BOARD MEETING DATE: September 8, 2006
AGENDA NO. 29

Administrative Committee

SYNOPSIS:

The Administrative Committee met Friday, July 14, 2006, and reviewed the proposed agenda for the September 8, 2006, Board meeting.  The Committee also discussed various issues detailed in the Committee report.  The next Administrative Committee meeting is Friday, September 15, 2006 at 9 a.m. in Conference Room CC-8.

RECOMMENDED ACTION:

Receive and file.

Dr. William A. Burke, Chair
Administrative Committee

Attendance:  Present at AQMD were Chair Dr. Burke, Vice Chair Roy Wilson, and Members Jane Carney and Dennis Yates.  Ronald Loveridge was absent.

ACTION/DISCUSSION ITEMS:

1. Board Members’ Concerns:  Supervisor Wilson requested minutes from the June 9 meeting be amended to indicate he was present. 
    
2. Chairman’s Report of Approved Travel:  Dr. Wallerstein stated that Mayor Pulido attended the U.S. Conference of Mayors held in Las Vegas, NV on June 3-5, 2006 regarding plug-in hybrids and environmental issues; Pom Pom Ganguli attended the League of United Latin American Citizens Conference held in Milwaukee, MN on June 27-30, 2006; and Cynthia Verdugo-Peralta will be attending the California Fuel Cell Partnership Steering Team meeting scheduled on October 23-25, 2006 in Sacramento, CA.
    
3. Approval of Compensation for Board Member Assistant(s):  None.
4. Report of Approved Out-of-Country Travel:  None.

SEPTEMBER AGENDA ITEMS:

5. Authorize Expenditures for Diamond Bar Headquarters Building Refurbishment:  Eudora Tharp, Assistant DEO/Administrative & Human Resources, stated that, since the building is more than 14 years old and in need of refurbishment, staff is requesting to establish a fund of $495,000 for four building projects (replacing carpet in high- traffic areas, re-roofing the child care center, replacing seats in conference center classroom, and refurbishing elevator cars), which would be accomplished in accordance with procurement policy guidelines.  Moved by Burke; seconded by Carney; unanimously approved.
    
6. Amend Contract for Lease of South Bay Field Office:  Ms. Tharp stated that South Bay office space has been leased for AQMD's refinery inspectors for the past 10 years and that the current lease expires in September.  Since review of other propeties indicates this is a cost-effective location with good accessibility, staff recommends the lease be extended for an additional five years.  Moved by Carney; seconded by Wilson; unanimously approved.

Cynthia Verdugo-Peralta arrived at 11:25 a.m. and was appointed as a Committee member for this meeting only.

7. Add Position in Science and Technology Advancement:  This item was unanimously approved by the Committee members, but is being revised and will be brought back to the Committee in September.
    
8. Recommendation on Long-Term Debt Reduction Utilizing One-Time Penalty/Settlement Revenues; Approval of Resolution Authorizing AQMD to Enter into Guaranteed Investment Contract; and Approval to Hire Specialized Legal and Financial Advisory Services:  Rick Pearce, Chief Financial Officer, stated staff's effort to develop a balanced budget was a two part proposal:  cost recovery and debt reduction.  The debt reduction program being proposed requires the Board to adopt two resolutions.  The first, including a resolution allowing AQMD to enter an investment contract for authorizes AQMD to enter into an investment agreement for an eight-year period, followed by a second resolution (after a 90-day waiting period) approving the final debt structure.  This action authorizes AQMD to enter into a $19.1 million guaranteed investment contract with a triple-A rated firm resulting in an approximate savings to AQMD of $3 million a year for an eight-year period.  Total savings would be approximately $24 million.  There was lengthy discussion regarding the safety of placing AQMD funds in this investment program.  Mr. Pearce mentioned that State law requires that the investment contract, which would be competitively bid, be fully securitized.  Moved by Wilson; seconded by Yates; unanimously approved.
    
