JULY 25, 2012  10:09:09 AM The Legislative Council meeting was called to order at 10:10 a.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 Davis, Egan, Stevens (via teleconference), Menard, and alternate J. Thomas (via teleconference); Representatives Chenault (via teleconference), Herron, Holmes, Johnson (via teleconference), Stoltze, P. Wilson (via teleconference) and alternate B. Thomas (via teleconference). Absent members: Senators Hoffman, Olson and Stedman, and Representative Austerman. Staff present: Varni, Clothier, Gardner, Tilton, Finley (via teleconference), Johnston, Lesh, Strong (via teleconference), and Warenda Others present: Representatives Fairclough and Hawker 2. APPROVAL OF AGENDA Chair Menard stated that the Domain Name Change and Facebook under Item 5-IT Items be removed from the agenda, and that Item 13 - Office Allowance be moved to the bottom of the agenda. Representative Herron moved that Legislative Council approve the amended agenda as presented. The motion was approved with no objections. 3. APPROVAL OF MARCH 22, 2012 MINUTES Representative Herron moved that Legislative Council approve the March 22, 2012 minutes as presented. The motion passed with no objections. 4. RATIFICATION OF CHARITABLE EVENTS  · "Clink" - Juneau Art & Humanities Council · 20th Annual Coal Classic Golf Tournament - Alaska Resource Education Representative Herron moved that Legislative Council ratify the following charitable events per AS 24.60.080(a)(2)(B): · "Clink" - Juneau Arts & Humanities Council · 20th Annual Coal Classic Golf Tournament - Alaska Resource Education The motion passed with no objections. 5. IT ITEMS  · Hardware Refresh · Microsoft Enterprise Agreement Renewal Curtis Clothier, Manager of Information Services for the Legislative Affairs Agency, stated that the annual hardware refresh is an item that comes before Council every year as part of keeping computer hardware and other computer equipment up-to-date. The hardware refresh recommendations before Council are based on several meetings of the IT Subcommittee, a survey of all legislative offices, discussions with both Rules Chairs and the Legislature's Three Year Plan. The request before Council is for the following: 79 desktop computers, 21 laptops, 10 color laser printers and 50 large format monitors at a total cost of $133,000. Representative Herron moved that that Legislative Council approve the solicitation, award and expenditure not to exceed $133,000 for computer and printer upgrades from legislative capital funds. Chair Menard noted that Representative Anna Fairclough had joined the meeting. Members were unable to pass the motion as one member had left the room and there was no longer a quorum. Chair Menard directed Mr. Clothier to go on to the Microsoft Enterprise Agreement Renewal. Mr. Clothier stated that Microsoft Enterprise Agreement, brought before Council every year, is used by all three branches of government and provides very large discounts for software, offers enhanced support upgrades to the software used, administrative training on Microsoft products as well as an employee discount program that many people have taken advantage of. The Microsoft EA was entered into by the Department of Administration and En Pointe Technologies; the legislative portion of the contract totals $108,897.30. Chair Menard asked Mr. Clothier if the agreement costs would continue to escalate. Mr. Clothier said he does not expect it to go down. Every time we add a new computer, we add another desktop that uses Microsoft products, so unless we cut back substantially on the number of computers we use, it probably will not go down. The good side is that we are getting at least a 25% discount off of retail pricing with this contract. The pricing is exceptional and if we didn't have this agreement in place, we'd be spending much more money without the enhanced services. Chair Menard asked for a motion. Representative Herron offered a motion that combined both items. Representative Herron moved that Legislative Council approve the solicitation, award and expenditure not to exceed $133,000 for computer and printer upgrades from legislative capital funds and; approve the expenditure of $108,897.30 to En Pointe Technologies for the Legislature's portion of the annual Microsoft Enterprise Agreement. Representative Stoltze asked if a roll call vote was necessary since there were only eight members and three were on teleconference. Chair Menard asked if Pam Varni could address this issue. Pam Varni, Executive Director of Legislative Affairs Agency, stated that roll call votes have been done when there are members on teleconference because it's unclear if a member has dropped off the line. It's more of an issue when there are only eight members, which is exactly enough for a quorum. It's not necessary to call the members present; the Chair could simply call those members currently on teleconference. Discussion followed. Chair Menard called the roll for Senators Stevens and Thomas, and Speaker Chenault. All members on teleconference voted in favor of the motion. Speaker Chenault asked Chair Menard how the members present voted. Chair Menard responded that members present all voted in favor of the motion; the motion passed 8-0. 