) I believe that the equities do appear to favor Whitepine, but I would like a little more time on this to analyze some of the policy and precedent that this might set as well as to discuss this matter with some legislators. And I (pause), which I’ve personally not done on this issue. And I would move that we defer this matter until the December Board of Examiners’ meeting, and with the caveat that if somebody has traveled to talk at this meeting, I think that aught to grant them that. But I would make that motion to defer until December.

Attorney General: I will second that motion. I’ve already noted my support for this and I can, (pause) certainly want to make that the other members of the board have opportunities to consider this matter and its policy implications. But at the same, setting the matter in December would certainly not prejudice Whitepine in any way, because we would make a decision prior to the legislature convening in January when this matter would be submitted to the legislature for their consideration. So, I think that, (pause) that would accomplish the aims that we have. But again, I voice my full support for Whitepine in this matter.

Governor: Mr. Attorney General, may I ask you what remedy you anticipate?

Attorney General: Certainly, this matter would be submitted to the legislature for its consideration, about whether they would provide funding for this. This Board of Examiners’ approval submits it to them and saying we think this is a legitimate issue.

Governor: So, in other words, you would be a, (pause) in this capacity as the Board of Examiners, simply a recommending body?

Attorney General: Correct.

Governor: A non-appropriating body?

Attorney General: That’s correct.

Governor: Do you affirm that the $10M that was appropriated by the legislature has been expended?

Attorney General: Yes.

Governor: Mr. Bertelsen, you are here? Would you like to make any comments since you have traveled here?

Mr. Bertelsen: Yes, I would. Thank you, Governor, I appreciate it.

Governor: Would you come forward.

Audience with the Board:

Mr. Bertelsen: I’m Daryl Bertelsen, Superintendent of Whitepine School District, and I appreciate your opportunity to speak to the Board of Examiners. We, as you are aware, passed a plant facility levy two years ago under the expectation that we would be funded through House Bill 1017 for our appropriate share of the interest, which amounted to over $700,000, almost $800,000. And I had talked with legislators, had communicated with legislators, about their funding, providing additional funding, for the bill. So I haven’t been really amiss or just let it go when we didn’t get the full appropriation that we thought we should—that we’re entitled to. And I appreciate Mr. Wasden’s recommendation that we submit this to the Board of Examiners. I was not aware that was an avenue open to us until he pointed it out to us, but he certainly, supportive of our request for this additional funding. So, I would just encourage you and request that you do submit a recommendation to the legislature that they do find funding for the balance of our grant. We are about the eighth highest taxed school district in the state of Idaho at the current time. A lot of that is because of building bonds that we have. We have over $3 per thousand that we’re paying off in building bonds and plant facility levies at the current time, and if we (pause), we had anticipated this funding to help defray the balance of the expenses, we’d have in our buildings. Without that, we are gonna have a hard time holding our taxpayers’ costs down: they are gonna start going up on us again. And in north Idaho, that is getting pretty prohibitive up there.

The other, another part that hit Whitepine bad is the timber tax reduction. That started four years ago, has dropped our value from $168M down to about $139M just loss in timber value. So that’s, (pause) each year our taxes go up even though we don’t get anymore money for it. So this would really be a benefit to the Whitepine School District from the legislature.

Governor: What is the current status, Daryl, of your construction?

Mr. Bertelsen: We have just about got it completed. We’re doing the punch list now. We’ve eliminated most of the safety hazards and health concerns. We had, we have, (pause) we have to fix some of the things that when moved the building over, we ruined the playground. We have got some of that outside work to do. We’ve got a bunch of work to do yet, but it’s gonna be on hold ’til we see the results of this request.

Governor: Daryl, Whitepine School District has filed suit against the state. You’re aware of that?

Mr. Bertelsen: In the ISCEO?

Governor: Well, for these funds. That’s…

Mr. Bertelsen: For these funds, correct? We did a counter claim when we, when district was sued through 403. Then we did a counter claim to, (pause) for the funds, saying, you know, on the safe school issue thing.

Governor: Right. So you have a suit pending against the state of Idaho?

Mr. Bertelsen: Yes…

Governor: …about eight days way? I believe it’s to be heard in eight days?

Mr. Bertelsen: Yes.

Governor: You are aware that I have been named also as a defendant in that lawsuit?

Mr. Bertelsen: Yes.

Governor: You can appreciate, therefore, that in that situation, I’m very mindful of anything that I say here?

