ALC-Review

Alright members around with take your seats we're going to get the meeting started. So we don't have to limit agenda today and so we'll see got a few things are gonna get some questions and so four get started want to turn over my co chair Representative Davis unique comments seeing none all right Kathy let's get started thank you Mr chairman we're gonna start today's meeting with met as a finance on the item be page one is the letter from Paul of the in our office of accounting submitting the methods of finance we have to on page two of this package you a fateful for their central utility plant shop in power center this will be a five thousand square foot building that will provide a staging conduct maintenance operations from and the new power distribution center the agency reports reports that they have thirty three percent to up by funds and bond proceeds to cover this project which is three million dollars we'll also be seeing a contract for the method of for this particular project under construction related of contract number seven the next one number two is you a Fort Smith this is for critical maintenance projects on their campus of some of those are including a boiler replacement replacement of leaking roof and mitigation of drainage issues two million dollars in the at the university says that they have university reserves to cover that expense and that's the methods of finance on today's agenda. Alright members any any questions comments all right seen on those I understand is reviewed. The next group of items for the committee are discretionary grants the first ones come to us from the department of health number one and two on the item see page one or both for strengthening health care and services at the local level for charitable clinics number three is a grant to from the health department to maintain promote expand the Arkansas cancer coalition on number four on the next page is provided support and technical assistance reduce the cancer burden by implementing the Arkansas cancer plan number five which is funded by master to pack tobacco settlement funds is to reduce the use of tobacco among families with children who are in patient and out patient in the pediatric clinics especially among children whose conditions are exacerbated by secondhand smoke. Number six is also health department and this is an amendment to increase breast and cervical cancer screening to uninsured and underinsured women by implementing evidence based strategies. Number seven health department to for breast cancer screenings and ma'am our men Macher fee during after hours and number eighty is in order to contract with a license dental hygienist they'll do a establishing contract with family practice and pediatric medical providers deliver fluoride varnish tool kits provide in office training and provide training certificates of for the apartment Human Services payments and so those are the grants from the department of health on the next page page for you begin the grants FOR the department of Human Services their first one is for outreach services for senior adult in obtaining snapped benefit programs that senior out reach the second one is for nominee Arkansas this is to support the National Alliance on they'll mental illness number three is of help of Human Services with us into Arkansas area aging agency on aging to provide programs and services that improve the quality of life for adults with disabilities. Number four is east Arkansas area agency on aging programs and services again to increase the M. gray prove the quality of life for adults with disabilities number five is for infant toddler foster care training for the Pulaski County say babies Cortines project number six is national teacher education and compensation helps scholarship program which provides funding for early childhood educators then on page six you have to number seven and eight with or which are the same they are for continuing service as an early head start community hub and then the next group of grants comes from department of higher education the engage Arkansas americorps summer supplemental program. This is one with Saint Joe's of center for Arkansas and it is up funding opportunity allow for expansion of the farm corps program along with key partners of Arkansas farm to school the Arkansas hunger relief alliance apple seeds and the form for site. In order to better prepare communities and schools to take control of their own nutrition and those are the grants on today's agenda. Alright members are there any questions or comments seeing none those eyes will stand is reviewed. Mister chairman the next group of items on the agenda will be our consultant services contracts and on page one of item D. you'll see a letter from Mister Armstrong stating that all the contract that have been submitted day of appear on their face to be lawful contracts the first group of contract that we take a look at our construction related contracts on page two yes AT Q. has a contract for chiller replacement engineering services they also have a contract for own call assessment remedial investigations and actions dealing with hazardous waste and substances then number three is for DHS and this is contract for them to deal with of designing a new two of up to ten new dormitory buildings at the billable human development center number four and number five or both for national park community college the first one is for construction manager services for their student Commons and marine tech building projects and the next one is with the architect engineers for campus meant the master plan dealing with those same projects number six is state police this is a continuation the ongoing contract that they've had for construction of troop headquarters at four of their sites around the state I believe this is probably finishing out that contract for them number seven U. a fable this is the contract with the architecture service dealing with the central utility plant shop and powers and projects that we saw the method of finance far earlier on the agenda and number eight U. A. P. B. this is their own call design services contract for their campus those are the construction related contracts. Alright members are there any questions or comments. All right seeing none those that'll stand is reviewed. Next hour or the inter governmental contracts beginning on duty to these are contracts between state agencies that have been procured using an inter governmental procurement method health department with you a a mess to improve the health of arcane since through evidence based policy research program development and public issue advocacy statewide number two is the health department with UAMS department pediatrics of or position consultant to work with the Arkansas department helps newborn screening program number three health department with U. A L. R. on this is for obtaining technical services to implement the women infants and children with baby in me parenting program in selected with clinics across the state health department with UAMS for enhance specific pursuits by making available and assistant professor to work as a deputy science officer with the the Arkansas department of health chief science office as well as epidemiologist and scientists across centers to promote professional development health department with you AM mass number five or anything the health department's management of the prescription drug monitoring program the making available G. Richard Smith MD is medical director of the substance misuse and injury prevention branch on the next page page nine of item date DHS with U. A L. R. mid south training academy this is for implementing learning events focused on substance abuse prevention and treatment issues. A DHS number seven with UAMS. This one is for training and technical assistance to early care and education providers focused on family engagement number eight with U. A L. R. is for self education and training staff education and training skews me number nine DHS with you a a mess this is for a sexual