Legislature(2015 - 2016)BILL RAY CENTER 208

07/12/2016 08:00 AM LEGISLATIVE COUNCIL


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08:05:19 AM Start
08:55:40 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Rescheduled from 7/11/16 --
Contract Approvals:
- Office of Victim's Rights Lease Extension
- Mat-Su Office Space Lease Extension
- Juneau Storage Lease Extension
- Fairbanks Office Space RFP - EXECUTIVE SESSION
Other Committee Business:
- Juneau Community Foundation Property Transfer
Approval
                      ALASKA STATE LEGISLATURE                                                                                
                        LEGISLATIVE COUNCIL                                                                                   
                           JULY 12, 2016                                                                                      
                              8:05 AM                                                                                         
                                                                                                                              
                                                                                                                              
      MEMBERS PRESENT                                                                                                         
                                                                                                                                
      Senator Gary Stevens, Chair                                                                                               
      Representative Bob Herron, Vice Chair                                                                                     
      Senator John Coghill                                                                                                      
      Senator Lyman Hoffman                                                                                                     
      Representative Mike Chenault                                                                                              
      Representative Craig Johnson                                                                                              
      Representative Sam Kito                                                                                                   
      Representative Charisse Millett                                                                                           
      Representative Mark Neuman                                                                                                
                                                                                                                                
      MEMBERS ON TELECONFERENCE                                                                                               
                                                                                                                                
      Senator Charlie Huggins                                                                                                   
      Senator Anna MacKinnon                                                                                                    
      Senator Peter Micciche                                                                                                    
                                                                                                                                
      MEMBERS ABSENT                                                                                                          
                                                                                                                                
      Senator Kevin Meyer                                                                                                       
      Senator Lesil McGuire, alternate                                                                                          
      Senator Cathy Giessel, alternate                                                                                          
      Representative Mike Hawker                                                                                                
      Representative Steve Thompson, alternate                                                                                  
      Representative Harriet Drummond, alternate                                                                                
                                                                                                                              
      AGENDA                                                                                                                  
                                                                                                                                
      CONTRACT APPROVALS                                                                                                        
      OTHER COMMITTEE BUSINESS                                                                                                  
                                                                                                                                
      SPEAKER REGISTER                                                                                                        
                                                                                                                                
      Tina Strong, Procurement Officer, Legislative Affairs                                                                     
         Agency                                                                                                                 
      Pam Varni, Executive Director, Legislative Affairs Agency                                                                 
      Amy Skilbred, Executive Director, Juneau Community                                                                        
         Foundation                                                                                                             
   Reed Stoops, Board Member, Juneau Community Foundation                                                                       
      Ken Koelsch, Mayor, City and Borough of Juneau                                                                            
                                                                                                                                
     8:05:19 AM                                                                                                               
                                                                                                                                
 I. CHAIR GARY STEVENS called the Legislative Council meeting                                                                 
     to order at 8:05 a.m. in Room 208 of the Bill Ray Center.                                                                  
     Present  at  the  call  were  Senators  Stevens, Coghill,                                                                  
     Hoffman,  and, alternate  member; Representatives Herron,                                                                  
     Chenault, Johnson, Kito, Millett, Neuman, and Thompson and                                                                 
     Drummond,    alternate    members.    Participating   via                                                                  
     teleconference  were   Senators  Huggins,  MacKinnon  and                                                                  
     Micciche (who joined the meeting during Executive Session).                                                                
     Senators Meyer, and Giessel and McGuire, alternate members,                                                                
     and  Representatives Hawker,  and Thompson  and Drummond,                                                                  
     alternate members, were absent.                                                                                            
                                                                                                                                
II. CONTRACT APPROVALS                                                                                                        
     a. Office of Victims' Rights Lease Extension                                                                             
     b. Mat Su Office Space Lease Extension                                                                                   
     c. Juneau Storage Lease Extension                                                                                        
     d. Fairbanks Office Space RFP - Executive Session                                                                        
                                                                                                                              
     a. Office of Victims' Rights Lease Extension                                                                             
                                                                                                                              
     CHAIR STEVENS asked for a motion to approve the OVR Lease                                                                  
     Extension.  Discussion followed regarding  the  OVR Lease                                                                  
     Extension.                                                                                                                 
                                                                                                                              
