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Land Board Hearing Recap

Tuesday, June 18, 2024

• All Board members were present
• Review the Final Agenda
• Download the Meeting Materials

Department Report

Timber

• Attachment: Trust Land – Timber Sales

• May Timber Sales:

  • Decreased sales at auction, 8 with competitive bidding, 1 unsold.
  • Net sale value up 14% over appraisal.
  • 40 million board feet sold for $8.7 million.
  • $1.1 million in premium bids.

• June Timber Sales:

  • 10 sales, 70 million board feet, valued at $8.7 million.

• Current Contracts:

  • 519.7 million board feet in 156 contracts, valued at $150 million.
  • Average price above three-year average.

• Receipts and FY24 Plan:

  • $71.4 million received, $9.6 million expected.
  • 98% of FY24 volume sold or in process.

• Performance Metrics:

  • Harvest proceeds at 99% of three-year average.
  • Harvest volume at 105% of three-year average.

• Market Conditions:

  • Lumber prices stable; stumpage prices down.
  • May sales showed strong competition.

Leases & Permits

• Attachment: Trust Land – Leases and Permits

• Leases, Permits, and Real Estate:

  • 16 instruments issued in May, including 13 lease assignments.
  • 1 real estate transaction: road easement acquisition in Shoshone and Benoit counties.
  • Exceeded revenue projections due to premium bids for sand and gravel leases.
  • Ahead of projections in most categories; final fiscal report due in July.

  • Royalties are ahead of three-year average with nearly $2.3 million.

    • Major revenue from sand and gravel.

Endowment Fund Investment Board

• Attachments:
  • EFIB Manager's Report
  • EFIB Investment Report

• Inflation Trends:

  • Slight increase in early 2024.
  • April inflation down to 3.4%.
  • May inflation down further to 3.3%.

• Market Performance:

  • Portfolio up 3.3% in May.
  • Up 10.7% fiscal year to date.
  • Currently up 11.8%, hopeful for a strong year-end finish.

• Economic Indicators:

  • Economy expected to slow due to higher interest rates.
  • Strong consumer spending, positive job growth, rising wages.
  • Continued decline in inflation and strong financial markets.

• Overall Outlook:

  • Better performance than expected.
  • Positive sentiment about the year's results.

Consent Agenda

• Approved 5-0

Greer Access Site Surplus Property Negotiated Sale (Idaho Fish & Game) 

• Attachment: Greer Access Site Surplus Property Negotiated Sale (Idaho Fish & Game) 

• Sale Process:

  • Property declared surplus on May 16, 2023, valued at $150,000.
  • No interest from other state agencies.
  • Offered to city, county, and federal agencies; Clearwater County showed interest and offered $50,000.

• Approval and Public Hearing:

  • Idaho Fishing Game accepted Clearwater County's offer.
  • Public hearing held; attendees supported continued public use.
  • County plans to maintain current uses and improve the site.

• Department Recommendation:

  • Recommend selling the property to Clearwater County for $50,000.

• Clarification:

  • Sale did not need to meet appraised value as it's not endowment land.

Results of May 16, 2024 Mineral Lease Live Auction

• Attachment: Results of May 16, 2024 Mineral Lease Live Auction

• Auction Overview:

  • Held on May 16, 2024, for Mineral Lease E 20009.
  • 45-acre lease for sand and gravel extraction in Bonner County.

• Lease Details:

  • 10-year term.
  • Royalty rate: $1.17 per short ton.

• Auction Results:

  • Two participants.
  • High bid: $40,000 from Premier LLC.
  • Detailed results in attachment two.

• Compliance:

  • No fraud or collusion observed.
  • Process followed existing statutes and procedures.

• Recommendation:

  • Award lease to Premier LLC.

Forest Legacy Program–Dawson and Skin Creek Easements

• Attachment: Forest Legacy Program–Dawson and Skin Creek Easements

• Project Details:

  • Completes the Moyie River Corridor project.

  • Funded by grants from offshore drilling royalties, with a 25% non-federal match.

  • Total of 875 acres north of the Kootenai River, near Bonners Ferry.
  • Supported by Idaho Department of Fish and Game, The Nature Conservancy, and other entities.

