BOARD MEETING DATE: September 7, 2007
AGENDA NO. 29

REPORT:

Administrative Committee

SYNOPSIS:

The Administrative Committee met on Friday, July 20, 2007, and reviewed the proposed agenda for the September 7, 2007 Board meeting. The Committee also discussed various issues detailed in the Committee report. The next Administrative Committee meeting is scheduled on Friday, September 14, 2007 at 9:00 a.m. in Conference Room CC-8.

RECOMMENDED ACTION:

Receive and file.

Dr. William A. Burke, Chair
Administrative Committee

Attendance: Present at AQMD were Ronald Loveridge and Dennis Yates. Chair William A. Burke and Vice Chair Roy Wilson attended by videoconference. Jane Carney attended via teleconference.

ACTION/DISCUSSION ITEMS:

1. Board Members’ Concerns: None.
    
2. Chairman’s Report of Approved Travel: Dr. Wallerstein stated that Tonia Reyes Uranga attended the AQ Institute Briefing scheduled with Congressional members in Washington, DC on June 24-26 and will be attending and participating on a panel related to the State Implementation Plan at the CCEEB's 2007 Summer Issues Seminar held in Squaw Valley on July 24-25; and Dr. Joseph Lyou will be testifying on behalf of AQMD related to the off-road engine rulemaking at the CARB Board meeting scheduled on July 26 in Sacramento, CA.
3. Approval of Compensation for Board Member Assistant(s): None.
    
4. Report of Approved Out-of-Country Travel: None.
    
5. Update on CARB Proposed Off-Road Engine Regulation and Potential Funding Assistance: Dr. Wallerstein explained that due to the CARB hearing scheduled next week related to the off-road engine regulation and the enhancements regarding mobile source strategies placed in the 2007 AQMP, this item was added to the agenda. He continued that staff has been in discussion with CARB staff to close the SIP gap between what AQMD's Board has approved and what CARB staff is proposing as it is related to the construction industry. Dr. Wallerstein mentioned that CARB staff’s proposal would be a benchmark applied to the state where South Coast and San Joaquin would have options to have additional emission reduction. Resources to expedite the clean-up of engines including an additional 13 tons per day of emission reductions from off-road engines can come from Carl Moyer type funding sources, which provide about $58 million a year, along with the monies approved by voters for air quality funding under Proposition 1B. The state legislature will also likely allocate $200 million for future years to CARB for heavy-duty trucks, switcher locomotives and cargo handling equipment clean up. Other possible funding sources for engine clean up would include tariffs received from the Ports’ Clean Air Action Plan of $30 per container, $7.5 million in the federal budget for diesel cleanup. Staff recommended that $120 million ($30 million a year for four years) be set aside from Carl Moyer funds to achieve the enhancement portion of the state off-road regulation.

Mayor Yates asked how equipment going through the state would be tracked and Mayor Loveridge answered that equipment will be monitored using GPS tracking systems. Dr. Wallerstein added that GPS systems are funded through the Carl Moyer Program, but the fleet operators would have to submit a compliance plan on how they will meet CARB's fleet requirements and the enhancement component. Mayor Yates asked what the process would be if equipment was too old to retrofit, and Henry Hogo, Asst. DEO/Technology Advancement Office, answered that funds from the Carl Moyer Program may be requested to replace these engines.

Dr. Wallerstein mentioned that the advantages for the construction industry to make these changes would be to use green equipment with engines that are more fuel efficient. Mayor Loveridge fully endorsed staff's concept and requested this plan move forward. Moved by Wilson; seconded by Yates; and unanimously approved.

6. Discussion of Employee Retirement Award: Dr. Wallerstein explained that the crystal dove currently being presented by the Board to retiring employees is no longer available. Eudora Tharp, Asst. DEO/Administrative & Human Resources, showed a new crystal award engraved with AQMD's logo which has received peer approval. Mayor Loveridge asked what the history of the dove was, and Dr. Wallerstein explained that when AQMD was formed, the bird logo was established. For retirement awards, we were able to purchase doves on an attractive driftwood base. When those became unavailable, staff located the current dove as a replacement. Mayor Loveridge asked staff members present what their thoughts were on the new award, and the response was positive. Dr. Burke asked what the cost would be for a larger size, and Ms. Tharp answered that the cost of the current crystal dove award is about $160 and the new award costs about $200. Dr. Burke approved the concept, but noted that it should be possible to obtain the same award at a lower cost. The Committee members present approved this item unanimously.

SEPTEMBER AGENDA ITEMS:

7. Adopt Resolution Amending Records Retention Schedule: Kurt Wiese, District Council, stated that staff is requesting approval to revise the current records retention schedule to further reduce the paper located off-site. The revisions being made entail changing the length of time documents will be retained or adding new category of documents. Moved by Yates; seconded by Wilson, and unanimously approved.
    
8. Audit Report of AB 2766 Fee Revenue Recipients for FYs Ending June 30, 2004 and 2005, and Set Public Hearing October 7, 2007 Regarding Final Resolution of Unresolved Audit Findings and Recommendations: . Rick Pearce, Chief Financial Officer, explained that the agency has completed the audit of AB 2766 moneys with no findings on AQMD and MSRC portions, where 65 cities were included in the audit with 72 findings and only 6 findings remain to be resolved by the end of this month. Mayor Loveridge requested further explanation on how AB 2766 works relative to how the money is being utilized. Mr. Pearce stated that this item is normally discussed in the March or April time frame, where the Transportation Unit brings to the Board a resource guide and their report on efficacy of the AB 2766 program. Elaine Chang, DEO/Planning, Rule Development and Area Sources, mentioned that the annual report is agendized for the July 27 Mobile Source Committee meeting.

