BOARD MEETING DATE: January 10, 2003
AGENDA NO. 27

Administrative Committee

SYNOPSIS: 

The Administrative Committee met Friday, December 13, 2002, and reviewed the proposed agenda for the January 10, 2003, Board meeting. The Committee also discussed various issues detailed in the Committee report. The next Administrative Committee meeting is Friday, January 17, 2003, at 9:00 a.m. in Conference Room CC-8.

RECOMMENDED ACTION:

Receive and file.

Dr. William A. Burke, Chair
Administrative Committee

Attendance: Present were Members Beatrice LaPisto-Kirtley and Ronald Loveridge and Roy Wilson (via videoteleconference). Supervisor Wilson was appointed as chair of this meeting in Dr. Burke's absence. Absent were Chair Dr. William A. Burke and Vice Chair Hal Bernson.

DISCUSSION ITEMS:

1. Board Members’ Concerns: Board Member Beatrice La Pisto-Kirtley suggested that a list of actual accomplishments be provided to the January 17 or February 14 Administrative Committee meetings by each of the advisory groups with 2002 performance outcomes toward clean air goals. Dr. Wallerstein commented that at the last Board meeting enhanced guidelines were approved for advisory committees, including the request to set their goals and objectives to be approved at the February 7 Board meeting and also identify what was accomplished during the past year. Supervisor Wilson stated that there is concurrence from Board Members to proceed with this action request.
   
   
2. Chairman’s Report of Approved Travel: Barry Wallerstein, Executive Officer, stated that travel requests were approved for Norma Glover who attended a public policy conference in Austin, TX and met with representatives in Houston and Dallas, TX regarding the Chairman's Multi-Regional Alliance for Clean Air Initiative; and Mayor Loveridge's return from Salt Lake City, UT where he was attending the League of Cities conference to attend the December 6 Governing Board meeting.
   
   
3. Approval of Compensation for Board Member Assistant(s): Approval was made for Board Member Craycraft's Assistant, Natalie Karcher, and Board Member Aguiar's Assistant, Dennis Yates, effective December 13. Moved by LaPisto-Kirtley, seconded by Wilson and unanimously approved by the Committee.
   
   
4. Report of Approved Out-of-Country Travel: None.

JANUARY AGENDA ITEMS:

5. Audit for FY Ended June 30, 2002: Rick Pearce, Chief Financial Officer, explained that each year an audit is performed by an outside auditor selected by the Board regarding their findings on AQMD's financial statements. Mr. Pearce continued that in June 1999 the Government of Standards Board implemented statement #34, which requires AQMD to revise its report and provide a different look to its financial statements, providing fund basis and adding all expenses and revenues on AQMD's activities as a whole; the new format also requires AQMD to depreciate its assets. This new rule was phased in 1999 over a three-year period, which makes this AQMD's first year and the first agency to use it. Grace Yuen, Partner of Simpson & Simpson, stated that the audit was completed for June 2002 with an unqualified opinion (the highest available) on the financial statements. The audit is performed in accordance with government accounting standards to issue a separate report on internal controls and division programs. There were two major changes issued this year--AQMD has issued a comprehensive financial report, which includes not only the financial statements but trend statements prepared by Finance. Staff is recommending the Committee receive and file the report. Dr. Wallerstein stated that the Board requested staff to conduct a mid-year budget briefing, which will be included in the agenda of the Board retreat to be held in late January. Mayor Loveridge asked whether this audit was similar to previous ones, and Ms. Yuen answered that this is the first year of the conversion which has gone very smoothly. Mayor Loveridge commended staff on a job well done on these audits. Moved by Loveridge; seconded by Wilson, and unanimously recommended for approval.
   
