GOVERNING BOARD AGENDA
MEETING, October 5, 2007

A meeting of the South Coast Air Quality Management District Board will be held at 9:00 a.m., in the Auditorium at AQMD Headquarters, 21865 Copley Drive, Diamond Bar, California. Most agenda items are described in a “Board Letter” which may be accessed by clicking the appropriate link below. Some Board Letters also have attachments in various formats, such as .doc, .xls, .ppt, .pdf, .zip, .exe, and others. Attachments may be accessed for viewing or downloading by clicking on the word “Attachment” at the end of the Board Letter. For help in downloading “.exe” or “.zip” files, please click here.

The agenda and documents in the agenda packet will be made available upon request in appropriate alternative formats to assist persons with a disability. Disability-related accommodations will also be made available to allow participation in the Board meeting. Any accommodations must be requested as soon as practicable. Requests will be accommodated to the extent feasible. Please telephone the Clerk of the Boards Office at (909) 396-2500 from 7:00 a.m. to 5:30 p.m. Tuesday through Friday.

Pledge of Allegiance

Opening Comments:

• William A. Burke, Ed.D., Chair
• Other Board Members
• Barry R. Wallerstein, D. Env., Executive Officer

Note: Consent Calendar items held for discussion will be moved to Item No. 28.

1. Minutes of September 7, 2007 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearing December 7, 2007 to Amend Rule 1110.2 - Emissions from Gaseous and Liquid-Fueled Engines
Chang (909) 396-3186
(echang@aqmd.gov)

Extensive emission testing conducted by AQMD enforcement staff in recent years revealed that a significant number of stationary internal combustion engines tested were out of compliance with their emissions limits, about half of the time, due to poor operating and maintenance procedures and inadequate monitoring. The proposed amendments are intended to: 1) improve the compliance record of engines with better monitoring, recordkeeping and reporting; 2) achieve further emission reduction based on the cleanest available technologies; and 3) address the recommended source testing and inspection and monitoring plan changes to the rule by U.S. EPA. (Review: Stationary Source Committee, September 28, 2007)

Budget/Fiscal Impact

3. Execute Contract for Health Insurance Brokerage and Consultant Services
Tharp (909) 396-3018
(etharp@aqmd.gov)

In May 2007, the Board approved release of an RFP for health insurance brokerage services to ensure a cost-effective employee health insurance program. This action is to execute a contract with Alliant Insurance Services, Inc., through August 31, 2010. Since payment for services is through insurance carrier commissions, this is a no-cost contract. (Review: Administrative Committee, September 14, 2007)

4.  Execute Contract for Janitorial Services at Diamond Bar Headquarters
Tharp (909) 396-3018
(etharp@aqmd.gov)

The current contract for Diamond Bar headquarters’ janitorial services expires October 31, 2007. On May 4, 2007, the Board approved a change to AQMD’s contracting policy that provided additional points in the proposal evaluation process as an incentive for janitorial, security guard, and landscaping services contractors to provide affordable health insurance to their full-time employees. The RFP to solicit proposals from firms interested in providing janitorial services for the next three-year period was re-released May 18, 2007. This action is to execute a contract with Diamond Contract Services, Inc., through October 31, 2010, for an amount not to exceed $1,012,418. Funding for this contract has been included in the FY 2007-08 Budget and will be requested in successive fiscal years. (Review: Administrative Committee, September 14, 2007)

5. Execute Contract for Security Guard Services at Diamond Bar Headquarters
Tharp (909) 396-3018
(etharp@aqmd.gov)

The current contract for Diamond Bar headquarters’ security guard services expires October 31, 2007. On May 4, 2007, the Board approved a change to AQMD’s contracting policy that provided additional points in the proposal evaluation process as an incentive for janitorial, security guard, and landscape services contractors to provide affordable health insurance to their full-time employees. The RFP to solicit proposals from firms interested in providing security guard services for the next three-year period was re-released May 18, 2007. At the direction of the Administrative Committee, this action is to execute a contract with Contact Security Inc., through October 31, 2010, for an amount not to exceed $1,421,830. This contract will require an additional appropriation of $25,100 to the FY 2007-08 Budget; funding will be requested in successive fiscal years. (Review: Administrative Committee, September 14, 2007)