rehabilitation a program for diagnosis assessment and outpatient therapy for DCF as clients number ten is far health department on the Human Services with you a mess this is for design and evaluation of all programs that would be less in the state's five year prevention plan under the family first services and prevention act number eleven is Human Services with UAMS for reporting and analysis for Medicaid programs waivers and grants number twelve is the insurance department they have one with you a a mess there for the college of pharmacy evidence of medicine program for the state of Arkansas public employees work workers compensation program for their formulae Arese national park community college has a contract there with the garland county deputy sheriff to provide campus security and number fourteen the state police has a contract with you a state will and this is for for crash data processing services for the state police highway safety office and those of the inter governmental contracts on today's agenda all rights we got a few questions here and first up. Senator Teague you're recognized for a question Sir thank you Mr chairman Mr chairman on the phone D. to autumn one. God. For some reason we're doing two hundred thousand one percent this time and all the others were two hundred thousand. I'm just curious as to where the pain came from. You would be curious about where that penny came from the area and the chair has no logical answer for that penny came from so if you want we can pull somebody appeared as Paul are not necessary but somebody can answer that for me. Marker somebody Laura is lower issue out there they can answer it they can just text me or something they don't have to okay we'll get you Mr that. The center. There are things that you center just go down there and see thirty yes Sir. Could you the Mister chairman wondering if since we had so many cuts in the U. AM at S. budget and some of the others is this helping to supplement some of that loss these grants that they're getting some of these contracts that they're getting of any five million us out there. You a message. actually DHS health okay we need help by the health department out there than. Okay. You member would cut some fifteen million so I'm just wondering if this is helping to mitigate that at all. Okay what what. He gets here. I am here with for the record. My name is Dan Purvis I'm with the chief of staff department of transformation shared services I can't speak to the health departments of grant of inter governmental services with you a message or existing contracts have been in place for several years so doesn't have a direct impact but it is a bill for the department to be able to share subject matter expert to cross the department's without increasing additional cost to the department or to a mass that answers my question thank you Mr chair thank you senator. Senator Hendren you're recognized Yeah thank you Mr chairman I just wanted to also remind senator Chesterfield the rest that we did feel that fifteen million dollar hole with the rainy day a trust fund emergency fund we approve during the special sessions at least to this fiscal year. Thanks center. Alright members are there any other. Questions comments all right see none of those items will stand reviewed. Mister chairman an excerpt of contracts begin on page fourteen and not a day these are out of state contracts the first one is a first for you or for the education department the first one is for the college entrance examination board it's for administration and scoring of the college board's Advanced Placement program exams for Arkansas students number two of is to administer two three and four are all for administering assessment testing to students in K. three two of contract number five education department solution trees provide professional development training for educators and selected schools on the next page you have eighty Q. has a contract there with winter solutions this is for software application development number seven is the health department has a couple of the first one is for service removal and disposal of hazardous waste material of the next one number eight for the health department is for data management and reporting a related the Arkansas state health alliance for records exchange also ninety share of the we're gonna have some for the Arkansas transportation department for their retirement of the first one number nine is with castle art management this is for investment management number ten is for custodial spike services and number eleven for asset manager for fixed income investments then the next one dollars sorry number twelve or for DHS saw that first when their number twelve is for waste disposal services at the Arkansas state hospital number thirteen is an amendment to the contract that they have for laboratory diagnostic testing services also at the state hospital and the number fourteen is for their patient fade nutrition provisions again at the Arkansas state hospital number fifteen is DHS and this is for the electronic benefit transfer services for the delivery of cash and supplemental nutrition addition assistance for. Program benefits number sixteen is national park community college four Nash learning management system cloud based service number seventeen public service commission to continue analysis and evaluation of technical and economic issues related to the electric and gas utility industries number eighteen of public service commission for a consulting firm to address enters the energy policy issues number nineteen is U. A Fort Smith on this is the original contract for contrary it can't management system solutions of number twenty Veterans Affairs has a contract there for providing financial billing accounting and consulting services to the state veterans homes in both north little rock and faithful and those are the out of state contracts on today's agenda. All rights isn't seat twelve is represented makes you are recognized for a question Sir thank you Mr chairman other question I have is on item number two three and four looks like we have three identical contracts to provide assessments for Katie through to testing I'm just wondering why we need three vendors to do this and why you know maybe eighty E. itself is not able to do it right. Alright if you'll give us your name and who you're with the record at their safety Smith Arkansas part of education so we think K. two we actually have four assessments and we'll give districts a choice and the test is an adaptable assessment so they have a fall winter and spring test but is adopted for the students are inter district have a choice between these vendors okay and is not something that we as a state can do or we just can't do efficiently that we want to hire the vendors to do it and so we have not. Not since I've been at the department revisions in education I can't remember a time that we actually created the K. to attest M. K. two assessment before I think we were using Iowa and sat nine at some point okay so this assessment with the adaptability peas school district this is something we went to based on putting a teacher group together and them telling us that they really wanted that immediate formative assessment that they can base their instruction on okay alright thank you thank you Mr thank you. All right see here Messi six thirty since the thirty yes same same area Mister Chesterfield you're recognized thank you Sir could you please tell me why solution tree is so much more than all the others a state compact. I just wanted. Greg Rogers for education the solution trees not an assessment solution tree is the test with. With a professional development that was done on the through the adequacy study that we had. What do they do that cost us thirty seven. Million five hundred thousand dollars that's just the community to amount it's going to it's only the twelve point four million dollars a year that was set aside in adequacy. Is this is just renewal of A we've already had had been going on had going on with the solution tree and