BOARD MEETING DATE: January 8, 2010
AGENDA NO. 22

REPORT:

Administrative Committee

SYNOPSIS:

The Administrative Committee met on Friday, December 11, 2009. The Committee discussed various issues detailed in the Committee report. The next Administrative Committee meeting is scheduled for Friday, January 15, 2010, at 10:00 a.m. in Conference Room CC-8. 

RECOMMENDED ACTION:

Receive and file.
 

Dr. William A. Burke, Chair
Administrative Committee

Attendance: Present at the December 11, 2009 meeting via videoconference/
teleconference were Chair Burke and Committee Members Carney and Ashley. Present at AQMD were Committee Members Josie Gonzales, Ronald Loveridge and Dennis Yates.  

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: None.
   
   
5. Weather Reports Sponsorship on TV: Dr. Wallerstein mentioned that this item will be delayed one month. 
   
   
   JANUARY AGENDA ITEMS:
   
   
6. Audit for FY Ended June 30, 2009: Albert Lucas, Engagement Partner with Thompson, Cobb, Bazilio & Associates, PC, made a presentation as to AQMD’s annual audit which received an unqualified opinion (the highest obtainable). The auditors found that AQMD management has complied with all audit reports and no weaknesses in internal controls were found.
   
   Mrs. Carney requested the full audit report be provided to Committee members prior to bringing this item to the Committee for enhanced review so that a recommendation may be made to the full Board. Mrs. Carney also requested that the Committee Members meet with the auditors to (1) be informed of the requirements for government audits and their practices, and (2) to determine what recommendations and findings will be made by the audit firm prior to the completion of the audit. Mrs. Carney requested that the meeting with the auditors be scheduled for the January 15, 2010 Administrative Committee meeting where Committee members meet with the auditors without staff present, to determine the criteria reviewed and to provide further assurance of the financial status of this agency.
   
   Dr. Burke and Committee Member Loveridge concurred with this proposed process.
   
   Committee Member Gonzales asked whether staff submitted a copy of the questionnaire to the Board Members or was additional testing completed by the auditors. Dr. Wallerstein answered that the questions will be forwarded to the Committee Members.
   
   Moved by Gonzales to delay this item one month; seconded by Loveridge; and unanimously approved.
   
   
7. Amend Contract for Natural Gas Hearth Product Buy-Down Program: Jill Whynot, Director, Strategic Initiatives, stated that in the past 1 ½ years AQMD has contracted with two retail gas log providers who have been assisting with the Buy-Down Incentive Program. The original funding was $1.5 million (which provided customers with a $100 discount along with the retailers providing a $25 discount) to install gas log systems to replace existing wood burning fireplaces, which are better for air quality. Ms. Whynot continued that 4,400 clean-burning gas log installations have been made through this program. Staff is requesting $250,000 from interest earned from Rule 1309.1 to extend the contract to increase the units to 7,500.
   
   Moved by Yates; seconded by Gonzales; unanimously approved.
   
   
8. Execute Contract for the Development of Land Use Emission Model Software: Elaine Chang, DEO/Planning, Rule Development & Area Sources, explained that this project is being brought to the Committee’s attention because of a legal dispute involving the prior contractor who developed the land use emission model which is widely used by public agencies and consultants, and has claimed ownership of the software. While trying to resolve this dispute, an RFP was issued to solicit other consultants to develop an alternative land use model to be used by air districts and CEQA lead agencies. Dr. Chang stated that four proposals were received with two being assessed as meeting technical criteria, which then proceeded for further evaluation.
   
   Based on the evaluations of the two most qualifying proposals, staff is recommending Environ to be contracted to develop this alternative land use emission model at a cost not to exceed $229,500, not only to develop comparable functioning software but also add enhancements regarding indirect GHG emissions for development projects. Staff is requesting the Committee’s approval with funding coming from undesignated funds.
   
   Dr. Wallerstein stated that this tool will be useful for cities and counties as SB 375 is being implemented. Historically, traditional assessments of criteria pollutants were conducted; now there is the need to assess greenhouse gases. The augmentation Dr. Chang is asking for allows calculation of indirect GHG emissions, as the attorney general is asking for assessment of total impacts as related to power generation and similar projects. It will be an important tool for cities and counties and the development sector and provide data requested by communities.
   
   Moved by Yates; seconded by Gonzales; unanimously approved.
   
   
9. Amend Contract with Technical and Business Systems, Inc. for Air Quality Pollutant Measurements Aloft: Laki Tisopulos, Asst. DEO/Planning, Rule Development & Areas Sources, stated that in 2008 staff contracted with Technical and Business Systems, Inc. for air quality pollutant measurements aloft in the basin. Staff is proposing to amend the contract and continue collecting additional data to delineate seasonal and weekend variability, and is requesting to increase the contract by $110,000 (of which $60,000 is budgeted and $50,000 is from U.S. EPA grant monies).
   