     TINA  STRONG,  Procurement Officer  with  the  Legislative                                                                 
     Affairs Agency, stated  that lease renewal No. 3  for the                                                                  
     OVR's Anchorage office space expired on June 30, 2016, and                                                                 
     are  requesting approval of lease  renewal No. 4  for the                                                                  
     period  July 1,  2016, through June  30, 2017;  and is  a                                                                  
     standard, routine lease renewal.                                                                                           
                                                                                                                                
     Discussion followed regarding whether OVR could move into                                                                  
     the  Wells Fargo building currently under negotiation for                                                                  
     purchase. It was clarified that the OVR would not be a good                                                                
     fit for the Anchorage legislative offices and would like to                                                                
     remain near the Court Building downtown.                                                                                   
                                                                                                                                
     A roll call vote was taken.                                                                                                
                                                                                                                                
     YEAS:   Stevens,  Herron,   Coghill,   Hoffman,  Huggins,                                                                  
             MacKinnon, Chenault, Johnson, Kito, Millett, Neuman                                                                
                                                                                                                                
     NAYS: None                                                                                                                 
                                                                                                                                
     The motion passed 11-0.                                                                                                    
                                                                                                                                
      b. Mat Su Office Space Lease Extension                                                                                  
                                                                                                                                
      8:08:50 AM                                                                                                              
      VICE  CHAIR HERRON moved that Legislative Council approve                                                                 
      Renewal No. 5 Lease Extension with Wasilla Station, LLC, in                                                               
      the amount of $185,670.36 for August 1, 2016, through July                                                                
      31, 2017.                                                                                                                 
                                                                                                                                
      MS. STRONG said that Renewal No. 4 for Mat Su office space                                                                
      expires on  July 31, 2016, and  approval is requested for                                                                 
      Renewal No. 5 for the period August 1, 2016, through July                                                                 
      31, 2017; and this is a standard, routine lease renewal.                                                                  
                                                                                                                                
      A roll call vote was taken.                                                                                               
                                                                                                                                
      YEAS:   Stevens,  Herron,   Coghill,   Hoffman,  Huggins,                                                                 
              MacKinnon, Chenault, Johnson, Kito, Millett, Neuman                                                               
                                                                                                                                
      NAYS: None                                                                                                                
                                                                                                                                
      The motion passed 11-0.                                                                                                   
                                                                                                                                
      c. Juneau Storage Lease Extension                                                                                       
                                                                                                                                
      8:10:08 AM                                                                                                              
      VICE  CHAIR HERRON moved that Legislative Council approve                                                                 
      Renewal  No. 1  for  the  lease extension  with Goldstein                                                                 
      Improvement Company in the  amount of $37,619.16, for the                                                                 
      period of July 1, 2016, through June 30, 2017.                                                                            
                                                                                                                                
      MS. STRONG said  the Agency's lease for Juneau storage at                                                                 
      the Goldstein Building on Seward Street expired on June 30,                                                               
      2016, and approval is requested for Renewal No. 1 for the                                                                 
      period of  July 1,  2016, through the period of  June 30,                                                                 
      2017; and this is a standard, routine lease renewal.                                                                      
                                                                                                                                
      Discussion followed regarding what is stored in the space,                                                                
      the  need  for  storage to  conform  to  record retention                                                                 
      schedules,  and  that each  section  of  the  Legislature,                                                                
      including Legislative Audit, use  that space for storage.                                                                 
      Additional discussion  regarding consolidating storage at                                                                 
      other facilities, noting that the Goldstein space is much                                                                 
      less  expensive than other storage  and more  conveniently                                                                
      located than some of the other; as well as the fact that it                                                               
      is a full service lease, which includes utilities.                                                                        
                                                                                                                                
      A roll call vote was taken.                                                                                               
                                                                                                                                
     YEAS:   Stevens,  Herron,   Coghill,   Hoffman,  Huggins,                                                                  
             MacKinnon, Chenault, Johnson, Kito, Millett, Neuman                                                                
                                                                                                                                
     NAYS: None                                                                                                                 
                                                                                                                                
     The motion passed 11-0.                                                                                                    
                                                                                                                                
  d. RFP 614 - Fairbanks Office Space (Executive Session)                                                                     
                                                                                                                                
