Wednesday, December 16, 2015 JAC Index 121515am1 ER in this document is exception request Agenda: AM: 041 Fire Protection and Electrical Safety 270 Office of Administrative hearings 060 Office of State Lands and Investments PM: 031 Collection Agency Board 021 Department of Audit 011 Department of Revenue 12/16/2015 8:05:59 AM Chairman Ross called the meeting to order Richards: Roll Call Applegate: State Fire Marshall – Introductions of Morris, Young, Vosters. Page14 Ross: Start with your priorities on page 6 Applegate: #1 continues to be our business case which is our database. We have signed contract with a new vendor. Our goal is to get as much online as we can. Priority #2 is computer hardware. Ross: I want an overview. We will go through the departments page by page Applegate: Computer hardware is in 3 locations. Replacement of hardware, hardware to tie into the unified network, Priority 5 is software program update – statutory requirement for reporting, $40,000. The system is totally down. Nothing is getting entered at this time. Ross: 1st exception request (ER) on page 10 Harshman: Big growth in the 400 series from the base to the standard. $111,000 to 288,000. What is going on there? Applegate: ETS provides that number. I do not know why that growth is there. Nicholas: Did they provide anything in writing? Applegate: This is in addition. Original budget was around 17 or 18,000. Nicholas: Opposed to striking it? Applegate: No – but I don’t know what it is for Applegate: The 100 and 400 series are provided to us by the budget division and ETS. Moniz: Kevin? Hibbard: I believe this is the 420, telecommunications cost. It could be data lines or telephone lines. This review is done each year. ETS sits down with each agency and reviews their needs. Greear: New software. $111,000 to shift to new technologies or billable service from ETS. Did you not have the internet prior to this? Applegate: $363,000 is for the licensing and user fees. We currently pay that to ETS on a biennium basis. 10-12,000 users. Ross: Kevin, is that an ongoing cost when it gets into the standard budget? Hibbard: Close to delivery of the actual system. This would be the maintenance cost for the software company, so it would be in perpetuity. Applegate: Hibbard: Explanation of fees charged. DOT charges fees for federal projects. Burkhart: Business case will come out of the 088 fund, in totality? Applegate: 088 fund, not the GF. Harshman: Is all of the 363 ongoing? Applegate: yes, whether it is in house with ETS or outside entity. Harshman: narrative suggests part of it is building costs Applegate: Sales force is the licensing. Harshman: part of the one time is in the 363? Applegate: No Hibbard: The build out is already funded. The other is ongoing and it will be paid for by fees Applegate: Priority 2 is to replace hardware. Governor denial Stubson: Cancellation of this. Hibbard: All agencies were asked to go longer with their equipment Ross: Priority #3 Applegate: That ties in with the 111,000 – tie into the unified network for all of our field offices, switches needed Ross: Denied by the Governor Burns: Spending 323,000 to get this into your office. Additional money is for you to be able to connect it? Applegate: We can use the internet today for the 323,000. Without the funding for the switches, we cannot tie into the unified network but we can still tie into the internet. Burns: Deny the 111,000 along with this or agree to the 111,000 with this Hibbard: We believe they have the necessary switches to connect. Ross: priority #4 Applegate: ETS recommendation to replace our Microsoft software and go to office pro. We felt it was unnecessary so we are fine with no funding. Ross: The governor approved it out of LSRA. Applegate: Priority #4 40,000 to replace fire reporting system Governor recommendation for half of it. Ross: Priority #6 Applegate: 111,000 for the tie in to the unified network. Ross: What is programmer time? Man hours? Morris: Coding – we get billed, then pay ETS and use the 0420 coding Perkins: Time to install the computer equipment buying in priority 5 Applegate: No – update fire reporting system software – firehouse Connolly: Conversations with ETS in putting together the budget and figures. Morris: Meetings with BA’s, went through the line items. They gave us information of what we needed, then go online to get approval from CIO and ETS. Connolly: Other elements, software and hardware? Hibbard: In the spring of each year, ETS reviews express need of each agency and quantify for the costs. ETS does not make a recommendation of what agency needs to be successful. If agency has poor connectivity, which this one does, ETS explains what is needed to improve that. Business case is developed. Agencies have a problem, express it to Business Analyst from ETS, comes to Governor for recommendation and JAC for recommendation. Perkins: Confusion – priorities 1-5 are IT service related. The only one requiring IT was priority 1 with the business case. Priority 2 withdrawn. 