have you evaluated them and if so what are the results of the valuation would you please share those with me you don't have to do it today. Missy Wally with director of special projects and we are doing an evaluation it's working right now solution tree is higher using a third party vendor education northwest and because we don't state results this year they're gonna extend that to a poor you're out evaluation because each project school that is in the the pilot program it is a three your stance of their evaluation results will culminate after three years and so with they have had a contract you for how many years now to. At least or is it three we just finished up our third and so you will have those evaluation results available to us when. Well the extended one more year but because we did not have state assessment this year survey for your sister to be the end of next year and so they're not there are no annual evaluations of them. As to whether or not but they're doing is a benefit to the to the students of Arkansas not formal research evaluations but we generate valuation instead of some. Doing formative evaluations instead of some entity that elections yes would you share with me at the at some point in time with those formative evaluation just showing thank you Mr chair thank you they tell. Alright members see no more questions or comments these items will stand is reviewed. Mister chairman the next group group of contracts we take a look at begin on page twenty two these are the in state contracts the first one is FOR D. FH also for us support enforcement and this is for maintenance and support of the child support enforcement system number two education department this is for court reporter services number three on page twenty three is the health department this is for comprehensive statewide media campaign this one is paid for a master tobacco settlement funds and so it deals with tobacco prevention and cessation programs number four is highway department retirement for investment managers meant services and number five also highway and transportation man retirement for actuarial services number six number eight and number eleven are all going to be for DHS and they're all going to be far providing nursing staff of the Arkansas state hospital this is C. N. A.'s LPNs and are in positions number seven is for drug and alcohol safety education program as well as number nine and then number team in is pharmacy services for the Arkansas health center for clients to the division of youth services number twelve on the next page is still up for department Human Services this is for Occupation speech in physical therapy services at the Arkansas state hospital number thirteen is residential treatment services an amendment to that contract number fourteen is an amendment to the contract for counseling services number fifteen is an amendment to a also to a contract for counseling services number sixteen is an amendment DHS has for substance abuse services as well as number seventeen number eighteen is for psychiatric services that are being provided at the con way human development center number nineteen on page thirty is for occupational therapy services at John because of our a human development center number twenties neurology services at Booneville human development center number twenty one with palco is far physical employer agent for self directed financial management services for Medicaid recipients and number twenty two DHS for criminal black background checks. A number twenty three is the insurance department they have a contract there that they're amending to add funding for the Arkansas Medicare beneficiaries in their care givers to navigate and compare options in the Medicare system number twenty four is the nursing board and they have a contract for a nurse investigator and reporting number twenty five oil and gas commission FOR well plugging services numbers twenty six is parks and tourism for ad for ties in projects for the department parks and tourism number twenty seven also parks and tourism this one is for their advertising marketing and public relations for the keep Arkansas beautiful commission number twenty eight a public defender permission a commission this is an amendment adding additional funding to a contract the actual travel expenses of or an individual who works as a dependency neglect are. A parent representation for that in a district thirteen. Number twenty nine is public service commission this one is for consulting firm to address the policy of the interview policy issues as they relate to Arkansas's regulated energy companies of public service commission FOR court reporting services. You a Fort Smith as a contract there for media placement development and production of radio television spot France ads outdoor boards and social media and those are the in state contracts on today's agenda. All right thank you at the senator Teague. You're recognized for a question Sir I'm sorry Mr chairman but it when I'm I'm on page four and five. And there is a number tea and Date pay sixty percent state by sixty three percent a state pay sixty four percent federal page fourteen percent so. When the state pay sixty percent and the BHS the health center place thirty nine percent were those dollars come from. See this the state and the other were using the breakdown center well I'm in Sherman member team you see there's this state sixty percent other thirty nine percent and then on the next one down okay. See I. I'm just trying to understand where some of the money come right this state dollars coming from somebody different. With anybody Human Services marking come up. And these are and I think my real question is these are federal these Kate be paid for with federal dollars in some way. Mark white DHS A yes senator for and you're looking number ten on page four. Your yeah for these are I'm sorry. Go with these are all for you that the Arkansas state hospital or to health center and so they have a mix of funding for the Arkansas health center much their funding is Medicaid they're treated like any other provider that they they charge Medicaid for the treatment of those patients they also have some proper Billings private insurance Billings Medicare other things in those things go into that mix of other in the payment mix fox a state hospital is similar except that the state hospital generally cannot bill Medicaid so most of what they have coming in is either there's a little bit from Medicare be a bit is properly state general revenue insurance but I proceeds and private payments. So. Mister chairman to I'll just think about that a minute I'm not a lot back up okay go ahead thank you the I mark where here I on on number eleven there I'm saying that ninety four thousand and change to amend to extend an apt funded continue providing agency nursing staff including C. N. A.'s Opie and are in positions and the below it the same I'll does not able I mean how many positions or get I am having positions are you all you know hiring out for with that money that's the rate changes from day to day and I can get the most up to date numbers from the state hospital but first we have staffing ratios that have to me meant for the state hospital and it's it depends on how many people we have coming in leaving in full employment how much over time we can get our employees to work and then yes use agency nurses to fill in that gap is that discuss are not working full time they're just they're there P. R. and felons I mean is that yes it is or not because I know with the veteran center veterans nursing home amendment two years ago with you know that taken some money to actually you know that with a third party vendor to fill in some nursing positions from CNH opiates are and because all confined body in the obviously there's a an additional expense there in pain the middle man to provide these services and that's kinda where as like can we not. is usually pretty good paying jobs they are we are on we've gotten better in terms like are in salaries we're still not as competitive on LPN