• Purpose and Benefits:

  • Safeguards forest land for perpetual timber production.
  • Protects viewshed, water quality, and wildlife habitat.
  • Prevents subdivision and development.
  • Expands non-motorized recreational opportunities (hunting, fishing, hiking).

• Conservation Easements:

  • Manulife Investment Management Timberland and Agriculture, Inc. managing for Boston Timber Opportunities and Golden Pond Timberlands.
  • Conservation easements protect economic and environmental values while keeping land privately owned and part of the local tax base.

• Support and Approval:

  • Broad support from public and private entities.
  • Boundary County Commissioners expressed support.
  • No known opposition.

• Access Considerations:

  • Appraisal considers access for both public recreation and property valuation.
  • Non-motorized public access guaranteed; motorized access at owner's discretion.

• Outcome:

  • Significant public benefit through conservation and economic value protection.

Strategic Plan FY2025-FY2028

• Attachment: Strategic Plan FY2025-FY2028

• Strategic Plan Update:

  • Plan spans FY25 through FY28, to be submitted by July 1st, 2024.
  • Four foundational goals established in 2016: financial stewardship, customer focus, people, and process.
• New Secondary Goals (Future Proofing Goals):
  • Classification and compensation
  • Office facilities
  • Seasonal housing facilities
  • Wildland fire and fire program modernization
  • Fund integrity
  • Policy and procedure
• Progress and Focus Areas:
  • Continued alignment of employee performance plans with strategic goals.
  • Increased wildfire protection and suppression targets (up to 9 million acres).
  • Emphasis on leadership development and training.
  • Facilities plan for seasonal housing and existing infrastructure upgrades.
  • Ensuring proper funding sources for programs to maintain fund integrity.
  • Rigorous long-term planning for the fire program to handle increased risks.
• Recommendations and Changes:
  • Plan includes mission, vision, goals, and strategies.
  • Appendix A added benchmarks and performance measures.
  • Changes in fire components and focus on leadership, facilities, and fund integrity highlighted.
• Action:
  • Recommendation to submit the strategic plan to the Division of Financial Management.

• New Secondary Goals (Future Proofing Goals):

  • Classification and compensation
  • Office facilities
  • Seasonal housing facilities
  • Wildland fire and fire program modernization
  • Fund integrity
  • Policy and procedure

• Progress and Focus Areas:

  • Continued alignment of employee performance plans with strategic goals.
  • Increased wildfire protection and suppression targets (up to 9 million acres).
  • Emphasis on leadership development and training.
  • Facilities plan for seasonal housing and existing infrastructure upgrades.
  • Ensuring proper funding sources for programs to maintain fund integrity.
  • Rigorous long-term planning for the fire program to handle increased risks.

• Recommendations and Changes:

  • Plan includes mission, vision, goals, and strategies.
  • Appendix A added benchmarks and performance measures.
  • Changes in fire components and focus on leadership, facilities, and fund integrity highlighted.

• Action:

  • Recommendation to submit the strategic plan to the Division of Financial Management.

State Membership in Timber Protective Associations

• Attachment: State Membership in Timber Protective Associations

• Requirement under Idaho Code 38-104 for annual review of readiness for wildfire season.
• Review includes governance, equipment condition and use, liability insurance adequacy, and personnel training.
• Both Clearwater Potlatch Timber Protective Association and Southern Idaho Timber Protective Association were reviewed.
  • Reviews conducted in May found no significant deficiencies.
  • Both TPAs deemed ready for fire season and capable of performing duties.
  • This review is a standard annual procedure.

• Recommendation:

  • Board to authorize continued state participation as a member of both TPAs.

• Eastern Idaho District:

  • Will be reviewed separately as an IDL district.
  • Currently staffing and procuring equipment, with full operation expected next year.

Deficiency Warrant Authority for FY2025 Fire Suppression

• Attachment: Deficiency Warrant Authority for FY2025 Fire Suppression

• Idaho Code 38-131 allows issuance of deficiency warrants if fire suppression costs exceed legislative appropriation.

