BOARD MEETING DATE: April 6, 2007
AGENDA NO. 28

REPORT:

Administrative Committee

SYNOPSIS:

The Administrative Committee met Friday, March 9, 2007, and reviewed the proposed agenda for the April 6, 2007, Board meeting.  The Committee also discussed various issues detailed in the Committee report.  The next Administrative Committee meeting is scheduled on Friday, April 13, 2007 at 9:00 a.m. in Conference Room CC-8.

RECOMMENDED ACTION:

Receive and file.

S. Roy Wilson, Vice Chair
Administrative Committee

Attendance:  Present at AQMD were Jane Carney and Dennis Yates.  Committee Vice Chair Roy Wilson attended the meeting via videoconference.  Chair William Burke and Ronald Loveridge were absent.

ACTION/DISCUSSION ITEMS:

1. Board Members’ Concerns:  None.
    
2. Chairman’s Report of Approved Travel:  Dr. Wallerstein stated that Councilmember Reyes Uranga was traveling to Sacramento on February 28-March 1 and March 12-14 to serve on the California Cities Climate Change Working Group and attend the Green California Summit and Exposition, respectively.  On March 4-7 Ms. Carney, Supervisors Ovitt and Wilson, and Councilmember Reyes Uranga met with Congressional representatives to discuss the Chairman’s Mobile Source Fair Share Initiative in Washington, D.C.
    
3. Approval of Compensation for Board Member Assistant(s):  None.
    
4. Report of Approved Out-of-Country Travel:  Dr. Wallerstein stated that Ms. Verdugo-Peralta will be speaking at the Hydrogen & Fuel Cells 2007 conference scheduled on April 28-May 2, 2007 in Vancouver, BC.
    
5. Cost Analysis for Verbatim Transcription of Board Meetings:  Dr. Wallerstein explained that staff prepared an analysis to report the cost of transcription services for Board meetings as requested by Ms. Verdugo-Peralta, which is approximately $8,600 per year.  This cost does not include posting the transcription onto AQMD’s webpage and the necessity for a break for the transcriber during Board meetings.  Ms. Carney stated that accuracy in minute taking is appreciated, but is difficult and rarely helpful and not useful to the public.  She mentioned that this type of detailed reporting would not be a good use of AQMD’s money.  Mr. Yates stated that minutes may be corrected at the next meeting without imposing additional costs, and based on these costs would not endorse this request.  Ms. Carney requested that opposing comments always be reflected in minutes.  Supervisor Wilson asked what the Committee’s recommendation would be, and Dr. Wallerstein recommended this discussion be reflected in the Administrative Committee minutes, which are part of the Board package.  If further discussion is raised at the Board meeting, it will part of the Administrative Committee report. 
    
6. Report on Potential Cost of " Living Wage" Requirement:  Eudora Tharp, Asst. DEO/Administrative & Human Resources, stated that this report was prepared in response to Ms. Carney’s request, during the January discussion of the janitorial services contract, for information on the cost to the agency were the Board to adopt a living wage requirement for contractors.  She found the only agencies in our area who have such a requirement are the City and the County of Los Angeles.  Using Los Angeles County's $9.46 per hour living wage rate, the additional cost for AQMD's janitorial, security guard, and landscape services contracts would be approximately $219,423 per year.  Based on the City of Los Angeles rate of $10.64 per hour, the annual additional cost would be approximately $239,083.  Ms. Carney stated that the amount of the increase is very substantial, but that this suggests to her that people are being paid low wages.  She asked the Committee whether it would be advisable to entertain requiring payment of a living wage in future contracts.  Mr. Yates responded that a living wage requirement raises contract costs by about 25% and that AQMD has a fiduciary responsibility to those who pay fees.  He pointed out that the State has recently raised the minimum wage and that it will increase again in 2008 and questioned whether it was not the obligation of the State or federal government, rather than individual agencies to determine minimum pay.  Supervisor Wilson suggested the item be agendized for the Board’s upcoming retreat and Committee Members agreed.

