Legislature(2015 - 2016)Anch LIO AUDITORIUM
09/10/2015 09:00 AM House LEGISLATIVE BUDGET & AUDIT
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| Audio | Topic |
|---|---|
| Start | |
| Approval of Minutes | |
| Executive Session | |
| Release of Audits | |
| Procurements | |
| Enalytica Contract Novation | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
LEGISLATIVE BUDGET AND AUDIT COMMITTEE
Anchorage, Alaska
September 10, 2015
9:04 a.m.
MEMBERS PRESENT
Representative Mike Hawker, Chair
Senator Anna MacKinnon, Vice Chair
Representative Kurt Olson
Representative Lance Pruitt
Representative Steve Thompson
Representative Sam Kito
Senator Lyman Hoffman
Senator Cathy Giessel
Senator Bert Stedman (via teleconference)
MEMBERS ABSENT
Senator Click Bishop
Representative Mark Neuman (alternate)
Senator Pete Kelly (alternate)
OTHER LEGISLATORS PRESENT
Representative Louise Stutes
Representative Geran Tarr (via teleconference)
Representative Andy Josephson
Representative Liz Vazquez
Representative Chris Tuck (via teleconference)
COMMITTEE CALENDAR
APPROVAL OF MINUTES
EXECUTIVE SESSION
RELEASE OF AUDITS
PROCUREMENTS
ENALYTICA CONTRACT NOVATION
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
RENA DELBRIDGE, Staff
Representative Mike Hawker
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Hawker as chair
of the Legislative Budget and Audit Committee, explained the
proposed Enalytica, Inc., contract novation, and responded to
questions.
ACTION NARRATIVE
9:04:26 AM
CHAIR MIKE HAWKER called the Legislative Budget and Audit
Committee meeting to order at 9:04 a.m. Representatives Hawker,
Kito, Olson, and Pruitt, and Senators MacKinnon, Stedman (via
teleconference), Giessel, and Hoffman were present at the call
to order. Representative Thompson arrived as the meeting was in
progress. Representatives Stutes, Tarr (via teleconference),
Josephson, Vasquez, and Tuck (via teleconference) were also in
attendance.
^APPROVAL OF MINUTES
APPROVAL OF MINUTES
9:05:56 AM
CHAIR HAWKER announced that the first order of business would be
the approval of the minutes.
9:06:08 AM
SENATOR MACKINNON made a motion to approve the minutes from the
meeting of June 23, 2015.
CHAIR HAWKER objected; ascertained that there were no other
objections; and announced that the minutes from the meeting of
June 23, 2015, were approved.
9:06:45 AM
SENATOR MACKINNON made a motion to approve the minutes from the
meeting of July 22, 2015.
CHAIR HAWKER objected.
SENATOR MACKINNON made a motion to delete from page 5 the word
"of" in the first line of text following the "9:53:10 AM"
timestamp [thereby fixing a typographical error]; and to [fix]
on page 7 the quote in the paragraph following the "10:00:13 AM"
timestamp to more accurately reflect the relationship indicated
by the speaker between increases in certain populations and
[decreases in assessment performances]. There being no
objection, it was so ordered.
CHAIR HAWKER - regarding the motion to approve the minutes from
the meeting of July, 22, 2015 - ascertained that there were no
objections to approving those minutes as corrected, and
announced therefore that the corrected minutes from the meeting
of July 22, 2015, were approved.
^EXECUTIVE SESSION
EXECUTIVE SESSION
9:08:19 AM
CHAIR HAWKER announced that the committee would next go into
executive session.
9:08:37 AM
SENATOR MACKINNON made a motion to move to executive session
under Uniform Rules 22(b)(1) and (3) for the purpose of
discussing matters which the immediate knowledge of would
adversely affect the finances of government unit, [and matters
that may by law be required to be confidential]; and for the
purpose of discussing confidential audit reports under
AS 24.20.301. There being no objection, the committee went into
executive session at 9:09 a.m.
CHAIR HAWKER brought the committee back to order at 11:54 a.m.
Present at the call back to order were Representatives Hawker,
Kito, Olson, and Thompson, and Senators MacKinnon, Giessel, and
Hoffman.
^RELEASE OF AUDITS
RELEASE OF AUDITS
11:54:58 AM
CHAIR HAWKER announced that the next order of business would be
the release of audit reports.
11:55:07 AM
SENATOR MACKINNON made a motion for the final audit report
regarding the State Board of Parole sunset review to be released
to the public. There being no objection, it was so ordered.
11:55:30 AM
SENATOR MACKINNON made a motion for the preliminary audit
reports regarding the Division of Alaska Pioneer Homes; the
Alaska Agricultural and Fisheries Products Preference Use by
State Entities; the Commercial Fisheries Entry Commission
(CFEC); the Citizen's Advisory Commission on Federal Areas; and
the Real Estate Commission sunset review to be released to the
appropriate agencies for response. There being no objection, it
was so ordered.
^PROCUREMENTS
PROCUREMENTS
11:56:09 AM
CHAIR HAWKER announced that the next order of business would be
procurements.