Mayor Yates mentioned that his biggest concern is whether the funds are in fact being utilized appropriately. Mayor Loveridge suggested requesting elected officials to sign off on the AB 2766 reports. Mr. Pearce stated that letters were sent to cities previously explaining how this program works and the importance of it, but the response is unknown.

9. Report of RFPs and RFQs Scheduled for Release in September: Mr. Pearce stated that the following RFP/Qs—Purchase Desktop Operating System and Office Suite Upgrades; Purchase Server Operating System Upgrades; Automated Gas Chromatograph with Time of Flight Mass Spectrometry System; Automated Gas Chromatograph/Flame Ionization Detector/Mass Spectrometer System; and Chemical Release, Odor & Emergency Response Level Total Sulfur Analyzer--are being requested for approval. Moved by Yates; seconded by Loveridge, and unanimously approved.
    
10. Approve Appropriation of Funds Designated for Permit Streamlining to AQMD's FY 2007-08 Budget: Mohsen Nazemi, Asst. DEO/Engineering & Compliance, stated that on November 3, 2006 the Board approved a designation in the amount of $2 million to fund permit streamlining measures based on suggestions received from the business community. Of this appropriation, $650,000 was designated for temporary services and contracts. Staff immediately began implementation of the permit streamlining recommendations and has used $420,000 of the $650,000 in FY 2006-07. There is $230,000 remaining and staff is requesting approval to appropriate and use the remaining $230,000 in FY 2007-08 to continue with temporary services and contracts for Permit Streamlining. Mayor Yates asked whether staff has ever categorized the various permits handled by AQMD. Mr. Nazemi answered that staff has created various categories of permits. For example, there is a Certification/Registration program for equipment that the manufacturer obtains a certification and then end users can obtain a permit from AQMD within a week or so. For certain off-the-shelf type equipment, there is also a Streamlined Standard Permit, where the applicant upon filing the application will be provided with a copy of a draft permit and applicable conditions and if they agree to them the permit can be processed within a week or two. AQMD also has a filing program where certain types of equipment do not need to have a permit prior to construction and the operator just has to complete a filing form. Permits for other non-major sources are typically processed within 60 days after the applications are deemed complete. However, permits for major sources (Title V sources) or any other source which has to undergo public notice or EPA review require extra scrutiny and additional time and we try to process those within 180 days after the applications are deemed completed. Any permits that go beyond those time frames are considered as part of our permit backlog. Mayor Yates requested staff to categorize permits into different types with specific timeframes so the businesses and Board Members can better understand how long it should take on the average to process different types of permits and to provide Board Members with a status update every six months or so on the progress on meeting those timeframes. Mr. Nazemi stated that at the July 13, 2007 Board meeting, staff presented a report to the Board which showed that due to the improved efficiencies in permitting and the streamlining efforts, AQMD's inventory of applications pending permits has been reduced from over 20,000 applications in early 1990 to approximately 7,000 at present, a reduction of about 70% despite having 40% less permitting staff and handling more complex programs such as RECLAIM, Title V, toxics and public notices. Moved by Loveridge; seconded by Yates; and unanimously approved.
     
11. Add and Delete Positions in FY 2007-08 Budget and Appropriate Funding for Insurance Tracking Software: Ms. Tharp stated that TAO's Carl Moyer Program and—specifically the fleet modernization program—provides funding for vehicle replacement under 3-15 year contracts that require vehicles to be insured and for AQMD as lien holder to be named as co-insured. A significant risk exposure is created for the agency if requirements are not met. Given the large volume of contracts, staff proposes to centralize insurance certificate responsibility under the Risk Manager and to add an Office Assistant and to purchase an automated tracking system that would scan certificates and generate automatic letters to contracts with deficient coverage.

The second action would be to exchange a vacant Information Systems Specialist position for a Systems & Programming Supervisor position to address the systems development workload associated with permit streamlining, PeopleSoft, and migration to new computers. The total cost of these actions is approximately $156,763, about half of which would be covered by the Moyer Program. Dr. Burke asked what duties the Information Systems Specialist performed, and Ms. Tharp answered the individual provided staff training on various computer programs, but that, since newly hired employees are typically quite proficient in working with computer software, there is now less need for employee training. Moved by Loveridge; seconded by Yates, and unanimously approved.

12. Appropriate Funds for Headquarters Refurbishment and Issue RFPs to Re-roof Childcare Center and Seal and Re-stripe Parking Lots: Ms. Tharp stated the Board appropriated funds for several building projects that could not be completed before the end of the fiscal year and that this action is to re-appropriate $845,000 that was previously approved and to augment the appropriation by an additional $60,000 to cover costs for re-roofing the childcare center and refurbishing elevator cars. Funds would be appropriated from the special designation set aside for building refurbishment projects and work would be competitively bid. This action is also to reissue RFPs to re-roof the childcare center and to seal and re-stripe parking lots. Moved by Yates; seconded by Wilson, and unanimously approved.
     
13. Ethnic Community Advisory Group Minutes for May 9, 2007: Attached for information are the Ethnic Community Advisory Group minutes for the May 9, 2007 meeting.
    
14. Local Government & Small Business Assistance Advisory Group Minutes for May 18, 2007: Attached for information are the Local Government & Small Business Assistance Advisory Group Minutes for May 18, 2007.
     
15. Review September 7, 2007 Governing Board Agenda: Dr. Wallerstein stated that three public hearings are scheduled – the major one is related to report on the RECLAIM program dealing with compliance, enforcement, and reporting of credit prices.
     
16. Other Business: None.
     
17. Public Comment: None.

Meeting adjourned at 9:49 a.m.

Attachments (exe 92kb)
– Ethnic Community Advisory Group Minutes for May 9, 2007
– Local Government & Small Business Assistance Advisory group Minutes for May 18, 2007