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 > Subcommittee Minutes
STATE BOARD OF EXAMINERS
MINUTES – SUBCOMMITTEE MEETING
700 W. State Street, Boise, Idaho
5th Floor, Conference Room A
February 8, 2007


The regular meeting of the Subcommittee to the State Board of Examiners was called to order at 700 West State Street, Boise, Idaho, at 9:00 a.m. pursuant to Idaho Code §67-2002 and by order of the chair.

The following members were present: Brad Foltman, Governor’s Office; Chuck Goodenough, Office of the Secretary of State; Steve Olsen, Office of the Attorney General; and Patrick Hodges, Office of the State Controller, as assisting secretary to the subcommittee.

Also present by invitation were: Lorrie Pond, Bureau of Hazardous Materials; Mike Cooper, Department of Agriculture; Phil Bandy, Department of Agriculture; Donna Walker, Idaho State Historical Society; LeRae Nelson, Military Division; Brad Hoaglun, Office of the State Controller; Brandon Woolf, Office of the State Controller; and Deborah Finkbeiner, Office of the State Controller.


CONSENT AGENDA

1. Minutes
    Approval of official minutes for the meeting of the Subcommittee to the Board of Examiners on December 7, 2006.

    Resolution: Mr. Goodenough moved to approve item 1. Mr. Foltman seconded the motion. The motion carried on a unanimous voice vote. Mr. Olsen deferred because he was not present at the last meeting.


REGULAR AGENDA

2. Idaho State Historical Society
Request for special permission to allow partial reimbursement of housing expenses while
Keith Petersen serves as the Interim Executive Director of the Society.

Discussion: Ms. Walker stated that she is a consultant for the Historical Society. She
explained that the Society is without a leader and the Board of Trustees requested that Keith Petersen serve as interim director while they look for a permanent leader. Mr. Petersen does not plan to stay on with the Historical Society, since he already has a job in North Idaho, which he is anxious to get back to. The Historical society will hopefully have a permanent executive director in place by the beginning of June, 2007. Mr. Petersen is also serving as Project Coordinator for the Lewis and Clark Project in Lewiston. He does not have housing in the Boise area, and has requested that while he is serving in both capacities, there would be some allowance for his housing here. He has been very diligent in searching for housing, and has been staying with many friends in the area. Mr. Petersen had planned on house sitting for a friend, however, that arrangement fell through. He has recently found a furnished apartment in Boise, in which the Society is asking for $450 per month, from February to the end of June. The cost would total $2,250.

Mr. Foltman asked if the proposal is to provide housing, and also the cost of two trips to
Lewiston per month.

Ms. Walker affirmed that was true. She said either Mr. Petersen receives this proposal, or
he will leave the position and return to his other job in Lewiston. He has been a very stabilizing orce to the Historical Society, and has brought improved morale to the office. Mr. Petersen still has ongoing projects in Lewiston and he is trying to cover both jobs.

Mr. Olsen questioned the approval made for lodging from November through December. He asked if there was some background that would help explain the decision made to allow lodging before this request.

Ms. Walker said Mr. Petersen had originally requested only temporary housing. He had hoped it would be from January to the end of June, and he would be able to stay at a person’s house who had planned to be out of state. However, the homeowner returned early, and Mr. Petersen’s housing situation fell through. So the first request was for temporary housing through the end of December.

Mr. Goodenough asked for clarification regarding the memo which stated the Historical Society expects a new director by the first of June, but the request is for Mr. Petersen’s housing through the end of June. Ms. Walker explained that the Board of Trustees would like Mr. Petersen to stay through the end of June so he can train the new director.

Mr. Olsen asked if the $450 a month included utilities.

Ms. Walker responded that the $450 was the entire cost.

Mr. Foltman asked if Mr. Petersen’s commute and airline tickets are being paid for by the Historical Society.

Ms. Walker stated that how the Historical Society in terms of how it is appropriated, is just all one budget, however, the costs could be allocated if needed. Mr. Petersen would travel to Boise on occasion anyway during the month and the Society wanted to make sure that the Board of Examiners was aware that the travel was taking place.

Mr. Olsen said that he understands there is a request for additional monies from the Historical Society before the Legislature.

Ms. Walker answered that yes, the Historical Society is requesting a fiscal staff person to help cover their fiscal program, and they are also asking for additional money for the Idaho History Center.

Mr. Olsen asked if there is a possibility for the budget to be used for housing.

