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
March 8, 2016 – 1:30 p.m.
Joe R. Williams Building, 5th Floor Conference Room A

    The regular meeting of the Subcommittee to the State Board of Examiners was called to order at 700 West State Street, Boise, Idaho, at 1:30 p.m. pursuant to Idaho Code §67-2002 and by order of the chair.

    The following members were present: Brian Kane, Office of the Attorney General; Jani Revier, Division of Financial Management; Tim Hurst, Office of the Secretary of State; and Brian Benjamin, Office of the State Controller, as assisting secretary to the subcommittee.

    Also present by invitation were: Wayne Harris, Bureau of Homeland Security; David Fulkerson, Division of Financial Management; Lloyd Knight, Department of Agriculture; Jared Stuart, Department of Agriculture; Kelly Nielsen, Department of Agriculture; Valerie Bollinger, Department of Administration/Purchasing; Kristin Perry, Department of Health and Welfare; Stephanie Bonney, Bond counsel for Office of the State Treasurer; Scott Zanzig, Office of the Attorney General; LeAnn Sullivan, Office of the State Treasurer; Keith Reynolds, Department of Administration; Renee Holt, Office of the State Controller; and Debbie Wonch, Office of the State Controller.

    Mr. Benjamin explained that the Department of Administration submitted an agenda item after the deadline for the meeting notice. A motion to include their item on the agenda would need to be accepted. Mr. Kane moved to add the Department of Administration’s item to the agenda. Mr. Hurst seconded the motion. The motion carried on a unanimous voice vote.

CONSENT AGENDA

1. Minutes
Approval of official minutes for the meeting of the Subcommittee to the Board of Examiners on February 9, 2016.

Resolution: Mr. Kane moved to approve item 1. Mr. Hurst seconded the motion. The motion carried on a unanimous voice vote.


    REGULAR AGENDA


    2. Bureau of Homeland Security
    ID#
    Description
    Amount
    Comments
    Date to Board
    2015-00221
    Suspicious Package
    $1,933.06
    Response to a suspicious package at GMO facility
    (TWIN FALLS COUNTY)
    3/3/2016
    2015-00226
    Mercury
    $445.52
    Response to Mercury release on school grounds (ADA COUNTY)
    3/3/2016
    2015-00231
    Mercury
    $7,787.57
    Response to large mercury release in a school
    (KOOTENAI COUNTY)
    3/3/2016
    2015-00233
    Phenol (Carbolic Acid)
    $5,853.90
    Response to release of Phenol (Carbolic Acid) in medical clinic
    (IDAHO COUNTY)
    3/3/2016
    2015-00241
    Explosive Device
    $1,009.23
    Response to an explosive device located in vehicle on roadway
    (BONNER COUNTY)
    3/3/2016
    TOTAL
    $17,029.28
    Discussion: Mr. Benjamin noted that incident #221 was a request from the Boise Fire Department. It was in response to a suspicious package that had been delivered to a GMO facility in Filer. The package contained petri dishes and some literature. They traced the origin of the package, and it had appeared to have been sent to several locations. The contents were not hazardous, but a response team did go out.

    Ms. Revier asked if they know who the sender was of the package.

    Mr. Harris answered that they do know. It was nothing malicious, and is not something they can pursue for cost recovery; it was sent by mistake from a vendor.

    Mr. Benjamin explained that incident #226 was a response to a mercury spill from a broken thermometer at a school in Eagle. They did readings and were able to clean it up.

    Mr. Hurst asked how they dispose of mercury.

    Mr. Harris said that they do not take ownership of the products. They contain it, and a contractor disposes it and charges the fees to the school.

    Mr. Benjamin explained that incident #231 was a response from Kootenai County Fire & Rescue, a mercury spill at a private school in Post Falls. Upon discovering the spill, some teachers attempted to clean it up, and inadvertently caused it to migrate to all the different buildings on campus. By the time the response came, they had a bigger incident than they realized. Some of the students had carried the mercury home on their clothes. Due to its complexity, the EPA was involved in this incident.

    Mr. Harris noted that there were 19 students who broke into a cabinet and took vials of mercury. BHS had to work with partners in Washington, since some of the students lived in Washington. This has been the biggest mercury spill they have encountered in terms of scope and families affected. It was a large health emergency for the health district in that area.

