Tuesday, December 15, 2015 JAC Index 12-15-15pm1 Agenda: Agency 024 – State parks and Cultural Resources Agency 072 – Wyoming Retirement System 12/15/2015 12:41:29 PM – Began slightly before this time Director Milward Simpson: Introductions and Overview. Public Archeology Events, 125th anniversary state historic conference, Friday July 10th Statehood day in Cheyenne, Special recognitions went to the department. 4 M visitors in 2015, Revenue up 20% over the last 5 years. New historic sites like missile silo and POW camp in Douglas. Statewide coalition to encourage children and families to spend more time outdoors. Harshman: Wyoming tough competition this summer? Simpson: yes. This year will be the 4th year for the race. Wyoming may be a place to hold the world finals. Introductions: Sandlian, Needles, Strom, Lange, Hopkins, Bovee, Pierce, Brammer, Bravo, Westby, Westerfield, 12/15/2015 12:48:40 PM Simpson: page 4 of the budget. Page 8, 9, 10 Burkhart: priority list – Is it in the order of priority? Simpson: No – it is organized as a collection of several agencies, so we ranked the programs within each of those agencies. Order is not an indicator of values. Within the Divisions, the priorities are ranked. Harshman: We the people program is ranked last. Simpson: Example. Burns: The listing of the particular divisions is not a priority but the priorities within the division are ranked. Simpson: the priorities within the units Page 11 – Exception requests ranked in priority order. New funding for approx. 10 M, the remainder is for new spending authority. Administration and support division on page 15 – ER to replace a position funded with other funds with GF. We eliminated a vacant position, the videographer. Military person who left, then returned. The person wanted his job back. I researched laws and spoke with Attorney General’s office. USERA Law intent and purpose. I gave the individual their job back. The only way to do this was reclassify a vacant position which was in the archeological division. We are taking his pay out of available 100 series right now. Burkhart: The Governor denied this request. Any reason given? Simpson: No Burkhart: I do not understand. We are required by law to give the job back. Simpson: It was my interpretation. I was told it was a grey area. Burkhart: Not following the law versus denying the request. Simpson: the law has been followed in terms of hiring the individual back. The problem is paying out of the 100GF series. Harshman: Vacancy report Hibbard: mitigated the situation with other GF, asking for funds to get back to their original positions. Ross: Simpson: We would continue to put pressure on GF. Harshman: funds? Simpson: We are using 100 series GF Harshman: B-11? What number position? Simpson: I can get you the number. Harshman: Fund Simpson: In the budget, the position is classified as an “other funds” position. It happened a year ago and we did not have the vacancies that we have now. Position 70. Unusual situation. Burns: Will you be coming back for a series 900 for video services? Simpson: No, we would not. We would continue to watch the situation and fund as we are. Burns: What is the point of asking our permission? Simpson: The position had been eliminated from our budget, administrative services. We do not have the funds to support this long term Burns: So what is the point of us deciding? The outcome is the same. Simpson: If the legislature approves, we will have the funds to pay for this position. The pressure will be eased. Greear: There is a photographer position that is open. 03740 Simpson: position 374 is in the Wyoming state archives. We are proposing to leave that position vacant. If I put that person in that position, they will be doing a job they may not be qualified for. Connolly: Simpson: Action we are requesting would correct the funding to GF. I believe Harshman is saying to take 374 and reclassify it, then the GF would follow it. Harshman: person is currently occupying a special revenue position Simpson: special funds. Position 70, other funds, state archeological survey, user generated revenue. Greear: Current cost on biennial basis Simpson: page 16 142,000+ per year, salary plus benefits Greear: Same amount as other position Simpson: As close as we could come. Harshman: Time frame? Simpson: Person requested job 2 years ago. I will get back with you. Harshman: working how long? Simpson: over a year Harshman: You did not bring this to us last year? Simpson: No, we brought him on in a seasonal position and change made after budget presentation. Page 17- Request for ETS module. Sean Morris is here from ETS. Harshman: information about introducing self for the record. Morris: Moodle is a learning management system, which replaced a very expensive system. ETS takes care of the health of the system. It is online training. AandI uses it. I think it replaced the blackboard system. Greear: what type of training? Morris: Different training for different agencies. Simpson: I will have to get back to you. 12/15/2015 1:13:01 PM