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         Mr. Ranji George, speaking as a member of the public, addressed the Board to speak on Agenda Item No. 8.    He expressed his support of the latest amendments to make the components hydrogen compatible, and indicated that there could be substantial benefits and millions of dollars saved if one fueling facility is capable of dispensing both natural gas and hydrogen fuel.
 

         Agenda Item No. 13 was withheld for discussion.    Chairman Burke and  Mr. Aguiar indicated they would abstain from Item No. 6 because of conflicts of interest.  Mr. Aguiar and Ms. Carney indicated they would abstain from Item No. 1 because they were absent from the September 5 Board meeting.

MR. CRAYCRAFT MOVED TO: 1) APPROVE AGENDA ITEMS 1 THROUGH 12 AND 14 THROUGH 29; 2) ADOPT RESOLUTION NO. 03-22, APPOINTING ALLFIRST TRUST COMPANY AS THE TRUSTEE OF ALL FUNDS ESTABLISHED UNDER THE HARTFORD-ADMINISTERED SECTION 457 SELF-DIRECTED BROKERAGE ACCOUNT PROGRAM;  AND 3) ADOPT AN “OPPOSE” POSITION ON “SB 11 (Cedillo) – AQMD Board Membership”, AS RECOMMENDED, WITH THE FOLLOWING  MODIFICATIONS TO ITEM NO. 8:

Add the following language to page 7 of the RFP, Volume 1, Section 2 – Statement of Work/Technical Approach (Section A), Paragraph 2:

“but allows for additional points to be received by the applicant for equipment or components that are hydrogen fueling compatible or for dedicated real estate to a future hydrogen fueling station.”

Add the following language and revisions to Page 12 of the RFP, Section V: Proposal Evaluation and Scoring Criteria

• “Strategic Location                    10 7.5 points
• Hydrogen Fueling Compatibility* 5 7.5 points

Includes equipment, components and footprint dedicated for hydrogen fueling station”

24.

Items Deferred from Consent Calendar
 

13.

Amend Governing Board Meeting Procedures Regarding Receipt of Testimony

         Mr. Aguiar expressed his concern that the proposed change in the procedures would preclude someone in the audience who had not submitted a card from responding upon hearing discussion from the Board, staff or public. Dr. Burke and Ms. Verdugo-Peralta noted their agreement with Mr. Aguiar’s concerns.

         Dr. Wallerstein presented the Board with an additional option, requiring that speaker cards be filed prior to the start of the agenda item rather than the start of the meeting, and granting those who request to speak after the start of the agenda item one and one-half minutes to testify, unless the Board adjusts the time.

         Mr. Craycraft suggested that it could be left to the Chair’s discretion to allow testimony by individuals who submit their speaker cards late.

         Ms. Verdugo-Peralta encouraged people from the same group to select a representative and identify the number they have on their behalf with the same point of view.

         District Counsel Barbara Baird noted that the Board can make arrangements with groups that wish to make a group presentation, such as allowing one person to speak for a longer period of time in lieu of having a whole host of speakers; however, the Board can not compel the speakers to make a group presentation.

  Ms. La Pisto-Kirtley indicated her preference for the option presented by staff.
 

ON MOTION OF MR. AGUIAR, SECONDED BY DR. BURKE,

AND CARRIED  UNANIMOUSLY (Absent:  Antonovich), THE BOARD DENIED AGENDA ITEM NO. 13.
 

30.

California Air Resources Board Monthly Report   (No Written Material – Transcripts of the meetings are available at CARB's web site, www.arb.ca.gov.)

ON MOTION OF MR. CRAYCRAFT,  SECONDED BY        DR. WILSON AND UNANIMOUSLY CARRIED (Absent: Antonovich), THE BOARD  RECEIVED AND FILED AGENDA ITEM NO. 30. 
 

31.

Discuss Childcare Center Lease

         Dr. Wallerstein noted that this item was raised at the Administrative Committee Meeting and there was a request at that time to agendize the matter for discussion by the Board.

         The following individuals addressed the Board to speak on this item.

            PAULETTE HENSON
            LISA KREBS
            GRETA GRIER
            STEVEN NIKAIDO
            SUPARNA CHAKLADAR
            CHRISTINA VILOTTI
            MAURA MATUTE-BUSTAMANTE
            YVONNE HOO
            NAZISH ZAMAN
            CHARLYN NAASZ
            SAAD KARAM

________________________________________________________________

Parents expressed their desire to keep the facility open and have a new qualified provider operate the child care center.  They described the benefits of having the center on-site and of the exceptional care the teachers provided to the children. In addition, the following suggestions were made and concerns expressed.

