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
March 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; Brian Benjamin, Office of the Attorney General; and Patrick Hodges, Office of the State
Controller, as assisting secretary to the subcommittee. Steve Olsen, Office of the Attorney General was absent.

Also present by invitation were: Lorrie Pond, Bureau of Hazardous Materials; John McAllister, Department of
Commerce and Labor; Joni Booth, Department of Commerce and Labor; Gordon Graff, Department of Commerce
and Labor; Liza Carberry, State Treasurers Office; Susan Lowman-Thomas, Division of Veterans Services;
Brad Hoaglun, Office of the State Controller; Brandon Woolf, Office of the State Controller; Jennifer Bonilla,
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 February 8, 2007.

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


REGULAR AGENDA

2. Department of Administration
a. Request for recognition of assignment pursuant to Idaho Code §67-1027 from
Tatonka Capital Corporation to Blue Mountain Capital, Inc.
b. Request for recognition of assignment pursuant to Idaho Code §67-1027 from
3rd & 3rd Investors to the Mirams Family Trust.

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

3. Bureau of Homeland Security, Division of Military, Executive Office of
Governor
ID#
Description
Amount
Comments
Date to Board
2006-00283
BioHazard
$1,674.06
Incident at the Idaho State Prison in Boise, involving an unknown white powder in an envelope. Responsible party is unknown at this time.
3/5/06
2006-00284
HazMat
$635.00
Incident at 7880 Mossy Cup Street in Boise involving a fuel spill from a hole in a semi's saddle tank. Approximately 50 gallons of diesel had been released.
3/5/06
2006-00285
HazMat
$4,408.71
Incident at the Boise State University in Boise, involving a possible leak from the boiler system leaking into the sumps and being released into the Boise River.
3/5/06
2006-00287
HazMat
$557.50
Incident at S. Owyhee and Rose Hill Streets in Boise, involving an auto accident resulting in a saddle tank of a tractor trailer. Approximately 20 gallons of diesel fuel had been released.
3/5/06
2006-00294
HazMat
$1,633.91
Incident at 1105 E. Merrill Road in McCammon, involving an unknown substance released onto the roadway.
3/5/06
2006-00303
HazMat
$607.96
Incident on I-84 westbound, milepost 79 in Elmore County, involving a semi truck leaking fuel onto the roadway while in transit.
3/5/06
2006-00307
HazMat
$3,396.36
Incident at Sage and Saddlehorn streets in Parma, involving possible chemical hazards. Barrels of unknown chemicals were located in an unused field.
3/5/06
2006-00309
HazMat
$1,843.34
Incident at 856 Russett Street in Twin Falls, involving a large release of Anhydrous Ammonia.
Approximately 8609 pounds of the Ammonia was released. Businesses to the south were evacuated because of the fumes.
3/5/06
TOTALS
$14,756.84

Discussion: Ms. Pond stated that several of the insurance companies and responsible parties have
been contacted and the state will be reimbursed on almost all of the incidents. A few of the incidents
were by unknown parties. Most of the items that are reimbursed will go back into the fund.

Mr. Foltman asked what the nature was for the costs of the BSU claim.

Ms. Pond explained that the costs included overtime for the teams that went in to the site. Most of it was
for medical monitoring of the employees. The substance that leaked from the boiler was expected to have
also leaked into the Boise River.

Mr. Goodenough asked what the boiler was boiling that would be so dangerous.

Ms. Pond said the substance was HM12, which is cyfluthrin. The biggest cost was for the emergency workers’
overtime hours ($1,900), vehicles the workers used which were charged by mileage, and medical monitoring of
emergency responders. Seven people went in for monitoring.

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


4. Division of Veterans Services
Request that the maximum limit for vacation accrual be lifted for six (6) months
for Milton Smith, who is employed at the Idaho Division of Veterans Services.