6. AMERICAN GUARD CONTRACT RENEWAL APPROVAL Chair Menard stated that this is the contract for uniformed security services at the Anchorage LIO and is presented for renewal. This would be a renewal of the August 15, 2011 contract. The contract would be in the amount not to exceed $49,000 ending June 30, 2013. Anchorage Information Officer Mike Warenda can answer questions. Representative Herron moved that Legislative Council approve a one year renewal with American Guard Services for Anchorage office space day time security services in an amount not to exceed $49,000 ending June 30, 2013. Chair Menard called the roll of members on teleconference (Senators Stevens and Thomas; Speaker Chenault) and there were no objections by those members present. The motion passed 8-0.   7. LEGISLATIVE BUDGET AND AUDIT REMODEL APPROVAL  Chair Menard stated that the next item is a request for consideration and approval of an RSA and accompanying design proposal for a Legislative Audit Office Space Remodel and Renovation Project. Representative Mike Hawker and Paulyn Swanson, Budget and Audit staff to Representative Hawker can explain the process and answer questions. Chair Menard asked for a motion. Representative Herron moved that Legislative Council approve a Reimbursable Services Agreement with the Department of Administration in an amount not to exceed $102,800 for architectural and engineering design services and administration for the 6th Floor Legislative Audit Remodel Project. Representative Mike Hawker, District 32-Anchorage, said he is currently serving as Chair of the Legislative Budget & Audit Committee and is here in that capacity. He is joined by his Chief of Staff, Paulyn Swanson who is the LB&A Committee Aide. He said the request before Council for an RSA that would be from Legislative Council budget to the Division of Administration General Services is to provide management services for the remodel and renovation of the space occupied by the State's Legislative Audit Division. The space they are currently in, they have occupied for 30 years. The growth of government in 30 years involved a commensurate growth in the Audit function. They quite frankly are literally stacked on top of each other there. With other decisions and projects that have been conducted by Legislative Council recently has enabled the Legislative Finance Division to relocate into separate facilities. The development plan for that move entailed the concept that the space Legislative Finance had been currently occupying in the State Office Building in Juneau, which is contiguous to the current Legislative Audit space, would be subsumed by Legislative Audit, giving them the space they appropriately need to conduct their activities. The last remodel and renovation work done on the Legislative Audit facility was 30 years ago. Representative Hawker stated that they have been through a fairly lengthy process of identifying how to go about conducting these tenant improvements, verifying who was responsible for the tenant improvements and separating tenant improvements from building management activities that are appropriately the responsibility of the Department of Administration. There is a detailed memo before members from Ms. Swanson that talks about this and explains the reason for the RSA. He said that between him, Ms. Swanson and Ms. Varni, they have developed a managerial protocol for pursuing this project. That protocol involves definition of the scope of the project, identifying a management team and producing a development plant. That management protocol will go forward with the LB&A Aide Paulyn Swanson as Project Manager, since she is also a full-time resident in Juneau and can handle the management of the project particularly well. The RSA to the General Services Division of the Department of Administration is because they are experienced facilities' managers for the State of Alaska. They have term contracts in place for outside professional design/architecture type work that they use across the state so all of their own protocols are in place. The RSA you're being asked to approve with GSA will authorize GSA to essentially be the professional services contractor under the Project Manager Paulyn Swanson. They will provide specific project supervision, management, procurement and financial and administrative controls over the effort. They will also be able to handle financial arrangements with those outside contractors. The idea is that we will come up with a very specific request for the build-out effort which will come back to Legislative Council as a separate request for funding. Chair Menard said she concurred with the remodel and renovation, and that the space is disastrous in a lot of ways so she is glad we're on top of this. Representative Holmes asked for clarification that the amount Council was being asked to approve today is for the design and then there will be a separate request for the