ORCAA Board of Directors
April, 2005 - MINUTES
OLYMPIC REGION CLEAN AIR AGENCY
2940 B LIMITED LANE NW
OLYMPIA WA 98502
April 13, 2005
Members present: Pat Hamilton, Pacific County (Chair)
Phil Johnson, Jefferson County
Mark Foutch City of Olympia
Ann Burgman, City of Lacey
Bob Beerbower, Grays Harbor County (Vice Chair)
Grant Munro, City of Port Angeles
Annette McGee, for Tim Sheldon, Mason County
Bob Macleod, Thurston County
Members absent: Mike Doherty, Clallam County
Legal Counsel: Fred Gentry, Bean & Gentry
Staff Present: Rich Stedman, Executive Director, Dan Nelson, Public Information Officer, Lynn Harding, and Debbie Moody, Recorder
The meeting was called to order at 10:00 a.m.
There was one addition to the Agenda; Executive Session (personnel) was added to New Business. Burgman moved approval of the revised Agenda. Johnson seconded the motion and it carried unanimously. Foutch moved approval of the Consent Agenda. Burgman seconded the motion and it carried unanimously.
DIRECTOR'S REPORT
NOC Public Hearings
Stedman wanted to let the Board know that we have two Notices of Construction that will be going to public hearing. Ocean Protein's hearing will be taking place at the city council chambers in Hoquiam, on April 28 at 6:00pm. The second hearing is for Port Angeles Hardwood and will be taking place at the county commissioner's board room on May 3 at 7:00pm. Stedman noted he would be presiding as hearings examiner, and Board members are welcome to attend.
Legislative Update
Stedman noted HB1397, vehicle emission standards, has been modified. Also, there had been a tag to extend the school bus retrofit program, however that has been deleted. What that means, Stedman explained, is the money will not be freed up for other uses in the near future.
Air Quality Update for March
Stedman explained the air quality update sheet. Stedman stated we have moved into a weather pattern with better ventilation. The worst month was back in December. We did have some issues out in Clallam County. A pilot had flown over and took pictures showing several burns that were up in the foothills. The smoke was clearly visible and definitely showed a pollution problem. Stedman stated we will be working with the DNR and the park services to see if we can get people to burn correctly and to consult the meteorological models to see if there will be an inversion.
Personnel Update
Stedman noted we have been interviewing for a new Secretary. We have also been recruiting for an Air Quality Specialist. Stedman also noted, John Kelly, one of our engineers, is out on medical leave. Kelly is doing well, Stedman stated, and we do expect to see him back at work in about a month's time. The Board wished John well and asked that staff let him know they are thinking about him.
Title V Audit
Stedman stated we are anticipating an audit from the State Auditor this next year. Recently our Title V program was audited as part of an annual review. Stedman stated there were no findings and things looked really good. Stedman thanked Mark Goodin, ORCAA's Professional Engineer, for his hard work in preparing us for the audit. We received a lot of compliments from the auditor. In particular, Stedman continued, we were told our permits are probably one of the easiest, if not the easiest, permits to read. We expect to get a written report soon from the auditor.
UNFINISHED BUSINESS
School Bus Retrofit Program Update
Dan Nelson, Public Information Officer, explained we have a little bit of money left over in the EPA account. This money had been used to assist the Aberdeen school district. We are investigating to see if EPA will allow us to use the money to install crank case filters on the buses that have already received the upgrades. This filter would provide additional decrease in emissions. We have a resolution on the agenda, to provide assistance to the Ocean Beach school district, to allow conversion to cleaner fuels. This will assist them in becoming a model district with regards to cleaner fuels.
Final Draft Strategic Plan
Stedman noted the final draft of the Plan is in each packet. This final draft has incorporated all comments received to date. Stedman wanted to make clear the plan is not a blueprint for how things will happen. It helps the agency anticipate change and provides for flexibility in responding to upcoming challenges. Stedman did state the plan includes anticipated growth in sources and efficiencies staff will be taking on. Stedman would like the Board to look over the final draft and let him know as soon as possible if there are any additional comments. Stedman stated we would like to get final approval during the May Board meeting.
NEW BUSINESS:
Credit Card Payments by ORCAA Customers
Stedman explained we take in quite a bit of cash and checks from contractors for permits (asbestos, demolition, and burning). We have been getting requests from contractors for the use of credit and debit cards. Staff has been looking into the use of credit/debit cards and we are finding it can be quite costly. Stedman stated he has talked to Thurston County and will be contacting the city of Olympia as well. We could raise fees to assist in recouping the additional costs, however there is also a lot of additional responsibility put on the agency if we accept credit cards. Munro asked how many payments might go to credit card. Stedman felt we could easily process over $40,000 in credit card payments. Burgman asked if any of our sources would use credit cards as well. Stedman stated they could, however we have already heard of sources paying their $50,000 annual fee on credit card and Stedman felt that was a huge liability for the agency.
The Board didn't have any additional suggestions however felt staff could continue researching the idea. Macleod agreed that increasing the fees was a reasonable thing to do to help offset the cost.
Letter of Support, Clean Vehicle Emissions Standards
Stedman drafted a letter in support of the Clean Vehicle Emission Standards (HB1397) that states the agency did vote to support the bill. McGee asked for clarification. This bill would only affect those vehicles starting with the 2009 models; the rest would be exempt, McGee questioned. Stedman stated that was correct. The operating cost for these vehicles is less, however, the cost of the vehicle may be a little more. The strategic plan for the nation is that we get off our dependence of oil by increasing the gas mileage; the operating expenses will go down and offset the increase in the price of the vehicles.