9. Authorize Transfer of AQMD Building Corporation Restricted Fund Balances to New AQMD Building Corporation Depository Account with U.S. Bank to Cover Ongoing Operation of Building Corporation Until All Bonds Mature:  Mr. Pearce stated the AQMD headquarters construction project has been deemed complete and that the Corporation has made its final arbitrage payments to the IRS.  These actions will result in the closure of both the Contruction Fund and Rebate Funds with the Trustee.  Building Corporation cost to date has been paid for from the Construction Fund held by the Trustee.  He noted that the Board set-up a special revenue fund in 1989 to support the administrative requirements (audits, legal, Trustee services) of the Corporation through 2015.  This action is to transfer the balances held by AQMD for the operation of the Building Corporation to a Building Corporation depository account with the bond Trustee to support the Building Corporation operations until all bonds mature. 
   
   Ms. Carney mentioned that she has a concern in placing $500,000 in an account with what she saw as unclear controls on how the money will be spent.  Mr. Pearce explained that the Building Corporation has three officers, appointed by the Board (Jay Bond, University Architect for Cal State Fullerton; John Donaldson, a retired building facilities director; and Ray Robinson, a retired consultant representing the painting industry) who meet approximately once a year to review the activities of the Corporation and approve the financial statements and audit of the Corporation.  Ms. Carney suggested placing an amount in the fund annually to pay for activities incurred.  Mr. Pearce sated that the Building Corporation legal counsel wanted to ensure sufficient funding for the Corporation before the Rebate funds were closed.
   
   Dr. Burke suggested replacing the current Board with two AQMD Board Members, District Counsel, and the Executive Officer, but Supervisor Wilson mentioned that since the building is in maintenance mode and there is not much money remaining in the account, it would be beneficial to retain the current members.  Mr. Pearce suggested an amount of $250,000 be transferred into the Trustee account to cover the estimated cost of operations through 2015.  Moved by Wilson; seconded by Carney; unanimously approved.
    
10. Approve Budget for Air Monitoring in Port Area and I-710 Freeway Corridor and Issue Purchase Orders:  Moved by Yates; seconded by Wilson; unanimously approved.
     
11. Issue RFP for Legislative Representation in Sacramento, California:  Dr. Wallerstein explained that there are currently two consultants working in Sacramento until the current legislative session ends.  The third contractor, Allan Lind, resigned.  Mayor Yates recommended adding to the RFP the scope of work to be defined and to allow only one contractor for the contract amount allocated.  Ms. Carney suggested defining what our legislative program would be and setting money aside for future activities.  Dr. Wallerstein suggested including in the Board letter the specific amount to be allocated and what the priorities will be for the coming year, along with setting aside money for unanticipated costs. Moved by Yates; seconded by Carney; unanimously approved.
     
12. Issue RFP for Legislative Representation in Washington, D.C.:  Ms. Carney recommended that in order to receive better performance from the Washington, D.C. consultant, the mission needs to be more focused in order for them to provide more detailed reporting.  She also suggested teaming up with other agencies, which have similar issues, to share the cost for lobbyists.  Dr. Wallerstein stated that the California Air Pollution Control Officers Association (CAPCOA) may have similar interests -- railroad, off-road, and harbor related emission control strategies.  Mayor Yates recommended Legislative Committee members be allowed to travel to Washington, D.C. to establish a presence from AQMD and the issues important to us.  Moved by Yates; seconded by Carney; unanimously approved.
     
13. Ethnic Community Advisory Group Minutes for May 10, 2006:  Attached for information is the Ethnic Community Advisory Group minutes for the May 10, 2006 meeting. 
     
14. Review September 8, 2006, Governing Board Agenda:  Dr. Wallerstein stated that Proposed Rule 410 may not have support from the Waste Management Board regarding the amendments made to the rule.  Motion by Wilson; seconded by Carney; and unanimously approved.
     
15. Other Business:  None.
     
16. Public Comment:  None.

Meeting adjourned at 11:56 a.m.

Attachment (DOC 46 kb)
Ethnic Community Advisory Group Minutes for May 10, 2006