3 denied. 4 approved but folks will wait, priority 5 says no IT time is needed. What is 111,000 for when what was asked for is not going to happen? Hibbard: Priority 4 – ETS reviews anything to do with software or peripheral. Depends on the needs. ETS reviews needs and replacement cycle. Connectivity issues. ETS develops economies of scale. Priority 6 asking ETS to perform this connectivity. Applegate: ETS took into consideration office location. Ross: One time request? Applegate: yes Burkhart: People from ETS who put the lines in, do they have to have a license from your department Applegate: It is contracted out with licensed people. 12/16/2015 8:43:07 AM Applegate: Council funding, good share of our office travels. We have cut out of our travel budget. 363,000 is part of the 088 funding, not general dollars Ross Hibbard – pg 16 -18 Connolly: How did you cut your budget so much? Applegate: Going by past history. Burkhart: Item 242 has exception request for 127890. Governor denied some of that. Page 14 Applegate: part of the priorities 1 through 6 Stubson: Cutting in code 234, food service supplies. Applegate: Electrical Board and Council, intent of 3000 is to fund food costs for travel. Stubson: Food for travel shows up in this line item? Morris: Conferences Ross: Similar reductions to electrical safety as in fire prevention. Exception request for cellular Applegate: Worland office has poor connectivity so we have hotspots on our phone lines for inspectors. 12/16/2015 8:50:05 AM Applegate: page 27 fund 088, for fees taken in from licensing and permitting. It funds the 3 electrical inspector positions and other needs like the 363,000 talked about Burns: drop? Hibbard: Cafeteria plan selections as we built the budget on the snapshot in June. Applegate: page 31 – training division – 8 people across the state and some staff in the Cheyenne office. 501 is fire academy, 2 staffing positions. 900 series is instructors, number varies yearly as does instruction time. 900 series for part time help. Nicholas: Cost of RATIVA, company doing build out Applegate: Total cost was 294,000. 36,000 was to build the program. The rest is the licensing and users fess. We started the process with them 2 or 3 weeks ago. 90 day time frame for first part, additional 90 for the remainder. 6 months to have the total project done. Nicholas: $111,000 quoted by ETS. Did you go back to ETS to say it exceeded your budget? Applegate: We will eliminate costs for hotspots if we improve connectivity. Did not talk about what we will do, if it does not happen. Stubson: Code 227, has 300 in line item but a 500 cut. Applegate: Typo. Ross: Thanks to the agency. Applegate: Thanks and Merry Christmas Break 12/16/2015 8:58:34 AM 12/16/2015 9:08:39 AM Ross: Agency 270 – Office of Administrative Hearings, Deb Baumer and Jana Reutlinger Baumer: Mission of agency – disputes, staff. We try to conduct hearings where the dispute occurs. We use some videoconferencing for in person hearing. Case load – 1400 last year. 523 went to hearing. We are funded 55% from workforce services and 45% from DOT so we are statutorily required to hear cases from those agencies. Any other agency or board that requests our services = 140. 75 went to hearing. They are sometimes multiple day events. Losing party can appeal to district court. Full range of clients. Burns: How charged? Baumer: $120/hour for attorney time. Referring agency pays bill. Burns: Lead time? Baumer: Depends on case complexity. Connolly: Funding? Hibbard: DOT and Workforce Services, who provide funding, reviews agreement every 5 years. Baumer: Fees collected go back into 0202 Connolly: How do you get cases, and which do you not hear? Baumer: Cases come from agencies Connolly: Cannot do discrimination cases, which others? Baumer: All except PSC, Board of Equalization Stubson: Contract hearing examiners, turnover? Baumer: No turnover, long term hearing examiners. Connolly: Employ investigators? Baumer: No. Ross: Downturn in license suspension hearings in connection with DUI? Baumer: Yes. Wasserburger: Salaries? Baumer: Will send. Ross: Hearing examiners paid? Baumer: Paid around $90,000 annually, staff, $45,000-$50,000. Recently increased salaries. Can set rates for workmen’s comp attorneys hourly fees, which is currently $150/hour No entry level hearing examiners utilized. Not reimbursed for travel time. Perkins: 78% performance rate. Process when reversal? Baumer: Annual meeting with staff to review various court decisions as related to hearings. Perkins: Workmen’s Comp cases Baumer: Very specific time frame for referral, otherwise performed by internal hearing unit in Workmen’s Comp 12/16/2015 9:37:56 AM Break 060 Office of State Lands and Investments Bridget Hill, Director; Amanda Sewell; Bill Crapser; Susan Child Hill: 2 boards, Board of Land Commissioners and State Lands and Investments Board. Investment programs. 