Cultural Resources Division on page 21 of budget. Pg. 23 exception request, priority 9 – 4th biennium requesting state funds for a partnership with Wyoming humanity council, one time requests. This is for ongoing funding. Programs like civility matters. Opportunities for citizens to gather to discuss civic matters. We require a contract and hold 10% of funds until we receive the final report. Handout. Harshman: Opportunity for public comment during budget hearings. Stubson: Funding began when and what amount? Simpson: 09-10 = $250,000 similar amount every year. Last biennium was $340,000. Requesting that same amount. $90,000 to civility matters program. Burkhart: prior to the 09-10 biennium, how was the humanity council funded? Simpson: a Grant through a national endowment for the humanities. Harshman: Grant out? Simpson: comes down to the wire for funding. They receive a grant, which goes up and down. Nicholas: All funding and source from 2008 forward, amount received, grant received, likelihood of it being funded again and what amount. 12/15/2015 1:19:09 PM Simpson: State museum on page 28 for exception request of $50,000. Defer to Sara Needles and Mark Brammer. Needles: We received one time funding last year. Now we are asking for ongoing funding. Maintain artifacts and artwork, including outdoor artwork that needs regular maintenance. Conservation work. Brammer: Example from last week: Capital Renovation, two murals, taking them off. They went up in 1918. Used horsehair to insulate and it is covered in arsenic. Should not be in the chambers. Ross: What do you do now? Brammer: We will test it then pay someone from the Western conservation Center in Denver. Arsenic was used commonly to preserve pieces in 1918. Burkhart: How did you know it was arsenic? Brammer: Simpson: Obligated to make sure artifacts are preserved. Outdoor sculpture. State museum: spending authority request. Increase the authority to decrease the number of B-11 we have to process for the museum store. Harshman: 70,000 spending authority. How long has this been going on? Needles: longer than 10 years Simpson: into an enterprise account to help the state museum. Harshman: Expenditures. How many accounts? What it is being used for. Simpson: yes one Greear: Does it generate special revenue or is that account building? Simpson: Sales go into the E14 account. Greear: That is the fund you are looking for more spending authority. Are you generating a profit? Simpson: Museum store, surplus revenue is available for us to use to support the museum. State archeology unit – No ER. Burns: What is the state archeologist and what does he do? Pierce: state archeologist. We are required by statute to investigate, preserve archeology. Split into two groups, education and archeology preservation. High office turnover. Redefining mission. Archeology fair in Laramie. Burns: Do you do school programs in the northern part of the state? Pierce: That is what we are working on – a broad education program based on our new website. Burkhart: your research is on what type of land, private, state or federal. Pierce: All types of land, primarily on federal last year. Harshman: narrative on page 34. One of two federally recognized repository Pierce: it is now the only one, in partnership with UW. 12/15/2015 1:32:16 PM Simpson: page 35 – go back into unit we reclassified and ask that the funds be transferred, mirror request. Individual began work again in May of 2015. Wyoming cultural trust fund on page 40 – Rene Bovee Nicholas: page 37 – Governor approval but it was denied? Line 6 Simpson: In my copy it is denied on page 36 Nicholas on page 37 Simpson: page 37 – Hibbard: The agency takes it out in Column 4, The governor denies it and it goes back in in Column 6. Greear: State travel, 175,000. Is it utilized or reverted? Simpson: The office travels to field sites to do the archeological survey. Needles: That number is not GF. The contracting portion puts out bids for jobs. They operate on that revenue. That is spending authority - the $175,000. Clients are charged for the travel. Burns: Travel, food, hotel Simpson: correct Perkins: Fees for contractors for travel Needles: State employees who bid on jobs, through WY Dot for cultural resources, park service or national guard. Money from contract is reimbursed to us. Perkins: What state employees? Needles: Employees that work for archeology survey. 