6. Revise Class and Add and Delete Positions in FY 2007-08 Budget
Tharp (909) 396-3018
(etharp@aqmd.gov)

To enhance efficiency and meet current program needs, this action is to revise the class of Senior Meteorologist and to add a position at this level in Planning, Rule Development & Area Sources and to delete an Air Quality Specialist position. This action is also to add an Administrative Secretary in Planning, Rule Development & Area Sources for the new Director of Strategic Initiatives. The net annual top-step salary and benefits cost of these changes is approximately $108,435, and the FY 2007-08 budgetary impact is approximately $54,218. (Review: Administrative Committee, September 14, 2007)

7. Execute Contract to Purchase Meridian SL-1 Phone Switch Upgrade
Marlia (909) 396-3148
(cmarlia@aqmd.gov)

On July 13, 2007, the Board approved release of an RFQ to select a vendor capable of upgrading the existing Meridian SL-1 Option 81C phone switch to a new Nortel Communication Server 1000M MG system. As a result of successful responses to this RFQ, the most competitive vendor was identified as capable of providing this service. This action is to authorize issuance of a purchase order for the purchase of Meridian SL-1 phone switch upgrade. Funds ($195,000) for this purchase are included in the FY 2007-08 Budget. (Review: Administrative Committee, September 14, 2007)

8. Authorize Purchase of Desktop Computer Hardware Upgrades
Marlia (909) 396-3148
(cmarlia@aqmd.gov)

AQMD operational efficiency is dependent on staff desktop computer systems, and many software applications (both off-the-shelf and in-house developed applications) are exceeding the capacity of the present desktop systems. This action is to authorize purchase of new desktop computer systems, with adequate capacity to support current software applications, to replace older desktop systems. These replacements are in accord with AQMD's Information Management Strategic Plan. Funds for this purchase ($150,000) are included in the FY 2007-08 Budget. (Review: Administrative Committee, September 14, 2007)

9.  Execute Contract to Cosponsor Demonstration of NOx and PM Emissions Control Technology on Diesel-Powered Construction Equipment
Liu (909) 396-2105
(cliu@aqmd.gov)

Diesel-powered construction equipment contributes significant amounts of NOx and PM into the South Coast Air Basin. On March 2, 2007, the MSRC issued an RFQ to manufacturers of diesel emission control systems and a Program Announcement for owners of off-road diesel construction equipment. Thirty diesel emission control devices were submitted by 16 manufacturers, and 21 applications with a total of 230 pieces of off-road construction equipment were received from 18 construction equipment fleets. This action is to authorize contract awards to 11 construction equipment fleets to demonstrate combined NOx and PM reducing emission technologies on 32 pieces of construction equipment at a total cost not to exceed $1,245,750 from the Clean Fuels Fund. The MSRC will fund the remaining projects with 198 pieces of equipment at a cost of $3,641,013. (Review: Technology Committee, September 28, 2007)

10. Execute Contracts for FY 2006-07 Year Nine Carl Moyer Memorial Air Quality Standards Attainment Program, and Transfer Clean Fuels Projects to Carl Moyer Fund
Liu (909) 396-2105
(cliu@aqmd.gov)

On May 4, 2007, proposals were received in response to the Program Announcement that was issued for Year Nine Carl Moyer Air Quality Standards Attainment Program. This action is to execute Carl Moyer Program contracts in an amount not to exceed $19,835,228. This action is also to transfer $1,904,250 in Clean Fuels Projects to the Carl Moyer Fund (Review: Technology Committee, September 28, 2007)

11. Issue RFP for University Competition to Develop Rechargeable Electric Leaf Vacuum Device
Liu (909) 396-2105
(cliu@aqmd.gov)

Gasoline-powered leaf blowers used by commercial gardeners/landscapers are sources of noise, exhaust emissions, and re-suspended dust. To address these environmental concerns, staff proposes to conduct a competition in which university engineering school students would be offered a monetary award for developing a prototype of a battery-powered, low-noise, backpack-style leaf vacuum device that could meet the needs of commercial gardeners. The winning entries could be used as templates to encourage equipment manufacturers to produce an environmentally friendly replacement for the existing leaf blowers used by commercial gardeners. Funding up to $100,000 for this competition would come from the Clean Fuels Fund to provide awards for up to five winning designs. (Review: Technology Committee, September 28, 2007)

12. Appropriate Funds Designated for Enhanced Compliance Activities to FY 2007-08 Budget and Issue Purchase Order for CNG Van
Coy (909) 396-2434
(ccoy@aqmd.gov)