Ms. Walker said that because Mr. Petersen is doing double-duty in Lewiston, and in Boise, he is not doing as much travel or making long distance phone calls, etc., hence his travel costs in Lewiston are not as expensive at this time. She clarified that the Society is not asking for additional money to cover costs. The money has already been allocated. They are just asking to allocate the money differently.

Mr. Foltman asked how much per month is being incurred on travel for Mr. Petersen’s commute.

Ms. Walker said she is not sure, but possibly $300-400.

Resolution: Mr. Goodenough moved to approve item 2. Mr. Olsen seconded the motion.
The motion carried on a unanimous voice vote.

Mr. Foltman asked if there should be a cap or a control not to exceed a particular amount of money.

Mr. Goodenough said a cap should be $450 from February through the end of June 2007.


3. Department of Agriculture
Request approval for deficiency warrant spending authority for the following items:
a. Potato Cyst Nematode Survey, Detection and Eradication Program - $1,800,000.
b. Potato Tuberworm Survey, Detection and Eradication Program - $50,000.
c. Brown Garden Snail Survey, Detection and Eradication Program - $15,000.
d. Survey, Detection and Eradication Programs for Pests and Diseases - $75,000.
For a total of $1,940,000.

Discussion: Mr. Cooper said that the first item listed is the largest because the Department
of Agriculture is trying to support the eradication of the nematode that was found outside of
Shelley, Idaho. The infected fields total about 1,000 acres. It took the Department of Agriculture 6-8 months to pin down the exact location of the nematode. In the meantime, they processed 38,000 soil samples to delineate it and protect Idaho’s potato crops. The potato cyst nematode (PCN) found in Shelley is the first case located in the United States, and the second case found in North America. The USDA is planning on funding a federal program to implement help for PCN eradication. Mr. Cooper stated that the USDA is putting together an emergency budget request. They would like to continue surveillance to ensure no other PCN infestations arise. Mr. Cooper said that the Department of Agriculture would use the money to run surveillance programs and it would give growers assurance they can financially take care of the fumigation of their property. In the meantime, if the federal funding comes through, some of the money from this request could be reimbursed back to the state. Mr. Cooper introduced the second item on the list. The results of the Tuberworm surveys in the past couple of years have been very promising, and after this summer if the results are still positive, then the Department will cut that program completely. With item c, the Department has been undertaking education and treatments with homeowners in the Treasure Valley area. The brown garden snail does not like desert areas, but thrives in moist areas that are heavily landscaped. Hopefully the snail will die out on its own. The last item is a general survey for pests and diseases. Every year the Department applies for about $75,000 for quarantines each year for general surveillance.

Mr. Foltman said that last summer there was an action through the Board of Examiners
for the nematodes.

Mr. Cooper answered, that last summer the PCN infestation was found, and was part of a
federal survey. The detection was confirmed in April, and the Department came before
the Board of Examiners asking for deficiency warrants to cover personnel costs to work
on that program during the summer. A large amount of that money was reimbursed by
federal grants. Mr. Cooper confirmed that last summer the Department asked for money.
There was a lot of overtime during April through July, doing soil samples. The field workers
put in twelve hour days, seven days a week. It took a month and a half to get the equipment in and working. As the workers got control of the process and situation, their hours were dropped back to give the workers some rest.

Mr. Foltman asked if Mr. Cooper has the current authority in the deficiency warrant to perform this request. This is not an issue of the Board of Examiners giving the Department of Agriculture permission to go ahead with the plan. Mr. Cooper actually has the authority to do all of these items on the list through deficiency warrants. The issue here is maybe because of the magnitude of the first item in terms of impact on industry as well as the bill that may result from that, it is a little bit different than the hazardous issues that the Board has to attack. Mr. Foltman said that he does not want to be signaling that there is an issue about the importance of this request. It is just the process in terms of how to go about doing deficiency warrants.

Mr. Bandy responded that yes, the deficiency warrants have been approved for $5 million.
The feds could very well refund a lot of it. The Department just wanted to alert everyone of this issue.

Mr. Foltman said that from a budget perspective, he appreciates the Department letting the Board know now, rather than later if the feds do not come through with the funding. It boils down to the legislative oversight to make a decision on this. Once the legislature leaves town in March or April, on a deficiency warrant basis, those bills accrue, and the legislature can address those at one point as being a supplemental that has fiscal impacts going back to April of 2007. The action will not be taken until 2008. Otherwise, the Board will take whatever numbers we have to the legislature in January 2008, and let them know that these are the costs that have been incurred so far with this issue since the legislature last met.

