BOARD MEETING DATE: January 7, 2005
AGENDA NO. 20

Administrative Committee

SYNOPSIS:

The Administrative Committee met Friday, December 10, 2004, and reviewed the proposed agenda for the January 7, 2005, Board meeting. The Committee also discussed various issues detailed in the Committee report. The next Administrative Committee meeting is Friday, January 14, at 9:00 a.m. in Conference Room CC-8.

RECOMMENDED ACTION:

Receive and file.

S. Roy Wilson, Vice Chair
Administrative Committee

Attendance: Present (via teleconference) was Committee Vice Chair Roy Wilson and member Beatrice LaPisto-Kirtley (via videoteleconference). Present at AQMD was member Jane Carney. Absent were Committee Chair William Burke and member Ronald Loveridge.

ACTION/DISCUSSION ITEMS:

1. Board Members’ Concerns: None.
    
2. Chairman’s Report of Approved Travel: None.
    
3. Approval of Compensation for Board Member Assistant(s): None.
    
4. Report of Approved Out-of-Country Travel: None.

JANUARY AGENDA ITEMS:

5. Audit for FY Ended June 30, 2004: Sujata Jain, Senior Manager at Simpson & Simpson, was introduced by Rick Pearce, Chief Financial Officer. Ms. Jain gave a brief overview of the June 30, 2004, audit. AQMD has received an unqualified opinion on its financial statements (the highest rating given). Ms. Jain stated that AQMD's total net assets decreased by $3.5 million due to reduced spending on capital assets and for other reasons. AQMD reported combined ending fund balances of $240.2 million; $41.4 million represents the fund balance of the General Fund. The long-term debt increased by $41.8 million during the Fiscal Year 2004 as a result of the issuance of Pension Obligation Bonds to retire the Unfunded Actuarial Accrued Liability due to the San Bernardino County Employees' Retirement Association. Ms. Jain thanked staff for their assistance and cooperation during the audit. Ms. Carney asked when the actual audit report will be provided to the Board members, and Mr. Pearce answered that the material will be included with their Board package for the January 7 meeting. Moved by LaPisto-Kirtley; seconded by Carney.
    
6. Execute Contract for Legislative Representation in Washington, D.C.: Oscar Abarca, Assistant DEO/Public Affairs, stated that interviews were conducted at this morning's Legislative Committee meeting with the result that the Committee recommended awarding Copeland, Lowery, Jacquez, Denton & Shockey, LLC a one-year contract in the amount of $131,000 with an option to renew for an additional year. The Administrative Committee joined in this recommendation. Moved by LaPisto-Kirtley; seconded by Carney.
    
7. Execute Contract to Provide Technical Support for AQMD Coachella Valley Meteorological Network: Laki Tisopulos, Assistant DEO/Planning, Rule Development & Area Sources, explained that several months ago an RFP was issued to provide technical and maintenance support for the meteorological network for Coachella Valley. Staff is requesting approval to execute a contract with Technical and Business Systems, Inc. in an amount not to exceed $50,000 with annual renewal options for the next three fiscal years provided there is adequate funding. Moved by Wilson; seconded by Carney.
    
8. Execute Contract for Privatization of Portion of Annual Emission Reporting Program: Elaine Chang, DEO/Planning, Rule Development & Area Sources, stated that this item is to approve a contract with Ecotek, MST Solutions, Inc. in an amount of $340,000 with an annual option to renew the contract for three additional years. Ecotek will assist AQMD in implementing the annual emissions fee program. Their assistance will relieve staff from performing the more routine type of work and enable them to effectively conduct engineering audits of the annual emission reports. Up to this point, the program has been able to pay for itself due to the underpayments recovered due to emission auditing. Moved by LaPisto-Kirtley; seconded by Carney.
    
9. Appropriate Grant Funds from U.S. EPA for Boiler Tune-Up Outreach Program: Dr. Tisopulos stated that grant funds of approximately $61,000 were received from U.S. EPA to develop and implement a multi-agency boiler tune-up and outreach programs for small businesses. This action is to appropriate $24,000 of the received funds to Office of Planning, Rule Development and Area Sources to reimburse the Office for supplies and services rendered and appropriate the remainder of the funds received to the General Fund. Moved by LaPisto-Kirtley; seconded by Carney.
    
10. Issue RFP to Conduct Marine Vessel and Aircraft Emissions Inventory Studies: Dr. Tisopulos stated that emissions from marine vessels and aircraft will be significant due to their increased activity in the future. Because AQMD is interested in updating inventory emissions from marine vessels and aircraft, staff recommends approval of an RFP to seek a contractor in updating the emission inventory to be incorporated into the next AQMP and help shape policy concerning these sources. Ms. Carney asked how aircraft emissions are calculated, and Dr. Tisopulos answered that actual flights of aircrafts are counted, but ships will be more difficult to inventory because while cargo moved throughout ports is anticipated to quadruple over the next 15-20 years, it may not necessarily translate into quadrupling of the number of ships. Recent trends indicate increasing reliance on cargo ships of ever increasing capacity. Ms. Carney asked if anything specific can be done to determine the specific emissions from various ships. Dr. Chang answered that the ports maintain detailed records on the type of engines ships have, but when you try to project emissions to the future, this is a big challenge. Moved by Carney; seconded by LaPisto-Kirtley.
     
