Legislature(2013 - 2014)Anch LIO Conf Rm
11/25/2013 11:00 AM House LEGISLATIVE BUDGET & AUDIT
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| Audio | Topic |
|---|---|
| Start | |
| Approval of Minutes | |
| Executive Session | |
| Other Committee Business | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
LEGISLATIVE BUDGET AND AUDIT COMMITTEE
Anchorage, Alaska
November 25, 2013
11:04 a.m.
MEMBERS PRESENT
Senator Anna Fairclough, Chair
Representative Mike Hawker, Vice Chair
Senator Kevin Meyer
Senator Cathy Giessel
Senator Donald Olson (via teleconference)
Representative Alan Austerman (via teleconference)
Representative Bob Herron (via teleconference)
Representative Andy Josephson
MEMBERS ABSENT
Senator Click Bishop
Representative Kurt Olson
Senator Mike Dunleavy (alternate)
Representative Scott Kawasaki (alternate)
Representative Bill Stoltze (alternate)
COMMITTEE CALENDAR
APPROVAL OF MINUTES
EXECUTIVE SESSION
OTHER COMMITTEE BUSINESS
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
DOUGLAS GARDNER, Director
Legal Services
Legislative Legal and Research Services
Legislative Affairs Agency (LAA)
Juneau, Alaska
POSITION STATEMENT: Responded to questions during discussion of
other committee business.
ACTION NARRATIVE
11:04:45 AM
CHAIR ANNA FAIRCLOUGH called the Legislative Budget and Audit
Committee meeting to order at 11:04 a.m. Senators Fairclough,
Meyer, Giessel, and Olson (via teleconference), and
Representatives Austerman (via teleconference), Herron (via
teleconference), Josephson, and Hawker were present at the call
to order.
^Approval of Minutes
Approval of Minutes
11:06:17 AM
CHAIR FAIRCLOUGH announced that the first order of business
would be the approval of the minutes.
REPRESENTATIVE HAWKER made a motion to approve the minutes of
October 16, 2013. There being no objection, the minutes from
the meeting of October 16, 2013, were approved.
^Executive Session
Executive Session
11:07:05 AM
CHAIR FAIRCLOUGH announced that the committee would next go into
executive session for the purpose of discussing legislative
contracts.
REPRESENTATIVE HAWKER made a motion that the committee move to
executive session under Uniform Rule 22(b)(1) for the purpose of
discussing matters the immediate knowledge of which would
adversely affect the finances of a government unit. There being
no objection, the committee went into executive session at
11:08 a.m.
CHAIR FAIRCLOUGH brought the committee back to order at
12:18 p.m. Senators Fairclough, Meyer, and Olson (via
teleconference), and Representatives Austerman (via
teleconference), Herron (via teleconference), Josephson, and
Hawker were present at the call back to order.
^Other Committee Business
Other Committee Business
12:19:25 PM
REPRESENTATIVE HAWKER, under other committee business, made a
motion that the committee: "authorize the chair, as procurement
officer, to terminate for mutual convenience of both parties,
the contract originally entered into on January 4, 2012, between
PFC Energy LLC, later acquired by IHS, and the Alaska
Legislative Budget and Audit Committee, and as first amended on
May 2, 2012, and as amended a second time on October 16, 2012."
REPRESENTATIVE HAWKER then objected to his motion, and explained
"that PFC Energy has undergone a corporate acquisition - they
have been acquired by the entity known as IHS, [but] IHS has
conflicts of interest with the issues that PFC Energy performs
for us; and that this is a contract rescission that will be ...
mutually acceptable to both parties, recognizing the need to
maintain appropriate independence."
12:20:44 PM
DOUGLAS GARDNER, Director, Legal Services, Legislative Legal and
Research Services, Legislative Affairs Agency (LAA), in response
to a question, characterized the motion as appropriate, adding
that from time to time, contracts are terminated [for] mutual
convenience over issues that come up, and he sees "this" as
simply being one such situation.
REPRESENTATIVE HAWKER withdrew his objection to the motion.
CHAIR FAIRCLOUGH, after ascertaining that there were no other
objections, relayed that the motion passed.
12:21:12 PM
REPRESENTATIVE HAWKER, also under other committee business, made
a motion that the committee: "authorize the chair, as
procurement officer, to enter into contracts with Mr. Janak
Mayer and Mr. Nikos Tsafos for professional services regarding
oil and natural gas fiscal systems and project structures, not
to exceed a total contract amount for each contractor of
$250,000 for professional services to be provided through
January 31, 2015."
CHAIR FAIRCLOUGH asked whether there were any objections to the
motion.
REPRESENTATIVE HAWKER offered his understanding that
[notwithstanding the aforementioned specified date and amount,]
the chair would have the latitude "to work within the monetary
amount and the time frame that's involved."
CHAIR FAIRCLOUGH again asked whether there were any objections
to the motion. Noting that there were none, she relayed that
the motion passed.
REPRESENTATIVE HAWKER added:
Mr. Mayer [and] Mr. Tsafos are currently employed by
PFC; they have performed this work for the legislature
over the past years of the PFC contract. They are
anticipating separating/severing their employment
relationship with PFC. ... They will not be continuing
to work for PFC, are interested in working directly
for the legislature as independent contractors, and we
believe that securing a sole-source contract with them
is well within ... what we call the 040 exempt
procurement procedures available to us, and ... that
this is the decision of this committee that this is
the most appropriate route forward at this time to be
certain that the legislature has adequate, competent,
professional counsel on hand at the beginning of the
... coming legislative session, and ... it's a
decision that involves time being of the essence, and
we need to be moving forward here.
MR. GARNDER, in response to a question, said, "I believe that
the discussion just summarized by Representative Hawker, if you
make that decision, would support a exempt procurement under
legislative procurement policy 040 to move forward according to
the motion."
SENATOR MEYER asked whether travel expenses and living expenses
need to be included in the aforementioned proposed contract
amount.
CHAIR FAIRCLOUGH offered her understanding that she would be
able to negotiate "that" in the contract, and that travel
[expenses] are within her authority to address. She asked,
however, whether "that" should be included in the motion, or
whether clarifying on the record that the proposal before the
committee includes, in addition to the flat-fee amount, the
travel and lodging.
MR. GARDNER said, "I think that the dollar amount is what you've
been authorized to work with, and I think if you can negotiate
those things, it's your prerogative, as a chair, to address
those issues in the context of the dollar amount and the
negotiations with the two parties."
REPRESENTATIVE JOSEPHSON added, "Just the additions ... that a
normal contract would have, that ... the contract is contingent
on ... the work being needed - those sorts of things - that ...
it's anticipatory or anticipated that ... the session will
entail serious and lengthy discussions of a gas line ... and gas
production - those sorts of things."
12:26:11 PM
ADJOURNMENT
There being no further business before the committee, the
Legislative Budget and Audit Committee meeting was adjourned at
12:26 p.m.
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