  APRIL AGENDA ITEMS:

7. Authorize the Use of AQMD Logo on Asthma Vans Treating School Children with Asthma Pursuant to AQMD/BP ARCO Settlement Agreement: Allen Mednick, Principal, District Prosecutor, explained that staff is requesting the District logo be placed on four asthma vans, one in each county, which are funded as part of the proceeds from the BP settlement.  Motion by Yates, seconded by Carney, and unanimously approved.
    
8. Issue Purchase Orders Under U.S. EPA PAMS and National Air Toxics Trends Station Programs and Execute Contract Under U.S. EPA PAMS Program:  Chung Liu, DEO/Science & Technology Advancement, stated this item is postponed to the April 13, 2007 Administrative Committee meeting.
    
9. Request by Ultramar/Valero for Extension of Deadline for Completion of the ReVAP Project:  Mohsen Nazemi, Asst. DEO/Engineering & Compliance, explained that Ultramar/Valero (Ultramar) is requesting an extension for the deadline to complete operation of their ReVAP project which was one of the Environment Justice Program enhancements adopted by the Board in 2002.  Pursuant to this, AQMD and Ultramar entered into an MOU in 2003 to eliminate the use of more concentrated and volatile hydrogen fluoride (HF).  Ultramar is the only remaining refinery in AQMD which still uses concentrated HF in its alkylation unit to produce gasoline.  Therefore, the MOU was intended to eliminate the use of concentrated HF and replace it with a modified process which reduces the volatility of the HF.  However, delays to the final project completion have arisen which Ultramar says is beyond its reasonable control, such as unforeseen delays by a worldwide shortage of materials and labor needed to complete the ReVAP project.  Ultramar is requesting a 53-day extension during which the alkylation unit will be shut down and the remaining concentrated HF will be isolated in the storage tank, while the construction of the project is completed.  This request will change the final date of completion and operation of the ReVAP project from May 9 to July 1, 2007.  Mr. Yates asked if AQMD could, as a condition of approval of the extension, impose an automatic penalty or fee if the project completion is past July 1.  Mr. Nazemi explained that the MOU states that a penalty of $5,000 per day will be imposed if the project extends past the specific dates as listed in the original MOU unless is the delay is beyond Ultramar's reasonable control.  Dr. Wallerstein mentioned that staff was fully cognizant of the Committee’s requests and will ensure they are followed.  Jason Lee, Health, Safety, and Environmental Director/Ultramar, stated that Ultramar is doing everything possible to complete the project as soon as possible with the current status of completion being 79% completed.  Motion by Yates to approve the 53 days extension request by Ultramar, seconded by Carney, and unanimously approved.
    
10. Adopt Resolution to Implement Voluntary Employee Medicare Participation:  Ms. Tharp stated that, under the most recent labor agreement, the Board agreed to hold an election to allow those employees hired before 1986 who do not currently pay Medicare taxes to opt to participate inn the Medicare program.  Thirty-nine employees out of 197 eligible employees have elected to do so.  This action is to adopt the CALPERS-required resolution to implement Medicare participation for these 39 employees.  Motion by Yates, seconded by Carney, and unanimously approved.
     
11. Execute Contract for Janitorial Services at Diamond Bar Headquarters:  Ms. Tharp stated that a contract recommendation for janitorial services was made to the Committee in January, but later one of the bidders notified AQMD that his bid had been misinterpreted.  To be fair to all parties, all qualified bidders were asked to clarify, but not to change, their bids by submitting additional information.  Re-computation of panel scores has resulted in a recommendation to execute a contract with Priority Building Services.  To move to a fiscal year basis, staff recommends the contract be for a 3-year and 2-month period, through June 30, 2010.  The total cost would not exceed $977,436.  There was discussion regarding the City of Diamond Bar bearing its cost for janitorial services provided under the lease, and Committee Members recommended detailed review of lease terms if the lease is renewed in 2011 so the city pays its share of increased janitorial costs.  Motion by Yates, seconded by Carney, and unanimously approved.
     