     CHAIR STEVENS noted that  Proposals are confidential until                                                                 
     Legislative Council awards the contract, so Council would                                                                  
     be going into Executive Session to review the proposals and                                                                
   then come out of Executive Session to take any action.                                                                       
                                                                                                                                
     8:15:00 AM                                                                                                               
     VICE  CHAIR HERRON moved that Legislative Council go into                                                                  
     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 and                                                                  
     22(B)(3), discussion  of a  matter that  may, by  law, be                                                                  
     required  to be  confidential. I  ask that  the following                                                                  
     individuals remain in the  room: Pam Varni, Doug Gardner,                                                                  
     Katrina  Matheny,   Linda  Hay,  Tina   Strong,  and  any                                                                  
     legislative staff  working for  Council members.  We also                                                                  
     welcome any Legislators that are not on Legislative Council                                                                
     to remain in the room.                                                                                                     
                                                                                                                                
     There  being no objection,  Legislative Council went into                                                                  
     Executive Session.                                                                                                         
                                                                                                                                
     8:25:04 AM                                                                                                               
     Legislative Council came out of Executive Session.                                                                         
                                                                                                                                
     8:26:28 AM                                                                                                               
     VICE CHAIR HERRON moved that Legislative Council award RFP                                                                 
     614 for  the Fairbanks LIO and Fairbanks delegation office                                                                 
     space to  Alaska USA Federal Credit Union for a five year                                                                  
     lease  term with  five, one-year renewals at  $16,940 per                                                                  
     month with annual CPI increases.                                                                                           
                                                                                                                                
     A roll call vote was taken.                                                                                                
                                                                                                                                
     YEAS:   Stevens,  Herron,   Coghill,   Hoffman,  Huggins,                                                                  
             MacKinnon, Micciche, Chenault, Johnson, Kito,                                                                      
             Millett, Neuman                                                                                                    
                                                                                                                                
     NAYS: None                                                                                                                 
                                                                                                                                
     The motion passed 12-0.                                                                                                    
III. OTHER COMMITTEE BUSINESS                                                                                                 
      a. Juneau Community Foundation Property Transfer Approval                                                               
                                                                                                                                
      CHAIR STEVENS said that this item regards property that has                                                               
      become available at 524 Main  Street. He noted he did not                                                                 
      seek out this property but rather that the Juneau Community                                                               
      Foundation called to let him know that they had purchased                                                                 
      the  building at 524  Main Street and  were interested in                                                                 
      transferring ownership to the Legislature.                                                                                
                                                                                                                                
      PAM  VARNI, Executive Director of the Legislative Affairs                                                                 
      Agency,  said  that  the  property  under discussion  was                                                                 
      assessed  several years  ago  at $820,000;  the operating                                                                 
      expenses are $9,570 annually; and there is an apartment on                                                                
      the property that has rented for $1,750 per month and would                                                               
      generate revenue for  the Legislature. She said  that the                                                                 
      City  has transferred property to the  Legislature in the                                                                 
      past and, with that transfer the Legislature had to put in                                                                
      quite a bit of money to renovate. With this property, there                                                               
      are no renovations needed as it was completely remodeled in                                                               
      2006.  She said  some of  the Juneau Community Foundation                                                                 
      members were present to speak to this item.                                                                               
                                                                                                                                
      AMY  SKILBRED, Executive Director of the Juneau Community                                                                 
      Foundation, said  that a  fund  was established  with the                                                                 
      Juneau Community Foundation called Capitol Fund, which is                                                                 
      to  be used to support the Capitol Complex. This property                                                                 
      became available, it's  in line with the  Capitol Fund to                                                                 
      purchase property like this and see if it  can be used by                                                                 
      the State for the Capitol.                                                                                                
                                                                                                                                
      REED  STOOPS,  Board   Member  of  the  Juneau  Community                                                                 
      Foundation, said that the purpose of the acquisition is to                                                                
      make it available to the State. It could be made available                                                                
      to the Legislature or to the  Administration. He said that                                                                
      as members may have noticed from the tour of the building                                                                 
      they took  yesterday that the building is well-suited for                                                                 
      receptions, for meetings, for  office space, for storage,                                                                 
      etc.;  he  said  it  is  just  generally useful  as  it's                                                                 
      convenient  to the  Capitol  and has  parking, and  would                                                                 
      provide space for  official functions. He said the Juneau                                                                 
      Community Foundation was willing to donate it to whatever                                                                 
   branch of state government is interested in using it.                                                                        
                                                                                                                                
