Legislature(2019 - 2020)SENATE FINANCE 532

05/06/2019 12:00 PM LEGISLATIVE COUNCIL

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Audio Topic
12:00:31 PM Start
12:19:04 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Ratification of Charity Events TELECONFERENCED
- 2nd Annual "Flying Through Time" Silver Gala
Committee Business
- Per Diem Budget Transfer
Contract Approvals
- ITB 633 - Terry Miller Building Retaining Wall
Cap & Rail
- Bethel Office Space Renewal
- FY20 Microsoft Enterprise Software Renewal
-- Teleconference Listen Only --
**Streamed live on AKL.tv**
                   ALASKA STATE LEGISLATURE                                                                                   
                     LEGISLATIVE COUNCIL                                                                                      
                                                                                                                              
                         MAY 06, 2019                                                                                         
                           12:00PM                                                                                            
                                                                                                                              
                                                                                                                              
   MEMBERS PRESENT                                                                                                            
   Senator Gary Stevens, Chair                                                                                                
   Representative Louise Stutes, Vice Chair                                                                                   
   Senator John Coghill                                                                                                       
   Senator Mia Costello                                                                                                       
   Senator Cathy Giessel                                                                                                      
   Senator Lyman Hoffman                                                                                                      
   Senator Bert Stedman                                                                                                       
   Senator Natasha von Imhof                                                                                                  
   Representative Bryce Edgmon                                                                                                
   Representative Neal Foster                                                                                                 
   Representative Chuck Kopp                                                                                                  
   Representative Steve Thompson                                                                                              
   Representative Tammie Wilson                                                                                               
                                                                                                                              
                                                                                                                              
   MEMBERS ABSENT                                                                                                             
   Representative DeLena Johnson                                                                                              
                                                                                                                              
                                                                                                                              
   OTHER MEMBERS PRESENT                                                                                                      
                                                                                                                              
                                                                                                                              
   AGENDA                                                                                                                     
   APPROVAL OF MINUTES                                                                                                        
   RATIFICATION OF CHARITY EVENTS                                                                                             
   COMMITTEE BUSINESS                                                                                                         
   CONTRACT APPROVALS                                                                                                         
                                                                                                                              
                                                                                                                              
   SPEAKER REGISTER                                                                                                           
   Jessica Geary, Executive Director, Legislative Affairs Agency                                                              
   JC Kestel, Procurement Officer, Legislative Affairs Agency                                                                 
   Tim Banaszak, IT Manager, Legislative Affairs Agency                                                                       
                                                                                                                              
     12:00:31 PM                                                                                                            
                                                                                                                              
I.   Call to Order                                                                                                          
                                                                                                                              
     CHAIR STEVENS  called the Legislative  Council meeting to order                                                          
     at  12:00pm in  the Senate Finance  Committee Room.  Present at                                                          
     the  call were: Senators  Coghill, Costello,  Giessel, Hoffman,                                                          
     Stedman,  von Imhof,  Stevens; Representatives  Edgmon, Foster,                                                          
     Stutes Thompson,  Wilson. Representatives Johnson and Kopp were                                                          
     absent.                                                                                                                  
                                                                                                                              
     12 members present.                                                                                                      
                                                                                                                              
                                                                                                                              
II. Approval of Minutes                                                                                                     
                                                                                                                              
     April 11, 2019                                                                                                           
                                                                                                                              
     12:01:38 PM                                                                                                            
     VICE-CHAIR  STUTES  moved  and  asked  unanimous  consent  that                                                          
     Legislative  Council approve the minutes  dated April 11, 2019,                                                          
     as presented.                                                                                                            
                                                                                                                              
     CHAIR   STEVENS  asked  if   there  were  any   corrections  or                                                          
     additions. Seeing no objections, the minutes are approved.                                                               
                                                                                                                              
