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