3 employees on GF,….. Burns: If there is a job being done, the archeological dept. bids on it. Needles: Correct. WY Dot gets federal money for those projects and they could contract with any entity. It is an open bid process. Burns: You now have the only federally recognized repository. What did they do to lose their accreditation? Needles: I can find out. Greear; Do you work and bill or is it a contract? Pierce: Bill for hours. Greear: This goes into another fund, which holds these and pays it out over time. Pierce: goes back into the GF reimbursement Sandlian: This is an account in the GF budget, which is supported by the revenues that they bill out for their projects. They cannot spend more than the revenues they bring in. The budget is the best guess for over the next biennium. Expenditures for this unit are to be out of this fund. Greear: When the billing goes out, the revenue goes into the GF, segregated and pays for the expenses. Perkins: Can the employees bid on any archeological project? Pierce: yes, we have not done a lot of industry work. Perkins: there are private archeological providers around the state so are state employees in competition with the private sector? Pierce: There could be. We tend to work with federal and state agencies Needles: our statutory mandate is to survey the state of Wyoming. This was part of the mechanism set up to do that. Burkhart: Perkins question. DOT can go out for bids from any firm. Does doing this put you into competition with those private companies and do you have an unfair advantage. Pierce: WY Dot uses us and private companies, like CRC. We do fill a roll that could be filled by others but they tend to focus their work in other areas. For federal agencies, it requires an association with UW so would not be in competition Greear: Open positions? Harshman: 3 in administration, 15 total, how many open Simpson: x , 2 vacant that are capped. Harshman: Are they funded? Simpson: Funded through services billed for. Greear: What are cap positions? Simpson: mandated through the budget reduction time frame. A cap was created. Any positions above it were not allowed to be filled. We understand that cap is still in place. Harshman: you have two open positions Simpson: 1 FTE and 1 part time Harshman: Senior archeologist position open for 48 months and pulled back, 3 archeologist positions Needles: Vacant positions open for a long time due to decline in work. Through attrition, we have not been filling them. Burkhart: 47 months, eliminate it? Simpson: one that is in the cap. I do not have access to that position without permission. 12/15/2015 1:48:03 PM Break for 5 to 10 minutes Cultural trust fund on page 40 is next. 12/15/2015 2:03:29 PM Meeting begins Simpson: Cultural Trust Fund on page 40. Agency has requested grants in the past. New Board member created. Travel and expense appropriated. Requesting ongoing funds for travel for board meetings, site visits. There are printing costs, etc. Harshman: page 41 objects 1-6. How does that stack up to what you have done? Bovee: printing costs are a substantial increase. We hoped to be paperless. Not all constituents are comfortable with that. Greear: part on increase due to board member, 2 year funding. Line item is travel instate. Bovee: 4378 is increase in the line to accommodate the new board member Harshman: How many board members? Bovee: Six. Needles budget covers her travel alone. The other 5 board members are covered by this line Needles: By statute division administrator is ex-officio member. Harshman: Supplies and printing increase. Burns: Corpus of cultural trust fund Bovee: a little over 15 M. Interest earnings are 350-400 thousand per year Burns: That is what you give out in grants for applications from around the state. Board travels to evaluate these? Bovee: correct. It is a competitive process. 12/15/2015 2:10:21 PM Simpson: State historic preservation office. No exception requests. Harshman: Cultural trust fund has an amendment. Simpson: We have always had more applications than funds. Burns: How closely does SHPO work with the archeologist? Hopkins: Very closely. Posters. Harshman: Fully GF Simpson: Part of funding is from annual historic preservation grant. 60% federal and 40% GF Stubson: of the 40% how much is filing fees, etc? Hopkins: File search fees is around 207,000. Greear: What is special revenue? Simpson: page 46 unit 522, file search fees. Harshman: page 46 chart, add in other special revenue. It is closer to 55%/45%. 12/15/2015 2:14:27 PM Simpson: Wyoming arts council on page 47. Page 48 Exception request, Michael Lange Director. Operating support grant. Agency has been asking for funds in one time form. Now asking for ongoing. Page 48 2nd request, one time funding in the past to respond to constituents asking for convening artists and art organizations on a semi regular basis. This is an ongoing request. Harshman: Recent conferences held where Lange: Most recent in Jackson. Have held them in Casper, Cody and Laramie Burns: Where is the next one? Lange: Due to be in the center of the state, talking to Lander. 12/15/2015 2:17:19 PM Simpson: Archives on page 52 – Michael Strom, Major exception request is on page 56. Agency’s #1 priority. Archives moving into digital records management. Most records are born digitally. Receiving funding to move into digital records management. Concern was that the different agencies would have gone into it on their own, could have had mismatched communication. 