salaries and arson measures in the works drown address that would be more competitive in the healthcare market thanks marking up yes more questions here. Senator rice you're recognized her. I thank last well it was owned by the day order will go as I will go back to it going back in the queue center. Representative Wardlaw you're recognized for a question. Thank you Mr chairman. I'm getting some information hold on one second. Go ahead mark. So. Mister mark my college sent me an email yesterday you AM and they've been trying to get some information since November for their nursing program from the office of long term care and I see you guys are at in these positions in a position of that person is on catastrophic leave is my understanding. My question is is why when we have somebody out and that's the person is supposed to be dealing with the schools to train see an ace to train our IOP and why are we not seen in that phone to someone else that is there to get those questions answered because I've been waiting since November to get a question answered on whether they can certify a class or not we've already had a semester of school and we're going into summer school and I mean that's just unacceptable yes Sir that's not acceptable and and if so what kind of truck leave there should be measures in place to direct folks to someone who can handle that issue if you with the impression first you're talking to all make sure those connections are made and we get those questions answered Our house staff a constituency staff I sent an email over to DHS and I think we're getting some answers today but you guys need to address that when people are out because these folks are waiting on answers and they need to have those answers and that that's truly unacceptable when we're putting the kind of money we put in your agency yes Sir I absolutely agree thank you Mr Martel have a at any policy yeah there to that to address an issue like that or if you do have somebody on leave on that you know what the the appropriate responses and how these issues are going to be handled we do have policies in place to deal with that and I can certainly get copies of those but that's just a standard expectation of a supervisor the if one of your employees is going to be on extended leave is your responsibility to take measures to make sure those responsibilities for field wall that employees out to just I'll lacks a communication then it might make a communication issue but we'll we'll find out all right and appreciate that and house anymore questions there so you're freely for the moment go far okay thank you all right Senator rice B. went back in the queue. Yes Tony if you wanna get some of persons you're towards in. The great. All right Sir well went on them center ricin. All right this year Damon here was for the record. this is David Allen with parks heritage and tourism great David all right center rescue Rickon welcome to proceed with questions thank you and and I it's not necessarily on the Speaker contracts but some things that I'm. The hearing in in the west side of the state that made me. Concerned about how or water process is DO have to utilize monies that are we we review contracts regularly parks and tourism procreate you know your money are you making adjustments in this economy that we're in right now a popular motel. that. I was told again of seed phone call a few weeks ago when the federal land shut down and they just opened back up with that is zero people in a fairly large popular motel that pool many times because we had to shut down the state are you able to adjust any of these contracts or misogyny these increases what you signed a contract. The nearest ever again that we do with the up and down we're going through right now are we just spending money we've already. contracted spent are you able to utilize and adjust no we're able to modify the programs that we've got in place we can stop a program maybe we're doing at regional promotional to try and bring people in from out of state we can turn around and use that money for something else To try and build you know business back to specific areas or specific businesses in this state in fact we're doing that right now that's part of what the get Arkansas ready for business website is the other things that we're doing so we recognize the lot of the our local businesses are suffering because of all these challenges that they're experiencing so we do have a lot of flexibility in the contract were not locked in in terms of specific programs and campaigns and things like that we can stop something and then create a new campaign or new program and then implement on that with the existing contract okay and start to get me this time but I I of having that discussion of that before my hope Senate what you doing business every day you you just modify and and make you dollars count as one of those hoping that you all were able to do even though you sometimes you contracted for a new contract here able to utilize of signs in different ways and certainly don't any of you don't hesitate to get in contact with this because you're here from constituents every day because you're right there on the ground and so if you've got something that you need please don't hesitate to get in touch with me and I can get back with you okay thank you thank you Mr. All right thank you center. All right so that your weapon dismissed or no further questions and so see no further questions or comments these items will stand is reviewed. Mister chairman the next thing we have on our agenda are reports in the first report is under eighty one of these are listed as previously reviewed services contracts one explain these are amendments two existing contracts that have come before this committee and they are being renewed for another year at no material change at the a previously amount of that was reviewed same as before their twenty five total of these contracts that you're seeing on today's agenda that takes this through page twenty five on those particular items on if you have questions about any of those the end of the second report eighty two this is a report of contracts under the threshold of these are going to be contracts that to or for under typically fifty thousand dollars for an annual year there are a number of contracts on their And that takes you through page fourteen us use me yes page fourteen on eighty two so the throughout contract under executed contracts there being reported to this committee and then the final report beginning eighty three these are report of critical emergency procurements there are three on today's agenda the first two are for work for services four daily processing and unemployment insurance forms as well as one for IT software development and support of for the unemployment insurance system during Covidien pandemic and then the third one in this group of critical emergency contract procurement is for the department parks and tourism with grant for Johnson Robinson woods in this is far what David was talking about the Arkansas economy economic recovery task force public education campaign to rebuild consumer employment confidence and your how to return safely to business on those are all the reports on today's agenda for today's committee. All right now no Look at the numbers reach out with some some questions on some of these on E. to so if we can get so my per teacher retirement and then get Dunken here from apers. It's gonna bring them both in together. Mister chairman while we're waiting on them to come in on eighty two page one begin the contract that you're talking about for public employee retirement I believe they're eighteen contracts for them and there are six contracts I believe four that you referenced for that's correct teacher retirement. All right if you all. Give us your name tells your with for the record. Clint road Arkansas teacher retirement system thank. Rod graves Arkansas teacher retirement system all rights sept Senator Hester when Senator rice will recognize you for question first. You're recognized receive a