Discussion: Ms. Lowman-Thomas said that Mr. Smith is one of eight service officers who provide help to Idaho’s 135,000 vets. He helps them get benefits from the federal VA and helps them identify options including home loans, insurance, and medical care, etc. The Division has a huge challenge getting people recruited. Mr. Smith was hired in April 2005, and came from Commerce and Labor with a vacation balance of 147 ½ hours. Once he was hired, Mr. Smith’s first year of training was very intense. The first year is strenuous with traveling and learning the job. There were several staff vacancies in Lewiston, so it was a challenging workload and year for Mr. Smith. He donated leave and is limited by how many hours he can donate. Mr. Smith is out of the training mode and into his regular work mode in helping veterans from now on. He has agreed to take as many vacation hours as soon as possible.

Mr. Benjamin asked if the primary reason for Mr. Smith having to work more and not take vacation is the
vacancy in Lewiston.

Ms. Lowman-Thomas responded that yes, it was a combination of the vacancy, and Mr. Smith’s first year of training, which caused him to not be able to take vacation days.

Mr. Foltman asked if this item came from Mr. Smith, or if it was requested from the agency on behalf of Mr. Smith.

Ms. Lowman-Thomas said that Mr. Smith came directly to her for the request.

Mr. Foltman said that he is looking for the unusual circumstances in the request. He asked Ms. Lowman-Thomas if the Board were to not approve this claim, would Mr. Smith just keep losing his vacation hours at some given rate.

Ms. Lowman-Thomas answered yes, and that it is not necessarily an emergency.

Mr. Benjamin said there is a statute requirement for unusual or emergency situations. The Subcommittee is
reluctant to grant these types of requests for obvious reasons. Mr. Benjamin asked if there would be a way to tailor something different for the situation.

Mr. Goodenough stated that there is a degree of emergency circumstances given the fact that Idaho has quite
a few people returning from active duty participation--something that the Idaho Guard has not done in a long while. There is a significantly greater demand on the officers’ services, and with a shortage of qualified workers, it should be recommended on the regular agenda.

Mr. Benjamin said that there should be some kind of a cap on the vacation lift.

Mr. Foltman asked how much vacation a person would accrue at Mr. Smith’s employee level.

Mr. Woolf answered that Mr. Smith would be accruing 4.6 hours per pay period of 80 work hours.

Ms. Lowman-Thomas added that very few people are qualified to be service officers. The learning curve is
steep on this position.

Resolution: Mr. Foltman moved to approve item 4 to extend the limit for vacation accrual to four months or forty
hours, whichever is less. Mr. Goodenough seconded the motion. The motion carried on a unanimous voice vote.

5. Commerce & Labor
Request approval to use Penalty and Interest monies under Idaho Code §72-1348 for the following:
a. Up to $1,000,000 for the construction of the new local office facility in Canyon County.
b. Up to $30,000 for staff working with the Arts Commission during the illness and after the
death of the Arts Commission director Dan Harpole.
c. Up to $1,250 for the development of a web site for the Abraham Lincoln Bicentennial
Commission.

Discussion: Mr. McAllister said there is enough money to cover each of these items. As for item a.,
Mr. McAllister responded that Commerce & Labor will be able to construct the new facility in Canyon County
with no problems. As for item b., Commerce and Labor is now in the process of looking for a replacement director. Concerning item c., $1250 is half of the cost of the Web site. The other half is paid for by Tourism.

Mr. Benjamin said he looked up the statute, and this is money that has already been appropriated to be used by the director for any lawful purpose.

Mr. Foltman asked about the Abraham Lincoln Bicentennial Commission, and if it was an ongoing program.

Mr. McAllister answered that it will be over in 2009, celebrating Lincoln’s birth. He stated that this cost is an estimate. The Web site will be on the Commerce and Labor’s infrastructure. Keeping it there is a nonexistent cost; designing the Web site is what will cost the most.

