JAC Agency Hearings
JAC Index 12-15-17am1
Friday December 15, 2017
Agenda: AM
 011 – Department of Revenue
009 – Wyoming Pipeline Authority
032 – Wyoming Infrastructure Authority
027 – State Construction Department

12/15/2017 8:05:38 AM
Chairman of the Day – Chairman Burns 
Roll Call: Richards, Quorum is established

12/15/2017 8:07:07 AM
011 Department of Revenue, Dan Noble, Director, Christie Yurek, Administrator, introduced staff, overview of budget and exception requests
Noble: pg. 7, 8, exception requests, mainly hardware and software, pg. 12 Unit 101, pg. 15 unit 102, ER #9, dues- licenses- registration, licensed with Amazon.com, 3700 businesses licenses w/WY, taxes on direct filled orders from Amazon, not capturing taxes on second marketplace providers, following ND law change, $10K needed for Streamlined Sales and Use Tax Agreements, GF $’s, ND remote tax, physical presence in state cannot collect sale tax, pg. 18, hardware ER#5, $6K
Sommers:  budget cut in admin last time in unit 0103
Noble: 2 FTE’s, moved 1 to excise tax division, $161K cut, admin division moved secretary to another division
Burkhart:  dollar amount for computers differ from other request
Noble:  run an app, dual monitors, pg. 22, ER #1, licensing with Informix, $37K, record keeping software; organizing of data, consult with companies to stay up to date, potentially changing to SQL, $97K, mineral tax system, early 2018, excise tax system - need code rewrite, cost increase, pg. 23, discussion followed w/Chairman Nicholas about future computer, software efficiencies, ER#3, professional fees, staff, institutional knowledge, $100K, software solutions from MBS
Sommers: consumers are captive to computer software developers, increased costs, upgrades and changing software, people let go
Noble:  Year 2000, 139 worked at DOR, down to 112, technology cause, old technology vs today, efficiencies increased, 5%/year increase request in software updates
Sommers: the offset is capturing more taxes with updated software
Noble:  becoming more effective in capturing taxes, tied to a function of technology, Informix system, about 1998, pg. 30 ER #4, computer equipment
Yurek: savings in postage, approx. $50K in bulk mailings
Noble: registration fee, pg. 30, ER #10, re-establish membership with Federation of Tax Administrators, $15K, shared with Dept. of Audit and WYDOT for licensing, WYDOT is federal money vs state money, same cost, pg. 34, unit 285, mineral tax division, pg. 35, ER #13, remove position #309, pg. 37, FTE change, pg. 42, 2 ER’s #6 external maintenance contract
Arnold: late 80’s fair market value taxation, uniformity, state would pay for hardware, software and training for assessors, in house code writers, 2004, moving to PC based system,  converted data from mainframe, 2 software data collection files to one system,  third party software, APEX, price increase 25% next year, mapping component, improved customer service to all 23 county assessors, replace 176 workstations, 31 printers, public access terminals, extend maintenance on servers and purchase one new server, parcel viewer, ESRI software mapping, buying server vs Cloud storage, purchase cheaper
Noble: Pg. 45, 320 reduction, $392K, not funded in last biennium, reverting dollars
Richards: history of actions, low income/asset, refund on taxes paid, committee action left $ in 17, used in 18, leftover in program, remains in statute subject to appropriation, 
Noble:  pg. 53, ER #8, 400 series move to 300 series, $217K, ER#11, computer purchasing
Cook:  disaster recovery tool – tapes, stored else ware to restart if catastrophic event occurs
Noble: don’t have level of connectivity so go with magnetic tape backup, self-contained unit, no news of fiber optic update
D. Young: ETS, circuit too costly to do connectivity, utilities issue, benefit all agencies on Campstool Road, cheaper alternatives to tape drive, cost effective, excellent technology roadmap
Noble: pg. 54, ER#12, $95K, customized maintenance, Epicor –send and receive liquor, move to privatization limits choices for retailers, state regulators – control
Burns: distillers want tasting rooms in state
Noble; federal laws for distillers, must offer same amenities to out of state distillers
Nicholas: efficiencies report questions/discussion, revenue enhancements
Noble: staffing issues, getting behind in certain areas, imagery mapping for assessors, structure changes, etc. use best guess in implementing suggestions, take initiative in going forward, incurring costs vs efficiencies savings, would provide JAC with thoughts on efficiency items outlined
Walters: pull tabs, wholesale perspective, vendor provided vs online sales feedback research
Noble: research, now going to non-profits
Landen: space issues, splitting agencies
Noble: explain space efficiencies, may have to shrink, cost association, restructuring organization chart, working group meets next week

