Legislature(2011 - 2012)ANCH LIO Rm 220
12/13/2012 02:00 PM Senate LEGISLATIVE COUNCIL
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
DECEMBER 13, 2012
2:07:09 PM
The Legislative Council meeting was called to order at 2:07 p.m. by Senator Linda Menard,
Chair, in the Anchorage LIO 2nd Floor Conference Room and via teleconference.
1. ROLL CALL
Chair Menard called the roll. In attendance were Council members: Senators Egan, Menard,
and Stevens; Representatives Austerman, Chenault, Herron (via teleconference), Holmes,
Johnson, Stoltze, and P. Wilson (via teleconference). Absent members: Senators Davis,
Hoffman, Olson, Stedman and alternate member Joe Thomas; alternate member Representative
Bill Thomas.
Staff present: Pam Varni, Cathy Tilton, Curtis Clothier, Doug Gardner, Jessica Geary, Skiff
Lobaugh, Tina Strong (via teleconference), John Wright (via teleconference)
Others present: Kris Curtis, Legislative Auditor; Paulyn Swanson, staff to Representative Mike
Hawker; Taylor Winston, Executive Director, Office of Victims' Rights; Wayne
Jensen, owner/architect, Jensen Yorba Lott, Inc.; and Blue Shibler, Executive
Director, Discovery Preschool
2. APPROVAL OF AGENDA
Chair Menard asked if there were any corrections or additions to the agenda.
Senator Egan moved that RFP 581 - Alaska State Capitol Design Services be added to the
agenda. Representative Austerman objected for the purposes of discussion. Chair Menard noted
that it was not on the agenda because there was ample time for the incoming chairman to address
the issue at the next meeting. Representative Stoltze noted that Senator Egan had convinced him
that there were life/safety issues and that it should be dealt with as soon as possible.
Representative Herron joined the meeting at this time.
Chair Menard called the roll.
YEAS: Austerman, Chenault, Herron, Holmes, Johnson, Stoltze, Wilson, Stevens, and
Egan
NAYS: Menard
The motioned passed 9-1.
Representative Holmes moved that Legislative Council approve the agenda as amended.
The motion passed with no objections.
3. APPROVAL OF JULY 25, 2012 MINUTES
Representative Holmes moved that Legislative Council approve the minutes of the July 25, 2012
Council meeting as presented.
The motion passed with no objections.
4. BARROW LEASE RENEWAL APPROVAL
Chair Menard stated that the existing Barrow office space sublease will expire December 31,
2012 with four one-year renewal options remaining. The lease renewal period is January 1, 2013-
December 31, 2013, for a total cost of $32,818.20. This equals $5.03 per square foot for the
space. Procurement Officer Tina Strong was available to answer questions.
Representative Holmes moved that Legislative Council approve the sublease extension renewal
agreement for the existing Barrow lease space for $32,818.20 with Arctic Slope Telephone
Association Cooperative, Inc.
Representative Holmes expressed concern that the space in Barrow be large enough to
accommodate Representative-elect Nageak, but agreed that the issue could be dealt with at a
later meeting when it was clarified how much office space was needed. Chair Menard concurred.
The motion passed with no objections.
5. DISCOVERY PRESCHOOL RENEWAL APPROVAL
Chair Menard stated that an extension of the Discovery Preschool contract would cause the
contract to be renewed for a term of one year beginning December 30, 2012, terminating
December 30, 2013, and leaving a one-year renewal remaining.
Representative Holmes moved that Legislative Council approve the one-year renewal with
Discovery Preschool, LLC beginning December 30, 2012, and terminating on December 30,
2013.
Representative Austerman asked for an explanation and history of the lease. Pam Varni
explained that Legislative Council entered into the lease when the building was acquired due to a
shortage of childcare in Juneau. This assures members and staff that there will be a childcare
option during session. Ms. Varni explained that all financial arrangements are between the
parents and Discovery Preschool. The Legislative Affairs Agency provides office space. This is
similar to the arrangement in the Federal Building and a number of legislators and staff use this
service. The childcare facility operates year-round with additional capacity during the legislative
session. Representative Stoltze provided additional historical context.
