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PROPOSAL:

Amend Contract with Ecotek for Privatization of Portions of the Annual Emissions Report Program

SYNOPSIS:

In January 1998, the Board awarded a contract to Ecotek for continuation of privatization of portions of the Annual Emissions Report (AER) Program. For the past three years, Ecotek has developed, maintained, and updated the emissions reporting software; produced and distributed reporting materials (forms and instructions); provided public outreach and assistance; collected and compiled reported data; and conducted limited data quality control. Based on Ecotek’s responsiveness and satisfactory performance, staff recommends exercising the second-year option to renew and, based upon changed requirements, to renegotiate funding for an amount not to exceed $275,000, bringing the contract total to $525,000. Funding for this contract amendment is allocated in the FY 1998-99 Budget.

COMMITTEE:

Administrative, February 19, 1999, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Executive Officer to execute a contract with Ecotek, Inc. in an amount not to exceed $275,000 to exercise the second-year renewal option for privatization of portions of the Annual Emissions Report Program.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

For the past three years, AQMD has privatized portions of the Annual Emissions Report (AER) Program. Under this Program, facilities annually report their emissions and pay emission-based fees in accordance with Rule 301(e) requirements. Privatization of the AER Program has significantly enhanced the overall program efficiency, improved services to facilities as well as data quality and enabled AQMD staff to more effectively conduct engineering audit of the annual emission reports and provide support for other AQMD programs. Ecotek has been AQMD’s contractor responsible for implementing portions of the AER Program for the last three reporting cycles including: 1) revision of emission and fee reporting forms and instructions, 2) providing software and paper forms reporting options, 3) preparing and distributing emissions reporting packages to facilities subject to the program, 4) providing public outreach and assistance in filing the annual emission reports, 5) receiving the reports and compilation of emissions and fee data files, 6) generating image files (for paper submittals), 7) conducting data quality control, and 8) transferring data files to the District for inclusion in the District’s central database. Actual collection of annual emission fees and billing adjustments continues to be handled by AQMD staff.

During the last three years, Ecotek has successfully performed all the required tasks specified in the contract. Ecotek has also created software and data base systems (i.e., data-entry software for entering, managing, and checking reported data as well as export utilities to generate databases for AQMD) to support the software reporting system. The software reporting option has become very popular and has been utilized by more than 60% of all reporting facilities. The reporting software has also greatly reduced reporting errors and improved data quality. In addition, every year, Ecotek has suggested several improvements to the program and has incorporated lessons learned from the previous year. Ecotek has also provided excellent customer service for the reporting facilities and has developed a very good working relationship with AQMD staff.

Proposal

Under the current contract, AQMD can exercise the right to renew the contract with Ecotek for two additional one-year terms and can also renegotiate the contract amount based on changed requirements and/or approved funds. Based on Ecotek’s experience, responsiveness to program needs, and consistent and satisfactory performance, staff recommends to renew the contract with Ecotek for implementation of portions of the 1998-99 AER Program for a total amount not to exceed $275,000, which represents an increase of $25,000 in funding. Additional funding is recommended to offset the increased cost of software maintenance, updates, and support necessary to accommodate AQMD’s required program revisions (forms and instructions). The proposed increase is the first increase in four years for the contractor.

Resource Impacts

An amount of $250,000 has been budgeted for privatization of portions of the AER Program in the Planning and Policy FY 1998-99 Budget. Additional funding of $25,000 is being transferred from the unexpended portion of Planning and Policy’s Professional and Special Services account, to provide total funding of $275,000.

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