BOARD MEETING DATE: January 4, 2008
AGENDA NO. 16

REPORT:

Administrative Committee

SYNOPSIS:

The Administrative Committee met on Friday, December 14, 2007, and reviewed the proposed agenda for the January 4, 2008 Board meeting. The Committee also discussed various issues detailed in the Committee report. The next Administrative Committee meeting is scheduled for Friday, January 11, 2008, 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, and Ronald Loveridge was not present due to his attendance at the ribbon cutting ceremony for the newly completed 60/91/215 freeways.

ACTION/DISCUSSION ITEMS:

1. Board Members’ Concerns: Ms. Carney expressed concern that certain advisory groups were not well attended by Board Members and suggested that either the meetings should be held less frequently or Board Members should be reassigned. Dr. Wallerstein stated that in January, with the incoming 13^th Board Member, Dr. Burke will be reassigning Board Members to various Committees. Ms. Carney also expressed concern that the videoconference equipment has not been working well during Committee meetings and requested that staff evaluate the requirements and compatibility at all sites and report back to this Committee in January.
    
2. Chairman’s Report of Approved Travel: Dr. Wallerstein stated that Councilmember Reyes Uranga testified at the California Transportation Commission’s Sacramento hearing related to the Prop.1B $2 billion in Infrastructure funding (Transportation Corridor Improvement Fund) on November 27; and she has requested to attend the NHA Annual Hydrogen Conference in Sacramento on March 30-April 4, 2008.
    
3. Approval of Compensation for Board Member Assistant(s)/Consultant(s): None.
    
4. Report of Approved Out-of-Country Travel: Dr. Wallerstein reported to the Committee that Elaine Chang, DEO/Planning, Rule Development, and Area Sources, has been invited to travel to Hong Kong on January 19-23, 2008, to participate as a keynote speaker at the Productivity Council regarding air quality policy. This council is a quasi-governmental agency which has requested AQMD’s advice in air quality policy matters. The organization will pay for her accommodations and airfare.

JANUARY AGENDA ITEMS:

5. Audit for FY Ending June 30, 2007: Rick Pearce, Chief Financial Officer, stated that this item transmits the annual audit for AQMD for the period ending June 30, 2007. Mr. Pearce introduced Michael De Castro, a Principal with Thompson, Cobb & Basilio & Associates in charge of the firm’s West Coast operations, who reported that the following reports were completed providing AQMD with an ‘unqualified’ opinion on its financial statements: (1) An ‘unqualified’ opinion has been given with no significant audit adjustments necessary. (2) The report on internal controls over financial reporting and compliance with applicable laws and regulations found no instances of noncompliance, as well as no weaknesses to report in the internal control material. Mr. De Castro explained that an assessment is made prior to making findings by obtaining an understanding of the internal controls, requesting management to complete a questionnaire, discussing the result of the questionnaire with management, and testing the transactions related to the internal controls and operating environment. (3) Programs with over $300,000 in expenditures are selected in a fiscal year. There were three major federal programs required to be audited in more detail in terms of being in compliance with grant agreements with no noncompliance to be reported with those contracts and grants. (4) A report on audit observations and recommendations is made to management with no audit observations necessary. He stated that based on following up on last year’s reported item on asset management corrections, the Finance Unit has implemented monthly reconciliation of asset outlays and has addressed the issue as recommended. Mayor Yates congratulated Mr. Pearce and his staff for this highest level report. Ms. Carney asked whether funds received from state or federal sources are also audited, and Mr. Pearce answered that subvention funds are included in the General Fund and are part of the financial audit. Carl Moyer and AB 2766 funds are held in separate funds and are subject to separate independent audits. Dr. Wallerstein added that AQMD’s programs (Carl Moyer, school bus programs, etc.) have been audited by 8 separate audits by CARB, a joint audit committee of the Legislature, and the state Department of Finance. Ms. Carney requested to have a list of the various state sources of funding AQMD receives prior to the next audit to determine the type of audits being done by whom. Mr. Yates asked who audits MSRC funds, and Mr. Pearce answered that a separate auditor, Simpson & Simpson, conducted last year’s audit. AB 2766 audits are conducted every two years on the overall use of AB 2766 funds (cities and counties and MSRC). Dr. Wallerstein stated that prior to the next audit, an audit plan will be in place to ensure the significant amount of money to be received from Prop 1B, approximately $500 million, is rigorously accounted for. Moved by Carney; seconded by Yates; and unanimously approved.
    
6. Execute Contract for Deferred Compensation Plan Consultant Services: Mr. Pearce stated that an RFP was released in October to hire a deferred compensation consultant service to assist with the administration of AQMD’s deferred compensation plan. There were 11 RFPs sent out with five bids received from major firms. Staff is recommending a contract be executed with Benefit Funding Services Group for an amount of $30,000 paid for by Hartford to ensure AQMD is in compliance with state law and the Employee Retirement Income Security Act (ERISA). Moved by Carney; seconded by Yates; and unanimously approved.
    
