BOARD MEETING DATE: May 2, 2008
AGENDA NO. 24

RECOMMENDED ACTIONS:

Receive and file.
 

Dr. William A. Burke, Chair
Administrative Committee

Attendance: Chairman Dr. William Burke and Vice Chair Roy Wilson attended via videoconference. Present at AQMD were Committee Members Jane Carney and Dennis Yates. Committee Member Ronald Loveridge was absent. Board Member Joseph Lyou attended to provide comments on the first agenda item and then departed.

ACTION/DISCUSSION ITEMS:

1. Board Members’ Concerns: Dr. Joseph Lyou noted his support of Jane Carney’s recommended review and discussion of the structure and purpose of the Advisory Committees, and encouraged review of how the Advisory Committees are used, as well as their restructuring to make them more productive for the participants and the agency.

2. Chairman’s Report of Approved Travel: None.

3. Approval of Compensation for Board Member Assistant(s)/Consultant(s): The Committee approved the proposal for Nhung T. Truong, as Board Consultant to Mayor Cacciotti effective April 12, 2008.

Moved by Wilson; seconded by Carney; and unanimously approved.

4. Report of Approved Out-of-Country Travel: None.

5. Update on Activities of Westbound Communications: During the March Committee meeting, on the agenda item considering the renewal of the Westbound Communications contract, discussion touched upon Westbound’s media consulting role related to Proposed Rule 445 – Wood Burning Appliances, and in providing suggested strategies responsive to relatively minimal negative testimony on the proposed rule. As Westbound representatives were not present at the March meeting, Committee Members requested a representative to attend this meeting to provide further clarification of Westbounds’ specific activities on this matter. Scott Smith, President of Westbound Communications, presented such overview. He provided a narrative of evolving media coverage from when the control measure was proposed in June 2007 as part of the 2007 AQMP, through rule adoption in March 2008. He noted milestones of changing media tone, from negative to supportive. Mr. Smith advised that this is a public education rule at the beginning of its implementation phase, and will need to be effectively communicated via public service announcements, limited advertising, research, and constituency building as it moves forward. Mrs. Carney acknowledged the positive movement in conception and reporting of this rule, and reiterated her concern that a more proactive strategy should have been exercised to assist the Vice Chair in offsetting the predictable prominent media coverage received by the lone citizen complainant. Mr. Smith responded that the complainant provided a quotable soundbite for the media outlets in their effort to provide two-sided reporting. Dr. Wallerstein further mentioned that he and staff had already done many interviews before the hearing, with the reporters just waiting to gauge the testimony at the hearing. In addition, the press conference was held immediately following the hearing to allow an opportunity to respond to the press; Vice Chair Wilson also had talking points, and staff handled the Q&A in seeking to provide balance, as described. Nevertheless, the reporters are very clear that they intend to provide views on all sides expressed, as an obligation of the newspaper or broadcast entity. Dr. Wallerstein noted that the hearing was successful due in great part to the Committee efforts of Mayor Yates and Supervisor Antonovich and went more smoothly than anticipated. Mrs. Carney agreed and emphasized that any remarks for Board Member use after the hearing should be responsive to what happens at the hearing, rather than be written in advance, and Dr. Burke agreed. Supervisor Wilson noted that at the press conference itself, the media did not dwell on the opposition although the complainant was widely quoted thereafter. Mrs. Carney concluded by noting that in future the consultant’s advice should extend beyond remarks prepared in advance, and should include real-time responses based on testimony and what happens at the hearing.