11-12 biennium had a TRW bill for a study. Rollout in phases. Phase 2 in 13-14 for 1+M. phase 3.. Pilot phase is completed. Rolling out in an enterprise method. Burns: Digital storage – obsolete and impossible to access Strom: We are leaning on ETS for the server and backup. Vendor support for the software which will be continually updated. Agencies are not keeping information on removable storage. Simpson: This is where the field is moving. Mixture of one time and ongoing funds. Strom: page 57 – 0224 object code is one time funding for new software licenses to expand program. We have 125 license, use 68. Unit 0292 license maintenance keeps software current and up to date. Budget for software update every two years Nicholas: Licenses – all will be obsolete someday. What is the plan and cost projections? Strom: We would not purchase more license until we need them. They are specific to this software. Harshman: sole source or multiple vendors? Strom: HP Records manager is used by other states. Vendor works with other states. Burkhart: page 56 – user license, knowledge worker licenses. Why the 100 licenses? Who will use them? Strom- The 100 is for expansion. We will not buy them until we use them. HP has introduced tier licensing. User is the lower end. New user licenses will be for workers who put in the records. 125 casual contributor licenses are for users to search the records only. Burkhart: How many licenses do you need right now? Strom- We do not need any right now. 13 agencies, 68 users right now. This gives us the ability to grow the program through the next biennium. Agencies are using this in different ways, with different numbers of license. Everyone will come to the state archive for licenses. It will come through our budget. Moniz: ETS recommendation. Simpson: Numerical system for business cases approved. Moore: I am not sure. I do know this was approved. Hibbard: It is the business case number used by ETS. Greear: I like this program. I heard this will be an enterprise so will we be billing out to the other agencies. If so, why is it an ongoing fund? Hibbard: Statewide cost allocation plan. Budget division plan is online. Hard copies brought into archive are billed out to the agency who brought it in. In future, by square footage. Generally funded first, then billable Harshman: Income reverts Hibbard: Unused income reverts. Greear: Does it need to be categorized ongoing? Simpson: Maintenance costs for software and licensing are ongoing. Greear: if costs are being billed then do not need to be in the general budget Hibbard: parks needs the first part spending authority. Profiled on the CREG, 27 M now, hunting for more. Needles: What is billed for services will be server space, not maintenance. Greear: Why not? Hibbard: We are going to clear the entire amount through the statewide allocation. 12/15/2015 2:33:17 PM Simpson: unit 510 – Virtual environment for servers and storage Harshman: Conversation for cloud versus servers. Simpson: Original copies are at greenhouse data in servers. Backup copies are in the cloud. Moore: With this system, the environment is a virtual environment, located inside greenhouse data within the state. Consolidation. Agencies sharing one server with special software that allows us to partition the space out. Microsoft reserve system for cloud, servers in their data centers to take snapshots. System called store simple, 30 shots per day. 52 weekly, 3 yearly shots. Harshman: 4 – professional services Simpson: vendor costs to update the software and maintain the software, help desk for users, technical support for HP records manager. Harshman: unit 2409 12/15/2015 2:37:09 PM Simpson: to cap off, agencies that have piloted this are extraordinarily satisfied with this, SOS was the first. Other division – historic sites and parks and trails – Dominic Bravo Std. budget Greear: Did we get the weeds by Boysen sprayed this year? Bravo: Yes Simpson: Wyoming state trails has an ER. Similar to other spending authority requests. Administered by federal highway administration. Spending authority to match revenues to limit the B-11’s. Stubson: new transportation bill change the flow of funds? Bravo: RTP funding Burkhart: page 65 – estimate for the 15-16 biennium for snow vehicle registration? In 13-14 the fees were raised at the request of users. Decline shown. Major recline in registration Simpson: revenues only through partial biennium, not through June Burkhart: most snowmobiles already registered. Harshman: when was this put together? Simpson: last august. Greear: one year? Simpson: page 71, purchase major equipment on-going basis, $1.5M Bravo: Buy back program, contract with vendor to purchase upfront, vendor buy back in 3 years, will cover major maintenance during 3 year period, with basic maintenance to be performed by agency. Ross: sell back more than original purchase? Hibbard: It does work because equipment companies want to move floor models and flood plan financing. Connolly: Why denied by governor? Hibbard: last round of denials. Phased in approach possible with fewer vehicles with a vendor. Simpson: Savings realized from O&M from buy back program would go back into the buy back program. Would hope items related to O&M would be reduced in future bienniums. Greear: