BOARD MEETING DATE: July 9, 2004
AGENDA NO. 27

Administrative Committee

SYNOPSIS:

The Administrative Committee met Friday, June 18, 2004, and reviewed the proposed agenda for the July 9, 2004, Board meeting. The Committee also discussed various issues detailed in the Committee report. The next Administrative Committee meeting is Friday, July 16, at 9:00 a.m. in Conference Room CC-8.

RECOMMENDED ACTION:

Receive and file.

Dr. William A. Burke, Chair
Administrative Committee

Attendance: Present (via teleconference) were Chair William A. Burke, Members Roy Wilson, Beatrice LaPisto-Kirtley and Jan Perry. Present at AQMD was Member Jane Carney. Absent was Mayor Ronald Loveridge.

ACTION/DISCUSSION ITEMS:

1. Board Members’ Concerns: None.
    
2. Chairman’s Report of Approved Travel: Dr. Barry Wallerstein, Executive Officer, stated that Cynthia Verdugo-Peralta attended the California Fuel Cell Partnership Membership, CAPCOA, and California Hydrogen Highway meetings on May 17-20 in Sacramento; Ms. Verdugo-Peralta also attended the California Hydrogen Highway meeting in Sacramento on June 3-4, and will attend the California Hydrogen Highway meeting on August 30-September 1 in Sacramento.
    
3. Approval of Compensation for Board Member Assistant(s): The contracts for FY 2004-05 for Board Assistants/Contractors were approved. Motion by LaPisto-Kirtley; seconded by Carney.
    
4. Report of Approved Out-of-Country Travel: Dr. Wallerstein stated that Ms. Verdugo-Peralta will attend the California Fuel Cell Partnership Steering Team meeting in Vancouver, BC on July 11-14, and Dr. Wallerstein is making an amendment to approve Gary Dixon's travel to accompany her as a technical resource. Ms. LaPisto-Kirtley asked who Ms. Verdugo-Peralta was taking, and Dr. Wallerstein answered that Mr. Dixon would attend as he is one of the main interfaces with CaFCP and the lead individual on fuel cell, hydrogen infrastructure fueling projects. Ms. LaPisto-Kirtley asked why Ms. Peralta was not taking her Board Assistant. Dr. Wallerstein responded that her Board Assistant is an employee of CARB, who spends a very limited amount of time assisting with AQMD matters; she is requesting AQMD staff to attend as they actively work on these technical issues. Her other Board Assistant assists her with administrative issues. Dr. Burke asked if there is a perceived conflict by having a Board Assistant who is a CARB employee. Dr. Wallerstein stated that other Board Assistants work for other agencies and it has not been a problem. Dr. Burke stated that this agency is directly in line with CARB and that if AQMD is going to be taking positions with CARB, it seems odd to contract with an employee of CARB. Dr. Wallerstein stated that the Board Assistant only has information regarding material presented at Committee meetings, which is public information. Dr. Burke requested that Ms. Verdugo-Peralta call him regarding this issue.

Councilwoman Perry joined the meeting at 9:14 a.m.

JULY AGENDA ITEMS:

5. Adopt Resolution Amending Hearing Board Compensation: Dr. Wallerstein stated this item was approved by the Personnel Committee. He explained that the Hearing Board members have not received a pay adjustment since 1992 and the Personnel Committee is recommending a 7% pay adjustment with an opportunity to evaluate future adjustments annually. Ms. LaPisto-Kirtley was concerned about such a pay increase and asked if Hearing Board positions are full or part-time. Dr. Wallerstein stated that the Hearing Board meets three days a week. Mr. Camarena explained that Hearing Board members are required to be available three days a week and need to spend time preparing for hearings. As chair, he works four days a week for 30 hours and the other Board members work 22 hours per week. Ms. LaPisto-Kirtley stated that she appreciates what the Hearing Board does, but that she is uncomfortable with the perception of providing a 7% increase in these lean times. She said she would be in favor of a 2% adjustment, the same as employees receive. Ms. Jane Carney stated that the Personnel Committee met and did not recommend a making up for cost-of-living-adjustment since 1992, which would total around 24% today. The Personnel Committee looked at the overall dollar impact on the budget, and felt it was not large. She continued that, in order to recognize the independence and level of expertise of the Hearing Board, the Personnel Committee concurred that a more appropriate level of compensation should be provided. Dr. Wallerstein stated the fiscal impact is less than $19,000. Ms. LaPisto-Kirtley stated she is also concerned about the Board Assistants receiving a 2% increase, which she felt their part-time status did not warrant under current conditions. Motion Carney; duly seconded. LaPisto-Kirtley opposed.
    
