Notice having been duly given, the regular meeting of the South
Coast Air Quality Management District Board was held at District
Headquarters, 21865 E. Copley Drive, Diamond Bar, California.
Members present:
Supervisor Jon D. Mikels, Chairman
County of San Bernardino
Supervisor Michael D. Antonovich (arrived at 10:30 a.m.)
County of Los Angeles
Councilman Marvin Braude (arrived at 9:45 a.m.)
Cities of Los Angeles County - Western Region
Mayor Candace Haggard
Cities of Orange County
Hugh Hewitt
Governor's Appointee
Ms. Mee H. Lee
Senate Rules Committee Appointee
Mayor Ronald O. Loveridge
Cities of Riverside County
Councilman Leonard Paulitz
Cities of San Bernardino County
Supervisor James W. Silva
County of Orange
Councilwoman Nell Soto
Cities of Los Angeles County - Eastern Region
Supervisor S. Roy Wilson, Ed.D.
County of Riverside
Members Absent:
Dr. William Burke, Vice Chairman
Speaker of the Assembly Appointee
The meeting was called to order at 9:40 a.m. by Chairman Mikels.
CONSENT CALENDAR
1. Minutes of March 8, 1996 Board Meeting
2. Set a Public Hearing May 10, 1996 to Adopt Proposed Rule 1623
- Credits for
Clean Lawn and Garden Equipment
3. Set a Public Hearing May 10, 1996 to Amend Regulation III -
Fees
4. Set a Public Hearing May 10, 1996 to Amend Rule 1902 - Transportation
Conformity
5. Issue Supplemental Requests for Proposals for the Fiscal Year
1995-97 AB 2766
Discretionary Fund Work Program
6. Issue a Request for Proposals to Hire Outside Litigation Counsel
7. Amend Contracts with Telos Consulting Services and Mosakin
Corporation to
Increase the Funding for Systems Development Work
8. Amend Contract with Sierra Cybernetics to Increase Funding
to Develop Systems
for Electronic Permit Application Filing
9. Amend Contract with Shute, Mihaly & Weinberger for Continuing
Litigation
10. Amend Contract with Stradling, Yocca, Carlson & Rauth
for Specialized Legal Services
11. Execute a Contract to Cost-share the Development of the Interstate
Clean
Transportation Corridor
12. Execute a Contract to Cost-Share the Demonstration of Alternative
Fuel Vehicles
in a Rental Fleet Application
13. Execute a Contract to Cost-Share the Demonstration of Photovoltaic-Integrated
Roofs in a Residential Development
14. Execute a Contract to Cost-Share the Development and Demonstration
of an
Electric Water Delivery Truck
15. Purchase Low-Emission Vehicles and Two Electric-Assist Bicycles
16. Recognize and Appropriate Funds From the U.S. Environmental
Protection Agency
to the AQMD to be Used to Assist States in Developing Their Small
Business
Assistance Programs
17. Public Advisor's Report
18. Hearing Board Variances and Appeals
19. Rule Forecast
20. Lead Agency Projects and Environmental Documents Received
by the AQMD
21. Report on the Air Monitoring Program Modernization and Streamlining
Plan
22. Status Report Regarding Implementation of the "Business
Clean Air Partnership"
23. AQMD Funding Sources and Motor Vehicle Registration Fees Report
to CARB
for FY 1994-95
24. Report to the Legislature and the Air Resources Board on the
AQMD's
Regulatory Activities for Calendar Year 1995
ON MOTION OF MR. PAULITZ, SECONDED BY MR. SILVA, A UNANIMOUS VOTE
WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Braude,
Burke and Lee) APPROVING AGENDA ITEMS 1 THROUGH 16, 18 THROUGH
20, 23 AND 24 AS RECOMMENDED.
25. Items Deferred from Consent Calendar
Agenda Items 17, 21 and 22 were held for discussion.
17. Public Advisor's Report
22. Status Report Regarding Implementation of the "Business
Clean Air Partnership"
John Billheimer, Consultant, addressed the Board and suggested
that AQMD's Amnesty Program be continued for an additional six
months. He pointed out that the revenue to be gained by AQMD from
permit applications would probably far exceed any penalties that
might be exerted.
