BOARD MEETING DATE: June 4, 2004
AGENDA NO. 28

Administrative Committee

SYNOPSIS:

The Administrative Committee met Friday, May 14, 2004, and reviewed the proposed agenda for the June 4, 2004, Board meeting. The Committee also discussed various issues detailed in the Committee report. The next Administrative Committee meeting is Friday, June 11, at 9:00 a.m. in Conference Room CC-8.

RECOMMENDED ACTION:

Receive and file.

S. Roy Wilson, Vice Chair
Administrative Committee

Attendance: Present was Vice Chair Roy Wilson (via videoteleconference), who chaired this meeting. Also present at AQMD was Member Ronald Loveridge. For this meeting, Cynthia Verdugo-Peralta was appointed as a member of the Committee. Absent were Chair Dr. William Burke, and members Jane Carney and Bea LaPisto-Kirtley.

ACTION/DISCUSSION ITEMS:

1. Board Members’ Concerns: None.
    
2. Chairman’s Report of Approved Travel: Dr. Barry Wallerstein, Executive Officer, stated that Ms. Verdugo-Peralta traveled to San Diego on May 4-6 to attend the Greenhouse Gas Climate Policy Conference. Mayor Loveridge requested a written report be prepared after a Board member has traveled, and be faxed to all Governing Board members for their information.
    
3. Approval of Compensation for Board Member Assistant(s): None.
    
4. Report of Approved Out-of-Country Travel: Dr. Wallerstein stated that Dr. Burke will be attending the Montreux Energy Roundtable where high-level energy executives will be provided with an update on the current worldwide energy market and emerging technologies; to be held September 27-29, 2004, in Montreux, Switzerland. Mayor Loveridge indicated his interest in a report to all Governing Board members on conference highlights.
    
5. Approval of New and Continuing Membership in the Ethnic Community Advisory Group: Dr. Anupom Ganguli stated that a few months ago the Governing Board approved a new charter for the Ethnic Community Advisory Group (ECAG). Staff is recommending approval of 16 members to be reappointed or appointed as submitted by Board members. Ms. Verdugo-Peralta will be requesting nominations be made by Governing Board members, and this opportunity will also be posted on AQMD's website. Moved by Loveridge, seconded by Verdugo-Peralta.

JUNE AGENDA ITEMS:

6. Adopt Executive Officer's FY 2004-05 AQMD Budget and Work Program: Rick Pearce, Chief Financial Officer, stated that this item transmits the Executive Officer's expenditures and fee modifications and provides information on the agency's effects on relative undesignated fund balances. These issues were discussed at two Board Workshop meetings held on April 30 and May 7. Dr. Wallerstein mentioned that the Finance Committee suggested the Board's Student Intern Program be scaled back as a cost-saving measure, and that number of student hours be limited. If the Administrative Committee is in agreement, Dr. Wallerstein said staff will proceed to send resumes to Board members, since students are waiting to hear about internships. Ms. Peralta asked how much money would be saved by reducing the program, and Mr. Pearce answered that four months for 12 students would cost $100,000. Ms. Peralta asked which of the 44 positions to be unfunded are revenue generating. Dr. Wallerstein stated the final documents will be presented at the June 4 Board meeting. Ms. Peralta requested an additional opportunity for ECAG and possibly LG&SBA to have an overview of the budget presentation and the options being proposed. Dr. Wallerstein stated staff will assist in scheduling a meeting.
   
   Mayor Loveridge asked what comments were made during budget workshops, and Dr. Wallerstein stated that there has been mention of the agency's seeking to receive revenue from property taxes. Staff is reviewing the provisions of State law in this regard, but caution needs to be taken any revenues would be in addition to and not at the expense of existing property tax-funded health and welfare programs. Supervisor Wilson asked if consensus was reached by the Board. Dr. Wallerstein answered that Councilman Yates expressed concern regarding the impact of fee increases on small businesses.
   