On March 2, 2007, the Board approved appropriation of $50,000 from the General Fund, Designation for Enhanced Compliance Activities, to the FY 2006-07 Budget for the purchase of a CNG van to be used by compliance staff for Service Station Vapor Recovery testing. The Board subsequently approved release of an RFQ on May 4, 2007 to solicit bids for the vehicle. With insufficient time to obtain Board approval for the purchase in FY 2006-07, the funding was returned to the Designation as part of the close-out of the FY 2007-08 Budget. This action is to appropriate $70,000 from the General Fund, Designation for Enhanced Compliance Activities, to the FY 2007-08 Budget. (Review: Administrative Committee, September 14, 2007)

13. Transfer Funds and Authorize Extension of Financial Incentives Program to Assist Dry Cleaners Converting from Perc to Non-Perc, Non-Ozone Forming Alternative Technologies
Ganguli (909) 396-3185
(aganguli@aqmd.gov)

The existing financial incentives program to help dry cleaners convert to non-perc technologies is fully committed. This action is to transfer $1 million from AQMD's Air Quality Assistance Fund to the Dry Cleaner Grant Fund to continue providing grants to dry cleaners for transitioning to non-perc, non-ozone forming technologies. (Review: Administrative Committee, September 14, 2007)

14. Recognize Revenue, Appropriate, and Reallocate Funds for PAMS; Appropriate Funds for NATTS Program; Recognize Revenue and Appropriate Funds for PM2.5 and Enhanced Particulate Monitoring Program; Transfer and Appropriate Funds for Port Community Air Monitoring Program; Issue Purchase Orders and RFQ
Hogo (909) 396-3184
(hhogo@aqmd.gov)

U.S. EPA has allocated Section 105 Grant funds of $1,189,740 for the 16th Year PAMS program. As such, this action is to: (1) recognize revenue, and appropriate and reallocate unspent 15th year PAMS funds to the FY 2007-08 Budget; (2) appropriate funds to the FY 2007-08 Budget for the 16th year PAMS program; (3) appropriate new National Air Toxic Trends Station (NATTS) funds to the FY 2007-08 Budget; (4) recognize revenue and appropriate funds for the U.S. EPA PM2.5 monitoring program and the U.S. Department of Homeland Security Enhanced Particulate Monitoring Program to the FY 2007-08 Budget; (5) transfer and appropriate funds to the FY 2007-08 Budget from the BP/ARCO Settlement Projects fund to continue the Port Community Air Monitoring Program; and (6) issue purchase orders and an RFQ for fixed assets under these programs. (Review: Administrative Committee, September 14, 2007)

15. Issue RFP for Deferred Compensation Plan Consultant Services
Pearce (909) 396-2828
(rpearce@aqmd.gov)

AQMD sponsors an IRS-approved 457 deferred compensation program for its employees. State law governs the fiduciary requirement for the operation and investment of 457 plans sponsored by governmental entities. AQMD staff is in the process of reviewing and updating the 457 program to ensure optimal plan design and regulatory compliance. This action is to issue an RFP for consultant services focused on assisting staff in developing a formal Deferred Compensation Committee Charter and Investment Policy Statement; and in providing analysis of plan assets and investment options, employee education and administrative support. These consultant services will be funded on a cost reimbursement basis by the AQMD's 457 plan vendor (The Hartford) as provided for under the Internal Revenue Code. (Review: Administrative Committee, September 14, 2007)

16. Issue RFP for Electricity Resource Planning Analysis
Chang (909) 396-3186
(echang@aqmd.gov)

On August 13, 2007, the Board adopted amendments to Rule 1309.1 that enabled electrical generating facilities to purchase credits from the District's Priority Reserve account. The Board directed that up to one million dollars be used to conduct a comprehensive energy analysis of the Basin to better determine needed resources and options. (Review: Stationary Source Committee, September 28, 2007)

17. Approve Multiple Contract Awards and One Award Modification under FYs 2006-07 and 2007-08 AB 2766 Discretionary Fund Work Programs
Norton-Perry

At its August 16 and September 20, 2007 meetings, the MSRC approved multiple contract awards and one award modification under the FYs 2006-07 and 2007-08 AB 2766 Discretionary Fund Work Programs. Awards include funding to several off-road construction equipment owners for participation in the Off-Road Diesel Construction Equipment Retrofit “Showcase” Program as well as two awards for the purchase of solid waste collection vehicles with advanced low-emission heavy-duty natural gas engines certified to the 2007 optional 0.2 gram NOx per bhp-hr standard. The MSRC also approved a modification to the Mountain-Area CNG School Bus Demonstration Program. The MSRC seeks AQMD Board approval for these contract awards and modification under the FYs 2006-07 and 2007-08 Work Programs. (Review: Mobile Source Air Pollution Reduction Review Committee, September 20, 2007)

