The Administrative Committee met Friday, May 22, 1998, and reviewed the proposed agenda for the June 12, 1998 Board meeting. The Committee also discussed various issues detailed in the Committee report. The next Administrative Committee meeting is Friday, June 19, 1998, at 9:30 a.m., in Conference Room CC8.
RECOMMENDED ACTION:
Receive and file this report.
Norma J. Glover, Chairman
Administrative Committee
Attendance: Present were Norma Glover, Committee Members James Silva, Richard Alarcón, Mee H. Lee, Wayne Nastri, Nell Soto, and Roy Wilson (attending via teleconference from Larson Justice Center, 46200 Oasis Street, Suite 318 - Conference Room, Indio, CA 92201, a facility which is available to the public and at which location a copy of the agenda had previously been posted, in accordance with the Brown Act). Board Members Leonard Paulitz and Jon Mikels, who both arrived at approximately 10:50 a.m., were also present, not voting.
DISCUSSION ITEMS:
Chairman’s Report of Approved Travel: Recommendation was duly moved, seconded, and unanimously approved. (See end of report for detail.)
Approval of Compensation for Board Member Assistant(s). The Committee considered and recommended approval of the proposed compensation and contracts for Mayor Ronald Loveridge’s Board Consultant Ruthanne Taylor Berger and Supervisor Roy Wilson’s Board Assistant Carolyn Syms Luna, in accordance with the guidelines set forth in the Board Member assistance policy. Ms. Berger’s compensation was confirmed at $45 per hour as a Board Member Consultant (employee status) and Ms. Luna’s compensation was confirmed at $28.84 per hour as a Board Member Consultant (employee status). Moved (Silva), seconded (Lee) and unanimously recommended for approval.
Mr. Silva announced he would not further participate since seven Committee members were present. (Pursuant to the Brown Act and the Procedures for Standing Committees of the Governing Board, since this Committee meeting was not noticed as a special meeting of the Governing Board, only six Committee members may participate in the Committee meeting.)
Out-of-Country Travel: None
Establish Debit Account for Payment of Permit Application Fees; Allow Payment of Application Fees by Credit Card; and Accept Permit Applications Accompanied by at Least 50% of the Application Fees and Grant Reasonable Period of Time for Payment of Remainder: Acting Executive Officer Dr. Barry Wallerstein presented the Committee with three preliminary recommendations from the newly formed Permit Streamlining Task Force (PSTF). Director of Finance Rick Pearce distributed a handout which included a chart illustrating the percentage of permit applications that had been accepted between January 5 to May 8, 1998 (92%), and the percentages of those that had been rejected during that time period and the reasons for rejections. Mr. Pearce reported that staff has reviewed the PSTF recommendations and respectfully proposes amended recommendations. First, staff recommends that debit accounts be replaced with an Electronic Data Interchange (EDI) capability, which allows AQMD to electronically transfer money from customers’ bank accounts. Second, staff recommends that acceptance of credit cards for payment of permit fees be initiated including a convenience fee charge. Mr. Pearce advised that the fee charged by credit card companies for use of the credit card would be offset by this convenience fee. Mr. Pearce indicated that it was his understanding that VISA does not allow merchants to recover credit card fees, while Mastercard and Discover do. Last, staff recommends establishing minimum payment levels (suggested at 85%-90%) before proceeding with application processing. Presently, permit processing does not begin until the full fee is received. This proposed change would allow staff to begin processing permits while awaiting correct fees and thereby save permit processing time.
Referring to the 92% of those permit applications that had been accepted, Councilmember Alarcón expressed concern that those applicants may choose to take advantage of the minimum payment level policy thereby reducing the percentage of accepted applications. Mr. Pearce replied that was the reason staff is recommending increasing the minimum payment level of 50%, as recommended by the PSTF, to 85%-90%. Mee Lee suggested that rather than adopt the minimum payment level as an agency policy, we have the discretion to apply it administratively rather than delay processing the permit. Ms. Lee suggested trying that for 6 months to a year. Moved (Lee), seconded (Soto).
Public Comment: Curtis Coleman of the California Manufacturers Association Air Quality Alliance and the California Aerospace Environmental Association commented on the context of the concept as it was discussed at the PSTF meeting.
Chairman Glover made a substitute motion to adopt the first and second items presented by Mr. Pearce and take the third item back to the PSTF for further review. Ms. Lee suggested the PSTF also consider the larger minimum payment level of 85-90% and amended the motion accordingly. The motion passed with no opposition.