Mr. Foltman responded on the Arts Commission, that while they are in a state of flux, they have generated some
salary savings. They are reluctant to commit until they have actually hired their executive director. It would appear that the Commission would have sufficient resources to make this commitment of $30,000 without needing Penalty and Interest funds.

Mr. McAllister said the bulk of the fund is for buildings. Commerce and Labor has been using it since the 1950’s.

Mr. Foltman said it may be premature to decide on the Arts Commission. The bill needs to get paid. Maybe the
real burden is on the Arts Commission at this point. The Board has some time to figure it out.

Mr. Goodenough asked if there is a mechanism to be reimbursed from the Penalty and Interest fund.

Mr. McAllister said yes.

Mr. Benjamin asked if the Arts Commission can possibly pay for this out of their salary savings, instead of the
Penalty and Interest fund. He asked if the information could be looked up before the meeting next week.

Mr. Woolf answered that yes, the reports can be retrieved before the Board of Examiners regular meeting next week.

Mr. Foltman said his concern is the use of this particular fund. Other agencies may not have access to this
particular way to cover their expenses. Trying to recruit someone into the agency is not an unusual thing, and
so the pressure is on to provide a good compensation package. Agencies in other situations may not have
access to Penalty and Interest funds. This has become available because of the unique relationship between
the Governor asking the Department of Commerce and Labor to provide acting duties and capacities for the
Arts Commission, and then has allowed a certain level of flexibility that does not exist in other places. Mr.
Foltman said this is unique, but it has not gotten to the point of being critical. The Subcommittee might not need to take that action today. The Arts Commission is still in the recruiting process, and next month might know more as to the moving costs, etc. The Board should wait on it for another month to gather the necessary information to make the best decision.

Resolution: Mr. Gooenough moved to approve item 5 a. and c., and moved item b. to be deferred until next
month. Mr. Foltman seconded the motion. The motion carried on a unanimous voice vote.

6. Attorney General
Request approval for the State's payment of costs for the services of Special Remedial Master
Charles Hummel, who was appointed by District Judge Deborah A. Bail in the case of Idaho
Schools for Equal Educational Opportunity v. State, Ada County District Court Case No. 94008.

Discussion: Mr. Benjamin introduced the item and stated that the members received a letter this morning
from Mr. Michael Gilmore of the Attorney General’s office. He is the deputy who argued this case and there
was a Special Master appointed to look at some of these schools to figure out what the costs were to update
them. Before there was an appropriation, Mr. Gilmore challenged the court’s authority to make the State pay
for this because there was not an appropriation. The Supreme Court disagreed with him. Mr. Benjamin
recommended taking up the item, even though it was late getting to the Board. Interest is accruing every day,
and has reached $3,000 so far.

Mr. Foltman said that he supports having this item addressed as a claim to the State. The Legislature needs to
make it an appropriation. Since they are currently in session, they can decide what to do with it.

Resolution: Mr. Foltman moved to recommend item 9 for the regular agenda for approval of the claim. Mr.
Goodenough seconded the motion. The motion carried on a unanimous voice vote.

7. State Treasurer
Request for approval to issue the Fiscal Year 2008 Tax Anticipation Notes.

Discussion: Ms. Carberry noted the State Treasurer’s annual request for approval for the issue of the tax
anticipation notes. The Treasurer’s Office obtained information from the Department of Insurance and the Tax
Commission and 75% of their estimate would be $2 billion. Ms. Carberry explained that they would never spend
$2 billion. They spend around $100-300 million.

Mr. Foltman asked if the State Treasurer wanted to make a personal presentation to the Board of Examiners on Tuesday.

Ms. Carberry said that yes, the Treasurer will be present at the regular Board meeting.

Resolution: Mr. Foltman moved to recommend item 6 for the regular agenda. Mr. Goodenough seconded the
motion. The motion carried on a unanimous voice vote.