11. Execute Purchase Order for Two Natural Gas Fueled Cargo Vans for U.S. Department of Defense Funded Low-Level Pollutant Concentration Measurement Study, One Natural Gas Fueled Passenger Van for AQMD Vanpool Fleet, and Allocate Rule 2202 AQIP Funds to Assist in Purchase of Natural Gas Fueled Passenger Vans for Taxicab Services: Henry Hogo, Assistant DEO/Science & Technology Advancement, stated that in August the Board authorized the purchase of two natural gas fueled cargo vans from Thorson Motor Center for a special feasibility study on low-level pollutant concentration measurement with the U.S. Department of Defense. Since then, General Motors has discontinued producing the natural gas fueled cargo vans. However, Wondries Ford still carries these vans, which staff is requesting approval to purchase for the Department of Defense, one for AQMD's vanpool fleet to replace a 1991 van which has 160,000 miles, and six to be co-funded with taxicab operators through the AQIP Special Reserve Fund. Moved by LaPisto-Kirtley; seconded by Carney.
     
12. Report on Major Projects for Information Management Scheduled to Start During Last Six Months of FY 2004-05: Chris Marlia, Assistant DEO/Information Management, stated that this item is provided to the Board every six months to identify projects where funding will be sought for approval. Ms. Carney asked for verification that $286,000 will be used for maintenance on AQMD's computer systems, and Mr. Marlia answered affirmatively. Moved by LaPisto-Kirtley; seconded by Carney.
     
13. Report of RFPs and RFQs Scheduled for Release in January: Mr. Pearce stated that one RFQ—Mini-Computer Hardware/Software Maintenance––is being requested for approval. Moved by Carney; seconded by LaPisto-Kirtley.
     
14. Recommendation to Approve Environmental Justice Advisory Group: Anupom Ganguli, Public Advisor, explained that as part of the 2004-05 EJ Workplan the Board approved the formation of an EJ Advisory Group, which will meet 2-3 times a year. The attached memberships include 16 individuals representing residents, communities, physicians, business interests, and other interested stakeholders. Staff is requesting approval of the membership for this advisory group. It is also being recommended that the Chairman appoint any necessary adjustments throughout the year. Ms. LaPisto-Kirtley requested a representative from a school district which has a large interest in EJ issues be added to the list, and Ms. Carney suggested someone from the Jurupa School District would be helpful. Ms. Carney asked if there is representation from Cal-EPA's environmental justice effort, and Dr. Ganguli answered that Romel Pascual is a deputy from EPA Region IX, along with Jocelyn Thompson, an attorney, who is involved in these issues. Moved LaPisto-Kirtley; seconded by Carney.
     
15. Ethnic Community Advisory Group Minutes for October 27, 2004: Attached for information are the Ethnic Community Advisory Group minutes for the October 27, 2004 meeting.
     
16. Local Government & Small Business Assistance Advisory Group Minutes for October 8, 2004: Attached for information are the Local Government & Small Business Assistance Advisory Group (LG&SBA) minutes for the October 8, 2004, meeting.
     
17. Review January 7, 2005, Governing Board Agenda:
    Item #4644 – Amend Regulation XX – Regional Clean Air Incentives Market – Carol Coy, DEO/Engineering & Compliance, stated that the main issue for the January 7 Board meeting will be RECLAIM. Rule 1156 for aggregate operations should be relatively straight forward due to issues that have already been negotiated dealing with the aggregate rulemaking. Dr. Tisopulos stated that most issues have been resolved. Howard Berman, Environmental Mediation, expressed his appreciation to staff for working together with his client. However, with respect to RECLAIM based on the revised provisions of the draft rule just released related to a new exemption, significant changes were made that have not been discussed with industry yet. He is requesting additional time to review this issue and postponing this item to the February Board meeting. He suggested that significant changes to the exemption will be necessary, which will require a continuance as a matter of law. Dr. Chang requested that a decision to postpone this item be made after the December 17 Stationary Source Committee meeting when initial input is received from the working group members. Ms. Carney stated that that decision is up to the Governing Board. Moved by Carney; seconded by LaPisto-Kirtley.
     
18. Other Business: None.
     
19. Public Comment: None.

Meeting adjourned at 9:56 a.m.

Attachments

1. Ethnic Community Advisory Group Minutes for November 10, 2004
2. Local Government & Small Business Assistance Advisory Group Minutes for November 8, 2004

/ / /