Mr. Olsen said the money necessary to fund this program has already been approved.
But the Department is coming before the Board saying that it is likely they will be spending this amount of money this year to deal with the PCN issue.

Mr. Foltman said these funds will more than likely be over and above what the agency has as part of their appropriation. That is why it is on a deficiency warrant basis. One question is could this or should this request have been in the budget that we are putting before legislature right now. As long as the authority is there to proceed, and we know that the Department of Agriculture is going to be incurring this, it will require a supplemental in the next legislative session to say we now know what our bills are.

Mr. Cooper said it is hard to know how much money to request year to year.

Mr. Foltman told the men that they are taking the right course of action to address the issue at this point.

Mr. Goodenough asked if other crops can be grown if potatoes are not being grown on the land.

Mr. Cooper said the problem is that other grains can be grown, but what the Department
wants is to maintain control of the fields during the early years with every tool available.
After a few years of fumigating and intense treatment, non potato crops can be grown on the field like high acid grape seed or radishes. The biggest concern is accidentally moving the infected soil. Any earth moving equipment must be thoroughly cleaned before leaving the infected area. The goal is to keep the soil at the origin so that the soil never leaves its original site.

Resolution: Mr. Foltman moved to approve item 3. Mr. Goodenough seconded the motion. The motion carried on a unanimous voice vote.


4. Military Division
a. Request for approval pursuant to Idaho Code §72-928 of payment of worker's
compensation claims for members of the Idaho National Guard, resulting while the
soldier was on duty, in the amount of $24,079.27.
b. Ratification of military contract.

Discussion: Ms. Nelson explained that the request is a routine request. It is a continuous
appropriation to pay for injuries that are incurred by inactive duty guardsmen. The State
Insurance Fund administers these claims. This last summer, soldiers were deployed to help with fires from August to October. There were several instances of soldiers being injured or dehydrated. The claims here are all closed and will not be recurring. Ms. Nelson explained that these are just ongoing quarterly expenses. The Military Division does not pay workers compensation. In essence, the Division is self-funded.

Mr. Foltman asked if the ongoing payments made to the estates of soldiers have a cap.
Seemingly the payments could go on for years and years.

Ms. Nelson agreed to find out more information regarding the estates of soldiers.

Mr. Foltman said that maybe there is another way to address those payments if they are
recurring costs, instead of the Board revisiting them quarterly.

Resolution: Mr. Goodenough moved to approve item 4. Mr. Foltman seconded the motion. The motion carried on a unanimous voice vote.


5. Health and Welfare
    Request that $122,538,900.00 be transferred from the General Fund to the Cooperative Welfare Fund #0220 during the third quarter of Fiscal Year 2007.
Resolution: Mr. Foltman moved to approve item 5. Mr. Goodenough seconded the motion. The motion carried on a unanimous voice vote.


6. Bureau of Homeland Security, Division of Military, Executive Office of Governor
ID #
Description
Amount
Comments
Date to Board
    2006-00253
HazMat
$380.52
Incident at 2700 E. Lincoln Rd. in Idaho Falls, involving a dump truck that ran over a metal rail, puncturing the fuel tank and leaking approximately 50 gallons of fuel onto the ground.
1/2/06
    2006-00256
Drug Lab
$1,440.45
Incident at 688 Als Welding Drive in Spirit Lake involving a suspected drug lab.
1/2/06
    2006-00257
HazMat
$2,518.18
Incident involving a dump truck that hit a commercial vehicle hauling a 38-foot cabin cruiser boat, resulting in a diesel, hydraulic fluid and oil spill.
1/2/06
    2006-00269
HazMat
$143.45
Incident in Hayden involving a motor vehicle accident that resulted in a diesel spill.
1/2/06
TOTALS
$4,482.60

Resolution: Mr. Goodenough moved to approve item 6. Mr. Olsen seconded the motion.
The motion carried on a unanimous voice vote.


Discussion: Mr. Hodges asked the Subcommittee about the importance of holding the Board meeting on the Second Tuesday of the month. The Idaho Statues say the Board of Examiners meeting should be the second Tuesday, but they are thinking about moving the meeting to the third Tuesday to accommodate the requirements of the Land Board.

Mr. Goodenough advised that someone should bring it up again at the Regular Board meeting next week.

Mr. Foltman asked if there were any problems with the buck slip.

Mr. Hodges said the Military is required to get the Board of Examiners’ approval for anything over $50,000. Buck slips are a quicker process to get the Military contract approved. The Attorney General has asked that these contracts be placed on the agenda for ratification at the regular board meeting.