cost of the remodel. Representative Hawker confirmed that was correct. He said that for the record the RSA with GSA is a total of $102,799.72; that involves their services with a 2% inter-divisional fee, which he would respectfully argue against with them, but it is in one pocket and out the other from the standpoint of the State, so it's a no-net difference to the State of Alaska. Representative Holmes followed up by asking if there was a rough estimate for the cost of the remodel construction. Representative Hawker deferred to Paulyn Swanson, Committee Aide to LB&A and staff to Representative Hawker. Ms. Swanson stated that at this time there is not a construction estimate; however, that is built in to this RSA so there will be a construction estimate based on 65% of document prep once that's done. She said that amount should come forward prior to the bid process. Representative Hawker added that in his position as Chair of the LB&A Committee and to some degree responsible for the execution of this project, he is extremely concerned about the project being properly scoped, properly planned, properly designed and professionally estimated so we have a good benchmark to go forward and we know what our financial commitment will be as we commence the project. He said we will be able to operate and supervise the project to that objective and not incur cost overruns. Chair Menard called the roll of members on teleconference (Senators Stevens and Thomas; Speaker Chenault) and there were no objections by those members present. The motion passed 8-0. 8. LEASE RENEWAL APPROVAL  · Kenai Lease Renewal and Additional Office Space · Mat-Su Lease Renewal · Kenai Lease Renewal and Additional Office Space Chair Menard stated that the Kenai LIO is a lease property occupied by Senator Wagoner, and Representatives Chenault and Olson. This is a State-owned building with the lease being between the Legislature and DOTPF. Because it is a State-owned facility, we are charged only a percentage of the yearly administrative costs to run the building based on square footage. The renewal could run from July 1, 2012 to June 30, 2013 for $75,127. There is an additional 132 square feet of office space available that will not affect the lease amount until FY 14. Procurement Officer Tina Strong can answer questions. Representative Herron moved that Legislative Council approve the renewal of the lease agreement with DOT for the existing Kenai lease space for $75,127 and approve the additional 132 square feet of office space. Chair Menard called the roll of members on teleconference (Senators Stevens and Thomas; Speaker Chenault) and there were no objections by those members present. The motion passed 8-0. · Mat-Su Lease Renewal Chair Menard stated that the Mat-Su LIO is lease property occupied by Senators Menard, Huggins, and Representatives Stoltze, Keller, Hughes and Neuman. This is the first one year renewal for the 6,927 square feet at a monthly cost of $15,067, which equals $2.18 per square foot and could run from August 1, 2012 to July 31, 2013. For the record, that space includes an unused office, which has been made available to Representative Feige who chooses not to have an office at that location. Representative Stoltze objected for the purposes of noting for the record that Mr. Dennis Smith is a political supporter of his and has contributed to his campaign in the range of $200-250. He said they did not discuss the details of this project. Chair Menard noted that Mr. Dennis Smith has also contributed to her campaign. Representative Stoltze removed his objection. Representative Herron moved that Legislative Council approve the renewal of the lease agreement with Wasilla Station, LLC for the Mat-Su lease space for $180,804. Chair Menard called the roll of members on teleconference (Senators Stevens and Thomas; Speaker Chenault) and there were no objections by those members present. The motion passed 8-0. 9. ITB 572 - TERRY MILLER LOB BOILER PIPING REPAIR APPROVAL  Chair Menard asked Don Johnston to speak to this item. Don Johnston, Building Manager for Legislative Affairs Agency, stated that the Terry Miller LOB was remodeled in 1997. The majority of the mechanical was new in 1997 and is about 15 years old now. Maintenance has rebuilt many of the pumps and motors, etc.; they're aging, it's time for them to be replaced. Since the entire system needs to be taken down for draining and flushing, it is a good time to make some replacements of aging parts. Mike Shilts, the Maintenance Mechanic, is on teleconference in Juneau in case additional information is needed. Representative Herron moved Legislative Council approve the award and expenditure of ITB 572 to Behrends Mechanical, Inc. in the amount of $69,189. Chair Menard called the roll of members on teleconference (Senators Stevens and Thomas; Speaker Chenault) and there were no objections by those members present. The motion passed 8-0. 