                                                                                                                              
III. Ratification of Charity Events                                                                                         
                                                                                                                              
     Second Annual "Flying through Time" Silver Gala                                                                          
                                                                                                                              
    12:01:56 PM                                                                                                           
     VICE-CHAIR  STUTES  moved   and  asked unanimous  consent  that                                                        
     Legislative  Council  ratify  the  Chair's  sanctioning of  the                                                          
     following  charitable events  per  AS 24.60.080  (a)(2)(B): the                                                          
     Second Annual "Flying through Time" Silver Gala.                                                                         
                                                                                                                              
     CHAIR STEVENS objected  for purposes of discussion. He reminded                                                          
     members  that he  sanctioned this  event and  verified it  is a                                                          
     501(c)(3)  organization.  He  asked  if  there was  discussion.                                                          
     Seeing  none,  he  removed  his  objection  and that  event  is                                                          
     ratified.                                                                                                                
                                                                                                                              
    Representative Kopp joined the meeting at 12:02pm.                                                                        
                                                                                                                              
IV. Committee Business                                                                                                      
                                                                                                                              
     a.    Per Diem Budget Transfer                                                                                           
                                                                                                                              
                                                                                                                              
                                                                                                                              
     12:02:49 PM                                                                                                            
     VICE-CHAIR  STUTES  moved that  Legislative  Council  approve a                                                          
     transfer  in  the  amount of  $292,284  from  the Salaries  and                                                          
     Allowances  allocation   to  Senate  Per  Diem/30-Day  Extended                                                          
     Session   allocation  ($97,260)   and  House   Per  Diem/30-Day                                                          
     Extended   Session   allocation   ($195,024);   and  that   any                                                          
     unexpended   funds  be   transferred   back  to   Salaries  and                                                          
     Allowances.                                                                                                              
                                                                                                                              
     CHAIR  STEVENS objected  for purposes  of discussion  and asked                                                          
     Ms. Geary to please explain.                                                                                             
                                                                                                                              
     JESSICA GEARY,  Executive Director, Legislative Affairs Agency,                                                          
     said  the  per  diem was  moved  into  separate components  and                                                          
     allocations   a  couple  fiscal   years  ago   and  that  makes                                                          
     transferring funds  very difficult. This transfer will allow us                                                          
     to  pay the session per  diem. We have corrected  this for FY20                                                          
     so  this should  not  be a  problem going  forward.  Usually it                                                          
     could  just be  an accounting function,  but we  are prohibited                                                          
     from  transferring funds  between  appropriations which  is why                                                          
     this is necessary.                                                                                                       
                                                                                                                              
     CHAIR  STEVENS said  so we are  transferring an  additional ten                                                          
     days just  in case, but if that is not  needed it will be moved                                                          
     back.  He asked  if there were  questions or  discussion. Chair                                                          
     Stevens removed his objection and requested a roll call vote.                                                            
                                                                                                                              
     YEAS: Senators Coghill,  Costello,  Giessel, Hoffman,  Stedman,                                                          
     von  Imhof;  Representatives  Edgmon,  Foster, Kopp,  Thompson,                                                          
     Wilson, Vice-Chair Stutes, Chair Stevens.                                                                                
                                                                                                                              
     NAYS: None                                                                                                               
                                                                                                                              
     The motion passed 13-0.                                                                                                  
                                                                                                                              
                                                                                                                              
V.   Contract Approvals                                                                                                     
                                                                                                                              
     a.    ITB 633 Terry Miller Building Retaining Wall Cap & Rail                                                          
                                                                                                                              
     12:05:16 PM                                                                                                            
     VICE-CHAIR  STUTES moved  that Legislative Council  approve the                                                          
     award  of ITB  633  to Carver  Construction, LLC,  for  a total                                                          
     contract price of $132,739.00 out of existing capital funds.                                                             
                                                                                                                              
     CHAIR STEVENS objected  for purposes of discussion and asked JC                                                          
     Kestel to come  forward and provide a brief explanation of this                                                          
     project.                                                                                                                 
                                                                                                                              
