Legislature(2013 - 2014)Anch LIO, Rm 670
06/07/2013 10:00 AM Senate LEGISLATIVE COUNCIL
| Audio | Topic |
|---|---|
| Start | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
JUNE 07, 2013
10:00 AM
MEMBERS PRESENT
Representative Mike Hawker, Chair
Representative Max Gruenberg
Representative Craig Johnson
Representative Lance Pruitt
Representative Bill Stoltze
Senator Dennis Egan
Senator Lesil McGuire
Senator Kevin Meyer
MEMBERS ON TELECONFERENCE
Senator Peter Micciche, Vice Chair
Representative Peggy Wilson
Senator John Coghill
MEMBERS ABSENT
Senator Gary Stevens
Senator Charlie Huggins
Representative Mike Chenault
AGENDA
APPROVAL OF MINUTES
RATIFICATION OF CHARITY EVENTS
CONTRACT APPROVALS
OTHER COMMITTEE BUSINESS
SPEAKER REGISTER
DOUG GARDNER, Legal Services Director, Legislative Affairs Agency
10:04:42 AM
I. CHAIR MIKE HAWKER called the Legislative Council meeting to order
at 10:00 a.m. in room 670 of the Anchorage Legislative Office
Building. Chair Hawker noted that the meeting would start with
the executive session first and then Council would proceed to
routine motions and business activities. Due to a technical issue
with the recorder's microphone, Chair Hawker recited the roll
call for purposes of establishing a quorum. Present at the call
were Representatives Hawker, Johnson, Stoltze and P. Wilson (via
teleconference); and Senators Coghill (via teleconference), Egan,
and Micciche (via teleconference), and Hoffman (alternate
member).
REPRESENTATIVE JOHNSON moved that that Legislative Council go
into executive session under Uniform Rule 22 (b) for the
discussion of matters the immediate knowledge of which would
adversely affect the finances of a government unit.
10:06:50 AM
Legislative Council went into executive session.
1:02:43 PM
Legislative Council came out of executive session.
CHAIR HAWKER called the roll. Present at the call were
Representatives Hawker, Johnson, Pruitt, Stoltze and P. Wilson
(via teleconference); and Senators Egan, McGuire, Meyer and
Hoffman (alternate member).
II. ANCHORAGE LIO LEASE
Chair Hawker noted that the first order of business is a series
of four motions related to the extension of the Anchorage LIO
lease.
MOTION - LEASE EXTENSION
SENATOR MCGUIRE moved that Legislative Council authorize the
chairman to negotiate all the terms and conditions necessary to
extend Lease 2004-024411-0 pursuant to AS 36.30.083(a).
REPRESENTATIVE STOLTZE objected to ask for a brief description of
the thought process for this item for the public record.
CHAIR HAWKER said this suite of motions allows the Legislature to
extend our current lease under AS 36.30.083(a), which provides
for lease extension on a sole source basis as long as certain
financial conditions are met; amends the Legislature's
procurement procedures to allow material amendments to existing
leases; empowers the Chairman to negotiate material amendments to
the existing lease - amending paragraph 42 to comply with the
amended procurement procedures and incorporating the leasehold
improvements proposed by the landlord to modernize the existing
LIO facility, limited in cost to be less than similarly sized,
located, and apportioned newly constructed facilities in downtown
Anchorage as determined by the Alaska Housing Finance Corporation
(AHFC); and allows AHFC to be engaged as the Legislature's tenant
representative for lease negotiation with the landlord and
project oversight. He further noted for the record that Council
sought other downtown Anchorage properties suitable to
legislative function and found none, leaving the option of
constructing a new building. Council has definitively said that a
new state-owned building is not a desirable outcome, leading to
the decision to improve the existing location.
Representative Gruenberg joined the meeting at this time.