question center us. Thank you Mr. Good afternoon There's a number of things that. Were discussed. I guess what now a couple years ago that the. The legislative body many of us had concerns about can missed room can you. Give us kind of a. That's an option as to what the teacher retirement board process was. alone the selection of six and then we'll see apers went with the eighteen in with the background of you were there. So you know a lot of the questions and concerns at that time could not gonna update to committee. What that process works yes certainly be glad to the of course as we referring to you know the day today and we are to Holly discussed back in two thousand eighteen that with the securities monitoring firm laptop one and. They are and then. We. We get an RFQ in order to you know this last year nor to renew and re evaluate the number of. Securities monitoring firms that we have on our bench in order to do securities monitoring. And the so that are key was released we worked with the office of state procurement in order to create that evaluation criteria a course that a that a violation criteria included the question please disclose all a civil or criminal actions all Malpractice suits all court actions court sanctions regarding ethics or violations like Senator and any procedures that you have in place to protect our to prevent those And that was put in there specifically because of the Leviton situation from two thousand eighteen obviously Leviton sepi Tatian was called into question due to an undisclosed referral fee. That referral fee Provision is exclusively exclusively prohibited now in the six contracts. That is a was recognizes that it was a it to say the least not a best practice and that will not happen again. So that being said Leviton has been a quality firm for eighty R. S. since two thousand nine has successfully litigated many cases for us. See what. What what further questions on that and I expect well and you cover Simon and I wasn't even going to mention a a particular firm but the the firm. But this one you mention is One of seventy seven million dollars of the judgment right and evidently out of the part the the Texas law firm got four million something and I had connections back to Arkansas contacts right and while you know again there may not be in illegalities brought out of that it was just there was enough. concern within the legislature at the time I would just a little surprised the in a can you say this does your board current board no all of that yes yes are absolutely and and and goddess would wonder is apers made a different decision and I don't know if you included just a shot gun decision or or if you like to comment on What was boards thoughts did any of the concerns of the teachers board plan to the the Abrams board decision. Could you comment on that. The. Thank you Mr chairman Duncan Baird Arkansas public employees retirement system the you know our process we we did over multiple board meetings you know I I think to the extent that we did do an RFQ you know we did look at the securities litigators again you know we did go out and go through this process again I I think you know my assumption is I wasn't there at the time but my assumption is that was driven in part by everything that was going on everything that we were hearing and seeing you know act I came in April of last year we put the RFQ out April fifteenth we had over eighteen responses but there were only I eighteen that met kind of the minimum criteria of the R. F. Q. as we went through that process we met with the board in may give them a summary of the responses we came back in August with an objective scoring and we came back in November in the board decided to go ahead and select all eighteen really for us from the beginning as we as we talked about it with the board. You know there was this question of you know what's the right number but we always said you know you could just select eighteen they're all you know and. You know they all met kind of the minimum standard there they'll have varying degrees of experience that that may be beneficial to the system so that was just our approach from the beginning was just the start that you know you could take a lesser number you know we had we had six previously or you could take you know if you wanted to you could take mall and at the end of the day and the board selected all eighteen. Okay I appreciate the. The the the thanks survey again this is retirement board's decisions but that will with the concerns that have been brought up before you know we've had other cases and I came here looking then go back and research came a roll of the dead but we had a a former constitutional officer of in. Some relation I believe to this so litigation monitoring was getting an apartment got excessive campaign donations we've had other things from law firms were ex legislators who are now in legal trouble have been paid retainers and and things to do. So. It wall I realize this system will never be perfect. Everything that we can do to take away any concern that the public has parents is always good to do and and I'm not advocating for anybody to be in our be out it just was somewhat stark committee the two systems doing doing different and Somebody mentioned that the accommodate you may well but missed road was that's the way we've always done it or something to that effect. With the background do you see why there is some concern that. Sometime you might. Moon freshen up the salad are or make a little bigger understand there might be more people to look at what I'm looking for is to. Eliminate. What I call good voice system a lot of times we just had a recent one that cause consternation within the legislature about the singly Pre release only information when the general public would and so it looks like it was a favored. Group and that's that's my point on this and Mr out by see that anybody else going to the Asian. All rights we got plenty more questions feel as a bear with us. All right senator English you're recognized for a question thank you very much I'm right about here I guess one of my questions is is what do these people do do they just go out and look for class action suit to join on to is that their role. So I'm by no means an expert in this and the whole securities litigation but let me give you a high level and we'll go from there up so primarily what these. Of firms do FOR A terraces they monitor our investments and any time there is a loss in our investments you know as a start loss that the analyze each an individual every loss that we have in our investment portfolio analyze it and they determine whether they think that loss was due to some kind of SEC violation like particularly if the the the company that stock plummets on one day was it due to the release of some kind of information that was harmful to the on but yet they should have released it to their stockholders much earlier so that's the kind of analysis that they do that's the monitoring portion of the securities monitoring contracts that is the day to day on ongoing task that they do for a TRS. So all of these eighteen companies with a person the six companies with job chosen I mean that's what they do every day right so in the case of the the stuff we were talking about senator rice was talking about was when the of some some group lab try under somebody went out of house after another group of people who supposedly had been not charging the right interest rates or. what he called from the up financial transactions for overseas type things what did that have to do with us okay so that is a you're referring to the State Street cake right that Leviton is our counsel representing us on that is a class action lawsuit against State Street in which they were exercising some practices that have the maintained of not correct as far as the foreign exchange rates that they were using and it was benefiting state straight as opposed to the the customers that they so that we have stock in St Streator state straight is why State Street is actually be a terrorist custodian