      KEN KOELSCH, Mayor of  Juneau, said that one of the eight                                                                 
      goals of the City Assembly is to be a better capital city.                                                                
      Some of the ways we attempt to do that is to televise the                                                                 
      legislative  session   through  KTOO,  through  acquiring                                                                 
      property that can  be used by the State  to make Juneau a                                                                 
     better capital; and this was one that was acquired through                                                                 
     the Juneau Community Foundation and it would be a very good                                                                
     fit  for  the Legislature and  he  hopes that  Legislative                                                                 
     Council would consider it.                                                                                                 
                                                                                                                                
     CHAIR STEVENS asked Mayor  Koelsch if he had any concerns                                                                  
     about the property being removed from the tax rolls.                                                                       
                                                                                                                                
     MAYOR  KOELSCH said that  if it  is removed from  the tax                                                                  
     rolls, he thought it would be a win because it was one more                                                                
     part that  Juneau is able to serve as  a capital city and                                                                  
     that is one of their goals. Even though it is taken off the                                                                
     tax rolls, it fulfills the goal of being a better capital                                                                  
     city.                                                                                                                      
                                                                                                                                
     REPRESENTATIVE  KITO  added that  before  the  house  was                                                                  
     remodeled back into a  residence in 2006, it did serve as                                                                  
     law offices. He thought it would be pretty easy to have it                                                                 
     work as  offices again. It does have the benefit of being                                                                  
     close to the Capitol and does have some large, open spaces                                                                 
     that could be used for gatherings, etc., that we don't have                                                                
     a lot of space for at the Capitol Building.                                                                                
                                                                                                                                
     REPRESENTATIVE  NEUMAN  said  while  he  appreciated  the                                                                  
     generous offer, he said for  himself and for folks in the                                                                  
     Mat-Su, he considers this more an  expansion of government                                                                 
     and he cannot support it at this time.                                                                                     
                                                                                                                                
     Discussion followed regarding the structural integrity of                                                                  
     the  building. The Juneau Community Foundation (JCF) said                                                                  
     they   reviewed  the  engineering  report  done   by  R&M                                                                  
     Engineering and that report would be made available for the                                                                
     Legislature. The JCF offered to take back the property at                                                                  
     any  point if the Legislature found any problems with the                                                                  
     property  in the  future. There was  one caveat  that the                                                                  
     Legislature would not be  able to sell the building; that                                                                  
     they  would  return it  to  the JCF  at  no  cost to  the                                                                  
     Legislature.                                                                                                               
                                                                                                                                
     CHAIR STEVENS noted that the Legislative Council needed to                                                                 
     make a decision or allow the JCF to offer the building to                                                                  
     the Executive Branch.                                                                                                      
                                                                                                                                
     MR.  STOOPS  said  that from  the  JCF's  perspective, he                                                                  
     confirmed that  they would like  a decision sooner rather                                                                  
     than later as it  was not their intent to hold on to this                                                                  
     property. It  has been offered to  both the Executive and                                                                  
     Legislative Branch and  whoever decides first that they'd                                                                  
     like the property will get it.                                                                                             
                                                                                                                                
      MS.  SKILBRED,  in  response  to  a  question by  Senator                                                                 
      MacKinnon, said the property was put in an LLC, is earning                                                                
      money that  wasn't connected with the non-profit, so they                                                                 
      actually would be  paying property tax to the  City if it                                                                 
      remained under their ownership.                                                                                           
                                                                                                                                
      SENATOR MACKINNON put on  the record that she  has been a                                                                 
      tenant in  the apartment over the garage for  the last 10                                                                 
      years. She said she had nothing to do with the transaction                                                                
      or  the JCF and asked the  Chair if she needed to  make a                                                                 
      formal  request to be  recused from  voting on  this even                                                                 
      though she does not benefit financially.                                                                                  
                                                                                                                                
      CHAIR STEVENS said that if Senator MacKinnon chose not to                                                                 
      vote, that was acceptable.                                                                                                
                                                                                                                                