(Mr. Braude arrived at 9:45 a.m.)
21. Report on the Air Monitoring Program Modernization and Streamlining
Plan
Mr. Billheimer expressed his support for consolidating the air
monitoring stations, but suggested that there should be another
classification for monitoring stations that are located on the
borderlines of AQMD's jurisdiction and in transport corridors.
Nick Nikkila, DEO of Technical Support Services, reported briefly
on staff's proposed plan for modernizing and streamlining AQMD's
air monitoring network.
Mr. Braude expressed concern with the proposed elimination in
1998 of one of the two air monitoring sites in the City of Los
Angeles; and Mr. Nikkila agreed to work with Mr. Braude to resolve
that concern.
ON MOTION OF MR. HEWITT, SECONDED BY MS. HAGGARD, A UNANIMOUS
VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich,
Burke, Lee and Loveridge) TO RECEIVE AND FILE AGENDA ITEMS 17,
21 AND 22 AS RECOMMENDED.
BOARD CALENDAR
26. Administrative Committee
27. Legislative Committee
28. Mobile Source Committee
29. Stationary Source Committee
30. Technology Committee
31. Mobile Source Air Pollution Reduction Review Committee
32. Advisory Council Minutes of January 25, 1996 Meeting
ON MOTION OF MS. SOTO, SECONDED BY MR. HEWITT, A UNANIMOUS VOTE
WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Burke,
Lee and Loveridge) TO RECEIVE AND FILE AGENDA ITEMS 26 THROUGH
32 AND APPROVE THE FOLLOWING POSITIONS ON LEGISLATION, AS RECOMMENDED:
SB 2070 (Hurtt) -- County Opt-Out OPPOSE
SB 2130 (Hurtt) -- Deregulating Schools OPPOSE
AB 1240 (Bordonaro) -- Commercial Space Launch OPPOSE UNLESS
Exemption AMENDED
AB 1983 (Miller) -- Chlorofluorocarbons OPPOSE
AB 1996 (Margett) -- Air Conditioning Freon OPPOSE
SB 1817 (Hurtt) -- District Rule Consistency with
EPA OPPOSE
SB 1928 (Johnston) -- Alternative Methods of SUPPORT WITH
Compliance AMENDMENTS
SB 1941 (Dills) -- Market-Based Incentive Programs SUPPORT WITH
MINOR
AMENDMENTS
SB 2170 (Mountjoy) -- Market-Based Incentive OPPOSE UNLESS
Programs AMENDED
SB 2174 (Alquist) -- ARB Emissions Inventory SUPPORT WITH
Update AMENDMENTS
SB 1499 (Johnson) -- Inspection and Maintenance OPPOSE
33. Regulatory Reform Initiative - "Green Carpet" Priority
Permitting Service
David Schwien, Senior Air Quality Engineering Manager, reported
on the proposed pilot study to evaluate implementation of the
Board's Business Clean Air Partnership and Regulatory Reform Initiative
with respect to providing green carpet priority permitting service
to projects that meet certain environmental, technology or job
creation criteria.
Expressing her concern that there was not enough emphasis being
placed on training for inexperienced applicants, Ms. Soto asked
that such training be included in the proposed Green Team procedures.
Mr. Schwien indicated staff's agreement to make that modification.
At
Ms. Soto's suggestion, staff also agreed to provide the permit
applicants with forms for evaluating the green carpet program.
Bill Quinn of the California Council for Environmental and Economic
Balance, which worked with staff on developing details of the
pilot study, expressed their support for the proposed program
and urged the Board to approve staff's proposal.
ON MOTION OF MS. HAGGARD, SECONDED BY MS. LEE, A UNANIMOUS VOTE
WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Braude
and Burke) APPROVING THE PROPOSAL AND DIRECTING THE EXECUTIVE
OFFICER TO REPORT BACK TO THE BOARD UPON COMPLETION OF ONE YEAR
OF PROGRAM OPERATION WITH THE RESULTS OF THE PILOT STUDY, AS RECOMMENDED
BY STAFF.
