South Coast Air Quality Management District

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Execute Contract for Biennial Audit of Motor Vehicle Registration Revenues for FYs 1997-98 and 1998-99

SYNOPSIS: 

Health and Safety Code Section 44244.1 requires any agency receiving fee revenues to be subject to an audit of each program or project funded at least once every two years. On July 21, 2000 the Board approved the release of an RFP to select an auditor to perform the biennial audit for FYs 1997-98 and 98-99. An evaluation panel of representatives from state agencies, local governments, and AQMD Finance staff evaluated the proposals. Staff recommends that the Board execute a contract with the firm of Thompson, Cobb, Bazilio & Associates. Local governments, the MSRC, and AQMD will pay for the cost of their own audits in the amounts of $48,290, $19,610, and $5,860 respectively.

COMMITTEE:  

Administrative, September 8, 2000. Committee Members who were present communicated their concurrence.

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Thompson, Cobb, Bazilio & Associates for performance of the biennial audit of Motor Vehicle Registration revenues for FYs 1997-98 and 1998-99 at a total cost not to exceed $73,760.

Barry R. Wallerstein, D.Env.
Executive Officer

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. Health and Safety Code, Section 44244.1(a) requirements state that any agency receiving fee revenues pursuant to section 44243 or 44244 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. Audit program guidelines for local government recipients of fee revenues under Health and Safety Code Sections 44220-247 were prepared by the AQMD with input from the Technical Advisory Committee Audit Subcommittee of the IAIC, representatives of the Finance Committee of the League of Cities and with CPA firms whose clients include local governments. These audit guidelines were approved by the IAIC, MSRC and by your Board on December 4, 1992 and further revised and approved in November 1994. This is the fourth biennial audit of these fee revenues and covers FYs 1997-98 and 1998-99.

Proposal

On July 21, 2000, the Board approved an RFP to conduct the biennial audit of recipients of AB 2766 fee revenues. The audit will cover recipients in all three segments of the AB 2766 fee distribution to determine whether the fee revenues collected in FY 1997-98 and 1998-99 were spent on the reduction of pollution from motor vehicles as described above. The primary purpose of the audit is to set forth an opinion regarding the propriety of the expenditures incurred, not the degree of efficacy in reducing air pollution.

Outreach

In accordance with 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 notified 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; AQMD Purchasing’s mailing list; and AQMD Administrative and Human Resources list of interested childcare center management agencies. Notice of the RFP was 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

The AQMD received a total of three proposals by the 1:00 p.m. August 25, 2000 deadline which were evaluated by a technically qualified panel in accordance with criteria contained in the RFP.

Panel Composition

An evaluation panel was convened to evaluate the three proposals and consisted of a representative from the Administrative Services Division of the California Air Resources Board; two representatives from local cities; and two AQMD staff, the Controller and a Financial Analyst. Of these five panelists, four are female, one is male and four are Caucasian and one is Asian Pacific Islander.

Of the three proposals received, two were rated technically qualified and were scored for cost. The evaluation results for the two proposals are:
 

The selection criteria used to rank the proposals included responsiveness to the RFP; technical expertise; qualifications and experience; past performance; cost; and SB/SBJV/DVBE/DVBEJV/DVBE/SB subcontractors/local business designation (non-EPA). Based on the panel’s assessment of the criteria, Thompson, Cobb, Bazilio & Associates was selected to be recommended to the full Board.

Resource Impacts:

The maximum audit cost is $73,760. The total audit costs will be borne by the entities being audited as follows:

• The cost of the audit of the AQMD's portion of motor vehicle registration revenues is $5,860. Sufficient funds are included in the FY 2000-01 Budget;
  
  
• The cost of the audit of 17 projects and the Mobile Source Air Pollution Reduction Trust Fund is $19,610 and shall be deducted from the FY 2000-01 revenues subvened to the Mobile Source Air Pollution Reduction Review Fund; and
  
  
• The total cost of the audit of local governments is up to a maximum of $48,290. This cost will be borne by the entities being audited in the manner set forth in the audit program guidelines and will be deducted from quarterly fee revenues prior to distribution.

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