Action Item/No Fiscal Impact

18. This item was withdrawn by staff.

19. Recommendation to Become Party to Southern California National Freight Gateway Cooperation Agreement
Greenwald (909) 396-2111
(pgreenwald@aqmd.gov)

Local, state and federal transportation, air quality and other agencies have drafted an agreement seeking to promote cooperation, coordination and collaboration regarding freight transportation issues while all signatories pursue their normal responsibilities under law. (Review: Mobile Source Committee, September 28, 2007)

20. Revise Procurement Policy and Procedure
Pearce (909) 396-2828
(rpearce@aqmd.gov)

This action is to revise the AQMD's Procurement Policy and Procedure to increase the threshold amount for purchases requiring advertising for public bidding and to implement administrative changes reflecting current operations. (Review: Administrative Committee, September 14, 2007)

Information Only - Receive and File

21. Public Affairs Report
Abarca (909) 396-3242
(oabarca@aqmd.gov)

This report highlights the August 2007 outreach activities of Public Affairs which include: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Outreach to Business and Federal, State, and Local Government.

22. Hearing Board Report
Camarena (909) 396-2500
(ecamarena@aqmd.gov)

This reports the actions taken by the Hearing Board during the period of August 1 through August 31, 2007.

23. Civil Filing and Civil Penalties Report
Mieras (909) 396-3400
(pmieras@aqmd.gov)

This reports the legal actions filed by the District Prosecutor's during July 1 through July 31, 2007.

24. Lead Agency Projects and Environmental Documents Received by AQMD
Chang (909) 396-3186
(echang@aqmd.gov)

This report provides, for the Board's consideration, a listing of CEQA documents received by the AQMD between August 1, 2007 and August 31, 2007, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, September 28, 2007)

25. Rule and Control Measure Forecast
Chang (909) 396-3186
(echang@aqmd.gov)

This report highlights AQMD rulemaking activity and public workshops potentially scheduled for the year 2007 and portions of 2008.

26. Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of 2007-08
Marlia (909) 396-3148
cmarlia@aqmd.gov

Information Management is responsible for data systems management services in support of all AQMD operations. This action is to provide the monthly status report on major automation contracts and projects to be initiated by Information Management during the first six months of FY 2007-08.

27. Report of RFPs and RFQs Scheduled for Release in October
Pearce (909) 396-2828
rpearce@aqmd.gov

This report summarizes the RFPs and RFQs for budgeted services over $50,000 scheduled to be released for advertisement for the month of October. (Review: Administrative Committee, September 14, 2007)

28. Items Deferred from Consent Calendar

29. Administrative Committee
Chair: Burke
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

30. Legislative Committee
Chair: Carney
Abarca (909) 396-3242
(oabarca@aqmd.gov)

31. Mobile Source Committee
Chair: Loveridge
Chang (909) 396-3186
(echang@aqmd.gov)

32. Stationary Source Committee
Chair: Yates
Coy (909) 396-2434
(ccoy@aqmd.gov)

33. Technology Committee
Chair: Wilson
Liu (909) 396-2105
(cliu@aqmd.gov)

34. Mobile Source Air Pollution Reduction Review Committee
Chair: Antonovich
Hogo (909) 396-3184
(hhogo@aqmd.gov)

35. California Air Resources Board Monthly Report
Board Rep: Loveridge
McDaniel (909) 396-2821
(smcdaniel@aqmd.gov)

36. Approve Amendments to Policy for Board Member Assistants and Board Member Consultants
Wiese (909) 396-3460
(kwiese@aqmd.gov)

In February 1995, the Board adopted a policy regarding Board Member Assistants and Board Member Consultants. This action is to revise the policy to make the Board the appointing authority, with either the Board or the Board Member served having authority to terminate an appointment; to adopt conflict-of-interest standards required by Government Code section 1126; to delete a contract provision allowing Board Member Assistants and Board Member Consultants to volunteer their services. Changes in the policy for Board Member Assistants and Board Member Consultants will require corresponding changes to the terms of employment contracts with the District and to the District’s Salary Resolution, Personnel Rules, and Administrative Code.

PUBLIC HEARINGS

37. Amend Rule 1112.1 - Emissions of Particulate Matter and Carbon Monoxide from Cement Kilns
(Continued from September 7, 2007 Board meeting)
Chang (909) 396-3186
echang@aqmd.gov

Staff recommends that this item be continued to a later date.