10. ITB 573 - TERRY MILLER LOB SPRINKLER PROJECT APPROVAL  Mr. Johnston stated that in the same 1997 remodel of the Terry Miller LOB, the majority of the existing sprinkler piping was kept in place as it met code at the time and did not need to be reconfigured for the floor plan. Since then, some of the sprinkler heads are now over 50 years old and those, by code, have to be replaced. With some reconfiguring of offices on the third floor and various other areas, some of that piping also now has to be brought up to code. In the most recent inspection, there were quite a few items documented that need to be taken care of. Some sprinkler heads in the library, for example, and some pumps as well in the pump room. This project is to bring the building up to code per the inspection and needs to be completed by December 2012. Representative Herron moved that Legislative Council approve the award and expenditure of ITB 573 to Harri Plumbing & Heating, Inc. in the amount of $29,450. Chair Menard called the roll of members on teleconference (Senators Stevens and Thomas; Speaker Chenault) and there were no objections by those members present. The motion passed 8-0. 11. CAPITOL BUILDING ENVELOPE CONSULTING SERVICES APPROVAL  Chair Menard stated that the Agency has found that there is a need for an in-depth inspection for a more thorough evaluation of the Capitol Building portico and exterior masonry. Mr. Paul Lukes, Building Envelope Consulting Services, was hired in 2006 to perform a preliminary field investigation. In 2010, Mr. Lukes performed the work mentioned in his 2006 report and provided LAA with an evaluation and recommendations report that included significant observations, analysis and recommendations. LAA would like to move forward in contract with Mr. Lukes for the next phase: evaluation, design development and construction cost estimating. LAA is also requesting approval of the contract in the amount not to exceed $149,000 under the Procurement Procedures Section 040(B) which states "award of the contract under this paragraph is in the agency's or committee's best interest" as Mr. Lukes has completed the first two phases and has been involved with this project since 2006. They feel it is in the Council's best interest to contract with Mr. Lukes for Phase III. Representative Stoltze said he would probably oppose this. If there are potential structural problems with the existing capital site, he would like a broader discussion about whether there might be better locations to build a legislative hall. Senator Egan said he takes issue with his friend from the Mat-Su. This is a historic building, originally constructed in the '20s. Whether the capital stays in Juneau or not, as a matter of historical significance this structure, the first territorial capitol building of any significance, is our current state capital. We need to make it structurally sound, seismically correct and it benefits the entire State of Alaska. He said he hopes the capital remains in his community forever but a new legislative hall can be explored as well in Juneau; currently, it is the state capital building. It houses the Governor, the Lt. Governor and every member of the Legislature. He said he would hate to see this structure go into any more disrepair than it currently is. He said the $149,000 that was approved by the Legislature and which must be authorized by Legislative Council is money well-spent. He said he wishes this had been done in 2006. Now, it's 2012 and it is starting to fail even more with water infiltration and other issues, it is necessary. Mr. Johnston stated that what is being approved here is for Phase III; basically, to do an in-depth analysis of the building structurally and the building envelope. It will tell us what the condition of the building is, whether it's a state capital or an office building. At the very least, that needs to be done. It has nothing to do with any construction costs. We can go through with this phase, get their reports and, at that point, decide whether to move on to Phase IV and V. He said there are some serious safety issues with portions of the building right now. Representative Stoltze requested that this item be moved further down the agenda to give him a chance to reflect and potentially amend the motion. Representative Herron read the original motion: he moved that Legislative Council approve the contract and exemption justification with Paul Lukes: Building Envelope Consulting Services, LLC in the amount not to exceed $149,000 for Phase III Evaluation, Design Development and Construction Cost Estimating for Capitol Restoration. Chair Menard moved the item down just before the last item (Office Allowance). 