6. Report on Various AQMD Advisory Groups: In introducing this item, Dr. Wallerstein reported that, in discussions with counterparts at other air quality agencies, it was evident that AQMD has the most extensive network of working groups and advisory groups of any agency of which he was aware. While this is a matter of agency pride and has worked to benefit AQMD policymaking and enabled more transparent decision making, it was a good idea that the groups be reviewed for optimal allocation of resources. Dr. Wallerstein initially noted that the Advisory Council has been virtually replaced by the various advisory groups, and that staff has thus discussed whether to pursue a change to state law to recognize the evolution and more modern structure of AQMD’s multi-advisory group structure; a future Legislative Committee item to that end may be pursued. Discussion followed on the range and functions of existing advisory groups. Dr. Wallerstein then requested the Committee advise which of the groups are recommended for proposed enhancement and evaluation at a subsequent Administrative Committee meeting. Chairman Burke inquired on the cost of supporting the 'meet-as-needed' advisory groups; and Dr. Wallerstein indicated that, although it is a significant effort in resources, it can pay worthwhile dividends. Member Carney suggested the Committee request input on this matter from the Home Rule Advisory Group (HRAG) and LG&SBA, as it is a significant commitment on the part of the participants. Mrs. Carney advised of her concerns that, 1) to be of value to the agency, the discussion topics have to be more focused and specifically addressed to the expertise of the participants for their input; and, 2) a better mechanism is needed for transmitting that advice from the advisory committee(s) to the Governing Board, perhaps even an advisory committee presentation on the Board agenda when a specific item comes before the Board. Mayor Yates commented that it should be the committee chair’s responsibility to report a summary of the advisory committee’s consensus position/recommendation in reporting to the Board. Mayor Yates also commented that the advisory committees do not currently reflect balanced geographic representation of the District, and encouraged Board Members to nominate appointments for several vacancies on the advisory committees. Mrs. Carney commented relative to the ECAG, that it would be impractical for the committee to mirror the wide variety of ethnicities in the Basin; therefore, the committee should rather focus on Environmental Justice (EJ) concerns and the communities that are significantly impacted from an EJ standpoint. Chairman Burke noted, then, that the committee’s title should change to the EJ Committee, to better represent the work of the committee. Dr. Wallerstein offered to bring back a proposal for Administrative Committee consideration, after review of such proposal by Chairman Burke; Chairman Burke agreed with this approach.

7. Discussion of Potential Establishment of a Health Effects Research Account Funded from Penalty Monies Received Due to Facility Non-Compliance: In response to the Committee’s March request for a proposal to fund health effects research and administration resources (for grants and programs funded out of penalty monies), Dr. Wallerstein provided the Committee with a review of the historical data for penalty and settlement revenue, the agency’s budgeted unreserved fund balance, and three-year budget forecast. Dr. Wallerstein recognized the Board’s desire to continue funding health effects research and the resulting forward movement of air quality policy at local, state and federal levels; and he reviewed the BP settlement funds co-administered by BP and AQMD, at $3 million per year for a ten-year period. The RFP to award third- and fourth-year funding has been released. Dr. Wallerstein then proposed to bring to the full Board a proposal to set aside $1.5 million to fund health effects research over the next 18 months, and work with BP representatives to set aside $1 million per year for health effects research for the remaining six years of the settlement agreement, for a total of $7.5 million over approximately seven and one-half years. A brief discussion followed relative to the advantages of tying the health effects funds to a percentage of settlement proceeds and fines, rather than in a set amount, as well as average settlement amounts and whether fines are set at an appropriate amount to provide an adequate deterrent to non-compliance. Mrs. Carney commented that a certain base fine/settlement level should be left in the budget to support the enforcement/prosecutor activities; she supported dedicating a certain percentage of extraordinary fines to health research, however. Chairman Burke explored whether it might be wise to expand the enforcement staff. Dr. Wallerstein suggested that further discussion on the budget, as well as proposals to fund health research, could be undertaken at the upcoming Board Retreat and budget adoption in May; and he committed to provide an analysis comparing research funding at $7.5 million over seven years with the proposal to fund the research at 25% of penalty/settlements, and the budgetary impacts of each proposal. In addition, staff offered to include the budgetary impacts of adding five inspectors, which the Board agreed would be considered at the April 17-18, 2008 Board Retreat.

8. Discussion Regarding Potential Issuance of an RFP for Outside Consultant for Management Succession Planning: Mayor Yates shared that his City Manager is tasked to plan for the promotion of staff to replace retiring staff, and he recommended that Dr. Wallerstein is well-qualified to undertake the District’s succession planning effort, which would be more cost-effective, as well. Dr. Wallerstein added that staff would appreciate an opportunity to more precisely evaluate its needs, then determine whether consultant services would be beneficial. Chairman Burke moved to continue this item, in anticipation of staff’s evaluation and recommendation. The item was accordingly seconded and continued.

MAY AGENDA ITEMS:

9. Adopt Executive Officer’s FY 2008-09 AQMD Budget and Work Program: The Committee Members waived the presentation and deferred discussion to the April 17-18, 2008 Board Retreat. Rick Pearce, Chief Financial Officer, requested the addition of a resolution amending the compensation for the Hearing Board Members to provide them the CPI increase afforded staff. Hearing no opposition, Dr. Burke deferred discussion to the Board Retreat.

