Back

REPORT:

Administrative Committee

SYNOPSIS:

The Administrative Committee met Friday, April 17, 1998, and reviewed the proposed agenda for the May 8, 1998 Board meeting. The Committee also discussed various issues detailed in the Committee report. The next Administrative Committee meeting is Friday, May 22, 1998, at 9:30 a.m., in Conference Room CC8.

RECOMMENDED ACTION:

Approve this report.

Norma J. Glover, Chairman
Administrative Committee

Attendance:
Present were Norma Glover, Committee Members Wayne Nastri, Nell Soto (who arrived at 12:22 p.m.), 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). Absent were Vice Chairman James Silva, Richard Alarcón and Mee Hae Lee.

DISCUSSION ITEMS:

1. Local Government & Small Business Assistance (LG&SBA) Advisory Group Report: Lupe Valdez, Deputy Executive Officer of Public Affairs and Local Government Assistance, reported that the LG&SBA Advisory Group met on Friday, April 3, 1998, when they received a briefing on Title II and Title V, and heard presentations on several critical issues including Rule 1401.

2. Chairman’s Report of Approved Travel: In addition to the approved travel in the written report, Acting Executive Officer Dr. Barry Wallerstein advised that Chairman Burke had previously approved travel to Sacramento to support AB2194, Clean Fuels Requthorization, for Board members Soto and Nastri on April 13. Their trips had been rescheduled to Monday, April 20, 1998. Moved (Nastri), seconded (Glover) and unanimously recommended for approval. (See end of report for detail.)

3. Approval of Compensation for Board Member Assistant(s): None

4. Out-of-Country Travel: Dr. Wallerstein informed the Committee that Director of Planning & Policy Dr. Elaine Chang had been invited by the Taiwan Environmental Protection Agency to visit their country to assist with their air quality program. Since Dr. Chang plans to use her vacation time and the Taiwan agency will cover all other expenses, the trip will be at no expense to the District. Moved (Nastri), seconded (Wilson) and unanimously recommended for approval.

5. Appoint Alternates to Local Government & Small Business Assistance Advisory Group: The Committee was provided with a handout from Ms. Valdez regarding nominations for alternates to serve on the LG&SBA Advisory Group. Ms. Valdez explained that five members have elected to serve without designating alternates, and five members have nominated alternates and recommended that the Committee approve the appointment of these individuals: Ameal Moore (Alternate for Michael Barry), Gene Beck (Alternate for Ed Laird), Detrich Allen (Alternate for Lillian Kawasaki), Jan DeBay (Alternate for Charlene Hatakeyama,) and Lori Lee (Alternate for Terry Lacko). Moved (Glover), seconded (Nastri) and unanimously recommended for approval. Ms. Glover requested that Dr. Wallerstein remind all Advisory Group liaisons that, if their Group’s member(s) wish to name an alternate, the proposed alternate’s name must be brought to the appropriate Board Committee for approval.

MAY AGENDA ITEMS:

6. Appointments to AQMD Hearing Board: Clerk of the Boards Jackie Dix explained that the replacement Board letter distributed by staff included the names of those individuals recommended to serve on the AQMD Hearing Board. The names had not previously been available since interviews of the candidates, the selection and notification process were not fully completed until the previous day, April 16. The recommended appointments/reappointments are: Joseph D. Auerbach, Medical Member (Alternate: Robert Zweig); Marcus Lewis, Public Member (Alternate: Sharon H. Morris); and Marti Klein, Public Member (Alternate: Barry Read). Moved (Wilson), seconded (Nastri) and unanimously recommended for approval.

7. Issue RFP to Evaluate and Finalize Air Toxics "Hot Spots" Information and Assessment Act Health Risk Assessments: Staff is recommending the Committee’s approval to issue an RFP to privatize the work to complete the Health Risk Assessments (HRAs) required for the Air Toxics "Hot Spots" Program. Jack Broadbent, Assistant Deputy Executive Officer/Stationary Source Compliance, reported there are approximately 160 outstanding HRAs, and a contractor, or several contractors, will expedite the review and finalization of the remaining HRAs. It is anticipated that the process will take approximately 12-18 months to complete; without the assistance of a contractor, it will take staff about three years.
   
   Mr. Broadbent explained that essentially the "Hot Spots" Program requires that larger facilities prepare HRAs. When the State Legislature originally adopted the Program in the late 1980s, the ARB estimated, based on preliminary information, that statewide 60 HRAs would need to be prepared. Since then, however, staff has identified at least 300 facilities that are required to prepare an HRA, just in the South Coast District. By expediting the completion of the Program through the use of contractors, the expected impact on businesses will be a reduction in their fees.
   
   Mr. Nastri expressed concern regarding quality assurance/quality control (QA/QC) relative to the privatization effort. Mr. Broadbent replied staff envisions the contractors will be reviewing the HRAs with the affected companies, and ultimately staff will conduct the QA/QC with its final review and sign-off to ensure consistency. Mr. Nastri suggested implementing a QA/QC program specifically for the contractors, which might alleviate some of staff’s responsibilities. By hiring a contractor or several contractors to complete this Program, there would be an estimated savings in staff time of five to six full-time employees. The RFP requires the contractors bid on each of three levels of complexity, and there is a provision in the contract relative to exceeding the fixed price based on the complexity of the HRA.
   
   Public Comment: Curtis Coleman addressed the Committee supporting this effort on behalf of the California Manufacturers Alliance Air Quality Association and the California Aerospace Environmental Association. Mr. Coleman added that many companies are being kept in the Program waiting for the HRAs to be finalized. Once their HRAs are completed, a great many companies will be able to drop out of Program and will no longer be required to pay the fees.
   Moved (Nastri), seconded (Wilson) and unanimously recommended for approval.