Foutch, noting he had already signed for the Board in support of the bill during the committee hearing, moved approval of the letter. Burgman seconded the motion and it carried unanimously.
Ostrom's Inc vs. ORCAA Update
Stedman stated Ostrom's is a mushroom composting facility located in Thurston County. This source, by nature, is an odorous source and recently they received significant penalties for causing nuisance odors to the community and also for expanding their facility without prior approval from our agency. They were looking at some large fines and decided to appeal to the PCHB. Their argument has to do with the right to farm and is a legitimate argument, however, Stedman continued, there are a couple of exclusions in the right to farm act.
If, Stedman stated, a farm sells off the buffer property around a farm it kicks it out of the right to farm act. Ostrom's sold part of the buffer property to the city of Lacey and Thurston County. Then, Stedman continued, it was also noted they don't just farm mushrooms; they are producing and selling compost to other farms. It is not a byproduct of their farming; they are actually producing and manufacturing it on site. Compost is not a farming product, which would exclude them from the act as well.
We did end up at the PCHB and PCHB upheld the right to farm argument Ostrom's presented. This is very unfortunate for us as we receive all the complaints and have to try to deal with the constituents. Stedman stated that Gentry has filed a motion for reconsideration and we are now waiting to hear back. Stedman noted that Gentry's brief is excellent and feels that the PCHB could reconsider. If the PCHB upholds their original position, we need to make a decision as to whether or not we want to challenge this ruling in Superior Court. Stedman noted we have not budgeted for this in the next fiscal year.
Stedman did state we have concerns with this issue. Ostrom's is located near a school and residential areas. In fact, Stedman noted, a new residential area is planned to be located very nearby in the future. Stedman noted he would keep the Board posted.
Gentry did state he was surprised by the determination made by PCHB. PCHB made their determination under the agricultural exemption in the Clean Air Act, Gentry noted, and never even reviewed the right to farm portion. Gentry stated we have filed reconsideration on their ruling of the dismissal and if we prevail we would move onto a full hearing before the PCHB.
Resolution 235 – Financial Assistance to Ocean Beach Biodiesel Project
Stedman explained this resolution would allow us to financially assist the Ocean Beach School District. We would provide funds that will allow them to use ultra low sulfur biodiesel in their buses. We would give them a one-time $5,000 grant, from the school bus retrofit fund, to offset the cost of changing over the fuel.
Burgman moved approval of Resolution 235. Beerbower seconded the motion and it carried unanimously.
Resolution 236 – Financial Assistance to Puget Sound Marine Emissions Inventory
Stedman was asked to sit on this steering committee and contribute $5,000 (which will come out of the school bus fund) to look at emissions from mobile sources, including marine traffic. The overall project cost is about $500,000. Our contribution is just a small portion. Each member of the committee will be assisting in the funding of the project. We will get a report from this project. Foutch asked who this committee was. Stedman noted the list of members is on the back of the Resolution.
Foutch moved approval of Resolution 236. Munro seconded the motion and it carried unanimously.
Draft FY 2006 Budget
Stedman stated he met with the finance committee this morning to go over the preliminary draft budget for the agency. The budget is still being fine-tuned, there will be an increase in expenditures of about $130,000, however, we are not imposing an increase in fees at this time.
We are making up the difference by spending down the reserves, as directed by the Board in previous years. We will be drawing down the reserves by approximately $300,000. Stedman stated once he incorporates the comments and fine-tunes the budget, we would mail out copies to the Board. Stedman stated we have the public hearing scheduled for the May meeting.
Election of new officers
Hamilton called for nominations for new officers. Burgman nominated Beerbower for Chair. Beerbower asked if the Board would consider Hamilton to continue on as Chair for another year. Hamilton stated she would be willing if that was the Board's pleasure. Burgman withdrew her nomination. Macleod motioned to nominate Hamilton for chair, Burgman seconded and it carried unanimously.
Burgman motioned to nominate Beerbower and Munro as Vice Chair and Secretary, respectfully. The motion was seconded by Foutch and carried unanimously.
Executive Session
The Executive Session, regarding personnel issues, began at 10:40 a.m.
The Executive Session ended at 10:52 a.m. by unanimous consent.
Hamilton noted that no action would be taken at this time, with regards to the Executive Session.
Prior to adjournment, Munro asked to add Shake and Shingle Mills to the Agenda. Munro explained he had spoken with a "leader" of the mills up in the Forks area and it seems they are making progress. Munro noted he was aware they had shut one burner down and are hauling the waste to a grinder for a boiler as well. However, Munro continued, it appears they are having difficulties with the timeline and it seems they will not be able to shut down by the deadline. Is there any room to allow later shutdowns, Munro questioned. Stedman explained we would probably have to take enforcement action on sources that are not shut down by the deadline. Having said that, Stedman continued, we would most likely assess the penalty with conditions stating the penalty amount would be used toward the cost of shutting down. Of course, Stedman noted, it would all be looked at on a case-by-case basis. What we don't want to have happen is EPA coming in and overfiling on these sources. As long as there is progress toward an end, Stedman stated, we would be willing to work with them.
The meeting adjourned at 10:56 am.
PRESENTED BY:
Richard A. Stedman, Executive Director
APPROVED BY:
The Majority of the Board
APPROVED and SIGNED this 11th day of May 2005