BOARD MEETING DATE: January 9, 2009
AGENDA NO. 16

REPORT:

Administrative Committee

SYNOPSIS:

The Administrative Committee met Friday, December 12, 2008, and reviewed the proposed agenda for the January 9, 2009 Board meeting. The Committee also discussed various issues detailed in the Committee report. The next Administrative Committee meeting is scheduled for Friday, January 16, 2009, at 9:00 a.m. in Conference Room CC-8.

RECOMMENDED ACTION:

Receive and file.
 

Roy Wilson, Vice Chair
Administrative Committee

Background

Attendance: Vice Chair Roy Wilson attended via videoconference. Present at AQMD were Committee Members Jane Carney and Dennis Yates. Mayor Loveridge was absent due to his attendance at CARB’s monthly meeting; and Chair William Burke was attending the California Coastal Commission meeting. Dr. Joseph Lyou joined the meeting to hear the discussion on item #5.

ACTION/DISCUSSION ITEMS:

1. Board Members’ Concerns: Ms. Carney requested staff begin looking at budget options in case of a reduction in funding levels.
 

2. Chairman’s Report of Approved Travel: None.
 

3. Approval of Compensation for Board Member Assistant(s)/Consultant(s): Mayor Pulido has requested approval of a proposal for a new Board Consultant, Luis Pulido. Ms. Carney requested the proposal be referred to the Board Chair for further discussion with Mayor Pulido to review the full set of qualifications. Supervisor Wilson requested a tentative approval subject to the Chairman’s comfort level with the qualifications of this Board Consultant.
Motion by Carney; seconded by Yates; and unanimously approved.
 

4. Report of Approved Out-of-Country Travel: None.
 

5. BP/SCAQMD Public Benefits Programs Update: Dr. Wallerstein stated that the BP/SCAQMD (Public Benefits Oversight) Committee met earlier this week, awarded additional contracts, and approved release of an RFP. The RFP will solicit proposals for health effects studies related to air pollution. He noted that there is an ongoing issue as to whether all the expenditures should occur near the BP facility or in all four counties because some of the pollutant emissions from the facility travel downwind to form ozone and particulates. Dr. Wallerstein said that it was his understanding that the Board wanted to spend a majority of the funds in the geographic area closest to the facility, with the balance going to the remaining three counties.

Jean Ospital, Health Effects Officer, explained that the Public Benefits Oversight Committee will be allocating funding of over $30 million over a 10-year period. The programs initiated by this Committee have allowed for five Breathmobiles including, in the Long Beach/Carson areas. Dr. Ospital continued that the Open Airways Program, implemented by the American Lung Association, is provided for schools to educate children and their families on the effects of asthma, how to help prevent symptoms, how to use their medications, and other medical services which are available. Dr. Wallerstein added many of the asthma services are in the South Bay area near the facility.

Dr. Ospital continued that the Committee combined Year 3 and 4 funds to issue RFPs for worthy projects. The results were as follows: to continue the operations of the Breathmobiles for an additional two years, increasing to six units as requested; continue the medical clinic and services in the South Bay area for an additional two years, to include home visits, asthma prevention education, and the American Lung Associations’ program in the schools, expanding it to middle and high school levels. Additional projects funded include the Long Beach Health Department to focus on adults with asthma and home-based illness prevention efforts, over a two-year period. Also included are two projects by the Riverside County Health Department and the San Bernardino Health Department related to asthma care, referral, and education. Dr. Ospital continued that the Committee disbursed funds from the BP Settlement to fund three one-week asthma camps for children with asthma. The Asthma & Allergy Foundation has a camp in the San Bernardino Mountains, and the American Lung Association has a camp in Julian (San Diego County); Dr. Wallerstein mentioned that children will be accepted from throughout the four-county South Coast area. This last summer Mayor Yates and Supervisor Ovitt reported that the camps were very successful and recommended they be supported again. The Committee requested, in concurrence with AQMD staff’s recommendation, to evaluate the Asthma & Allergy and American Lung Association camps to help determine whether to fund these in the future. Dr. Ospital stated that the Committee received a proposal from the Los Angeles Conservation Corps for funding of up to $97,000 for 300 trees to be planted in the Carson area around the refinery.

Dr. Ospital stated that other proposals received but not funded were: 1) a proposal to install air filters in classrooms in the Long Beach/Carson/West Long
Beach/Wilmington areas to use funds from the Valero settlement; 2) a request from the Challengers Girls & Boys Club to conduct a campaign to construct a new activity track in the community garden for $1 million; 3) received a proposal for physical fitness classes to be conducted in the Carson area (which is good for overall health but the connection between air pollution and health effects was not clearly made). Others included a request for classes from the Gas Company to train fleet operators, a pilot research project by Children’s Hospital and UC Irvine, and, finally, from Western Riverside Council of Governments, a proposal to provide a $300 voucher to individuals-in-need to test and inspect their high-emitting vehicles and possibly conduct repairs through a program called Car Care for Clean Air.

The Public Benefits Committee funded five projects, and issued an RFP (January 2009) with $1 million of the total funding targeted for health effects research; but also requested the right to use those funds for other projects if they felt they were more appropriate. Dr. Ospital stated that decisions on these projects will be determined in April 2009.

The Administrative Committee confirmed its desire to continue projects in all four counties rather than just adjacent to the refinery.

Dr. Lyou thanked the Administrative Committee for allowing him to participate in this portion of the meeting, and stated that his preference would be to spend more BP Settlement funds within the communities adjacent to the refineries.
 