8. Execute Contract to Purchase High-Speed Remote Access Upgrade: Moved (Soto), seconded (Nastri) and unanimously recommended for approval.
   
   Director of Information Management Dr. Vinita Mathur reported that next month staff will be bringing to the Board a request to surplus outdated computer equipment, and Ms. Soto requested consideration be made to donating computers to area schools in need of such equipment.

9. Issue Request for Qualifications to Establish List of Prequalified Providers of Blended Mixed Gases: Moved (Wilson), seconded (Nastri) and unanimously recommended for approval.

10. Issue RFQ to Purchase Compressed Pure Gases and Cryogenic Liquids: Moved (Nastri), seconded (Glover) and unanimously recommended for approval.

11. Reallocate Funds and Purchase of Laboratory Equipment Upgrades: Mel Zeldin, Director of Applied Science & Technology, reported that the life cycle of the upgraded laboratory equipment is virtually the same compared to new equipment. Moved (Nastri), seconded (Glover) and unanimously recommended for approval.

12. Recognize and Appropriate Funds from Los Angeles District Attorney’s Office for Purchase of High-Resolution Video Camera System for Laboratory’s Polarized Light Microscope: Mr. Zeldin explained that the polarized light microscope is used primarily for asbestos fiber analysis. In order to provide a clearer resolution for legal matters, the District Attorney’s office is providing the funds for this purchase. Moved (Nastri), seconded (Wilson) and unanimously recommended for approval.

13. Amend Regulation III - Fees: Assistant Deputy Executive Officer of Stationary Source Compliance Carol Coy distributed a summary of proposed Regulation III fee amendments which included a list of options The items will be reviewed in depth at the Governing Board Budget Workshop scheduled for April 23, 1998. Dr. Wallerstein reported that the item regarding fuel storage and dispensing operations at retail gasoline dispensing facilities had been reviewed, at the Finance Committee, with industry representatives who were open to working with the District to come up with a viable option.
    
    Ms. Coy addressed the item regarding an increase of the fee from 15% to 50% for installing and/or operating permittable equipment without first acquiring a Permit to Construct (PC) or Permit to Operate (PO). It would be a one-time fee and the small business discount would apply. The 15% fee has been an inadequate deterrent since there has been a trend to skip this stage, and the increase is necessary for leveling the playing field for complying businesses.
    
    Public Comments:
    Gene Beck, representing the Small Business Coalition, asked if it is assumed that the majority of the increased penalties would be applied to new businesses coming into the District as opposed to existing permit holders. Ms. Coy responded that mainly existing businesses would be effected.
    
    Mr. Coleman said the issue is closely related to the permit backlog and that businesses are forced to operate and construct without the required PC/PO since the District cannot get permits out in a timely manner. He recommended a combination of reducing the permit backlog, speeding up the permit process, and setting the penalty at an appropriate level.
    
    Dr. Wallerstein reported on expected permit streamlining activities noting that Chairman Burke has created a Permit Streamlining Task Force, comprised of Board members Glover, Loveridge and Silva and members from the public, to make recommendations on possible enhancements to our permitting systems and procedures. In addition, Dr. Wallerstein will appoint a Permit Streamlining Ombudsman to manage staff's efforts relative to permit streamlining activities and key engineers will be assigned to this team. Finally, an RFP will be recommended for the Board’s consideration in June for an outside contractor to assist with the backlog.
    
    John Billheimer, representing the Small Business Coalition, distributed a handout to the Committee that addressed the concerns of the small business community regarding the proposed fee amendments, and reiterated Mr. Coleman’s comments with regard to delayed permits which force businesses to operate illegally in order to continue operation.
    
    Dr. Wallerstein informed the Committee that one of the streamlining activities being considered is to move certain permitted equipment out of the permitting system into a registration mode.
    
    Public Advisor La Ronda Bowen reported that staff has made an outreach effort by contacting small business owners inviting them to provide input at the next Public Workshop on the draft Budget.
    
    Mr. Nastri commented that a greater deterrent is needed for those companies that might profit substantially by operating without a PC/PO. District Counsel Peter Greenwald explained that it is the District’s policy to discourage economic benefit when a penalty is determined or a Notice of Violation is issued, and then an additional amount is capped onto that to ensure it is a sufficient deterrent against future violations.
    

14. Executive Officer’s FY 1998-99 AQMD Budget and Work Program: Rick Pearce, Director of Finance, briefly summarized significant points regarding the budget proposal which includes:
    • Approximately $1.8 million less than the budget adopted last year and approximately $5.9 million less than the current budget that has been amended throughout the year;
    • Revenues of $1.6 million less than the current budget;
    • Maintaining current staffing levels at 741 full-time employees;
    • Increasing the salaries for represented employees (in compliance with the Memoranda of Understanding), confidential and management employees by 2%;
    • An additional 2% increase in January 1999 for management employees only (over the two-year period of FYs 1993-94 and 1994-95 all employees but management received a 6% increase);
    • A reduction in retirement rates of about 2%, a savings to the District which will offset a significant portion of the salary increases for next year;
    • Interest savings of approximately $320,000 by using proceeds from the sale of the El Monte building to retire a portion of the debt on Diamond Bar headquarters building;
    • Revenue generated from a 2.2% increase in California Consumer Price Index (CPI) allowed by state law;
    • $1.6 million revenue based on fee amendments; and
    • A fund balance projected at $33 million of which $5 million is undesignated.

15. Review May 8, 1998 Governing Board Agenda: No changes.

16. Other Business: None

17. Public Comment: None, other than referenced above.

Chairman Glover adjourned the meeting at 1:02 p.m.

Report on Board Member Travel Authorized by the
Chairman (March 20 – April 17, 1998):

/ / /