bank. So you know that's kind of a the fund is the custodian bank yes ma'am so You know in that relationship is still intact so even though there was this practice that was divvied up not correct to say the least and We have. litigated the issue eight terraces slated to receiver of a settlement as a result of that. In past action but they are still our custodian bank. Service I think Senator rice is kind the appearance it's the some stuff just doesn't pass the smell test result of us I think that maybe you con where he's lady it's harder for me I just have a problem in general when we're going out trying to find class action suits to generate when I thought the idea for you all was to be investing money and making a return for our retirees but you know all the sudden I realize what you all what it what poster doing is they're going out and trying to find a class action suit to be involved in to make money that that just doesn't sound real well to me house. Thank you. Thank you senator English. Speaker shepherd you're recognized for a question Sir thank you Mr chair and this may have been addressed early but could you tell me again why why we have so many and what's the nature of their compensation. So what I'll do I'll jump in first on that you know so so you know when you think about the apers board a per staff we're fiduciary's for our members you know we at apers we hold it you know over seven eight billion dollars of assets on behalf of our members so it's not so much that we have a desire to go and litigate is really just this responsibility to defend the assets of the trust when you look at apers over last probably seven or eight years we probably had one case on average so who I've been with a purse for over a year now we have been engaged in any new cases not because we've said no to a bunch is just because you know the really there's not that much incoming material incoming requests from the attorneys but it but it has just been a a small amount of litigation over the last few years we currently have three active cases you know but I think in our case you know to the question of why so many it's not a desire to litigate anymore you know it's likely that of the eighteen over the next you know five six seven years most of them will not be engaged on our behalf in a case I think you know just based on past experience that that's probably the case but it really just comes down to the process that we went through with the R. F. Q. we issue the or if you had the respondents we evaluated the field and discuss it multiple meetings we just always had this idea that you could you could take all of them if you wanted to and and what they'll do a working on our behalf as though they'll simply evaluate our portfolio look at what we trade and see if there are any cases that that makes sense for apers at what and what's the nature of the compensation for those services the compensation is contingency so there's no you know so we so we don't pay them anything on our behalf ultimately you know if you think about any of these cases essentially what we would do with them is you know if we were. You know for example publicly traded stock obviously a lot of tensions a lot of institutional investors will on that but there might be a reason that a person would be best suited to be the lead plaintiff and if if that is the case we would look at it make a decision on whether or not we want to engage I in that way and you know but ultimately there would be you know a court ordered settlement that would be fees you know through that court process and and so there would there wouldn't be any payment from us and in addition to that bill reimburse us for any expenses that we incur. Got it I have a little bit of follow up. I guess what I'm trying to understand it generally or what from what I've observed And with regard to class actions there are certain firms that have certain expertise they have Dave they know how to litigate certain issues and that's I guess what I was trying to get at is are they all sensually monitoring the same way or is it that each firm has. Maybe has developed or figured out a particular issue that they monitor more closely and I guess the other question is at I know that their situations were were your well I don't know that this is a card maybe you can answer this word where protect the potential cases brought to you and then you for your asked to join in as the lead plaintiff or to become a party plaintiff beyond just becoming a member of the class and I guess I'd be interested know how often that happens. Yeah you know so back to the point about the you know the expertise of the firms you know I I think you know probably the most at simple form of that is you know some of the firms do international litigation others don't you know so that's an example of how they do specialize in you know maybe different countries it might be different specialties of some kind so so once again there wasn't necessarily a harm in a selecting all eighteen firms and and you know in there could be a benefit just depending on how that expertise comes into play you know from from the standpoint of you know whether we're the lead plaintiff or not at you know include may know more about this I I actually haven't been through the experience because we haven't a chosen to litigate anything at this point but but you know the firms that we have currently they send this periodic reports on this is what you on this is this is the time frame in which you traded it these events occurred and therefore this might be a something that you want would want to look at but but I I think from my standpoint it really goes back to our fiduciary responsibility and and really kind of a question of you know maybe we're the only ones who can litigated or maybe with the best position and I and I think that you know we would have to look at our membership look at our trust and determine if we want to move forward with that and my questions I'm just trying to gather information I'm not trying to this to state positively or negatively because I would also assume that hat did you if you were not to do those things there's probably a law firm out there that's looking two with regard to potential class action against it. Your entities or the board itself and so I understand that there's between because those duties that there's a lot that's going to thank you. Speaker. All right senator Cheatham you're recognized for a question Sir thank you Mr chair and trouble for a brief but I do have questions or comments to make I guess then the gentleman both good say both of you and up for the expected a good you do a good job at what you do because one I'm vested in the other one I will be Sunday in a but. Ducking out like the four you've got you have their long but the gel just due to six before did you have I believe I believe we had six a I think that there were a couple that Ordered with other firms but we did have six four I believe probably the last six or seven years good at it so as not distance but this time you decide to go with all right so it really just came out of the process and in the discussions of the board and and like I said you know really from the very beginning we knew that was an option and I do and I appreciate which rosters comments because I'm confirm like everybody here that we want to put a good foot for the state of Arkansas but missed rolled up like you said in your statement said. Another war out here with that we're going to when I kept a close eye on it tried to but when you put it up for bids. Languages change to exclude anything like that from happening again absent Dick with the S. R.. Some of the like rental but you know in. We hear rumors you know when you get calls and things at five four I want you to go out to clarify something for me and I want everything I don't I don't like Senator initially of the other sometimes thinks mail but. But when nurse or if Q. is put out. Is there not a did period when you're not supposed to converse with the company you're representatives at any time during this