4 divisions, financial, trust land, field services, forestry. Department priorities, page 12. Broken into two units as associated with the boards. Board of Land Commissioners priority list: Revenue generating and statutorily required were key considerations. Most revenue from mineral leasing. Mineral royalties compliance ensures payments received. Accurate placement of funds received into proper accounts. Grazing and ag leasing 2nd highest revenue source. Greear: Bonding and reclamation, good shape? Hill: Yes, holding $18M more in bonds. Hard minerals bonding is an on-going process. Easements, sold at market rate. Not all items are revenue generating. Acquisition and selling of land. Weed and pest program, fire management, state signage, forest management best practices, living snow fence. Hard to prioritize, lots of personnel overlap. Could cut weed and pest program entirely. Crapser: Lots of personnel overlap, especially in forestry division. Hill: State Land and Investment Board priority list: Clean Water and Safe Drinking Water programs, federal dollars. Mineral royalty grant program provide funds for a large range of projects. Transportation enterprise program, Farm Loan program priorities. Farm Loan program established by legislature to help ag industry years ago. 8% interest rate on loans, not meant to replace private funding. Greear: How much is program utilized? Hill: Not utilized as much except by beginning ag producers. Ross: Court house security grant? Hill: last biennium, give 2 entities dollars for facilities. Last year, added 8 counties with specific dollars. Hill: page 26, Administration and Support Unit. Request for software updates. $101,399 approved by Governor. Position transferred to another division. Trust Land Management Unit, page 35. Request for data management enhancement and maintenance. In process of installing new computer system to become fully automated. Could communicate with Forestry Division data system. Would allow better customer interface. Should fully interface with other computer systems. $267,000. Connolly: Negotiated by ETS? Hill: Business case presented to ETS, continued after approval. Do not if scale of economies by using ETS? Harshman: What has been spent? Hill: $350,000, bought current data system, but looking for increased efficiencies. Exception request for trust preservation and enhancement account of $735,000. Criteria for which projects, request monies as needed, and provide updates to interim committee on chosen projects. Reduced to $629,200, as approved by Governor Greear: Why general fund? Hill: Monies come from school foundation account on school lands Burns: Which committee? Hill: Ag Committee 12/16/2015 10:28:55 AM Nicholas: ? Hill: Child: We get with staff and try to determine projects that can be accomplished in the next biennium and that is how we come up with the money needed. Tin Can Alley appropriation was a lot larger. It is a done deal so back to $736,000. We could probably cut back on some of those. Emergency rescue center – during building found that a cement manufacturer dumped all their materials there. Needed something in the hopper to clean that up. Harshman: Before you had the 750,000 how did you take care of clean up? Child: Budget surplus in an emergency, volunteers or did not get project done. Account came after the legislature and task force (in 2005) met. Harshman: Child: Cost benefit analysis – I can pull something together Harshman: List of what was spent in the last decade on emergencies. One page summary Child: Each project has a code. I can print out a report. Nicholas: Why general fund dollars? Lease funds? Hill: Idea of a special fund not well received. Child: Discussion of task force was a self-funded trust. Possible constitutional issue in other states. Harshman: Fee on each lease would be a small amount to fund this? Hill: We have never do that analysis. This year the fees we received in application fees, statute has list, do go into the GF and we raised those fees this year through our rule making. Costs to directly and indirectly fund the one on the list (about 11 on list). If something was added to statute, we could do that. Harshman: Stubson: We skipped page 34 and discussion on 712,000 reduction to trust management. Weed and Pest. Costs of weed and pest on state lands. In leases, do lessees have the responsibility for those things anyway? Hill: yes. Weed and pest program came about from Weed and Pest Control Act. We fall into that. In the past we passed costs on to the lessees. Counties had concerns the state lessees were not cooperating. In early 2000, the funding was placed in our budget to cooperate with the county in being more aggressive in some area. The money goes to the counties. We pay for the application or leafy storage, 100%. Stubson: Money flows to counties or to the vendors? Hill: We pay the counties. Stubson: Amount tapped out in the past? Hill: Significant reversions, strike significant. This year we were more aggressive in telling folks that program exists. Thought this was a place we could recommend a reduction in funds. Connolly: List of counties and amount of