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