• Budgetary Challenges:

  • Difficulty predicting annual suppression costs.
  • Minimal suppression appropriation included in department's budget request.
  • Actual costs exceed this soon after fire season begins, especially with contracted aircraft costs.
• Monitoring and Reporting:
  • Department will provide monthly fire suppression expense updates to the Land Board throughout FY24 fire season.
  • Focus on minimizing costs and ensuring efficiency with taxpayer funds.
• Recommendation:
  • Authorize issuance of deficiency warrants to pay for fire suppression costs in FY24.

Regular Agenda

Endowment Land Energy Leasing Policy 

• Attachment: Endowment Land Energy Leasing Policy 

• Approved: 4-1

• Proposal to approve energy leasing policy.
  • Increased interest in energy projects in Idaho necessitates clear guidelines.
  • Policy developed in collaboration with stakeholders, including the Office of Attorney General.
  • Aims to guide leasing teams on criteria for selecting, advertising, and negotiating leases for energy projects on endowment lands.
  • Identifies permitted types of energy leases, criteria for seeking Land Board approval, and lease provisions to maximize revenue and protect endowments.
  • Not a blanket approval for all future proposals; each lease/project will be evaluated individually.
  • Final draft of the policy attached for approval.

• Recommendation: Approve energy leasing policy as written.

• Clarifications and Concerns:

  • Discussion regarding the threshold for energy production facilities.
  • Policy applies to facilities with a gross rated capacity of at least 10 MW.
  • The Attorney General raised concerns about potential consequences and community opposition as with Lava Ridge and did not believe this is the right policy for the state and therefore is opposed.
  • Clarification provided that the policy aims to provide guidelines for evaluating proposals rather than actively seeking out projects.

Information Agenda

Pre-Season Fire Forecast/Update 

• Attachments:
  • Predictive Services Forecast
  • Resource Readiness 
  • Rangeland Fire Protection Associations