Executive Officer James M. Lents, Ph.D. (i) commented that AQMD's
RECLAIM Program was awarded a Certificate of Appreciation by the
President's Council on Sustainable Development for providing a
program with national and international implications that will
benefit both the economy and the environment; and (ii) announced
the recent appointments of Dr. Chung Liu as Assistant DEO of Technology
Advancement and Joseph Contaoi as Director of Administrative and
Human Resources.
34. Further Discussion on Proposed Regulatory Reform Initiatives
Pat Leyden, DEO of Stationary Source Compliance, outlined the
actions staff will be taking for implementation of the four regulatory
reform initiatives proposed by Mr. Braude at the February 9, 1996
Board meeting: Develop Comprehensive Portable Engine Policy, Streamline
Certification and Transfer of Emission Reduction Credits, Eliminate
Duplicative Local, State and Federal Regulations, and Address
Suggestions for Improving RECLAIM Recordkeeping.
Noting the complexity of the issues involved, Mr. Braude commended
staff and expressed his appreciation to staff for moving forward
quickly with developing a concrete proposal to implement the proposed
reforms.
35. Analysis of AQMD Treasury Management Options
Rick Pearce, Director of Finance, reported on two treasury management
options available to the AQMD, including the costs and benefits
of implementing each option. Option I proposed maintaining the
Los Angeles County Treasurer as AQMD's Treasurer, but placing
approximately 85 percent of AQMD's investments into separate accounts
[the Local Agency Investment Fund (LAIF), which is managed by
the California State Treasurer, and Los Angeles County's Special
Purpose Investments (SPIs)] outside of the County's Pooled Surplus
Investment Portfolio ("the PSIP"). Option II proposed
appointment of a new internal Treasurer, establishment of an Investment
Oversight Committee, selection of a Financial Advisor, development
of an AQMD Investment Policy and Guidelines, selection of new
Banking and Custodial services, and selection of an Independent
Investment Management Firm.
Ms. Haggard, Mr. Hewitt and Mr. Silva expressed their support
for Option II, in light of Orange County's bankruptcy and speculation
of budgetary problems for Los Angeles County, and considering
the letter from outside counsel advising AQMD of the risks associated
with commingling of AQMD funds with County funds, should the County
file for bankruptcy. They each acknowledged that the situations
with Los Angeles County and Orange County are entirely different
and that the Los Angeles County fund is well-managed, but the
risk is still there; and it is the Board's responsibility to ensure
that as safe a basis as possible is provided for investment of
AQMD funds. Mr. Silva suggested that the oversight committee be
appointed by the Board and independent of staff, and that the
committee provide quarterly reports to the Board and conduct study
sessions as needed.
Mr. Antonovich and Mr. Paulitz expressed support for Option I.
Mr. Antonovich commented that any budget problems experienced
by Los Angeles County would not impact the County's investment
portfolio, and he believed it would be prudent for AQMD to stay
with
Los Angeles County where there would be experience and a cost
savings of nearly $200,000 compared to Option II. Mr. Paulitz
pointed out that Option I would take 85 percent of AQMD's fund
out of the PSIP--where the commingling occurs. He believed the
Board could preserve the better parts of both options, if an oversight
committee could be established under Option I.
In response to questions by Ms. Lee, Mr. Pearce clarified that
both treasury management options are similar in the amount of
money that would remain in the PSIP ($10 million to
$15 million) and in LAIF ($20 million). The difference is, under
Option I approximately $40 million would be moved outside of the
pool (PSIP) into a special program investment fund where the County
would make special purchases for AQMD, which would be placed in
a custodian bank. Under Option II, AQMD would take responsibility
for investing that same $40 million, through an investment management
firm, and would set up a custodian bank of its own, holding those
securities separately in AQMD's name.
With respect to establishing an oversight committee under Option
I, Mr. Pearce commented that the committee could provide guidance
to Los Angeles County with respect to the bulk of the funds--80
to 85 percent--that the County would be investing separately,
outside of the County pool. He noted the possibility of increased
costs, should the Board decide to modify Option I, in developing
a policy and investment guidelines as part of the oversight of
the committee. Ms. Lee suggested that the oversight committee
concept be incorporated under Option I.