12. LEGAL REPRESENTATIVE APPROVAL  Doug Gardner, Legal Services Director, stated that he is addressing Legislative Council on two separate motions to authorize representation of both the Legislature and the Legislative Budget & Audit Division, and Senator Ellis. Mr. Gardner said that, for the record, legislative immunity comes up quite frequently and he comes to Council per the policy that was articulated some meetings ago, which allows pre-approval from the Chair in order to act and file for the Court in a timely manner and then come for full Council approval as soon as possible thereafter. Most of the time, private litigants don't know anything about legislative immunity and when they are presented with a good argument, they back off. In this particular case, the Executive Branch has been litigating a case with some prescription drug companies. The Executive Branch had some discovery requests presented to them and, unfortunately, they included the Legislative Budget & Audit Division. Mr. Gardner was contacted by Kris Curtis of Legislative Audit and a request came through Ms. Varni, and now we have an order from Judge Easter that the Legislature needs to respond in discovery. Mr. Gardner said we found out about this situation late in the game in the case of State v. McKesson Corporation and First DataBank. We have filed a motion to quash a Request for a Production of Documents, which could potentially apply to every member of the Legislature and their staff, because we believe it violates legislative immunity which is provided for under the Alaska Constitution. He believes the Court will amend the order, but if necessary we will go the Alaska Supreme Court. He stated they are not taking a position on the merits of the case nor trying to change the outcome. He is simply trying to protect the Legislature, Legislative Audit and its members and staff. He is requesting approval by Council so that they are able to complete the briefing in this case. Chair Menard asked Mr. Gardner to speak to the second case as well and requested a combined motion when he is finished. Mr. Gardner said Senator Ellis contacted his office in June. He indicated that a process server was trying to serve him and take a deposition in a case involving a motor vehicle accident and some actions he may have taken on behalf of constituents when the intersection involved was being revised by DOT. He does not know the name of the case and did not attempt to find out any details about the litigation because he didn't want to highlight anything that Senator Ellis was concerned about with any private counsel. He does know one of the lawyers involved and did not contact him. To his knowledge, Senator Ellis has not been served. This may be a case where it just goes away; however, if Senator Ellis is served, it is the intention of Legal Services to defend legislative immunity where it comes down to constituent communications. There is no negotiation on that and we intend to be aggressive with that. He is asking Council's full approval of the Chair's initial approval. Chair Menard asked for a combined motion. Representative Herron moved that Legislative Council authorize Legal Services' representation of Senator Johnny Ellis with regard to a subpoena for a deposition, associated discovery, or being subsequently called as a witness in a plaintiff's personal injury lawsuit involving an automobile accident in Anchorage and related proceedings. This authorization of representation is for actions in his capacity as a Legislator and ratifies the authorization for representation previously provided by the Chair. Representative Herron further moved that Legislative Council authorize Legal Services' representation of the Alaska State Legislature and its members, staff, agencies, and divisions with regard to discovery requests in State v. McKesson Corporation, et. al., and related proceedings. This authorization of representation ratifies the authorization for representation previously provided by the Chair. Representative Peggy Wilson joined the meeting at this time. Chair Menard called the roll of members on teleconference (Senators Stevens and Thomas; Speaker Chenault and Representative P. Wilson) and there were no objections by those members present. The motion passed 9-0. 13. OFFICE ALLOWANCE  This item was moved to the bottom of the agenda. 14. RFP 569 - HOMER OFFICE SPACE APPROVAL  15. RFP 570 - EAGLE RIVER OFFICE SPACE APPROVAL  16. RFP 571 - STATUTE PUBLICATION CONTRACT APPROVAL  Representative Herron 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: Pam Varni, Cathy Tilton, Doug Gardner, Tina Strong and Pam Finley. The three items are RFP 569-Homer Office Space Approval, RFP 570-Eagle River Office Space Approval and RFP 571-Statute Publication Contract Approval. The Council went into Executive Session. 11:08:18 AM The Council came out of Executive Session. 11:23:57 AM Chair Menard asked for a combined motion for Items 14, 15 and 16. Representative Herron moved that Legislative Council award RFP 569 to Clayton and Joan Ellington for Homer office space for $72,564 per year plus CPI for a three year term; he moved that Legislative Council award RFP 570 to Rabah, LLC for Eagle River office space for a one-time payment of $95,000 for leasehold improvement costs approved by the Presiding Officers and a five-year lease term $73,800 per year plus CPI and; he said that, in consideration of the recommendation by Legislative Council's Statute Publication Subcommittee that Legislative Council award LexisNexis a contract in RFP 571 for Publication of the Alaska Statutes, and Legislative Council's further consideration of the