• Predictive Services Forecast: Jim Wallmann from the National Interagency Fire Center
  • Summer wildfire outlook:
    • Drought conditions nationally and in Idaho
    • Fine fuel loading: above normal in Treasure Valley and Snake River Plain
    • Snowpack: below normal in some areas
    • El Niño transition to La Niña
  • Weather and climate outlook:
    • Above normal temperatures expected nationally
    • Below normal precipitation in Intermountain West and plains
  • Significant fire potential outlook:
    • Immediate concerns in Southwest and West Texas
    • Grass fires in California due to wet winters
    • Above normal potential in Southern Idaho and East Central Idaho
  • Forecast by month:
    • June: Above normal temperatures, below normal precipitation
    • July: Above normal potential in Snake River Plains and Southern Idaho
    • August: Concerns in East Central Idaho and Idaho Panhandle
    • September: Continued above normal potential in Southern Idaho, East Central Idaho, and Northern Panhandle
• Resource Readiness
  • Binder attachments overview:
    • Summary of 2024 aviation resources
    • Map of aviation resource locations
    • Map of engine and staffing locations (IDL protective districts and associations)
    • Rangeland Fire Protection Associations (RFPA) history and statistics
    • Large map of southern Idaho and RFPA locations
  • Current fire update:
    • IDL: 50 fires covering 58.1 acres
    • 27 human-caused fires, 7 natural fires, 16 under investigation
  • Aircraft and staffing:
    • Contracted aviation resources in Coeur d'Alene, Grangeville, and McCall
    • Exclusive use contract for Type 1 helicopter, capable of 900 to 1000 gallon bucket drops.
    • Four single-engine water scoopers contracted, capable of 800 gallon drops
    • Exclusive use contracts for four single-engine air tankers, 800 gallons capable
  • Engines and staffing:
    • 31 engines located in 10 forest protective districts
    • Nine engines staffed by Timber Protection Associations
    • Type 5 engines utilized, carrying 550 gallons of water
    • Twenty-person hand crew (Tekin) and six-person Northern Suppression Module
  • Seasonal firefighters:
    • 141 seasonal firefighters hired, 50% new hires this year
    • 78% of seasonal staff are firefighter two, entry level firefighters
  • Challenges:
    • Difficulty retaining experienced firefighters, especially engine bosses and incident commanders
    • With 31 engines there are 18 permanent and seasonal engine bosses, allowing staffing of 58% of engines for 5 day coverage.
    • Competition with federal and neighboring state partners for qualified personnel
  • Active participation in:
    • Great Basin Coordinating Group
    • Northern Rockies Coordinating Group
    • Northwest Compact, encompassing territories and states including Yukon Territory, Northwest Territory, British Columbia, Alberta, Saskatchewan, Alaska, Washington, Oregon, Montana, and now Hawaii.
    • Reliance on interagency and neighboring state partners during busy periods.
    • Availability of five complex incident management teams through Northern Rockies on national rotation.
    • Great Basin Coordinating Group's involvement.
  • Readiness and cooperation:
    • Monthly meetings with interagency fire managers
    • Readiness reviews for 100% of districts planned by June 26
    • Participation in training programs and certifications 
  • Training for Loggers and Industrial Foresters:
    • Collaboration with Idaho Association of Logging Contractors for wildland training.
    • Development of training program tailored for loggers and industrial foresters, offered online and in-person.
    • In-person class with 75 attendees, certifying around 145 individuals this year.
    • 91-person increase from last year underscores program accessibility and effectiveness.
    • Year-round certification availability for all personnel.
    • Resources can be signed up as needed at district offices for incidents.
    • Acceptance of federal fire contracts for contractors involved in federal fires.
    • Heavy equipment deployment via interagency dispatch centers statewide.
  • Finalization of the 2024 Idaho Cooperative Mobilization Agreement (ICMA) in partnership with the Idaho Fire Chiefs Association.
  • Testing new module for streamlining billing processes
  • Deployment of fire detection cameras and prevention campaigns, including PSA's and social media outreach
  • FIRE Cache Readiness: Fully staffed, stocked, and prepared for the fire season.
•  RFPAs
  • RFPAs reported 27 fires in 2023, less than half compared to the previous year.
  • Two RFPs responded to fires this year: Weiser RFP and Mountain Home RFA.
  • Over 300 members qualified through Basic Fire School or annual refresher training.
  • No new RFPs forming, but discussions underway for potential new RFP in Fort Hall area, expected start date 2025 or 2026.
  • Governor's Office of Species Conservation assisted in acquiring Type 4 engine for Henry's Creek and Owyhee.
  • Saylor Creek received Type 6 engine through Federal Excess Personal Property Program.
  • Equipment acquisitions enhance strategic coverage.
• What can be done:
  • Collaboration with CTE program in Saint Mary's, SD41, to establish forestry and fire program for high school students.
  • Goal: High school students enter workforce qualified and ready, taking pack test.
  • UI offers degree in fire management, assisting high school graduates to move towards management positions.
  • Discussion on retaining staff post-entry level: Focus on competitive pay and benefits to encourage retention.
  • Expanding opportunities in fuels management to offer more work in shoulder seasons.
• Quantifying Losses from Fires:
  • Timber Division tracks and quantifies losses from fires on endowment land.
  • Quick action on salvage sales to recover value from burned timber.
  • Potential for presenting annual report on timber losses and salvage value to inform future decisions.
• Career Path and Salary for Firefighters:
  • Entry level firefighter salary under $16.00 per hour.
  • Career ladder progression: Firefighter to Engine Foreman to Assistant Fire Warden to Fire Warden.
  • Federal government comparison: GS 9 entry level salary over $28.00 per hour, with potential incentives.
• Recent Improvements in IDL Firefighter Compensation:
  • Hazard pay implemented through legislature with Land Board support.
  • Paid R&R provided for rest and recuperation between shifts.
  • Implementation of boot policy and other incentives.
  • Continuous review and adjustment of pay structure to remain competitive.

Executive Session

General Counsel, Department of Lands

• Idaho Code § 74-206(1)(a) – to consider hiring a public officer, employee, staff member or individual agent, wherein the respective qualities of individuals are to be evaluated in order to fill a particular vacancy or need. This paragraph does not apply to filling a vacancy in an elective office or deliberations about staffing needs in general.

Performance Evaluation – Director, Department of Lands

• Idaho Code § 74-206(1)(b) – to consider the evaluation, dismissal or disciplining of, or to hear complaints or charges brought against, a public officer, employee, staff member or individual agent, or public school student.

Regular Agenda

Personnel Matter 

• No attachments

Adjournment