REPRESENTATIVE STOLTZE spoke to the suite of motions. He said he
was inclined to support these motions noting the lack of suitable
alternative space. He said that the current option of improving
the existing space would allow for the possibility of 40 members
and 20 members having the ability to meet on some basis. He said
he was not talking about a capital move, but under certain
circumstances where the public would be served, and he thinks the
Legislature would be well-served by the opportunity to meet in
Anchorage in possible special sessions. The opportunity to have
larger meeting spaces for the public and for the entire
Legislature for short-term meetings is something his district
would support. He said he has some reservations about parts of
the process, is a little bit hesitant about sole-source
procurement, but under the circumstances and with the meeting
space accommodations being offered, this option has his support.
SENATOR MCGUIRE said for the record that considering the
controversy generated when previous Legislative Councils have
considered the option of purchasing a building, the current
members felt that purchasing a new building at this stage is
simply not something this Legislative Council wants to go
through. She said they think it is more in the public benefit to
keep this particular building on the municipal tax rolls; that
keeping with the existing leaseholder is in the public interest;
and allowing this leaseholder to make the tenant improvements
that are necessary is in the public interest. She said that there
are significant health and safety issues with this building that
have been brought up time and time again to the Legislative
Affairs Agency Executive Director that will need to be covered in
those improvements.
CHAIR HAWKER added that pursuing the sole source option within
Alaska statute was deemed to be the most practicable method
forward as the lease on the current building expires in 11 months
with no renewal options left; there is no other option at this
point as the Request for Information (RFI) that was issued
regarding real estate across the Municipality of Anchorage
received only two responses, neither of which was able to
accommodate the Legislature downtown at all and both had limited
utility regardless of location. He said Council has done adequate
due diligence and they are working within the parameters of the
time frame in which they find it necessary to work. For these
reasons and the substantive reasons stated by Senator McGuire,
Council has chosen to pursue a sole sourcing option.
The motion allowing the chairman to negotiate all the terms and
conditions necessary to extend Lease 2004-024411-0 pursuant to AS
36.30.083(a) passed with no objections.
MOTION - AMEND PROCUREMENT PROCEDURE
1:13:32 PM
SENATOR MCGUIRE moved that Legislative Council adopt proposed
Amendment No. 12 to the Legislative Procurement Procedure 040 to
provide a limited ability for the Legislative Affairs Agency, or
a legislative committee, to materially modify an existing lease
that was previously competitively procured.
CHAIR HAWKER, in response to a question for clarification by
Representative Stoltze regarding the motion made by Senator
McGuire, confirmed that Senator McGuire was mistaken when she
said, in part, "…Legislative Affairs Council…" and that the
motion reads "Legislative Affairs Agency…".
REPRESENTATIVE GRUENBERG asked about paragraph four, specifically
that one of the factors is that the modification must be in the
best interest of the Agency or the committee and he wondered if
there was a difference between saying that and saying "in the
public interest." He said he could foresee something where a
narrow Agency might have a particular interest but it might not
necessarily be in the public interest and he wondered legally
about that.
DOUG GARDNER, Legal Services Director, said some contracts are
entered into by the Agency at the direction of Legislative
Council and those would be approved by Legislative Council; some
contracts are entered into by committee. He said he could not
think of any committee leases at the moment, but in order to
accommodate the traditional type of leasing, it is broken down
into those two categories.
REPRESENTATIVE GRUENBERG interrupted to say that he was drawing a
distinction between local interests as opposed to broad public
interest or if this amendment considers them to be the same.
MR. GARDNER responded that this Council would be approving those
items and because of the composition of Legislative Council which
has statewide representation, there wasn't a local interest that
wouldn't also be a public interest as a consideration.
Representative Gruenberg was satisfied with that response and
simply wanted it on the record.
Senator Coghill joined the meeting at this time via
teleconference.
CHAIR HAWKER repeated the motion and asked if there were further
objections.
The motion to amend Legislative Procurement Procedure 040 passed
with no objections.
MOTION - AUTHORIZE MATERIAL AMENDMENTS TO LEASE
1:17:19 PM
SENATOR MCGUIRE moved that Legislative Council authorize the
chairman to negotiate amendments to lease 2004-024411-0 by mutual
agreement with the Lessor to remove the limitation of amending a
lease that amounts to a material modification in paragraph 42;
and to include 712 West Fourth Avenue, with other terms and
conditions necessary to accommodate renovations, not to exceed
the estimated cost of a similarly sized, located and apportioned
newly constructed building as determined by the Alaska Housing
Finance Corporation.