Mr. Foltman moved to adjourn the meeting at 10:13 a.m.


INFORMATIONAL AGENDA

7. Attorney General.
    a. Notification that V. Rafael Stone, of the firm of Foster Pepper, PLLC in Seattle, Washington, has been appointed pursuant to Idaho Code §67-1409 as a Special Deputy Attorney General for the purpose of representation of PERSI in investment-related transactional matters that include, but are not limited to, PERSI’s private equity and private real estate investments.

    b. Notification that Paul Madden of the firm of Whiteford, Taylor & Preston, LLP in Baltimore, Maryland, has been appointed pursuant to Idaho Code §67-1409 as a Special Deputy Attorney General for the purpose of consultation, research, and advice on federal tax and regulatory issues related to plan qualification and compliance, as needed and when requested by PERSI.

    c. Notification that Robert J. Burke, of the firm of Oles, Morrison, Rinker & Baker, LLP in Seattle, 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 the matter of Entranco, Inc., Case No. 05-18793-SJS, Washington Bankruptcy Court.

    d. Notification that Lawrence E. Kirkendall, Attorney at Law, 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 the case of Stoddard v. Indust.

    e. Notification that Mary V. York of the firm of Holland & Hart, LLP, has been appointed pursuant to Idaho Code §67-1409 as a Special Deputy Attorney General for the purpose of researching, analyzing legal issues, and advising the Idaho Transportation Department, as well as representing the Department in administrative and/or judicial proceedings, related to the Connecting Idaho Program.

    f. Notification that Lawrence E. Kirkendall, Attorney at Law, 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 the case of Treshow v. Indust.

    g. Notification that John W. Barrett of the firm of Moffatt, Thomas, Barrett, Rock & Fields, Chtd., 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.

    h. Notification that Michael Winget-Hernandez, Winget-Hernandez, LLC, in Austin, Texas has been appointed pursuant to Idaho Code §67-1409 as Special Deputy Attorney General to participate on behalf of the State of Idaho in the investigation of refund and settlement negotiations arising out of, and, if necessary, in a litigation filed against some or all of the members of the pharmaceutical industry related to the industry’s use of “average wholesale price” drug price methodology.

8. State Insurance Fund
    a. Estimate of the State Insurance Fund expenses to be paid by sight drafts for the month
    of December, 2006.

        Estimated expenditure for workers compensation claim costs, dividends and premium refunds
    $25,000,000.00
      Funds Expended in November, 2006
      Workers Compensation Claim Costs
    9,691,775.98
      Dividend
    00
      Commissions
    00
      Policy Refunds
    449,802.72
      Total
    10,141,578.70

    b. Estimate of the Petroleum Clean Water Trust Fund expenses to be paid by sight draft for the month
    of December, 2006.

        Estimated expenditure for Petroleum Clean Water Trust Fund
    $750,000.00
      Funds Expended in November, 2006:
      Payroll
    59,686.17
      Operations
    14,465.65
      Claim Costs
    246,755.08
      Total
    320,906.90

    c. Estimate of the State Insurance Fund expenses to be paid by sight drafts for the month of
    January, 2006.
        Estimated expenditure for workers compensation claim costs, dividends and premium refunds
    18,000,000.00
      Funds Expended in December, 2006
      Workers Compensation Claim Costs
    13,213,009.83
      Dividend
    14,471,062.81
      Commissions
    3,610,061.54
      Policy Refunds
    403,094.10
      Total
    31,697,228.28

    d. Estimate of the Petroleum Clean Water Trust Fund expenses to be paid by sight draft for the month
    of January, 2006.

        Estimated expenditure for Petroleum Clean Water Trust Fund
    $750,000.00
      Funds Expended in December, 2006:
      Payroll
    96,587.89
      Operations
    24,732.07
      Claim Costs
    156,941.40
      Total
    278,261.36

      A meeting agenda will be available at the Idaho State Controller’s Office, 700 West State Street, Boise, Idaho, two (2) working days before the meeting.

      If you have questions or would like to arrange auxiliary aides or services for persons with disabilities, please contact the Idaho State Controller’s Office at (208) 334-3100. Accommodations for auxiliary aides or services must be made no less than five (5) working days in advance of the meeting.

      The CONSENT AGENDA addresses routine items the board may approve without discussion.

      The REGULAR AGENDA addresses policy and program items the board may wish to discuss prior to making a decision.

      The INFORMATION AGENDA provides information only.

      The agendas are subject to change and the Board may move an item from one agenda to another.

    Page last updated on 03/08/2007 03:31:19 PM