Legislature(2015 - 2016)BILL RAY CENTER 208

05/26/2016 04:00 PM LEGISLATIVE BUDGET & AUDIT

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Audio Topic
04:03:40 PM Start
04:03:55 PM Executive Session
05:12:00 PM Oil and Gas Consultants
05:15:17 PM Other Committee Business
05:15:58 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Location Change from Room 230 --
EXECUTIVE SESSION - Procurement
- Oil and Gas Consultants
Other Committee Business
(Testimony by Invitation Only)
                    ALASKA STATE LEGISLATURE                                                                                  
             LEGISLATIVE BUDGET AND AUDIT COMMITTEE                                                                           
                          May 26, 2016                                                                                          
                           4:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Hawker, Chair (via teleconference)                                                                          
Representative Kurt Olson                                                                                                       
Representative Lance Pruitt                                                                                                     
Representative Steve Thompson                                                                                                   
Representative Sam Kito III                                                                                                     
                                                                                                                                
Senator Anna MacKinnon, Vice Chair                                                                                              
Senator Cathy Giessel                                                                                                           
Senator Bert Stedman                                                                                                            
Senator Click Bishop (via teleconference)                                                                                       
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mark Neuman (alternate)                                                                                          
Representative Scott Kawasaki (alternate)                                                                                       
Senator Pete Kelly (alternate)                                                                                                  
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Paul Seaton                                                                                                      
Representative Lara Reinbold                                                                                                    
Representative David Guttenberg                                                                                                 
Representative Bryce Edgmon                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
EXECUTIVE SESSION                                                                                                               
OIL AND GAS CONSULTANTS                                                                                                         
OTHER COMMITTEE BUSINESS                                                                                                        
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
No witnesses to record                                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
4:03:40 PM                                                                                                                    
                                                                                                                                
VICE  CHAIR  ANNA MACKINNON  called  the  Legislative Budget  and                                                             
Audit Committee  meeting to order  at 4:03 p.m.   Representatives                                                               
Olson,   Pruitt,   Thompson,   Kito    III,   and   Hawker   (via                                                               
teleconference),  and  Senators  Giessel,  Stedman,  Bishop  (via                                                               
teleconference), Hoffman, and MacKinnon were  present at the call                                                               
to order.                                                                                                                       
                                                                                                                                
4:03:55 PM                                                                                                                    
                                                                                                                                
SENATOR MACKINNON  announced that  Janak Mayer, the  Alaska State                                                               
Legislature's consultant on oil and  gas fiscal terms, is leaving                                                               
enalytica, Inc.;  therefore, enalytica, Inc., has  terminated its                                                               
contract  with the  legislature,  effective May  31,  2016.   She                                                               
announced  the first  order of  business  would be  to move  into                                                               
executive  session to  discuss contract  matters  related to  the                                                               
changes in the legislature's oil and gas consultants.                                                                           
                                                                                                                                
^Executive Session                                                                                                              
                       Executive Session                                                                                    
                                                                                                                                
4:05:53 PM                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL made  a motion  under Uniform  Rule 22(b)(1)  to                                                               
move to executive  session for the purpose  of discussing matters                                                               
that  the  immediate  knowledge of  would  adversely  affect  the                                                               
finances of  a government  unit.  There  being no  objection, the                                                               
committee went into executive session at 4:06 p.m.                                                                              
                                                                                                                                
5:11:00 PM                                                                                                                    
                                                                                                                                
VICE CHAIR MACKINNON brought the  committee back to order at 5:11                                                               
p.m.   Representatives  Olson, Thompson,  Pruitt,  Kito III,  and                                                               
Hawker  (via  teleconference),  and  Senators  Stedman,  Giessel,                                                               
Hoffman, Bishop (via teleconference),  and MacKinnon were present                                                               
at the call back to order.                                                                                                      
                                                                                                                                
^Oil and Gas Consultants                                                                                                        
                    Oil and Gas Consultants                                                                                 
                                                                                                                                