The motion passed with no objections.
6. LATE PER DIEM APPROVAL
Chair Menard noted there are four requests for late per diem on the agenda and encouraged the
incoming chairman to examine the per diem policy as there have been many late per diem
approval requests to the committee. She recommended looking at a longer filing period.
Representative Holmes moved that Legislative Council approve the late per diem requests for
Sen. Egan, Rep. Olson, Rep. Chenault and Rep. Kawasaki.
Representative Stoltze objected and expressed a concern that a late per diem request received
after an election for travel before an election allows a legislator to avoid public scrutiny of the
travel, which doesn't serve the public well. Jessica Geary explained that the 60-day policy was
adopted in 1989 to meet IRS regulations and to ensure that end of year reporting and fiscal year
budgeting is accurate. Senator Stevens opined that a 60-day period is right and shouldn't be
changed.
Representative Stoltze said he would like to amend the motion to defer the late per diem claims
to the next meeting, giving the filers time to prepare and present their argument for the late per
diem requests.
Senator Stevens objected.
Chair Menard called the roll.
YEAS: Stoltze
NAYS: Austerman, Chenault, Holmes, Johnson, Wilson, Egan, Stevens and Menard
Representative Herron did not respond to the roll call.
The amendment failed 8-1.
Representative Stoltze removed his objection.
The motion passed with no objection.
7. LAA COMPENSATORY TIME POLICY APPROVAL
Chair Menard stated that currently the compensatory time policy for non-partisan employees is
different among departments. At the last Legislative Budget and Audit meeting, a compensatory
policy was adopted for the Legislative Audit and Finance Divisions. Adopting the proposed
policy change would bring the Legislative Affairs Agency in line with the policy adopted by
LB&A, thereby treating all the non-partisan employees equally.
Representative Holmes moved that Legislative Council approve the proposed compensatory time
policy for the Legislative Affairs Agency non-partisan employees that are consistent with
Legislative Finance and Legislative Budget and Audit non-partisan employees effective
immediately.
Senator Stevens clarified that partisan employees do not have comp time, but adopting this new
policy would bring all non-partisan employees under the same rules. Human Resource Manager
Skiff Lobaugh concurred. Chair Menard noted that this has been a concern for a while and asked
Mr. Lobaugh if he felt this was an equitable solution. Mr. Lobaugh answered in the affirmative.
Representative Holmes asked about the history of the policy. Mr. Lobaugh noted that the
divisions have historically had various policies in place and the current policy was adopted on
September 5. In response to a question from Representative Chenault, Mr. Lobaugh noted that
adopting this policy would not bear any additional cost because it is a "use it or lose it" policy.
The motion passed with no objection.
8. DOMAIN NAME CHANGE
Chair Menard stated that several legislative offices have over the years requested a shorter email
address extension. The IT Subcommittee researched options and is recommending the approval
of akleg.gov - a short and descriptive domain name. The current extension of legis.state.ak.us
will be valid for at least one year from the effective date of the change. The change can be
effective within one week of approval.
Representative Holmes moved that Legislative Council approve the Alaska Legislature domain
name change to akleg.gov.
Senator Stevens asked how long the current address would be valid. Curtis Clothier, Information
Services Manager for the Legislative Affairs Agency, replied that it would be valid until
December 31, 2013. Chair Menard noted that the new address is more user-friendly and
recommended that we reach out to the public to ensure they are aware of the change.
Representative Johnson asked how long we would keep our current domain and recommended
that we keep it for a long period to ensure that it isn't bought by another entity. Mr. Clothier
noted that we could keep it as long as we wanted to pay the $100 annual fee and also noted that
we would be changing the website for consistency. Senator Stevens recommended that the
legislature shorten the addresses even further by using a first initial. Mr. Clothier noted that we
are not contemplating that change at this time but it could be discussed in future meetings.
Representative Holmes encouraged abbreviating titles to make the address even shorter and
adopting all the changes at the same time. Mr. Clothier noted that the abbreviated titles are
currently valid.