• More commitment is needed by the AQMD to address the plumbing problems, maintenance, and upgrading of the facility.

• Suggested that in order to obtain a qualified provider, the RFPs need to be published in the larger newspapers in Los Angeles and Orange Counties.

• Suggested that improvement standards and compliance with regulations be incorporated into the lease.

• Expressed concern with the cleanliness of the facility, the displacement of the children if the center is closed, and AQMD staff’s lack of interest in having the center.

            Mr. Aguiar expressed support for staff’s recommendations that the vendor be notified that it is in violation of the lease, to issue a 3-day pay or quit and RFP to find a new provider, and, if necessary, provide for an interim provider.

            In response to Mr. Aguiar’s question to staff, Ms. Eudora Tharp, Assistant DEO of Administrative and Human Resources, verified that the cost varies by age.  The rate for infants is $700 a month for the community and $589 a month for AQMD staff.

            In response to Ms. Carney’s questions to staff, Ms. Tharp, indicated approximately eight AQMD families use the facility, and staff has found that there are other centers within a few miles of the AQMD that are willing to accept the parents at the existing discounted AQMD rate.

MS. LaPISTO-KIRTLEY MOVED TO DIRECT STAFF TO SERVE A 3-DAY NOTICE TO PAY OR QUIT ON THE CHILD CARE CENTER FOLLOWING ANY DEFAULT.   IF ALL PAYMENTS ARE NOT TIMELY MADE, STAFF IS TO OFFER NPSS THE OPPORTUNITY TO SIGN A LEASE ENDING THE END OF JUNE IN LIEU OF EVICTION.  IF NPSS REFUSES, STAFF IS TO INITIATE EVICTION PROCEEDINGS, ISSUE AN RFP FOR A NEW PROVIDER, AND, IF NECESSARY CONTRACT WITH AN INTERIM PROVIDER TO RUN THE CENTER, PENDING A FULL RFP PROCESS.  THE MOTION WAS SECONDED BY MR. LOVERIDGE.

         In response to Mr. Aguiar’s question to staff, District Counsel Barbara Baird noted that the motion was based on the fact that the facility is currently in default and past its grace period for payments on rent and utilities, which entitles AQMD to serve a 3-day notice.

         In response  to Mr. Aguiar’s  suggestion,  District Counsel  Barbara Baird noted that the motion could include direction to staff to send a letter to the provider demanding that it comply with all health and safety rules and regulations and maintain a clean facility. However, if the provider facility pays within the allowed 3 days, it must be given the opportunity to cure the violations that were referred to in terms of cleanliness, and eviction could not be immediately pursued.

THE MAKER AND SECOND OF THE MOTION AGREED TO INCLUDE MR. AGUIAR’S SUGGESTION IN THE MOTION.

SHERRY McMILLION and GARRY NOBBE, National Pediatric Support Services (NPPS)

Spoke of the lack of partnership with AQMD; the plumbing problems and money spent to make the repairs; unused grants due to AQMD’s not granting them a 3-year continuance of the lease; and late rent payments due to delays by the Department of Education and the federal food program.  Gave a 90-day notice and recommended that the AQMD agree to terminate the lease in 90 days, on January 2, 2004.

In response to Ms. La Pisto-Kirtley’s questions to staff, Ms. Tharp noted that under the terms of the lease, the maintenance and repair of the Center is the responsibility of NPSS.   NPSS is being charged a discount in the lease of $.21 per square foot, with the standard rate being $1.75 per square foot.

In response to Mr. Aguiar’s questions, Mr. Nobbe confirmed that NPSS is a for-profit company, it has eight sites in Southern California, and the rent at the AQMD site is comparable to what they pay at the other locations.  Ms. Tharp confirmed that the $.21-a-square-foot cost is for the building and playground area.

Mr. Aguiar requested that Mr. Nobbe provide the District with the cost being paid per square foot for the other sites, and Dr. Wilson requested the figures on the amount of money being spent on plumbing.

Dr. Wallerstein noted for clarification that the issue of the grant would have required the District to certify that NPSS would be at the facility beyond the length of the current lease, and staff calculations indicated that the grant was for $500 or less.

*MARTHA LUCERO and SANDY ORNELAS, Shop Stewards Teamsters Union –  Local 911

Ms. Lucero read a letter, on behalf of Ray Whitmer, Teamster Union Local 911, urging the Board to keep the child center open and requesting to meet with Chairman Burke or his assistant to discuss the matter further.  (Submitted written comments)

Ms. Ornelas expressed the unfairness of the cafeteria receiving a 100 percent profit and not being responsible for maintenance of the facility, as is the Child Care Center; and the inconvenience of displacing children. She recommended that the Board support the continuance of an on-site child care center.

