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BOARD MEETING DATE: May 11, 2001 AGENDA NO. 27




REPORT: 

Administrative Committee

SYNOPSIS: 

The Administrative Committee met Friday, April 13, 2001, and reviewed the proposed agenda for the May 11, 2001, Board meeting. The Committee also discussed various issues detailed in the Committee report. The next Administrative Committee meeting is Friday, May 18, 2001, at 9:30 a.m. in Conference room CC-8.

RECOMMENDED ACTION:

Receive and file.

Norma J. Glover, Chair
Administrative Committee

Attendance: Present were Committee Chair Norma Glover, Chairman Burke, and Board Members Ronald Loveridge and Beatrice LaPisto-Kirtley. Also in attendance was Board Member Roy Wilson (via videoteleconference). Absent was Board Member Hal Bernson. Chair Glover appointed Dr. Burke as an ad hoc Committee Member for this meeting only.

DISCUSSION ITEMS:

  1. Board Member Concerns: Chair Glover requested an update on the number of Executive Orders that have been issued regarding the energy crisis; Dr. Wallerstein replied there have been six.

  2. Chairman’s Report of Approved Travel: Barry Wallerstein, Executive Officer, reported that Chairman Burke approved the following travel: Leonard Paulitz and Cynthia Verdugo-Peralta to attend the Fuel Cell Partnership Steering Committee meeting in Sacramento, CA on April 22-25; and Cynthia Verdugo-Peralta to attend the Early Markets for Stationary Fuel Cells Conference in Seattle, WA on May 20-22. Moved by Loveridge, seconded by LaPisto-Kirtley, and unanimously recommended for approval.

  3. Approval of Compensation for Board Member Assistant(s): Mayor Loveridge has requested approval of an additional Board Assistant, Alexa Washburn, making her appointment retroactive to April 12. Dr. Wallerstein stated that Ms. Peralta has requested Rhonda Reyes’ hourly contract amount be increased within the band of salary range for Board Assistants, which will still be under $25/hour. Moved by LaPisto-Kirtley, seconded by Wilson, and unanimously recommended for approval.

  4. Out-of-Country Travel: Dr. Wallerstein reported that Chairman Burke approved the following out-of-country travel: Drs. Burke and Wallerstein to attend the Montreux Energy Roundtable XII Conference in Switzerland on May 28-30; which will assist AQMD in recruiting for the November International Conference and to discuss energy supply around the globe. Board Member Jane Carney to attend the 11th Canadian Hydrogen Conference titled "Building the Hydrogen Economy" in Victoria, B.C. in June 17-20. During the meeting, it was requested that Board Member Bea LaPisto-Kirtley attend the Energy Conference in Switzerland the latter part of May, which was also approved. Chair Glover requested Dr. Wallerstein provide the Committee Members in a future meeting with an update on the status of the International Conference to be held offsite in November. Moved by Glover, seconded by LaPisto-Kirtley, and unanimously recommended for approval. Subsequent to the Committee meeting, it was determined that Board Member LaPisto-Kirtley and Dr. Wallerstein could not attend the above Energy Conference due to scheduling conflicts.

APRIL AGENDA ITEMS

  1. Appropriate Funds from Undesignated Fund Balance to Prepare CEQA Documentation for Los Angeles Department of Water and Power Valley Generating Station Repowering Project: Elaine Chang, Acting DEO, Planning, Rule Development & Area Sources, stated that staff is requesting $150,000 be appropriated from the undesignated fund to prepare an EIR and expedite the review process on a project to repower a generating station; this amount will be reimbursed by LA DWP. Dr. Burke questioned the status of the contractor working with LA DWP. Dr. Wallerstein explained that the Board has previously approved a number of level-of-effort contracts to review LA DWP projects when EIRs are required. The contractor currently being used provides excellent work, and several energy crisis projects have received necessary review in a short amount of time. Moved by Loveridge, duly seconded and unanimously recommended for approval.

  2. Approve Classification Recommendations and Add and Delete Positions: Ms. Tharp explained that nine clerical positions are being recommended to be reclassified at an annual cost of $32,000 based on a consultant-conducted study. The action would also eliminate a Contracts Technician position and replace it with a Staff Specialist position because of the evolved duties related to the position, which are comparable to the MSRC-related contracts position. Chair Glover asked if the Staff Specialist would be involved with Rule 1195 contracts. Rick Pearce, Chief Financial Officer, answered that this position was vacated by Dana Wilson, who retired at the end of March. The Staff Specialist would assist the Procurement Manager with the negotiations of the more routine non-purchase order contracts, thereby eliminating the workload in that area and allowing the Procurement Manager to deal with more complex contracts and issues. Moved by Wilson; duly seconded and unanimously recommended for approval.