     JC  KESTEL,  Procurement Officer,  Legislative  Affairs Agency,                                                          
     replied  that on  February  26, 2019,  the  Legislative Affairs                                                          
     Agency   issued   ITB  633   to  solicit   bids   from  general                                                          
     construction   contractors   to   perform   the  Terry   Miller                                                          
     Legislative  Office   Building  retaining  wall  cap  and  rail                                                          
     project. The ITB  was published on the State of Alaska's online                                                          
     public  notices  site  and  with  The  Plans Room,  an  Alaskan                                                          
     resource for the commercial contracting industry.                                                                        
                                                                                                                              
     ITB 633 closed  on March 25, 2019. Four proposals were received                                                          
     and  opened from: Carver Construction  LLC; Dawson Construction                                                          
     LLC;  Silver Bow  Construction  Company; and  Alaska Commercial                                                          
     Contractors,  Inc. The bidder  with the lowest  total bid price                                                          
     was   Carver  Construction   LLC,   with  a   total   price  of                                                          
     $132,739.00. A bid abstract is attached.                                                                                 
                                                                                                                              
     Based  on  the above  information,  the  Agency recommends  the                                                          
     award of ITB  633 to Carver Construction, LLC, in the amount of                                                          
     $132,739.00.                                                                                                             
                                                                                                                              
     Mr. Kestel continued  he would be happy to answer any questions                                                          
     about  the ITB  process, and John  Cayce, Project  Director and                                                          
     Capitol  Building Manager is available  to answer any questions                                                          
     regarding the project.                                                                                                   
                                                                                                                              
     CHAIR STEVENS noted  that members are familiar with the Request                                                          
     for  Proposal (RFP)  process, but  asked  Mr. Kestel  to please                                                          
     explain  for  the  record what  ITB  stands  for  and how  that                                                          
     process works.                                                                                                           
                                                                                                                              
     MR.  KESTEL responded  that ITB stands  for Invitation  to Bid,                                                          
     where  the lowest  bidder is  the  winner. With  an ITB,  it is                                                          
     known  what  needs  to  be  purchased,  versus  a  Request  for                                                          
     Proposal  (RFP)  were  proposals  are  sought  on how  best  to                                                          
     accomplish  the project. An  RFP process is  reviewed through a                                                          
     Proposal  Evaluation Committee (PEC) that  grades each proposal                                                          
     to determine who  is selected, versus an ITB which just goes to                                                          
     the lowest bidder.                                                                                                       
                                                                                                                              
     CHAIR STEVENS asked if there was discussion.                                                                             
                                                                                                                              
     SENATOR  COGHILL asked  how the  timing  of this  project would                                                          
     coincide with the window project.                                                                                        
                                                                                                                              
     MR.  KESTEL responded that  the window and  exterior renovation                                                          
     project  is scheduled to  start in  early July, with  the South                                                          
     face  of the  Terry Miller building  completed first.  Once the                                                          
     South  face  is  completed,  the  retaining wall  project  will                                                          
     start, which is anticipated to be mid-August.                                                                            
                                                                                                                              
     CHAIR STEVENS saw  no further questions, removed his objection,                                                          
     and requested a roll call vote.                                                                                          
                                                                                                                              
     YEAS: Senators Coghill,  Costello,  Giessel, Hoffman,  Stedman,                                                          
     von  Imhof;  Representatives  Edgmon,  Foster, Kopp,  Thompson,                                                          
     Wilson, Vice-Chair Stutes, Chair Stevens.                                                                                
                                                                                                                              
     NAYS: None                                                                                                               
                                                                                                                              
     The motion passed 13-0.                                                                                                  
                                                                                                                              
                                                                                                                              
     b.    Bethel Office Space Renewal                                                                                      
                                                                                                                              
     12:09:37 PM                                                                                                            
     VICE-CHAIR  STUTES   moved  that  Legislative  Council  approve                                                          
     renewal  No. 2  of the  lease  for Bethel  Office Space  in the                                                          
     amount of $80,450.16.                                                                                                    
                                                                                                                              
     CHAIR STEVENS objected  for purposes of discussion and asked JC                                                          
     Kestel to provide a brief explanation.                                                                                   
                                                                                                                              