Dr. Lents indicated that staff is neutral on this issue. Any bias
towards Option I that might exist is driven basically by the fact
that staff does not have the experience or training to handle
the investing. Therefore, whether the Board chooses Board members
or others for the Investment Oversight Committee, he did not think
it would be appropriate to include AQMD staff on the Committee.
MR. ANTONOVICH MOVED TO DIRECT STAFF TO:
1) IMPLEMENT OPTION I, PLACING APPROXIMATELY
85 PERCENT OF AQMD'S INVESTMENTS INTO SEPARATE ACCOUNTS OUTSIDE
OF THE PSIP (INTO LAIF AND THE COUNTY'S SPECIAL PURPOSE INVESTMENT
PORTFOLIO); AND
2) RETURN TO THE BOARD FOR SPECIFIC APPROVAL AUTHORIZING ESTABLISHMENT
OF AN INVESTMENT OVERSIGHT COMMITTEE.
THE MOTION WAS SECONDED BY MR. LOVERIDGE, AND FAILED, FOR A LACK
OF SEVEN CONCURRING VOTES, AS FOLLOWS:
AYES: Antonovich, Lee, Loveridge, Paulitz and Soto.
NOES: Haggard, Hewitt, Mikels, Silva and Wilson.
ABSENT: Braude and Burke.
MR. HEWITT MOVED TO DIRECT STAFF TO:
1) IMPLEMENT OPTION II, CREATING AN IN-HOUSE AQMD TREASURY MANAGEMENT
FUNCTION; AND
2) RETURN TO THE BOARD FOR SPECIFIC APPROVAL AUTHORIZING ESTABLISHMENT
OF AN INVESTMENT OVERSIGHT COMMITTEE, INITIATION OF THE SELECTION
OF A FINANCIAL ADVISOR, DEVELOPMENT OF AN AQMD INVESTMENT POLICY
AND GUIDELINES, INITIATION OF THE SELECTION OF NEW BANKING AND
CUSTODIAL SERVICES, INITIATION OF THE SELECTION OF AN INDEPENDENT
INVESTMENT MANAGEMENT FIRM, AND APPOINTMENT OF A NEW AQMD TREASURER.
THE MOTION WAS SECONDED BY MR. SILVA, AND FAILED, FOR A LACK OF
SEVEN CONCURRING VOTES, AS FOLLOWS:
AYES: Haggard, Hewitt, Mikels, Silva and Wilson.
NOES: Antonovich, Lee, Loveridge, Paulitz and Soto.
ABSENT: Braude and Burke.
MR. ANTONOVICH MOVED TO DIRECT STAFF TO:
1) IMPLEMENT OPTION I, PLACING APPROXIMATELY
85 PERCENT OF AQMD'S INVESTMENTS INTO SEPARATE ACCOUNTS OUTSIDE
OF THE PSIP (INTO LAIF AND THE COUNTY'S SPECIAL PURPOSE INVESTMENT
PORTFOLIO); AND
2) RETURN TO THE BOARD FOR SPECIFIC APPROVAL AUTHORIZING ESTABLISHMENT
OF AN INVESTMENT OVERSIGHT COMMITTEE.
THE MOTION WAS SECONDED BY MR. LOVERIDGE, AND PASSED BY THE FOLLOWING
VOTE:
AYES: Antonovich, Hewitt, Lee, Loveridge, Mikels, Paulitz, and
Soto.
NOES: Haggard, Silva and Wilson.
ABSENT: Braude and Burke.
Mr. Pearce presented a recommended schedule for implementation
of Option I, with the establishment of an oversight committee;
and recommended selection of a financial advisor to assist in
development of a policy and investment guidelines. Ms. Lee commented
that the oversight committee should also be involved in selection
of the financial advisor.
Chairman Mikels indicated that he would bring a recommendation
regarding appointments to the Investment Oversight Committee,
to include outside financial advisors in addition to Board members,
back to the Board at its May 10, 1996 meeting.
36. Enter into a Memorandum of Understanding Between the South
Coast Air Quality Management District and the Southern California
Association of Governments for Preparation and Implementation
of Revisions to the South Coast Air Quality Management Plan
Chung Liu, Assistant DEO of Technology Advancement, reported that
the proposed MOU between AQMD and SCAG for preparation and implementation
of future revisions to the AQMP addresses issues regarding scheduling
of product development efforts for the 1997 AQMP, designation
of lead agency responsibilities, and the process to resolve any
disputes between the AQMD and SCAG regarding plan development.