   Moved by Gonzales; seconded by Yates; unanimously approved.
   
   Vice Chair Yates left the meeting at 9:35 a.m.
   
   
10. Execute Contract for Public Policy Consulting Regarding Local, State and Federal Transportation Issues: Four Committee members -- Yates, Carney, Ashley and Loveridge -- either abstained or recused themselves from this item due to either Lee Andrews Group or Germania being a source of income or campaign contributions.
    
    Barbara Baird, District Counsel, stated that since only two Committee Members remained to make comments on this item, this item should be forwarded to the full Board with the remaining committee member’s comments.
    
    Oscar Abarca, DEO/Legislative & Public Affairs, explained that at the October 2, 2009, Board meeting an RFP was issued for consulting services regarding transportation policy issues at the local, state and federal levels, relative to federal surface transportation reauthorization legislation. Staff has received three proposals and is requesting to award the contract to the bidder with the highest overall score, Lee Andrews Group, for an amount not to exceed $100,000. The contract would begin in January 2010 for one year, with option for two one-year extensions at the Board’s discretion.
    
    Dr. Burke mentioned that he thought the contract amount was for $150,000 and Mr. Abarca responded that the RFP was released for $100,000. Chair Burke stated that he felt due to the increased complexity and urgency of numerous federal transportation issues, we should increase the funding to $150,000. Dr. Wallerstein explained that the Request for Proposals was for $100,000, but Germania (existing contractor) has at least $50,000 left in their current contract. He stated that the award here is for a new contract but we would still have the expertise of the existing contractor for the remaining contract amount, and having two high-quality firms would be beneficial to AQMD. Chair Burke suggested that the complexity has increased in the last few months, including critical touch points with emerging climate change policies. Dr. Wallerstein noted that he could authorize additional funds as needed in the future, as augmentation to the contract; and stated that timing is of the essence to get the contractors on board because negotiations are currently occurring. He encouraged moving this item forward to the next level – the full Governing Board – for approval.
    
    Moved by Burke; seconded by Gonzales; no quorum was present as several Committee Members abstained.
    
    Vice Chair Yates returned to the meeting at 9:40 a.m.
    
    
11. Amend Contract with Cordoba Corporation to Continue Implementation of Air Quality Institute: Committee Member Gonzales abstained due to a campaign contribution from Cordoba. Mr. Abarca explained that many successful AQI meetings have been hosted with Cordoba Corporation, comprising of educational briefings with communities, businesses, schools, labor, faith-based organizations, as well as elected officials and other groups at the local, state and national levels. Several meetings have been attended by Board Members and much progress has been made to communicate AQMD’s policies and priorities to key stakeholders. The current contract with Cordoba expires in January 2010 with staff recommending a one-year term extension at a cost of $135,300.
    
    Committee Chair Carney asked if the next round of AQIs will include information about the near-freeway health effects of pollution, and Mr. Abarca answered affirmatively.
    
    Committee Member Loveridge asked about the metrics for success for these meetings and the number of individuals who attended. Mr. Abarca answered that there are multiple methods used. Mr. Abarca continued that earlier this week Dr. Wallerstein, Dr. Chang, and Mr. Nazemi attended an AQI at the Orange County Business Council. Subsequently in a newsletter it was stated that, “…AQMD is a good example of regulatory agency who partners with business and the community to develop policies that meet both environmental and economic needs of the region…” Mr. Abarca stated that as we further engage with either our supporters or those who oppose us, we share viewpoints and make progress in our dialogs with all stakeholders.
    
    Chair Burke stated that this is the third renewal of this contract and it would be beneficial to devise a system to judge the success of this program, as it was difficult to quantify degree of success vs. cost. He added his approval to this item, but requested to have quantitative markers of success, in the future. Dr. Wallerstein suggested additional material be included in the Board letter to address the track record of attendance at these meetings to date.
    
    Moved by Loveridge; seconded by Yates; unanimously approved.
    
    
12. Execute Contract for Health Insurance Brokerage and Consultant Services:  Eudora Tharp, Asst. DEO/Administrative & Human Resources, stated that AQMD contracts with an insurance broker to obtain cost-effective insurance coverage for its employees.  Mercer’s proposal, submitted in response to an RFP, received the evaluation panel’s highest rating and they also had excellent references from other government agencies in the area.  This action is to recommend a contract with Mercer for a three-year period; this is a no-cost contract as the services are paid through the insurance carrier commissions.
    
    Moved by Loveridge; seconded by Yates; unanimously approved.
    
    
13. Amend Contract for Workers’ Compensation Third-party Administrative Services:  Ms. Tharp stated that in 2007 the Board approved a contract with ACME Administrators for workers’ compensation third-party administration.  The contract is due to expire at the end of June 2010.  To avoid significant costs associated with advertising a request for proposals and transferring claims files to another carrier, and to lock in competitive rates and continue receiving excellent service, staff recommends extension of this contract for one year through June 2011.  Funding in the amount of $54,547 will be included in next year’s budget.   Dr. Wallerstein stated that, when this contract ends in June 2011, the contract will go out to bid.
    