  3. Execute Contracts to Fund Marine Vessel Repower Projects under AES Settlement Allocation for AQIP and Establish the AES Settlement Projects Fund: Chung Liu, DEO/Science & Technology Advancment, stated that the Board approved the allocation of the $17 million AES Settlement during the March 16 Board meeting, which would provide $2 million for AQIP prefunding for RECLAIM for the marine vessel project through the Carl Moyer Program. Dr. Burke asked how AQMD selects which commercial vessels are chosen to receive these engines. Dr. Liu answered that the engines would be awarded according to emission reductions calculated. Dr. Wallerstein explained that the process would utilize Carl Moyer Program calculation procedures in determining emission reductions associated for the operation of the vessel and generating an amount of potential emission reduction credits. The Board will, at its May 11 meeting, see a proposed new rule that would specify the rule language and how calculations are done. Staff is requesting Board approval for the funding, but will not enter into a contract unless the emission reduction credits are approved as usable. Chair Glover asked if ARB had concerns regarding surplus emissions and Dr. Wallerstein answered there is concern, but contracts will not be entered into unless there is certainty in generating surplus credits. Moved by Wilson, seconded by LaPisto-Kirtley, and unanimously recommended for approval.

  4. Authorize Purchase and Installation of MicroTurbines from AES Settlement Fund: Dr. Liu explained that this project would cover the non-Los Angeles areas of the South Coast Basin and authorize the agency to provide $1.8 million for 30 kw or and 60 kw units. Dr. Burke expressed his concern regarding the expeditious purchase and installation of these microturbines (desired within 30 days of Board approval). Dr. Wallerstein stated that because of the energy crisis, the units should be deployed immediately, and that the Orange, Riverside, and San Bernardino County Board Members have been solicited for their input regarding the sites where these microturbines could be located. Dr. Burke added that his understanding is that only 4,000 units will be manufactured this year. Moved by Glover, seconded by Loveridge, and unanimously recommended for approval.

  5. Issue RFP for Community Outreach Program Assistance: Oscar Abarca, Assistant DEO/Public Affairs, stated that the Board has allocated $1.5 million for outreach to be conducted over a two-year period in the African-American, Hispanic, and Asian communities by issuing an RFP to be reviewed by the Administrative Committee. Dr. Burke asked who would determine who the panel members would be to review the RFPs, and Dr. Wallerstein answered that three internal individuals and one external individual would review the proposals. Ms. LaPisto-Kirtley expressed her desire to have a video prepared for this outreach program instead of distributing publications and asked how the results would be evaluated. Mayor Loveridge asked how this success would be evaluated. Dr. Wallerstein stated that the jobs would by task and if the consultant is not performing adequately, additional tasks would not be assigned to that consultant. Mr. Abarca stated that the RFP identifies how the efforts would be evaluated in partnership with community-based organizations. Chair Glover, Mayor Loveridge, and Dr. Burke requested that Dr. Wallerstein and Mr. Abarca explain in detail to the Governing Board Members what is sought to be accomplished with this outreach program and what sensitive issues need to be addressed, along with task orders to be performed. Dr. Burke suggested locating other moneys in the budget to prepare a video in different languages in order not to divert from the core purpose of the program, which is to empower communities to participate in policymaking. The motion to issue RFP was moved by Glover, seconded by LaPisto-Kirtley, and unanimously recommended for approval.

MAY AGENDA ITEMS

  1. Adopt Executive Officer’s FY 2001-02 AQMD Budget and Work Program: Mr. Pearce explained that a Governing Board Budget Workshop is scheduled for May 4, and that this is the first time AQMD has been able to propose a balanced budget. Mr. Pearce explained that several workshops have been held with public and committees to review the information presented here. Previously there were 772 positions budgeted, but due to the subvention funds received, a resurgence in recruitments have occurred which will increase the number of AQMD employees to 809 with a $95.9 million budget. Mr. Pearce stated that the budget will include implementing fleet rules and SIP; updating the AQMP in October; reducing the permit backlog; continuing the implementation of the Board’s initiatives on Environmental Justice, Seniors Initiatives, and Children’s Air Quality Agenda; addressing the energy crisis; and continued improvement of efficiency and productivity. Dr. Wallerstein explained that several Board Members have requested staff to restructure fees to increase revenues in order to produce a balanced budget. Dr. Burke commended staff for what he described as best budget that has been provided in the seven years since his tenure began. Dr. Burke requested Mr. Pearce prepare a pie chart showing the largest emission fee payors prior to the April 20 meeting. Moved by LaPisto-Kirtley, seconded by Burke, and unanimously recommended for approval.

