Legislature(2009 - 2010)

08/10/2009 04:00 PM Senate LEC

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                           AUGUST 10, 2009                                                                    
                                                                                                                                
The  Legislative Council  meeting   was  called to order at 4:25 p.m. by  Representative  John  Harris,                         
                                     nd                                                                                         
Chairman, in the Anchorage LIO 2 Floor Conference Room and via teleconference.                                                  
                                                                                                                              
1. ROLL CALL                                                                                                                  
                                                                                                                                
The  roll was  taken.  In attendance   were  Council   members:   Representatives   Harris,  Chenault,                          
Coghill, Gatto, Stoltze, Wilson  and  Guttenberg;  Senators  Davis, Ellis, Hoffman,  Olson,  Stedman,                           
and Stevens.                                                                                                                    
                                                                                                                                
Staff present: Varni, Bitney, Clothier, Cook, Finley, Gullufsen, Johnston, Schofield, and Strong.                               
                                                                                                                                
Others present: Alice Rogoff, Chair, Alaska House, New York (AHNY)                                                              
                                                                                                                                
2. APPROVAL OF JULY 13, 2009 MINUTES                                                                                          
                                                                                                                                
Senator   Davis  moved    that Legislative  Council   approve   the  minutes   of the  July  13,  2009                          
Legislative Council meeting as presented and corrected.                                                                         
                                                                                                                                
The motion passed with no objections.                                                                                           
                                                                                                                                
3. DELL - MICROSOFT ENTERPRISE AGREEMENT APPROVAL                                                                             
                                                                                                                                
Senator Stedman and Representative Stoltze joined the meeting at this time.                                                     
                                                                                                                                
Senator  Davis  moved   that Legislative Council  approve  the expenditure  of $87,957.29   to Dell for                         
the Legislature's portion of the annual Microsoft Enterprise Agreement for software assurance.                                  
                                                                                                                                
Curtis Clothier, Information  Services  Manager   for the Legislative Affairs Agency,   stated that this                        
item  is a renewal of the Legislature's  portion of an  agreement   between  the State and  Microsoft.                          
This agreement   allows  the Legislature to put Microsoft   operating system  and  Office software  on                          
all of our computers   -  desktops  and  laptops.  The  agreement   gives  us a lower  cost than  what                          
we'd  get  commercially   and  was  an  enterprise agreement   with  the entire State  of Alaska.   He                          
went  on  to  explain  that, in addition  to the better  rate, the agreement   provides   for software                          
downloads,   our  own   account   manager,   training  vouchers,  as  well  as the  benefit  of Office                          
software which one can find on the Information Services Intranet page.                                                          
                                                                                                                                
Mr.  Clothier noted  that in previous years we  made  this payment   to the State of Alaska Executive                           
Branch   and  they  paid the  vendor;  however,   this year  the Department    of Administration    has                         
requested  that we   reimburse  the  vendor  directly, hence   the necessity  of securing  Legislative                          
Council approval.                                                                                                               
                                                                                                                                
Discussion followed.                                                                                                            
                                                                                                                                
The motion passed with no objections.                                                                                           
                                                                                                                                
4. TOM STEWART LOB CARPET INSTALLATION                                                                                        
                                                                                                                                
This item was removed from the agenda.                                                                                          
                                                                                                                              
5.   ALBERT      JUDSON       V.   GARY      STEVENS       AND     MIKE      CHENAULT         LEGAL                           
    REPRESENTATION                                                                                                            
                                                                                                                                
Tam   Cook,   Director  of Legal   Services,  stated that her  office was   notified by  the  Attorney                          
General's  office  on Friday,  August   7, of a  complaint  that had  been  slipped  under  their door                          
which   stated  that an  individual   wanted   to  sue  the Legislature's   Presiding  Officers.  This                          
individual is not represented  by an attorney. This  individual requested  an expedited  consideration                          
of his motion.  Due  to the nature of the motion,  Legal  Services contacted  both  Presiding Officers                          
and obtained  permission   to represent them.  Ms.  Cook  stated that her office prepared  a Motion  to                         
Dismiss and filed that motion before the end of the day, Friday, August 7.                                                      
                                                                                                                                