CHAIR HAWKER said this motion authorizes material amendments to
be made to the extended lease and would allow the chair to
negotiate material modifications and renovations for the facility
currently occupied.
SENATOR EGAN asked for a copy of the motions.
CHAIR HAWKER said a copy of the motions for this meeting should
have been emailed to each member. In response to a question posed
by Senator Coghill, he said that the quorum is on record so there
is no need for a roll call vote.
The motion to authorize material amendments to the lease passed
with no objections.
REPRESENTATIVE STOLTZE said he has not talked to Mr. Pfeffer
about this project but he had in the past received political
contributions from him. He was not asking to be excused from the
vote, simply noting it for the record.
CHAIR HAWKER noted as a point of reference that Mr. Pfeffer is a
landlord for the building currently occupied by the Legislature
in Anchorage. He further noted that he also has received
contributions from Mr. Pfeffer over the course of his political
career.
REPRESENTATIVE GRUENBERG stated that he also has received
political contributions from Mr. Pfeffer.
CHAIR HAWKER stated for the record that the following members
indicated that they too had received political contributions from
Mr. Pfeffer: Representatives Pruitt and Johnson and Senators
Egan, Meyer, Hoffman, Coghill, and McGuire. Representative Peggy
Wilson said she has not received a contribution from Mr. Pfeffer
that she knows of.
MOTION - ENGAGE AHFC AS LESSEE'S REPRESENTATIVE
CHAIR HAWKER said that there was a benchmark number of $50,000 in
this motion. He said he spoke with Mr. Fauske at AHFC and
depending on the amount of work done; the final amount could be
anything from gratis to the full amount authorized in this
motion. He said he will continue to work with AHFC to accommodate
this on as much of a gratis basis as possible.
1:21:58 PM
SENATOR MCGUIRE moved that that Legislative Council authorize the
chairman to enter into a contract for payment not to exceed
$50,000, for AHFC to act as the Lessee's representative in
negotiating an extension to Lease 2004-024411-0, as amended to
include 712 West 4th Avenue, and to assist in managing the
Lessor's compliance with the terms and conditions of the Lessor's
improvements, as described in the lease extension.
The motion to engage AHFC as Lessee's representative passed with
no objections.
CHAIR HAWKER said that with the passage of the fourth and final
motion, that takes care of the beginning of a fabulous project to
establish legislative facilities that will accommodate
legislative needs for the next 10 or more years.
SENATOR MEYER commented that, for the record, he appreciated as
an Anchorage legislator that Council has opted to extend and
renovate rather than buy or build a new building. He remembered
being upset as an Anchorage Assembly member in the '90s when the
State bought the Atwood Building and took it off the tax rolls.
He said every time that happens it is essentially a property tax
increase for the rest of Anchorage. He said he also appreciates
that Council is keeping its obligation to the downtown area and
staying in the downtown area even when it's sometimes difficult.
SENATOR HOFFMAN asked about the time frame and transition of the
project.
CHAIR HAWKER said that although it is subject to final
determination as there will need to be a design process for scope
of improvement, he hopes the project will be concluded in
approximately a nine month period - commencing sometime between
October and December, with completion timed to permit
reoccupation as soon as possible after the 2014 legislative
session is concluded.
III. APPROVAL OF MINUTES
1:25:18 PM
SENATOR MCGUIRE moved that the minutes from the Legislative
Council meeting on May 13, 2013 be approved.
The minutes were approved with no objections.
IV. RATIFICATION OF CHARITABLE EVENT
1:25:53 PM
SENATOR MCGUIRE moved that Legislative Council ratify the
following charity event, which was previously sanctioned by the
Legislative Council Chair in accordance with AS
24.60.080(a)(2)(b):
a. 14th Annual Calista Heritage Foundation Golf Tournament
benefitting the Calista Heritage Foundation, Inc.