page 67, trails program. Bravo: spending authority, special revenue funds. Some trails groomed under contract, some by staff. Simpson: page 72, priority 4. On-going funding for utilizing Wyoming Conservation Corps for amount received historically. $50,000 annually approved by Governor, which was half requested. Wasserburger: Where crews coming from? Bravo: Student population from UW. Burns: Very successful, WY Conservation Corps Hibbard: Scarcity of general funds Greear: how many students for how long? Bravo: Various groups, 10 days, 5 10-student crews, various projects Stubson: page 76, employee count Bravo: one moved to Curt Gowdy State Park, other position in hiring freeze status; general fund positions Simpson: Enterprise, page 73, spending authority, bison herd, $10,000. Hot Springs and Bear River State Parks. Simpson: page 78, spending authority, fee revenue due to increased visitation. May spend up to 25% of $1.1M for O&M. Nicholas: taking portion into large equipment purchase fund? Simpson: Just standard maintenance. Burns: Remainder goes where? Simpson: standard operating budget in maintenance Burns: Yurts? Simpson: Very popular Bravo: Next places might be Boysen State Park. Quebec #1 Missile Site, binding agreement signed with Air Force to refurbish to 2005 condition. LX Bar Ranch – road license almost done, negotiating for land transfer. 12/15/2015 3:20:30 PM 072 Wyoming Retirement System Ruth Ryerson, Laura Ladd, David Swindell, Polly Scott, Ben Brand Ryerson: WRS governed by 11 member board of directors. 6 year staggered terms for board, half at large, half represent various employee groups. 8 plans. 9 basis points on assets, which are costs to administer funds. Retiree population growing 5% annually. 2% active growth annually. Deferred comp program growing, auto enrollment. 79% public employee plan funded, should be fully funded in 26 years. Ryerson: page 13, priorities No general fund requests. Page 16, revenue, investment income, other income Ross: 2015? Ryerson: do not anticipate hitting actuarial target. Ladd: Up about 1%. Ryerson: exception request. Swindell: exception request $420,000 for RAIN system. More user friendly, data entry needs improvement, security improvement. $123,000 for imaging software. Software license, hardware and maintenance agreements, second exception request. $27,000, $113,000 to replace switches, scanners, computers. Ryerson: Page 21, priority 3. Need 2 administrative people, both permanent full-time. Have one already, but second is permanent temporary. Nicholas: growth chart of employees, functions, wages, since 2005. Ryerson: contracts will go up due to health insurance piece. Ryerson: balance of retirement fund is $7.3B Exception Request 4 and 6, providing for 5 year experience study. $60,000 for study. Page 24, actuarial audit. $80,000 Burkhart: One-time? Ryerson: Correct, only once every 5 years. Ladd: Request 5. Page 10, 2014 strategic planning. Retaining key staff and leadership. Salary adjustment for executive director, $38,000, including benefits for biennium. Nicholas: Recent pay adjustment for this position? Ladd: $25,000 adjustment last time. Perkins: Benchmark for performance? Ladd: Outstanding performance in a matrix, 18 months ago salary adjustment. Perkins: Objective criteria used? Ladd: Outreach and relationship building, administration of system and development of agency, investment decisions outcome, received 3rd party recognition, goals and accomplishments toward strategic planning. $265,000 is capped salary. IRS requirement. Wasserburger: Current salary? Ladd: $225,000 plus benefits. Connolly: More salary requests for others in agency? Ladd: Yes. Priority 1, Investment Organization. Page 32. Build and sustain successful organization, including retention of people. 5 year plan for Sam Masoudi, Chief Investment Officer. Junior intern program to build depth. Want to be competitive. Page 33, salaries factored into basis points to retirement fund administration. 4 investment professionals. Page 34, priority 2 and 3, always have 2 intern business analysts, permanent AWEC positions. Connolly: Please provide org chart Ladd: Add junior and senior people in 2018 in investment team. Ladd: page 34, priority 3, continued UW intern program. Priority 4, page 36. Build private equity team. Team of 6: 2 senior, investment associates, CIO, 2 interns. Want to be an 8 member team. Harshman: page 38. $981,000 annual. Plus add $320,000. About $3M biennium. Ryerson: page 45, spending authority. 30 basis points to cover administrative costs. 3 educators, paid by record keeper (12 points), educator and administrative costs. Perkins: Offset occurs where? Ryerson: $176,000, salary and benefits for full time employee, currently a contract person. Ladd: Coordination between Retirement and Treasurer’s Office, some Harshman: 3% option of deferred comp Ryerson: rate of return, experience study. Investment consultant not optimistic to hit 7.75% rate of return. Would asset allocation be different if rate of return was higher? 12/15/2015 5:23:53 PM