ORCAA Board of Directors
March, 2006 - MINUTES
OLYMPIC REGION CLEAN AIR AGENCY
2940 B LIMITED LANE NW
OLYMPIA WA 98502
March 8, 2006
Members present: Pat Hamilton, Pacific County (Chair)
Bob Beerbower, Grays Harbor County (Vice Chair)
Ann Burgman, City of Lacey
Mike Doherty, Clallam County
Mark Foutch City of Olympia
Bob Macleod, Thurston County
Members absent: Lynda Ring Erickson, Mason County
Phil Johnson, Jefferson County
Grant Munro, City of Port Angeles
Legal Counsel: Fred Gentry, Bean & Gentry
Staff Present: Richard Stedman, Mark Goodin, Lynn Harding, and Debbie Moody, Recorder
The meeting was called to order at 10:10 am.
There were no additions or omissions to the Agenda. Burgman moved approval of the Agenda. Foutch seconded the motion. The motion carried unanimously. Foutch moved approval of the Consent Agenda. Burgman seconded the motion and it carried unanimously.
DIRECTOR'S REPORT
Stedman thanked Mark Goodin, Professional Engineer, for filling in for him during the last Board meeting.
Personnel Update
Stedman introduced our newest team member, Kathy Embody. She is our new secretary, coming to us with about 15 years of clerical/administrative work. Most recently with the Jefferson County Sheriff. The Board welcomed Kathy.
Compliance Update
Stedman stated the compliance section is working on finding new sources. What we are finding is there are still quite a few sources out there that have never registered with the agency. Most all of the facilities will likely have to go through the Notice of Construction process, which will likely cause a bit of a log jam for the engineers.
ORCAA Permit Actions
Goodin noted the NSR Summary report in the packets. Goodin explained the summary shows we have finalized four cases since the last meeting. Amtech's AOP renewal was finalized and we won't have to worry too much about them for another five years. Amtech's renewal incorporates new federal requirements for facilities that use resin. Goodin wanted to remind the Board of Lakeside Industries, Durgin Road project. We will be holding a public hearing March 20, in Lacey at the Council Chambers. Goodin did note this is a controversial case and we do expect several people from the valley to show up. Goodin stated that staff's preliminary determination is to recommend approval of the plant. Goodin explained that we have come upon some issues with regards to how the plant was sited, some conflicts in Lakesides proposed permit, and what Thurston County has approved. We are hoping to resolve those issue prior to the hearing. Stedman added that he believes it could be a contentious meeting knowing how unhappy the citizens of the area are. Stedman noted Board members are welcome to attend.
Air Quality Summary
Stedman stated the Board members have copies of the latest AQ Summary in their packets. There were no "unhealthy for sensitive group" dates, however, Port Angeles did have some higher numbers of particulate matter.
State Audit Results
In the packets, Stedman explained, there are copies of the State Audit results. There are two booklets, one is the financial statement and the second one is the accountability report. Stedman stated there were no major issues.
DRS Audit Results
Stedman explained we also received our DRS Audit results. This was the first time in the history of the agency that we were audited by DRS. There were no findings.
Hamilton stated staff should be commended.
National Air Quality Conference Presentations
Stedman had Dan Nelson briefly go over the presentation he gave in San Antonio at the National Air Quality Conference.
Nelson quickly went through his power point presentation. Nelson stated his presentation had to do with the Ocean Protein case we worked on. Basically, Nelson noted, I went over how our agency dealt with the source and the complainants. A major success for us was the great communication staff had not only with each other, but with the source and complainants as well. We responded to ever complaint. This was a huge effort for staff, but it made things run tremendously better than they would have with regards to the complainants.
The Board asked if OP had paid their fines. Stedman noted that they counter offered to pay us $20,000 toward their fines. Stedman stated we have a mediation planned at PCHB in March.
Stedman did note that OP has submitted another Notice of Construction to modify their existing facility. Hamilton stated it should be contingent on a promise of no odors. Stedman stated they said it wouldn't cause an odor last time. We do feel the modification will help substantially. Foutch asked what the city is doing about the business. Stedman stated he has heard both sides, the city wants the business, but that didn't stop one of the city council members from protesting loudly when we allowed the initial permit to go through. The city did start the process to shut them down, however, they are now working above and beyond to keep the facility running.
