FISCAL NOTE

Date Requested: January 21, 2020
Time Requested: 12:52 PM
Agency: Health and Human Resources, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
2650 Introduced HB2961
CBD Subject:


FUND(S):

0407 - CENTRAL OFFICE GENERAL ADMINISTRATIVE FUND

Sources of Revenue:

General Fund

Legislation creates:

Increases Existing Expenses



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The purpose of this bill is to permit the Commissioner for the Bureau for Public Health to require a water supply system be equipped with a backflow prevention assembly; requiring the appropriate water utility to install the backflow prevention assembly at the meter; requiring the appropriate water utility to maintain the backflow prevention assembly; and requiring the water utility to provide information relating to maintenance and necessity for any backflow prevention assembly.
    This legislation would result in the need for the department to hire two Environmental Research Specialists to track, monitor, and review community public water system backflow prevention programs; including but not limited to developing a tracking/monitoring database and reviewing records and inspecting backflow prevention programs and devices at public water system locations. In an effort to reduce travel related costs, the office would most likely house one Environmental Research Specialist in its Fairmont District Office and the other in the Charleston central office.
    The Department estimates the cost for this legislation would be $161,925 for FY2021 and $149,125 in FY2022 and ongoing fiscal years.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2020
Increase/Decrease
(use"-")
2021
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 161,925 149,125
Personal Services 0 133,365 133,365
Current Expenses 0 28,560 15,760
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    Estimated Personal Services for FY2021 and ongoing is $133,365 and includes salaries of $93,258 for two Environmental Resource Specialists II ($46,629 x 2.00 FTE) and Fringes and Employee Benefits of $40,107 that include Public Employees Health Insurance Administrative Fee of $100 ($50 per employee x 2 FTEs); Personnel Administrative Fee of $360 ($180 per FTE x 2 FTEs); Health Insurance of $18,912 ($9,456 per FTE x 2 FTEs); Social Security/Medicare of $7,134 ($93,258 x .0765); Retirement of $9,326 ($93,258 x .10); Workers Compensation of $243 ($93,258 x .00261); and WV OPEB Contribution of $4,032 ($2,016 per FTE x 2 FTEs).
    Estimated Current Expense for FY2021 is $28,560 and includes landline telephone service at $1,200 ($50 per month x 12 months x 2.00 FTEs); cell phone service at $1,080 ($45 per month x 12 months x 2.00 FTEs); computer equipment at $2,200 ($1,100 x 2.00 FTEs); office supplies at $400 ($200 per FTE x 2.00 FTEs); backflow prevention training for Environmental Resource Specialists at $3,200 ($800 per training x 2 trainings x 2 FTEs); out-of-state travel for Environmental Resource Specialists to attend backflow prevention training courses at $7,400 which includes airline costs of $2,400 ($600 per trip x 2 trips x 2 FTEs), lodging of $3,500 (5 nights x $175 per night x 2 trips x 2 FTEs), and meals of $1,500 ($75 per diem x 5 days x 2 trips x 2 FTEs); and in-state travel of $13,080 for performing onsite inspections of approximately 150 of the state's estimated 400 community public water systems' backflow prevention activities and devices which includes 130 one-day and 20 two-day trips for estimated average per trip mileage at $8,700 (100 miles x 0.58 per mile x 150 onsite visits), lodging of $2,140 (20 nights x $107 per night), and meals of $2,240 ($56 per diem x 2 days x 20 visits).
    Estimated Current Expense for FY2022 and ongoing fiscal years is $15,760 and includes landline telephone service at $1,200 ($50 per month x 12 months x 2.00 FTEs); cell phone service at $1,080 ($45 per month x 12 months x 2.00 FTEs); office supplies at $400 ($200 per FTE x 2.00 FTEs); and in-state travel of $13,080 for performing onsite inspections of approximately 150 of the state's estimated 400 community public water systems' backflow prevention activities and devices which includes 130 one-day and 20 two-day trips for estimated average per trip mileage at $8,700 (100 miles x 0.58 per mile x 150 onsite visits), lodging of $2,140 (20 nights x $107 per night), and meals of $2,240 ($56 per diem x 2 days x 20 visits).



Memorandum


    It is important to note that the passage of HB2961 would create a financial impact on public water systems by shifting the cost of purchasing, installing, and testing backflow prevention devices from the customer to the public water system. This could result in a financial hardship for small public water systems in that it may be difficult for them to implement the program.
    This proposed legislation would also place more requirements on the Bureau for Public Health, Office of Environmental Health, Environmental Engineering to more directly oversee public water systems' backflow prevention programs. The department's assumption is that this will be more of an oversight role rather than a direct implementation role. If the intention of HB2961 is for the Department to direct implementation, there will be a need for additional staff beyond the Environmental Resource Specialists included herein.
    The Department is unsure if the passage of HB2961 would create a Code or Rule change beyond what is written. There is a technical issue with a requirement of this legislation regarding putting a backflow prevention device next to the water meter. This could create a need to install a building with electricity and heat to keep the device operational; thus, increasing costs to public water systems.



    Person submitting Fiscal Note: Bill J. Crouch
    Email Address: dhhrbudgetoffice@wv.gov