   
6. Report of RFPs and RFQs Scheduled for Release in January: Mr. Pearce stated that staff is seeking approval for two RFPs--Employee Relations Litigation and Negotiation Services; and Telecommunication Services. Moved by LaPisto-Kirtley, seconded by Loveridge, and unanimously recommended for approval
   
   
7. Adopt Resolution Authorizing Acceptance of Credit Card Payments for CNG Fueling and Rule 222 Internet Filings: Mr. Pearce stated that the County of Los Angeles' Treasurer requires AQMD to obtain approval prior to seeking credit card payments for CNG fueling (at the headquarters new CNG fueling station). At the same time, the agency will implement a program for Rule 222 to automate a registration process via internet which charges a nominal fee by credit card. Ms. LaPisto-Kirtley asked about updating of the website that shows accessible CNG facilities and staff responded that they will confirm with the contractor. Mayor Loveridge asked who at AQMD have been issued credit cards. Mr. Pearce answered there are three credit cards, one issued to Dr. Wallerstein, one to Dr. Liu, and one is stored in the safe for use in reserving a hotel room when staff is traveling. There are amount-limit purchasing cards issued to a few people when there is a need to purchase small items. Moved by LaPisto-Kirtley, seconded by Wilson, and unanimously recommended for approval
   
   
8. Amend Contract with Ecotek, MST Solutions, Inc. for Privatization of Portions of Annual Emissions Reporting Program: Elaine Chang, DEO/Planning, Rule Development and Area Sources, stated that staff recommends the second of the third renewal for Ecotek be executed for a total not to exceed $390,000. The firm has performed satisfactorily in implementing the annual emission reports. The firm has also developed, maintained, and updated the emissions reporting software; produced and distributed reporting materials; provided public outreach and assistance; collected and compiled reported data; and conducted limited data quality control. Ecoteck, after implementing its program to collect data, has been able to report emissions electronically which allows staff to dedicate more time to audit functions. Moved by Loveridge, seconded by LaPisto-Kirtley, and unanimously recommended for approval
   
   
9. Amend Contract for Facilitation Services for a Negotiated Rulemaking Pilot Program for Metal Finishing Rules: Jill Whynot explained that this is to request additional funding for a negotiated rulemaking pilot program for metal finishing rules. The original amount requested was $40,000, but with this additional amount of $33,438, the contract amount shall not exceed $73,765 from the FY 2002-03 Budget. Mayor Loveridge asked why Cal State Sacramento was selected for facilitation services, and Ms. Whynot answered that Mr. R. Gregory Bourne was selected based on his unique combination of experience in the areas of environmental experience with the metal plating industry and with various agencies--U.S. EPA, U.S. Department of Education, U.S. Department of Justice, U.S. Army, and U.S. National Park Services. Moved by LaPisto-Kirtley, seconded by Loveridge, and unanimously recommended for approval.
   
   
10. Authorize Funding to Purchase Compliance Year 2002 NOX RTCs: Carol Coy, DEO/Engineering & Compliance, explained that last August staff was allowed to purchase RTCs from a number of power plants and other RECLAIM companies in order to make up the power plant RTCs in the mitigation fund account. Power plants paid mitigation fees to account for a need for a total of three million emission credits into the mitigation account, Executive Officer's account, or the State Governor's Executive Order account. There have been approximately 200,000 lbs. of RTCs generated under the marine vessel rule and 870,000 lbs. through other RECLAIM facilities. Staff is recommending staff funding for up to $3 million for 2 million lbs. of inexpensive credits. Staff would like to purchase these credits after the reconciliation period from sellers for $1 through the end of February. Mayor Loveridge asked what the downside would be, and Dr. Wallerstein answered that when the Board approved this program, the power plants paid credits at a rate of $7.50 per pound, but the current rate is $1. With the additional $6.50 per pound to be earned, AQMD will be using the money for emission reduction projects to better the environment. Moved by Loveridge, seconded by LaPisto-Kirtley, and unanimously recommended for approval.
    