JUNE AGENDA ITEMS:
Execute Contract to Purchase Document Management System Replacement: Moved (Lee), seconded (Soto) and unanimously recommended for approval.
Review Options Regarding Use of Proceeds from Sale of the El Monte Property: Mr. Pearce presented the Committee with three options for utilizing the proceeds from the sale of the El Monte property. Option A: apply approximately $6.3 million of the $7 million proceeds from sale of the El Monte facility to redeem the bonds which provided funding to building the Diamond Bar facility, with the remainder applied to the general fund. Option B: apply the full proceeds to the general fund. Option C: a combination of A and B, with bond redemption in amounts of $5,000 or any multiple thereof. Because the bonds are tax-exempt, the District is limited as to the percentage of square footage it can lease to non-public agency tenants. Presently the District can lease approximately 10,000 square feet. Redeeming $6.3 million in bonds would increase that allocation to approximately 20,000 square feet. Option A was moved (Glover), seconded (Wilson) and unanimously recommended for approval.
Remove Various Fixed Assets from AQMD Inventory: Mr. Pearce advised the Committee that the two-year Districtwide inventory had now been concluded and that there were seven missing or stolen assets, six of which are portable computers. Commenting on the number of stolen fixed asset items, Committee members expressed concern regarding the District’s security system. Mr. Pearce and Director of Administrative and Human Resources Services Joe Contaoi described the increased security measures that have been implemented including the inspection of briefcases and tote bags as people enter and leave the building, installation of additional security cameras, and the electronic system surrounding the building. Moved (Lee), seconded (Nastri) and unanimously recommended for approval.
Report on the Performance Audit of the AQMD for the FY Ending June 1997: Mr. Pearce reported that the completed performance audit will not be available until next week and will be part of the Board package. Advance copies will be sent to the Governing Board to provide them with an opportunity to review the findings. The five areas examined by the auditors were:
1. District’s action in response to the prior audit of three years ago;
2. Key processes of the District: rulemaking, permitting, inspections and
customer satisfaction;
3. Other management issues including organizational structure, use of facility, use of AB 2766 motor vehicle registration funds, contract procedures, information technology, and performance measurements;
4. Compliance with laws and regulations; and
5. District achievement.
Mr. Pearce briefly summarized the auditor’s findings and explained that at the June 12, 1998 Board meeting the auditors will provide the Governing Board with a presentation regarding their findings. At the Board meeting in July, staff will present action items resulting from the audit’s findings.
Since the final report was not available, Dr. Wallerstein recommended that the motion state that the motion be changed from "Recommend approval" to "Received briefing." Item was so moved (Nastri), and seconded (Lee).
Upon the departure of Ms. Soto at 10:29 a.m., Mr. Silva participated in the remainder of the meeting.
ARB’s Subvention Program Audit of AQMD for FY 1996-97: Mr. Pearce reported that the ARB audit disclosed that the District administered the Subvention Program properly. Moved (Lee), seconded (Silva) and unanimously recommended for approval.
Execute Contract for Study of AQMD’s Fee Structure and Authority: Mr. Pearce informed the Committee that the firm of Thompson, Cobb, Bazilio & Associates had been selected. Dr. Wallerstein pointed out that this firm is the same firm that just completed the performance audit. However, the five-member evaluation panel had a majority (3) who are not affiliated with the District. They were Greg Adams (Los Angeles County Sanitation District), Lee Wallace ( Pacific Enterprises), and Harold Martinez (small businessman and a member of the Ethnic Community Advisory Council). The two other panel members were an AQMD Financial Analyst and a Sr. Manager from SSC. Chairman Glover recommended that the contract include language stating that the contractor interface with the permitting consultant firm. Moved (Lee), seconded (Glover) and unanimously recommended for approval.
Public Comment: As a member of the evaluating panel, Mr. Lee Wallace spoke in support of the recommendation.
(Councilman Alarcón departed at 10:35 a.m.)
