Trapper Room

DeWitt Student Center July 9 & 10, 2002

Northwest College Powell, Wyoming

PRESENT: Senator Grant Larson, Cochairman;

Representative Mike Baker, Cochairman;

Senators: Jim Anderson, Rich Cathcart and Mark Harris.;

Representatives: Bruce Burns, Frank Philp, Wayne Reese, Dick Sadler and Harry Tipton.

Other Legislators in Attendance: Senator Tom Kinnison and Representative Bubba Shivler.

Absent: Senator Bruce Hinchey and Representative Alan Jones.

Legislative Service Office: Dave Nelson, Steve Sommers, Mary Byrnes and Jason Raymond.

Others: See Appendix A.

Agenda: See Appendix B

July 9, 2002 8:30 am

Tour of Powell High School Complex: Commencing at 8:00 a.m., Park County School District # 1 provided the Committee a tour of facilities subject to review. See Attachment C.

Cochairman Baker called the Committee to order at 11:00 a.m.

NOTE: Please reference the transcripts for all motions and verbatim discussion of school capital construction issues referenced herein. The transcripts are on file with the Legislative Service Office under Appendix D attached to this report.

Sheridan County School District #2 Capital Construction Projects:

Mr. Dodds Cromwell, Mr. David Teater and Mr. Gordon Longwell, MGT of America, Inc. discussed their recommended remedy for the district’s facility deficiencies. See Appendix E. MGT reviewed their findings and commented on their proposed solution, which provides for a range between 135 and 150 gross square feet, (GSF) per student for classrooms accommodating 775 students with core facility space designed for 800 students. MGT’s proposed solution replaces the current middle school, removes the current junior high school and provides for the grade configuration desired by the Sheridan County School District #2, (SCSD #2). This remedy is projected to range between $21.7 - $20.2 million.

Senator Kinnison spoke in support of moving ahead on the planning phase of the proposed solution presented by MGT, invited committee members to tour SCSD #2 facilities and offered to provide tours to interested Committee members. SCSD #2 provided additional information on the middle school and junior high school, see Appendix F.

Representative Burns moved the Committee accept MGT’s remedy, allowing for schematic designs to be developed within the range of 135-150 GSF per student and release the pending $280,000 appropriation for SCSD #2. Senator Harris seconded this motion, and the motion was adopted.

Big Horn School District # 1 – Invitation of Facility Tour

Cochairman Baker invited Committee members to attend a tour of the Big Horn County School District #1, (BHCSD #1) schools “in immediate need”. (The tour was conducted by Mr. Kevin Mitchell, Superintendent BHCSD #1, between 5:30 pm – 7:30 pm in Byron, Cowley and Deaver. See Appendix G.)

Park County School District #1 Capital Construction Projects:

Mr. Cromwell discussed the remedy options analyzed by MGT for PCSD#1 Powell high school complex. See Appendix E. The remedy recommended by MGT consists of replacing the classroom/gymnasium building for 540 students within a range of 165 – 180 GSF per student and renovating the natatorium/auditorium building. This remedy considers the classroom/gymnasium building on the current site of the existing gymnasium building.

The Committee discussed options for the natatorium/auditorium at length and the related issue of local “enhancement” to the state standards for an adequate school facility providing the required educational program. The renovation of the natatorium/auditorium is projected to cost between $4.2 - $5 million. The Committee discussed the renovation of the complete Powell high school complex versus building a new classroom/gymnasium and discussed the proportions of the current complex, which could be considered to be above state adequacy standards and thereby considered enhancements.

Mr. David Levens, PCSD #1 Trustee Chairman, and Mr. Harold Shockley, PCSD #1 Superintendent, spoke in support of the MGT recommendation. See Appendix H.

At 4:45 the Cochairman Baker recessed the Committee.

July 10, 2002

Cochairman Larson called the Committee to order at 8:00 am.