    Moved by Yates; seconded by Ashley; unanimously approved.
    
    
14. Authorize Purchase of Network Servers: Chris Marlia, Asst. DEO/Information Management, stated this item is to replace some of AQMD’s older servers that host our website and internet security servers that do filtering of websites. An RFQ was sent out on October 7, 2009, with the bid from New Day Computer subsequently receiving the highest score from the evaluating panel. This item is to recommend purchasing five servers from New Day Computers at a cost of $70,539 which is budgeted.
    
    Committee Member Gonzales asked what is the length of time these servers would ostensibly provide service, and Mr. Marlia answered that each five years these servers are replaced as that is the working life, and Dr. Wallerstein added that this area of information technology develops very quickly.
    
    Moved by Gonzales; seconded by Yates; unanimously approved.
    
    
15. Establish List of Prequalified Vendors to Provide Computer, Network, and Printer Hardware and Software, and Purchase Desktop Computer Hardware Upgrades: Mr. Marlia stated that this item is to prequalify a list of vendors to purchase equipment that requires replacing or upgrading as determined by productivity needs. Chair Burke asked why does the list last for two years, and Mr. Marlia answered that this is a timeframe whereby vendor prices typically can remain stable. Dr. Wallerstein added that this is balanced with the amount of effort by staff in analysis of received proposals.
    
    Committee Chair Gonzales asked if the equipment replacement policy includes the life span of the equipment requirements, and Mr. Marlia answered affirmatively, and that the purchase of equipment is included in the budget process.
    
    Dr. Wallerstein mentioned that he will request the IT auditors to comment on and compare AQMD’s equipment replacement policy regarding timelines with standard timelines in other organizations.
    
    Moved by Carney; seconded by Gonzales; unanimously approved.
    
    
16. Report on Major Projects for Information Management Scheduled to Start During Last Six Months of FY 2009-10: Mr. Marlia stated that this is a status report on the Information Management projects which is provided to the Board each month where staff identifies projects going to the Board in the next six months.
    
    Barbara Baird, District Counsel clarified that this was a report only and no motion was necessary.
    
    
17. Draft Minutes of Environmental Justice Advisory Group for October 30, 2009 meeting: Attached for information only are the draft minutes from the October 30, 2009 Environmental Justice Advisory Group meeting.
    
    
18. Local Government & Small Business Advisory Group Minutes for October 9, 2009 meeting: Attached for information only are the minutes from the October 9, 2009 Local Government & Small Business Advisory Group meeting.
    
    
19. Review January 10, 2010, Governing Board Agenda: Mayor Loveridge asked about Item #22 on the January 8, 2010 Board agenda (Set Public Hearing February 5, 2010 to Receive Public Input on Executive Officer’s Priority Goals for FY 2010-11). Dr. Wallerstein stated staff will bring the draft input to the January 15, 2010 Administrative Committee meeting first, prior to the full Board reviewing this item which is part of an annual process. He continued that this item notifies the public that the proposed goals and objectives will be considered by the Board at its February 5, 2010 Board meeting, with the document provided to the Board with ample time for review and recommendations.
    
    Dr. Wallerstein mentioned that at this year’s Board Retreat to be held on April 29-30, 2010, long-term positioning for the agency will be discussed, to be reflected in subsequent goals and objectives.
    
    Committee Member Carney stated that the approval of the contract for legislative representation in Sacramento is on the January 8, 2010 Board agenda, but the approval for legislative representation in Washington, D.C. does not appear on the agenda. Dr. Wallerstein answered that he has requested Dr. Burke to schedule a Special Board meeting via telephone prior to the end of the year to approve or amend the legislative contracts for Sacramento. Tania Christman, Executive Secretary, mentioned that the meeting was tentatively scheduled on December 18 at 11 a.m. via teleconference. Dr. Wallerstein stated that if this date is not convenient, then an alternate date and time will be sought to review both the Sacramento and Washington, D.C. contracts. Mrs. Carney asked that both items be added to the January Board agenda in case the meeting does not occur.
    
    Dr. Wallerstein stated that due to recent receipt of EPA’s Clean Air Act decision, related to the San Joaquin rule, that PR 317 (Clean Air Act) may either be revised or postponed yet again due to a decision; AQMD has been notified it is in violation of the federal Clean Air Act, but other air districts are also receiving this letter.
    
    
20. Other Business: None.
    
    
21. Public Comment: None.
    

Meeting adjourned at 10:05 a.m. 

Attachments (EXE, 130k)

1. Draft minutes from the October 30, 2009 Environmental Justice Advisory Group meeting
   
2. Minutes from the October 9, 2009, Local Government & Small Business Assistance Advisory Group meeting