10. Authorize Executive Officer to Contract with Carol Coy to Provide Expert Technical Services and Approve Findings Supporting Contract:
Dr. Wallerstein proposed a limited contract with Carol Coy, former DEO/Engineering and Compliance, to provide technical expertise in field enforcement, as well as RECLAIM and other trading proposals. The Health and Safety Code, section 40426.7, requires the Board to make certain findings before contracting with certain AQMD employees within 12 months following retirement.

Moved by Carney; seconded by Wilson; and unanimously approved.

11. Issue Purchase Orders for Dedicated-CNG Passenger Vans and Truck:
Eudora Tharp stated that at its January 4, 2008 meeting, the Board approved release of an RFQ for the purchase of six dedicated-CNG passenger vans and a truck. Since then, the lowest quote for vans allows the AQMD to purchase seven vans within the budgeted amount in an amount not to exceed $310,725. Chairman Burke inquired about the vendor’s compliance history, whereupon Dr. Wallerstein responded that there had been no recent complaints on the facility, and offered a summary of past community concern on this facility. In addition, Dr. Wallerstein advised that the referenced vendor subsequently worked with AQMD on alternative fuels and fleet vehicles, and has been a positive voice in trying to get taxi cab drivers to shift to natural gas vehicles.

 Moved by Burke; seconded by Carney; and unanimously approved.

12. Adopt Resolution Approving Charter of Deferred Compensation Plan Committee:
Mr. Pearce advised that AQMD sponsors an IRS-approved 457 deferred compensation program for its employees. State law governs the fiduciary requirement for the operation and investment of 457 plans sponsored by government entities. Staff requests the Board adopt a resolution approving the Deferred Compensation Charter formalizing the fiduciary duties and responsibilities of the Committee. Dr. Burke inquired whether this will result in additional cost to AQMD, to which Mr. Pearce replied that it is funded from revenues of the Plan provider, Hartford.

Moved by Carney; seconded by Wilson; and unanimously approved.

13. Report of RFPs and RFQs Scheduled for Release in May: Mr. Pearce provided the monthly report on RFPs and RFQs scheduled for release in May, of which there were two RFPs requiring special expertise: (1) Issue RFP to Hire Outside Counsel, and (2) Issue RFP for Systems Development, Maintenance and Support Services. Ms. Carney requested clarification on whether the RFP was for outside legal counsel for some specific area, rather than for employee-related matters or self insurance, which Mr. Pearce confirmed. Kurt Wiese, District Counsel, further clarified that the RFP’s emphasis is for environmental litigation, representation related to litigation related to rulemakings, and when groups challenge a permit issuance.

Moved by Wilson; seconded by Carney; and unanimously approved.

14. Amend Regulation III – Fees: The Committee Members waived the presentation, which will be made at the April 17-18, 2008 Board Retreat.

15. Adopt Proposed Rule 314 – Fees for Architectural Coatings: The Committee Members waived the presentation, which will be made at the April 17-18, 2008 Board Retreat.

16. Amend Contracts to Provide Short- and Long-Term Systems Development and Support Services: Chris Marlia advised that AQMD currently has contracts with several companies for short- and long-term systems development services, which are periodically amended to add budgeted funds as additional needs are defined. Mr. Marlia requested this additional $275,000 for required development and programming work needed throughout the year, which is included in this fiscal year’s budget. Chairman Burke inquired about his proposal on the creation and development of a database that would allow the AQMD to communicate with interested parties directly via automated e-mail, and he strongly encouraged staff to follow-through in moving into forward-thinking communication methods.

Moved by Wilson; seconded by Carney; and unanimously approved.

17. Ethnic Community Advisory Group Minutes for February 13, 2008: Attached for information is the Ethnic Community Advisory Group minutes for the February 13, 2008 meeting.

18. Local Government & Small Business Advisory Group Minutes of January 18, 2008 meeting: Attached for information is the Local Government & Small Business Advisory Group minutes for the January 18, 2008 meeting.

19. Review May 2, 2008 Governing Board Agenda: No comments.

20. Other Business: None.

21.  Public Comment: None.

Meeting adjourned at 10:18 a.m.
 

Attachments (exe 94 kb)
Ethnic Community Advisory Group Minutes for 02-13-08
Local Government & Small Business Assistance Advisory Group Minutes for 01-18-08