OLYMPIC REGION CLEAN AIR AGENCY
2940 B Limited Lane NW
Olympia, Washington 98502
BOARD OF DIRECTORS MEETING
June 14, 2006
Members present: Bob Beerbower, Grays Harbor County (Chair)
Mike Doherty, Clallam County
Ann Burgman, City of Lacey
Bob Macleod, Thurston County (Secretary)
Phil Johnson, Jefferson County
Grant Munro, City of Port Angeles (Vice Chair)
Mark Foutch, City of Olympia
Members absent: Pat Hamilton, Pacific County
Lynda Ring Erickson, Mason County
Legal Counsel: Cece Clynch, in for Fred Gentry, Bean & Gentry
Staff Present: Richard Stedman, Executive Director; Dan Nelson, Public Information Officer; Mark Goodin, Professional Engineer; Robert Moody, Compliance Supervisor; Lynn Harding, Administrative Services Manager; and Debbie Moody, Recorder
The meeting was called to order at 10:03 am.
There were no additions or omissions to the Agenda. Burgman moved approval of the Agenda. Johnson seconded the motion. The motion carried unanimously. Burgman moved approval of the Consent Agenda. Foutch seconded the motion and it carried unanimously.
PUBLIC HEARING
ORCAA Fiscal Year 2007 Budget
The public hearing was opened at 10:05 am.
Stedman pointed out the ORCAA Budget publication in the packets. Stedman thanked Dan, Debbie and Lynn for assisting in getting the document together. Stedman also noted the photo on the cover was from Dan.
Stedman stated this document also serves as our annual report, featuring our future goals and objectives of each section of the agency.
Stedman highlighted the budget. Our projected total expenditures will be approximately $2 million. We are proposing an increase in the per capita assessment from 37 and half cents up to 45 cents. Also included in this $2 million is about $300,000 that is pass-through monies associated with the diesel retrofit grant. Stedman added we have also proposed a 2.6% COLA for staff, along with a salary increase for a few staff positions. This increase for the positions came about after a review of a salary study by one of the other local air agencies. Stedman explained how these increases would be met, noting we will be spending down some of our surplus, and we had a virtual layoff by way of an inspector that had yet to be hired. Stedman noted we are okay at this point with regards to our surplus, however, looking forward to fiscal year 2008; we will need to look at increasing fees (Registration, NSR, etc).
Macleod asked about the per capita increase. He noted it is about a 25% increase. Macleod requested more information. Stedman explained that a board member suggested the increase at a previous meeting. The other side of that, Stedman continued, is we have maintained the assessment at the 35 and half cents for approximately 10 years. During that time we have seen an increase in the cost of doing business by about 35%. Stedman noted we also looked at what other local air agencies charge.
Stedman briefly went through the revenue portion of the budget. Stedman did point out we would be supplementing our budget with approximately $220,000 from our surplus. Stedman then went over the expenditure portion of the budget.
Stedman stated ORCAA continues to be fiscally conservative and we have a great staff to do it with. We will be looking at some innovative approaches to funding. We are looking at trust accounts to get donations from the public and industry that we don't regulate. Stedman asked if there were any questions.
Foutch questioned whether we budgeted enough for gasoline. Stedman noted we are currently under spending on our gasoline budget, having an office up in Port Angeles has saved us quite a bit of money in that area. Also, having 2 hybrid vehicles has helped. We will be purchasing another hybrid this coming fiscal year.
Foutch asked if we could take our open burn issue to the legislature and request some sort of funding. Stedman stated we could, however, there is nothing stopping us from charging fees for burning. However, we have worked very hard with Thurston county fire departments, specifically not having a fee, in order to gain compliance. They have a voluntary registration system for burn permits. The intent of the legislature is to outlaw all burning, but we could look into some sort of fee system. Administering a full outdoor permitting program is costly. Burgman agreed with Foutch, that maybe we should go to the legislature about this issue. Stedman noted the land clearing burn permits will be raised to $125 this year; however, we have to wait until we can get a regulation change.