12. Execute Contract for Workers' Compensation Claims Third-Party Administration:  Ms. Tharp stated that the current contract for third-party administration of workers' compensation claims expires at the end of April.  Staff recommends a fiscal-year based 3-year and 2-month contract with ACME Administrators, Inc., for a total amount not to exceed $180,145.  Motion by Yates, seconded by Carney, and unanimously approved.
     
13. Issue Purchase Order for CNG Passenger Vehicles for AQMD Fleet:  Ms. Tharp stated that this item is to use the competitive bid process conducted last November for purchasing vehicles for a special particulate monitoring project to purchase 27 additional dedicated CNG compact sedans from Honda of Thousand Oaks to replace high-mileage, high-maintenance cost fleet vehicles.  The cost is not to exceed $720,000, and funds have been included in the budget.  Motion by Yates, seconded by Carney, and unanimously approved.
     
14. Authorize Purchase of Maintenance and Support Services for Mini Computer Hardware/Software:  Chris Marlia, Asst. DEO/Information Management, stated this is a standard item for maintenance and support services for the purchase of mini computer hardware and software.  Hewlett Packard was the sole bidder to the RFP, and staff is requesting approval of this purchase.  (HP acquired Compaq and is now the sole provider of the software; however, HP does provide AQMD with discounts through cooperative government contracting agreements.)  Motion by Yates, seconded by Carney, and unanimously approved.
     
15. Amend Contracts to Provide Short- and Long-Term Systems Development, Maintenance and Support Services:  Mr. Marlia stated that this item is to add money appropriated last November by the Board to conduct permit streamlining tasks with BP settlement money.  This will also add task orders to upgrade PeopleSoft for AQMD’s financial and payroll activities; however, if task order details cannot be finalized in time, the funds will be removed from this Board item and a separate update contract will be initiated for subsequent Board action.  Ms. Carney questioned the dollar amount of the item, and Mr. Marlia explained that with rising costs over the years, the total amount would actually be higher if the task order bids were completed on a separate basis.  Motion by Yates, seconded by Carney, and unanimously approved.
     
16. Report of Local Government & Small Business Assistance Advisory Group Accomplishments for 2006 and Approve Goals and Objectives for 2007:  Pom Pom Ganguli, Asst. DEO/Public Affairs, stated that this item lists the accomplishments and significant items reviewed in 2006 and goals and objectives addressed for 2007.  Dr. Ganguli stated that the 27 items listed will be addressed in the incoming year.  Motion by Yates, seconded by Carney, and unanimously approved.
     
17. Ethnic Community Advisory Group Minutes for January 10, 2007:  Attached for information are the Ethnic Community Advisory Group minutes for the January 10, 2007 meeting.
     
18. Review April 6, 2007 Governing Board Agenda:  Elaine Chang, DEO/Planning, Rule Development & Area Sources, explained there is a possible controversial item for the public certification program, which is the first of its kind and patterned after the clean solvent certification program.  A 2007 AQMP control measure recognizes low-emitting consumer products used by institutional parties and is a voluntary program. 
    
    Ms. Carney asked if the item related to financial incentives for dry cleaners is not going to a Committee first, and Dr. Wallerstein answered that this issue will be taken up at the Stationary Source Committee.  He noted that the Coalition for Clean Air has requested that the District move its grant funding of $250,000 to wet cleaning and not fund the hydro carbon equipment.   
    
    Dr. Wallerstein stated that Rule 1309.1 is now being rescheduled for discussion at the Board Retreat where Board Members will recommend the time frame for this item to be discussed at a future Board meeting.  He also mentioned that the " Mobile" Board meeting on April 6 will be held in Riverside with a public comment period scheduled at 11:30 a.m. to discuss Rule 1309.1. 
    
    Ms. Carney requested several hundred copies of the charts related to PM2.5 exposure; current PM2.5 exceedance levels greatly impact individuals living in Riverside, and she intends to distribute the charts widely.
     
19. Other Business:  None.
     
20. Public Comment:  None.

Meeting adjourned at 9:46 a.m.

Attachment (DOC 51kb)
Ethnic Community Advisory Group Minutes for January 10, 2007