    Ms. Revier asked if they will recover the money from the school or the families.

    Mr. Harris answered that they are working on recovering from the school. There is also a separate recovery going on through the EPA. The school wants to get understanding with the EPA before making payment to us.

    Mr. Benjamin introduced that the next incident #233 was a request from the Lewiston Fire Department and Pullman Fire Department. It was a response to a release of phenol in a medical clinic. The phenol was in a plastic container in a cabinet; the container disintegrated and the phenol spilled all over in the cabinet. When the staff went in the clinic they saw all the plants were dead and there was a strong chemical odor; they thought it smelled like cleaning products. They opened windows and evacuated.

    Ms. Revier asked what the clinic was doing with the phenol.

    Mr. Harris commented that they don’t know how it got in the clinic. It doesn’t have a medical purpose.

    Mr. Benjamin noted that incident #241 was from the Spokane County Sheriff’s Office with the explosives disposal unit. Bonner County Sheriff’s Office had conducted a traffic stop and found a pipe bomb after doing a search of the vehicle. The driver was arrested.

    Resolution: Mr. Hurst moved that item 2 be approved and placed on the consent agenda. Mr. Kane seconded the motion. The motion carried on a unanimous voice vote.



    3. Department of Environmental Quality
    a. Request in accordance with Senate Bill 1163, that $133,000.00 be transferred from the Air Quality Permitting Fund #0186 to the Department of Environmental Quality Fund #0225 during the fourth quarter of Fiscal Year 2016.

    b. Request in accordance with Senate Bill 1163, that $319,600.00 be transferred from the Public Water System Supervision Fund #0191 to the Department of Environmental Quality Fund #0225 during the fourth quarter of Fiscal Year 2016.

    c. Request in accordance with Senate Bill 1163, that $2,583,700.00 be transferred from the General Fund to the Department of Environmental Quality Fund #0225 during the fourth quarter of Fiscal Year 2016.

    d. Request in accordance with Senate Bill 1163, that $297,200.00 be transferred from the Water Pollution Control Fund #0200 to the Department of Environmental Quality Fund #0225 during the fourth quarter of Fiscal Year 2016.

    Discussion: Mr. Hurst asked why these transfers are not covered by an appropriation.

    Mr. Fulkerson answered that they have a bucket fund; it’s how the legislature appropriates the money, similar to the Department of Health and Welfare.

    Ms. Revier stated that the legislature doesn’t want to give them the money all at once; they disburse it quarterly.

    Resolution: Mr. Kane moved to approve item 3 and place it on the consent agenda. Mr. Hurst seconded the motion. The motion carried on a unanimous voice vote.



    4. Department of Agriculture
    Request approval pursuant to Idaho Code §22-2019 for deficiency warrant spending authority for the following items:

    Japanese Beetle Eradication and Surveillance Project: $124,800
    Eradication Treatment: $185,400
    Survey, Detection and Eradication Programs for Pests and Diseases: $35,00

    Total authorization requested for March 1, 2016 through February 28, 2017: $345,200

    Discussion: Mr. Kane asked for an explanation of the 3,000 hours of full time personnel.

    Mr. Stuart said those are folks already on staff. They have four seasonal people, and ten other investigators around the state participating in trapping.

    Mr. Hurst asked how successful the eradication has been so far.

    Mr. Stuart answered in 2013 they caught 3,000 beetles. In 2014, around 1,200 beetles, and in 2015, 365 beetles. In the next couple of years the beetles should be eradicated.

    Resolution: Mr. Kane moved to approve item 4 and place it on the consent agenda. Mr. Hurst seconded the motion. The motion carried on a unanimous voice vote.


    5. Department of Administration, Division of Purchasing
    Request for recognition of assignment of two contracts from Alpha Ten Technologies, Inc. to Fidelis Security Group, Inc.