The proposed amendments establish an alternative averaging time for grey portland cement kilns to that in Rule 407 contingent to CO mass emission limitations. (Review: Stationary Source Committee, July 27, 2007)

38. Amend Rule 1403 – Asbestos Emissions from Demolition/ Renovation Activities
Chang (909) 396-3186
(echang@aqmd.gov)

Rule 1403 - Asbestos Emissions from Demolition/Renovation Activities limits asbestos emissions from building demolition and renovation activities, including the removal and associated disturbance of asbestos-containing materials, as well as the storage and disposal of asbestos-containing waste material generated or handled by these activities. The proposed amendments are designed to clarify rule intent and improve enforceability and overall rule effectiveness. (Review: Stationary Source Committee, September 28, 2007)

PUBLIC COMMENT PERIOD – (Public Comment on Non-Agenda Items, Pursuant to Government Code Section 54954.3)

BOARD MEMBER TRAVEL – (No Written Material)

Board member travel reports have been filed with the Clerk of the Boards, and copies are available upon request.

CLOSED SESSION – (No Written Material)
Wiese (909) 396-3460
(kwiese@aqmd.gov)

It is necessary for the Board to recess to closed session 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 actions are:

• Association of American Railroads, et al. v. SCAQMD, et al.,
  U.S. District Court Case No. CV06-1416 JFW (PLAx) and United States
  Court of Appeals for the Ninth Circuit Docket No. 07-55804;
   
• Engine Manufacturers Association, et al. v. SCAQMD, et al.,
  United States Court of Appeals for the Ninth Circuit Docket No. 05-56654;
   
• NRDC, et al. v. SCAQMD, et al.,
  Los Angeles Superior Court Case Nos. BS105728 and BS110792;
   
• SCAQMD v. California Public Utilities Commission,
  Court of Appeal of the State of California, Second Appellate District, Division 4,
  Case No. B196246;
   
• Pacific Merchant Shipping Association v. Cackette,
  United States District Court, Eastern District (Sacramento),
  Case No. 2:06-CV-02791-WBS-KJM; and
   
• National Paint & Coatings Association, Inc. v. South Coast Air Quality
  Management District, (Orange County Superior Court Case No. 04CC00002),
  Federal Case No. CV 04-2213-DDP (SSx).

It is also necessary for the Board to recess to closed session pursuant to Government Code section 54957 to confer with its counsel regarding PUBLIC EMPLOYEE APPOINTMENT (Titles: Board Member Assistant (1) and Board Member Consultants (2)).

ADJOURNMENT

ACRONYMS

AQIP = Air Quality Investment Program
AVR = Average Vehicle Ridership
Cal/EPA = California Environmental Protection Agency
CARB = California Air Resources Board
CEMS = Continuous Emissions Monitoring Systems
CEQA = California Environmental Quality Act
CE-CERT = College of Engineering-Center for Environmental Research and Technology
CNG = Compressed Natural Gas
CO = Carbon Monoxide
CTG = Control Techniques Guideline
EV = Electric Vehicle
FY = Fiscal Year
HRA = Health Risk Assessment
IAIC = Interagency AQMP Implementation Committee
IGA = Intergovernmental Affairs
LEV = Low Emission Vehicle
LNG = Liquefied Natural Gas
MOU = Memorandum of Understanding
MSERCs = Mobile Source Emission Reduction Credits
MSRC = Mobile Source (Air Pollution Reduction) Review Committee
NESHAPS = National Emission Standards for Hazardous Air Pollutants
NGV = Natural Gas Vehicle
NOx = Oxides of Nitrogen
NSPS = New Source Performance Standards
NSR = New Source Review
PAMS = Photochemical Assessment Monitoring Stations
PAR = Proposed Amended Rule
PM10 = Particulate Matter £ 10 microns
PM2.5 = Particulate Matter < 2.5 microns
PR = Proposed Rule
RFP = Request for Proposals
RFQ = Request for Quotations
RTC = RECLAIM Trading Credit
SCAG = Southern California Association of Governments
SIP = State Implementation Plan
SOx = Oxides of Sulfur
SULEV = Super Ultra Low Emission Vehicle
TCM = Transportation Control Measure
ULEV = Ultra Low Emission Vehicle
U.S. EPA = United States Environmental Protection Agency
VMT = Vehicle Miles Traveled
VOC = Volatile Organic Compound
ZEV = Zero Emission Vehicle