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PROPOSAL:

Execute Contract for Study of AQMD Fee Structure and Authority

SYNOPSIS:

Regulation III – Fees sets forth the fees by which the AQMD funds its activities. In March 1998 an RFP was issued to select a contractor to perform a study to revise or replace the current fee structure with one that is simple, equitable and sufficient to fund AQMD’s stationary source-related activities. An evaluation panel made up of business and AQMD representatives has reviewed the proposals received and recommends the firm of Thompson, Cobb, Bazilio & Associates for Board approval. The $222,800 cost for this project is not included in the budget and will require an appropriation from the General Fund.

COMMITTEE:

Administrative May 22, 1998, Recommended for Approval

RECOMMENDED ACTION:

1. Appropriate $222,800 from the Undesignated Fund Balance to the Services and Supplies Major Object, Professional and Special Services Account in Finance.

2. Authorize the Chairman to execute a contract with Thompson, Cobb, Bazilio & Associates for consultant services for an amount not to exceed $222,800.

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

Background

Changes in the regulatory environment such as the adoption of Health and Safety Code Sections 40510.5 and 40523 capping AQMD's revenue and the implementation of the Federal Title V program have impacted the AQMD’s programs and administrative responsibilities. In 1995 AQMD conducted a Fee Assessment Study to evaluate the existing fee structure and review long-term funding options. Since completion of the 1995 study, the AQMD has taken several steps to streamline its operations and reduce costs. These changes, however, have not brought expenditures in balance with revenues. There is an urgent need to update the 1995 study to gather information that can be used to develop a fee structure that is simple, equitable, and sufficient to fund AQMD’s stationary source-related activities.

Proposal

On March 13, 1998, the Board approved an RFP to conduct an independent analysis of AQMD's fee structure and authority. At the conclusion of the study, the consultant shall propose a methodology (model) to revise, replace or redesign the current fee structure with one that is simple, equitable, and sufficient to fund AQMD’s stationary source-related activities. The AQMD has organized a fee advisory task force representing sectors including business, community groups, and government to provide input into the process.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids was published in the following publications:

1.	Antelope Valley Press	10.	La Opinion	19.	Precinct Reporter
2.	Black Voice News	11.	La Voz	20.	Rafu Shimpo
3.	Chinese Daily News	12.	Los Angeles Daily News	21.	Riverside Press Enterprise
4.	Eastern Group Publications	13.	Los Angeles Sentinel	22.	San Bernardino Sun
5.	El Chicano	14.	Los Angeles Times	23.	Santa Clarita Signal
6.	Excelsior, The	15.	M/W/DVBE Source	24.	State of California Contracts
7.	Inland Empire Hispanic News	16.	Orange County Register		Register
8.	Inland Valley Daily Bulletin	17.	Palm Springs Desert Sun
9.	Korea Central Daily	18.	Philippine News

Additionally, potential bidders were identified using the Los Angeles County MTA Directory of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Copies of the RFP were mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s 24-hour telephone message line for bidders (909) 396-2724.

Bid Evaluation

RFPs were mailed to approximately 108 auditing and management consulting firms. Two proposals were received by the April 28, 1998 due date; they were:

• Strabala Ramirez & Associates

• Thompson Cobb, Bazilio & Associates

The proposals were reviewed and evaluated by a panel comprised of a representative from the Los Angeles County Sanitation District’s Office of Engineering, a representative from the Southern California Gas Company, a representative from small business, and an AQMD Senior Enforcement Manager and an AQMD Financial Analyst. The panel consisted of four males and one female: one Asian-Pacific Islander, one Hispanic, and three White.

The panel reviewed the proposals and evaluated them on the bidder's ability to perform the services specified in the RFP based on a two-step process. Proposals were first evaluated using technical criteria, which included technical expertise of the firm, experience of the proposed team on projects with government agencies, technical approach, and previous experience. Step 2 of the evaluation process required an evaluation of the technically qualified proposals using "cost and other factors" which included cost, and DVBE designation. The selected firm has had extensive experience in providing consulting services to public agencies

Of the two proposals submitted, one proposal was deemed not technically qualified (i.e. scored below 70 points) based on the technical criteria specified in the RFP. The remaining firm of Thompson, Cobb, Bazilio & Associates presented a highly qualified, diverse team with extensive background in cost analysis and working with government agencies and experience in conducting fee-related studies.

Resource Impacts

The total cost for this study is $222,800. Funding for study has not been included in FY 1997-98 Budget. This action is to appropriate $222,800 from the Undesignated Fund Balance to the Finance Division Services and Supplies Major Object, Professional and Special Services Account.

This constitutes a supplement to the FY 1997-98 Budget. Therefore, the required 30-day public notice of a proposed supplement to the FY 1997-98 Budget was published in the Los Angeles Daily Journal, San Bernardino Sun Telegram, Riverside Press Enterprise, Santa Ana Register, and Inland Valley Daily Bulletin.

Attachments

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