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Execute Sole-Source Contract with Los Angeles County Agricultural Commission Department of Weights and Measures for Gasoline Vapor Recovery Inspections and Testing

SYNOPSIS: 

This action is to award the sum of $100,000 for FY 2000-01 to the Los Angeles County Agricultural Commission Department of Weights and Measures inspectors to conduct vapor recovery inspections and perform tests at retail gasoline dispensing facilities within the Los Angeles County portion of the AQMD. This action will also authorize at least $100,000 to be awarded in FY 2001-02 and FY 2002-03 if included in the AQMD Annual Budgets for these fiscal years and if the work is approved by the Executive Officer. Funding for the increase over the FY 1999-00 level will come from proposed increased fees for gasoline dispensing facilities.

COMMITTEE: 

Administrative, April 14, 2000, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute the contract with the Los Angeles County Agricultural Commission for Gasoline Vapor Recovery System Inspections and Testing at a cost of $100,000 in FY 2000-01 and $100,000 each in FY 2001-02 and FY 2002-03, provided funding is authorized in the AQMD Annual Budgets and funded in the fee rule and the Executive Officer approves the work for those years.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Los Angeles County Weights and Measures inspectors periodically inspect retail gasoline dispensing facilities to ensure compliance with their regulatory requirements. For the last six years, the AQMD has contracted with the agency to conduct screening inspections of gasoline vapor recovery equipment concurrently with their routine inspections. The results of the screening inspections are reported to the AQMD and AQMD inspectors take follow-up enforcement action where appropriate.

This inspection process has been beneficial to the AQMD, Los Angeles County, and the facility operators. The AQMD benefits from the relatively low-cost screening, allowing our resources to focus on the identified noncompliant facilities. The County benefits from the funding support to their program and compliant station operators benefit by less frequent inspections by government agencies. The Weight and Measures inspectors are trained enforcement officers and have been trained on AQMD requirements by AQMD staff. As such, these inspectors would be acceptable as an expert witness if necessary, and are unlikely to be challenged on their authority to inspect. These benefits would be forgone with a private contractor. This sole-source contract is unique in that the contractor is another government agency and the manner in which the work is performed could not be duplicated by another contractor.

During FY 1999-00, AQMD staff evaluated the Weights and Measures program and determined it was cost effective as an element in an overall compliance strategy. One recommendation was to take better advantage of the testing capabilities of their program.

Accordingly, Weights and Measures has developed the capability to run performance tests associated with Phase II vapor recovery. Two such Phase II vapor recovery tests are the air to liquid ratio (A/L) test for assist systems and the liquid interlock test for balance systems. Weights and Measures inspectors routinely run tests involving the dispensing of gasoline. Thus, they already are set up with their trucks to handle the dispensed gasoline as required by the two vapor recovery tests. Their cost of $12 per nozzle for an A/L test and $6 per station for the interlock test are far less than would be incurred by AQMD.

Staff believes the $44 per station cost of the Weights and Measures inspections are currently less than the total cost to hire additional AQMD inspectors. The results of their inspections indicate that roughly sixty percent of the stations they inspect require follow-up by AQMD inspectors.

It is in the interest of both the AQMD and the County to allow a continuous flow of work as long as funding is authorized and the performance is satisfactory. It is recommended that the term of this contract include the remainder of the next three fiscal years. Work would be authorized in each of the next two fiscal years only if funding was approved in each of the annual budgets and the Executive Officer determines the performance of the contract is satisfactory. Program effectiveness will continue to be evaluated to ensure optimal use of Weights and Measures inspections to augment AQMD field compliance efforts.

Proposal

Los Angeles County Weights and Measures Department inspectors will conduct tests and inspect Phase I and II gasoline vapor recovery equipment visually for obvious defects while conducting their routine inspections. The AQMD will designate the elements of the tests and inspections and the retail gasoline dispensing facilities to be inspected. Weights and Measures inspectors will complete a report of each inspection and/or test and their findings in a format designated by the AQMD. A copy of the report will be provided to the station operator at the time of the inspection and the AQMD. Weights and Measures inspectors will not issue Notices to Comply and Notices of Violation, but will refer matters of observed noncompliance to the AQMD for follow-up enforcement action.

Los Angeles County Agricultural Commission will receive $44 for each reported inspection and up to $150 per station for testing. The total number of designated retail gasoline dispensing facilities to be inspected and/or tested will not exceed 1,500 making the total available compensation under this contract $100,000. The funding increase of $25,000 over FY 1999-00 is available from the nozzle fee increase proposed in the FY 2000-01 fee rule.

Resource Impacts

Total cost is $100,000 per year in FY 2000-01, FY 2001-02, and FY 2002-03, for a total cost of $300,000. A total of $100,000 has been included for Weights and Measures Department vapor recovery testing and inspections in the FY 2000-01 AQMD Budget request and at least $100,000 is planned for the FY 2001-02 and FY 2002-03 Budgets.

Attachment

Memorandum of Understanding

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