Agency Hearings Monday, January 11, 2016 JAC Index 011116pm1 Continued from am 1/11/2016 1:32:21 PM Chairman Ross calls the meeting back to order Department 220 Environmental Quality Council 1/11/2016 1:33:01 PM Jim Rudy, Executive Director. Introduces Dave Bagley, Chairman of the Council Budget explanation. Greear: Explanation of the work load Rudy: Significant decrease in the case load. Rule- making slight increase. Contested cases have decreased. Very few NOB orders, which generated the other document. Administrative orders on consent have kept us busy. Perkins: Future? Rudy: Have gone from weekly meetings on coal bed methane to basically zero. Transferred to oil and gas commission dealing with abandoned wells. Future depends on DEQ. Perhaps they are issuing permits that are less contestably. Council case load is likely to remain low, if they continue to do that. If I had a crystal ball, I would have asked for less money. I have managed decrease work load by not filling a vacant slot. Perkins: council members’ terms expiring? Rudy: Dr. Bagley’s position and Megan Dagenfelder. Perkins: Are positions available for reappointment? Rudy: Yes and both have expressed interest. 1/11/2016 1:39:40 PM Miner’s Hospital Board Mary Ellen Young, Executive Director. Our budget is the same as submitted for 15-16, no changes. Brief description of the Miner’s Board. The money used by the Board comes from the permanent Land trust. Originally 30,000 acres of land set aside for the health and welfare of miners, by the Governor. Survey resulted in our statute. In 2001 the board was formed. I have been involved since the inception, except for one year. I was a miner for 32 years. I became the director. We have tightened the reigns on who is eligible and what is eligible for payment Harshman: Account balances? Young: Around 97M total. I do not have the corpus statement. We can spend 5% of the total of the two but it only comes out of the income account. Harshman: Trend line? Young: Numbers of eligible miners continues to grow. Changes in health care acts, health savings acct. Three allowed are worker’s comp, an insurance paying for a specific ailment, or a policy like Affleck plan. IRS law requires miners to drop our benefits if they are covered by company HSA. Miners may reinstate themselves if they are no longer covered by an HSA and are a Wyoming resident. Connolly: Definition of miner? Young: All miners currently, which was in the original statute. Connolly: No miner is excluded? Young: True as long as they are a Wyoming resident and work on the mine site for a consecutive 12 month period. Vendors are included. Connolly: How does the payout from the fund works. Do you revert back to corpus? Have total claims been more than the 5%? Young: We have not spent more than has been budgeted. If we reach that, we must shut program down. In March 2011, had to do two B-11 for more money. We shut down the hearing aid program for two months at that time. This biennium, we expect a 2 million dollar reserve. Maximum per year per miner is $5000. Connolly: What will happen to the 2 million not spent? Young: it will go back into the land fund, sorry the income fund Agar: Total of 95 Million represents the balance in both funds. 5% is of the total but the amount spent comes out of the income fund. Young: X M in income fund, I believe. Perkins: Who determines the percentage? Young: We were advised that we budget what we expect our expenses to be. Perkins: Claims anticipated. As long as it is within 5%, you are good to go. Young: correct Hastert: Website. Reduction in claims, hearing aid specialist Young: Max benefit of $2000 for preferred provider. Non preferred provider amount reduced to $1000. Control over what miner is paying and what services they are receiving. Hastert: I am drafting a bill about the statutory limitation on number of employees. Bill to allow for 1 ˝ so to speak, work load. Young: Our statute says 1 FTE director, 1 full time administrative asst. Board allows the administrative position to be broken into two locations. Because of the HSA, our work load may increase as Miners have to apply every year. Working with company for miner to re-up only at first claim. Perkins: 900 Series, medical assistant fees are about 12%. Is that comparable? Young: I do not think we are getting a bargain. Last time we went out for a bid, they were the only person who responded. This is a reduction to 315,000. We took over registrations and updates to registrations in our office. 