Munro noted ORCAA does run a pretty tight ship and that pleases him. Munro stated, looking at the salaries, he is surprised, pleasantly surprised that you have as talented of staff as you do. Munro explained, compared to industry and even in Port Angeles, your salaries are much lower, yet you have very talented staff. 0000
0000
Stedman added we have been looking at other uses for the diesel retrofit monies as well. The grant is supposed to sunset in 2008, so we have been stretching to fund projects. We have figured out a way to loosen up the funding and have been able to get funding to other programs other than school buses. There is work at the state and local level to try to free up more of that money for other uses. At the next legislative session, the push is to keep this funding indefinitely and identified as secured funding source. Hopefully, that money will then be freed up for other air pollution issues.
Macleod asked Stedman what the diesel money would be used for if freed up? Stedman stated he would like to see it directed towards the general fund. We could use it to assist industry for retrofits, maybe on a loan program. We have to be careful of ‘giving' state money to private industry. Macleod asked if we could use it for shore power for truck stops. Stedman stated there are monies available for municipal-owned truck stops.
There were no comments from the public. The public hearing was closed at 10:35 am.
Burgman moved approval of the FY07 budget. Foutch seconded the motion. The motion carried by a majority of the Board (6:1 Clallam County).
DIRECTOR'S REPORT
Compliance Update
Robert Moody, Compliance Supervisor, explained Ocean Protein is back in action. We have received a total of 250 complaints in the past month; about half of them are due to Ocean Protein. They have stated they have fixed things, so we will be watching them pretty close. We heard they are expecting a large supply of fish tomorrow when the season opens.
Another odor source, Peninsula Topsoil in Belfair, has made the news. A report from citizens, over the weekend, stated strong obnoxious odors. The fire department responded and confirmed odors that seemed chemical-like. The fire personnel were physically ill upon return to the station. They called out the narcotics task force and SWAT teams, and the police raided the neighborhood with search warrants. They finally decided the odors were coming from Peninsula Topsoil, although they haven't proved it.
R. Moody added that we do have a hearing schedule for the next meeting. The hearing will be for the re-organization of our Regulation 1. He noted there are no actual changes to the rules it is strictly a re-organization.
R. Moody pointed out a map in the packets. This map, he noted, shows all active land clearing burns that have been permitted. With the large amount of burns permitted, we have had very little complaints associated with them. The Board was surprised at how many burns we have permitted (roughly 1800) since the onset of the program. Foutch felt it would be a good to get a summary of the entire level of effort this has been since the program was dumped on us.
R. Moody stated staff has met with the counties involved in the 2007 burn ban. The next step will be to meet with the cities and fire districts that will be impacted. Thanks go to Dan Nelson, R. Moody continued, for creating a draft of the signage that will be posted in the no burn areas. R. Moody reminded the Board that the areas that will be involved in the 2007 burn ban include unincorporated urban growth areas. For instance, Sekiu, Clallam Bay, and Joyce up in Clallam County would not be allowed to burn after 2007.
ORCAA Permit Actions
Mark Goodin, Professional Engineer, noted Interfor, an existing mill in Port Angeles is planning an expansion. With this expansion, Goodin noted, they will become a major source. Goodin stated we have received their application and it is just now being reviewed.
Another permit is for Nippon, another existing major source. We are currently working on renewing their AOP. We have issued a draft permit and it is currently in the public comment period. We have only received on comment at this point in time. The person requested a public hearing on the permit. Munro stated there was a nasty letter to the editor in this morning's paper. Goodin noted he has been talking with Nippon's permitting person. There have been some negotiations with regards to permit conditions and it has been fairly cooperative, however there has been give and take on both sides. There have been some conditions that we feel need to stay in the permit that they are not very happy about. Goodin did state we need to decide whether or not one comment is grounds to hold a full-blown public hearing.