    
11. Approve Classification Recommendations: Eudora Tharp, Asst. DEO/Administrative & Human Resources, stated that AQMD has been conducting an agency-wide classification study, which is the first after layoffs and downsizing occurred in 1994. This recommendation completes the study of the Professional Unit. Recommended changes to agency classifications and revisions will cost $101,000 for the fiscal year. Mayor Loveridge asked how the classifications have changed, and Ms. Tharp answered that classifications have been updated to fit current duties performed, to require college degrees in some cases, and to adjust some to higher- or lower-level duties over time. These changes have been discussed and agreed upon by both bargaining unions. Dr. Wallerstein commented that these reclassifications should move AQMD into a new era in employee relations and mediation after the pain and suffering layoffs caused a decade ago. Moved by LaPisto-Kirtley, seconded by Loveridge, and unanimously recommended for approval.
    
    
12. Establish Lists of Prequalified Vendors to Provide Unleaded Fuel, Automotive Maintenance and Repair Services, and Mailing Services: Ms. Tharp explained that this is a routine item that establishes vendor lists every two years. Staff is recommending the vendors listed be prequalified to provide unleaded fuel, automotive maintenance and repair services, and mailing services. Mayor Loveridge asked how companies can be included on these lists, and Ms. Tharp answered that firms need to meet the minimum requirements of the RFP. Mayor Loveridge asked if the firms were located in Southern California, and Ms. Tharp answered that the firms all met the requirements and are local in order to provide services on AQMD's automobiles, mailing services, and fuel. Moved by Loveridge, seconded by LaPisto-Kirtley, and unanimously recommended for approval.
    
    
13. Report on Major Projects for Information Management Scheduled to Start During Last Six Months of FY 2002-03: Chris Marlia, Asst. DEO/Information Management, stated that this is a standard item for the last six months of the fiscal year related to telecommunications services, system development outsourcing, and telecommunications hardware services. This is a receive-and-file report. Ms. LaPisto-Kirtley requested technical information regarding cell phones related to adding a separate line in order to eliminate the need to submit highlighted expense claims for calls made on behalf of AQMD. Mr. Marlia will have staff look into the situation and provide her the information.
    
    
14. Ethnic Community Advisory Group Minutes for October 9, 2002, and Recommended Appointments/Reappointments for Membership: Attached for information are the Ethnic Community Advisory Group minutes for the October 9, 2002, meetings.
    
    
15. Local Government and Small Business Assistance Advisory Group Minutes for October 18, 2002, and Recommended Appointments/Reappointments for Membership: Attached for information are the Local Government and Small Business Assistance Advisory Group Minutes for October 18, 2002.
    
16. Review January 10, 2003, Governing Board Agenda: Mayor Loveridge inquired regarding Norma Glover and Jon Mikels' presentations to be made at the January 10 Board meeting. Dr. Wallerstein stated that staff is preparing crystal doves for presentation as has been done in the past. Ms. LaPisto-Kirtley requested the ECAG breakfast meeting scheduled on January 10 be postponed to hold a breakfast meeting to honor the departing Governing Board members. Mayor Loveridge stated he would also like to include senior staff at this breakfast.
    
    Regarding item #3713 on page 94, Dr. Wallerstein stated that he and Dr. Chang have been meeting with environmental community groups and representatives of business and local government in hopes of moving forward and obtaining consensus on the pending White Paper on measures to address the cumulative impacts from air toxic emissions. There were no changes made to the agenda. This report was received and filed.
    
    
17. Other Business: None.
    
    
18. Public Comment: John Billheimer, Enviro-Reality, commented on the grinding of green waste and asked if PM10 composed of green waste material is the same as and subject to the same regulations as PM10 comprised of mineral, soot, and other known harmful substances. He stated these items are showing up in various rules and should be discussed at a technical level. Dr. Chang stated that the air quality standard is based on the size not on the speciation and AQMD's approach is appropriate as it relates to treating sawdust and particles according to the size.

Meeting adjourned at 9:47 a.m.

Attachments

Ethnic Community Advisory Group Minutes for October 9, 2002
Local Government & Small Business Assistance Advisory Group Minutes for October 18, 2002

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