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
August 4, 2005


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; Mike Gilmore, Office of the Attorney General; and Patrick Hodges, Office of the State Controller, as assisting secretary to the subcommittee.

Also present by invitation were Dave Kane, Idaho State Police, Kevin Johnson, Idaho State Police; Mary Halverson, Division of Military, Lorrie Pond, Division of Military; Ann Heilman, Division of Human Resources; John McAllister, Department of Commerce and Labor; LeRae Nelson, Military Division, John Elliott; Brandon Woolf, Office of the State Controller, Bryn Field, Office of the State Controller, Dan Goicoechea, 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 July 7, 2005.


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

REGULAR AGENDA

2. Idaho State Police – Lt. Colonel Kevin Johnson, Deputy Director

    Request for authorization by the Board of Examiners to pay the accrued comp time for the following employees involved with the investigation of the Groene murder and kidnapping investigations in the Coeur d’Alene area beginning in May and continuing through early this month.

Captain Clark Rollins ISP Investigations 78 hours

Captain Wayne Longo ISP Patrol 80 hours

Anne Nord ISP Forensics Lab Manager 43 hours

Discussion: Mr. Foltman said this request qualifies as an emergency and is an unusual situation in every aspect and is a good test to sort cases against in the future. Mr. Gilmore said the memo was very informative.

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

3. Idaho Commerce and Labor – John McAllister, CPA, CGFM

    Request authorization by the Board of Examiners to use Penalty and Interest monies under Idaho Code §72-1348(b) for the following:

Up to $1,200,000 for construction of the department’s Idaho Falls local office building.

Audience with the Board: John McAllister said Commerce and Labor worked with the Department of Administration and the Division of Public works for two years to address the office situation in Idaho Falls. He said Penalty and Interest monies have been used since the 1950s for office construction. The building is a 1.9 million dollar building with $700,000 from the permanent building fund approved by the legislature and $1.2 million requested from Penalty and Interest monies. Currently the fund balance is between 750 and 800,000 dollars. Roughly $600,000 a year is collected in Penalty and Interest monies, but increased penalties, non filers, not filers and people who were determined to commit fraud could increase the Penalty and Interest monies to $900,000. The building is in the early stages and at least a year off from construction.


Discussion: Mr. Foltman asked if Penalty and Interest monies was the only fund source going into Commerce and Labor’s capital program for building. Mr. McAllister said they receive some federal funding called a REDACT fund, and that most of their buildings are a combination of REDACT funds and Penalty and Interest monies.

Mr. Foltman asked how much money could be applied to this project that is non-Penalty and Interest monies. Mr. McAllister said currently there is none, but there is $25 million in REDACT that could be appropriated by the legislature. Mr. Foltman expressed concern over funding a building with money that is not available, but expected to be. Mr. McAllister said they have another source of funds, the Special Administration Fund, a reserve fund for unemployment insurance for about $85 million dollars. He said the interest monies on this fund can be used for the department, and in the interim, they would use those funds to finance the building and pay it back. Mr. McAllister said they could wait until the balance was there to move forward. Mr. Gilmore asked when this project has to be approved. Mr. McAllister said it doesn’t need to be approved now, but sometime in the next two years.

Mr. Foltman said from a project standpoint it had passed most of the check points, with the exception of funding a project without sufficient cash balances. Mr. Foltman said he had no problem with the project moving ahead, he only questioned using Penalty and Interest monies for a project that currently does not have a sufficient fund balance. Mr. McAllister said the balance is currently $754,000.


Resolution: Mr. Goodenough moved to allow Commerce and Labor to expend the current balance of the Penalty and Interest Fund with the expectation of returning to the board for approval of the remaining amount. Mr. Foltman seconded the motion. The motion carried on a unanimous voice vote.

4. Bureau of Hazardous Materials, Division of Military, Executive Office Of Governor – Mary Halverson

    Request for authorization to issue deficiency warrants for reimbursement of response costs pursuant to Idaho Code §39-7110.
    ID #
    Description
    Amount
    Comments
    Date to Board
      2005-1306
    Suspected biohazard
    $190.65Suspicious letter that was taken to Boise Fire by a postal inspector – in Boise, on 4/20/058/1/05
      2005-0850
    Drug Lab
    $1,579.66A suspected LSD lab was discovered in Post Falls on 3/16/058/1/05
      2005-0837
    Drug Lab
    $729.11A suspected Meth lab was discovered in Coeur d’Alene on 3/14/058/1/05
      2005-0680
    HazMat
    $1,432.36Cans of water based paint and lacquer thinner were breached & leaking due to a structure fire at a paint storage unit in Sandpoint on 2/28/058/1/05
          2005-0438
    Drug Lab
    $546.32A suspected Meth lab was discovered in Bonners Ferry on 2/8/058/1/05
      2005-0353
    Drug Lab
    $795.67A suspected Meth lab was discovered in Sandpoint on 1/31/058/1/05
      2005-0333
    Spill
    $1,120.34A 1999 Nissan truck slid off Schweitzer Mtn Rd and land in Schweitzer Creek, which emitted 10 gallons of gasoline into the creek. This occurred in Sandpoint on 1/29/058/1/05
          2005-0201
    Spill
    $556.02An overturned semi tractor that resulted in an oil and diesel spill. This occurred near Coeur d’Alene on 1/17/058/1/05
    2005-0173
    Drug Lab
    $1,128.71A suspected Meth lab was discovered in Post Falls on 1/16/058/1/05
    TOTALS
    $4,478.10
Audience with the Board: Mary Halverson removed items 2005-0353 through 2005-0173 from January bringing the total amount to $4,478.10.