JANUARY AGENDA ITEMS:

6. Audit for FY Ended June 30, 2008: Rick Pearce, Chief Financial Officer, introduced Michael deCastro, Principle of Thompson, Cobb, Bazilio, & Associates, who stated that the financial statement ending June 30, 2008, received an unqualified opinion (which is the highest level which can be received) after auditing of all financial statements, minutes of various meetings, and assessment of risks involved with various procedures.

Dr. Wallerstein asked for confirmation that the firm has continued to seek demonstration of high standards by AQMD as it does its other clients, and Mr. Castro answered that it would be a huge risk for an audit firm to take their audits lightly with clients. Mr. deCastro added that new auditing standards require audit firms to maintain substantial documentation for each audit. Moved by Carney; seconded by Yates; and unanimously approved.
 

7. Annual Report on 457 Deferred Compensation Plan: Mr. Pearce stated that two questions were asked from the previous meeting as follows: 1) what is the Board’s fiduciary responsibility, and 2) what is the makeup of the Deferred Compensation Committee. Mr. Pearce explained that the Committee, established in the mid-1980’s, went through a more formal process last year with the assistance of the consultants, which included a charter, the establishment of an investment policy, and quarterly meeting to review the analysis of the funds as required by ERISA and state law. Ms. Carney asked what the Administrative Committee was to be reviewing as it relates to the report provided, and Mr. Campbell, the principal of BSFG, answered that the Committee was to monitor the activities of the funds within the plan by reviewing the minutes and considering the funds that are being monitored quarterly. Mr. Campbell stated that investments are performing as required for the participants, as required by statutory law and as allowed for diversified investments, and access is available to on-line services. As to the composition of the Committee, Mr. Campbell said that for the vast majority of his public sector clients, the committees were composed of the agency’s staff. In a small number of cases, committees included members of the governing body. He said there were no conflicts of interest inherent in such an arrangement. Moved by Carney; seconded by Yates; and unanimously approved.
 

8. Issue RFP for Greenhouse Gas Reduction Program Services: Jill Whynot, Director/Strategic Initiatives/Planning, Rule Development & Area Sources, stated that an RFP has been released to identify firms which can assist AQMD under Proposed Rule 2702 – Climate Change Initiates and Greenhouse Gases. Staff is recommending the proposals be brought back to the Board in May 2009. Ms. Carney asked if this is exploratory and whether AQMD staff could provide these services to include verifying credits from other sources. Dr. Wallerstein explained that the California Climate Registry has an exchange program on-line and has asked AQMD to sell credits on their newly created exchange. He noted that the state air board has approved the AB 32 Scoping Plan to be implemented as soon as regulations are drafted pertaining to the cap and trade program. He continued that Dr. Burke has requested staff to review options and then request the Board to compare and decide on a best approach. Dr. Wallerstein stated that there is an agreement with the Western States Initiative where the participants have agreed to set up cap and trade programs to include general guidelines of what they are supposed to do, but each state has flexibility, within the guidelines, to auction the allowances with outside exchanges. He continued that CARB adopted the Scoping Plan stating that they will administer their offset program.
Moved by Yates; seconded by Carney; and unanimously approved.
 

9. Appropriate Funds from Undesignated Fund Balance to Science and Technology Advancement FY 2008-09 Budget for Expanded PM2.5 Monitoring and Other Ongoing Enhanced Activities: Philip Fine, Atmospheric Measurements Manager, Science & Technology Advancement, explained that the planning of the next AQMP has already begun for 2011, with the major item being to address the 24-hour PM2.5 standard. Dr. Fine stated that in order to address that standard, AQMD’s modelers will pick a modeling year as a benchmark for technology studies, which requires support from the modeling network. There has been a request for Technology Advancement and Monitoring to enhance the PM2.5 speciation network, and also support other models, calibrate the models, and assess the models. Staff is requesting additional moneys to accomplish these activities. Moved by Yates; seconded by Carney; and unanimously approved.
 

10. Amend Contracts to Provide Short- and Long-Term Systems Development, Maintenance and Support Services: Chris Marlia, Asst. DEO/Information Management, stated that this item is to increase funds for two special projects –

AB 32 emission reporting, and to support PM2.5 monitoring equipment for fire activities.
Moved by Carney; seconded by Yates; and unanimously approved.
 

11. Report on Major Projects for Information Management Scheduled to Start During Last Six Months of FY 2008-09: Mr. Marlia stated that this is a status report to list the projects to be completed for the next 6 months.
Moved by Yates; seconded by Carney; and unanimously approved.
 

12. Local Government & Small Business Advisory Group Minutes for October 10, 2008 meeting: Attached for information only are the Local Government & Small Business Advisory Group minutes for the October 10, 2008 meeting.
 

13. Review January 9, 2009 Governing Board Agenda: Dr. Wallerstein stated that two items will be delayed one month: Proposed Rule 1144 – Lubricants and Rust Inhibitors; staff would like to conduct additional lab work on VOC concentrations, and Proposed Rule 2702 – to enhance public noticing and to further compare the differences of Climate Exchange gases vs. criteria pollutants.

Dr. Wallerstein added that a previous discussion was held regarding scheduling an offsite Board meeting to discuss special air quality studies in the San Bernardino and Riverside area dealing with hexavalent chrome, which are related to cement plants. After further discussing this issue with Dr. Burke, it will be determined whether to schedule the February or March 2009 Board Meeting offsite and with an opportunity for community members to be able to meet with the Board Members the previous night. Moved by Yates; seconded by Carney; and unanimously approved.
 

14. Other Business: None.
 

15.  Public Comment: None.
 

Meeting adjourned at 10:11 a.m.
 

Attachment (DOC, 56k)

Local Government & Small Business Assistance Advisory Group Minutes for October 10, 2008