6. Approve Salary and Benefits Adjustment for Management, Confidential, and Attorney Employees: Dr. Wallerstein stated that salary and benefits are established on annual basis. The recommendation, which was reviewed by the Personnel Committee, is for an adjustment comparable to that approved for represented employees. The Personnel Committee asked that the indemnity medical option be eliminated next year to lower costs for employee benefits. Dr. Wallerstein stated that upcoming negotiations with represented employees will include a proposal that employee's pay more of their retirement costs and that this proposal will apply to all employees at the agency. Motion LaPisto-Kirtley; duly seconded.
    
7. Initial Discussion of Potential FY 2004-05 Budget Augmentation: Dr. Wallerstein stated he wanted to have a conversation with the Board regarding this part of the overall budget approval with the reconfirmation of fees occurring on July 9. Staff has reached a settlement agreement with a party for an amount of $8.25 million. The settlement is signed now and has been submitted to court. Dr. Wallerstein recommended $3 million be used for purposes of the upcoming year’s budget, an additional $3 million for next year’s budget for litigation set aside, and $2.25 million for the Board to restore positions and contract dollars as a budget augmentation when the settlement money is received. Dr. Wallerstein stated that if positions are restored, it will be a total of 11-12 positions. One issue was raised by Board Members where some positions (4) to be restored are related to generating revenues. The Board expressed concerned about permit processing and inspector positions; other than that, Dr. Wallerstein is recommending one position be restored to help set up Environmental Justice (EJ) outreach programs and Small Business Assistance breakfasts and forums. The contract dollars in this year's budget are approved, but Dr. Wallerstein stated Public Affairs' budget has been decreased by $103,179 from the current year to the next year's budget. There has also been a $50,000 grant from U.S. EPA to conduct Environmental Justice (EJ) forums. His recommendations, in response to Board Members' EJ requests, are to use $250,000 for a combination of one in-house person to coordinate forums and additional funds available for contractor services for small business and community forums over the next year. Dr. Burke stated that he would not support further downsizing beyond FY 2004-05 from the agency if they are involved in the mission to maintain and stabilize programs. Dr. Wallerstein stated that part of the approval of budget and fees has been a directive from the Board with Ms. Carney's amendment to initiate a study to look into AQMD’s discretionary programs, as to which should be enhanced, stay the same, or reduced from the current level. This study will be initiated soon and be completed in January 2005; the process will involve stakeholders and also have the Board review additional funding sources to stabilize the budget. Dr. Wallerstein said that if the Board is unwilling to raise fees to maintain positions or find another revenue source such as property taxes for funding on a long-term basis, the day of reckoning will come not through attrition, but layoffs, which staff is trying to avoid. Dr. Burke stated that Board members should review nonessential items in this year’s budget to ensure AQMD has effective programs. Dr. Wallerstein agreed that staff continue to improve the use of its resources. He said the Board has a difficult decision to make as AQMD will struggle with a 3% increase, and would require a 20% increase to maintain current positions. Staff will seek guidance from the Board as to how to maintain similar service levels.
   
   Dr. Burke stated the Board should be provided with complete information in order to determine what programs are essential to AQMD's mission because the employees are the most important asset and are difficult to replace, especially when they have been trained. Dr. Wallerstein suggested accelerating the analysis planned for the budget following FY 2004-05. Dr. Burke stated the mission of AQMD is the most important element here. Ms. LaPisto-Kirtley agreed.
    
8. Remove Electric Vehicle Fixed Assets from AQMD Inventory: Henry Hogo, Assistant DEO/Science &Technology Advancement, stated staff is requesting approval to remove now-obsolete electric vehicles from surplus as fixed assets. Upon the Board's approval, the vehicles will be auctioned-off to interested parties. Moved Burke; seconded LaPisto-Kirtley.
    
9. Report on Major Projects for Information Management Scheduled to Start During First Six Months of FY 2004-05: Chris Marlia, Assistant DEO/Information Management, stated this item is a report brought to the Board to identify the items to be requested for approval from July 1 to December 31, 2004. There are three items, which are – prequalify vendors to provide on-demand services for AQMD's library services; continue maintenance for the PeopleSoft, Oracle and LibertyNet Software Support; and award contracts for short- and long-term systems development and support services. Moved Wilson; seconded LaPisto-Kirtley.
    