The city has allowed OP to divert some of their waste stream to the paper mill down the street. The paper mill has huge retention ponds for treating their waste. We looked into that as well, and the paper mill has applied for their permits to accept the wastewater. Between the new treatment technology and the wastewater being diverted to the paper mill, we are pretty sure they can operate affectively. It all comes down to their (OP) willingness to do so. They had fish to process and went forward with little regard for the consequences.
Stedman showed a power point presentation on our Cheeka Peak Site. Stedman explained the reason for his presentation was to convince EPA to continue funding. Stedman noted we have several partners, including the Makah Nation, University of Washington's Dan Jaffe, and Department of Ecology.
Stedman noted that we get the same amount of money for our site as a site located in downtown Seattle. We have a five-hour drive to get to our site and it is a nationally recognized site. Stedman added that he did meet with several administrators while in San Antonio, and they did agree to pony up an additional $98,000 to our agency for new instrumentation. The U of W will be pulling out of that site in about a year and we'll be taking it over. The site will be automated and we have a contract for a computer system that will be placed up there that will send the information to us directly.
UNFINISHED BUSINESS
Legislative Update
Stedman stated there was good news and bad news. The good news, Stedman continued, is a number of promising bills passed this year. The renewable fuel legislation passed, as well as the tax credit legislation that gives tax credits to truck stops that install electrification.
The bad news, Stedman stated, is our bill. It didn't pass and it is very disappointing. We did everything we could. Stedman noted that Robin Hunt submitted comments on behalf of the State Treasurers Association in opposition to the bill. Macleod asked if it got stuck in committee again. Stedman explained it went through committee. Stedman noted that he specifically asked Senator Honeyford if there was any language we could add to our bill that would make him support it. Senator Honeyford stated nothing would change his mind, as he just didn't like air agencies. In the Water Energy and Environment Committee, Senator Honeyford proposed an amendment to the bill stating any authority that disperses its own funds must require the Board's Financial Officer, who must be a person other than the Executive Director, to submit a monthly certified statement to the Board. Stedman noted this amendment made it into the bill without our knowledge. The problem with the amendment, Stedman stated, is the ED is identified as implementing all provision of Chapter 70.94 RCW. In addition, it talks about a Board's Financial Officer. The section that names officers for the Board notes it must be a member of the Board, not an employee or anyone else for that matter. It would have made one of the members here responsible for submitting certified financial reports. The intent, Stedman explained, was probably to have someone like our Administrative Services Manager submit the reports. We did give Gary Alexander alternate language that referenced RCW Chapter 42, which provides a regulatory framework for authorities and agencies to process their own warrants. Stedman stated he felt this would address Honeyford's issue. Basically, the bill died in the Senate. Stedman noted he was also disappointed in that he great difficulty getting in touch with Gary Alexander during the session to discuss the bill's status. One other thing, Stedman stated, this bill, with the amendment, would not have been supported by any of the air agencies that are already doing their own warrants.
Stedman added that it was odd because Hunt had contacted Harding several times to set up meetings to transition over to our new financial system in anticipation of the bill passing.
It was noted we might need to change our strategy. Doherty suggested a bi-partisan bill. There was some discussion.
Hamilton asked if the original problem with Thurston County, bills being paid late, has been resolved. Stedman stated it has not been resolved. Stedman did note that we do not pay late charges. Harding contacts vendors and explains why we are late and requests them to waive it. She has been very successful in this approach. Harding added that is only one issue we have. The other issue, she continued, is the time involved in processing. Time could be saved and time could be used more efficiently, Harding noted.
There was some further discussion. Hamilton stressed the importance of meeting with the Auditor and Treasurer and make sure they are more responsive to our needs. There was no action required of the Board.
