BOARD MEETING DATE: March 5, 2010
AGENDA NO. 29
REPORT:
Administrative Committee
SYNOPSIS:
The Administrative Committee met on Friday, February 12, 2010. The Committee discussed various issues detailed in the Committee report. The next Administrative Committee meeting is scheduled for Friday, March 12, 2010, at 10:00 a.m. in Conference Room CC-8.
RECOMMENDED ACTION:
Receive and file.
Dennis Yates, Acting Chair
Administrative Committee
Attendance: Attending the February 12, 2010 meeting via videoconference was Committee Member Ashley. Present at AQMD were Committee Members Jane Carney, Josie Gonzales, and Dennis Yates, who served as Chair in Dr. Burke’s absence.
ACTION/DISCUSSION ITEMS:
1. Board Members’ Concerns: None.
2. Chairman’s Report of Approved Travel: Dr. Wallerstein reported that a trip had been anticipated for Councilwoman Reyes Uranga; however, as the Councilwoman was no longer serving on the Governing Board, she would not be undertaking the trip. Dr. Wallerstein took the opportunity to report to the Committee that the City Selection Committee for Los Angeles County, Western Region, had an election the previous week to select its representative to the Governing Board, which resulted in Rolling Hills Estates Councilwoman Judith Mitchell being selected as Board Member representing the Cities of Los Angeles County/Western Region.
3. Approval of Compensation for Board Member Assistant(s)/Consultant(s): None.
4. Report of Approved Out-of-Country Travel: None.
MARCH AGENDA ITEMS:
5. Revised Guidelines for Supplemental Environmental Projects Included in Enforcement Settlement: General Counsel Kurt Wiese advised that since 1990 the District Prosecutor’s Office (DPO) has settled certain eligible violations with Supplemental Environmental Projects (SEPs), which are settlements where the cash penalty portion is either reduced or eliminated in exchange for the violator agreeing to undertake a project that creates direct or indirect air quality benefits. SEPs are commonly used in settling violations against public agencies and non-profits. The DPO has had a SEP policy since 2001, based on a 1998 policy adopted by CalEPA and revised in 2003. The primary changes in the policy are (1) to clarify that it is appropriate to accept a settlement that is 100% SEP (no cash portion to the penalty), and (2) to determine that appropriate SEPs may include a public outreach project or a project to inform the public about the District’s air quality program. Dr. Wallerstein added that instances where 100% SEP would occur are intended for government agencies, non-profits, charities, schools and healthcare facilities. In regard to public outreach, Dr. Wallerstein noted there are outreach programs possible with certain firms, such as the recent WalMart settlement, which can facilitate public outreach efforts. He further added that money collected goes into the General Fund and is later reappropriated, so this item will enable efficiencies and still be appropriate in the context of the Board’s overall policies. This item would not typically be brought to the Board for approval, however Dr. Wallerstein sought to keep the Board informed in regard to this revision in the guidelines. A brief discussion followed and Principal Deputy District Prosecutor Nancy Feldman provided an example wherein DPO negotiated an outreach campaign SEP with a small business dry cleaner which proved very effective. Mrs. Carney inquired whether AQMD was differing from the CalEPA SEP guidelines, and Mr. Wiese responded that CalEPA and AQMD SEP guidelines are both advisory, but CalEPA’s guidelines have different recommendations regarding the percentages of penalty cash and non-cash, which is the primary distinction between the two policies. Dr. Wallerstein added that staff would clarify with CalEPA on whether its own SEP guidelines are being followed. Mr. Wiese confirmed that SEPs are used only when the firm can demonstrate that the SEP goes well above and beyond existing regulatory requirements.
6. Establish List of Pre-qualified Legal Counsel to Provide Legal Services Regarding Finance and Related Matters: Mr. Wiese advised that outside legal expertise is occasionally required on finance matters, averaging about $10,000 per year in outside legal fees; and, this item would approve two firms as pre-qualified experts in financial matters. The Straddling Yocca Carlson & Rauth firm has been retained by District Counsel in previous instances with good results; and, the second firm, Quateman LLP, scored well in the RFP and Counsel staff is looking forward to working with them as well.
Moved by Carney; seconded by Gonzales; unanimously approved, with Supervisor Ashley abstaining.
7. Establish Special Revenue Funds: Emission Reduction Education and Outreach Fund; Rule 1118 Mitigation Fund: Chief Financial Officer Rick Pearce reported this item will establish two new special funds, one related to agenda number five to accept the WalMart SEP as cash into a fund to use for emission reduction education and outreach, while the other relates to establishment of the Rule 1118 mitigation fee fund to receive penalty monies for non-compliant refinery flare emissions. Upon Mrs. Carney’s request for clarification, Mr. Pearce confirmed that this item is simply to establish the funds and any decision on the use of the money would be brought back to the Governing Board for direction.
