BOARD MEETING DATE: April 2, 2004
AGENDA NO. 7

Execute Contract for Contract-Related Services

SYNOPSIS:

Staff proposes to contract with Nancy S. Covey, the former AQMD Procurement Manager, to provide assistance with certain contract-related tasks occurring over the next year. Health and Safety Code Section 40426.7 requires the Board to make certain findings before contracting with certain AQMD employees within twelve months following retirement. Although Section 40426.7 applies to Ms. Covey’s contract, the Board can make all the findings with regards to her proposed contract.

COMMITTEE:

Technology, March 26, 2004, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Executive Officer to enter into a level-of-effort contract with Nancy S. Covey, for contract-related services at an hourly rate of $110 for a total amount not to exceed $40,000, terminating up to one year from date-of-execution of the contract or when the tasks described in the contract are completed, whichever is sooner.
    
2. Approve findings that: at the time Ms. Covey left AQMD employment, (1) Ms. Covey was working on one or more programs that are of great importance to the south coast district, (2) that Ms. Covey’s services are necessary to assure the continued effectiveness of the program or programs, (3) that the contract is only for that period of time necessary to complete Ms. Covey’s work on the program or programs, and (4) that Ms. Covey is the most qualified person to provide the needed services.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMD has a need for contract-related services due to the recent departure of Nancy S. Covey, AQMD’s former Procurement Manager. Ms. Covey held this position from 1993 to 2003. She was involved in a number of important AQMD programs during her tenure that are still in progress. More specifically, Ms. Covey was a central figure in contract negotiations for projects awarded under the Clean Fuels Program, which has approximately $11 million in available funding annually. Other programs where Ms. Covey was actively involved include: the Carl Moyer Memorial Air Quality Standards Attainment Program, the Lower-Emission School Bus Replacement and Retrofit Program, and the State Emissions Mitigation Program. All of these programs are on-going. To date, the AQMD has received and awarded over $122 million under these programs. Program expenditures are awarded through the use of contracts or grants resulting in approximately 200 awards annually. For each of these programs as well as others, Ms. Covey’s expertise was vital in establishing internal program guidelines, developing contract terms and conditions which addressed program guidelines while mitigating legal concerns, and negotiating favorable resolution to contractual issues.

The AQMD’s Procurement Policy and Procedure authorizes the use of sole-source contract under certain circumstances. This request is made under reason (4): "other circumstances exist, which in the determination of the Governing Board or Executive Officer, require such waiver in the best interests of the District." Ms. Covey is a licensed attorney with over 30 years experience in public and private sector, and commercial contracting. Her former position provides her with unparalleled familiarity with the AQMD Procurement Policy and Procedure, the contracting process, and AQMD programs. She was intimately involved in expanding the AQMD Procurement Policy and Procedure to encompass the research, development and demonstration (RD&D) mission of the AQMD Technology Advancement Office. Ms. Covey possesses a critical blend of contract, legal, business, and technical knowledge to provide comprehensive solutions to contractual issues arising from RD&D projects in the AQMD’s Clean Fuels Program. Her expertise in contracts and negotiations, as well as her in-depth knowledge and understanding of AQMD programs and procedures, make Ms. Covey the most qualified and best suited person to provide the needed services.

To award a level-of-effort contract for employment services to Ms. Covey, the Board must also make the findings under California Health & Safety Code Section 40426.7 (b), Restrictions on Former District Employees. The Board must find that (1) the employee was working on one or more programs that are of great importance to the south coast district, (2) that the services of the employee are necessary to assure the continued effectiveness of the program or programs, (3) that the contract is only for that period of time necessary to complete the employee’s work on the program or programs, and (4) that the employee is the most qualified person to provide the needed services. These findings must be made by a two-thirds vote.

The Board can make these findings as to Ms. Covey with regard to her proposed employment. Each of the projects included in this contract is vital to the proper organization and functioning of the AQMD. Ms. Covey has been a central figure in each of these projects, and consequently, her services are necessary to ensure their continued effectiveness. This request is for authorization for a contract that terminates up to one-year or upon completion of the projects set out in the contract, whichever is sooner. Ms. Covey, as AQMD’s former Procurement Manager, has knowledge and experience, and had formed working relationships with the District’s Finance, Procurement, District Counsel, and Technology Advancement staff, such that she is the most qualified person to provide the needed services

Proposal

It is therefore recommended that the Board authorize the Executive Officer to enter into a contract with Nancy S. Covey, for Procurement related services, with a contract rate of $110 per hour, and which will not exceed $40,000, terminating up to one-year from date-of-execution of the contract or when the tasks described in the contract are completed, whichever is sooner. Staff would only utilize Ms. Covey’s services in those areas where her knowledge and experience are essential. A task order would be prepared prior to any work to be performed by Ms. Covey.

Resource Impact

The total cost of this contract will not exceed $40,000. Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

AGENDA ITEM NO. 7

FINDINGS

PURSUANT TO HEALTH & SAFETY CODE §40426.7

The Governing Board of the South Coast Air Quality Management District makes the following findings with respect to a contract with Nancy S. Covey, for Contract Services, which is more fully described in the accompanying Governing Board letter:

1. At the time the employee, Ms. Covey, left AQMD employment, the employee was working on one or more programs that are of great importance to the south coast district;
    
2. that the services of the employee are necessary to assure the continued effectiveness of the program or programs;
    
3. that the contract is only for that period of time necessary to complete the employee’s work on the program or programs, and
    
4. that the employee is the most qualified person to provide the needed services.

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