The motion passed with no objections.
9. LEGISLATIVE BUDGET AND AUDIT REMODEL APPROVAL
Chair Menard stated that the proposal before members is the efforts of Phase I, the design phase
for the Audit space remodel and renovation as previously approved by the Council. Funding
approval for Phase II of the project will allow the Division of General Services (DGS) to
commence with the bid process. Paulyn Swanson, Legislative Budget & Audit staff to Rep.
Hawker, and Kris Curtis, Legislative Auditor, were available for questions.
Representative Holmes moved that Legislative Council approve an amended Reimbursable
Services Agreement with the Department of Administration in an amount not to exceed
$1,200,000 for design oversight, asbestos abatement, bid preparation, project construction and
th
administration for the 6 Floor State Office Building Legislative Audit Remodel project.
Funding is from existing legislative capital funds.
Representative Herron left the teleconference. There was a brief at-ease while a quorum was
reestablished.
Representative Austerman asked for clarification about the motion. Paulyn Swanson, staff to the
Legislative Budget and Audit Committee, explained that approving the motion would amend the
RSA that is currently in place with DGS to include the construction phase of the project -
including the bid preparation, bid award and actual construction. Ms. Swanson explained that a
large portion of the $1.2 million cost estimate was necessary asbestos abatement.
The motion passed with no objections.
Representative Holmes asked for clarification about the scope of the project. Ms. Swanson
explained that the temporary relocation of Legislative Audit to the Terry Miller Gym wasn't
included in the $1.2 million, but would most likely be accomplished with existing funds.
However another cost that is being determined by LAA is necessary electrical upgrades to the
gym to accommodate Audit. These upgrades, as well as the furniture and partitions, will be
future items for Legislative Council review and approval. Representative Johnson expressed
concern that the legislature was paying for asbestos abatement, which he opined should be the
landlord's responsibility. Ms. Swanson explained that the landlord refused to pay for the
abatement, but it was necessary if the remodel was to go forward. Kris Curtis, Legislative
Auditor, opined that it was a policy call by the Legislature, but being housed in the State Office
Building allows the Audit Division to have a daily presence with the agencies located there.
Representative Austerman noted that, since it's a state building, the money would come from the
same source. Representative Johnson noted that there might also be a liability concern. Ms.
Swanson explained that the agreement is structured so that DGS is running the project.
Representative Chenault noted that he had the same concerns as Representative Johnson but that
ultimately the funds would be coming from the same source and he was supportive of moving
forward.
10. LEGISLATIVE PRINT SHOP COPIER PURCHASE APPROVAL
Chair Menard stated that the Legislative Print Shop currently has six Xerox copy machines
located throughout the Capitol and the Print Shop area that were purchased in 2006. The copiers
have exceeded the normal 5-year life cycle and have produced a large volume of prints. The
models are being discontinued by the manufacturer and they no longer support the machines.
Print Shop Manager John Wright can answer questions.
Representative Holmes moved that Legislative Council approve the purchase of six new copiers
for the Capitol and Print Shop for the total price of $165,764 from the State's WSCA contract
from existing legislative capital funds.
Senator Stevens asked about the disposition of the current copiers. Tina Strong, Procurement
Officer, noted that since Xerox no longer services the machines, Surplus doesn't want them so
they will be hauled away by the company at no cost. Representative Chenault voiced a concern
that we were continuing to do business with a vendor that doesn't service equipment that is five
years old. Representative Wilson expressed concern that some copiers aged out before they
produced the number of copies that they were rated for. Representative Austerman opined that
we should not need so many copiers as we adopt more paperless technology.
The motion passed with no objections.
11. OFFICE OF VICTIMS' RIGHTS SOFTWARE APPROVAL
Chair Menard stated that the new executive director, Taylor Winston, of the Office of Victims'
Rights, is requesting new case management software to replace the outdated software they are
currently using.
Representative Holmes moved that Legislative Council approve the award and expenditure not to
exceed $75,000 from legislative capital funds to New Dawn Technologies for JustWare software
and approve the written justification and approval under Section 040 of the Legislative
Procurement Procedures.
