Legislature(2017 - 2018)HOUSE FINANCE 519

05/18/2017 09:00 AM LEGISLATIVE COUNCIL

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Audio Topic
09:00:09 AM Start
09:09:21 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Contract Approval TELECONFERENCED
- Wasilla LIO
- Amendment to Haight & Associates - Capitol
Security Camera System
               ALASKA STATE LEGISLATURE                                                                                       
                  LEGISLATIVE COUNCIL                                                                                         
                     MAY 18, 2017                                                                                             
                       9:00 AM                                                                                                
                                                                                                                              
MEMBERS PRESENT                                                                                                               
                                                                                                                              
Representative Sam Kito, Chair                                                                                                
Senator Bert Stedman, Vice Chair                                                                                              
Representative Matt Claman                                                                                                    
Representative Bryce Edgmon                                                                                                   
Representative Dan Ortiz                                                                                                      
Representative Louise Stutes                                                                                                  
Representative David Eastman, Minority Alternate                                                                              
Senator Lyman Hoffman                                                                                                         
Senator Pete Kelly                                                                                                            
Senator Anna MacKinnon                                                                                                        
Senator Kevin Meyer                                                                                                           
Senator Peter Micciche                                                                                                        
Senator Gary Stevens                                                                                                          
Senator Cathy Giessel, Alternate                                                                                              
                                                                                                                              
MEMBERS ABSENT                                                                                                                
                                                                                                                              
Representative David Guttenberg                                                                                               
Representative Charisse Millett                                                                                               
Representative Harriet Drummond, Majority Alternate                                                                           
                                                                                                                              
AGENDA                                                                                                                        
                                                                                                                              
APPROVAL OF AGENDA                                                                                                            
CONTRACT APPROVALS                                                                                                            
                                                                                                                              
SPEAKER REGISTER                                                                                                              
                                                                                                                              
Tina Strong, Procurement Officer, Legislative Affairs                                                                         
  Agency                                                                                                                      
      9:00:09 AM                                                                                                            
                                                                                                                              
  I. CHAIR SAM KITO called the Legislative Council meeting to                                                               
      order at 9:00 a.m. in Room 519 (House Finance) of the State                                                             
      Capitol. Present at the call were Representatives Edgmon,                                                               
      Ortiz,  Stutes, Eastman (alternate), and  Kito; Senators                                                                
      MacKinnon,  Meyer,  Stevens,  Giessel  (alternate),  and                                                                
      Stedman. Representatives Claman, Guttenberg, and Senators                                                               
      Kelly and  Micciche joined the meeting  after roll call.                                                                
      Representatives Millett  and  Drummond  (alternate) were                                                                
      absent.                                                                                                                 
                                                                                                                              
 II. APPROVAL OF AGENDA                                                                                                     
                                                                                                                              
      VICE CHAIR STEDMAN moved that Legislative Council approve                                                               
      the agenda.                                                                                                             
                                                                                                                              
      The motion was approved without objection.                                                                              
                                                                                                                              
III. CONTRACT APPROVALS                                                                                                     
       a. Wasilla LIO                                                                                                       
       b. Amendment to Haight & Associates - Capitol Security                                                               
         Camera System                                                                                                        
                                                                                                                              
      a. Wasilla LIO                                                                                                        
                                                                                                                              
      TINA  STRONG,  Procurement Officer  for  the  Legislative                                                               
      Affairs Agency, stated that  the current lease  agreement                                                               
      between the Legislative Affairs Agency and Wasilla Station,                                                             
      LLC, for office space currently occupied by the MatSu LIO                                                               
      and Legislators' district offices in Wasilla, is  due to                                                                
      expire July 31, 2017, with  no renewal options available.                                                               
      Under AS  36.30.083, there is  a provision where  we may                                                                
      extend a  real property lease for  up to  10 years if  a                                                                
      minimum cost  savings of at  least 10  percent below the                                                                
      market rental value of the real property at the time of the                                                             
      extension would be  achieved on  the rent due  under the                                                                
      lease. The market rental value  must be established by a                                                                
      real estate broker's opinion of the rental value or by an                                                               
      appraisal of the rental value.                                                                                          
                                                                                                                              