12/15/2017 9:56:09 AM
Department of Revenue complete

12/15/2017 10:11:20 AM
009 – Wyoming Pipeline Authority
Brian Jeffries, Director, overview of agency’s mission, moving gas from Powder River Basin, WIC pipeline serves other parts of Wyoming, saving money for transportation costs, Oregon contract
Landen: Oregon hub
Jeffries: Jordan Cove, OR in the neighborhood of Coos Bay, OR, connects to Ruby pipeline in WY, hearings process, deficiencies, fall of 2018, 3 year construction projection, significant pushback on pipeline construction, Ruby line is 42” diameter line, 500 – 700 million gallons /day, no facility in Coos Bay, # of employees need to be researched, LA 4B cubic ft. /day,  co2 routes, WY corridor project, pg. 12, 320 reduction, 900 series – salaries, not in state personnel system, consultants, list of salaries requested,
Jeffries: operate in oil pipeline service also, FERC, Canada Express pipeline, lifetime of a pipeline can be over 50 years with proper maintenance, eastern WY oil finds, Dakota pipeline, capacity not at limit

12/15/2017 10:37:25 AM
Wyoming Pipeline Authority Complete

12/15/2017 10:37:49 AM
032 -Wyoming Infrastructure Authority   
Jason Begger, introduced accompanying staff, contract employees of the state, 15% decrease, series 900 expenditures, energy policy network, h/o 087 referenced, return on investment significant, Arkansas legislators visited, integrated test center management biggest project, business development aspect important, strategic plan overview, October conference, create a carbon testing center for attracting other states/businesses, establish and stay engaged, Texas trip tours of energy centers, Clearpath, low carbon energy projects, referenced h/o 089, pro development side, get out ahead vs being reactive, like to expand to Pacific Rim for coal, international outreach, Gov’s office has lead, New Orleans port to ship coal, rail distance issue, social media presence, 900 series question, energy policy initiative created for pushback to government initiatives to hamstring energy industry, increase of funds to stay on track with agreements, EPN- Environmental Policy Network,  $1M/yearly budget, EPN’s trying to get more private funds to become self-sustaining, 19/20 budget anticipating going to EPN – not mapped out yet, salaries not reported in 900 series – will check and follow up
Richards: any external contract in excess in $5K need to be reported in 900 series, structured unusually
Begger: $1.3m/biennium, academic studies not being done – cost savings, salary breakdown requested by Sen Burns, bonding authority, pg. 11/12, utility reduction, not in WOLFS, 
Richards: continuous funding through statute possibility

