BOARD MEETING DATE: June 2, 2006
AGENDA NO. 19

Administrative Committee

SYNOPSIS:

The Administrative Committee met Friday, May 12, 2006, and reviewed the proposed agenda for the June 2, 2006, Board meeting.  The Committee also discussed various issues detailed in the Committee report.  The next Administrative Committee meeting is Friday, June 9, 2006 at 9 a.m. in Conference Room CC-8.

RECOMMENDED ACTION:

Receive and file.

S. Roy Wilson, Vice Chair
Administrative Committee

Attendance:  Present at AQMD were Jane Carney and Ronald Loveridge.  Also present were Vice Chair Roy Wilson and Beatrice LaPisto-Kirtley (via videoconference).  Dr. Burke was absent.

ACTION/DISCUSSION ITEMS:

1. Board Members’ Concerns:  None.
    
2. Chairman’s Report of Approved Travel:  Vice Chair Wilson stated that Cynthia Verdugo-Peralta attended the CaFCP Earth Day Events on April 22 in Sacramento, CA; and Jane Carney testified before the Assembly Natural Resources Committee regarding AB 2015 on April 24 in Sacramento, CA.
    
3. Approval of Compensation for Board Member Assistant(s):  Proposals for Board Assistants for FY 2006-07 were reviewed by Committee members.  Vice Chair Wilson mentioned that Mr. Crites is now a retired Professor.  Moved by LaPisto-Kirtley; seconded by Loveridge; and unanimously approved.
    
4. Report of Approved Out-of-Country Travel:  Vice Chair Wilson stated that Dr. Burke is attending Hart's 11^th World Refining & Fuels Conference in Brussels, Belgium on May 26-June 2; and staff chemist Raul Dominguez will be attending the ASTM Technical D03 Committee--Gaseous Fuels, in Toronto, Canada on June 26-29.  Mayor Loveridge asked if it was common practice to include staff's out-of-country travel, and Dr. Wallerstein answered affirmatively.  Mayor Loveridge asked why the meeting was scheduled in Toronto, and Dr. Chung Liu, DEO/Science & Technology, answered the society for testing and materials has members worldwide and that Dr. Dominguez is the current Chairman of the D03 Committee.

JUNE AGENDA ITEMS:

5. Adopt Executive Officer's FY 2006-07 Budget and Work Program:  Rick Pearce, Chief Financial Officer, explained that under the proposed 10-10-10% increases over the next three years along with the proposal to reduce long-term debt with one-time revenues, AQMD would be able to establish a structurally balanced budget.  Ms. Carney expressed her concern regarding the age of retirement currently allowed by SBCERA—2% at age 55.  She stated because of the growing amount of debt, she would like to explore increasing the retirement age to 65 and asked what the process would be to do so.  Mr. Pearce answered that it would require legislative action to offer a new tier in the retirement system for new employees.  Dr. Wallerstein added that it is a labor intensive process since the item would have to be negotiated with represented employees.  Ms. Carney suggested looking into moving AQMD's retirement plan into another retirement system in order to provide a variety of tiers for employees.  Ms. Carney also recommended placing this item on the Legislative Committee annual agenda for next year in order to assure adequate funding would be available to pay employees their retirement when it is their time to receive it. 

Ms. Carney also asked about the debt-reduction proposal and how much money would be available to keep the current reserves in the budget.  Mr. Pearce answered that if the cost recovery fees are not approved for the next three years, the moneys in the reserve will be expended.  Ms. LaPisto-Kirtley asked whether AQMD would have a balanced budget after three years if fees are increased by 10% over the next three years, and Mr. Pearce answered that if the debt is reduced, the budget could be balanced within the first year.  Dr. Wallerstein stated that the debt reduction analyses could be expedited.  Mr. Pearce stated that if the Board chooses to move with option 1, the Board letter and Resolution recommending implementing the debt reduction proposal will be brought back to the June 9 Administrative Committee meeting for review and approval.  Moved by LaPisto-Kirtley; seconded by Carney; and unanimously approved.

6. Amend Regulation III – Fees:  Laki Tisopulos, Asst. DEO/Planning, Rules Development & Area Sources, explained that after surveying various agencies with regard to the 10-10-10% fee increase, it is similar to what some other districts are considering.  Ms. Carney asked how many businesses would pay into the total of $116,000 in a particular category, and Mr. Tisopulos answered 500-600 businesses.  Moved by Carney to recommend adoption of Option 1; seconded by Loveridge; and unanimously approved.
    