      She  said  the  Agency  contracted  with  Bond  Filipenko                                                               
      Commercial Properties, LLC to determine the market rental                                                               
      value of the property; we received their fair market rental                                                             
      analysis and it  is their opinion that the market rental                                                                
      value of the property with a full service lease is between                                                              
      $2.40 and  $2.50 per square foot.  Per AS 36.30.083, the                                                                
      Agency offered Wasilla Station, LLC a  rate of $2.16 per                                                                
      square foot for a five-year lease extension with five one-                                                              
year renewal options at our option. Wasilla Station, LLC,                                                                     
accepted the  offer. She recommended Legislative Council                                                                      
approve the  lease extension for the  MatSu office space                                                                      
located at 600 E Railroad Avenue for a price of $2.16 per                                                                     
square foot.                                                                                                                  
                                                                                                                              
DISCUSSION FOLLOWED, in response to Senator Mackinnon who                                                                     
noted  that  the list  of  occupants  included a  former                                                                      
Legislator no longer in office. The  list was updated to                                                                      
remove  Representative Gattis  and   add  Representatives                                                                     
Talerico and Johnson. Representative Eastman stated that                                                                      
the space was functional, he had received no complaints and                                                                   
saw no reason to change office space at this time.                                                                            
                                                                                                                              
9:05:07 AM                                                                                                                  
VICE CHAIR STEDMAN moved that Legislative Council approve                                                                     
Lease Extension with  Wasilla Station, LLC for  the time                                                                      
period August 1, 2017 through July 31, 2022 in the amount                                                                     
of $179,574.84 per year (excluding CPI-U adjustments each                                                                     
July 1).                                                                                                                      
                                                                                                                              
The motion passed without objection.                                                                                          
                                                                                                                              
b. Amendment to Haight  & Associates -  Capitol Security                                                                      
  Camera System                                                                                                               
                                                                                                                              
MS. STRONG addressed this item as well. She  said at the                                                                      
June 26, 2015, Legislative Council meeting, Representative                                                                    
Bob  Herron as  Chair  of  the Security  Subcommittee of                                                                      
Legislative Council received  approval to  contract with                                                                      
Haight & Associates to design and prepare contract bidding                                                                    
documents for the Capitol Security Camera System  and to                                                                      
provide  construction administration in  the  amount  of                                                                      
$54,280. Haight & Associates is  seeking approval for an                                                                      
additional $5,015 to continue construction administration                                                                     
through August 31,  2017. The construction administration                                                                     
includes the camera configurations and system programming                                                                     
during installation. They  are working closely with  our                                                                      
camera system contractor Alcan Electrical &  Engineering,                                                                     
Inc.                                                                                                                          
                                                                                                                              
She noted that  attached to the memo each  member had in                                                                      
their packet was Haight & Associates price summary for this                                                                   
request. There are existing Security Camera Capitol funds                                                                     
available for this amendment to  the Haight & Associates                                                                      
contract.                                                                                                                     
                                                                                                                              
In  response to  a  question by  the  Chair, Ms.  Strong                                                                      
confirmed that the security camera contract was to install                                                                    
      cameras in all the Capitol Complex buildings, although none                                                             
      are yet  installed. Alcan has been working on wiring and                                                                
      waiting until adjournment before they  begin installation                                                               
      work. Haight &  Associates was contracted to oversee the                                                                
      project and respond to Alcan questions as they arise. In                                                                
      response to a follow-up question by the Chair, Ms. Strong                                                               
      confirmed that Haight & Associates were spending more time                                                              
      than anticipated responding to Alcan Electrical's questions                                                             
      and management of the project; they believed the additional                                                             
      funds requested today would carry them through the end of                                                               
      their part of this project. In response to a question by                                                                
      Representative Stutes,  Ms.  Strong  confirmed that  the                                                                
      project was scheduled for completion by August 31, 2017,                                                                
      and neither contractor anticipated needing additional funds                                                             
      prior to completion.                                                                                                    
                                                                                                                              
      9:08:53 AM                                                                                                            
      VICE CHAIR STEDMAN moved that Legislative Council approve                                                               
      an amendment to  the Haight & Associates Contract in the                                                                
      amount of $5,100.                                                                                                       
                                                                                                                              
      The motion passed without objection.                                                                                    
                                                                                                                              
      There  being no  further business  before the  committee,                                                               
      Legislative Council adjourned at 9:10 a.m.                                                                              
                                                                                                                              
      9:09:21 AM                                                                                                            
                                                                                                                              
                                                                                                                              

Document Name Date/Time Subjects
170518 Agenda Revised.pdf JLEC 5/18/2017 9:00:00 AM
Amendment to Haight Associates Contract.pdf JLEC 5/18/2017 9:00:00 AM
MatSu Lease Extension.pdf JLEC 5/18/2017 9:00:00 AM