12/15/2017 11:31:17 AM
 Agency 032 completed

12/15/2017 11:42:22 AM
027 – State Construction Department
Del McOmie, Brandon Finney, Mel Muldrow, pg. 51, CM division operations, pg. 52, Travel, $275K, office supplies, $7K, data services, $6K, $170K time limited position within Capitol Renovation Project, pg. 55, CC CapCon section$232K, moved to admin division, Capital Construction book, pg. 9, SBC contingency funds request $5M, list of funds expended requested
Muldrow: current $1.6M in SBC, usually $8M in account, $5M expended
McOmie: other funds available, major maintenance by statute used for existing buildings, purchasing property not allowed in major maintenance fund, report to Larsen, pg. 12, major maintenance, 2.56 multiplier, staying with old percentage – 1.5%, report due to Chairman Nicholas, summary, RS means value has increased, state department and G&F totally independent, pg. 16, Health and Science building remodel and expansion for N WY CC district, Gov’s rec – deny
Muldrow: 10% contingency dollars, admin fee 2% helps with travel to sites, funded by GF vs project owners, was in place
McOmie: pg. 20, gov’s rec approval, authorization only, OFs, pg. 24, NWCC – 100% GF, Gov’s rec – deny, #2 CC commissions project, pg. 28 NWCC – student center, 100% GF, Gov’s rec – deny, #1 CC Commission, pg. 16 carryover project, not on CC commission list
Schaffer: background on CC Commission process, campus master plan, $1M threshold for authorization, new list yearly, various levels of who pays for what outlined, SIPA fund, reference h/o 097
McOmie: pg. 32, Albany county classroom expansion100% other public funds, need spending authority, Gov’s rec – approve, pg. 36, Visual Arts, CC, Gov’s rec – deny
Muldrow: $7.75M split, GF ask
McOmie:  pg. 40, mechanical repairs and replacement - WWCC, 100% GF, Gov’s rec – deny, major maintenance project
Flum: unique project, separate ask, reached limit of life span of system
McOmie: level 2 design on a major maintenance project, one giant building, water and electrical failures/ challenges; this is large major maintenance project, pg. 44, performing arts building LCCC, Gov’s rec – deny, reports on building conditions on campuses, also include across the state
Larsen: extras put in vs emergency need, definitive plan
Muldrow: final report breaks it out in level 1 and level 2, report to committee
McOmie: pg. 49, 115th field brigade readiness center, Gov’s rec – approve; pg. 53, TSC readiness center, Gov’s rec – approve
Webb:  depends on contracting scheme for 5% , use what funds, military department, 50% NGB, 50% NG state dollars
McOmie: pg. 57 Barrett Building Boilers, $2M 100% GF, Gov’s rec –deny, rates construction vs MM, pg. 61, Maghee building – DFS – Lander, Gov’s rec – approve, payback over time
Forslund: DFS facility in Lander, renovate an empty facility, will move office
McOmie:  pg. 65, spending authorization – state parks and cultural resources, Gov’s rec – approve,
Pg. 69, spending authorization, approve –Gov’s rec; pg. 73, spending authority, Gov’s rec – approve

12/15/2017 1:21:45 PM
McOmie: pg. 10. h/o 027-083, prison construction, $1.2M, major masonry repairs, $400K, minor masonry repairs, $50K, pg. 11 of h/o, mud jacking, etc., $132K, joint sealants, $75K, pg. 12 snow management plan to get snow away from building, $143K, establish realistic budgets for future maintenance $2.9M, on site construction manager $234K, total request - $5.1 M
Nicholas: breakdown $2.9M request; facility manger –routine maintenance; weekly reports
Larsen: pipe breakage - additional, what caused breakage
Webb: pipe separation, outfall pipe settled, gray water in kitchen, maintenance on walls
Webb: roof issues, no update from company, water under insulation in spots
Landen: long term maintenance strategies, include roofs, piping folded into major maintenance?
Webb: Real Property Inspection Evaluation should be ongoing for any facility
Burns: military facilities, once complete state pays 50% of maintenance
Webb: military maintenance, land owner and building owner, FF, on state land split, facility use, federal building or state building
Driskill: contractor issues or maintenance issues – major – both; 
Sommers: boilers, major maintenance?  Roof failure – may be MM; RO system turned off
McOmie: boilers – MM $’s, Roof – 1 year left on warranty, $6.5M for new roof
Walters:  Were other statewide correction institutions visits?
Muldrow: yes, visited all, Rawlins facility management does a fair job of keeping up with maintenance, AiM system will help with tracking, preventative maintenance, helps extend the life of almost any component

12/15/2017 1:46:38 PM
Agencies for today complete