   Dr. Wallerstein stated that during the Board Retreat held in January and the Budget Study sessions just held concerns were raised that AQMD will not have adequate resources available to keep the fees down and provide the current level of services. Another concern regarding the budget is that labor negotiations are coming up in August and employees will be asked to make sacrifices and contribute more of their current earnings toward retirement. Ms. Peralta asked how much money is necessary to sustain AQMD. Dr. Wallerstein answered the Board has tightened the belt the last 6-1/2, but substantial cuts are still required. Even with a 6% increase in fees, the agency will still only partially recover program costs. Without that increase, staff losses would be even greater. Dr. Wallerstein said he would encourage the Board to look at additional revenue sources, such as property taxes. A retreat between CARB and AQMD Board members is being urged to "clean the air as partners." Ms. Verdugo-Peralta asked what level is needed to allow AQMD to conduct business, and Dr. Wallerstein responded that a 6% increase in fees is needed to keep the agency at the level the Board has come to expect. Mr. Pearce stated that retirement costs will increase in future years. AQMD needs to begin adjusting fees to close the gap. It needs to be a combined effort, involving fee increases, new revenue sources, and staff making concessions with their compensation package. Mayor Loveridge stated that Board members need to stay involved so they have an understanding of the dynamics and do not allow the organization to be reduced to a hollow shell. Moved by Loveridge, seconded by Verdugo-Peralta.
    
7. Amend Regulation III – Fees: Laki Tisopulos, Assistant DEO/Planning, Rule Development, and Area Sources, stated this is the companion item to the Budget and there is no additional material to be presented today. Dr. Wallerstein added that staff will prepare various fee proposals for Board consideration, and Counsel has advised that in the event the Board considers a fee proposal other than Option A or B, the Board may want to adopt both the budget and fee proposal in June, but place the Regulation III fee amendments on the consent calendar for the July Board meeting to include and confirm all the appropriate language. Moved by Loveridge, seconded by Verdugo-Peralta.
    
8. Execute Contract to Purchase Ozone Analyzers for Ambient Air Monitoring Network: Henry Hogo, Asst. DEO, Science & Technology Advancement, stated staff is recommending executing a contract with TeleDyne for 24 analyzers this year. Due to the low bid for this project, 24 analyzers may be purchased this year rather than the previously requested amount of 16. Mayor Loveridge asked how many analyzers are currently in the laboratory, and Mr. Hogo answered 32, but they do have a long life and are not replaced each year. Moved by Verdugo-Peralta, seconded by Loveridge.
    
9. Recognize, Appropriate, and Reallocate Funds from U.S. Department of Defense to Conduct Feasibility Demonstration to Measure Low-Level Pollutant Concentrations and Issue RFQs: Mr. Hogo stated this was brought to the April 9 Administrative Committee, but now staff is proposing to include an RFQ and that reallocation of funds from U.S. DOD be used to conduct a feasibility study to measure low-level pollutants. It is also being requested that this project be recognized into next year’s budget for the purchases per the Board's approval. Moved by Loveridge, seconded by Verdugo-Peralta.
    
10. Execute Contract for Occupational Health Services: Eudora Tharp, Assistant DEO/Administrative & Human Resources, stated that the current contract for physical examinations required by CAL-OSHA for employees who conduct monitoring in hazardous environments expires at the end of June. Staff is requesting the contract be executed to the University of California, Irvine, for $10,000 per year for a 3-year contract UC Irvine is one of the best facilities in the state that deals with toxic exposure for field workers and has assisted AQMD in the past with setting up our own employee monitoring program. Mayor Loveridge asked how many problems have occurred recently with employees, and Ms. Tharp answered that annual exams are required for employees who are required to wear respirators and for follow-up exams for those exposed and who monitor over the years. Mayor Loveridge asked if employees’ health has been impaired by the inspections, Mayor Loveridge asked about problems that have occurred with employees, and Ms. Tharp referred the question to Bill Johnson, Risk Manager, who answered that a few claims for workers’ compensation benefits have been filed in the past five years, but only one claim is currently being litigated regarding occupational exposure. Moved by Verdugo-Peralta, seconded by Loveridge.
     
