ALASKA STATE LEGISLATURE  LEGISLATIVE COUNCIL    AUGUST 28, 2023  2:00 PM    MEMBERS PRESENT  Senator Elvi Gray-Jackson, Chair  Representative Kevin McCabe, Vice Chair  Senator Click Bishop  Senator Matt Claman  Senator Jesse Kiehl  Senator Bert Stedman (alternate)  Senator Gary Stevens  Representative Bryce Edgmon  Representative Sara Hannan  Representative Craig Johnson  Representative George Rauscher  Representative Dan Saddler  Representative Cathy Tilton    MEMBERS ABSENT  Senator Lyman Hoffman  Senator Donny Olson    AGENDA  APPROVAL OF AGENDA  APPROVAL OF MINUTES  CONTRACT APPROVALS  COMMITTEE BUSINESS EXECUTIVE SESSION  OTHER COMMITTEE BUSINESS    SPEAKER REGISTER  Jessica Geary, Executive Director, Legislative Affairs  Agency (LAA)  JC Kestel, Procurement Officer, LAA  Rayme Vinson, Chief of Security, LAA (Executive Session)  I. CALL TO ORDER    2:02:56 PM  CHAIR GRAY-JACKSON called the Legislative Council meeting  to order at 2:03 pm on August 28, 2023. Present at the call  were: Senators Bishop, Claman, Gray-Jackson, Kiehl,  Stedman; Representatives Edgmon, Hannan, Johnson, McCabe,  Rauscher, Saddler, Tilton.    Twelve members present at the call.    Senator Stevens joined the meeting at 4:32 pm.    II. APPROVAL OF AGENDA    2:04:31 PM  VICE CHAIR MCCABE moved that Legislative Council approve  the agenda as presented.    The agenda was approved without objection.    III. APPROVAL OF MINUTES    2:04:52 PM  VICE CHAIR MCCABE moved that Legislative Council approve  the minutes for April 18, 2023, as presented.    The minutes were approved without objection.    IV. CONTRACT APPROVALS    a. Anchorage Legislative Office Building (ALOB) Building  Contracts    i. Janitorial Contract Renewal    2:05:15 PM  VICE CHAIR MCCABE moved that Legislative Council approve  Renewal Number 2 of the contract for janitorial services  with Q1 Services, LLC, in the amount not to exceed $56,000.    CHAIR GRAY-JACKSON objected for the purpose of discussion  and asked Mr. Kestel to speak to this item.    JC KESTEL, Procurement Officer (LAA), said contract Renewal  Number 1 with Q1 Services, LLC for janitorial services at  the ALOB expires August 31, 2023. The second renewal option  is for the period of September 1, 2023, through August 31,  2024. If approved, there would be three one-year renewal  options remaining before a new solicitation must be issued.    There was no discussion and Chair Gray-Jackson removed her  objection.    2:07:10 PM  A roll call vote was taken.    YEAS: Senators Bishop, Claman, Gray-Jackson, Kiehl,  Stedman; Representatives Edgmon, Hannan, Johnson, McCabe,  Rauscher, Saddler, Tilton    NAYS: None    The motion passed 12-0.    ii. Snow Removal Contract Renewal     2:07:50 PM  VICE CHAIR MCCABE moved that Legislative Council approve  Renewal Number 2 of the contract for snow removal services  at the Anchorage Legislative Office Building with Kelly  Incorporated, dba A-1 Lawn and Landscaping, in an amount  not to exceed $65,000.    CHAIR GRAY-JACKSON objected for the purpose of discussion  and asked Mr. Kestel to speak to this item.    MR. KESTEL stated that this was the second contract renewal  for snow removal services; and the Agency has been  satisfied with the contractor's services thus far. Renewal  Number 2 is for the period of October 5, 2023, through  October 4, 2024, and would leave the Agency with three one- year renewal options.    REPRESENTATIVE SADDLER asked if the contract amount was a  flat rate for snow removal for the year or was there  opportunity for overages if it was a heavy snowfall year.    MR. KESTEL stated the contractor bills an hourly rate for  required services, including snow removal, sanding, and de- icing in addition to plowing. If the total amount of all  snow removal services exceeds the contract limit of $65,000  for the year, there would be additional charges. In  response to a follow-up question by Representative Saddler,  he confirmed that if it was a light snow year, the total  amount spent for snow removal services could be less than  $65,000; and any unspent funds would be returned to the  budget for ALOB operations.    There was no further discussion and Chair Gray-Jackson  removed her objection.    2:11:08 PM  A roll call vote was taken.    YEAS: Senators Bishop, Claman, Gray-Jackson, Kiehl,  Stedman; Representatives Edgmon, Hannan, Johnson, McCabe,  Rauscher, Saddler, Tilton    NAYS: None    The motion passed 12-0.    b. Kodiak LIO Lease Renewal     2:11:57 PM  VICE CHAIR MCCABE moved that Legislative Council approve  Renewal Number 1 of the lease extension for Kodiak office  space in the amount of $69,979.56.    CHAIR GRAY-JACKSON objected for the purpose of discussion  and asked Mr. Kestel to speak to this item.    