      SENATOR MACKINNON, noting how close  this property was to                                                                 
      the campus of buildings owned by the Legislature, said she                                                                
      really wanted to thank Juneau, the JCF, the Mayor, and all                                                                
      those associated with the Foundation; however, it was just                                                                
      not  a  good time  for  the  Legislature to  take on  the                                                                 
      responsibility of another building.                                                                                       
                                                                                                                                
      CHAIR  STEVENS said  that some  positive aspects of  this                                                                 
      property are the garages, which would allow the storage of                                                                
      vans  that are  now stored  out at  Lemon Creek  when the                                                                 
      Legislature is not  in session. It would allow additional                                                                 
      parking, perhaps for up to six vehicles; it would allow for                                                               
      receptions which are now held in the Speaker's Office, as                                                                 
      well as Lunch-and-Learns; and also four or five offices on                                                                
      the second floor of the building.                                                                                         
                                                                                                                                
      SENATOR HOFFMAN noted that if the apartment was rented out                                                                
      on a  long-term basis, it would bring in enough revenue to                                                                
      cover the annual operating costs, maintenance, etc., so he                                                                
      didn't see  a downside  to the acquisition at  this time,                                                                 
      especially  when  the  options  are  wide  open  for  the                                                                 
      Legislature. At this point, the positives strongly outweigh                                                               
      the negatives.                                                                                                            
                                                                                                                                
      MR.  STOOPS, in response to  a question by  Representative                                                                
      Millett, said that the property was offered simultaneously                                                                
      to both the  Legislature and the Executive Branch; he said                                                                
      Guy  Bell with DOA toured the  building yesterday and the                                                                 
      Governor may or may not look at it. The JFC is indifferent                                                                
      to which branch takes it as long as it will be part of the                                                                
      Capitol Complex.                                                                                                          
                                                                                                                                
     MS. VARNI, in response to a request for clarification from                                                                 
     the Chair, said that  annual operating costs were provided                                                                 
     and totaled $9,570. Depending on the amount of rent charged                                                                
     and whether it would be rented just during session or year-                                                                
     round,  it would be  a revenue generator, off-setting the                                                                  
     operating expenses. Rents could generate at least $10,000                                                                  
     annually, depending on how we rent the space.                                                                              
                                                                                                                                
     CHAIR  STEVENS asked, in response to  Vice Chair Herron's                                                                  
     concerns, that if the Legislative Council agreed to accept                                                                 
     the property from the JFC, and then  serious mechanical or                                                                 
     other  issues were  discovered, would it  be  possible to                                                                  
     return the property to the JFC.                                                                                            
                                                                                                                                
     MS. SKILBRED confirmed that the property could be returned                                                                 
     to  the  Foundation at any  time  without penalty to  the                                                                  
     Legislature.                                                                                                               
                                                                                                                                
     Discussion followed concerning issues with being a landlord                                                                
     and rental rates differing between session-only and year-                                                                  
     round. Additional discussion regarding public perception at                                                                
     a  time  of fiscal  hardship and  whether the  Legislature                                                                 
     actually needs this property regardless of the convenience                                                                 
     of the location.                                                                                                           
                                                                                                                                
     8:53:31 AM                                                                                                               
     VICE  CHAIR HERRON moved that Legislative Council approve                                                                  
     the transfer of the property located at 524 Main Street to                                                                 
     the Legislative Council.                                                                                                   
                                                                                                                                
     After clarification that a yes vote  was a vote to accept                                                                  
     the property, a roll call vote was taken. Senator MacKinnon                                                                
     recused herself from the vote.                                                                                             
                                                                                                                                
     YEAS: Stevens, Hoffman, Micciche, Kito                                                                                     
                                                                                                                                
     NAYS:   Herron,  Coghill,   Huggins,  Chenault,  Johnson,                                                                  
             Millett, Neuman                                                                                                    
                                                                                                                                
     The motion failed 4-7.                                                                                                     
                                                                                                                                
     MR. STOOPS said that if  the Executive Branch declined the                                                                 
     property and the Foundation rented it out for a year, they                                                                 
     would  check  back  with Legislative  Council to  see  if                                                                  
     interest had grown.                                                                                                        
                                                                                                                                
     There being no  further business before the committee, the                                                                 
   Legislative Council meeting was adjourned at 8:55 a.m.                                                                       
     8:55:40 AM                                                                                                               

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