reimbursement. Why was this listed as 10th priority but gave up to Governor in fiscal year 15. Hill: I will get it. We could isolate a chunk to cut in this area. It is a self-contained area as opposed to over-lap areas. Harshman: Answer in enforcement of the lease. Perkins: Range management practice. Complaints give knowledge of problem Hill: Staff, acreage. With field staff, we are able to visit more parcels than before, more efficiently. If county complains we send a field person out there and let lesseses know they need to live up to term of lease. Perkins: State lands that are not leased? Hill: Very few unleased, would use the Trust Preservation and Enhancement Acct. Nicholas: page 34 . Real estate transactions 20M Hill: Anticipating payment for two sections within the Grand Teton National park. Land exchange plus cash was anticipated so estimated amount in account. I am hopeful we can accomplish the project. They could not come up with the money so we explored an exchange. We put our priority on parcels with mineral rights. Amount of federal land went up considerably when oil and gas prices dropped. Conversation continues. Harshman: Review of parameters. Land in Teton county is a great investment for the state. Will it require legislative approval again? Hill: I don’t believe so. Legislation in 2000 set values and said we could explore options. In 2014, you amended the 2011 legislation to extend the timing of that. Parameters of buying at established values or exchanging within parameters so we have authority to do so. What we would need is time. Dec 31, 2016 is deadline. If outside of parameters, then we would have to come for approval to the legislature Ross: Appraisal Hill: We had it redone this year and it went down so we will stick with the previous appraisal. Ross: How did it go down? Hill: We could no longer use the comparable to break it into smaller lots. It was appraised as one whole piece so it went down. We would not sell at the lower value. Nicholas: Same appraiser or different? Hill: Different. Independent office for appraising real property. Nicholas: Go out and get our own appraiser. Hill: Nicholas: You do not have to have comparables if they do not exist. Can you provide a synopsis/summary of the appraisal. Hill: yes to the extent I can, some level of confidentially. 12/16/2015 10:55:11 AM Ross: Hill: Clean Water Program loans money to communities. Two ER. 7A for 2500 for increase in audit fees. Priority #9 request for at will engineer. Position freeze so we are no longer pursuing. 12/16/2015 10:57:01 AM Hill: Government grants and loans unit 104 has no ER. We cut in-state travel of 5000. Burns: Price of gas? Hill: no it was not. Gas gets charged through motor vehicle charges. This is for less travel. Unit 105 field services division has no ER or reductions in budget. Drinking water state revolving fund unit 131, chart on page 70, two ER. Priority 7B 2500 increase in audit fees. Ross: federal funds used? Hill: yes. 24,000 increase – set aside in federal programs, employed Wyoming association of rural water systems to be resource for lower population communities, comply with safe water drinking act. They want to increase the training, offset increasing costs. 12000 per year, federal funds from the set aside. We think it is a good thing. We have problems with unliquidated obligations from the EPA. Hill: forest service Crapser: Forest service MOU – federal employee is capital coordinator for interface with state agencies. MOU for forest service employee, copy and printer expenses. No ER 3 major programs are state trust land mgt.,(300,000 acres of forest), fire management program 6.3 M acres statutory responsibilities, 29 M acres of private land. Priority 3 AWAC employee position in Rawlins. BLM timber program. Program has been wildly successful. Timber mill in Saratoga. Forest Service wasn’t to work with us also and is willing to pay half of the person’s salary for the biennium. Burkhart: How much of timber contracts and sales are worth? Crapser: In year and half, 12 M board feet in pipeline, which is half a year supply for the Saratoga mill. Burkhart: give number later? Crapser: Bug kill wood so value is low compared to economic benefit. Burkhart: I am interested in economic benefit. Crapser: Arbor Day. Tree inventory of cities and towns. Federal dollars pass threw for tree care workshops and planning projects. Northern Rockies Tree School. Perkins: How do you get the information out? Who attends? Crapser: City and county employees. Advertised on our website, local newspapers, Perkins: Overlap with county ag agents Crapser: We coordinate with conservation districts and extension. Symbiotic relationship Perkins: Forestry conservation. Analysis of costs of services provided by inmate crews. Crapser: We do that. Skill set given to inmates. Priority 6 – forestry outreach position to work on implementing recommendations of governor’s task force. Funded for 1 year as AWAC position. Governor wanted to keep it in budget. Nicholas: if this