Goodin stated the appeal deadline for Lakeside Industries, on Durgin Road, has ended. We have not seen any appeals so we are pretty sure it is a done deal. The can begin constructing the plant once they receive natural gas in the area, which is pending SEPA approval.
What is not on the list, Goodin continued, is a company called Imperium Renewables. This is a company that has proposed to construct a biodiesel plant in Grays Harbor County. It is possible they will be an AOP source.
Director's Vacation
Stedman explained he has been offered a unique opportunity to sail back, as crew, on a boat from Hawaii. Stedman noted he would be leaving first or second week in July and be gone for approximately 3 weeks. The Board wished him a good vacation.
School Bus Retrofit Update
Dan Nelson, Public Information Officer, stated the Tacoma Public Utilities Board met and approved their acceptance of the proposal for the retrofit of the four locomotives. We will be providing $50,000 ($30,000 from DOE), PSCAA will be providing $50,000 and Tacoma Utility will match us with $100,000. We are moving ahead trying to put together a public event. We are hoping to get the Governor to come for a ribbon cutting ceremony. Most likely we will have to have the event in Tacoma once the technology has been installed.
Ocean Protein Update
Doherty asked the status of the fines for OP. Stedman stated the settlement was that we would receive $250,000 (over a 5 month period), we would suspend $250,000 and they would use $250,000 toward improvements at the plant. Their first payment is due July 1 ($50,000). We are currently looking at the settlement as we feel they may have violated the agreement. They installed non-approved pollution control equipment. Basically, they retrofitted the equipment to get it to work. It puts us in a difficult situation because, if it actually works, we don't really want to hit them hard on administrative issues. We will be looking into the process. Stedman noted it doesn't appear they are able to control the smells very well. We are worried as the season is beginning and OP has a lot of contracts to accept the waste. OP did promise the public they would shut down if there were an odor, however, it takes a couple of days to shut down, as they have to process everything in the line.
If they continue to have violations, we will be heading to court to enforce the injunction from last year. We just have to convince the judge that it is a big enough nuisance and they should be shut down.
Stedman did add we will be coming to the Board later, with a proposal to increase our maximum penalty amount. Currently it is $10,000 per day per violation. Most other agencies have increased this amount to $14,000.
Macleod asked if it were possible to get some kind of indemnity bond when they secure their permit. Stedman stated he was not aware of any such thing, but he would look into it.
Personnel Policies and Procedures Update
Stedman stated we have got a revised copy of the manual back from the attorney. We will be reviewing them and get copies to the Board as soon as possible. 0000
Climate Change Summit
Stedman explained Mike Kreidler, Insurance Commissioner, is holding a Climate Change Summit June 13. Stedman stated he would be attending the meeting. There is a lot of movement right now and it appears the insurance industry is going to be taking a lead on climate change issues. As the differences in temperatures in the ocean, and the energy balance in the atmosphere, in order to maintain that we have to have really powerful storms, such as Katrina. The insurers are concerned about global climate change and ramifications. Stedman stated he would report back to the Board at the August meeting.
UNFINISHED BUSINESS:
Meeting with Auditor/Treasurer
Stedman thanked Mark Foutch for coordinating the meeting. The upshot of the meeting is we will be trying again to get the law passed. It was the opinion of both the Treasurer and Auditor that there is no way to institute any kind of agreement or arrangement that would be compliant within in the law. Our hopes are to have Senator Fraser to carry the bill forward this time around. We have proposed the language changes that are amenable by all parties.
Foutch did state he felt the motivation of the senator in Yakima is that not all small agencies are as well staffed as ORCAA and some other local agencies. Without writing some additional accountability in the law to cover for the potential inadequacies, is worrisome. However, the very act of adding the controls into the law would require some of the smaller agencies to hire additional staff, which they can't afford to do. In some cases, it might imply taking away statutory authority from the executive director.