terms, conditions and pricing in LexisNexis' proposal to provide statute publication services for six years, with the option for Legislative Council to extend the publication contract for three additional two-year terms, Council finds that awarding RFP 571 to LexisNexis is in the best interests of the State of Alaska, and will provide the Legislature, the public, Court System, and other government users of the Alaska Statutes with a fairly- priced, quality resource, and therefore, awards RFP 571 to LexisNexis. Representative Johnson joined the meeting at this time. Representative Johnson asked if this also includes electronic publication of the statutes or were we strictly talking about the publication of the hardbound books. Chair Menard stated that it was all inclusive. Representative Johnson asked if Council was in any way diminishing access or number of passwords or number of people who can access LexisNexis through this contract or will that remain the same as well. Chair Menard stated it will remain the same. Chair Menard called the roll of members on teleconference (Senators Stevens and Thomas; Speaker Chenault and Representatives P. Wilson and Johnson) and there were no objections by those members present. The motion passed 10-0. 11. CAPITOL BUILDING ENVELOPE CONSULTING SERVICES APPROVAL  (CONTINUED)  Chair Menard asked for the amended motion. Representative Herron provided clarification for those members on teleconference. He said Representative Stoltze drafted a proposed amendment. It was reviewed by people present in the room. He said he would state the amendment and then read the full motion. Representative Herron said the proposed amendment reads "The purpose of this contract is to advise the Legislature of potential life and/or health and/or safety concerns with the State Capitol Building located in Juneau, Alaska." Representative Herron moved that Legislative Council approve the contract and exemption justification with Paul Lukes: Building Envelope Consulting Services, LLC in the amount not to exceed $149,000 for Phase III Evaluation, Design Development and Construction Cost Estimating for Capitol Restoration. The purpose of this contract is to advise the Legislature of potential life and/or health and/or safety concerns with the State Capitol Building located in Juneau, Alaska. Discussion followed. Representative Peggy Wilson asked why the amendment was necessary. Chair Menard said that a member wanted to add a meaningful amendment to it. She offered to have the amendment restated. Representative Herron noted that the amendment dealt with the purpose of the contract and restated the amendment: "The purpose of this contract is to advise the Legislature of potential life and/or health and/or safety concerns with the State Capitol Building located in Juneau, Alaska." Representative Wilson said she would not remove her objection to the amended motion. She said they can do it with or without those comments so she doesn't think it's necessary for those comments to be added. Senator Stevens said he fails to see the need for the amendment. He asked Mr. Johnston if the amendment effects in any way what he expects to come out of this study. Mr. Johnston responded that he doesn't see how it would have any effect. He said we are asking for approval to enter into a contract with Paul Lukes Building Envelope Consulting Services, LLC, so it doesn't change the scope of his work or the contract at all. Alternate member Representative Bill Thomas joined the meeting at this time. Chair Menard stated for those on teleconference that there was agreement between Senator Egan and Representative Bill Stoltze that the amendment was acceptable. Discussion followed. Representative Herron noted there was a motion on the floor, which was stated earlier in the meeting. He said he proposed an amendment to that motion: "The purpose of this contract is to advise the Legislature of potential life and/or health and/or safety concerns with the State Capitol Building located in Juneau, Alaska." Senator Davis joined the meeting at this time. Chair Menard called the roll on the proposed amendment. YEAS: Stevens, Johnson, J. Thomas, Chenault, Davis, Holmes, Stoltze, Egan, Herron, Menard NAYS: P. Wilson Representative Bill Thomas did not respond to the roll call. The amendment passed 10-1. Chair Menard asked for the amended motion. Representative Herron moved that Legislative Council approve the contract and exemption justification with Paul Lukes: Building Envelope Consulting Services, LLC in the amount not to exceed $149,000 for Phase III Evaluation, Design Development and Construction Cost Estimating for Capitol Restoration. The purpose of this contract is to advise the Legislature of potential life and/or health and/or safety concerns with the State Capitol Building located in Juneau, Alaska. Chair Menard called the roll. YEAS: Davis, Holmes, Stoltze, Egan, Herron, Menard, Stevens, P. Wilson, Johnson, J. Thomas, Chenault NAYS: None The motion passed 11-0. Chair Menard tabled Item 13 - Office Allowance. The meeting was adjourned at 11:45 a.m. 11:44:08 AM