ON MOTION OF DR. WILSON, SECONDED BY MS. LEE, A UNANIMOUS VOTE
WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Braude, Burke,
Hewitt, Loveridge and Silva):
1) AUTHORIZING THE CHAIRMAN AND THE EXECUTIVE OFFICER TO EXECUTE
THE MOU BETWEEN THE SCAQMD AND SCAG FOR PREPARATION AND IMPLEMENTATION
OF REVISIONS TO THE SOUTH COAST AIR QUALITY MANAGEMENT PLAN; AND
2) AUTHORIZING THE CHAIRMAN TO APPOINT THREE GOVERNING BOARD MEMBERS
TO SERVE ON THE COORDINATING COMMITTEE, AS RECOMMENDED BY STAFF.
PUBLIC HEARINGS
37. Amend Rule 1303 - Requirements (New Source Review) and Rule
2005 - New Source Review for RECLAIM
Ms. Haggard commented that staff, local government representatives
and industry representatives have reached a compromise on an alternate
proposal on this particular issue; but staff has not yet received
EPA's approval of the alternate proposal as an approvable SIP
measure.
ON MOTION OF MS. HAGGARD, SECONDED BY MS. SOTO, A UNANIMOUS VOTE
WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Braude, Burke,
Hewitt, Loveridge and Silva) TO CONTINUE THE PUBLIC HEARING ON
RULES 1303 AND 2005 TO THE MAY 10, 1996 BOARD MEETING.
38. Amend the Control Measure Adoption Schedule for the 1994 State
Implementation Plan Submittal
Pat Leyden, DEO of Stationary Source Compliance, reported that
prior to EPA's approval of the 1994 AQMP and SIP submittal into
the State Implementation Plan, AQMD must submit a revised adoption
schedule for the 1994 SIP control measures contained in the 1996
Rule Forecast Report.
The public hearing was opened. There being no requests to address
the Board on this item, the hearing was closed.
ON MOTION OF MS. HAGGARD, SECONDED BY MR. HEWITT, A UNANIMOUS
VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Braude, Burke,
Loveridge and Silva) TO FORWARD THE AMENDED CONTROL MEASURE ADOPTION
SCHEDULE TO EPA FOR THE 1994 SIP SUBMITTAL, AS RECOMMENDED BY
STAFF.
Agenda Item No. 41 was taken out of order.
OTHER BUSINESS
41. Award Bid for a Child Care Management Firm
Joseph Contaoi, Director of Administrative and Human Resources,
presented staff's recommendation that National Pediatric Support
Services, Inc. be awarded the contract for management of the Diamond
Bar Child Care Facility. Dr. Lents noted that the contract for
this item is not paid with AQMD funds, but is paid by the individuals
who utilize the child care services provided by the facility.
ON MOTION OF MS. LEE, SECONDED BY MR. HEWITT, A UNANIMOUS VOTE
WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Burke and Wilson)
AWARDING THE BID TO NATIONAL PEDIATRIC SUPPORT SERVICES, INC.
TO OPERATE THE DIAMOND BAR CHILD CARE FACILITY, AS RECOMMENDED
BY STAFF.
PUBLIC HEARINGS (Continued)
39. Consider Amendments to Subparagraph (f)(7) of Rule 2202 -
On-Road Motor Vehicle Mitigation Options Pertaining to Fees for
the Air Quality Investment Program
Transportation Programs Director Catherine Wasikowski gave the
staff report. The public hearing was opened, and the Board heard
testimony from the following individual:
JON OWYANG, Market-Based Solutions, Inc.
Expressed concern that if AQMD continues to lower the AQIP fees,
it will impede the development of market-based programs in general.
Barry Wallerstein, DEO of Planning, Technology and Information
Management, responded that staff is monitoring this issue and
will continue to report back to the Board periodically, including
at the May 10, 1996 public hearing on Regulation III - Fees.
There being no further testimony, the public hearing was closed.
