Legislature(2013 - 2014)HOUSE FINANCE 519

04/03/2014 07:30 AM Senate LEGISLATIVE COUNCIL


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07:32:23 AM Start
07:38:48 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Teleconference <Listen Only> --
Anchorage LIO
Alaska State Capitol Seismic Retrofit and
Exterior Renovation
                          APRIL 03, 2014                                                                                      
                             7:30 AM                                                                                          
   MEMBERS PRESENT                                                                                                            
                                                                                                                                
   Representative Mike Hawker, Chair                                                                                            
   Senator Peter Micciche, Vice Chair                                                                                           
   Representative Mike Chenault                                                                                                 
   Representative Max Gruenberg                                                                                                 
   Representative Lance Pruitt                                                                                                  
   Representative Bill Stoltze                                                                                                  
   Senator John Coghill                                                                                                         
   Senator Mike Dunleavy                                                                                                        
   Senator Dennis Egan                                                                                                          
   Senator Charlie Huggins                                                                                                      
   Senator Kevin Meyer                                                                                                          
   Senator Gary Stevens                                                                                                         
                                                                                                                                
   MEMBERS ABSENT                                                                                                             
                                                                                                                                
   Representative Craig Johnson                                                                                                 
   Representative Peggy Wilson                                                                                                  
                                                                                                                              
   AGENDA                                                                                                                     
                                                                                                                                
   ANCHORAGE LIO                                                                                                                
   ALASKA STATE CAPITOL SEISMIC RETROFIT AND EXTERIOR RENOVATION                                                                
                                                                                                                                
                                                                                                                                
 7:32:23 AM                                                                                                                   
  I. CHAIR MIKE HAWKER called the Legislative Council meeting to                                                              
     order  at 7:30 a.m.  in room 519 of  the State Capitol.   Present                                                          
     at  the call were Representatives  Hawker and Chenault;  Senators                                                          
     Micciche,  Coghill, Dunleavy, Egan, Huggins, Meyer,  and Stevens.                                                          
     Representatives  Stoltze and  Pruitt joined  the meeting at  7:34                                                          
     a.m.  and Representative  Gruenberg  joined the  meeting at  7:37                                                          
     a.m.                                                                                                                       
                                                                                                                                
 II. ANCHORAGE LIO                                                                                                            
                                                                                                                                
     CHAIR  HAWKER said, after a  series of meetings,  the Legislative                                                          
     Council  last met on  March 17, 2014  to consider two  proposals:                                                          
     one  was to  introduce legislation  to consider authorizing  AHFC                                                          
     to   purchase  the   Anchorage  Legislative  Information   Office                                                          
     building  and the  other was  to approve  the next  phase of  the                                                          
     Alaska  State Capitol  Seismic Retrofit  and Exterior  Renovation                                                          
     project.  We previously had presentations and  discussion on both                                                          
     items  and  were  ready  for committee  action  when  the  Senate                                                          
     President  asked that  we delay  for seven  working days so  that                                                          
     Vice  Chair Micciche and I  could discuss the proposals  with our                                                          
     respective  memberships. At  the end of  that period, the  Senate                                                          
     again  asked for a  delay to  have more time  to think about  the                                                          
     proposals.                                                                                                                 
                                                                                                                                
     He  said while he believes  that the merits of the  Anchorage LIO                                                          
     purchase  speak for themselves, he recognizes that  the events of                                                          
     the  past two  weeks  have proven  that some  legislators do  not                                                          
     have  time to become sufficiently comfortable  with the proposal,                                                          
     especially  in the last few waning 10 days of  session when other                                                          
     mission-critical  issues  are competing  strongly for  everyone's                                                          
     attention.                                                                                                                 
                                                                                                                                
     With  those  considerations,  he  said  he  would  withdraw  from                                                          
     consideration  by  this  committee  any  further  action  on  the                                                          
     proposed  introduction of legislation  that would approve  AHFC's                                                          
     purchase of the Anchorage Legislative Office building.                                                                     
                                                                                                                                
