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PROPOSAL:

Execute Sole-Source Contract with Los Angeles County Agricultural Commission Department of Weights and Measures for Gasoline Vapor Recovery Inspections

SYNOPSIS:

This action is to award the sum of $61,820 this fiscal year to the Los Angeles County Agricultural Commission Department of Weights and Measures inspectors to conduct vapor recovery inspections at retail gasoline dispensing facilities within the Los Angeles County portion of the AQMD. This action will also authorize up to the same amount to be awarded in FY 1998-99 and FY 1999-00 if included in the AQMD Annual Budgets for these fiscal years and if the work is approved by the Executive Officer.

COMMITTEE:

Administrative, December 19, 1997, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with the Los Angeles County Agricultural Commission for Gasoline Vapor Recovery System Inspections at a cost of $61,820 in FY 1997-98 and $61,820 each in FY 1998-99 and FY 1999-00, provided funding is authorized in the AQMD Annual Budgets and the Executive Officer approves the work for those years.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Background

Los Angeles County Weights and Measures inspectors periodically inspect retail gasoline dispensing facilities to ensure compliance with their regulatory requirements. For the last three years, the AQMD has contracted with the agency to conduct screening inspections of gasoline vapor recovery equipment concurrently with their routine inspections. The results of the screening inspections are reported to the AQMD and AQMD inspectors take follow-up enforcement action where appropriate.

This inspection process has been beneficial to the AQMD, Los Angeles County, and the facility operators. The AQMD benefits from the relatively low-cost screening, allowing our resources to focus on the identified noncompliant facilities. The County benefits from the funding support to their program and compliant station operators benefit by less frequent inspections by government agencies. The Weights and Measures inspectors are trained enforcement officers and have been trained on AQMD requirements by AQMD staff. As such, these inspectors would be acceptable as an expert witness if necessary, and are unlikely to be challenged on their authority to inspect. These benefits would be foregone with a private contractor. This sole-source contract is unique in that the contractor is another government agency and the manner in which the work is performed could not be duplicated by another contractor.

AQMD inspectors conducted a compliance audit of 400 retail gasoline dispensing facilities in the spring and early summer of 1997. Thirty-seven percent of the stations inspected had visual equipment defects that substantially impair the effectiveness of the vapor recovery system and ninety percent of the stations inspected were not in compliance with all rule requirements. As a result, staff has developed and begun implementation of a work plan to address the non-compliance issues. The Weights and Measures inspection program is one of the key components that is necessary to complement the efforts of AQMD staff. Their use as a screening tool is critical to efficient allocation of staff resources.

Staff believes the $44 per station cost of the Weights and Measures inspections are currently less than the total cost to hire additional AQMD inspectors. The results of their inspections indicate roughly sixty percent of the stations they inspect require follow-up by AQMD inspectors. During this fiscal year, staff will evaluate the Weights and Measures inspection program to determine its effectiveness in the overall compliance strategy. Recommendations will be made to improve and/or expand the program, where appropriate.

Each of the Weights and Measures contracts has been from fiscal year to fiscal year, requiring a new contract to be executed each year. It is in the interest of both the AQMD and the County to allow a continuous flow of work as long as funding is authorized and the performance is satisfactory. It is recommended that the term of this contract include the remainder of this fiscal year and the next two fiscal years. Work would be authorized in each of the next two fiscal years only if funding was approved in each of the annual budgets and the Executive Officer determines the performance of the contract is satisfactory.

Proposal

Los Angeles County Weights and Measures Department inspectors will inspect Phase I and II gasoline vapor recovery equipment visually for obvious defects while conducting their routine inspections. The AQMD will designate the elements of the inspections and the retail gasoline dispensing facilities to be inspected. Weights and Measures inspectors will complete a report of each inspection and their findings in a format designated by the AQMD. A copy of the report will be provided to the station operator at the time of the inspection and the AQMD. Weights and Measures inspectors will not issue Notices to Comply and Notices of Violation, but will refer matters of observed noncompliance to the AQMD for follow-up enforcement action.

Los Angeles County Agricultural Commission will receive $44 for each reported inspection. The total number of designated retail gasoline dispensing facilities to be inspected will not exceed 1,405, making the total available compensation under this contract $61,820.

Resource Impacts

Total cost is $61,820 per year in FY 1997-98, FY 1998-99, and FY 1999-00, for a total cost of $185,460. A total of $70,000 is authorized for Weights and Measures Department vapor recovery inspections in the FY 1997-98 AQMD Budget and $75,000 is planned for the FY 1998-99 and FY 1999-00 Budgets.

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