11:56:15 AM
SENATOR MACKINNON made a motion that the committee authorize the
legislative auditor to extend the Division of Legislative
Audit's Anchorage's office-space lease under AS 36.30.080 for a
total lease extension of up to 10 years in the amount of $4,453
per month for the first year with annual Consumer Price Index
(CPI) adjustments each additional year beginning July 2017.
CHAIR HAWKER objected; clarified that the correct statutory
reference for that motion is AS 36.30.083; ascertained that
there were no other objections; and indicated that the motion
[as corrected] passed.
11:57:15 AM
SENATOR MACKINNON made a motion that the committee authorize the
legislative auditor to solicit for specialized information-
technology expertise to review the State of Alaska's new
Integrated Resource Information System (IRIS).
CHAIR HAWKER objected; explained that [if passed,] the motion
authorizes the solicitation of [specialized expertise], not the
awarding of [a contract] as that would require specific
committee approval; ascertained that there were no other
objections; and announced that the motion passed.
11:58:00 AM
SENATOR MACKINNON made a motion that the committee authorize the
legislative auditor to solicit and award a contract for an
amount not to exceed $215,000 for a performance review of the
Alaska Commission on Postsecondary Education and the Alaska
Student Loan Corporation. There being no objection, it was so
ordered.
11:58:36 AM
SENATOR MACKINNON made a motion that the Legislative Budget and
Audit Committee authorize the chair, as the procurement officer,
to enter into a contract with The Menges Group, the apparent
winner of the Medicaid Reform and Expansion Consultant [request
for proposals (RFP)], in an amount not to exceed $350,000.
There being no objection, it was so ordered.
^ENALYTICA CONTRACT NOVATION
ENALYTICA CONTRACT NOVATION
11:59:23 AM
CHAIR HAWKER announced that the final order of business would be
a proposed contract novation involving Enalytica, Inc.
11:59:45 AM
RENA DELBRIDGE, Staff, Representative Mike Hawker, Alaska State
Legislature, on behalf of Representative Hawker as chair of the
Legislative Budget and Audit Committee, explained that Janak
Mayer and Nikolaos Tsafos - who individually hold consulting
contracts with the Alaska State Legislature through the
Legislative Budget and Audit Committee to provide information
about oil and gas taxation/fiscal issues and a liquefied natural
gas (LNG) project - have formed the company Enalytica, Inc., and
are therefore seeking novation of their two individual contracts
such that their new company would stand as the single obligor
under a single contract. All rights and responsibilities set
forth in the two individual contracts would shift to the new
company, with the only material changes being that the new
single contract would reference the one company rather than the
two individuals; there would be only one maximum contract
amount, payable to the company, rather than two separate maximum
amounts payable to the individuals, and that single amount would
not exceed the two individual amounts combined; and the name of
Laura Pierre [as project manager] would be changed to that of
Rena Delbridge. If the proposed contract novation is agreed to,
Mr. Mayer and Mr. Tsafos would still be performing all the work
they individually agreed to perform, and for the same price, but
they would be performing it under the name of the new company.
MS. DELBRIDGE, in response to questions and comments, confirmed
that there would be no change in what was referred to as the
"economic substance of the contract, the relationship between
the [State of Alaska] and these contractors"; that the contract
novation would result in Enalytica, Inc., becoming the
contracting party in place of Mr. Mayer and Mr. Tsafos
individually; that legal counsel has been engaged to address
details of the proposed contract novation; that under the terms
of the new contract Mr. Mayer and Mr. Tsafos would still be
contractually bound to perform all the work promised under their
individual contracts; and that the new contract would expire on
the same date as those individual contracts, that being
January 31, 2016.
12:06:07 PM
SENATOR MACKINNON [made a motion that] the committee agree to
the novation [of] and related amendments [to] the contracts
between the Legislative Budget and Audit Committee and Janak
Mayer, and between the Legislative Budget and Audit Committee
and Nikolaos Tsafos, both dated January 19, 2015; and authorize
the chair of the Legislative Budget and Audit Committee to enter
into a novation agreement between the Legislative Budget and
Audit Committee, Janak Mayer, Nikolaos Tsafos, and
Enalytica, Inc.
SENATOR MACKINNON added that the novation is considered to be in
the best interest of the Legislative Budget and Audit Committee
and will be in accordance with Section 160(b) of the Alaska
Legislative Procurement Procedures.
CHAIR HAWKER ascertained that there were no objections to [the
motion], and indicated that [the motion] passed.
12:07:13 PM
CHAIR HAWKER - prior to adjourning the meeting - relayed that at
some point the committee would be addressing performance-review
reports regarding the Department of Health and Social Services
(DHSS), and reports from the Department of Education and Early
Development (EED) and the Department of Administration (DOA)
required under the 28th Alaska State Legislature's
House Bill 278; that on September 25, 2015, the committee would
be [hosting] an all-day seminar regarding gasline issues in
anticipation of a possible upcoming special session; and that
Enalytica, Inc., would be presenting at that seminar.
12:09:43 PM
ADJOURNMENT
There being no further business before the committee, the
Legislative Budget and Audit Committee meeting was adjourned at
12:09 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Agenda_LBA_10Sept15_updated.pdf |
JBUD 9/10/2015 9:00:00 AM |