Legislative Council delays extra $8,580 for managing lawmakers' Juneau apartments

The Alaska Legislative Council voted 8-0 on Wednesday to put off until December an $8,580 increase for the company that manages the Legislature's Assembly Building apartments in Juneau, after Rep. Louise Stutes of Kodiak called the cost excessive.

Some lawmakers live in the apartments during session. TNT Realty, doing business as Juneau Real Estate, manages them under a two-year contract worth about $172,500, or roughly $86,000 a year, that runs through November 2027. The increase would bring it to about $181,100.

The contract pays the company about $8,976 a month during regular and special sessions and about $4,687 in interim months, when the units sit mostly empty, according to Procurement Officer JC Kestel's memo. The interim fee covers inspections, maintenance and getting units ready for the next session, Kestel said.

The contract budgeted for one special session a year. The Legislature held three this summer, and members lived in the units, so the company had to run the building as it does in session, said Chair Sara Hannan. Two months that were priced at the interim rate were billed at the session rate instead, and the increase covers the difference.

Stutes and Sen. Elvi Gray-Jackson both praised the company's work. But Stutes, who said she has owned and managed apartments for years, said she had thought the original contract was excessive when she voted for it, and that this amount was too. She said she would vote no.

At first, Stutes understood the $172,500 to cover only the session months. When Kestel said it covered two full years, she pressed him on why more money was needed. "We either have a 2-year contract or we don't," she said. Jessica Geary, executive director of the Legislative Affairs Agency, said staff wanted to cover existing obligations and get ahead of any more special sessions.

Hannan then moved to table the item until the council's December meeting. Stutes said she had been about to suggest the same thing so she would have time to understand the billing.