  2. Amend Regulation III – Fees: Laki Tisopulos, Planning Manager, explained that the fee rates would recover program costs through: a 3.7% CPI fee increase, adjustments to permit processing fees that reflect findings of the Time-Tracking Study; an annual emission fee of $75 per facility; and inclusion of unpermitted emissions in the fee calculation for larger emitters. These actions would enable AQMD to recover $3.3 million in additional revenues in the first year and $5 million in the second year. Moved by LaPisto-Kirtley, seconded by Burke, and unanimously recommended for approval.

  3. Approve Salary and Benefit Adjustments for Noncontract Management, Confidential, and Attorney Employees: Ms. Tharp stated that the Executive Officer is recommending a 2.5% salary adjustment for noncontract management, confidential, and attorney employees, along with an increase of 20 hours of vacation sellback in recognition that employees, due to their workload and schedules, may not be able to utilize their vacation time. This is consistent with adjustments approved for union represented employees resulting in an annual cost of $316,000. Moved by Loveridge, seconded by LaPisto-Kirtley, and unanimously recommended for approval.

  4. Appoint Medical, Public, and Alternate Members to AQMD Hearing Board: Jackie Dix, Clerk of the Board, stated that this item will be continued to the June Board agenda.

  5. Execute Contract to Purchase Business Computer Hardware Upgrade: Chris Marlia, Assistant DEO/Information Management, explained that this item is to upgrade the AQMD’s computer servers, including a processor upgrade from 300 to 700 megahertz, and a memory upgrade from 2 to 10 gigabytes for various systems, including finance and permit streamlining activities. Moved by Burke, seconded by LaPisto-Kirtley, and unanimously recommended for approval.

  6. Audit Report of AB 2766 Fee Revenue Recipients for FYs Ending June 30, 1998 and 1999, and Set Public Hearing July 20, 2001 Regarding Final Resolution of Unresolved Audit Findings and Recommendations: Mr. Pearce stated AQMD hires an independent auditor to review the AB2766 fee revenues on a biennial basis. The AQMD had one finding regarding the improper recording of $6,453 out of the $96 million received, which has been corrected, along with the procedures being corrected. The MSRC had no findings. The cities and counties are audited, a total of 19 findings were made which has been corrected except one. Ms. LaPisto-Kirtley asked who accounts for moneys not being correctly paid, and Mr. Pearce replied that AQMD ensures that moneys are either reimbursed to the AB2766 account or the entity forfeits the dollars in future payments. A separate report is prepared by Mr. Abarca’s office, which lists and monitors the moneys provided. Mr. Abarca stated that staff discusses the appropriate use of this money by geographic location. He stated that a report will be provided to the Board Members at the June meeting. Mr. Pearce noted that a finding with the City of San Bernardino will be resolved within the near future, regarding interest allocation to the fund. If this issue were not resolved, a public hearing would be scheduled, but this may not be the case. Moved by LaPisto-Kirtley, seconded by Burke, and unanimously recommended for approval.

  7. Review May 11, 2001, Governing Board Agenda:. No changes were made to the agenda.

  8. Other Business: None.

  9. Public Comment: Lee Wallace, Sempra Energy, stated that Sempra a new 500 mw low-NOx burning generating plant is being built in Mexico and that reports of a new high-emitting power plant refers to another firm’s project. John Billheimer, EnviroRealty, suggested that a Governing Board Member should visit an Italian PCTB plant while attending the Switzerland conference due to 4,000 auto body plants being affected by related rulemaking; Dr. Burke added that Italy was also at the leading edge of research to prevent environmental damage to antiquities.

Meeting adjourned at 11:20 a.m.

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This page updated: August 12, 2004
URL: http://www.aqmd.gov/hb/2001/010527a.html