BOARD MEETING DATE: September 9, 2005
AGENDA NO. 9

Recognize, Appropriate and Reallocate Funds for PAMS, PM2.5, Special Toxics Study, and Issue Purchase Orders for Laboratory Equipment

SYNOPSIS:

U.S. EPA has allocated funding for two ongoing monitoring programs: 1) Section 105 Grant funds of $1,247,903 for the 14^th federal fiscal year (FFY) 2006 of the PAMS program and 2) Section 103 Grant funds of $648,596 for the continuation of the PM2.5 monitoring program for the current Fiscal Year. Since actual funds for the 13^th year PAMS program were not received in FY 2004-05, a significant portion of the funds were not spent. As such, this action is to (a) appropriate unspent, unbudgeted funds from the 13^th year PAMS program and recognize unbudgeted revenue from the FY 2004-05 PM2.5 program and appropriate unspent, unbudgeted funds to the FY 2005-06 Budget and (b) recognize revenue upon receipt of the award and appropriate funds to the FY 2005-06 Budget for the 14^th year PAMS program and the continuation of the PM2.5 monitoring program for FFY 2005-06. In addition, this action is to appropriate unspent funds for the Special Toxics Study to the FY 2005-06 Budget. Lastly, this action is to issue purchase orders for a gas chromatograph/mass spectrometer (GC/MS) system, based on the RFQ result; and a carbon analyzer on a sole source basis. These allocations were discussed with and approved by U.S. EPA.

COMMITTEE:

Administrative, July 15, 2005, Recommended for Approval

RECOMMENDED ACTIONS:

1. Recognize revenue of $739,978 in the FY 2005-06 Budget and appropriate unbudgeted, unspent funds of $643,327 from the U.S. EPA Section 105 Grant for the 13^th year PAMS program from the Undesignated Fund balance to the Major Objects in the Science and Technology Advancement and Planning, Rule Development and Area Sources FY 2005-06 Budgets as set forth in Attachment 1. (Expenditure appropriation excludes Salaries and Employee Benefit amounts, which were included in the FY 2005-06 adopted Budget).
    
2. Upon receipt of the U.S. EPA Section 105 14^th year (FFY 2006) PAMS award, appropriate unbudgeted expenditures of $1,110,903 from the Undesignated Fund balance to the Major Objects in the Science and Technology Advancement and Planning, Rule Development and Area Source FY 2005-06 Budgets as set forth in Attachment 1. (Expenditure appropriation excludes Salaries and Employee Benefit amounts, which were included in the FY 2005-06 adopted Budget).
    
3. Upon receipt of the award, recognize $71,222 of unbudgeted revenue in the FY 2005-06 Budget from U.S. EPA Section 103 Grant funds for the FFY 2005-06 PM2.5 program. (A portion of the revenue has already been included in the FY 2005-06 adopted Budget). Upon receipt, appropriate unbudgeted expenditures of $155,600 from the Undesignated Fund balance to the FY 2005-06 Science and Technology Advancement Budget as set forth in Attachment 2. (Expenditure appropriation excludes Salaries and Employee Benefit amounts, which were included in the FY 2005-06 adopted Budget).
    
4. Recognize revenue of $117,979 in the FY 2005-06 Budget and appropriate from the Undesignated Fund balance unspent, unbudgeted funds of $52,000 from the U.S. EPA Section 103 Grant for the FY 2004-05 PM2.5 program to the Major Objects in the Science and Technology Advancement FY 2005-06 Budget as set forth in Attachment 2. (Expenditure appropriation excludes Salaries and Employee Benefit amounts, which were included in the FY 2005-06 adopted Budget).
    
5. Appropriate unspent, unbudgeted funds of $80,906 from the U.S. EPA Section 103 Grant funds for the Special Toxics Study from the Undesignated Fund balance to the Major Objects in the Science and Technology Advancement’s FY 2005-06 Budget as set forth in Attachment 3. (Expenditure appropriation excludes Salaries and Employee Benefit amounts, which were included on the FY 2005-06 adopted Budget).
    
6. Authorize the Procurement Manager to execute a purchase order with Entech Instruments Inc. for an amount not to exceed $163,023 for the purchase of one (1) gas chromatograph/mass spectrometer system including tax, shipping, setup and training based on the bid evaluation shown in Attachment 4.
    
7. Authorize the Procurement Manager to execute a purchase order with Atmoslytic Inc. for an amount not to exceed $52,000 for the purchase of one (1) carbon analyzer including tax, shipping, setup and training on a sole-source basis.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

PAMS Program
In February 1993, the U.S. EPA promulgated the PAMS regulations for areas classified as serious, severe or extreme nonattainment. These regulations require AQMD to conduct monitoring for ozone precursors with enhanced monitoring equipment at a total of seven sites. The PAMS program is also funding the meteorological upper air profilers sited at LAX and Ontario airports, the upper air site installed at Moreno Valley in Riverside County, and a new upper air site planned for Orange County. Since the onset of the PAMS program, U.S. EPA has annually allocated Section 105 supplemental Grant funds in support of this requirement.