Mr. Bertelsen: Yes.

Governor: And how that can be construed or used?

Mr. Bertelsen: Correct.

Governor: So, I feel that I’m in a bind because of being named in that lawsuit personally: any other comments that you would like to make?

Mr. Bertelsen: (No reply)

Secretary of State: Governor, if I may ask a question?

Governor: Well let me ask Mr. Bertelsen, what is the remedy that you are seeking and if that remedy is achieved, what course of action does Whitepine School District take?

Mr. Bertelsen: I think, Governor, in the direction we’re going here, in the whole process of things, (pause) in the original lawsuit, Whitepine had actually dropped out and was not participating in that anymore. When we were named under the 403AA suit, we had submitted information to the state, as far as our building plan goes. We’re a little miffed when we were named in the suit; kinda we’re sitting around to see what was happen’. And then, because we still felt that the state owed us money, we thought that maybe the way to bring this about was through this counter claim because our goal is to have safe facilities and be able to operate the school and to provide quality education for the kids. And this, the balance of this payment, that we feel we’re entitled to from the state, would sure help us to do that. And if we had that funding, we would be happy to just go back to north Idaho and educate the kids like we are supposed to do.

Governor: And you were named in the suit?

Mr. Bertelsen: Pardon?

Governor: You were named in the suit?

Mr. Bertelsen: In the,(pause) Whitepine District was? Yes. So…

Governor: Mr. Ysursa?

Secretary of State: Governor and Daryl, the (pause) at the time of the plant facility levy, May 28, 2002, this was obviously, (pause) was this part of the selling point that there would be a grant on the interest?

Mr. Berkelsen: Of course.

Secretary of State: And it became a, was it a key component of selling it to the voters?

Mr. Berkelsen: Yes, it was a big part of that (pause) getting the voters to approve it. They had seen an adjoining school district do the same thing and improve their facility. So, and we were basically in the same predicament as far as tax base. So, that was a strong point, selling point in passage of that levy, yah.

Governor: You had dropped originally from the suit, that’s correct?

Mr. Berkelsen: Correct.

Governor: You were then named in a follow-on suit by the state?

Mr. Berkelsen: We dropped out of the ISCEO in…second year I think. Whitepine was separate and did not basically, for I think philosophical reasons, the board decided to dropout. And that’s why we were rather surprised when we were named in the, in the lawsuit from the, (pause) the AG in 403 for unsafe schools. We were (pause) really kind of surprised ‘cause when that was comin’ about I thought, well, we’ve submitted our plan. We’ve done these things, so (cough on tape) we named as in that lawsuit.

Governor: By the Attorney General?

Mr. Berkelsen: Pardon?

Governor: By the Attorney General?

Mr. Berkelsen: Correct.

Governor: Can you appreciate why I must be constrained in my comments in these…

Mr. Berkelsen: Yah, I can, sir.

Governor: Further comments and discussion?

Attorney General: Nothing.

Resolution:

Governor: All right, we have before us then a motion to defer this until December. If there is no further debate, those in favor please say “aye.” Members responded unanimously with an “aye.” Opposed “nay;” the “ayes “ have it. Daryl, may I just say too that I appreciate the work that you and your colleagues do at Whitepine School District and—your business is the education of the kids—and we have great kids there. So,…

Mr. Berkelsen: Thank you.

Governor: …continued success to you.

Mr. Berkelsen: Thank you, we’ll go get back to the, that then.

Governor: Right. All right, Mr. Controller, other items?

State Controller: Yes, there are three remaining items on your informational agenda. That’s it.

· INFORMATIONAL AGENDA
6. Attorney General

    a. Notification that Robert E. Bakes of the firm of Moffatt, Thomas, Barrett, Rock & Fields has been appointed pursuant to Idaho Code §67-1409 as a special deputy attorney general for the purpose of representing Judge Deborah A. Bail in the case of State of Idaho v. Fourth Judicial Court and District Judge Deborah A. Bail, Idaho Supreme Court Docket No. 29203.

    b. Notification that Andrew Bohrnsen of the firm of Bohrnsen & Stowe in Spokane, Washington, has been appointed pursuant to Idaho Code §67-1409 as a special deputy attorney general for the purpose of representing the State of Idaho, Idaho Transportation Department in case of Bailey, et al. v. State of Idaho, et al., Case No. CV PI 02-00079.