MATT REZIANI, Commissioner of L.A. Co. Child Care Policy Round Table

Spoke of the need to the center open and offered to work with AQMD to identify better qualified operators and to address some of the issues.

In response to Mr. Silva’s question to staff, Ms. Tharp, confirmed that 10 to 11 families from the approximately 800 AQMD employees use the Center.

Ms. LaPisto-Kirtley, Ms. Verdugo-Peralta, Mr. Loveridge, and Mr. Paulitz expressed their concerns with the quality of care being provided, the need to have a responsible contractor, the maintenance of the facility, and not wanting to see the Center closed.

Ms. LaPisto-Kirtley expressed her concern that the other day care centers in the area are full and have a waiting list, while the on-site Center is operating at a 50 percent capacity.

Noting that NPSS had requested to give a 90-day notice, Ms. LaPisto-Kirtley suggested that staff be directed staff to negotiate a 90-day termination of lease with NPSS and issue an RFP for a new provider.  If unable to negotiate the 90-day termination, staff should then proceed with the remainder of the previous motion.

Ms. Carney noted that uncertainty surrounding the center is part of the problem and cause for anxiety for parents; however, there must be a reason why  there is a shortage of child care facilities in the eastern part of L.A.,  and the one at AQMD is half empty.  She suggested that in the next 90 days, AQMD make every effort to understand the problem, see if it can be fixed, and require an operating plan as part of the RFP.  If the child care center cannot work, they should be realistic and close it.

Mr. Paulitz noted that he is  not as concerned about the capacity as much as he is about AQMD’s responsibility with regard to the leaky plumbing, and he does not wish to hear these arguments every year, rather only when the lease is up.

ON MOTION OF MS. LaPISTO-KIRTLEY, SECONDED BY

MR. PAULITZ, AND UNANIMOUSLY CARRIED (Absent: Burke), THE BOARD DIRECTED STAFF TO ISSUE 3-DAY NOTICE TO PAY OR QUIT TO NPSS, NEGOTIATE A 90-DAY TERM OF LEASE WITH NPSS, AND ISSUE AN RFP FOR A NEW PROVIDER.  IF UNABLE TO NEGOTIATE A 90-DAY LEASE WITH NPSS, STAFF WAS DIRECTED TO INITIATE EVICTION PROCEEDINGS, ISSUE AN RFP FOR A NEW PROVIDER, AND, IF NECESSARY, CONTRACT WITH AN INTERIM PROVIDER TO OPERATE THE CHILD CARE CENTER PENDING A FULL RFP PROCESS.

32.

Amend Rule 1168 - Adhesive and Sealant Applications

           Larry Bowen, Planning and Rules Manager, gave the staff report.

         The public hearing was opened, and the Board heard testimony from the following individual:

RITA LOOF, representing RadTech International
         Expressed her surprise that the EPA originally issued a limited disapproval on Rule 1168, specifically for the light curable adhesives and sealants exemption; and expressed her appreciation to staff for working with industry to clarify the language in a manner that was acceptable to both the industry and the EPA.

         There being no further public testimony, the public hearing was closed.

ON A MOTION DULY MADE AND SECONDED, AND CARRIED UNANIMOUSLY (Absent: Burke), THE BOARD ADOPTED RESOLUTION NO. 03-23, AMENDING RULE 1168 AND CERTIFYING THE CEQA SUBSEQUENT ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF.

33.

Adopt Proposed Rule 1105.1 - Reduction of PM10 and Ammonia Emissions from Fluid Catalytic Cracking Units

         Written Comments Submitted by:
         Barbara Morel
         Ronald R. Wilkniss, Western States Petroleum Association

ON MOTION OF MS. LaPISTO-KIRTLEY, SECONDED BY MS. VERDUGO-PERALTA, AND UNANIMOUSLY CARRIED

(Absent: Burke), THE BOARD CONTINUED AGENDA ITEM

NO. 33 TO THE NOVEMBER 7, 2003 BOARD MEETING, AS RECOMMENDED BY STAFF.
 

34.

Implement FY 2002-03 Environmental Justice Enhancement I-4 Continue to Develop Localized Significance Thresholds for Subregions of Air District as Another Indicator of CEQA Significance

          Elaine Chang, DEO of Planning, Rule Development and Area Sources, gave the staff report.

          In response to Mr. Paulitz’ question regarding staff’s responsibility,          Dr. Chang explained that staff indicates on a notice of preparation or initial study what areas of air quality analysis need to be performed.  Staff comments on the adequacy of the air quality analysis after receiving a copy of the draft EIR. Dr. Wallerstein noted that staff will also indicate to the cities what potential mitigation measures are appropriate for the project.