1/11/2016 1:58:18 PM Water Development Commission. Agency 029 1/11/2016 1:59:03 PM Harry LaBonde, Andrea Odell, Jodee Pring, Barry Lawrence, Bryan Clerkin who is project manager of Gillette Madison Project LaBonde: Projects come through a separate project. Page 4 Statutory authority. Page 5 – New projects, new infrastructure. We have 3 water accounts that provide the majority of the funding within the agency. New Development, Rehabilitation, Dams and Reservoirs, River Basin Planning, Small Water Project Program, Groundwater Exploration Program, Water Investment Management. Contracts with BLM for storage reservoir. Connolly: Accts 1, 2, 3. What about 4 through 7 LaBonde. RBP acct 1; SWPP out of acct 1 if new or acct 2 if rehabilitating, GE account 1, WIM = initial appropriation of dollars from acct 1, then dollars, interest earned and sale of water goes back into those accounts with hope they will be self- sustaining. Page 6: Prioritization. Each funded by their own account. Priorities listed in numerical order but I consider them equal. Agency has role with regards of rights of instream flow. Explanation of programs. Agency prioritized programs. Greear: Rehabilitation around the state? LaBonde: Full evaluation. Recommendation that legislature gives different priorities or funding amounts within the accounts. We had more applications than dollar amounts in account 1 or 2. Commission looked at the biennium projections. Recommendation to spend about half in each account. 35M in account 1. Account 2 has 11M available, recommended about 5.5. Commission has discussed adjusting amounts between funds. Opinion that it is a legislative function. Discussion that funding should be left alone. Management council will take up topic. Perkins: Water account 3 – projects, likelihood of tapping the account in the coming biennium LaBonde: 15 reservoir projects in various levels of the planning phase. Several may encounter a fatal flaw. 10 viable projects with current, nebulous price tag of $500,000+. Account has 160 M less 10 M Governor has taken to be used for fiscal year 15 shortfall. I view that as an IOU or a loan. Large deficit in that account in the future. Conversations with budget office for more defined cash flow schedule to start conversation about funding those projects. 5 projects advanced, will be first 5 brought forward. NEPA process is biggest impediment to the completion of projects. Moniz: How far out are the 5 projects from construction phase? LaBonde: 3 of them in the next 2 to 3 years, then 1 in 3 to 4 years, Battle creek project, a year behind those. All 5 should be ready to go to construction in the next 5 years. Moniz: Total dollar amount? LaBonde: 200 M dollars. The account has enough funds to build the 4 lower value projects. The 5th project has an 80 M price tag. If is showed up first, then build 3 projects. Burns: Are all projects in the Colorado River Basin? LaBonde: 3 of the 5 are in the Colorado River Basin. Alkali Creek and Levitt are not. Harshman: 3 in three years are all Colorado River Basin, under 150 M? LaBonde: First batch to move forward, 2 would not be, one would. Harshman: 150 M or less? LaBonde: Yes. Potentially 3 or 4, cannot build all 5 with the funds available. Wasserburger: If you had the 10M back that the Governor took, could you build the 5 projects? LaBonde: No. 5th project, in Colorado River basin. has 80 M price tag. Land acquisitions and environmental issues. Other projects will be brought forward earlier and will expend the 150 M Stubson: Priority – evaluating costs against number of customers using storage? Cost benefit? LaBonde: We do an economic benefits analysis. 1st is purpose and need. Late season irrigation water. From Ag angle, may not be an equal benefit, late season irrigation, when looking at crops. I am not going to tell you the cost benefit ratio will be less than 1. Water planning is 30 – 40 years out. We have 100 yr. old structures. The 30-40 year look-out will not capture the benefit beyond that time frame. Burns: water storage and state money. Hydroelectric benefits and is there federal money? LaBonde: There is a hydro power potential which is not actively incorporated. I am not aware of federal programs funding hydropower. Burns: Alternative energy sources, non-fossil fuels. LaBonde: Not familiar with those programs 1/11/2016 2:27:40 PM LaBonde: page 7, 8, 9 – No enterprise funds. Page 10 8.5M budget request summary. Page 11 – Series 900 services. Detailed descriptions on page 12. Include inflow hydro studies. We have dollars there for water related research. Unit housed in UW. Page 13 paragraph a shows benefits of WRDS. Website, state water library in hard copy and electronic, reports, state’s climate office, data available to public. Development of atlas. Request for funding, commission wants to know what other studies have been done in that area, can’t tell from the name of the study. Atlas is a GIS product. ER 1 is twofold: Employees of WRDS center are UW employees but funding comes from water development. Granted raises in current biennium. Money requested to keep raises intact. Web Atlas tool has more potential. Pg 14 $152,774 total amount, governor approval. Elimination of accounting clerk position. 