11. Recommendation to Adopt a Resolution to Issue Bonds to Retire the Unfunded Liability for Employees Participating in the San Bernardino County Employees' Retirement System: Mr. Pearce stated that this Board letter transmits the resolution to the June 4 Board meeting to allow AQMD to execute final agreements to issue pension obligation bonds as the Board approved in April. Mr. Pearce presented two options for the Committee's consideration. The 1^st option was a level debt service schedule. This option has no budget savings in the first few years, but would provide greater interest savings over the life of the bonds – close to $18 million. Mr. Pearce is recommending this option to obtain the best savings for AQMD over the long term. The second option, ascending debt services, would provide annual budget savings of approximately $600,000 per year compared to the current UAAL schedule but would result in less overall savings ($13 million) over the 20-year life. Dr. Wallerstein suggested this item be placed on Board Calendar instead of consent so full discussion may be held with the Board members. Mr. Pearce mentioned that AQMD will still face additional retirement costs over the next 4-5 years as market losses are realized. Moved by Loveridge, seconded by Verdugo-Peralta.
     
12. Execute Contract for Student Co-op Program: Mr. Pearce stated this program was initiated in 1995 with Cal Poly Pomona and staff is requesting to continue the contract to hire student interns to assist in Finance. This program has included interns from the University of California Riverside, Cal State Fullerton, as well as other colleges, and is advertised to all the local community colleges and universities through the co-op program. This has been a successful program for AQMD where the students are hired full-time for the summer months and part time during the school year to assist in various aspects of accounting. Ms. Verdugo-Peralta stated the program is good and moved approval, seconded by Loveridge.
     
13. Report of RFPs and RFQs Scheduled for Release in June: Mr. Pearce stated that staff is requesting two RFQs--Provide Library Services and Supplies and Hire Outside Liability Counsel--be approved. Mayor Loveridge asked if AQMD still receives periodicals and books and asked if there is a better method to handle library services. Dr. Wallerstein suggested that over the next year the budget will be reviewed regarding mandatory and non-mandatory programs and which should be continued. Ms. Verdugo-Peralta requested that a notice be placed on AQMD's website regarding library services being available for public use. John Billheimer, Enviro-Reality, commented that libraries are important and are a necessity for the public to obtain backup material needed in making decisions on Board items and to analyze material at home. Moved by Wilson, seconded by Loveridge.
     
14. Issue RFP to Conduct Survey and Prepare Guidance Document for Appropriate School Site Selection: Pom Pom Ganguli, Public Advisor, explained that staff is requesting approval to issue an RFP and prepare a guidance document for school site selection. At the last Administrative Committee meeting, a sole-source contract was proposed, but after discussion with representatives of local school districts regarding this issue in the four counties, staff is recommending to issue an RFP and execute a contract for $75,000 at the August Board meeting for completion of work by December 2004. Dr. Wallerstein commented this will address some of Ms. Beatrice LaPisto-Kirtley's concerns expressed at the last Committee meeting. Moved by Loveridge, seconded by Verdugo-Peralta.
     
15. Ethnic Community Advisory Group Minutes for March 10, 2004: Attached for information is the Ethnic Community Advisory Group minutes for the March 10, 2004.
     
16. Local Government & Small Business Assistance Advisory Group Minutes for March 12, 2004: Attached for information is the Local Government & Small Business Assistance Advisory Group (LG&SBA) minutes for the March 12, 2004, meeting.
     
17. Review June 4, 2004, Governing Board Agenda: Dr. Wallerstein stated that the items on the June agenda are straight-forward, and briefly explained what each public hearing issue related to.
    
18. Other Business: None.
     
19. Public Comment: None.

Meeting adjourned at 10:02 a.m.

Attachments

Ethnic Community Advisory Group Minutes for March 10, 2004
Local Government & Small Business Assistance Advisory Group Minutes for March 12, 2004

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