5:12:00 PM                                                                                                                    
                                                                                                                                
VICE CHAIR  MACKINNON stated that  during executive  session, the                                                               
committee  had  discussed  two contracts  related  to  enalytica,                                                               
Inc., and Janak Mayer being  unavailable to the legislature as of                                                               
May  31,  2016, and  whether  the  Legislative Budget  and  Audit                                                               
Committee would like  to enter into an  arrangement going forward                                                               
to  ensure people  are  available to  the  legislature to  answer                                                               
questions that  may arise within  the next six-nine months.   She                                                               
explained that in  order to continue services  with Nikos Tsafos,                                                               
who  would  advise  the  legislature on  issues  related  to  the                                                               
commercialization of North Slope natural  gas, "we" would have to                                                               
enter into a new contract with enalytica, Inc.                                                                                  
                                                                                                                                
5:12:48 PM                                                                                                                    
                                                                                                                                
SENATOR GIESSEL made  a motion that the chair  of the Legislative                                                               
Budget  and  Audit Committee  be  authorized  to  enter in  to  a                                                               
contract with enalytica,  Inc., at a cost not  to exceed $60,000,                                                               
and also  that the committee  approve an exemption  under Section                                                               
040(a)(1) of the legislative procurement  procedures.  She stated                                                               
that  the contract  would  be exempt  from  the solicitation  and                                                               
Section  145  contract  award  requirements  of  the  legislative                                                               
procurement  procedures.   There being  no objection,  the motion                                                               
passed.                                                                                                                         
                                                                                                                                
5:13:27 PM                                                                                                                    
                                                                                                                                
VICE  CHAIR MACKINNON  stated that  during executive  session the                                                               
committee had also discussed whether  to enter into a contract at                                                               
this time  with a  new consultant to  provide information  on oil                                                               
and  gas fiscal  terms.   She relayed  that enalytica,  Inc., had                                                               
suggested  consultant  Paul  Morgan,  from  Stratas  Advisors,  a                                                               
division of Hart Energy Publishing LLLP.                                                                                        
                                                                                                                                
5:13:47 PM                                                                                                                    
                                                                                                                                
SENATOR GIESSEL made  a motion that the chair  of the Legislative                                                               
Budget  and  Audit Committee  be  authorized  to  enter in  to  a                                                               
contract  with Hart  Energy Publishing  LLLP,  at a  cost not  to                                                               
exceed  $180,000,   and  also  that  the   committee  approve  an                                                               
exemption under Section 040(a)(1)  of the legislative procurement                                                               
procedures.   She stated that  the contract would be  exempt from                                                               
the solicitation  and Section 145 contract  award requirements of                                                               
the  legislative   procurement  procedures.     There   being  no                                                               
objection, the motion passed.                                                                                                   
                                                                                                                                
5:14:22 PM                                                                                                                    
                                                                                                                                
VICE CHAIR  MACKINNON explained  that each  of the  two contracts                                                               
would expire  on January  1, 2017; they  are intended  to augment                                                               
the previous contracts  in place.  She noted that  there had been                                                               
a conversation  about possible  needs in  Alaska's future  as the                                                               
state  moves toward  the commercialization  of  North Slope  gas.                                                               
She asked Senator Giessel to read related intent for the record.                                                                
                                                                                                                                
5:14:52 PM                                                                                                                    
                                                                                                                                
SENATOR GIESSEL stated:                                                                                                         
                                                                                                                                
     The  committee's  intent  is  that  the  chair  of  the                                                                    
     Legislative Budget  and Audit  Committee enter  into an                                                                    
     RFP  [request   for  proposals]  process   to  evaluate                                                                    
     interest   by  qualified   consultants  for   long-term                                                                    
     advising  on international  oil and  gas fiscal  terms,                                                                    
     commercialization, and taxation issues.                                                                                    
                                                                                                                                
^Other Committee Business                                                                                                       
                    Other Committee Business                                                                                
                                                                                                                                
5:15:17 PM                                                                                                                    
                                                                                                                                
VICE  CHAIR  MACKINNON  announced  that because  of  the  current                                                               
Fourth  Special  Session of  the  Alaska  State Legislature,  the                                                               
Legislative Budget  and Audit Committee  did not yet have  a date                                                               
set for its next meeting, but  would schedule one as needed.  She                                                               
noted there  had been  a request  for documents  distributed [for                                                               
the executive session] to be turned back in to the committee.                                                                   
                                                                                                                                
5:15:58 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There  being  no  further  business  before  the  committee,  the                                                               
Legislative Budget  and Audit Committee meeting  was adjourned at                                                               
5:16 p.m.                                                                                                                       

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