          In response to Mr. Paulitz, District Counsel Barbara Baird indicated that the AQMD does not have direct authority to require cities to adopt a particular mitigation measure.  In a particular circumstance, if the AQMD felt that failure to adopt the mitigation measure was a violation of CEQA, it could pursue legal remedies similar to the way a citizen could sue to challenge the EIR.

          In response to Ms. Verdugo-Peralta’s question to staff, Dr. Wallerstein confirmed that Government Affairs staff visit with city staff and attend council meetings to make them aware of the opportunities to learn more about the agency or what they believe are hot issues within their communities.  In a CEQA context the AQMD is listed in a statewide clearinghouse as the responsible agency for air quality issues, so local governments know where to send their materials when they have CEQA documents going out for review.   The outreach is on a continuous basis and the key issues being discussed with cities are periodically modified.

          The public hearing was opened, and the Board heard testimony from the  following individual:

MICHAEL LEWIS, Construction Industry Air Quality Coalition

          Expressed the construction industry’s support of the resolution as presented by staff, with the modifications, and indicated that they could come back before the implementation period with a program that will be practical and workable for the planners, cities, and small contractors.

          There being no further public testimony, the public hearing was closed.

ON MOTION OF MR. CRAYCRAFT, SECONDED BY      MS. LaPISTO-KIRTLEY, AND UNANIMOUSLY CARRIED (Absent: Burke), THE BOARD ADOPTED RESOLUTION N0. 03-24, APPROVING THE LOCALIZED SIGNIFICANCE THRESHOLDS METHODOLOGY DOCUMENT DEVELOPED BY THE AQMD AND RECOMMENDING ITS VOLUNTARY USE BY OTHER PUBLIC AGENCIES, AS RECOMMENDED BY STAFF, WITH THE FOLLOWING MODIFICATIONS TO THE RESOLUTION:

      “BE IT FURTHER RESOLVED that the AQMD Governing Board does hereby adopt the localized significance threshold methodology (Attachment D) pursuant to CEQA Guidelines §15064.7 (b) with a nine-month phase-in period for field testing.The Governing Board directs staff to conduct a pilot program with cities and local contractors to assess any potential implementation issues,and report to the Mobile Source Committee in May 2004.

      BE IT FURTHER RESOLVED that the Governing Board hereby directs AQMD staff to do the following in preparation of the May 2004 Mobile Source Committee meeting: (1) expand  the list of sample projects to streamline the process and reduce the workload of local government and contractors; (2) update mitigation measures with notations as to the appropriateness of specific measures for projects of different sizes and (3) reconvene the working group to review the results of the field testing and evaluate refinements or improvements needed for over-the-counter approval by local agencies.

      BE IT FURTHER RESOLVED that the Governing Board hereby directs the Executive Officer to annually update the localized significance thresholds based upon the most current air quality monitoring data.

      BE IT FURTHER RESOLVED that the localized significance thresholds and the methodology used to generate these thresholds will be incorporated into the CEQA Handbook in July 2004 for voluntary use by local governments.”

35.

Modify Resolution for Eligibility with State of California to Receive Property Under Federal Surplus Personal Property Program

        Dr. Wallerstein noted that staff was requesting authorization to receive surplus equipment from the State because the person previously authorized to do so on behalf of AQMD had retired.

ON MOTION OF MR. AGUIAR, SECONDED BY               MS. CARNEY, AND UNANIMOUSLY CARRIED (Absent:  Burke), THE BOARD  ADOPTED RESOLUTION NO. 03-25, ALLOWING AQMD TO BE AUTHORIZED TO ACQUIRE SURPLUS PROPERTY FROM THE CALIFORNIA AGENCY FOR SURPLUS PROPERTY, AS RECOMMENDED BY STAFF.

          The Board recessed to closed session at 11:10 a.m., pursuant to Government Code sections:

•  54956.9(a)  to  confer  with  its counsel regarding pending litigation:
  California Paint Alliance, et al. v. SCAQMD, et al., U.S. District  Court Case No. CV-03-1656HLH (JWJx); Engine Manufacturers Association, et al. v.  SCAQMD, et al., U.S. Supreme Court Case No. 02-1343; Monica Viaz, et al. v. SCAQMD, et al., Los Angeles Superior Court Case No. LC062706;  Muller v. SCAQMD, WCAB Case Nos. POM0245680.
   

• 54956.9(c) to confer with its counsel regarding determining whether to initiate litigation (two cases) and 54956.9(b) to discuss threatened litigation, Communities for a Better Environment v. SCAQMD.