MR. PAULITZ MOVED TO MAINTAIN THE CURRENT FEE LEVELS FOR THE AIR
QUALITY INVESTMENT PROGRAM UNTIL FURTHER IMPLEMENTATION EXPERIENCE
IS GAINED, AS RECOMMENDED BY STAFF. THE MOTION WAS SECONDED BY
MS. SOTO, AND PASSED BY THE FOLLOWING VOTE:
AYES: Antonovich, Braude, Haggard, Hewitt, Lee, Loveridge, Mikels,
Paulitz, Soto and Wilson.
NOES: Silva.
ABSENT: Burke.
CLOSED SESSION
40. Closed Session to Consider Pending or Potential Litigation and Personnel Matters
The Board recessed to closed session at 11:25 a.m. as set forth below.
(i) Pursuant to Government Code Section 54956.9(a), to confer with its counsel regarding pending litigation which has been initiated formally and to which the District is a party. The titles of the litigation are:
Advincula et. al. vs. SCAQMD, Los Angeles County Superior Court,
Case No. BC 109296
San Bernardino Public Employees Association vs. SCAQMD, Los Angeles
County Superior Court, Case No. B5030398
(ii) Pursuant to Government Code Section 54957.6, to confer with
its Labor Negotiator:
Agency Negotiator: Nick Nikkila/Charles Goldstein
Employee Organization: Federation of Public Sector Workers
The Board reconvened at 12:10 p.m.
PUBLIC COMMENT PERIOD - (Public Comment on Non-Agenda
Items, Pursuant to Government Code Section 54954.3)
Mr. Egon Monostory of Mono-Tech Tool & Engineering Company
addressed the Board to express his concern regarding a neighboring
business, RC Finishing.
Mr. Monostory indicated that he has been bothered for a number
of years by coating fumes emanating from the RC Finishing facility.
In response to a recent nuisance complaint which he made to the
AQMD regarding the fumes, an AQMD Inspector visited the site;
but did not issue a Notice of Violation to RC Finishing for causing
a public nuisance, as Mr. Monostory believes should have been
done. Instead, the company was issued a Notice of Violation for
operating equipment without an AQMD permit.
Peter Mieras, District Prosecutor, responded that the AQMD Inspector
responding to Mr. Monostory's complaint was unable to detect the
odor, nor was the inspector able to locate anyone else in the
area other than Mr. and Mrs. Monostory who were affected by the
alleged odor. The inspector did, however, discover that RC Finishing
had allowed their AQMD permit for a spray booth being operated
at the facility to elapse, and therefore issued the Notice of
Violation referred to by Mr. Monostory in his comments.
Mr. Mieras informed Mr. Monostory that RC Finishing submitted
a permit application to the AQMD, which is presently being evaluated
by staff, and a determination will be made in the near future
as to whether or not a permit will be issued. He assured Mr. Monostory
that he will be notified personally of staff's determination.
If the AQMD decides to issue the permit, he explained, Mr. Monostory
would have ten days from the time he receives notification of
such to appeal the AQMD's decision before the Hearing Board pursuant
to Section 42302.1 of the California Health and Safety Code. He
suggested that Mr. Monostory contact the Clerk of the Board for
the necessary forms and instructions, should he decide to appeal
AQMD's issuance of the permit to RC Finishing.
ADJOURNMENT
The meeting was adjourned by Chairman Mikels at 12:15 p.m.
The foregoing is a true statement of the proceedings held by the
South Coast Air Quality Management District Board on April 12,
1996.
Respectfully Submitted,
SAUNDRA McDANIEL
Senior Deputy Clerk
Date Minutes Approved: _______________________
___________________________________________
Jon D. Mikels, Chairman
AB = Assembly Bill
AQIP = Air Quality Investment Program
AQMD = Air Quality Management District
AQMP = Air Quality Management Plan
ARB = Air Resources Board
DEO = Deputy Executive Officer
EPA = Environmental Protection Agency
FY = Fiscal Year
NOx = Oxides of Nitrogen
RECLAIM = REgional CLean Air Incentives Market
SCAG = Southern California Association of Governments
SIP = State Implementation Plan
SOx = Oxides of Sulfur