ALASKA STATE LEGISLATURE  LEGISLATIVE BUDGET AND AUDIT COMMITTEE  May 7, 2024 8:01 a.m. MEMBERS PRESENT Representative Ben Carpenter, Chair Senator Bert Stedman, Vice Chair Representative Sarah Vance Representative Frank Tomaszewski Representative Andy Josephson Representative Mike Cronk (alternate) Senator Bill Wielechowski Senator Lyman Hoffman Senator James Kaufman Senator Scott Kawasaki MEMBERS ABSENT  Representative DeLena Johnson Senator Click Bishop (alternate) OTHER LEGISLATORS PRESENT Senator Cathy Giessel Senator David Wilson (via teleconference) COMMITTEE CALENDAR  APPROVAL OF MINUTES EXECUTIVE SESSION PROCUREMENT PREVIOUS COMMITTEE ACTION  No previous action to record WITNESS REGISTER JC KESTEL, Procurement Officer Legislative Affairs Agency Legislative Agencies and Offices Juneau, Alaska POSITION STATEMENT: Offered explanation of a procurement. ACTION NARRATIVE  8:01:24 AM CHAIR BEN CARPENTER called the Legislative Budget and Audit Committee meeting to order at 8:01 a.m. Representatives Vance, Josephson, Cronk, Tomaszewski, and Carpenter and Senators Stedman, Wielechowski, and Kaufman were present at the call to order. Senators Hoffman and Kawasaki arrived as the meeting was in progress. Also present was Senator Giessel. ^APPROVAL OF MINUTES APPROVAL OF MINUTES    8:02:17 AM CHAIR CARPENTER announced the first order of business would be the approval of minutes. CHAIR CARPENTER explained that a correction was needed; therefore, approval of the 4/4/24 Legislative Budget and Audit Committee minutes would be postponed to the 5/9/24 meeting. ^EXECUTIVE SESSION EXECUTIVE SESSION    8:02:30 AM CHAIR CARPENTER announced that the next order of business would be executive session. 8:02:38 AM SENATOR STEDMAN moved and asked unanimous consent that the Legislative Budget and Audit Committee go into executive session under Uniform Rule 22(b)(3) for the discussion of matters that may, under law, be required to be confidential. He asked that the following persons remain in the room or on line: Emily Nauman, Director, Legislative Legal Services; JC Kestel, Procurement Officer; Earnest Daigle, Contracting Officer; any legislators not on the committee; staff to legislators on the committee, and Helen Phillips, House Finance Staff. There being no objection, it was so ordered. 8:03:35 AM The committee took an at-ease from 8:03 a.m. to 8:18 a.m. for the purpose of executive session. 8:18:22 AM CHAIR CARPENTER called the Legislative Budget and Audit Committee back to order at 8:18 a.m. Present at the call back to order were Representatives Vance, Josephson, Tomaszewski, Cronk, and Carpenter and Senators Kaufman, Wielechowski, Hoffman (alternate), Kawasaki, and Stedman. Also present were Senators Wilson (via teleconference) and Giessel. ^PROCUREMENT PROCUREMENT    8:18:57 AM CHAIR CARPENTER announced the final order of business would be procurement. 8:19:18 AM JC KESTEL, Procurement Officer, Legislative Affairs Agency, reviewed that the agency had conducted a request for proposal (RFP) 24-33-02 for consulting work related to oil and gas and carbon storage in the areas of Cook Inlet, North Slope, and Middle Earth. That solicitation was canceled early in 2024 because of a conflict of interest presented with the single proposal received; there was a contract that existed for the executive branch for that proposal for a similar scope of work. Through negotiation with the executive branch, Chair Carpenter was able to negotiate a new contract to concentrate on gas in Cook Inlet, which was approved by the Legislative Budget and Audit Committee [during its 4/4/24 meeting]. However, after further analysis, Chair Carpenter understood the legislature needed additional consulting services. These needs include expertise on oil and gas issues for both the North Slope and Middle Earth, further expertise on liquified natural gas, and assistance in analyzing carbon proposals. Chair Carpenter's office tasked the Legislative Affairs Agency to draft an amendment to the existing Gaffney, Cline & Associates ("GaffneyCline") contract. [The agency] recommended that the committee exercise a new contract for the expanded scope of work. Mr. Kestel offered to answer questions. 8:21:36 AM SENATOR STEDMAN moved that the Legislative Budget and Audit Committee approve the contract award to GaffneyCline related to oil and gas, carbon, and tax analysis in an amount not to exceed $1 million and that the committee terminate the existing contract with GaffneyCline entered into on April 22, 2024, related to Cook Inlet gas analysis. There being no objection, it was so ordered. 8:22:06 AM ADJOURNMENT  There being no further business before the committee, the Legislative Budget and Audit Committee meeting was adjourned at 8:22 a.m.