Ms.  Cook   stated that Legal Services  requested  approval  of Legislative  Council:  (1) to ratify all                        
actions  taken  to date and  (2) to  get permission   to continue  to  represent any  Legislators  and                          
legislative entities who  may   continue  to be embroiled   in the lawsuit  if those individuals  wish                          
representation  from  the Legal  Services Division.  Legal  Services  does not normally   get involved                          
in litigation without the approval of Legislative Council.                                                                      
                                                                                                                                
Discussion followed.                                                                                                            
                                                                                                                                
Senator  Davis   moved    that the  Legislative  Council  direct  the Legal   and  Research   Services                          
Division   to provide   representation  at  the  request  of  any  legislative  entity, Legislator,  or                         
legislative staff member   who  is now  or later named   in the case challenging  the special  session:                         
Albert Judson v. Gary Stevens and Mike Chenault, Case No. 9JU-09-7920.                                                          
                                                                                                                                
The motion passed with no objections.                                                                                           
                                                                                                                              
6. ALICE ROGOFF PRESENTATION - ALASKA HOUSE                                                                                   
                                                                                                                                
Chairman   Harris  introduced  Alice  Rogoff,  Chair  of the  nonprofit Alaska   House   in New   York                          
City, and  informed   Council   members    that she  was  here  to make   a presentation  regarding   a                         
funding request for the Alaska House, New York (AHNY).                                                                          
                                                                                                                                
Ms.  Rogoff  began  her  presentation  stating that Alaska  House  New   York  acts as  an embassy   to                         
showcase   the cultural and  trade opportunities  of Alaska  as well as to highlight  issues important                          
in Alaska with national and international media, lawmakers, and industry.                                                       
                                                                                                                                
Ms. Rogoff showed a two minute informational video to members.                                                                  
                                                                                                                                
Ms.  Rogoff   stated that  she has  invested  an  enormous    amount   of time  and  money    into this                         
organization.  She  advised  Council   members   that  she has  begun  conversations   with  Governor                           
Parnell's administration;  she has been  speaking  with  (Commissioner)    Emil  Notti (Department   of                         
Commerce,    Community    and  Economic    Development)   and  has every  reason  to believe that there                         
will be an item in the DCCED FY 2011 budget for this project.                                                                   
                                                                                                                                
Ms.  Rogoff  went  on  to say that, in the mean  time, she  needs  help keeping  the  doors open.  Ms.                          
Rogoff  is requesting  Legislative  Council  approval  to make   available funding  from  the  State of                         
Alaska  to continue  the efforts of Alaska  House   New   York.  The  request  was  for $875,000.  She                          
believes  this outlay to  be a very  good   investment  because   the organization   is already seeing                          
returns on what they have been doing with their own limited funds.                                                              
                                                                                                                                
Ms. Rogoff completed her presentation and offered to take questions at this time.                                               
                                                                                                                                
Representative   Wilson   commented    that  in considering  this  proposal  she  recalled what   other                         
nonprofits  requesting funding  are asked  such as: (1) is the project sustainable, (2), how much  has                          
the organization  done  for itself, (3) how  much  fundraising  has  the organization  done,  (4) what                          
entities have they gone  to for funding  requests, among   other things.  Representative  Wilson  then                          
asked Ms. Rogoff if she had approached the federal government with her funding request.                                         
                                                                                                                                
Ms.  Rogoff  replied that she  has not yet but will approach   Senator  Murkowski    as soon  as she is                         
able.                                                                                                                           
                                                                                                                                
Representative   Wilson  then  asked if Ms.  Rogoff  had  gone  to the twelve  Native  corporations  to                         
ask for any money and, if so, what was the response.                                                                            
                                                                                                                                
Ms.  Rogoff  responded   that the most  success  they've had  so far is with ASRC    which  intends  to                         
use AHNY    to do  some  cultural training for their employees. She  stated that she has also talked to                         
CIRI  regarding  cultural tourism.  Ms.  Rogoff  stated she  will be continuing  those  conversations;                          
but  between   these two  organizations   the best  response  she  has received   is an interested  but                         
noncommittal response.                                                                                                          
                                                                                                                                