CHAIR HAWKER noted for the record that the 14th Annual Calista
Heritage Foundation Golf Tournament benefitting the Calista
Heritage Foundation, Inc., met all the qualifications in statute
of being a 501(c) (3) organization.
The event was ratified with no objections.
V. CONTRACT APPROVALS
a. Mat-Su LIO Lease
CHAIR HAWKER noted this item was a routine reauthorization of the
Mat-Su LIO lease with no particular changes.
1:27:55 PM
SENATOR MCGUIRE moved that Legislative Council authorize the
chairman to approve a one-year renewal of the existing lease
agreement for the Mat-Su Legislative Information Office and
Legislators' District Office space for a cost of $182,215.20.
REPRESENTATIVE STOLTZE objected to note that the general feedback
is that the Mat-Su is a delegation that has increased in size,
space was added after 2010 reapportionment and there will
probably be more space needed after 2020; he said the space has a
good landlord who is very responsive to the tenant concerns; it's
a good location; and this space has good support from the Mat-Su
delegation.
The motion to renew the Mat-Su lease passed with no objections.
b. Seward LIO
CHAIR HAWKER said this last item was requested by the Speaker of
the House. He said currently the Seward LIO operates on a six
month basis for legislative session. Seward has been a very
active community and the Speaker has asked that this facility be
staffed and available year round for an additional cost of
$59,200. He said this amount can be accommodated within existing
budgets with the understanding that all items currently budgeted
will be reviewed in the next budget cycle.
1:30:45 PM
SENATOR MCGUIRE moved that Council approve the Seward LIO going
from session only to full time effective June 4, 2013, and ask
the Agency to include that increase in their FY 15 budget
request.
The motion passed with no objections.
CHAIR HAWKER said that items for future meetings include Capitol
security issues, legislative information office security issues,
and Facebook access among a number of other items for Council to
deal with over the summer.
SENATOR EGAN noted that Steve Daigle, Chief of Security, has
volunteered to arrange a presentation to Legislative Council on a
variety of security options.
CHAIR HAWKER said his staff is working to schedule that. He added
that the Capitol exterior portico project is underway now, the
steps have been removed from the front of the Capitol and the
project is going as well as could possibly be hoped. It is, at
the moment, on time and going forward as authorized.
REPRESENTATIVE STOLTZE said he has had contact from constituent
groups regarding Capitol Security's involvement on the incident
on the protest censorship encroachment, specifically mentioning
Mr. Daigle's name as an intervener. He said he would be remiss if
he didn't bring this up and that Council would be avoiding an
important policy issue if this wasn't looked at.
CHAIR HAWKER said that the ACLU filed a Freedom of Information
Act request with the Governor's Office related to that issue. The
Governor's Office has responded completely with their full
disclosure. He said it is his understanding that the ACLU was not
contemplating going any further with this issue. Should they
provide any further request to the Legislature, we will certainly
comply with that. Immediately after he became aware of the
circumstance during session, he issued a statement of policy
under executive authority reaffirming the Legislature's
commitment to freedom of speech and public access to the Capitol.
With that affirmation and very specific directives about being
sure to err on the side of the public's freedom of speech, at
this point, from a legislative perspective, he sees the issue as
closed; the Legislature has taken preventative action and the
administration has taken the remedial action that was requested
by the ACLU.
Chair Hawker expressed his gratitude in response to
Representative Stoltze's statement that he would gauge what the
continued public interest is as he is not guided by what the ACLU
deems as relevant.
There being no further business before the committee, the
Legislative Council meeting was adjourned at 1:35 p.m.
1:35:35 PM
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2013.06.07 Agenda.pdf |
JLEC 6/7/2013 10:00:00 AM |
|
| IIIa. Calista Heritiage Event.pdf |
JLEC 6/7/2013 10:00:00 AM |
|
| IVa. MatSu LIO Lease.pdf |
JLEC 6/7/2013 10:00:00 AM |
|
| Procurement Code Amendment 12.pdf |
JLEC 6/7/2013 10:00:00 AM |
|
| Va. Seward LIO.pdf |
JLEC 6/7/2013 10:00:00 AM |