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 – Sub-committee Meeting
October 14, 2014 – 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; David Fulkerson, 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: Jackson Gray, Idaho Military Division; Jeff Rylee, Bureau of Homeland Security; Wayne Harris, Bureau of Homeland Security; Rachelle Vance, Department of Health and Welfare; and Deborah Wonch, Office of the State Controller.

CONSENT AGENDA

1. Minutes
Approval of official minutes for the meeting of the Sub-committee to the Board of Examiners on September 9, 2014.

Resolution: Mr. Hurst moved to approve item 1. Mr. Kane 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
    2014-00113
    Diesel Spill
    $2,021.99
    Response to diesel spill caused by sunken barge. (Kootenai County)
    10/14/2014
    2014-00133
    Diesel Spill
    $2,010.46
    Response to a diesel spill in gas station parking lot. (Ada County)
    10/14/2014
    2014-00136
    Explosive Device
    $1,024.74
    Response to a pipe bomb found along river. (Boise County)
    10/14/2014
    TOTAL
    $5,057.19
    Resolution: Mr. Hurst moved to approve item 2 and place it on the consent agenda. Mr. Kane seconded the motion. The motion carried on a unanimous voice vote.



    3. Military Division
    Ratification of military contracts for the following projects:

    a. NGBID-15-C-0004 for State of Idaho Military Division project: Building 578 HVAC Energy Upgrade
    b. NGBID-15-C-0005 for State of Idaho Military Division project: Building 712 Repair Kitchen and Dining Area
    c. NGBID-15-C-0006 for State of Idaho Military Division project: Building 600 HVAC Upgrade
    d. NGBID-15-C-0007 for State of Idaho Military Division project: Building 916 Remodel
    e. NGBID-15-C-0008 for State of Idaho Military Division project: Gowen Field Parking Lots Slurry Coats and Striping
    f. NGBID-15-C-0009 for State of Idaho Military Division project: Gowen Field Perimeter Fence Repair

    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 Health and Welfare
    a. Request that $9,142,100 be reverted to the State General Fund per Senate and House bills.

    b. Request that $156,278,900 be transferred from the General Fund to the Cooperative Welfare Fund #0220 during the 2nd Quarter of Fiscal Year 2015. In addition, that $64,450 be transferred from the Drug Court, Mental Health & Family Court Services Fund #0340 to the Cooperative Welfare Fund #0220 during the 2nd Quarter of Fiscal Year 2015.

    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.



    Discussion on Buck Slip Process

    Mr. Benjamin said they should not completely do away with the buck slip process, especially for time sensitive contracts. There would be a provision on the front of the buck slip that Military would write in the time sensitive nature of why they needed to use the buck slip process. Adding this guideline does not need Board approval. On the Controller’s website in the Board of Examiners area, under “Submission Tips”, it could be changed to “Submission Guidelines”. Under the guidelines, Military will bring their contracts to the board meeting for approval unless there are extenuating circumstances where they need approval more quickly. Military is the only agency to utilize the buck slip process. Currently when they do the buck slip, Military has already put the project out to bid, selected the bidder, and have a contract for approval. In order to shorten that timeline down to allow Military to take these requests to the regular board meeting, they would have the project already drawn up, all the approvals from the Military division signed, and their estimated cost for the project, but it would be before they put it out to bid. If the Board does approve at that point, the Board would be approving the project, and approving it up to the estimated cost of the project. The bidders already know what that threshold is. Mr. Benjamin asked the subcommittee if there was anything in particular they would like to have Military detail when submitting an item to be buck slipped.

    Mr. Hurst said he did not have any concerns with the guidelines draft.

    Mr. Kane said the only justification he would like to see for a buck slip is why the agency is in a hurry.

    Mr. Hurst commented he would like to see a description of what the project entails.

    Mr. Benjamin noted that in this scenario, the board would not have the actual contract, but the project, which would be written up and approved by the Military Division. The Board would be approving the contract up to a certain dollar amount.

    Mr. Gray said currently they utilize the buck slip process because they have 30 days to execute a contract.

    Mr. Benjamin commented that the request would be brought to the board meeting for written approval. The Board members could sign it at the conclusion of the meeting. The other option would be to stamp the approvals. The only stamp the Controller’s Office does not have is one for the Governor.

    Mr. Kane noted that the statute calls for the contract to be reviewed. It might not be good to short circuit the review of the actual contract. Mr. Kane said that it is hard for him to recommend to the Attorney General to sign off on something that has not been seen. Mr. Kane commented that he is not sure what is trying to be fixed. The current system works.

    Mr. Hurst said doing a buck slip circumvents the open meeting law, but then the ratification later covers the statute requirement.

    Mr. Kane said the statute directs written approval. The whole point for the written approval allows for reflection. The buck slip process allows for staff the time to comply with the statutory duty within their discretion and then ratify the contract to comply with the open meeting law.

    Mr. Benjamin said that maybe this should be on our radar for legislative amendment to the statute.

    Mr. Hurst noted that the purpose of the Board of Examiners is not to review contracts; it is to make sure they are valid claims.

    Mr. Benjamin replied that until there is a statutory change, the Board is stuck with using the buck slip process.

    Mr. Kane said they could have a specific threshold amount. He asked what would be an appropriate amount.

    Mr. Gray answered $750,000; 99% of contracts would not come before the Board. Currently, all other processes over $750,000 go through the Division of Public Works.

    Mr. Kane said there needs to be some sort of check. He asked about putting the threshold at $500,000.

    Mr. Gray said with a $500,000 threshold, it would cut 60-70% of contracts to the Board.

    Mr. Hurst noted he liked the $500,000 more than the $750,000 amount.

    Mr. Gray said it would make things much easier.

    Mr. Kane said the process would be to amend the statute.

    Mr. Benjamin said that the subcommittee will hold the guidelines as a draft, and he will do a rough draft for the legislature to amend the statute.



    INFORMATIONAL AGENDA

    5. Office of the State Controller
    Annual moving expense reports by agency during Fiscal Year 2014.


    6. Office of the Attorney General
    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 matters of Tammy Thompson and Teresa Kay Ritchie. These appointments replace appoints previously issued to M. Jay Meyers, who recently passed away.


    7. State Insurance Fund
    a. Estimate of the State Insurance Fund expenses to be paid by sight drafts for the month of
      August, 2014.
          Estimated expenditure for workers compensation claim costs, dividends and premium refunds
      $14,000,000.00
        Funds Expended in August, 2014:
        Workers Compensation Claim Costs
      $10,544,524.08
        Dividends
      0
        Commission
      3,418,129.38
        Policy Refunds
      359,515.97
        Total
      $14,322,169.43
    b. Estimate of the Petroleum Clean Water Trust Fund expenses to be paid by sight drafts for the month of August, 2014.
        Estimated expenditure for Petroleum Clean Water Trust Fund
    $450,000.00
      Funds Expended in August, 2014:
      Payroll
    $42,459.29
      Operations
    9,516.80
      Claim Costs
    10,890.11
      Total
    $62,866.20


    Mr. Kane moved to end the meeting at 2:07 p.m. Mr. Hurst seconded the motion.
    Page last updated on 12/31/2014 03:47:28 PM