Legislature(2015 - 2016)BILL RAY CENTER 208
07/12/2016 08:00 AM House LEGISLATIVE COUNCIL
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ALASKA STATE LEGISLATURE
LEGISLATIVE COUNCIL
JULY 12, 2016
8:05 AM
MEMBERS PRESENT
Senator Gary Stevens, Chair
Representative Bob Herron, Vice Chair
Senator John Coghill
Senator Lyman Hoffman
Representative Mike Chenault
Representative Craig Johnson
Representative Sam Kito
Representative Charisse Millett
Representative Mark Neuman
MEMBERS ON TELECONFERENCE
Senator Charlie Huggins
Senator Anna MacKinnon
Senator Peter Micciche
MEMBERS ABSENT
Senator Kevin Meyer
Senator Lesil McGuire, alternate
Senator Cathy Giessel, alternate
Representative Mike Hawker
Representative Steve Thompson, alternate
Representative Harriet Drummond, alternate
AGENDA
CONTRACT APPROVALS
OTHER COMMITTEE BUSINESS
SPEAKER REGISTER
Tina Strong, Procurement Officer, Legislative Affairs
Agency
Pam Varni, Executive Director, Legislative Affairs Agency
Amy Skilbred, Executive Director, Juneau Community
Foundation
Reed Stoops, Board Member, Juneau Community Foundation
Ken Koelsch, Mayor, City and Borough of Juneau
8:05:19 AM
I. CHAIR GARY STEVENS called the Legislative Council meeting
to order at 8:05 a.m. in Room 208 of the Bill Ray Center.
Present at the call were Senators Stevens, Coghill,
Hoffman, and, alternate member; Representatives Herron,
Chenault, Johnson, Kito, Millett, Neuman, and Thompson and
Drummond, alternate members. Participating via
teleconference were Senators Huggins, MacKinnon and
Micciche (who joined the meeting during Executive Session).
Senators Meyer, and Giessel and McGuire, alternate members,
and Representatives Hawker, and Thompson and Drummond,
alternate members, were absent.
II. CONTRACT APPROVALS
a. Office of Victims' Rights Lease Extension
b. Mat Su Office Space Lease Extension
c. Juneau Storage Lease Extension
d. Fairbanks Office Space RFP - Executive Session
a. Office of Victims' Rights Lease Extension
CHAIR STEVENS asked for a motion to approve the OVR Lease
Extension. Discussion followed regarding the OVR Lease
Extension.
TINA STRONG, Procurement Officer with the Legislative
Affairs Agency, stated that lease renewal No. 3 for the
OVR's Anchorage office space expired on June 30, 2016, and
are requesting approval of lease renewal No. 4 for the
period July 1, 2016, through June 30, 2017; and is a
standard, routine lease renewal.
Discussion followed regarding whether OVR could move into
the Wells Fargo building currently under negotiation for
purchase. It was clarified that the OVR would not be a good
fit for the Anchorage legislative offices and would like to
remain near the Court Building downtown.
A roll call vote was taken.
YEAS: Stevens, Herron, Coghill, Hoffman, Huggins,
MacKinnon, Chenault, Johnson, Kito, Millett, Neuman
NAYS: None
The motion passed 11-0.
b. Mat Su Office Space Lease Extension
8:08:50 AM
VICE CHAIR HERRON moved that Legislative Council approve
Renewal No. 5 Lease Extension with Wasilla Station, LLC, in
the amount of $185,670.36 for August 1, 2016, through July
31, 2017.
MS. STRONG said that Renewal No. 4 for Mat Su office space
expires on July 31, 2016, and approval is requested for
Renewal No. 5 for the period August 1, 2016, through July
31, 2017; and this is a standard, routine lease renewal.
A roll call vote was taken.
YEAS: Stevens, Herron, Coghill, Hoffman, Huggins,
MacKinnon, Chenault, Johnson, Kito, Millett, Neuman
NAYS: None
The motion passed 11-0.
c. Juneau Storage Lease Extension
8:10:08 AM
VICE CHAIR HERRON moved that Legislative Council approve
Renewal No. 1 for the lease extension with Goldstein
Improvement Company in the amount of $37,619.16, for the
period of July 1, 2016, through June 30, 2017.
MS. STRONG said the Agency's lease for Juneau storage at
the Goldstein Building on Seward Street expired on June 30,
2016, and approval is requested for Renewal No. 1 for the
period of July 1, 2016, through the period of June 30,
2017; and this is a standard, routine lease renewal.