INFORMATIONAL AGENDA

8. Attorney General.
a. Notification that Peter J. Johnson, with Johnson Law Group 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 in the case of DeLaCruz v. Federal Funded
Agents, et al.

b. Notification that Louis E. Marshall III, Deputy Prosecutor with the Bonner County Prosecutor's
Office, 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 matter of Theodore Patton Mann Real
Property Forfeiture.

c. Notification that Mary V. York and Murray D. Feldman of the firm of Holland & Hart, LLP, have been
appointed pursuant to Idaho Code §67-1409 as Special Deputy Attorneys General for the purpose of
representing the State of Idaho, Idaho Transportation Department in the case of Waterfront Property
Management, LLC, et al. v. State of Idaho, et al.

d. Notification that Mary V. York and Murray D. Feldman of the firm of Holland & Hart, LLP, have been
appointed pursuant to Idaho Code §67-1409 as Special Deputy Attorneys General for the purpose of
representing the State of Idaho, Idaho Transportation Department in the matter of Section 401 Water
Quality Certification of Sand Creek Byway Project, Association of Concerned Sandpoint Businesses
v. Idaho Department of Environmental Quality.

e. 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 matter of Richard L. Heffner.

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 matter of Allen J. Jeppesen.

g. 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 matter of Thomas Reed.

h. 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 matter of Cheryl Williams.

i. Notification that Edwin Litteneker, 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,
Idaho Transportation Department, in any appeal from a hearing officer's decision filed pursuant to Idaho
Code §18-8002A, Automatic License Suspension Program. This appointment is effective through
December 31, 2007.

j. Notification that Michael J. Kane, of the firm of Kane & Tobiason, LLP, has been appointed pursuant to
Idaho Code §67-1409 as Special Deputy Attorney General for the purpose of representing the State of
Idaho, Idaho Transportation Department, in any appeal from a hearing officer's decision filed pursuant
to Idaho Code §18-8002A, Automatic License Suspension Program. This appointment is effective through
December 31, 2007.

k. Notification that Mick Hodges, of Hodges Law Office, PLLC, has been appointed pursuant to Idaho
Code §67-1409 as Special Deputy Attorney General for the purpose of representing the State of Idaho,
Idaho Transportation Department, in any appeal from a hearing officer's decision filed pursuant to Idaho
Code §18-8002A, Automatic License Suspension Program. This appointment is effective through
December 31, 2007.

l. Notification that Robert L. Crowley, Jr. of Robert L. Crowley, Jr., Chtd., has been appointed pursuant to
Idaho Code §67-1409 as Special Deputy Attorney General for the purpose of representing the State of
Idaho, Idaho Transportation Department, in any appeal from a hearing officer's decision filed pursuant
to Idaho Code §18-8002A, Automatic License Suspension Program. This appointment is effective through
December 31, 2007.

m. Notification that Rami Amaro, of Amaro Law Office, has been appointed pursuant to Idaho Code §67-1409
as Special Deputy Attorney General for the purpose of representing the State of Idaho, Idaho Transportation
Department, in any appeal from a hearing officer's decision filed pursuant to Idaho Code §18-8002A,
Automatic License Suspension Program. This appointment is effective through December 31, 2007.


9. State Insurance Fund

    a. Estimate of the State Insurance Fund expenses to be paid by sight drafts for the month of February, 2007.
        Estimated expenditure for workers compensation claim costs, dividends and premium refunds
    $18,000,000.00
      Funds Expended in February, 2007
      Workers Compensation Claim Costs
    8,464,900.71
      Dividend
    00
      Commissions
    00
      Policy Refunds
    671,041.80
      Total
    9,135,942.51
    b. Estimate of the Petroleum Clean Water Trust Fund expenses to be paid by sight draft for the month of
    February, 2007.
        Estimated expenditure for Petroleum Clean Water Trust Fund
    $750,000.00
      Funds Expended in February, 2007:
      Payroll
    66,961.17
      Operations
    218,090.67
      Claim Costs
    106,608.79
      Total
    391,660.63

      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 04/05/2007 01:21:49 PM