BOARD MEETING DATE: February 6, 2009
AGENDA NO. 22

REPORT:

Administrative Committee

SYNOPSIS:

The Administrative Committee met Friday, January 16, 2009, and reviewed the proposed agenda for the February 6, 2009 Board meeting. The Committee also discussed various issues detailed in the Committee report. The next Administrative Committee meeting is scheduled for Friday, February 13, 2009, at 9:00 a.m. in Conference Room CC-8.

RECOMMENDED ACTIONS:

Receive and file.
 

Dr. William A. Burke, Chair
Administrative Committee

Background

Attendance: Chair William Burke attended via videoconference. Present at AQMD were Committee Members Jane Carney, Ronald Loveridge, and Dennis Yates. Vice Chair Roy Wilson was absent due to his attendance at a Joint Powers Authority Executive Board meeting in Rancho Mirage.
 

ACTION/DISCUSSION ITEMS:

1. Board Members’ Concerns: None.
    
2. Chairman’s Report of Approved Travel: None.
    
3. Approval of Compensation for Board Member Assistant(s)/Consultant(s): None.
    
4. Report of Approved Out-of-Country Travel: Dr. Wallerstein reported that Dr. Chung Liu will be attending two large international expositions on fuel cells and photovoltaics, being held concurrently February 25-27, 2009 in Tokyo, Japan.
    
5. Receive Public Input on Executive Officer’s Priority Goals for FY 2009-10: Dr. Wallerstein stated that this item is being provided to the Committee for review, which includes revisions, clarifications, and the addition of a “Clean and Green” Program which reflects the Board’s policies related to promotion of sustainability. He also noted that the Committee had requested staff to put together a workforce plan as related to recruitments and retention as more retirements occur, to be provided later this year. Dr. Wallerstein mentioned that many of these are ongoing goals working with outside agencies, other air pollution districts, and stakeholders. Mayor Yates requested an attachment be included regarding achievements made in 2008.
   
   
   FEBRUARY AGENDA ITEMS:
   
   
6. Execute Sole Source Contract to Design & Implement a Multi-Media Pilot Project for Web-based Communications with the Public: Dr. Wallerstein recommended this item be postponed to the February 13, 2009 Administrative Committee meeting.
    
7. Issue RFP for Media Relations Services: Dr. Wallerstein stated that the current contract for media services will be ending in May 2009. This item is to issue an RFP for similar services, which requires the Committee’s approval. Mayor Yates requested that the Westbound Communications contract be extended another 12 months due to their exemplary performance. Dr. Wallerstein noted that Mayor Loveridge had previously requested contracts be rebid to allow for new vendors. Ms. Carney asked for a summary of activities performed by Westbound Communications. Dr. Wallerstein answered that they worked on programs such as the Healthy Hearths Program, the High Emitter Repair or Scrap Program (HEROES, acquired the master of ceremonies for the 20^th Annual Clean Air Awards (NBC Channel 4 News Weathercaster Fritz Coleman), and prepared and distributed DVDs on health precautions for wildfire smoke to mention a few. Mayor Loveridge asked about their performance. Dr. Wallerstein gave them an A- reflective of their proactive approaches, working very well with our staff, innovative ideas and staff is very pleased overall with them. Mayor Yates added that the staff of Westbound is very easy to work with, as he observed with the Leafblower Exchange Program.
   
   Moved by Yates (to extend contract for one year); seconded by Carney; unanimously approved for renewal.
    
8. Execute Contract to Replace Cooling Tower: Eudora Tharp, Asst. DEO/Administrative & Human Resources, stated that the Board previously approved an RFP to replace the cooling tower that services the computer room. Of the resulting proposals, staff recommended execution of a contract with C.I.S. Industrial Maintenance, who had the lowest-cost qualified bid at $79,950.
   
   Moved by Yates; seconded by Carney; unanimously approved. 
9. Execute Contract with Cheryl Wade to Provide Expert Technical Consulting Services and Approve Findings Supporting Contract: Rick Pearce, Chief Financial Officer, explained that Cheryl Wade is an eminently qualified person, worked on AQMD’s financial systems for 25 years, and is knowledgeable regarding billing system program requirements and implementation. This item is to allow Ms. Wade perform a limited scope of work for a total not to exceed $20,000, to namely (1) test system modifications to programs designed to prorate billings, (2) test updates to the current billing system related to plan billings, and (3) test other CLASS billing programs related to Architectural Coatings. Mr. Pearce continued that these financial systems are the most complicated in the agency, with programming requiring expertise. Chair Burke asked what would occur if Ms. Wade did not assist with the contracts, and Mr. Pearce answered that the program implementation would be greatly delayed.
   
   Dr. Wallerstein stated that staff is requesting about 2-3 retired individuals per year to transition current staff in their operations.
   
   Moved by Carney; seconded by Loveridge; unanimously approved.
    
10. Recommendation to Approve Nominations for Newly Formed Environmental Justice Advisory Group: Pom Pom Ganguli, Asst. DEO/Public Affairs, stated that this item will be postponed to the February 13 Administrative Committee meeting.
     
11. Local Government & Small Business Advisory Group Minutes for November 14, 2008 meeting: Attached for information only is the Local Government & Small Business Advisory Group minutes for the November 14, 2008 meeting.
     
12. Review February 6, 2009 Governing Board Agenda: There were no items reported.
     
13. Other Business: Dr. Wallerstein presented an urgent item (Recommendation to Terminate Guaranteed Investment Contract and Escrow Agreement with MBIA Insurance Corporation; Establish Debt Service Fund with AQMD Treasurer) which was brought to his attention after the agenda was posted. Kurt Wiese, General Counsel, stated that the Committee has to make a finding to take immediate action on this item. Moved by Yates; seconded by Loveridge; unanimously approved to add to the February 6, 2009 Board agenda.
    
    Mr. Pearce explained that in 2006 the Board entered into an agreement with MBIA Insurance Corporation (MBIA), an AAA-rated provider of investment contracts. The rating of the provider, MBIA, was downgraded in November 2008 from A2 to Baa1 activating a provision in our contract giving them three options: (1) assign agreement to another AAA provider; (2) add more collateral, or (3) terminate the agreement with no cost to AQMD. MBIA decided to increase the collateral to 109% from 104% but has offered to terminate the agreement at AQMD’s election.
    
    There was a lengthy discussion regarding what the Committee Members’ desire was regarding this issue – including whether to keep the money with MBIA at an interest rate of 4.88%, or terminate and place with Los Angeles County (AQMD’s Treasurer) at lower earnings.
    
    Dr. Wallerstein recommended the item be agendized for the February 6, 2009 Board meeting, and that the Board letter allow several options, such as keeping money with MBIA, pulling money out, and provide consequences of each action. He stated this item required timeliness of action.
    
    Mayor Yates commented that Mr. Pearce was performing his fiduciary responsibility to the Board by bringing this issue forward.
    
    Moved by Yates; seconded by Burke; unanimously approved.
     
14. Public Comment: None.
     

Meeting adjourned at 9:45 a.m.
 

Attachment (DOC, 83k)

Local Government & Small Business Assistance Advisory Group Minutes for November 14, 2008