South Coast Air Quality Management District
South Coast Air Quality Management District
BOARD MEETING DATE: July 20, 2001 AGENDA NO. 39
Consider Request from Adopt-A-School Bus Foundation (a) Regarding Administrative Support for the Foundation and (b) To Confirm Disbursement of Funds to the Adopt-a-School Bus Foundation
SYNOPSIS:
This report summarizes the Adopt-A-School Bus Foundation Board of Directors wish with respect to the administration of the Foundation and with respect to the transfer of the $1 million that the AQMD Board tentatively designated for future transfer to the Adopt-A-School Bus Foundation.
COMMITTEE:
None.
RECOMMENDED ACTION:
Barry R. Wallerstein, D.Env.
Executive Officer
Background
At the August 18, 2000 meeting, the AQMD Governing Board directed staff to take steps necessary to create a non-profit corporation to administer the Adopt-A-School Bus program. The necessary process was followed with the Internal Revenue Service, Articles of Incorporation were filed with the Secretary of State, and the non-profit corporation was established. It held its first meeting on November 15, 2000 to organize, approve its bylaws, elect its chair and vice chair, appoint the corporation’s officers—Chief Financial Officer and Secretary—receive a staff briefing on applicable conflict of interest laws, and attend to other start-up issues. The Foundation Board requested a full staff presentation at successive meetings regarding the technical issues involved in cleaning up school buses, as well as guidance regarding the process for disbursing funds. The Foundation continued to gather information over the ensuing few months while, concurrently, the AQMD’s Rule 1195—Clean On-Road School Buses, was processed through to adoption on April 20, 2001.
The Foundation has received three donations: an initial donation of $250,000 from General Motors received in November 2000, $50,000 from Pickens Fuel in December 2000, and $45,000 from Texaco in May 2001. At staff’s recommendation, the Foundation authorized investing the bulk of these funds in an account through the Los Angeles County Treasurer, to gain the best possible return on investment until such time as grants can be made.
The Foundation Directors have been working to identify what, exactly, the Foundation would fund since the Foundation Directors see the answer to that question as an essential element of the fundraising effort that is, one must be able to describe for potential donors what their donation will be buying. Further, part of that decision-making process involves reaching out to school district superintendents and other school officials to address their issues and concerns to determine how best to invest Foundation funds for air quality benefit.
The Foundation also has strategized on how best to leverage existing funds and raise additional funds to reach its initial goal of at least fitting every eligible school bus with a particulate trap, an endeavor that the Foundation would like to embark upon forthwith. The Foundation plans to finalize its outreach materials and kick off its fundraising campaign this summer.
At the June 2001 Board meeting, staff presented a proposal to transfer administration of the Adopt-A-School Bus Foundation to the American Lung Association, to further ensure that there is no perception of conflict of interest between the Foundation’s efforts and the AQMD’s public service mandate. The AQMD Board requested that staff solicit further input from the Foundation Board and report back to the AQMD Board at the July AQMD Board meeting, preferably with the Foundation Chair in attendance. The Foundation’s Chair, Marilyn M. Morton, anticipates attending the July AQMD Board meeting to respond to any questions the AQMD Board members may have.
The Foundation Board of Directors met with the Chairman and Executive Director of the American Lung Association of Los Angeles County (ALALAC) on June 18, 2001 and reviewed ALALAC’s proposal to administer the Adopt-A-School Bus Foundation. AQMD’s Executive Officer attended that meeting, as did other AQMD staff.
While the Foundation recognizes that there may be certain benefits resulting from an association with ALALAC, the Foundation also recognizes that there is an air quality benefit to be derived from the synergy between AQMD’s and the Foundation’s efforts. The Foundation would like to capitalize on that synergy, while remaining independent from AQMD as to avoid any appearance of potential conflict. Furthermore, the Foundation would like to be able to commit in its fundraising endeavors that 100% of the funds it raises will actually be applied to reducing emissions from school buses and avoid making substantial administrative expenditures. The Foundation would therefore prefer to continue receiving administrative support from the AQMD until at least December 31, 2001. It will evaluate other administration options and return to the AQMD Board in January 2002 with a status report. The Foundation also has asked that a separate address, phone numbers, and website domain be established for it.
Lastly, the Foundation requests the transfer to the Foundation of the $1 million donation tentatively designated by the AQMD Governing Board in March.
Proposal
Consider the Adopt-A-School Bus Foundation’s requests to:
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a) |
Continue providing AQMD staff support to the Foundation with a status report to be provided to the AQMD Board at its January 2002 meeting; |
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b) |
Transfer $1 million from AQMD to the Foundation. |
Fiscal Impacts
If administrative support continues to be provided by AQMD, there will be no change from the current fiscal impacts. Further evaluation of the costs associated with establishing separate address, telephone numbers, and website is needed.
Attachments
None
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