MR. KESTEL stated that this is the first renewal of the  lease extension for the Kodiak office space for the period  of November 1, 2023, through October 31, 2024. If approved,  there would be four one-year renewal options remaining  before a new solicitation would have to be issued.    VICE CHAIR MCCABE asked if there was a Request for  Proposals (RFP) performed for the Kodiak office space, and  if so, how many proposals were received.    MR. KESTEL said he believed the RFP for Kodiak office space  was conducted in 2011, which was before his time as  procurement officer, so he would need to get back to the  Committee with that answer. He said what is currently  before Council is the first renewal of a lease extension  for this facility.    VICE CHAIR MCCABE followed up to ask for confirmation that  because this was a lease extension, no RFP was required.    MR. KESTEL confirmed that RFPs were not required for lease  extensions, which are instead determined by a fair market  value analysis conducted by a third-party broker. The  Agency is statutorily required to obtain ten percent below  market value to proceed with a lease extension offer to the  lessor. When the lease extension was authorized by  Legislative Council five years ago, LAA obtained ten  percent below the market value of office space lease rates  in that area. As a result of recent consumer price index  (CPI-U) increases, which are based on the rate of  inflation, there has been a slight increase in office space  lease costs statewide. Legislative leases are calculated to  include an annual adjustment based on annual CPI-U rates.    Mr. Kestel, in response to a follow-up question by Vice  Chair McCabe, stated that the building is owned by Trident  Seafoods Corporation.    There was no further discussion and Chair Gray-Jackson  removed her objection.    2:16:02 PM  A roll call vote was taken.    YEAS: Senators Bishop, Claman, Gray-Jackson, Kiehl,  Stedman; Representatives Edgmon, Hannan, Johnson, McCabe,  Rauscher, Saddler, Tilton    NAYS: None    The motion passed 12-0.    V. COMMITTEE BUSINESS EXECUTIVE SESSION    2:16:57 PM  VICE CHAIR MCCABE moved and asked unanimous consent that  Legislative Council go into Executive Session under Uniform  Rule 22(B)(1), discussion of matters, the immediate  knowledge of which would adversely affect the finances of a  government unit, and 22(B)(3), discussion of a matter that  may, by law, be required to be confidential. The following  individuals may remain in the room or online during  Executive Session: Jessica Geary, Emily Nauman, Molly  Kiesel, JC Kestel, Rayme Vinson, Alex Fredrick, Megan  Wallace, Matt Simpson, Ernest Daigle, any legislators not  on Legislative Council, and any staff of Legislative  Council members.    2:17:42 PM  A roll call vote was taken.    YEAS: Senators Bishop, Claman, Grey-Jackson, Kiehl,  Stedman; Representatives Edgmon, Hannan, Johnson, McCabe,  Rauscher, Saddler, Tilton    NAYS: None    The motion passed 12-0    2:18:00 PM  Council went into Executive Session.    4:09:51 PM  Council came out of Executive Session.    A roll call vote was taken to establish a quorum.    YEAS: Senators Bishop, Claman, Gray-Jackson, Kiehl,  Stedman; Representatives Edgmon, Hannan, Johnson, McCabe,  Rauscher, Saddler, Tilton.    Twelve members present.    a. RFP Assembly Building Furnishings    4:10:43 PM  VICE CHAIR MCCABE moved that Legislative Council approve  the award of RFP 662 - Assembly Building Apartments  Furnishings to Capital Office Systems not to exceed  contract value of $734,465.    CHAIR GRAY-JACKSON objected for the purpose of discussion  and asked Ms. Geary and Mr. Kestel to speak to this item.    JESSICA GEARY, Executive Director (LAA), stated that the  overall Assembly Building project is slightly ahead of  schedule and slightly under budget. In a recent tour of the  building, she noted the third floor was fully sheet-rocked  and painting had started; and she was available for  questions about the overall construction project.    REPRESENTATIVE RAUSCHER expressed his appreciation for all  the hard work that has gone into this project.    CHAIR GRAY-JACKSON asked for the record what would happen  if Council did not approve this contract.    MS. GEARY said at this point, if it was acceptable to the  Chair, it might be helpful for Mr. Kestel to first briefly  speak to the RFP, then discuss what would happen if the RFP  was not awarded.    MR. KESTEL stated that the Agency issued RFP 662 on August  1, 2023, to solicit furnishings for the Assembly Building  Apartments. The Agency published the RFP on the State  online public notice site, as well as contacting several  dealers throughout the state. When RFP 662 closed on August  22, 2023, only one proposal was received that was  considered responsive to the RFP and it was scored by the  Performance Evaluation Committee (PEC) to ensure it met all  requirements and intent of the RFP. The PEC recommended the  award of that contract to Capital Office Systems for the  furnishings.    