Representative  Wilson   noted that the organization  started with funds  from  an anonymous    donor.                          
She asked Ms. Rogoff what her initial plan was for sustainability.                                                              
                                                                                                                                
Ms.  Rogoff  stated that her plan was  that it would be very easy  to raise something  in the nature of                         
$1,000,000   a  year from   financial services  firms  who,  among    them,  were  collecting  at least                         
$150,000,000   a year in fee income   from managing    the Permanent   Fund; Mike   Burns  encouraged                           
her to go seek  that from  them. Ms.  Rogoff  pointed  out that unfortunately,  what  has happened   in                         
the last six months, as members   know,  is that those firms have  been basically "blown   up" and  the                         
pieces  have  been  reorganized  so  it hasn't been  possible  to trace where   the employee    is who                          
worked   on  the Permanent   Fund   a year ago  who   may  still work  on it but is accountable  to an                          
entirely different organization.                                                                                                
                                                                                                                                
Ms.  Rogoff  assured  Council   members   that she  will continue  to track every  one  of those  leads                         
down.   She went   on to state that it would  be  enormously   helpful  in raising money   from  those                          
organizations  if it could be done in such a way  that the people we  solicit from understood  that the                         
AHNY     is not  just a nonprofit  but  a nonprofit  with  an  official "good   housekeeping   seal  of                         
approval"  from  the state government.   A  financial relationship  between  AHNY     and  the State of                         
Alaska  would   be hugely  beneficial as it is a more  powerful  message   to potential donors  if they                         
think there are a Governor and a state legislature behind them.                                                                 
                                                                                                                                
Representative   Wilson  asked  Ms.  Rogoff   what  other entities has she  approached   with  funding                          
requests since the economic downturn.                                                                                           
                                                                                                                                
Ms.  Rogoff   stated that they  had  submitted  approximately    75  grant requests  and  were  turned                          
down   by  every  one  of them,  almost  all for the sole  reason  that these organizations  were   not                         
making any grants to new entities whom they hadn't funded before.                                                               
                                                                                                                                
Representative   Wilson   asked  how   much   money    Ms.  Rogoff   had  raised  to date  from   other                         
entities, particularly how much effort has gone out and how much funding has come in.                                           
                                                                                                                                
Ms.  Rogoff  stated that she has learned  personally  that, like the Alaska Manufacturing   Extension                           
Partnership  that was  created  in the State of  Alaska,  the best possible  kind of  way  to build an                          
organization  with  sustainability is as a private partnership with  public money   from  both  federal                         
and  state sources, perhaps   even  the State of  New   York  and  she  believes that is what  AHNY                             
should strive for.                                                                                                              
                                                                                                                                
Ms.  Rogoff   stated that approximately    75  grant applications  went   out to  foundations  and  30                          
requests to individuals; of those 30  the organization received  a few hundred   thousand.  As a result                         
of the difficulty in finding  funding,  AHNY    has  scaled back  significantly the  art program.  Ms.                          
Rogoff  stated that she  fully expects  businesses  to be a part of the public-private  partnership  in                         
underwriting any number of educational outreach programs.                                                                       
                                                                                                                                
Chairman   Harris  noted  that having an  organization  come  directly to Legislative  Council  with  a                         
funding   request is  not the  normal   process. He   wanted   members    to have   an opportunity   to                         
understand   what  this organization  was  trying to accomplish.   He  informed  Ms.  Rogoff   that the                         
Council  was  not going  to take any  action at this time.  In addition, Chairman   Harris pointed  out                         
that many  members    were  uncomfortable   with  the idea of approving   funding  for an organization                          
that is  located  outside  Alaska  and  that  by  allowing  Ms.   Rogoff   to make   her  presentation                          
members would have a better awareness.                                                                                          
                                                                                                                                
Chairman   Harris told Ms.  Rogoff  he is pleased that she is talking to the Parnell Administration  as                         
they are really the correct entity to make a budget request.                                                                    
                                                                                                                                
Senator  Stedman   expressed  concerned  about  allocating public monies   for an organization outside                          
the State, and discomfort about using state monies for funding nonprofits in general.                                           
                                                                                                                                