Regulation III – Fees, Small Business Definition: Assistant Deputy Executive Officer/Stationary Source Compliance Carol Coy distributed a handout regarding Regulation III-Fees Small Business definition and proposed amendments to Rule 301 relating to assessing a higher fee for a permit to operate without first obtaining a permit to construct. Ms. Coy briefed the Committee on the results of a survey of other government and air agencies, including Bay Area AQMD, regarding their small business definitions. Three options for proposed amendments specific to the Rule 301 Small Business definition that would provide expanded relief from paying the higher processing fee were discussed:
1. Maintain current Small Business Definition: 10 employees or less and under and $500,000 gross annual receipts;
2. Change definition to: 25 employees or less and under $500,000 gross annual receipts; or
3. Change definition to: 25 employees or less and under $1,000,000 gross annual receipts.
Regarding the third option Ms. Lee suggested that the definition include the language used by the Bay Area Air Quality Management District: "If it is a manufacturer, does not employ more than 50 persons nor have annual receipts exceeding $1 million." The third option including the language referenced by Ms. Lee was moved (Glover), seconded (Nastri) and unanimously recommended for approval.
Establish List of Prequalified Vendors to Provide Supplemental Source Testing Services: Moved (Lee), seconded (Nastri) and unanimously recommended for approval.
Issue RFQs to Prequalify Vendors to Provide Legal Notice Publishing and Advertising Services, Mailing Services, and Miscellaneous Office and Consumable Computer Supplies: Moved (Lee), seconded (Nastri) and unanimously recommended for approval.
Issue RFP to Provide Technical Assistance to Local Jurisdictions in Support of AB 2766 Subvention Fund: Moved (Lee), seconded (Glover) and unanimously recommended for approval.
Review June 12, 1998 Governing Board Agenda: Dr. Wallerstein mentioned the item from Chairman of the Board William Burke requesting the Board consider changing the Board meeting starting time to one hour earlier, 8:30 a.m.
Public Comment: John Billheimer, representing the Small Business Coalition, referred the Committee to Item No. 1540, Best Available Control Technology (BACT) Guidelines Update, and suggested the Board consider a resolution that when an action of the District impacts industry by more than $100 million, that item be placed on the agenda as a normal Public Hearing.
Dr. Wallerstein responded that the BACT item would normally appear on the Board’s Consent Calendar, but given the high level of interest and controversy regarding the subject matter, staff moved it to the Board Calendar. It was not put under Public Hearings on this agenda to eliminate confusion regarding noticing requirements. Mr. Nastri commented that the BACT issues are extremely contentious and suggested placing the item under Public Hearings to alleviate some of the criticism. Following further discussion regarding placement of the item on the agenda, Mr. Nastri moved that Item #1540 be placed on the agenda under the Public Hearing heading and the motion was seconded (Silva) and unanimously recommended.
Chairman Glover moved to add to the Administrative Committee agenda Item #1546: Issue RFP for Consulting Services to Evaluate the Current Permit System and Recommend Solutions for a More Streamlined and Efficient Process for Issuing Permits. Ms. Glover indicated there was an immediate need to take action and the need for action came to the attention of the AC subsequent to the posting of the agenda. The motion was seconded (Nastri) and passed by a unanimous vote of the Committee Members present; therefore, the Committee considered the item.
Permit Streamlining Ombudsman Mohsen Nazemi explained that the RFP is to select a qualified contractor to review various ways to improve and streamline our permit program. Mr. Nazemi provided the Committee with a summary of preliminary tasks to be performed by the contractor, including the criteria to be used, and the preliminary draft time and cost schedule. The estimated project cost is $150,000 to $200,000. Moved (Lee), seconded (Nastri) and unanimously recommended for approval.
Other Business: None
Public Comment: None, other than referenced above.
Chairman Glover adjourned the meeting at 11:06 a.m.
Report on Board Member Travel Authorized by the Chairman (April 17 – May 22, 1998):
DATE
TRAVELER
DESTINATION
PURPOSE
May 5, 1998
William Burke
Sacramento, CA
AB 1368 and SB 1857
May 12-13, 1998
Norma Glover & Wayne Nastri
Sacramento, CA
AB 2194 - Clean Fuels Reauthorization
May 13, 1998
Nell Soto
Sacramento, CA
AB 2194 - Clean Fuels Reauthorization
May 18-19, 1998
Wayne Nastri
Sacramento, CA
CalETC and California Electric Vehicle Education Day
May 21-22, 1998
James Silva
Sacramento, CA
CARB Meeting
June 16–18, 1998
Wayne Nastri & Leonard Paulitz
San Diego, CA
Air & Waste Management Association Annual Meeting (Pending Chairman Burke’s approval)