Regulation re-organization (hearing scheduled for July)
Stedman wanted to let the Board know that we would be having a hearing in July. Stedman explained we are just reorganizing the layout of the regulations so it is structured so all fees are contained in one section. The reorganization of the regulations should make it easier to located rules. It will be more user-friendly. We do not expect any controversy on this matter.
The meeting adjourned at 11:15 am.
PRESENTED BY:
Richard A. Stedman, Executive Director
APPROVED BY:
The Majority of the Board
APPROVED and SIGNED this 12th day of July 2006
2940 B Limited Lane NW
Olympia, Washington 98502
BOARD OF DIRECTORS MEETING
June 14, 2006
Members present: Bob Beerbower, Grays Harbor County (Chair)
Mike Doherty, Clallam County
Ann Burgman, City of Lacey
Bob Macleod, Thurston County (Secretary)
Phil Johnson, Jefferson County
Grant Munro, City of Port Angeles (Vice Chair)
Mark Foutch, City of Olympia
Members absent: Pat Hamilton, Pacific County
Lynda Ring Erickson, Mason County
Legal Counsel: Cece Clynch, in for Fred Gentry, Bean & Gentry
Staff Present: Richard Stedman, Executive Director; Dan Nelson, Public Information Officer; Mark Goodin, Professional Engineer; Robert Moody, Compliance Supervisor; Lynn Harding, Administrative Services Manager; and Debbie Moody, Recorder
The meeting was called to order at 10:03 am.
There were no additions or omissions to the Agenda. Burgman moved approval of the Agenda. Johnson seconded the motion. The motion carried unanimously. Burgman moved approval of the Consent Agenda. Foutch seconded the motion and it carried unanimously.
PUBLIC HEARING
ORCAA Fiscal Year 2007 Budget
The public hearing was opened at 10:05 am.
Stedman pointed out the ORCAA Budget publication in the packets. Stedman thanked Dan, Debbie and Lynn for assisting in getting the document together. Stedman also noted the photo on the cover was from Dan.
Stedman stated this document also serves as our annual report, featuring our future goals and objectives of each section of the agency.
Stedman highlighted the budget. Our projected total expenditures will be approximately $2 million. We are proposing an increase in the per capita assessment from 37 and half cents up to 45 cents. Also included in this $2 million is about $300,000 that is pass-through monies associated with the diesel retrofit grant. Stedman added we have also proposed a 2.6% COLA for staff, along with a salary increase for a few staff positions. This increase for the positions came about after a review of a salary study by one of the other local air agencies. Stedman explained how these increases would be met, noting we will be spending down some of our surplus, and we had a virtual layoff by way of an inspector that had yet to be hired. Stedman noted we are okay at this point with regards to our surplus, however, looking forward to fiscal year 2008; we will need to look at increasing fees (Registration, NSR, etc).
Macleod asked about the per capita increase. He noted it is about a 25% increase. Macleod requested more information. Stedman explained that a board member suggested the increase at a previous meeting. The other side of that, Stedman continued, is we have maintained the assessment at the 35 and half cents for approximately 10 years. During that time we have seen an increase in the cost of doing business by about 35%. Stedman noted we also looked at what other local air agencies charge.
Stedman briefly went through the revenue portion of the budget. Stedman did point out we would be supplementing our budget with approximately $220,000 from our surplus. Stedman then went over the expenditure portion of the budget.
Stedman stated ORCAA continues to be fiscally conservative and we have a great staff to do it with. We will be looking at some innovative approaches to funding. We are looking at trust accounts to get donations from the public and industry that we don't regulate. Stedman asked if there were any questions.
Foutch questioned whether we budgeted enough for gasoline. Stedman noted we are currently under spending on our gasoline budget, having an office up in Port Angeles has saved us quite a bit of money in that area. Also, having 2 hybrid vehicles has helped. We will be purchasing another hybrid this coming fiscal year.