did prepared on this particular subject did either one of you all converse or talk to someone that was. I come from a company or representing a company. So I'll I'll the answer first the yes the dead period is during the evaluation process and no I did not have any conversations with you know regarding the RFQ now obviously there are lots you know we have day to day business with some of the law firms because we actually had active contracts with them so there was dated a business contact. In that regard but no R. F. Q. related questions answers commentary that I'm aware of during that period. Okay yeah I will say so there there was actually I don't know if you remember back to the probably April or may of last year you know there was some discussion around that you know from that a percent point there were it it you know at one point I don't remember the exact time frame I can get it for you if you needed but there were a number of individuals that reached out to us with questions about how the process would go forward so their firm said submitted you know this is submitted the responses to the R. F. Q. they came to us and said you know tell us how you see this going forward there were some other you know in in some cases or what I would call maybe like incidental text messages in other cases there were You know other people kind of communicating on the subject of the R. F. Q. but you know in each of those at the time Jay wills was our deputy director you know we directed them to J. wills and and including in that meeting you know Jay was present for that and and so everyone was reminded not have the or if you here that you know that that J. wills as the deputy was to be the point of contact on the R. F. Q. so our our temples to direct everyone that way Mister one final playing Remember what it will. The that's this is the. Not a diss slipped my mind but it had to do with. I think you've just a question of fact that A lot it's clear ms back of the I know you. Retirement retirement selected six six farm yes Sir when you put it out to you it was that the only six that met the qualifications that you all know so the six the six that we selected was a longstanding board policy that was established back in two thousand ten that the board had decided that six farms of this nature would be adequate in order to fulfill AT arses needs in this arena it actually had grown over the years when we when we first started this and probably in the late nineties whatever we only had one farm of that limit increased up to three and somewhere I forget two thousand eight two thousand ten or something like that the board just decided to double that limit to six so those that ARE that's already in the policy right now that's been the standing board policy since at least two thousand ten okay so that was always the number that the board said they were going to select. Thank you thank you Mr. Thanks energy to. All rights and I think it's Senator Rapert even see ninety one okay you're recognized for a question thank you Mr chairman I know I'm not actually on the committee so I appreciate you're recognized me a lot of the issues have already been covered and I guess I'll go back to it going off senator rice I've been very very vocal on this issue I can remember the day that Martha Schaffner sitting in that chair right there and and all of that and so I did want to speak up because I too have heard some of the issues got some of the calls and I've been very concerned about this and all of I want to offer Mr chairman is that Any organization any entity is only as good as the people that are running it and that are in it and to be honest with you I think that a lot of the parties that made bad decisions that may be blurred across some of the lines are no longer in those positions I think is the best way to say it and based upon what I've seen in the actions that the border stake in it both of the department for the retirement system's I believe that you you would not say that you're covering the space well enough if you are using the firms that are the experts in the arena. And I will say that is force Leviton is concerned Mr chairman I know I believe that if you look at the record they even objected to the fact that the person on the referral fee really didn't do any work and they were still forced to to go that route and out of out of disclosure for myself just to say because of been so Vocal about this is to is to speak up to say that a lot of those things that were troubling at the time that needed to be dealt with have been dealt with and I just wanted to raise my hand to say that we can't continue punishing affirm itself just because some decisions were made with some people outside of them and it basically drug them into the middle of the mess that was happening right here in Arkansas I think it's the best way is that fair enough to say that you've added that and you've tried to do your due diligence yes yes Sir that is out of a hundred percent that is one of the main reasons we partner with the office of state procurement in order to do this all rescue as we wanted extra eyes on the whole process try to be as transparent as possible and do this in the in the light of day absolutely room thank you Mr chairman for your evaluations thank you center. All right Representative Lowery you're recognized for a question Sir. Thank you Mr chair and I'd I do appreciate you calling on me I'm not on the committee but I do have the perspective on this whole issue Senator rice reference that the legislatures been looking at this issue these issues for some time and I was chairman of joint performance review when we questioned extensively I think for two to three hours the former director of a TRS Mister Hopkins about this I would have to to defer dramatically with the statement that was just made by the senator the individuals at Leviton are still there. They're still there. And I I I think I would like in back to the comment that was made by either Mr bear government or missed road and that did you have a fiduciary responsibility I I would think that in fiduciary responsibility it's not only to protect the investment but it is also to route to protect the reputation and the integrity of the retirement systems that you oversee and I think at the point that the. The the news reports the findings by judge will FOR the State Street case are damning enough of Leviton that it damages the reputation of the retirement systems to continue to participate with them. I'm going to I've been having some eye sight issue so I'm gonna have to pull this phone up pretty close to me. The issue the that has been most concerning about and it does relate to Arkansas but the truth is Leviton never had any relationship with a T. R. S. or apers at all. Until this referral this referral fee this referral was made. In the statement that was made by the firm. That in just a fine trying to justify the referral fee they said we got you a T. R. S. as a client after considerable favors political activity money spent and time dedicated in Arkansas. That is a very damaging indictment I believe by extension to a TRS is reputation. And I think that you protected yourself by saying that we're going to hire. Six other firms or however many other firms that have also have significant expertise so you don't hurt yourself if you separate yourself if you detach yourself from a firm that a federal judge has found in violation of ethical Los. And you went through all of the things that on the on the state that they have to attest that they're that they're not to in certain lawsuits or litigation or whatever my understanding is that one of the questions it's also asked are are there any ethical complaints or violations filed against you and at that time that was true it's no longer true judge Wilson latest order has said that Leviton was in ethical violation. And you know I would just urge the members of this committee of of review subcommittee and the full ale city tour to. As the retirement system's to go back and re review in the light of the latest revelations