Resolution: Mr. Foltman moved to approve item 4 with the exception of four response costs from January. Mr. Goodenough seconded the motion. The motion carried on a unanimous voice vote.

5. Military Division – LeRae Nelson, Controller
a. Request for approval 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 $5,308.80.
b. Request for approval to pay cash of overtime for 23 state administrative and professional employees who are supporting the statewide response and recovery operations of the disasters declared by the governor.
Audience with the Board: LeRae Nelson asked to change FSLA code to pay off special administrative employees in the Bureau of Homeland Security for overtime work accrued during disasters.


Discussion: Mr. Foltman asked if a cash reimbursement is necessary in order to recover from the feds. Ms. Nelson said it is not the only way, but the dollar amount is not given upfront when the amount is approved. Ms. Nelson said FEMA has refused to reimburse them for work other than overtime in the past. Mr. Foltman asked if the Feds refuse to pay if they expect that employees will take the time off. Ms. Nelson said they have difficulty with the accrual notion and they call it overtime because they do not pay accruals.

Mr. Foltman asked if there is a provision through an accounting procedure that makes it easier to pay cash versus an employee taking time off. He said he would be more supportive of an employee taking time off, even if it does mean more justification for record keeping responsibilities. Ms. Nelson said in the event of a disaster, taking time off is not an option.

Ms. Heilman asked what kinds of jobs respond to an emergency? Ms. Nelson said there are emergency management specialists, department directors over response, deputy directors over mitigation, and representative directors. Ms. Nelson said they do not turn on FSLA code because they are administrative, but they will charge overtime incidences to a disaster.

Ms. Heilman said this situation paralleled that of the Department of Lands where bureau chiefs went out on fires and turned into covered employees. She recommended researching further into the parallels to assist in this situation. Ms. Nelson said they were hoping to resolve the issue long term and would welcome the help.

Mr. Gilmore asked if overtime paid now would be reimbursed by the Feds, or if comp time taken in the future is reimbursed. Ms. Nelson said It comp time is taken in the future it is not reimbursed, but they have not received clarification if this is true in all situations. Ms. Nelson said It is a federal law that they will not pay comp time, but they will pay overtime.

Ms. Nelson said people are working overtime because work shifts when people have to go out in the field and other staff make up the difference. Ms. Nelson asked permission to pursue a long-term solution for a more ongoing flexible process.

Mr. Foltman said they do not want to lose recovery of a federal reimbursement and covered and non-covered employees need to be closely examined.

Resolution: Mr. Foltman moved to hold item 5b for one month, pending analysis by the Division of Human Resources and the State Controller’s Office. Mr. Goodenough seconded the motion. Mr. Foltman moved to approve item 5a. Mr. Goodenough seconded the motion. The motions carried by unanimous voice vote.

INFORMATIONAL AGENDA

6. Attorney General
a. Notification that Mary V. York of the firm of Holland & Hart 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 Waterfront Property Management, LLC, et al. v. State of Idaho, et al., Case No. CV-2004-01817, District Court of the First Judicial District of the State of Idaho, in and for the County of Bonner; and North Idaho Community Action Network v. U.S. Dep’t of Transp., et al., Civil No. 05-273-N-EJL, United States District Court, District of Idaho.
b. Notification that Charles Barnhill, Jr. of the firm of Miner, Barnhill & Galland in Madison, Wisconsin, and Robert S. Libman of the firm of Miner, Barnhill & Galland in Chicago, Illinois have been appointed pursuant to Idaho Code §67-1409 as a special deputy attorneys general for the purpose of representing 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.
c. Notification that C. Clayton Gill 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 the State of Idaho in case of Department of Agriculture/Farmers Merchant LLC and Wheatland Agri-Business, Inc.
d. Notification that Ken Salinger, Scott Lewis, and Ruth Dowling with the firm of Palmer & Dodge in Boston, Massachusetts have been appointed pursuant to Idaho Code §67-1409 as a special deputy attorneys general for the purpose of representing the State of Idaho in its capacity as one of the “Settling States” under the Tobacco Litigation master Settlement Agreement of November 23, 1998 (‘MSA”) in connection with the Significant Factor Determination for 2003 mandated by the MSA.

7. State Insurance Fund

    a. Estimate of the State Insurance Fund expenses to be paid by sight drafts for the month of July 2005.
        Estimated expenditure for workers compensation claim costs, dividends and premium refunds
    $20,000,000.00
      Funds Expended in June
      Workers Compensation Claim Costs
    8,805,274.24
      Dividend
    4,534.09
      Commissions
    2,841,780.73
      Policy Refunds
    345,086.70
      Total
    11,996,675.76
    b. Estimate of the Petroleum Clean Water Trust Fund expenses to be paid by sight draft for the month of July 2005.
        Estimated expenditure for Petroleum Clean Water Trust Fund
    $750,000.00
      Funds Expended in June:
         
      Payroll
    63,611.85
      Operations
    7,109.98
      Claim Costs
    50,860.97
      Total
    121,582.80


There being no further business before the board and on motion duly made and seconded, THE MEETING OF THE STATE BOARD OF EXAMINERS WAS ADJOURNED at 9:43 a.m.



__________/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 07/13/2006 01:24:05 PM