The Committee resumed discussions of the Powell high school complex. Cochairman Baker moved to delay the release of schematic planning appropriation monies, ($280,000) until a structural engineering analysis is completed on the Powell classroom building, the findings of which would be shared publicly, and until the PCSD #1 conducts a public hearing during non-working hours which is advertised and transcribed and hearing transcripts are submitted to the Committee. He also moved the Committee convene a meeting to discuss the remedy for the Powell high school complex subsequent to completion of the analysis but prior to releasing planning monies to the district.

Senator Harris moved to amend the Baker motion by including the gymnasium and natatorium/auditorium in the structural engineering analysis. Representative Burns seconded this motion and Cochairman Baker accepted this amendment to his original motion. The motion was adopted as amended.

The Committee directed Mr. Cromwell to arrange for MGT to conduct the structural engineering analysis, to re-cost renovation estimates by each building and to apportion renovation costs by building between state standards and local enhancements. MGT was also requested to provide an opinion on the instructional benefits of building a new classroom building versus renovating the existing classroom building.

(Note: the transcript of verbatim discussion is concluded at this point and the remaining agenda items proceed.)

Remaining Agenda Items:

Wyoming Public Television

Cochairman Larson stated the direction from Management Council was to look at Wyoming public TV in light of the recommendations from the January 2002 Management Audit report and the request of funding for switching from analog to digital signals.

Mr. Rich Gilliland, Executive Director of the Community College Commission opened the discussion by stating the Commission felt there was significant growth potential with public TV particularly in the area of education. He stated the Commission needed to pursue several issues including attempting to increase support of public TV statewide, updating the MOU for Wyoming public TV between the Commission and Central Wyoming College (CWC), and exploring governance options. The Commission will be contracting for a study on the governance options, and will provide a report on those options and the pros and cons associated with each. One of the options would be a statewide advisory board consisting of individuals from a wide range interests. Mr. Gilliland further stated he thought an arrangement that allowed CWC to maintain the license for the station could be compatible with a statewide advisory governing board.

Mr. Dan Schiedel, General Manager of Wyoming Public TV walked the Committee through a presentation (Appendix I) that explained the current public TV system and services and addressed the needs of the future with respect to converting to digital TV. In response to questions from the Committee, Mr. Schiedel stated that the conversion to digital would not be abrupt, that there would be a period of time where both digital and analog signals would be transmitted. Further, he estimated 80% of TV owners in Wyoming are capable of receiving cable TV, thus receiving Wyoming public TV. Senator Cathcart voiced concern over spending a considerable amount of money for an expansion that would only increase capability by 20%. Mr. Schiedel pointed out that Congress has mandated a conversion by 2006, but that he expected that date to be delayed. In further response to questions he stated that switching to a full satellite signal would be cost prohibitive.

Representative Burns voiced concern over the license being with CWC at the same time the state is being asked to expend $10M to fund the conversion. Senator Anderson requested that the agency make efforts to work with local governments, DOT and others who utilize the SALECS system and enlist their support. Representative Reese pointed out the Committee needed to keep in mind that the system has great potential in the educational arena, not just public TV. Cochairman Larson stated that in some areas of the state, Wyoming public TV is the only link to Wyoming news and it is important to maintain that link. He asked that the agency keep the Committee advised on the governance study and the update of the MOU, and to continue to pursue other funding sources. Senator Cathcart asked what would happen if the state did not commit to the funding for the conversion, and Mr. Schiedel responded that if Congress did not rescind the 2006 mandate, the station would basically shut down. Representative Baker expressed support for statewide governance as that would facilitate the ability to plan.

State Employee Benefits

Frank Galeotos, Director of the Department of Administration and Information, Darald Dykeman, Administrator of the Division of Human Resources, and Ralph Hayes, Manager of Employees Group Health Insurance addressed the Committee on the issue of employee benefits. Cochairman Larson stated that Management Council had asked the Committee to take a comprehensive look at benefits, not just health insurance or salaries. Senator Cathcart asked members of the Management Audit Committee if the House amendment of $6.7M for dependent health insurance benefits was a recommendation of the program evaluation done by LSO, and Cochairman Larson indicated that it was not.