PM2.5 Program
Since 1998, U.S. EPA has been providing funds for a comprehensive PM2.5 air monitoring program under a Section 103 Grant, as part of the national program to enhance the monitoring network for PM2.5. To date, there are 19 ambient monitoring stations operating 22 PM2.5 samplers under the U.S. EPA funding. In addition, U.S. EPA has funded a supplemental Grant to collect continuous particle size information, at several sites within the South Coast Air Basin, and to purchase and operate an additional PM2.5 speciation sampler at the Downtown Los Angeles air monitoring station to allow for a comparison of speciated samples between the AQMD laboratory and a designated national laboratory. This augmentation substantially added to the fine particulate data which will help in the characterization of air quality conditions and health impacts.

National Air Toxics Monitoring Program
Pursuant to the U.S. EPA's solicitation for pilot demonstration projects under the National Air Toxics Monitoring Program - Community Assessments - Request for Applications (OAR-EMAD-03-08, Amendment 002), U.S. EPA approved a proposal to conduct a community assessment program. The project consists of community studies to identify how emissions from transportation and industrial sources are dispersed into the surrounding community in the Sun Valley region; potential impacts from municipal airports; and characterization of hexavalent chromium in the Basin. These measurements will, in part, also address community exposure and risk issues within the Basin and assess model performance, as well as complement the MATES III regional exposure study.

U.S. EPA funded the AQMD proposal under a Section 103 Grant in FY 2004-05. However, since the program spans AQMD fiscal years, carryover funds need to be recognized and reallocated.

Proposal

PAMS Program
U.S. EPA has advised staff that the 14^th year PAMS program will be funded at $1,247,903, which is consistent with previous years. PAMS 13^th year funds for FFY 2005 were awarded earlier this year and those funds covered expenditures and encumbrances incurred in FY 2004-05 and would cover the first three months of FY 2005-06. Since the federal fiscal year ends in September, there will be unspent funds of $739,978 that staff is recommending be carried into FY 2005-06 to cover salaries and employee benefit expenditures and service and supplies expenditures during the last three months of the federal fiscal year in the Science & Technology Advancement and Planning, Rule Development & Area Sources Budgets.

The PAMS funds will assure adequate data capture to support this project which is of significant importance both to the AQMD and the U.S. EPA. The proposed allocation of the 13^th and 14^th year PAMS funds is provided in Attachment 1. The U.S. EPA concurs with this use of the PAMS funds.

PM2.5 Program
AQMD will receive U.S. EPA Section 103 Grant funds in the amount of $648,596 to continue support of the PM2.5 monitoring network. This action is to recognize and appropriate funds for this program to the Science & Technology Advancement FY 2005-06 Budget for the PM2.5 program and allocate those funds as set forth in Attachment 2. In addition, unspent Section 103 Grant funds are recommended to be reallocated to the FY 2005-06 Budget as provided in Attachment 2. The proposed allocations have been discussed with and accepted by U.S. EPA.

National Air Toxics Monitoring Program
As discussed earlier, the AQMD has received a Section 103 Grant award to conduct additional air toxics monitoring to complement MATES III. U.S. EPA funded the AQMD proposal under a Section 103 Grant in FY 2004-05. However, since the program spans AQMD fiscal years, carryover funds need to be recognized and reallocated. This action is to recognize and reallocate these funds to FY 2005-06 Budget as set forth in Attachment 3.

Purchase of GC/MS System and Carbon Analyzer
On April 1, 2005, the Board allocated funds from the U.S. EPA 105 PAMS Grant to purchase a gas chromatograph/mass spectrometer (GC/MS) system to support the PAMS programs. The Board also approved the release of RFQ #Q2005-07 to competitively select a vendor from which to purchase one gas chromatograph with a mass spectrometer detector system. The primary function of the GC/MS instrument will be in the analysis of VOCs in canisters collected as a part of the PAMS program. The acquisition of a new GC/MS system is necessitated by the age and resultant frequent breakdown of the existing instrument. The GC/MS will provide additional resources to staff in processing VOC samples for the PAMS program.

Copies of RFQ #Q2005-07 for the purchase of a gas chromatograph with a mass spectrometer detector system were mailed out to interested parties and advertised in accord with the AQMD advertisement policy. At the close of the solicitation on May 3, 2005 two (2) quotations were received.

An evaluation panel was convened to evaluate the bids received from the respondents to the RFQ. The panel consisted of two Air Quality Chemists, one Principal Air Quality Chemist, one Senior Air Quality Chemist, and a manager from CARB. The panel makeup relative to ethnicity and gender is as follows: two Asian, two Caucasians and one Hispanic; one female and four male. The evaluation process was conducted according to the criteria described in the RFQ.

The panel, based on its evaluation, determined that the two (2) bids met the basic specifications of the RFQ for the gas chromatograph with a mass spectrometer detector system. Attachment 4 summarizes the evaluation of the bids. Both bids met the minimum technical scores. Neither of the two (2) vendors meets the AQMD’s definition of a "small business" or "minority woman owned business."