Discussion followed regarding what is stored in the space,
the need for storage to conform to record retention
schedules, and that each section of the Legislature,
including Legislative Audit, use that space for storage.
Additional discussion regarding consolidating storage at
other facilities, noting that the Goldstein space is much
less expensive than other storage and more conveniently
located than some of the other; as well as the fact that it
is a full service lease, which includes utilities.
A roll call vote was taken.
YEAS: Stevens, Herron, Coghill, Hoffman, Huggins,
MacKinnon, Chenault, Johnson, Kito, Millett, Neuman
NAYS: None
The motion passed 11-0.
d. RFP 614 - Fairbanks Office Space (Executive Session)
CHAIR STEVENS noted that Proposals are confidential until
Legislative Council awards the contract, so Council would
be going into Executive Session to review the proposals and
then come out of Executive Session to take any action.
8:15:00 AM
VICE CHAIR HERRON moved that Legislative Council go into
Executive Session under Uniform Rule 22(B)(1), discussion
of matters, the immediate knowledge of which would
adversely affect the finances of a government unit and
22(B)(3), discussion of a matter that may, by law, be
required to be confidential. I ask that the following
individuals remain in the room: Pam Varni, Doug Gardner,
Katrina Matheny, Linda Hay, Tina Strong, and any
legislative staff working for Council members. We also
welcome any Legislators that are not on Legislative Council
to remain in the room.
There being no objection, Legislative Council went into
Executive Session.
8:25:04 AM
Legislative Council came out of Executive Session.
8:26:28 AM
VICE CHAIR HERRON moved that Legislative Council award RFP
614 for the Fairbanks LIO and Fairbanks delegation office
space to Alaska USA Federal Credit Union for a five year
lease term with five, one-year renewals at $16,940 per
month with annual CPI increases.
A roll call vote was taken.
YEAS: Stevens, Herron, Coghill, Hoffman, Huggins,
MacKinnon, Micciche, Chenault, Johnson, Kito,
Millett, Neuman
NAYS: None
The motion passed 12-0.
III. OTHER COMMITTEE BUSINESS
a. Juneau Community Foundation Property Transfer Approval
CHAIR STEVENS said that this item regards property that has
become available at 524 Main Street. He noted he did not
seek out this property but rather that the Juneau Community
Foundation called to let him know that they had purchased
the building at 524 Main Street and were interested in
transferring ownership to the Legislature.
PAM VARNI, Executive Director of the Legislative Affairs
Agency, said that the property under discussion was
assessed several years ago at $820,000; the operating
expenses are $9,570 annually; and there is an apartment on
the property that has rented for $1,750 per month and would
generate revenue for the Legislature. She said that the
City has transferred property to the Legislature in the
past and, with that transfer the Legislature had to put in
quite a bit of money to renovate. With this property, there
are no renovations needed as it was completely remodeled in
2006. She said some of the Juneau Community Foundation
members were present to speak to this item.
AMY SKILBRED, Executive Director of the Juneau Community
Foundation, said that a fund was established with the
Juneau Community Foundation called Capitol Fund, which is
to be used to support the Capitol Complex. This property
became available, it's in line with the Capitol Fund to
purchase property like this and see if it can be used by
the State for the Capitol.
REED STOOPS, Board Member of the Juneau Community
Foundation, said that the purpose of the acquisition is to
make it available to the State. It could be made available
to the Legislature or to the Administration. He said that
as members may have noticed from the tour of the building
they took yesterday that the building is well-suited for
receptions, for meetings, for office space, for storage,
etc.; he said it is just generally useful as it's
convenient to the Capitol and has parking, and would
provide space for official functions. He said the Juneau
Community Foundation was willing to donate it to whatever
branch of state government is interested in using it.
KEN KOELSCH, Mayor of Juneau, said that one of the eight
goals of the City Assembly is to be a better capital city.
Some of the ways we attempt to do that is to televise the
legislative session through KTOO, through acquiring
property that can be used by the State to make Juneau a
better capital; and this was one that was acquired through
the Juneau Community Foundation and it would be a very good
fit for the Legislature and he hopes that Legislative
Council would consider it.
CHAIR STEVENS asked Mayor Koelsch if he had any concerns
about the property being removed from the tax rolls.
MAYOR KOELSCH said that if it is removed from the tax
rolls, he thought it would be a win because it was one more
part that Juneau is able to serve as a capital city and
that is one of their goals. Even though it is taken off the
tax rolls, it fulfills the goal of being a better capital
city.