     MR.  KESTEL  said  the  original  lease agreement  between  the                                                          
     Legislative  Affairs Agency and Tunista,  Inc. for office space                                                          
     in Bethel,  was for a three-year term  that began July 1, 2015,                                                          
     and terminated  June 30, 2018. There  were three lease renewals                                                          
     available  under the original lease agreement,  each for a one-                                                          
     year period. One of the renewal options has been exercised.                                                              
                                                                                                                              
     Renewal No.  1 of the lease expires on  June 30, 2019. We would                                                          
     like  approval to  proceed with  Renewal No.  2 for  the period                                                          
     July 1, 2019, through June 30, 2020.                                                                                     
                                                                                                                              
     If Legislative Council  approves Renewal No. 2, this will leave                                                          
     one more renewal  of the lease available before we must issue a                                                          
     bid or do a lease extension.                                                                                             
                                                                                                                              
     This  lease  exceeds $35,000  in  one  fiscal year;  therefore,                                                          
     Legislative Council's approval is required.                                                                              
                                                                                                                              
     CHAIR STEVENS thanked  Mr. Kestel for the information and noted                                                          
     that  Senator  Hoffman, an  occupant  of the  Bethel  space, is                                                          
     present.                                                                                                                 
                                                                                                                              
     REPRESENTATIVE  WILSON asked does this  lease include utilities                                                          
     or is it just the space?                                                                                                 
                                                                                                                              
     MR.  KESTEL responded,  yes,  this lease  renewal  does include                                                          
     utilities.                                                                                                               
                                                                                                                              
     REPRESENTATIVE  WILSON  followed  up  to  ask, besides  Senator                                                          
     Hoffman,  who else  uses  this space?  Is there  one  LIO staff                                                          
     there?                                                                                                                   
                                                                                                                              
     MR.  KESTEL  responded  that  occupants  are: Senator  Hoffman;                                                          
     Representative Zulkosky; and one LIO staff.                                                                              
                                                                                                                              
     CHAIR STEVENS  said seeing no further  comments, he removed his                                                          
     objection and requested a roll call vote.                                                                                
                                                                                                                              
     YEAS: Senators Coghill,  Costello,  Giessel, Hoffman,  Stedman,                                                          
     von  Imhof;  Representatives  Edgmon,  Foster, Kopp,  Thompson,                                                          
     Wilson, Vice-Chair Stutes, Chair Stevens.                                                                                
                                                                                                                              
     NAYS: None                                                                                                               
                                                                                                                              
     The motion passed 13-0.                                                                                                  
                                                                                                                              
                                                                                                                              
     c.    FY20 Microsoft Enterprise Software Renewal                                                                       
                                                                                                                              
     12:12:33 PM                                                                                                            
     VICE-CHAIR STUTES  moved that Legislative Council authorize the                                                          
     Microsoft   FY20    licensing   payment   to   Software   House                                                          
     International for $144,402.52.                                                                                           
                                                                                                                              
     CHAIR  STEVENS objected  for purposes  of discussion  and asked                                                          
     Tim Banaszak to provide a brief explanation.                                                                             
                                                                                                                              
     TIM  BANASZAK,  IT Manager,  Legislative  Affairs  Agency, said                                                          
     what is before  members is the annual payment for the Microsoft                                                          
     software licensing.                                                                                                      
                                                                                                                              
     In  2018, Legislative  Council  approved the  first installment                                                          
     for  the State  of Alaska's three  year contract  with Software                                                          
     House  International (SHI), which  provides Microsoft products,                                                          
     including  Windows 10,  Windows  server operating  systems, and                                                          
     the  Office software suite  (Word, Excel,  Outlook, PowerPoint,                                                          
     Skype  for Business, OneNote,  Publisher and  Access database).                                                          
     This is  the second installment of  that agreement, reviewed by                                                          
     the   IT  Subcommittee  that   recommends  Legislative  Council                                                          
     approval.                                                                                                                
                                                                                                                              
     The  State of  Alaska's  Executive branch  hired  a third-party                                                          
     negotiator  when this  contract  was signed,  to look  at other                                                          
     states  and ensure the State  was getting the  best pricing for                                                          
     this  contract;  all  three  branches  in Alaska  (legislative,                                                          
     executive, judicial) get to take advantage of this.                                                                      
                                                                                                                              
