Legislature(2017 - 2018)SENATE FINANCE 532

03/10/2017 12:00 PM LEGISLATIVE BUDGET & AUDIT

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Audio Topic
12:02:54 PM Start
12:03:44 PM Approval of the Agenda
12:04:05 PM Approval of Minutes
12:04:17 PM Executive Session
12:27:18 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Teleconference <Listen Only> --
EXECUTIVE SESSION - Contract Amendment
                    ALASKA STATE LEGISLATURE                                                                                  
             LEGISLATIVE BUDGET AND AUDIT COMMITTEE                                                                           
                         March 10, 2017                                                                                         
                           12:02 p.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Gary Stevens, Chair                                                                                                     
Senator Anna MacKinnon                                                                                                          
Senator Cathy Giessel                                                                                                           
Senator Click Bishop                                                                                                            
Senator Lyman Hoffman                                                                                                           
Senator Natasha von Imhof (alternate)                                                                                           
                                                                                                                                
Representative Andy Josephson, Vice Chair                                                                                       
Representative Scott Kawasaki                                                                                                   
Representative Paul Seaton                                                                                                      
Representative Ivy Spohnholz                                                                                                    
Representative Jennifer Johnston                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Dan Ortiz (alternate)                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
APPROVAL OF THE AGENDA                                                                                                          
APPROVAL OF THE MINUTES                                                                                                         
EXECUTIVE SESSION                                                                                                               
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
No Witnesses to Record                                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
12:02:54 PM                                                                                                                   
                                                                                                                                
CHAIR  GARY  STEVENS  called the  Legislative  Budget  and  Audit                                                             
Committee  meeting to  order  at 12:02  p.m.   Senators  Stevens,                                                               
Hoffman, Giessel,  Bishop, MacKinnon,  and Von  Imhof (alternate)                                                               
and Representatives  Josephson, Johnston, Spohnholz,  Seaton, and                                                               
Kawasaki were present at the call to order.                                                                                     
                                                                                                                                
12:03:44 PM                                                                                                                   
                                                                                                                                
^Approval of the Agenda                                                                                                       
                     Approval of the Agenda                                                                                 
                                                                                                                                
CHAIR STEVENS  announced that the  first order of  business would                                                               
be approval of the agenda.                                                                                                      
                                                                                                                                
12:03:53 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  made  a motion  that  the  Legislative                                                               
Budget and  Audit Committee approve  the agenda.  There  being no                                                               
objection, it was so ordered.                                                                                                   
                                                                                                                                
^Approval of Minutes                                                                                                          
                    Approval of the Minutes                                                                                 
                                                                                                                                
12:04:05 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE JOSEPHSON made a motion  to approve the minutes of                                                               
the Legislative Budget and Audit  Committee of February 23, 2017.                                                               
There  being  no  objection,  the minutes  from  the  meeting  of                                                               
February 23, 2017 were approved.                                                                                                
                                                                                                                                
^Executive Session                                                                                                            
                       Executive Session                                                                                    
                                                                                                                                
12:04:17 PM                                                                                                                   
                                                                                                                                
CHAIR STEVENS announced that the  next order of business would be                                                               
to move into Executive Session.                                                                                                 
                                                                                                                                
12:04:30 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  made a  motion  to  move to  executive                                                               
session under  Uniform Rule 22(b)(1), discussion  of 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 12:04 p.m.                                                                                       
                                                                                                                                
12:04:49 PM                                                                                                                   
                                                                                                                                
The committee took an at ease from 12:04 p.m. to 12:23 p.m.                                                                     
                                                                                                                                
12:23:37 PM                                                                                                                   
                                                                                                                                
CHAIR STEVENS brought the committee back to order.                                                                              
                                                                                                                                
12:23:49 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  made  a motion  that  the  Legislative                                                               
Budget and Audit  Committee approve an amendment  to the contract                                                               
with Castle  Gap Advisors, LLC, in  the amount of $65,000,  for a                                                               
not  to  exceed  amount  of   $100,000,  and  an  exemption  from                                                               
solicitation requirements  of sections  [AS 36.30] .030  and .145                                                               
of the Alaska Legislative Procurement Procedures.                                                                               
                                                                                                                                
CHAIR STEVENS asked if there was any discussion.                                                                                
                                                                                                                                
12:24:17 PM                                                                                                                   
                                                                                                                                
SENATOR  GIESSEL stressed  that the  committee members  were very                                                               
cognizant of  the current  fiscal times.   She reported  that the                                                               
proposed amendment for an additional  $65,000 to the contract had                                                               
been carefully  considered.   She pointed  out that  Mr. Ruggiero                                                               
[Castle Gap  Advisors] was  charging an hourly  rate of  $375 and                                                               
his daughter  was charging $250  an hour.  She  acknowledged that                                                               
the additional  $65,000 to the contract  would "buy approximately                                                               
100  hours of  his  time."   She  expressed  her  concern that  a                                                               
previous  authorization of  $35,000  had been  spent  in about  a                                                               
week.   She  offered  her  belief that  $6,000  of that  previous                                                               
authorization had  been related to  travel and lodging  in Juneau                                                               
during that week.  She  reported that the committee had discussed                                                               
"the careful  use of his  time; that, as questions  arise, groups                                                               
of legislators would meet together  to maximize the efficiency of                                                               
using this rather  expensive consultant."  She  emphasized that a                                                               
consultant  with  this  expertise   was  necessary  to  give  the                                                               
legislature a global picture of the oil industry.                                                                               
                                                                                                                                
12:25:45 PM                                                                                                                   
                                                                                                                                
CHAIR STEVENS  clarified that the aforementioned  cost for travel                                                               
and lodging was $3000.                                                                                                          
                                                                                                                                
12:25:57 PM                                                                                                                   
                                                                                                                                
A roll call vote was  taken.  Senators Stevens, Hoffman, Giessel,                                                               
Bishop, and  MacKinnon, and Representatives  Josephson, Johnston,                                                               
Spohnholz, Seaton, and  Kawasaki voted in favor  of the amendment                                                               
to the  contract with Castle  Gap Advisors, LLC.   Therefore, the                                                               
amendment to the contract passed by a vote of 10 yeas - 0 nays.                                                                 
                                                                                                                                
CHAIR  STEVENS reiterated  that every  attempt would  be made  to                                                               
control the  consultant's time, that  the meetings would  only be                                                               
with  committees  and not  with  individual  legislators, and  to                                                               
ensure  that the  legislature  received its  money's  worth.   He                                                               
added that  any assistance  with the  RFP (Request  for Proposal)                                                               
for long term future consultant contracts would be accepted.                                                                    
                                                                                                                                
12:27:18 PM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There  being  no  further  business  before  the  committee,  the                                                               
Legislative Budget  and Audit Committee meeting  was adjourned at                                                               
12:27 p.m.                                                                                                                      

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