Stedman noted one other bill that did not pass was with regards to the outdoor burning ban. The bill was extending the start date of the ban from 2007 to 2012, which was then amended to 2008. Originally the ban was supposed to take affect in 2000 and it was pushed to 2007. Staff is currently working on outreach programs for the 17 affected areas.
FY06-07 Budget
Stedman stated we have begun work on the FY07 budget. Stedman noted there was a per capita sheet in their packet showing our current assessment 37 cents and a proposed assessment of 39 cents. Stedman stated he would like to work this amount into our budget, noting we are still on the lower end of the scale with respect to other agencies. Hamilton asked if this is what we truly need, or is staff being too conservative. In other words, Hamilton continued, if you need to raise it you might as well ask for what you truly need. Stedman stated we would like to go higher, but this has never been a significant portion of our budget and with respect for our counties and cities who don't have a revenue stream coming in to help cover this fee.
Stedman went on to explain that the new budget will show better, where the money for expenditures comes from. In other words, a lot of money from assessments goes toward outdoor burning complaints. If at the end of the budget cycle, we can't cover our costs with this money, we may have to come to the Board and explain we can no longer afford to deal with outdoor burning.
Hamilton stated she still felt that if staff is going to go for an increase and upset someone, you might as well get a bigger bang for your annoyance. Foutch agreed that would be a good way to go if the agency needs the money. Stedman stated he is working on the budget and will keep the Board posted. He did add that we are expecting a reduction in our federal 105 grant funds, due to Hurricane Katrina and the war effort. The grant has remained steady over the past couple of decades, Stedman stated; there has been no increase. In the same time period we have seen cost increases and a bigger demand on staff to perform additional tasks.
Stedman stated he would try to get a draft budget to the Board at the next meeting.
CCS Lease
Stedman sent a draft lease to CCS. Currently they are paying $13 per square foot and the draft shows an increase to $14 per square foot. We did have an analysis done prior to drafting the new lease. The lease is for a 3-year commitment. There was no action required of the Board.
School Bus Retrofit Update
Stedman pointed out the travel mugs on the table before the Board members. These mugs, Stedman explained, will be going out to the school bus drivers. The message we are promoting is to turn off the engines while they bus drivers are waiting for the kids at the schools. Another thought, Stedman continued, is to have the mugs available at coffee kiosks around our jurisdiction. When the lines are long at coffee kiosks, we want to remind people to turn off their engines while they are waiting.
Resolution 241 – Tacoma Rail Agreement
Stedman stated this resolution would allow us to use some of the diesel retrofit monies to assist the Tacoma Rail in the purchase of converters for their diesel engines. The engines stop in East Olympia and impact neighbors and a nearby school. Tacoma Rail will be spending $200,000 total on the project. Puget Sound Clean Air Agency is contributing $50,000 toward the project. Department of Ecology has agreed to send $30,000 to us to help us match PSCAA's money. This resolution will allow us to spend $20,000 and to accept $30,000 from DOE for this project.
Burgman moved approval of Resolution 241. Macleod seconded the motion.
Doherty asked if spending this money was within the scope of the legislation. Stedman stated it was, in fact, we have monies available for public fleets. Grays Harbor will be using some of the funds for their public fleets, as well as the Jefferson Transit Authority. We are currently reviewing city of Olympia's application for retrofitting city diesel sources such as garbage trucks and fleet vehicles. We will bring that proposal to the Board at a later date.
After some discussion the motion carried unanimously.
NEW BUSINESS:
EPA Contract Increase for Cheeka Peak
This item was discussed during the National Air Quality Conference Presentation. This item will affect us next fiscal year, Stedman noted, so we will address this in more detail during the budget process.
EXECUTIVE SESSION:
The Board adjourned at 11:00am to Executive Session to discuss the Executive Director's Evaluation. The Board reconvened at 11:27am. There was no action at this time.
Prior to adjournment, Macleod suggested we set up a meeting with the Treasurer's and Auditor's office. Macleod stated he would work on getting everyone together.
The meeting adjourned at 11:35 am.
PRESENTED BY:
Richard Stedman, Executive Director
APPROVED BY:
The Majority of the Board
APPROVED and SIGNED this 12 th day of April 2006