     I  also  want  to  acknowledge  Doug  Letch, staff  to  Senator                                                          
     Stevens,  who helped  coordinate the  IT Committee  and agenda,                                                          
     which was very helpful.                                                                                                  
                                                                                                                              
     This  agreement  also provides  licensing  to  operate critical                                                          
     infrastructure  systems  including  Windows  operating  system,                                                          
     server,  databases, BASIS  network, websites,  public internet,                                                          
     and  the  intranet.  Something  extremely  helpful  under  this                                                          
     agreement  is we now  have more email  storage up  to 100GB per                                                          
     mailbox,  unlimited   archiving  and  protected  OneDrive  file                                                          
     sharing,  software   licensing  and  collaboration  for  mobile                                                          
     devices.                                                                                                                 
                                                                                                                              
     Finally,  it provides  software assurance which  safeguards the                                                          
     applications,  operating  systems, and  databases  by providing                                                          
     the most current security updates and software versioning.                                                               
                                                                                                                              
     This renewal, which  begins July 1, 2019, provides the benefits                                                          
     of reduced-volume  pricing, enhanced technical support, regular                                                          
     software   upgrades,  and  training  for   technical  and  non-                                                          
     technical staff.                                                                                                         
                                                                                                                              
     The  Legislature's  portion  of  the  agreement  for FY2020  is                                                          
     $144,402.52,   which  is  budgeted   under  the  Administrative                                                          
     Services   allocation   and   requires  Legislative   Council's                                                          
     approval.  If this request  were not approved,  the Legislature                                                          
     would  no  longer   have  access  to  email,  Microsoft  Office                                                          
     software  and critical infrastructure systems  would be exposed                                                          
     to internet exploits on July 1, 2019.                                                                                    
                                                                                                                              
     REPRESENTATIVE   WILSON   asked  for   clarification.   If  the                                                          
     Legislature  purchases this, then other  branches of government                                                          
     use this service for free?                                                                                               
                                                                                                                              
     MR.  BANASZAK  apologized  for  perhaps  not articulating  that                                                          
     correctly. The  Executive branch created a master contract with                                                          
     Microsoft  that  allows  them to  purchase  licenses for  their                                                          
     branch  under that  discounted  price structure  for government                                                          
     entities.  We purchase our  licenses for the  Legislature under                                                          
     that master contract, but we pay for our services.                                                                       
                                                                                                                              
     SENATOR HOFFMAN asked  where this software is used and if it is                                                          
     used in LIOs statewide.                                                                                                  
                                                                                                                              
     MR.  BANASZAK  replied,  yes,  anytime  a legislative  computer                                                          
     anywhere is turned  on, this software must be in place in order                                                          
     communicate? this software is heavily used by LIOs.                                                                      
                                                                                                                              
     CHAIR STEVENS  said seeing no further  comments, he removed his                                                          
     objection and requested a roll call vote.                                                                                
                                                                                                                              
     YEAS: Senators Coghill,  Costello,  Giessel, Hoffman,  Stedman,                                                          
     von  Imhof;  Representatives  Edgmon,  Foster, Kopp,  Thompson,                                                          
     Wilson, Vice-Chair Stutes, Chair Stevens.                                                                                
                                                                                                                              
     NAYS: None                                                                                                               
                                                                                                                              
     The motion passed 13-0.                                                                                                  
                                                                                                                              
                                                                                                                              
VI. Adjourn                                                                                                                 
                                                                                                                              
     CHAIR STEVENS  said if there is nothing  further to come before                                                          
     the Council, we are adjourned.                                                                                           
                                                                                                                              
     12:19:04 PM                                                                                                            

Document Name Date/Time Subjects
5.6.19 Leg. Council Meeting Packet.pdf JLEC 5/6/2019 12:00:00 PM
5.6.19 Meeting Packet
TMLOB Retaining Wall Cap and Rail Photos.pdf JLEC 5/6/2019 12:00:00 PM
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