Moved by Gonzales; seconded by Carney; unanimously approved.
8. Appropriate Funds from Undesignated Fund Balance to Information Management, Legislative & Public Affairs, Science and Technology Advancement, Engineering and Compliance, and Planning, Rule Development and Area Sources FY 2009-2010 Budget for Activities Relating to Permit Moratorium and Prop 1B Program: Mr. Pearce stated that this year’s budget was adopted without anticipating the amount of work related to the Prop 1B projects funding effort, the headquarters’ ground floor flooding incident, nor the amount of overtime required in November and December related to the permit moratorium. These efforts substantially reduced the remaining overtime budget for the rest of the year, thus this appropriation will restore funds back to these budgeted accounts, totaling $588,000.
Moved by Carney; seconded by Gonzales; unanimously approved.
9. Approve Purchase of a Second Industrial Water Heat Exchanger for AQMD Diamond Bar Headquarters: Mr. Pearce reported that this item results from a typographical error in the budget of last year, wherein budget documents requested a heat exchanger in the singular, when two exchangers should have been requested; therefore, this item will authorize the second heat exchanger. These exchangers are a necessary upgrade for the headquarters building.
Moved by Gonzales; seconded by Carney; unanimously approved.
10. Remove Various Fixed Assets from AQMD Inventory: Mr. Pearce advised that this item fulfills District policy to perform a District-wide inventory of all assets every two years and an annual inventory of the Science & Technology Advancement Office assets. This year, the District will write-off or surplus vehicles and analyzers and other laboratory equipment, and recognize that five pieces of equipment were not located; this equipment was old, had no market value and probably had been scavenged for parts to repair like equipment. Supervisor Gonzales inquired whether staff anticipates replacement of equipment upon reaching obsolescence and plans for its replacement in future budgets, whereupon Mr. Pearce confirmed that is staff’s practice.
Moved by Gonzales; seconded by Carney; unanimously approved.
11. Report of RFPs and RFQs Scheduled for Release in March: Mr. Pearce reported that this is a standard item each month before the Committee, and that the two RFQs are to obtain preferred vendors to supply specialty gases for the laboratory and monitoring operations.
Moved by Gonzales; seconded by Carney; unanimously approved.
12. Adopt Rule 310 – Amnesty for Unpermitted Equipment: Assistant DEO/ Planning, Rule Development & Area Sources Laki Tisopulos advised that the rule had been expedited to come before the Governing Board in March; and, that the rule is designed to implement Chairman Burke’s “permit application penalty holiday” initiative. Further details would be reported to the Board’s Stationary Source Committee. Mrs. Carney encouraged that the program be well advertised, whereupon Dr. Wallerstein advised that a media outreach plan for the program was in development and that the program would also be advertised by the Public Affairs staff to chambers of commerce and to city council meetings for distribution by city planning and permitting departments.
13. Issue Purchase Order for CNG Passenger Vehicles for AQMD Fleet: Assistant DEO/Administrative and Human Resources Eudora Tharp reported that the Board previously approved five CNG sedans for the five new inspector positions added in the budget; and this action is to purchase a total of 15 vehicles to also replace high-mileage/high-maintenance-cost vehicles in AQMD’s fleet, using the same RFQ-selected vendor previously approved by the Board to purchase these 15 vehicles at a cost not to exceed $400,000 included in the budget for this year.
Moved by Carney; seconded by Gonzales; unanimously approved.
14. Execute Contract for Insurance Brokerage Services: Ms. Tharp advised that AQMD contracts with an insurance brokerage for cost-effective property and liability insurance, the current contract for which expires in March. Ms. Tharp reported that of the five responsive bids, the highest rating went to Alliant Insurance Services, which is the current broker and has provided excellent service particularly in response to the headquarters’ ground floor flooding. Although the current contract amount with Alliant was $55,000 per year, the bid amount was $49,000 per year; therefore, approval was recommended by Ms. Tharp for this contract.
Moved by Gonzales; seconded by Carney; unanimously approved.
15. Amend Contracts to Provide Short- and Long-Term Systems Development, Maintenance and Support Services: DEO/Information Management Chris Marlia stated that this item would add funds to outsourcing contracts for systems development and software enhancement work. Mr. Marlia further advised that although the draft Board Letter indicated a cost of $554,900, final negotiations for these services resulted in final contracts amounting to $495,000.