102,887 credit. Greear: 1st request enhancement will be brought into std. budget or it is a one- time request? LaBonde: a one- time request. To continue beyond BFY17-18 we will request again. Greear: Salary increase is ongoing Greear: Correct. Moniz: What percentage of work flow of those employees relates to dept. versus UW? LaBonde: one half to three quarters for my agency. One half to a quarter is not viewed as a benefit to the University. It is water data collection outside of agency and university. Acquisition of climate data. Harshman: How did you give increases in BFY 15-16? LaBonde: It was absorbed. Contract with UW for this center, transfer dollars to UW. UW saved money from that and absorbed the cost. Salaries come from transfer of water development monies. Harshman: How are the salaries paid? LaBonde: water development Harshman: use same source? LaBonde: That is what is proposed. Water development account number 1 1/11/2016 2:39:47 PM Burkhart: Whose employees are these? LaBonde: Employees of UW but all salary costs come from the Water Development Commission Burkhart: University granted raises and now you have to pay it? LaBonde: Engineering dept. head asked my opinion. I approved them but the 15-16 cost came from UW. Hibbard: When section 320 allocated the increases to state employees, they allocated to UW and to community colleges. Contract employees fell through the cracks. This is clean up for oversight from section 320. Moniz: Where do they show up in the budget? LaBonde: page 12 within professional consulting, salaries, office expenses, travel. UW provides space and IT services. Equipment, subscriptions, travel, line item for outside consulting services which is for atlas. Contract for WRDS to run their operations. Moniz: 52774 increase for wages included in the XXX. LaBonde: No Moniz: Why isn’t it part of your standard budget? LaBonde: Salary increase not included in 15-16 budget. This is a change so theirs needs to change. 100,000 for Atlas. Burns: Standard budget. How many offices does commission have? LaBonde: Two, main office in Cheyenne has 24 employees. One employee in Rawlins for High Savory Reservoir operates out of their home. Burns: Space rental for the biennium $27000 per month. What kind of space is this? LaBonde: Decision made in 2000 when agency moved out of the Herschler building. Vandehi and Yellowstone intersection. 25% of the space is taken up by the conference room. Burns: Square feet? LaBonde: will provide that information. Lease negotiated by AandI. We have little to do with negotiating. Ross: Cost per square foot? LaBonde: will provide it Burns: I am in the rental business. Would like to rent to that state. Ross: good to get out of leasing. 1/11/2016 2:48:40 PM Nicholas: would like breakdown of funds, sources, burn rates and projects for the last 10 years. LaBonde: will provide Ross: Burn rate is what we appropriate Burns: Are there other employees stashed in another agency or vice versa. LaBonde: The 26 positions do not include the 5 WRDS employees. Burns: Any other employees being paid by the water funds, besides your 26 and the 5 UW? LaBonde: 3 other diversions of funds, one to Engineers office (no funding of employees), one to Dept. of AG (I do not know if that funds employees), state loan and investment board (I believe at least one or two employees are paid in administration of that program) 1/11/2016 2:52:23 PM Break. 1/11/2016 3:18:51 PM 037 State Engineer’s Office Pat Tyrrell, State Engineer Cricket Hoskins, CFO Phil Stuckert, Deputy Rick Deuell, Assistant State Engineer Tyrell summarized presentation. Mostly regulatory, permit, adjudicate and regulate beneficial use of water, management of interstate water resources. CBM has disappeared from ground water permit process. Backlog of applications received dramatically reduced. Division programs explained, accomplishments, backlogs of applications, adjudications, stream gaging, Burns: What do commissioners do in the winter? Tyrell: Reports and repair of equipment. Burns: Why no gages in northeast part of state? Tyrell: The page only indicates SEO gages, not any federal or private ones. Agency budget reductions: $250,000 FY15-16 and $262,978 FY17-18. One staff reduction. Ross: Laramie County Control Area? Tyrrell: get meters installed, wells adjudicated Department priorities 2. Attendance at meetings 201, 301 and 401 all should be priority 1 501 priority 2 1401, priority 1 601 and 1501, priority 3 Page 13, $533,254 exception requests 1. Page 39, technical equipment for stream gaging support 2. Page 62, technical support in Montana v Wyoming Perkins: what determines a valid call? Tyrell: Generally on main stem diversions. Reservoir call is generally an early season one. 4 Replace old ATV 5 Field offices, broadband connection. Some are recommended to be funded thru LSRA. 8. Endangered fish recovery dues, cola increase. Burns: why is ATV replacement not a standard budget item? Tyrell: too small budget item. Greear: increase in out-of-state travel in various divisions Tyrell: Shift just between divisions depending upon demand. Perkins: board of registration professional engineers, payroll increase for board members and increase in board members. Greear: Priority 7, page 51, $32,410 Tyrell: upgrades to registration software to better interface with WOLFS system. Connolly: page 31, object code 0233 and 0223. Tyrell: will get back. Moniz: ATV, how many and replacement schedule? 1/11/2016 4:20:03 PM Hearing ended.