Mr. Galeotos and Mr. Hayes started by walking the Committee through a presentation on Employees’ Insurance Benefit Program (Appendix J). This handout provides a basic description of the coverage provided by the plan, some claims statistics and comparison of premiums with other employers, primarily school districts. Mr. Galeotos emphasized the system is not on a death spiral, but costs are escalating. Mr. Hayes stated the increased costs are not due to increased utilization, but rather are due to cost increases for various components of the plan. Representative Burns asked if the same was true for prescription costs, as that is a major driver of the total costs, and Mr. Hayes responded that it was true, drug costs are increasing more than the utilization.

Mr. Galeotos also briefly discussed the employee survey conducted by the Segal Company in February 2002 (Appendix J). The survey presents the attitude of state employees towards various insurance benefit options, with 37% of respondents indicating they would be likely to enroll their unenrolled children in the plan if their cost were $190 per month.

Mr. Galeotos indicated the amounts appropriated last session for increasing the state’s contribution towards health insurance may not be enough to cover the expected cost increases for 2003, and they may have to ask for a supplemental request of $20 to $30 per employee per month in order to cover the single employees insurance. He updated the Committee on market pay, indicating that state employees on average are at 90% of market compared to last year’s rate of 96.8% of market. To bring everyone up to market would require a $13M general fund appropriation. He will provide written information on these issues in time for the supplemental budget request.

Mr. Galeotos and Mr. Dykeman then presented the Committee a draft proposal for a new state of Wyoming total compensation flexible benefits plan. The proposal is based on allowing employees the choice of using a portion of unused sick and annual leave for health insurance, or to cash out the unused leave time on an annual basis. The Committee asked that the executive branch provide some assumptions and cost estimates for the plan for later consideration. Mr. Galeotos responded they would be working on that as well as the insurance dollars and market adjustment estimates.

Chief Information Officer/Information Technology

Mr. Galeotos updated the Committee on the progress of hiring a Chief Information Officer (Appendix K). He stated that due to the recent national downtrend in the technology and communication sectors, they have received a tremendous number of applicants for the CIO position. They have formed a hiring committee and hopefully will have made a selection by the end of July. The direction the executive branch wants to go is to re-structure the governance of the IT division and responsibilities into a more centralized operation. Hopefully this will bring consistency to future budget requests, as well as improve the services the agency provides. Mr. Galeotos will keep the Committee informed on these issues as they develop.

County Emergency Fire Suppression Account

Mr. Ray Weidenhaft, Assistant State Forester, addressed the Committee on the issue of funding for the county emergency fire suppression account. (Appendix L). He stated he has been working with the Rural Fireman’s Association to try to come up with some alternatives for increasing funding to the account. The first thing they are trying to accomplish is a more accurate measure of the acres subject to the per acre fee. This will ensure fairness, but will not greatly increase the revenue into the account. There are 18 participating counties, those not participating are Campbell, Goshen, Lincoln, Sweetwater and Uinta counties. Mr. Weidenhaft stated that in his opinion, if forced to participate, some counties would vigorously object, and if acreage fees or the mill levy were increased greatly, some counties would opt out.

In response to questions from the Committee, Mr. Weidenhaft stated that the State Forester is responsible for covering fires on all state land, that non-participating counties are charged for resources the State Forestry Office uses on fires in those counties, and that FEMA is responsible for all fires on federal lands. Mr. Weidenhaft provided several handouts on revenues and expenditures, and these along with some historical information provided by LSO (Appendix L). These figures indicate unusually high expenditures in 2000 and 2001, and in response to a question from Representative Burns, Mr. Weidenhaft indicated that those were simply very bad years for fires, and some fires were extraordinarily costly due to having to protect housing and other developed areas. He further stated the State Forestry Office is beginning to get involved in prevention and education programs. Mr. Weidenhaft finished his comments by adding that they will continue to seek additional sources of funding at the local level, but that in his opinion, whatever they developed, it would not generate a significant amount of funding.

The Committee briefly discussed the next meeting, which in all likelihood will be in the first part of September, and Cochairman Larson adjourned the meeting at 4:00 p.m.

Respectfully submitted,

__________________________ ______________________________

Senator Grant Larson, Representative Mike Baker, Cochairman Cochairman