Mr. Kestel, in response to Vice Chair McCabe, said that a  total of two proposals were received; however, one proposal  was received after the RFP deadline and Legislative  Procurement Procedures prohibits consideration of late  proposals. RFP 662 had a 21-day solicitation period that  closed August 22.    MS. GEARY stated that failure to award this contract to  Capital Office Systems would result in the Agency having to  essentially throw this procurement away and go back out to  bid. She said there is the possibility that, after award of  the contract, the Agency may be able to negotiate with the  contractor to work to lower the price per some item and/or  reduce the item list; however, she cautioned that the bid  submitted is based on purchasing 484 items so reducing the  number of items could result in an increase in price per  item. She asked Mr. Kestel if he had anything useful to  add.    MR. KESTEL stated that in his experience there are only one  or two vendors in the state capable of projects like this,  and only one of them submitted a proposal for this project;  so if the Agency were to re-solicit, the outcome would be  similar. He added that if a new solicitation were required,  furnishings would not be received before the start of  session.    REPRESTATIVE HANNAN, expressing her support for the motion,  stated that it is critical that the 33 apartments are ready  for occupancy on the first day of session, to include  furnishings, otherwise the units won't be rented by those  for whom the building was intended. She said the Juneau  Community Foundation gifted this building to lessen the  burden of finding housing for those who serve in the  Legislature, both elected officials and their staff, who  migrate to Juneau for up to five months each session. She  concluded that this vote is important to take, and the  purchase of furniture needs to go forward for our  investment and to be able to serve us as we hoped.    SENATOR CLAMAN called the question.    4:20:18 PM  Council took a brief at-ease.    4:23:28 PM  Council returned from at-ease. Senator Claman withdrew his  calling of the question.    VICE CHAIR MCCABE, after confirmation by Ms. Geary that the  Legislature has approximately 250 employees, estimated that  around 310 people would potentially be eligible for an  apartment in this building, which means that less than ten  percent could be accommodated. He said at a cost of  $750,000 he was not sure the expense for furniture was a  sound return on investment or that this was an appropriate  use of state funds.    REPRESENTATIVE EDGMON said that this process is fairly far  along, and he was unsure if a second solicitation would  provide different results. He asked if Council could table  this motion for now or perhaps request a second RFP, though  there might not be time for that.    REPRESENTATIVE SADDLER suggested cutting items that may not  be essential from the list to reduce costs.    CHAIR GRAY-JACKSON asked Mr. Kestel to comment on the  process related to reissuing the RFP.    MR. KESTEL stated that reissuing an RFP would take a couple  of weeks to prepare. The RFP would then need to be posted  for 21 days unless otherwise authorized to shorten that  time. Once the solicitation period ended, there would be an  additional one to two weeks for the PEC to evaluate the  proposals, then Council would need to meet to consider and  potentially award a contract. He concluded by saying that  during the process for this RFP, vendors indicated that  furniture orders would need to be placed by mid-September  to ensure receipt of the items in December.    CHAIR GRAY-JACKSON asked Ms. Geary her thoughts regarding  Representative Saddlers remarks.    MS. GEARY said the question would be if the Agency would be  able to renegotiate with the vendor to reduce the scope  without first awarding the contract. She asked Mr. Kestel,  or perhaps Ms. Nauman, or Ms. Wallace to speak to what  might be possible.    MR. KESTEL responded that typically the ability to  negotiate needs to be written into the RFP for negotiations  to be allowable; in this particular RFP, that option was  not included. Changing the terms of the RFP after a  contract is awarded could result in challenges and  potential lawsuits.    4:31:54 PM  Council took a brief at-ease.    4:33:24 PM  Council returned from at-ease.    Senator Stevens joined the meeting at 4:32pm. Seeing and  hearing no further discussion, Chair Gray-Jackson removed  her objection.    