10. Authorize Purchase of PeopleSoft, Oracle and LibertyNet Software Support: Mr. Marlia stated that this item is to renew licenses for software maintenance support. Moved LaPisto-Kirtley; seconded Wilson; Carney abstained.
     
11. Remove Various Fixed Assets from AQMD Inventory: Moved Carney; seconded LaPisto-Kirtley.
     
12. Report of RFPs and RFQs Scheduled for Release in July: Dr. Wallerstein stated this is a monthly report which identifies the requests-for proposals to be released for advertisement for the month of July – Audit AB 2766 Fee Revenue Recipients for FYS 2001-02 and 2002-03. Moved Carney; seconded LaPisto-Kirtley.
     
13. Execute Contract for Student Co-op Program: Pom Pom Ganguli, Public Advisor, stated this item is to approve a contract with Cal Poly Pomona Foundation for student interns to assist Public Affairs in FY 2004-05 in the amount of $28,000. Dr. Burke stated that this type of item will be re-evaluated in the near future. Motion Wilson; seconded Carney.
     
14. Reallocate Funds Under Ethnic Community Outreach Contract with Lee Andrews Group/FAME Renaissance and Approve New Task Order to Conduct Environmental Justice and Community Health Awareness Training: Dr. Ganguli stated that AQMD has a contract with Lee Andrews that the Board previously approved in the amount of $60,000. This action to request reallocation of $47,500 to four environmental justice training sessions. Ms. Carney asked about the U.S. EPA grant money provided to conduct EJ programs and requested the programs be coordinated to obtain maximum impact from these dollars. Dr. Wallerstein stated that both efforts are being coordinated by Oscar Abarca, Assistant DEO/Public Affairs, and Dr. Ganguli. Dr. Burke suggested that if AQMD continues to conduct environmental justice programs with outside contractors, he would like to see one guided program conducted in all communities. Moved LaPisto-Kirtley; duly seconded.
     
15. Ethnic Community Advisory Group Minutes for April 14, 2004: Attached for information are the Ethnic Community Advisory Group minutes for the April 14, 2004.
     
16. Local Government & Small Business Assistance Advisory Group Minutes for April 9, 2004: Attached for information are the Local Government & Small Business Assistance Advisory Group (LG&SBA) minutes for the April 9, 2004, meeting.
     
17. Review July 9, 2004, Governing Board Agenda: Dr. Wallerstein stated that some of the items are status reports, such as implementation of the small boiler rule with staff making recommended changes; a white paper on fireworks displays, especially as related to Disneyland operations; and amending Regulation III as continued from the June 4 Board meeting. The other three rules have minor changes.
    
18. Other Business: Dr. Wallerstein stated that the Legislative Committee approved a support position on AB 2657 by Speaker Nunez related to metal plating shops, which is of particular importance to Councilwoman Perry.
    
    Ms. LaPisto-Kirtley asked if taxicabs licensed by the City of Los Angeles are within regulations if they use gasoline instead of CNG. Kurt Wiese, Principal District Counsel, stated an advisory was issued on the fleet rules for any privately-operated fleets, which includes taxi cabs. Dr. Wallerstein stated that AQMD is using enforcement discretion at this point due to the Supreme Court ruling on privately-owned vehicles, but AQMD management staff held a meeting with Alan Lloyd, CARB's Executive Director, and others regarding AQMD's Board requesting a waiver to enforce the taxi cab rule. Ms. LaPisto-Kirtley asked if Yellow Cabs with a City of Los Angeles medallion are privately or publicly owned, and Dr. Wallerstein answered privately owned.
     
19. Public Comment: John Billheimer, EnviroReality, stated that AQMD's Small Business unit, which hosts breakfast forums and provides other outreach to small business owners, is part of permit streamlining activities and provides much needed assistance to small businesses that have limited financial resources of their own. He asked that Small Business activities be kept separate from general public outreach if cuts are to be made.

Meeting adjourned at 9:57 a.m.

Attachments

1. Ethnic Community Advisory Group Minutes for April 14, 2004
2. Local Government & Small Business Assistance Advisory Group Minutes for April 9, 2004

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