Moved by Gonzales; seconded by Carney; unanimously approved.
16. Issue RFP for Media Relations Services: Media Office Manager Sam Atwood advised that this RFP would solicit bids for media and public relation services for a one-year period with option to renew for two additional one-year periods; and, that the scope of work for the media staff and the outside contractor has considerably increased over the last year to include enhanced public relations, public outreach, occasional event planning and video production. Therefore, the RFP amount has increased from $170,000 to $180,000. Mrs. Carney inquired as to the anticipated process for Committee evaluation of the RFP finalists, whereupon Dr. Wallerstein confirmed that the proposed consultants would be brought to the Committee for interview. Supervisor Gonzales commented that she would like to see some “out-of-the-box” thinking in regard to media and public outreach, and that an important focus of such outreach should be young children and their parents. Dr. Wallerstein agreed and recommended that outreach efforts be discussed as part of the upcoming Board Retreat; he also reported on the planned announcement of the District’s upcoming iPhone application, which provided an example of a leading edge effort, for which the District is known. Mayor Yates commended Public Affairs staff on its work at various venues and events and for the District’s outreach efforts via sponsorship of basin-wide events such as the Redlands bicycle event, the Route 66 event, and the Chino car show.
Moved by Gonzales; seconded by Carney; unanimously approved.
17. Proposal for AQMD Sponsorship of Weather Reports on CBS 2-TV: Mr. Atwood updated the Committee on this matter after the previous month’s meeting when the Committee requested the proposals be returned to CBS-2 and ABC-7 for renegotiation or enhancements. Upon comparison of the recently updated and enhanced proposals, Mr. Atwood recommended approval of the 13-week AQMD sponsorship of on-air weather reports and online content with CBS-2 TV in the amount of $66,300, beginning early in the smog season.
Moved by Gonzales; seconded by Carney; unanimously approved.
18. Local Government & Small Business Advisory Group Minutes for December 11, 2009 meeting: Mayor Yates noted the minutes were attached for the Committee’s reference.
19. Approve Local Government & Small Business Assistance Advisory Group Accomplishments for 2009 and Goals and Objectives for 2010: Attached for information only are the minutes from the Local Government & Small Business Assistance Advisory Group, as well as the group’s Accomplishments for 2009 and Goals and Objectives for 2010.
Moved by Carney; seconded by Gonzales; unanimously approved.
20. Approve Environmental Justice Advisory Group Accomplishments for 2009, and Goals and Objectives for 2010: Attached are the Environmental Justice Advisory Group Accomplishments for 2009, as well as the Goals and Objectives for 2010.
Moved by Carney; seconded by Gonzales; unanimously approved.
21. Review March 5, 2010, Governing Board Agenda: Dr. Wallerstein characterized the March 5, 2010 Board Agenda as a full agenda in terms of containing significant issues which would engender public interest and testimony, and that the meeting would take place in Long Beach. Dr. Wallerstein brought the Committee’s attention to the items on the newly proposed federal ozone standards, the Port Clean Air Action Plan backstop rules, the RECLAIM audit report, and the amnesty rule which Dr. Tisopulos previously mentioned. Finally, Dr. Wallerstein reminded the Committee of the February 19th Special Board Meeting to consider expanding the port truck program.
In closing, Supervisor Gonzales, in reference to the revised ozone standards issue, inquired whether there were statistics available or which could be researched which would provide examples such as the quantity of goods deliverable by clean rail, the quantity of air cleaned up, and how it influences the lay person because with a given number of trucks off the freeway the commute times could be reduced by a specified amount or the parents could get the kids to soccer practice a specified amount of time faster. Supervisor Gonzales commented that to get support for clean air strategies from the average taxpayer, emphasis is needed on the personal benefit for them, suggesting that clean air is an “out of sight, out of mind” concept during times of improvement, and the public can get complacent. Dr. Wallerstein responded with a reference to the draft “Combustion Out” publication, which staff is preparing to bring to the Board and potentially release at the March Board Meeting.
22. Other Business: None.
23. Public Comment: None.
Meeting adjourned at 11:00 a.m.
Attachments (EXE, 146k)
Minutes from the December 11, 2009, Local Government & Small Business Assistance Advisory Group meeting
Local Government & Small Business Assistance Advisory Group Draft 2009 Accomplishments
Local Government & Small Business Assistance Advisory Group Draft 2010 Goals & Objectives
Environmental Justice Advisory Group Draft 2009 Accomplishments
Environmental Justice Advisory Group Draft 2010 Goals & Objectives