position is of value, instead of adding a position, would you get rid of a vacancy? Crapser: We offered to give up position at Riverton Honor Farm. It is still in the budget. With approval, I would reclassify that position. Nicholas: Comparable pay? Crapser: no, position is a 7. We would need a 9 so this position would be about 15-16000 more per year. Burkhart: is position in Riverton open, vacant? Harshman: Vacancy list – Correction facility forestry supervisor has 2 positions open for 15 months. Crapser: open due to safety and operational concerns. Brought in a consultant and community group to study. It would be the 2nd position. Harshman: Other positions are frozen. Forestry analyst, assistant district forester. Crapser: We got an exception for the asst. district forester. We asked and received exceptions on three of the frozen positions. Harshman: Three nice to have positions? Crapser: Correctional crew supervisor we are talking about. 4 TPEO positions, fire crew running fire helicopter. Page 84 – federal excess property program- No ER. Revolving account. Buy parts, bill the county for costs Fire suppression account has no ER. 2.6M spending authority based on 10 year avg. 2012 is not included in this number. This year we had 9 suppression fires. The account has roughly 22M in it. We have several fires from this year coming out of the account. Estimate of balance of 20M. Fire budget – separated out from operations budget. Seasonal positions are in this budget, not the forestry operations. We have no ER. 40% is for federal funds that we recoup for fighting fires on federal land. 12/16/2015 11:21:11 AM Crapser: Skip to page 100 for federal forestry grants. 6.1 M spending authority. Pass through account. We have gotten about 2 M per year. There is a competitive grant part, we are not successful at acquiring. Stubson: Forestry building in Cheyenne did not receive approval. Ross Crapser: The fabrication facility was the original highway division shop built in 1928. The office building was condemned, so we moved. The shop is in rough shape, issues with mold and lighting. We build fire engines there, 5 per year. Federal property received from DOD. 35 to 40000 per outlay for the counties. Commercial price would be 300,000. 3.5M value per year to the state. Burkhart: Perkins: Forest legacy program. Is it active? Conservation easements purchased? Crapser: Program is fairly new. 5yrs. To date, one conservation easement, Monger mt. in teton county. GandF are holders. State land board can’t hold easements, by statute. Requests sent in this year for several. Funded with land, water conservation fund. Depending on omnibus, it may be a moot point. Perkins. Purpose of easement? Crapser: It was game migration. Wildlife trust fund was involved but I do not believe they had any funding in that project. 12/16/2015 11:28:14 AM Hill: MRG unit, mineral royalty grant, chart on 99. 4th priority ER. 3.8M requested in additional grant funding. Our intent is to restore historical funding amount. Funding had been at x . Some was redirected to highway and to court security. We are seeking a return of the funding. Harshman: Has the Governor profiled some of this for WyoLink? Hibbard: 1.4M from carryover MRG. Harshman: Homework – last 5 bienniums carryover amount and what the funds have been used for, other grants. Hill: The carryover amount – the amount that comes to us for grants and loans, we hand it all out. Part of the monies don’t come through our program. Page 105 Transportation enterprise unit has no ER or alterations in the budget. Harshman: Spending authority narrative. Bringing in shy of 1M? Hill: This is spending authority. We administer grants. Interest earned on transportation enterprise fund is what is spent. Amount in account is not equal to 2M. If there is not going to be enough funding to allow us to grant the full 2M, we don’t do that. We cancelled one meeting and only handled out half. We hope to keep authority at 2M in case interest came back. Harshman: Has the Governor used it elsewhere? B-11 Hill: no – we don’t use it. Fund is only at 1 M. We hand out the interest we make on that account. Hibbard: The trust fund allows OSLI to hand out the interest. The corpus is inviolate. Money came from Amtrack, federal swap. Harshman: Wouldn’t it make it more sense to keep spending authority at amount spent? Hibbard: yes Hill: Perkins: where does the other 10% go? What type of projects for the grants? Hill: in the fund. People mover program, foster public transportation in the state, buses, small vehicles,. Grants come from cities, towns. Entities with contracts with the DOH. Perkins: All for purchases? Not for operations or personnel Hill: Correct – we may allow a grant for maintenance for a vehicle. Nicholas: Will this be affected by the constitutional amendment? Hibbard: yes. 90% of earnings are spent, 10% goes into the corpus to grow it. Ross: Thanks and have a good Christmas Next agency is at one o’clock for the Collection agency board. 12/16/2015 11:39:49 AM