BOARD MEETING DATE: December 7, 2007
AGENDA NO. 21

REPORT:

Administrative Committee

SYNOPSIS:

The Administrative Committee met on Friday, November 9, 2007, and reviewed the proposed agenda for the December 7, 2007 Board meeting. The Committee also discussed various issues detailed in the Committee report. The next Administrative Committee meeting is scheduled for Friday, December 14, 2007, at 9:00 a.m. in Conference Room CC-8.

RECOMMENDED ACTION:

Receive and file.

Supervisor Roy Wilson, Vice Chair
Administrative Committee

Attendance: Present at AQMD were Jane Carney and Dennis Yates. Vice Chair Roy Wilson attended by videoconference. Dr. Burke was not present due to a conflict with the Coastal Commission meeting.

ACTION/DISCUSSION ITEMS:

1. Board Members’ Concerns: None.
    
2. Chairman’s Report of Approved Travel: Dr. Wallerstein stated that Supervisor Wilson attended the California Fuel Cell Partnership Steering Team meeting in Sacramento, CA on October 22-24, 2007.
    
3. Report of Approved Out-of-Country Travel: None.
    
4. Issue RFP for Technical Assistance on Advanced, Low- and Zero-Emission Technologies and Implementation Activities: Dr. Chung Liu, DEO/Technology Advancement Office, explained that staff is requesting an RFP be released to secure outside expertise to assist in the administration of the Carl Moyer Program, as well as to assist staff in the Technology Advancement Office. Dr. Wallerstein added that staff needs to move quickly on the Proposition 1B funding and obtaining technical assistance to make sure AQMD is responsive to CARB in a timely manner on the solicitations, as well as moving projects through expeditiously.
   
   Ms. Carney asked whether staff really needs expertise in each of these topics mentioned in the proposal. Dr. Liu responded that in the past three to four years, AQMD has hired five to six individuals and technical consulting firms for their expertise and has hired two to three firms for the Moyer Program for similar assistance. Moved by Yates; seconded by Carney; unanimously approved.
    
5. Report on AQMD’s Employee Retirement Plan: Rick Pearce, Chief Financial Officer, explained that this report covered the current and historic investment earnings of the San Bernardino County Employees’ Retirement Association (SBCERA) and the impacts those earnings have on the funding status of the retirement system. In addition to investment earnings, the report also covered AQMD employee demographics (salary, age, and years of service) which also contribute to the funding status of the system. The AQMD’s workforce is older (49% over age 50), has longer years of service (29% over 20 years) and higher average salaries than the general pool of active employees in the retirement system. These AQMD employee demographics have increased the AQMD employer contribution rates to the system and have added to AQMD’s unfunded liability to the system. Mr. Pearce reported the steps the Governing Board has taken to mitigate retirement rate increases, such as: issuing Pension Obligation Bonds in 1995 and 2004, negotiating lower retirement pick-ups for employees and pre-paying a portion of our unfunded liability with one-time money. Mr. Pearce concluded with the 2007 funding status of the system which is 93.1%. He stated that based on the 2006 Public Retirement System Survey conducted by the California Research Bureau, AQMD’s plan remains strong financially when compared to other California public agencies.
   
   Ms. Carney asked how much of the liability is unfunded and how much is owed on the bond. Mr. Pearce answered that $80 million was issued to pay down 1/3 of the principle 1995 bond, and staff is currently working on the 2004 20-year bonds, which will mature in 2021 and 2023. She inquired if some of the obligations under the bonds were prepaid because the building bonds were only paid from the settlement windfall received. Mr. Pearce answered that the settlement money was used to pay $10 million for AQMD’s unfunded liability, but not for the pension obligation bonds.
   
   Ms. Carney was concerned about AQMD employees receiving their pension when they retire, and that she would rather see the funding at 100%. Mr. Pearce reassured the Committee that AQMD is 93.1% funded, our current rates are stabilized, and our Board has taken positive action to minimize rate increases and has taken advantage of pension bonds to lower our interest costs.

DECEMBER AGENDA ITEMS:

6. Execute Sole Source Contract for Municipal Outreach: Anupom Ganguli, Asst. DEO/Public Affairs, stated that staff would like to execute a sole-source contract for municipal outreach with the firm of Joe Gonsalves & Sons being recommended. In 2008, AQMD will have a number of rules and programs coming up for implementation of the AQMP, i.e., BARCT rule, diesel emission reduction rules, air toxic plan and AB 2766 moneys spent on emission reductions. Dr. Ganguli continued that CARB is in the process of revising their guidelines for AB 2766 and AQMD needs to ensure the implementation is conducted correctly.
   
   Dr. Wallerstein explained that the Board has expressed concerns over the years about the AB 2766 expenditures, specifically how to reach out to local government and spending dollars on cost-effective emission reduction projects. AQMD has had a very positive experience with Joe Gonsalves & Sons last year since they represent multiple governments agencies and cities. They would augment AQMD staff to ensure the measure occurs in the AQMP beginning in January 2008. Also, staff has contracted with another contractor who conducts educational sessions for Legislators and elected officials, who would augment staff in a multi-pronged approach.
   
   Mayor Yates requested that staff make a brief presentation to SANBAG on AB 2766 to increase their awareness and educate them on how to use the funds.
   