III. ALASKA STATE CAPITOL SEISMIC RETROFIT AND EXTERIOR RENOVATION                                                            
                                                                                                                                
     CHAIR  HAWKER asked  Vice Chair Micciche  for a motion  regarding                                                          
     this  item, which  was discussed  in detail  at the last  meeting                                                          
     and  was  outlined in  the  March 14,  2014  letter form  Jensen,                                                          
     Yorba, Lott, Inc. that we had on record at the last meeting.                                                               
                                                                                                                                
     VICE  CHAIR  MICCICHE thanked  the Chairman  and  said, with  the                                                          
     Chair's  permission,  before  he made  the  motion he  wanted  to                                                          
     acknowledge  the Chair's  efforts in  bringing the Anchorage  LIO                                                          
     purchase  proposal before  the Council.  We asked  and the  Chair                                                          
    complied, and for  that he is grateful and  he hopes the rest of                                                            
    Council is grateful.  He said that both  he and the Chair joined                                                            
    the  Council for  the first  time this  session and  inherited  a                                                           
    problem that has  been kicked down the road  for years. He did a                                                            
    little  research with  trusted  staff  and there  are  pages and                                                            
    pages of things  that have happened and  what we've seen is that                                                            
    many of  the folks  that are poking  at the  deals we're talking                                                            
    about today  were associated with  LIO deals of  the past, where                                                            
    they shrank away  because of the "sticker  shock" of the expense                                                            
    of continuing to operate in downtown Anchorage, Alaska.                                                                     
                                                                                                                                
    Meanwhile,  costs were  going up  and  leases were  running out.                                                            
    It's clear  that none  of us are  comfortable with  where we are                                                            
    and with this deal. It's  expensive. Here are the facts: the LIO                                                            
    houses half  of the Legislature  for nine months  of the year in                                                            
    an area with the most  expensive real estate in the state. If we                                                            
    want to  do something different  in the future,  we can consider                                                            
    the  expansive prairies  of  mid-town  in which  to  relocate  or                                                           
    smaller spaces,  but where  we are is  where we  are. We stopped                                                            
    the buck; it's  politically expensive to  be the place where  the                                                           
    buck stops,  but it's  the right  thing to  do. He  said he very                                                            
    much appreciates the Chair's  work, at the Council's request, to                                                            
    research and present  an option to purchase  the building.  It's                                                            
    clear that we're very  busy this session and Legislators are not                                                            
    comfortable with  the amount of time they  have to evaluate this                                                            
    purchase, so  he supports  its removal  from the  agenda at this                                                            
    time.                                                                                                                       
                                                                                                                                
7:37:26 AM                                                                                                                    
    Vice  Chair Micciche  then moved  that that  Legislative Council                                                            
    authorize  the  Chair  to  enter  into  a  contract with  Dawson                                                            
    Construction, Inc.  in the amount of  $5,800,000 for work during                                                            
    the  2014  construction  season  on  the  Alaska State  Capitol,                                                            
    Seismic Retrofit  & Exterior  Renovation Project  and to provide                                                            
    Council with  a revised cost proposal  to complete the remainder                                                            
  of the project at the end of evaluation and exploratory work.                                                                 
                                                                                                                                
    The motion passed with no objections.                                                                                       
                                                                                                                                
    CHAIR  HAWKER noted  for folks  that  Jeff Goodell,  the Capitol                                                            
    Building  Manager,  spent the  weekend  taking  loose  chunks of                                                            
    concrete off  the parapets that  were so loose,  they had a very                                                            
    real chance  of falling  and hitting someone  while members were                                                            
                      th                                                                                                        
    posing for  the 28   Legislature  panoramic picture  in front of                                                            
    the Capitol. He  said Mr. Goodell had  a 5-gallon bucket full  of                                                           
    them sitting in his  office. He thanked Mr. Goodell for thinking                                                            
    of the safety  of the Legislature and  his efforts to ensure  the                                                           
    photograph  occurred  without  an  injury  to  anyone.  Let's go                                                            
    forward and fix the Capitol.                                                                                                
                                                                                                                                
     There being no further business before the committee, the                                                                  
     Legislative Council meeting was adjourned at 7:40 a.m.                                                                     
                                                                                                                                
 7:38:48 AM                                                                                                                   

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