REPRESENTATIVE KITO added that before the house was
remodeled back into a residence in 2006, it did serve as
law offices. He thought it would be pretty easy to have it
work as offices again. It does have the benefit of being
close to the Capitol and does have some large, open spaces
that could be used for gatherings, etc., that we don't have
a lot of space for at the Capitol Building.
REPRESENTATIVE NEUMAN said while he appreciated the
generous offer, he said for himself and for folks in the
Mat-Su, he considers this more an expansion of government
and he cannot support it at this time.
Discussion followed regarding the structural integrity of
the building. The Juneau Community Foundation (JCF) said
they reviewed the engineering report done by R&M
Engineering and that report would be made available for the
Legislature. The JCF offered to take back the property at
any point if the Legislature found any problems with the
property in the future. There was one caveat that the
Legislature would not be able to sell the building; that
they would return it to the JCF at no cost to the
Legislature.
CHAIR STEVENS noted that the Legislative Council needed to
make a decision or allow the JCF to offer the building to
the Executive Branch.
MR. STOOPS said that from the JCF's perspective, he
confirmed that they would like a decision sooner rather
than later as it was not their intent to hold on to this
property. It has been offered to both the Executive and
Legislative Branch and whoever decides first that they'd
like the property will get it.
MS. SKILBRED, in response to a question by Senator
MacKinnon, said the property was put in an LLC, is earning
money that wasn't connected with the non-profit, so they
actually would be paying property tax to the City if it
remained under their ownership.
SENATOR MACKINNON put on the record that she has been a
tenant in the apartment over the garage for the last 10
years. She said she had nothing to do with the transaction
or the JCF and asked the Chair if she needed to make a
formal request to be recused from voting on this even
though she does not benefit financially.
CHAIR STEVENS said that if Senator MacKinnon chose not to
vote, that was acceptable.
SENATOR MACKINNON, noting how close this property was to
the campus of buildings owned by the Legislature, said she
really wanted to thank Juneau, the JCF, the Mayor, and all
those associated with the Foundation; however, it was just
not a good time for the Legislature to take on the
responsibility of another building.
CHAIR STEVENS said that some positive aspects of this
property are the garages, which would allow the storage of
vans that are now stored out at Lemon Creek when the
Legislature is not in session. It would allow additional
parking, perhaps for up to six vehicles; it would allow for
receptions which are now held in the Speaker's Office, as
well as Lunch-and-Learns; and also four or five offices on
the second floor of the building.
SENATOR HOFFMAN noted that if the apartment was rented out
on a long-term basis, it would bring in enough revenue to
cover the annual operating costs, maintenance, etc., so he
didn't see a downside to the acquisition at this time,
especially when the options are wide open for the
Legislature. At this point, the positives strongly outweigh
the negatives.
MR. STOOPS, in response to a question by Representative
Millett, said that the property was offered simultaneously
to both the Legislature and the Executive Branch; he said
Guy Bell with DOA toured the building yesterday and the
Governor may or may not look at it. The JFC is indifferent
to which branch takes it as long as it will be part of the
Capitol Complex.
MS. VARNI, in response to a request for clarification from
the Chair, said that annual operating costs were provided
and totaled $9,570. Depending on the amount of rent charged
and whether it would be rented just during session or year-
round, it would be a revenue generator, off-setting the
operating expenses. Rents could generate at least $10,000
annually, depending on how we rent the space.
CHAIR STEVENS asked, in response to Vice Chair Herron's
concerns, that if the Legislative Council agreed to accept
the property from the JFC, and then serious mechanical or
other issues were discovered, would it be possible to
return the property to the JFC.
MS. SKILBRED confirmed that the property could be returned
to the Foundation at any time without penalty to the
Legislature.
Discussion followed concerning issues with being a landlord
and rental rates differing between session-only and year-
round. Additional discussion regarding public perception at
a time of fiscal hardship and whether the Legislature
actually needs this property regardless of the convenience
of the location.
8:53:31 AM
VICE CHAIR HERRON moved that Legislative Council approve
the transfer of the property located at 524 Main Street to
the Legislative Council.
After clarification that a yes vote was a vote to accept
the property, a roll call vote was taken. Senator MacKinnon
recused herself from the vote.
YEAS: Stevens, Hoffman, Micciche, Kito
NAYS: Herron, Coghill, Huggins, Chenault, Johnson,
Millett, Neuman
The motion failed 4-7.
MR. STOOPS said that if the Executive Branch declined the
property and the Foundation rented it out for a year, they
would check back with Legislative Council to see if
interest had grown.
There being no further business before the committee, the
Legislative Council meeting was adjourned at 8:55 a.m.
8:55:40 AM
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