    Discussion: Ms. Bollinger explained that one contract was issued by the Division of Purchasing; the other was issued by the Department of Health and Welfare. This is a corporate reorganization. Alpha Ten Technologies has existed for 12 years; their original business was security technology. Two years ago they decided to branch out to add security staffing to their business. Now they have decided due to marketing and insurance underwriting, that it makes sense to have them be two separate arms under their parent corporation. They created Fidelis as an arm to be the staffing side. Alpha Ten will still exist, but will only do the technology side. The contracts are set up to where the state pays for the previous month’s services. There is no upfront money, and very little risk.

    Resolution: Mr. Hurst moved to approve item 5 and place it on the consent agenda. Mr. Kane seconded the motion. The motion carried on a unanimous voice vote.


    6. Office of the State Treasurer
    Request pursuant to Idaho Code §63-3201 to issue tax anticipation notes that will not exceed 75% of the anticipated income or revenue from taxes during FY2017.

    Discussion: Ms. Bonney commented that most of the state’s expenditures happen at the first half of the year, a lot of that due to school district payments. We don’t receive a lot of the revenue until the second half of the year. The tax anticipation note gives us the income in the beginning and then it’s paid off by the end of the year. We’re legally allowed to do up to 75% of the anticipated revenues, but in addition, the IRS limits it to 90% of the anticipated deficit. Often the amount is far smaller than the maximum amount we could go; it’s usually around $500,000,000.

    Resolution: Mr. Hurst moved to approve item 6 and place it on the regular agenda with recommended approval. Mr. Kane seconded the motion. The motion carried on a unanimous voice vote.

    7. Department of Administration
    Request approval for the payment of attorney’s fees, costs, and expenses in Syringa Networks, LLC v. Idaho Department of Administration, et al., in the amount of $930,593.17 plus judgement interest at the rate of 5.125% per annum from June 30, 2015 until paid.

    Resolution: Mr. Hurst moved to approve item 7 and place it on the regular agenda with recommended approval. Mr. Kane seconded the motion. The motion carried on a unanimous voice vote.



    INFORMATIONAL AGENDA

    8. Office of the Attorney General
    a. Notification that Paul J. Augustine of the firm of Augustine Law Offices, PLLC, has been appointed pursuant to Idaho Code §67-1409 as a Special Deputy Attorney General for the purpose of representing the State of Idaho, Industrial Special Indemnity Fund, in the matter of Pennie Soltero.

    b. Notification that Steven R. Fuller of the firm of Fuller & Fuller, PLLC, has been appointed pursuant to Idaho Code §67-1409 as a Special Deputy Attorney General for the purpose of representing the State of Idaho, Industrial Special Indemnity Fund, in the matter of Robin Harris.

    c. Notification that Daniel A. Miller of the firm of Ludwig, Shoufler, Miller & Johnson, LLP, has been appointed pursuant to Idaho Code §67-1409 as a Special Deputy Attorney General for the purpose of representing the State of Idaho, Industrial Special Indemnity Fund, in the matter of Michael Parent.

    d. Notification that Bren E. Mollerup of the firm of Benoit, Alexander, Harwood & High, LLP, has been appointed pursuant to Idaho Code §67-1409 as a Special Deputy Attorney General for the purpose of representing the State of Idaho, Industrial Special Indemnity Fund, in the matter of Joel Climer.


    9. State Insurance Fund
    a. Estimate of the State Insurance Fund expenses to be paid by sight drafts for the month of
      January, 2016.
          Estimated expenditure for workers compensation claim costs, dividends and premium refunds
      $14,000,000.00
        Funds Expended in January, 2016:
        Workers Compensation Claim Costs
      $11,100,289.57
        Dividends
      0
        Commission
      3,893,942.03
        Policy Refunds
      221,050.30
        Total
      $15,215,281.90
    b. Estimate of the Petroleum Clean Water Trust Fund expenses to be paid by sight drafts for the month of January, 2016.
        Estimated expenditure for Petroleum Clean Water Trust Fund
    $450,000.00
      Funds Expended in January, 2016:
      Payroll
    $49,307.18
      Operations
    188,009.71
      Claim Costs
    71,166.36
      Total
    $308,483.25

    Mr. Kane moved to adjourn the meeting. Mr. Hurst seconded the motion. The meeting adjourned at 1:55 p.m.
    Page last updated on 04/14/2016 10:48:51 AM