4:33:33 PM  A roll call vote was taken.    YEAS: Senators Bishop, Claman, Gray-Jackson, Kiehl,  Stedman, Stevens; Representatives Edgmon, Hannan    NAYS: Representatives Johnson, McCabe, Rauscher, Saddler,  Tilton    The motion passed 8-5.    b. RFQ 665 Assembly Building Window Coverings    4:34:51 PM  VICE CHAIR MCCABE moved that the Legislative Council  approve the award of RFQ 665 - Assembly Building Apartments  Window Shades to Don Abel Building Supply Incorporated with  a not-to-exceed contract value of $74,750.    CHAIR GRAY-JACKSON objected for the purpose of discussion  and asked Mr. Kestel to speak to this item.    MR. KESTEL stated that RFQ 665 was issued to secure window  shades for the Assembly Building Apartments. On August 4,  2023, LAA published RFQ 665 on the State's public notice  site and emailed it to several known contractors in the  state. On August 28, 2023, RFQ 665 closed with three bids  received: Dawson Construction, Don Abel Building Supply,  and Premier Construction, LLC. The RFQ evaluation was based  on best total price on all work products combined. Each bid  was evaluated to ensure it met the minimum requirements,  and Don Abel Building Supply was determined to have  submitted the lowest bid; therefore, it is recommended  Council award RFQ 665 to Don Abel Building Supply.    REPRESENTATIVE RAUSCHER stated his support for this item.    There was no further discussion and Chair Gray-Jackson  removed her objection.    4:37:06 PM  A roll call vote was taken.    YEAS: Senators Bishop, Claman, Gray-Jackson, Kiehl,  Stedman, Stevens; Representatives Edgmon, Hannan, Johnson,  McCabe, Rauscher, Saddler    NAYS: Representative Tilton    The motion passed 12-1.    VI. PRINT SHOP POLICY DISCUSSION    CHAIR GRAY-JACKSON said that this item is on the agenda at  the request of House Rules Chair Representative Johnson for  discussion and consideration by Legislative Council. She  said she looks forward to hearing Representative Johnson's  suggestions and the initial thoughts of the members. She  said it was her intent to listen, to learn, and to work  with members to determine whether to proceed with a change  to the Print Shop policy at a future meeting.    REPRESENTATIVE JOHNSON said that for the sake of  transparency when something is printed by the Print Shop it  should indicate that it was paid for with State funds,  specifically member newsletters and perhaps other  documents. He explained that it was not always clear who  paid for a publication, which should be transparent. He  said he would like Council to consider and provide  guidance, whether that be to revise the policy or to  continue with the status quo, as that would be beneficial  to the Rules Chairs, both current and in the future.    DISCUSSION FOLLOWED regarding what types of documents  should have a disclaimer; the format of the disclaimer; and  the verbiage of disclaimer, such as "Paid for with State  Funds", "Paid for by the Office of?", and/or "Printed by  the Legislative Print Shop.    CHAIR GRAY-JACKSON thanked Representative Craig Johnson for  bringing this matter forward and agreed to include a  proposal to amend the Print Shop policy for consideration  at a future meeting. She then asked if members had anything  to discuss prior to adjourning.    REPRESENTATIVE RAUSCHER expressed his frustration with the  affidavit requirement for transporting personal items  between district and the Capital City. He also proposed  increasing office allowance accounts for those legislators  with districts that are geographically big, and for which  travel to meet with constituents was expensive.    CHAIR GRAY-JACKSON, after a brief discussion of the issues,  suggested making the proposal to increase office allowance  accounts a topic for a future meeting.    VICE CHAIR MCCABE expressed frustration with the RFP  process for the furniture, specifically the expense and  timing.    CHAIR GRAY-JACKSON asked Mr. Kestel if he would like to  respond.    MR. KESTEL said he understood Vice Chair McCabe's  frustration with the process and vowed to do what he could  to ensure the next RFP was conducted in a timelier manner.    MS. GEARY added that it took the Agency a long time to get  room dimensions and information back from the design team,  so it was not for lack of trying to accomplish this sooner.  She said she understood Vice Chair McCabe's frustrations  and apologized for the unavoidable delays.    VII. ADJOURN    CHAIR GRAY-JACKSON thanked Legislative Council members, LAA  staff, the subcommittee chairs, and her Council aide for  all their work.    With no further business before the committee, the meeting  was adjourned at 4:58 PM.    4:58:31 PM