BOARD MEETING DATE: January 4, 2008
AGENDA NO. 5

PROPOSAL:

Amend Contract with Ecotek, MST Solutions, Inc. for Privatization of Portions of Annual Emissions Reporting Program

SYNOPSIS:

In January 2006, the Board approved a contract with Ecotek, MST Solutions, Inc. for continuation of privatization of portions of the Annual Emissions Reporting (AER) Program. Ecotek has developed, maintained, and updated the emissions reporting software, produced and distributed reporting materials (forms and instructions); provided public outreach and assistance; collected and compiled reported data; and conducted data quality control. Based on Ecotek’s responsiveness and satisfactory performance, this action recommends exercising the third of three one-year renewal options in Ecotek’s contract for an amount not to exceed $365,000.

COMMITTEE:

Administrative, December 14, 2007, Recommended for Approval

RECOMMENDED ACTION:

1. Approve the transfer of $125,000 from the Air Toxics “Hot Spots” Fund to the General Fund.
2. Recognize $125,000 of revenue in the General Fund and appropriate $125,000 from the Undesignated Fund Balance to the Planning, Rule Development, and Area Source Professional and Special Services Account.
3. Authorize the Executive Officer to amend the existing contract with Ecotek, MST Solutions, Inc. in an amount not to exceed $365,000 to exercise the third-year renewal option for privatization of portions of the 2007-2008 Annual Emissions Reporting Program.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Under AQMD’s Annual Emissions Reporting (AER) Program, approximately 2,700 facilities report their emissions annually and pay emission fees in accordance with Rule 301(e) requirements. Portions of the AER program have been privatized for the past twelve years. Beginning with the year 2000-2001 reporting cycle, the AER program has also incorporated the toxic emissions reporting requirements of the Air Toxics “Hot Spots” (AB 2588) Program. The portions of the AER program that have been privatized include: 1) revision of emission and fee reporting forms and instructions, 2) providing software and paper reporting options, 3) preparing and distributing emission reporting packages, 4) providing public outreach and assistance in filing the annual emission reports, 5) receiving the reports and compilation of emission and fee data files,
6) conducting data quality control, and 7) transferring data files to the AQMD for inclusion in the AQMD’s central database. Actual collection of annual emissions fees, billing adjustments, and auditing the reported data continue to be handled by AQMD staff.

During the last twelve years, Ecotek, MST Solutions, Inc. has successfully performed the required tasks. The reporting software is utilized by more than 90% of all facilities reporting. The reporting software has greatly reduced reporting errors and improved data quality. In addition, Ecotek has utilized and developed software and data base systems to support the software reporting system (i.e., data-entry software for entering, managing, and checking reported data as well as export utilities to generate databases for AQMD use). Ecotek has also suggested and incorporated improvements to the program every year based on lessons learned from the previous year, provided excellent customer service for the reporting facilities, and maintained a good working relationship with AQMD staff.

In January 2005, the Board awarded a contract to Ecotek for continuation of privatization of portions of the 2004-2005 AER Program. Under this contract, AQMD reserves the right to renew the contract for three additional one-year periods. This action authorizes the Executive Officer to exercise the third of three one-year renewal options.

Proposal

Based on Ecotek's experience, satisfactory performance, and responsiveness to program needs, staff recommends that the Board authorize exercising the third of three possible one-year renewal options for Ecotek’s contract.

Funding of up to $240,000 has been budgeted for privatization of portions of the 2007-2008 AER Program in the FY 2007-08 Budget. The balance of the funding ($125,000) will be transferred from the Air Toxics “Hot Spots” Fund to the Planning, Rule Development, and Area Sources Professional and Special Service Account. The $125,000 funding for AB 2588 facilities is proportional to the magnitude of the toxic emissions data reported by these facilities.

Resource Impacts

The funding required for this contract has been budgeted for FY 2007-08.