Senator  Stedman   also  stated that there needs  to be  a conversation   with  Mike  Burns   from  the                         
Permanent    Fund  at  LB&A    regarding   the proposal  to  request  funding  from   permanent   fund                          
investment  firms. He  said he  was  uncomfortable   about possible  ethical issues if the State would                          
be seen as pressuring these firms to make contributions to different nonprofits.                                                
                                                                                                                                
Ms.  Rogoff   responded   that in  her conversations   with  Mike   Burns  he  made   it clear that, in                         
speaking  with  his ethics advisors,  he would   in no  way  be  involved  in any  conversations  with                          
these investment   firms;  that it was perfectly  appropriate  for someone   not  affiliated with state                         
government to approach these firms for donations, but that he would not be involved in any way.                                 
                                                                                                                                
Senator  Ellis noted that the first item in the handout  is "Trade/Business  advocacy   services", and                          
that the  State has  had  trade offices  located  in various  places  around  the  world  through   the                         
Department   of Commerce.     He  asked  if this would be  the non-state government    staff of Alaska                          
House;   and whether   she  envisioned  them   providing  trade and  business  advocacy   services  the                         
same way the state does at offices in Korea or Japan for example.                                                               
                                                                                                                                
Ms.  Rogoff  said that was  correct and  that she would   go further in stating that if the will of the                         
Legislature  or the Executive  Branch  is to fund AHNY     as a trade and business  advocacy   office it                        
would  be  perfectly appropriate  there be some   of their own  employees   put there  for exactly that                         
purpose. She said there was no pride of authorship in the way this concept was implemented.                                     
                                                                                                                                
Discussion followed.                                                                                                            
                                                                                                                                
Senator  Davis  asked  in what   ways  the organizations   listed in the handout  are partnering  with                          
AHNY.                                                                                                                           
                                                                                                                                
Ms. Rogoff cited examples of partnerships in the discussion that followed.                                                      
                                                                                                                                
Representative Stoltze remarked that the proposal for AHNY is very well thought out.                                            
                                                                                                                                
Senator  Olson  asked  Ms.  Rogoff   if she was  making   a one-time  funding  request  and  requested                          
more detail on her financial plan for the next several years.                                                                   
                                                                                                                                
Ms.  Rogoff  responded   that there are three years left in the current lease. She went  on to say she                          
imagines  that, in the future, the State will determine the future of this organization. Her goal is to                         
continue  working   on obtaining  private  funding  - initially in matching  grants and  eventually  to                         
the point that the organization is funded solely with private funds.                                                            
                                                                                                                                
Senator  Olson   said that his constituents  will  see this request  and  will want  to  know   what  a                         
resident of Alaska is getting out of funding an organization in New York.                                                       
                                                                                                                                
Ms.  Rogoff   stated that the  Alaska  Native   Arts Foundation    has cumulatively   purchased   over                          
$1,000,000   of Native art since they've been  in business  as a foundation.  That  is direct economic                          
stimulus  and  is why   the Manufacturing    Extension   Partnership   funds  the organization's  core                          
overhead.  The  more   Native  art sold, the more  Native  art the foundation  purchases.  That  is the                         
primary mission of the Alaska Native Arts Foundation.                                                                           
                                                                                                                                
Ms.  Rogoff   said that the impact   of cultural tourism,  while  less defined,  has the  potential for                         
greater value in real dollars in the long term. Ms.  Rogoff  believes that there is a huge opportunity                          
to generate income for Alaskans through this venture.                                                                           
                                                                                                                                
Chairman   Harris thanked  Ms.  Rogoff  and  suggested  that she (1) expand  her proposal  to highlight                         
the benefit of investing in her organization,  (2) meet with  as many  Council  members    as possible,                         
and  (3) encourage  supporters  of AHNY     to also meet  with  Council  members.    Chairman   Harris                          
concluded by stating that the Council would re-visit her request at a future meeting.                                           
                                                                                                                                
7. OTHER BUSINESS                                                                                                             
                                                                                                                              
There was no other business.                                                                                                    
                                                                                                                                
The meeting adjourned at 5:15 p.m.                                                                                              

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