7. Approve Prequalified List of Law Firms for Employee Relations Litigation and Negotiation Services:  Eudora Tharp, Asst. DEO/Administrative & Human Resources, explained that this item is to approve a list of law firms for a 3-year contract.  Ms. LaPisto-Kirtley stated her concern regarding awarding 10 points to a small business even though they are less technically qualified.  Kurt Wiese, District Counsel, stated that all the firms are well qualified and will do an outstanding job, but the cost and small business points were included by the Board in the Contracting Policy.  Mr. Pearce added that state law prohibits AQMD from awarding points for women and minority-owned businesses currently; it is only offered for disabled and small businesses.  Mss. LaPisto-Kirtley and Carney stated that is very important for a firm to be technically competent in handling legal issues that arise.  The Committee members asked what the recourse would be if staff is not satisfied with the law firms used.  Mr. Wiese answered that staff could terminate the contract immediately and select another law firm under Dr. Wallerstein's authority until a new proposal was returned to the Administrative Committee.  Moved by LaPisto-Kirtley to direct staff to approve the list of law firms for a one-year contract with two one-year extensions; seconded by Loveridge and Carney.  Vice Chair Wilson abstained.
    
8. Authorize Purchase of Off-Site Storage and Destruction Services:  Chris Marlia, Asst. DEO/Information Management, stated that this item is to approve a contract for off-site storage services and purchase of destruction services as part of the Records Retention Policy.  Since this policy was adopted last year, documents with long-term retention periods are required to be stored electronically, whereby 1,500 cubic feet of documents have been destroyed.  Moved by LaPisto-Kirtley; seconded by Carney; and unanimously approved.
    
9. Report of RFPs and RFQs Scheduled for Release in June:  Mr. Pearce requested this item -- Issue RFQ for Telecommunication Services – be approved.  Moved by Loveridge; seconded by LaPisto-Kirtley and unanimously approved.
    
10. Ethnic Community Advisory Group Minutes for March 8, 2006:  Attached for information are the Ethnic Community Advisory Group minutes for the March 8, 2006 meeting. 
     
11. Local Government & Small Business Assistance Advisory Group Minutes for March 10, 2006:  Attached for information are the Local Government & Small Business Assistance Advisory Group Minutes for the March 10, 2006 meeting.
     
12. Review June 2, 2006, Governing Board Agenda:  Dr. Wallerstein stated a number of public hearings are scheduled for the upcoming Board meeting as follows:  (a) Amend Rule 219 – Equipment Not Requiring a Written Permit Pursuant to Regulation II; (b) Adopt Executive Officer's FY 2006-07 Budget and Work Program; (c) Amend Regulation III; (d) Amend Rule 1113 – Architectural Coatings (motion recommended by Supervisor Antonovich will be provided at the meeting); (e) Amend Rule 1157 – PM10 Emission Reductions from Aggregate and Related Operations; (f) Amend Rule 1171 – Solvent Cleaning Operations; and (g) Adopt Proposed Rule 223 – Emission Reduction Permits for Large Confined Animal Facilities.  Dr. Wallerstein stated he will inform the Board Members to be prepared for a lengthy Board meeting.  Moved by Loveridge; seconded by LaPisto-Kirtley; and unanimously approved.
     
13. Other Business:  Mayor Loveridge asked if AQMD has ever taken a position on State bond measures, especially as it relates to transportation issues.  Dr. Wallerstein answered that AQMD may take a support position on the bond measure if the Board desires.  Mayor Loveridge recommended staff bring this issue to the Legislative Committee next month for discussion.  Vice Chair Wilson suggested placing the staff analysis in the report. 

Dr. Wallerstein also stated that he and Peter Greenwald, Senior Policy Advisor, met with the Commissioners of the Los Angeles and Long Beach Ports who are developing an air quality plan.  The Commissioners requested funding support from both AQMD Moyer funds and bond moneys.  Dr. Wallerstein stated that staff is assisting with the plan to ensure that it balances actions to ensure that goods movement is efficient and air quality is appropriately addressed.

Mayor Loveridge requested AQMD's assistance with Western Riverside COG's summit scheduled in September with major economic stakeholder groups and Inland transportation agencies to discuss goods movement in the Inland Empire. 

14. Public Comment:   Rita Loof, Radtech International, commented on Rule 219 stating that AQMD staff did not correctly reflect the issue regarding spray machines being developed technologically and thus treated differently.  She also requested wording be placed in this rule as to what test methods are to be used for coatings, but that industry will continue working with staff.  Dr. Wallerstein stated that the Board left open the agricultural items, but staff will provide a plan to address the remaining issues and incorporate it into the Board letter.  Dr. Tisopulos mentioned that the issue of the auto sprayer will be discussed at next week's Permit Streamlining Task Force meeting.

Meeting adjourned at 10:03 a.m.

Attachments (EXE 95kb)
Ethnic Community Advisory Group Minutes for March 8, 2006
Local Government & Small Business Assistance Advisory Group Minutes for March 10, 2006