The lowest-cost, qualified bid is from Entech Instruments for the gas chromatograph with a mass spectrometer detector system. Therefore, staff recommends that the Board authorize the Procurement Manager to execute a contract with Entech Instruments for an amount not to exceed $163,023 for the purchase of one (1) gas chromatograph with a mass spectrometer detector system. Sufficient funds are available as requested in the PAMS budget allocation as a part of this letter.

On December 5, 2003, the Board recognized revenue from U.S. EPA Section 103 Grant funds for the PM2.5 Program, and approved release of an RFQ to purchase two carbon analyzers to augment PM2.5 speciation in preparation for the next State Implementation Plan planning cycle for PM2.5. On March 5, 2004, the Board approved the issuance of a purchase order with Atmoslytic Inc. to purchase two carbon analyzers to support the PM2.5 program. There is a need for a third carbon analyzer to keep up with the increased work load from MATES-III and the National Air Toxics Monitoring Program. To provide consistent analysis, it is recommended that the carbon analyzer be purchased on a sole source basis from Atmoslytic Inc. Sufficient funds are available as in the PM2.5 budget as a part of this letter. The U.S. EPA concurs with this recommendation.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising RFQ #Q2005-07 and inviting bids was published in the following publications:
 

1.	Antelope Valley Press	11.	La Opinion	21.	Rafu Shimpo
2.	Black Voice News	12.	La Prensa Hispana	22.	San Bernardino Sun
3.	Chinese Daily News	13.	La Voz Publications	23.	State of California Contracts
4.	Desert Sun	14.	Los Angeles Daily News		Register
5.	Eastern Group Publications	15.	Los Angeles Sentinel	24.	The Daily Breeze
6.	El Chicano	16.	Los Angeles Times	25.	The Excelsior
7.	El Informador	17.	Orange County Register	26.	The Signal
8.	Inland Empire Hispanic News	18.	Philippine News	27.	Wave Community Newspapers
9.	Inland Valley Daily Bulletin	19.	Precinct Reporter
10.	Korea Central Daily	20.	Press Enterprise

Additionally, potential bidders may have been notified utilizing the Los Angeles County MTA Directory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and AQMD’s own electronic listing of certified minority vendors. Notice of RFQ #Q2005-07 was mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, and placed on the Internet at AQMD’s Web site (http://www.aqmd.gov). Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Sole Source Justification for the Purchase of a Carbon Analyzer

Section VIII B.2.d. of the AQMD’s Procurement Policies and Procedures allows for the sole source purchase of fixed assets if certain conditions are met. These conditions include projects involving a commitment to multiple project phases; and/or projects requiring compatibility with existing specialized equipment.

On December 5, 2003, the Board recognized revenue from U.S. EPA Section 103 Grant funds for the PM2.5 Program, and approved release of an RFQ to purchase two carbon analyzers. On March 5, 2004 the Board approved the issuance of a purchase order with Atmoslytic Inc. to purchase the carbon analyzers. These carbon analyzers are also being used to support the MATESIII program. At its May 2005 meeting the AQMD Board approved a one year extension of the MATES-III program. As a result there is a need for a third carbon analyzer to keep up with the increased work load due to the extension of MATES-III and the upcoming National Air Toxics Monitoring Program.

The analysis of elemental carbon on filter samples is of vital importance to the determination of overall risk in the Basin in general and for diesel emissions specifically. Since there is no direct measurement technique to quantify diesel emissions in ambient air, elemental carbon (EC) is used as a surrogate for diesel emissions. The instrument used to determine EC on filters is a carbon analyzer.

The use of EC to estimate diesel emissions and thus risk continues to be an area of scientific debate. There are two different analysis techniques using carbon analyzers which give widely different results. Additionally, since there are no standards for the determination of carbon on a filter, different instruments can yield different results. Since a third instrument is needed to handle the increased work load as described above, it is imperative that an instrument identical to the existing instruments be purchased to provide analytical consistency and for comparison to other data that will be generated through the National Air Toxics Monitoring Program and other future programs. Further, staff is well versed in the operation and maintenance of the current carbon analyzers from Atmoslytic Inc. Additionally, spare parts on hand will be compatible with both the existing and proposed new instrument.

Therefore, it is recommended that the carbon analyzer be purchased on a sole source basis from Atmoslytic Inc. Sufficient funds are available as in the PM2.5 budget as a part of this letter.

Resource Impacts

U.S. EPA funding will support the 14^th year operation of the PAMS program and will further provide for equipment, temporary services, supplies and services, necessary to meet the objectives of the program.

The proposed funding levels will be provided by the U.S. EPA Section 103 Grant to support the continuation of the PM2.5 Program and to conduct air toxics monitoring to complement MATES-III.

Funds for the purchase of the GC/MS system are available in the FY 2005-06 Budget for the PAMS 13^th year Program as a part of this Board Letter.

Funds for the purchase of the carbon analyzer are available in the FY 2005-06 Budget for the PM2.5 Program as a part of this Board Letter.

Attachments (EXE 63kb)

Attachment 1 - Proposed PAMS 14th Year Expenditure
Attachment 2 - Proposed PM2.5 Expenditure
Attachment 3 - Proposed National Air Toxics Monitoring Expenditure
Attachment 4 - Bid evaluation for GC/MS System

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