BOARD MEETING DATE: February 3, 2006
AGENDA NO. 29

Administrative Committee

SYNPOSIS:

The Administrative Committee met Friday, January 13, 2006, and reviewed the proposed agenda for the February 3, 2006, Board meeting. The Committee also discussed various issues detailed in the Committee report. The next Administrative Committee meeting is Friday, February 10, 2006 at 9 a.m. in Conference Room CC-8.

RECOMMENDED ACTIONS:

Receive and file.

S. Roy Wilson, Vice Chair
Administrative Committee

Attendance: Present at AQMD was Jane Carney. Also present were Vice Chair Roy Wilson and Beatrice LaPisto-Kirtley (via videoconference). Dr. Burke and Ronald Loveridge were absent.

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.

FEBRUARY AGENDA ITEMS:

5. Execute Contract for Independent Audit Services for FYs Ending June 30, 2006, 2007, and 2008: Rick Pearce, Chief Financial Officer, stated that every three years AQMD goes out to bid for financial auditing services. The three top scorers from the seven responses received were interviewed. Mr. Pearce stated that three years ago Mayor Loveridge requested staff to make changes to the audit RFP process to try and increase the number of responses. Staff made two changes; the first: by advertising four months earlier in October, which is a less busy time for auditing firms; and the second: no budgeted amount was specified in the RFP to allow an opportunity for the auditors to provide more openly their bids based on the tasks listed. These changes increased the number of responses from three (three years ago) to seven this year. The three firms interviewed by the committee were Charles Fedak of Charles Z. Fedak & Company; Brainard C. Simpson of Simpson & Simpson; and Michael David Castro, Principal of Thompson, Cobb, Bazilio & Associates. Three questions were asked of each auditor. Based on the responses provided and the services that would be obtained by AQMD for the three upcoming years, Thompson, Cobb, Basilio & Associates is recommended by the Committee. This recommendation was a change from the current auditor, Simpson & Simpson. Ms. LaPisto-Kirtley suggested that governmental agencies need to make a change at a certain point to obtain a fresh approach and commended staff for bringing in very strong candidates. Ms. Carney also stated that a change of firms after six years would be very beneficial to AQMD. Motion by LaPisto-Kirtley; seconded by Carney. Supervisor Wilson requested that in the future he would like all materials submitted by proposers be provided to the Committee members with the Administrative Committee agenda.
    
6. Audit for FY Ended June 30, 2005: Mr. Pearce introduced Brainard C. Simpson and Grace Nguyen of Simpson & Simpson to provide the findings from the audit ending June 30, 2005. Mr. Simpson stated that AQMD received an "unqualified" opinion, the highest assessment. Mr. Simpson reviewed the agency's assets and liabilities as reported in the audit, describing AQMD as being in very good financial condition and having very solid resources. Ms. Carney asked if the Board had an Audit Committee, what Simpson & Simpson's interaction would be with an Audit Committee. Mr. Simpson answered that they would engage their auditors with the Audit Committee as to issues brought up before the Audit Committee and provide a draft report to the Committee prior to Board's review. Ms. Carney stated that in prior years Simpson & Simpson made recommendations regarding control issues, and Ms. Nguyen answered that the management letter is presently in draft form, but they will be updating the status of implementation of recommendation from observations made from the previous year. Mr. Simpson also stated that Simpson & Simpson also conducted a single audit for audit reports for governmental grants and programs and no findings were made. Mr. Pearce stated that the CAFR is available on AQMD's website, along with the two previous CAFR reports. Motion by Carney; seconded by LaPisto-Kirtley.
    
7. Amend Contract with Ecotek, MST Solution, Inc. for Privatization of Portions of the Annual Emissions Reporting Program: Elaine Chang, DEO/Planning & Rules & Area Sources, stated that staff is recommending to the Board to exercise the first of three one-year renewal options with Ecotek to continue with the annual emission reporting program. They have been performing this job very well over the past ten years under successive competitive bids. Ms. Carney asked if this firm charges businesses for the software, and Dr. Chang explained that AQMD owns the software and provides it without charge. Motion by Carney; seconded by LaPisto-Kirtley.
    
8. Execute Contract for Student Co-op Program: Carol Coy, DEO/Engineering & Compliance, stated that Engineering & Compliance would like to execute a contract with Cal Poly Pomona to have their students assist with Engineering & Compliance's programs. Motion by LaPisto-Kirtley; seconded by Carney.
    
9. Appropriate Funds for Special Particulate Air Monitoring Program: Henry Hogo, Assistant DEO/Science & Technology Advancement, explained that this is a continuation of a program AQMD has with U.S. EPA and the Department of Homeland Security to assist in collecting particulate samples. Staff is requesting to continue assistance to them and appropriate $158, 338 in passthrough funding into AQMD's budget. Motion by Carney; seconded by LaPisto-Kirtley.
    
10. Execute Purchase Order for Continuous Ozone Analyzers for Ambient Air Monitoring Network: Motion by Carney; seconded by LaPisto-Kirtley.
     
11. Execute Lease Contracts for Printing Equipment and Copiers: Motion by LaPisto-Kirtley; seconded by Carney.
     
12. Establish List of Prequalified Vendors to Provide Computer, Network, and Printer Hardware and Software, and Purchase Desktop Computer Hardware Upgrades: Motion by Carney; seconded by LaPisto-Kirtley.
     
13. Execute New Contracts for Short- and Long-Term Systems Development and Support Services: Motion by LaPisto-Kirtley; seconded by Carney.
     
14. Ethnic Community Advisory Group Minutes for December 14, 2005: Attached for information are the Ethnic Community Advisory Group minutes for the December 14, 2005 meeting.
     
15. Local Government & Small Business Assistance Advisory Group Minute for September 23, October 14, and November 18, 2005: Attached for information are the Local Government & Small Business Assistance Advisory Group Minutes for the September 23, October 14, and November 18, 2005 meetings.
     
16. Review February 3, 2006, Governing Board Agenda: Dr. Wallerstein highlighted the public hearings related to locomotive operations rulemaking (PR3501 and PR3502) which staff is prepared to recommend to the Board. These will constitute a landmark by AQMD if approved.

Staff carried over the architectural coatings issue to the February Board agenda to receive Board direction.

Dr. Wallerstein stated that the deadline to submit proposals for the BP settlement funds has been extended for two additional weeks ending January 20, 2006. He stated he was not sure whether staff would be ready to provide their recommendations in February, but the option is left open.

Ms. Carney asked whether the Carl Moyer awards may be presented to the Mobile Source Committee meeting also, and Dr. Wallerstein answered affirmatively.

17. Other Business: Kurt Wiese, District Counsel, stated that California law has been revised regarding compensation and reimbursement for Governing Board Members. AQMD already has an existing policy, but revisions need to be made. This item will be brought to the February 10 Administrative Committee, but the requirements of the new law will be implemented as per the statute.

Supervisor Wilson requested AQMD staff to look into the echo heard on his videoconference equipment.

18. Public Comment: None.

Meeting adjourned at 10:07 a.m.

Attachments (EXE 127kb)

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