    c. Notification that Peter C. Erbland of the firm of Paine, Hamblen, Coffin, Brooke & Miller has been appointed pursuant to Idaho Code §67-1409 as a special deputy attorney general for the purpose of representing the State of Idaho in case of Cole v. Estate of Patrick Gleason, et al., Superior Court of Washington, Whitman County, Colfax, Washington, Case No. 032001897.

    d. Notification that Richard A. Skinner of the firm of Skinner Fawcett has been appointed pursuant to Idaho Code §67-1409 as a special deputy attorney general to provide bond counsel services to the Idaho Water Resources Board in the matter of Water Resource Development Revenue Warrants, Bonds, or Notes Series 2003 (Last Chance Canal Company, Ltd.--Flume Replacement Project).

    e. Notification that Richard A. Skinner of the firm of Skinner Fawcett has been appointed pursuant to Idaho Code §67-1409 as a special deputy attorney general to provide bond counsel services to the Idaho Water Resources Board in the matter of Water Resource Development Revenue Bonds Series 2003 (Tamarack LLC).

    f. Notification that Mary A. Brauer of the firm of Reinhart, Boerner, Van Deuren, P.C. has been appointed pursuant to Idaho Code §67-1409 as a special deputy attorney general for the purpose of providing legal advice and counsel related to the Idaho State Board of Education’s Optional Retirement Program.


7. State Controller’s Office
    a. Presentation of comments by target agencies and groups regarding the proposed amendments to the State Moving Policy.

    b. Notification of the Endowment Fund Investment Board closing a rotary fund effective October 24, 2003. Any remaining funds were returned to the reserve administrative fund and all related transfer transactions were completed.


8. State Insurance Fund
    a. Notification of the State Insurance Fund estimate of expenses to be paid by sight drafts and prior month’s disbursements for September 2003.
        Estimated expenditure for workers compensation claim costs, dividends and premium refunds
    $15,000,000.00
      Funds Expended in August 2003
      Workers Compensation Claim Costs
    9,422,658.87
      Dividend
    0
      Commissions
    23,300.94
      Policy Refunds
    223,922.01
      Total
    $9,669,881.82
    b. Notification of the State Insurance Fund estimate of the Petroleum Clean Water Trust Fund expenses to be paid by sight draft and the funds expended in the prior month of September 2003.
        Estimated expenditure for Petroleum Clean Water Trust Fund
    $750,000.00
      Funds Expended in August 2003:
      Payroll
    84,286.99
      Operations
    22,332.01
      Claim Costs
    204,941.54
      Total
    $311,560.54
    c. Notification of the State Insurance Fund estimate of expenses to be paid by sight drafts and prior month’s disbursements for October 2003.
        Estimated expenditure for workers compensation claim costs, dividends and premium refunds
    $15,000,000.00
      Funds Expended in September 2003
      Workers Compensation Claim Costs
    9,167,371.44
      Dividend
    0
      Commissions
    2,073,409.60
      Policy Refunds
    150,918.64
      Total
    $11,391,699.68
    d. Notification of the State Insurance Fund estimate of the Petroleum Clean Water Trust Fund expenses to be paid by sight draft and the funds expended in the prior month of October 2003.
        Estimated expenditure for Petroleum Clean Water Trust Fund
    $750,000.00
      Funds Expended in September 2003:
      Payroll
    58,249.53
      Operations
    6,934.45
      Claim Costs
    178,813.76
      Total
    $243,997.74

Governor: Other items to come before us? If not, Examiners stand adjourned.

There being no further business before the board, THE MEETING OF THE STATE BOARD OF EXAMINERS WAS ADJOURNED at 10:15 a.m.


__________/s/ Dirk Kempthorne________
Dirk Kempthorne, Chairman of the Board and
Governor of the State of Idaho




__________/s/ Keith Johnson____________
Keith Johnson, Secretary of the Board and
Idaho State Controller







Minutes of State Board of Examiners or the Subcommittee Meetings

The secretary to the board prepares preliminary minutes as a courtesy for the reader. Preliminary minutes have not been approved by the State Board of Examiners or its subcommittee and do not constitute the official minutes of the meeting. The minutes become official after approval at a subsequent meeting. Should you have any questions regarding these minutes, please contact brdexam@sco.state.id.us or call the Idaho State Controller’s Office at 334-3100.
    Page last updated on 07/12/2006 01:40:21 PM