In response to a question from Representative Stoltze, Ms. Winston explained that the new
software is replacing software that was in place when the office opened in 2002. That software is
incomplete and outdated, and does not allow proper editing or searching. The new software,
which is designed for criminal justice agencies, will increase efficiency, enable electronic files,
allow better searching and access, and help the agency better serve the public. Ms. Winston
anticipates this software will serve the agency's needs for at least the next ten years.
The motion passed with no objections.
12. LEGISLATIVE PROCUREMENT PROCEDURE AMENDMENTS APPROVAL
Chair Menard tabled Item 12 due to time constraints.
13. OFFICE ALLOWANCE OPTION APPROVAL
Chair Menard stated that after thorough review of the Allowance Account Guidelines by an
independent CPA firm, the professional opinion is that the Legislature is jeopardizing our
Accountable Plan by letting Legislators choose how they want their individual plan
administered, therefore the Council needs to choose one option for all members
Jessica Geary, Finance Manager for Legislative Affairs Agency, reviewed the results of a survey
on the Accountable Plan options that was sent to all legislators. Option 3, the non-accountable
option where each Legislator receives their annual allowance up front and taxes are withheld was
preferred by 25 Legislators. Option 2, the split option, was preferred by six Legislators; and
Option 1, the fully accountable option, where receipts were submitted to the Accounting Office
with no taxes withheld and any unspent funds lapse to the General Fund at the end of the year
was preferred by 17 Legislators. The preference was for Option 3, the non-accountable option.
Senator Menard commented on her experience with choosing an option when she took office and
opined that it can be cumbersome and confusing for incoming legislators. Ms. Geary explained
that there had not been a review since 2001 and, after review, the CPA noted that it is
problematic to allow a payment of funds leftover in an Accountable Plan even if they are taxed
and that it is also problematic to allow each legislator to choose an individual option. The
recommendation is that one option should be decided administratively and be consistent for all
legislators. If Option 3, the non-accountable plan, was chosen, legislators would be able to
choose lump-sum, quarterly, or monthly payments. In response to inquiries by Representative
Stoltze, Ms. Geary clarified that one option should be chosen for all legislators. There was
discussion about the tax consequences and it was determined that the consequences would vary
based on income and deductions.
Representative Holmes moved that Legislative Council based on recent IRS rulings and
independent auditor recommendations recommend Option 3: Non-accountable Plan for all 60
members of Legislative Council effective with the 28th Legislature with payments made in one-
time lump sum, quarterly or monthly at each Legislator's choice.
Representative Stoltze said the motion needs to be amended to change the word "recommend" to
"implement."
Representative Holmes removed her original motion.
Representative Holmes moved that Legislative Council, based on recent IRS rulings and
independent auditor recommendations, implement Option 3: Non-accountable Plan for all 60
members of the Legislature effective with the 28th Legislature with payments made in one-time
lump sum, quarterly or monthly at each Legislator's choice.
The motion passed with no objections.
14. RFP 581
Representative Holmes moved that Legislative Council go into Executive Session per Uniform
Rule 22(b)(1) and (2) discussion of matters, the immediate knowledge of which would adversely
affect the finances of a government unit; and discussion of a matter that may, by law, be required
to be confidential and ask that any Legislators and the following staff remain in the room or on
teleconference: Don Johnston, Pam Varni, Cathy Tilton, Doug Gardner, and Tina Strong.
Legislative Council went into executive session.
Legislative Council came out of executive session.
Representative Holmes moved that Legislative Council award RFP 581 - Alaska State Capitol
Design Services to Jensen Yorba Lott, Inc., for Phase I, II and III in the amount of $1,055,000
and Phase IV paid on time and expense basis if needed for inspections, bidding and construction
services. Legislative capital funds are available.
Senator Egan expressed appreciation for Senator Menard, Wayne Jensen, and Don Johnston.
The motion passed with no objections.
The meeting was adjourned at 4:04 p.m.
4:04:16 PM
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