   Dr. Wallerstein stated that staff will return, assuming this item is approved, to present the actual workplan using the consultant’s expertise with AB 2766 as it is one of the toughest measures to implement out of the AQMP.
   
   Ms. Carney asked the status of CARB’s new proposed uses of AB2766, and Elaine Chang, DEO/Planning, Rule Development & Area Sources, answered that they are convening a working group in the middle of 2008 with local government participation to tackle the guidelines. Ms. Carney stated that they would approve this item only as it pertains to AB 2766, and that it should correspond with the suggested uses that CARB will be implementing.
   
   Dr. Wallerstein mentioned that our staff is heavily committed already with other upcoming rules to coordinate this effort. Ms. Carney suggested the contract should be provided once CARB completes the guidelines. Dr. Wallerstein stated that staff does not know CARB’s timeline to prepare the AB 2766 guidelines as CARB is currently focusing on AB 32 (Climate Change). Moved by Yates; seconded by Carney, and unanimously approved.
    
7. Establish Lists of Prequalified Vendors to Provide Mailing Services and Fleet Vehicle Mechanical Repair and Service: Moved by Yates; seconded by Carney, and unanimously approved.
    
8. Execute Contract to Replace Child Care Center Roof: Moved by Yates; seconded by Carney, and unanimously approved.
   
9. Authorize Purchase of Desktop Operating System and Office Suite Upgrades: Chris Marlia, Asst. DEO/Information Management, stated that staff is requesting approval to purchase the licenses to replace the operating system and office suite package software on staff’s desktop computers. The last purchase was made in February 2001 which will expire this year. After going through the procurement process, the lowest-priced vendor is being recommended for approval for an amount not to exceed $433,630 for both packages. Moved by Carney; seconded by Yates, and unanimously approved.
   
10. Appropriate Funds from General Fund, Undesignated Fund Balance, to Information Management's FY 2007-08 Budget for Systems Development Work: Mr. Marlia explained that staff would like to bring the AB 32 software program in-house to capture emissions and provide it on a web-based basis. Dr. Wallerstein added that staff is trying to convert all of our programs to web-based software. Moved by Carney; seconded by Yates, and unanimously approved.
    
11. Amend Contracts to Provide Short- and Long-Term Systems Development, Maintenance and Support Services: Mr. Marlia explained that this item is to add funding to Information Management’s budget in order to outsource contracts for software development. He continued that some of the companies listed on the chart were pre-approved two years ago with a two one-year extension with some contracts in their second year. Staff allows the contractors to bid for specific task orders. Ms. Carney asked if the funding shown on the chart is the total provided this year. Mr. Marlia answered that the funding is for the life of the contract.
    
    Dr. Wallerstein further clarified that staff adds the task orders for the most qualified vendors to perform the task, but for other tasks the vendors competitively bid for the task. When the funds for a specific contract are low, Mr. Marlia requests additional funding from the Governing Board.
    
    Ms. Carney wanted reassurance that staff continues to use the competitive bid process because large amounts of money have been expensed on customizing the system. Moved by Carney; seconded by Yates, and unanimously approved.
    
12. Ethnic Advisory Group Minutes from September 12, 2007 meeting: Attached for information are the Ethnic Advisory Group minutes for the September 12, 2007 meeting.
     
13. Local Government & Small Business Advisory Group Minutes of September 21, 2007 meeting: Attached for information are the Local Government & Small Business Advisory Group minutes for the September 21, 2007 meeting.
     
14. Review December 7, 2007 Governing Board Agenda: Dr. Wallerstein stated that the December meeting has a short agenda, but staff will make a presentation related to the 2007 wildfires regarding AQMD’s responsiveness to the public’s needs, and enhancing particulate monitoring capabilities. Borrowing from the Board’s concept on MATES III on outfitting containers and placing them into neighborhoods, Dr. Liu has been requested to determine the best type of particulate reading equipment available that is capable of providing instantaneous particulate levels. Also, staff will be recommending to the Board to approve negotiated agreements with governmental entities, i.e., fire department, to determine sites where this equipment may be placed to provide the public with particulate levels which will advise them whether outdoor activities should be cancelled. Dr. Wallerstein continued that the approval for the purchase of this equipment is crucial in order to enhance AQMD’s website to better advise the public.
    
    Dr. Wallerstein added that following the Board meeting a Study Session related to Climate Change has been scheduled to discuss the issue of how air pollution control will be changed by CARB, CEC and PUC’s actions, and how the changes will interact with AQMD as it relates to Title V permits and controlling CO2 emissions from motor vehicles. A discussion regarding federal legislation will also be raised, as well as Board policy decisions related to these revised regulations.
    
15. Other Business: None.

ACTION/DISCUSSION ITEMS:

16. Approval of Compensation for Board Member Assistant(s) and/or Board Consultant(s): Dr. Wallerstein stated that Dr. Lyou is requesting approval for Julie Masters as his Board Consultant. She is an attorney, but has no clients at this time. Moved by Carney; seconded by Yates; unanimously approved.
     
17. Public Comment: None.

Meeting adjourned at 10:08 a.m.

Attachments (EXE 90kb)
– Ethnic Community Advisory Group Minutes for September 12, 2007
– Local Government & Small Business Assistance Advisory Group Minutes for September 21,
  2007