related to Leviton you've protected yourself by having other firms that can do the same work but I I think the fiduciary responsibility and let me just ask that the question did did do you not agree that a fiduciary responsibility also extends to protecting the the reputation and integrity of the two systems and Dan Yakin both answer individually yeah I mean I you know I don't I mean I think the reputation of the. I think the reputation and the way we conduct ourselves is important you know really from the start when you think about the the R. F. Q. you know this really kind of the approach that we took to the R. S. Q. we wanted to make sure was objective that it's a you know really laid out in very clear terms you know what what we were looking for from a firm what we expect from a firm and so that was really our approach from you know from the from that standpoint a reputation standpoint was to look at the or if Q. and make sure we put in a solid or if Q. out you know as as far as the you know scoring goes we wanted to do the same thing make sure it was objective scoring based on the items that would that were requested in North queue and you know based on both of those but the R. S. Q. and the the scoring you know we we came up with the you know at the end of the day in our case the eighteen firms that we selected all of but you know I do think you know the reputation of us as individuals us as a agency is an important thing. Absolutely I can Kerr as far as the reputation is one of the responsibilities that we as directors at eight and you know as a very very important That being said you know the process in which we knew from the start was gonna include Leviton because they are one of the the biggest firms in this space one of the most experienced and qualified and you know we looked at the the past referral fee situation nobody likes it it was very embarrassing very damaging to both Leviton and a terrace for reputation. However. At the end of the day we have to also ballot set with a fiduciary duty in order to recovered you know investment damages and if we don't use one of you know if we what we determined that that was not a disqualifying factor we. Factor that into the evaluation matrix and they still scored in in house in our top six so in a they were not number one obviously because of this past at the coal situation but the. You know it is a balancing act and we will you know that's what our current that's what the board has decided at this point. Well I just Lowery got one more question we get more members in the I do I do three. If you'll let me just one closing question is is that. Judge Wolfe in in his orders has said that this goes beyond the referral fee and and I know that that's been referred to that well they've said you know we've all decided that no one should do referral fees and as long as they agree to not do the referral fees that were fine with them but the judge says that Leviton and Thornton who they also work with wood there's submissions were replete with false and misleading statements he went on to say that they had in many respects violated federal rules of civil procedure and the related Massachusetts rules of professional conduct I I believe that that information should be made available to your boards in revisiting whether Leviton and if if Thorton is involved that it whether they should be also involved further in in your dealings and I I'd just to would leave leave it at that thank you and and I agree I will certainly make all of that available to the full board and we'll take advisement from there thank you Sir. All rights center rice you're recognized for a question Sir. Something that I had picked up along the way I don't members back when we. Had this couple years ago or not was there legislation passed. years ago that does not require. Procurement. For this I know you know did you did our excuse but you did not have to is that correct. You know really if I remember correctly I think there's a there may not be a mandatory expiration provision I have to go back and look at the law but I I think. To me that was kind of what stood out was a question of whether the you had to restrict your every seven years so so I was under the impression that that you know we for example we could have kept the same firms we had for an indefinite period but I think what we chose to do is go ahead and pre procure those simply because we knew that you know from a public policy perspective that there was great interest in that But I I can definitely take a look at the law then appreciate if you would and and you know and I I do appreciate you going to the to that part of the process but if we need to do something legislatively next session I I would be open to make sure because when we're going I'm looking at the system and that's and under a here you that what you're trying to do to a colleague that takes me one able to be here asks me for Mr road what specifically did the firm that had history. Due to make you feel. It was going to be alright Chris secondhand information that I got from somebody that a dog to a board member supposedly. The like a lot of board members you know you there's things you get thank you dealt in that the board member in same like they were that on top of this century nation you will go of the board was work. I would be very interested in talking to each other board members asked they know as much as represent Lowery as in history on the phone about the Boston. The judge will right but can you tell us what they did to make you. That they have your confidence and also. You after some of it while ago but was there anything in a process it said violations exclude. You know in this process we have stuff thrown out in procurement on technicalities I think that the county's my best not to write word. I'm criteria. All the time million dollar contracts. So did was are not something in that that this rose to the level of. The Jordan thank you need to look at strong. So. So that obviously was a topic and then in the development of the evaluation criteria is this particular criteria and then the question is was it you know any. Action in that category disqualifying or not any western determined that it was not a disqualifying factor it had it was put into the scoring matrix and obviously if you had activity around ethical violations Exeter it would score you lower in that category But again not disqualifying You know it may have actually resulted in many farms being disqualified perhaps so I think that might have been the evaluation process of you know simply count came down to disqualifying or not and if it wasn't as qualified then it there was a low scoring and that Does that help images of love right to the the. I'm not comfortable with it you'll do whatever you want to do I realize but because of past history you know and again I'm not favor more I don't know online probably I've been on the I don't want to miss any of them they're not in about minutes but I just I would hope the board. Add more in depth knowledge then I thank some may have it would. I wish you could open it up at your next meeting if they will look at this again and again that Joe termination but there's concerns alive thank you Mr and. Thank you senator alright members so you know these contracts from the the agenda for reporting and not for review and so as such you know they've already been executed and Mr Rhodin Mr Baird I would tell you all you can get a good deal for we're number the legislative body is on this issue so No I would agree with Senator rice I think might be worth holding revisiting in June however that it's at your purview and I would just say that you get recovery of people are look at this before paying attention you know represented Lowery mentions something regarding job judge of wolves ruling up there and I'm not there's articles out there about you know about that so you were your board members are are certainly able to see that but you know this against Mr limelight so sure you are always understand that and at that members. We are adjourned.