South Coast Air Quality Management District

Back

Issue RFP to Audit AB 2766 Fee Revenue Recipients for FYs 1997-98 and 1998-99

SYNOPSIS: 

AB 2766 requires any agency that receives fee revenues subvened to AQMD from the Department of Motor Vehicles to be audited once every two years. This action is to issue an RFP for an independent Certified Public Accountant to conduct the audits.

COMMITTEE: 

Administrative, June 9, 2000, Recommended for Approval

RECOMMENDED ACTION:

Approve the release of RFP #P2001-02 to audit AB 2766 Fee Revenue Recipients for FYs 1997-98 and 1998-99.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

AB 2766 was chaptered into law as Health and Safety Code Sections 44220-44247 which were enacted to authorize air pollution control districts to impose fees on motor vehicles. These fees are to be expended specifically for the purpose of mobile source air pollution reduction measures pursuant to the California Clean Air Act of 1988 or the AQMD's AQMP pursuant to Article 5 of Chapter 5.5 of Part 3 of the Health and Safety Code.

The fee revenue is collected by the Department of Motor Vehicles and subvened to the AQMD. It is distributed as follows:

1. Forty cents of every dollar (40%) is placed in the Air Quality Improvement Special Revenue Fund for quarterly disbursement to local governments;
   
   
2. Thirty cents of every dollar (30%) is placed in the Mobile Source Air Pollution Reduction Special Revenue Fund for projects awarded by the Mobile Source Air Pollution Reduction Review Committee (MSRC) and approved by the AQMD's Board; and
   
   
3. Thirty cents of every dollar (30%) goes to support AQMD-approved programs for the reduction of emissions from mobile sources.

AB 2766 audit requirements [ Health and Safety Code, Section 44244.1(a)] state that any agency receiving fee revenues shall, at least once every two years, be subject to an audit of each program or project funded. The audit is to be conducted by an independent auditor selected by the AQMD in accordance with Division 2 (commencing with Section 1100) of the Public Contract Code.

Three biennial audits have been conducted to date.

Proposal

The AQMD now is requesting proposals from qualified public accounting firms to perform the audit of fee revenues received in FYs 1997-98 and 1998-99. Staff proposes to present the report on the audit to the Board upon completion in early 2001. Based on an opinion issued by the Deputy Attorney General of the State of California, the audit will focus on the propriety of the expenditures, not their degree of efficacy in reducing air pollution.

The audit will cover the AQMD's use of the money, projects funded by the MSRC, and the use of fee revenues by selected local governments based on the audit guidelines. Staff has worked extensively with local government representatives to assist local governments in compliance.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids will be 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 Register
7.	Inland Empire Hispanic News	16.	Orange County Register
8.	Inland Valley Daily Bulletin	17.	Palm Springs Desert Sun
9.	Korea Central Daily	18.	Philippine News

Additionally, potential bidders will be 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. Notice of the RFP will be mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations and will be 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

Proposals received will be evaluated by a diverse, technically qualified panel in accordance with criteria contained in the attached RFP.

Resources

The cost of the audit will be borne by the entities being audited in the manner set forth in the audit guidelines included as Attachment 2 of the RFP and will be deducted from fee revenues prior to distribution. Sufficient funding to cover AQMD’s portion of the audit costs is included in the FY 2000-01 Budget.

Attachment

RFP #P2001-02

/ / /