7. Report of RFPs and RFQs Scheduled for Release in January: Mr. Pearce stated that two RFQs are being released – Purchase of Dedicated-CNG Passenger Vans and Truck; and Procure Meteorological Sensors for Photochemical Assessment Monitoring Stations (PAMS). Moved by Yates; seconded by Carney; and unanimously approved.
    
8. Amend Contract with Ecotek, MST Solutions, Inc. for Privatization of Portions of Annual Emissions Reporting Program: Elaine Chang, DEO/Planning, Rule Development & Area Sources, stated that staff is requesting to exercise a contract extension with Ecoteck, MST Solutions, Inc. to assist with annual emission reporting. The contractor has been on board for over ten years and has done an excellent job. Currently 90% of facilities are filing their reports electronically, which has reduced reporting errors and improved data quality. With the amendment of this contract, Ecotek will transition the reporting system into web-based filing. Moved by Yates, seconded by Carney, and unanimously approved.
    
9. Amend Contract with Development of 2007 SIP White Paper: Dr. Chang explained staff is requesting to amend the existing contract with Polakovic & Partners to assist with the implementation of the white paper with the three agencies (AQMD, CARB, and SCAG) as part of the 2007 SIP agreement. This will be a “vision paper” to be used for future strategies for not only the black box for future ambient air quality standards, but also to explore potential strategies for identifying the additional reductions needed to meet the 8-hour ozone standard. Dr. Chang stated that the white paper will be ready for release in February 2008, and that the additional contract amount of $33,000 will be used for the layout and design of an easy-to-read document for the public and elected officials to take actions. This action also calls for the Board to recognize funds in the amount of $45,000 received from CARB and SCAG to co-fund the development of the white paper. Ms. Carney asked whether the white paper will go to our Board, and Dr. Chang answered all three Boards will receive it. Moved by Carney, seconded by Yates, and unanimously approved.
    
10. Amend Contract for Legislative Representation in Washington, D.C.: Anupom Ganguli, Asst. DEO/Public Affairs, stated that the Legislative Committee approved the amendment of the existing contract with Bartlett, Bendall & Kadesh, LLC to Kadesh & Associates for continued representation in Washington, DC in 2008. Staff is recommending an extension of the contract for $215,000 for Kadesh & Associates to assist in work assigned by the Board. Dr. Ganguli added that this recommendation is based on the Board’s direction to carefully evaluate their performance this year. Dr. Wallerstein added that last year two firms were selected for representing AQMD, and Mark Kadesh is the preferred firm, therefore, this sole contract is recommended. Moved by Yates, seconded by Carney, and unanimously approved.
     
11. Report on Major Projects for Information Management Scheduled to Start During Last Six Months of FY 2007-08: Chris Marlia, Asst. DEO/Information Management, stated that this is a standard item that is brought to the Committee twice a year, in July and January, of the major projects to be initiated by Information Management. Committee received and filed report.
     
12. Ethnic Advisory Group Minutes for October 10, 2007 meeting: Attached for information are the Ethnic Advisory Group minutes for the October 10, 2007 meeting.
     
13. Local Government & Small Business Advisory Group Minutes of October 19, 2007 meeting: Attached for information are the Local Government & Small Business Advisory Group minutes for the October 19, 2007 meeting.
     
14. Review January 4, 2008 Governing Board Agenda: Dr. Wallerstein announced that Dr. Burke would like to recognize two Board Members who each have 20 years of service on the Board; staff will make a presentation related to the release of the MATES III Study at the January 4, 2008 Board meeting, which may garner a lot of public attention; and a public hearing is scheduled for Rule 1110.2 (Internal Combustion Engine) where staff is close to resolving issues raised by the Sanitation and Water Districts related to biogas and some flexibilities with emission limits for new distributed generations being proposed.
    
    Supervisor Wilson asked if the Board Workshop regarding Climate Change will be rescheduled soon, and Dr. Wallerstein answered that per Dr. Burke’s request this item will be presented at the April 17-18, 2008 Board Retreat to be held in Newport Beach.
     
15. Other Business: Mayor Yates asked whether the fleet rules apply to street sweeping vehicles in municipalities, and Dr. Chang answered in the affirmative, upon replacement of the vehicle. Dr. Wallerstein suggested staff review the rule to clarify potential non-compliance situations relative to fleet compliance.
     
16. Public Comment: None.

Meeting adjourned at 9:47 a.m.

Attachments  (EXE 88.5kb)

– Ethnic Community Advisory Group Minutes for October 10, 2007
– Local Government & Small Business Assistance Advisory Group Minutes for
  October 19, 2007