Foutch asked if we could take our open burn issue to the legislature and request some sort of funding. Stedman stated we could, however, there is nothing stopping us from charging fees for burning. However, we have worked very hard with Thurston county fire departments, specifically not having a fee, in order to gain compliance. They have a voluntary registration system for burn permits. The intent of the legislature is to outlaw all burning, but we could look into some sort of fee system. Administering a full outdoor permitting program is costly. Burgman agreed with Foutch, that maybe we should go to the legislature about this issue. Stedman noted the land clearing burn permits will be raised to $125 this year; however, we have to wait until we can get a regulation change.
Munro noted ORCAA does run a pretty tight ship and that pleases him. Munro stated, looking at the salaries, he is surprised, pleasantly surprised that you have as talented of staff as you do. Munro explained, compared to industry and even in Port Angeles, your salaries are much lower, yet you have very talented staff. 0000 0000 Stedman added we have been looking at other uses for the diesel retrofit monies as well. The grant is supposed to sunset in 2008, so we have been stretching to fund projects. We have figured out a way to loosen up the funding and have been able to get funding to other programs other than school buses. There is work at the state and local level to try to free up more of that money for other uses. At the next legislative session, the push is to keep this funding indefinitely and identified as secured funding source. Hopefully, that money will then be freed up for other air pollution issues.
Macleod asked Stedman what the diesel money would be used for if freed up? Stedman stated he would like to see it directed towards the general fund. We could use it to assist industry for retrofits, maybe on a loan program. We have to be careful of ‘giving' state money to private industry. Macleod asked if we could use it for shore power for truck stops. Stedman stated there are monies available for municipal-owned truck stops.
There were no comments from the public. The public hearing was closed at 10:35 am.
Burgman moved approval of the FY07 budget. Foutch seconded the motion. The motion carried by a majority of the Board (6:1 Clallam County).
DIRECTOR'S REPORT
Compliance Update
Robert Moody, Compliance Supervisor, explained Ocean Protein is back in action. We have received a total of 250 complaints in the past month; about half of them are due to Ocean Protein. They have stated they have fixed things, so we will be watching them pretty close. We heard they are expecting a large supply of fish tomorrow when the season opens.
Another odor source, Peninsula Topsoil in Belfair, has made the news. A report from citizens, over the weekend, stated strong obnoxious odors. The fire department responded and confirmed odors that seemed chemical-like. The fire personnel were physically ill upon return to the station. They called out the narcotics task force and SWAT teams, and the police raided the neighborhood with search warrants. They finally decided the odors were coming from Peninsula Topsoil, although they haven't proved it.
R. Moody added that we do have a hearing schedule for the next meeting. The hearing will be for the re-organization of our Regulation 1. He noted there are no actual changes to the rules it is strictly a re-organization.
R. Moody pointed out a map in the packets. This map, he noted, shows all active land clearing burns that have been permitted. With the large amount of burns permitted, we have had very little complaints associated with them. The Board was surprised at how many burns we have permitted (roughly 1800) since the onset of the program. Foutch felt it would be a good to get a summary of the entire level of effort this has been since the program was dumped on us.
R. Moody stated staff has met with the counties involved in the 2007 burn ban. The next step will be to meet with the cities and fire districts that will be impacted. Thanks go to Dan Nelson, R. Moody continued, for creating a draft of the signage that will be posted in the no burn areas. R. Moody reminded the Board that the areas that will be involved in the 2007 burn ban include unincorporated urban growth areas. For instance, Sekiu, Clallam Bay, and Joyce up in Clallam County would not be allowed to burn after 2007.
ORCAA Permit Actions
Mark Goodin, Professional Engineer, noted Interfor, an existing mill in Port Angeles is planning an expansion. With this expansion, Goodin noted, they will become a major source. Goodin stated we have received their application and it is just now being reviewed.
Another permit is for Nippon, another existing major source. We are currently working on renewing their AOP. We have issued a draft permit and it is currently in the public comment period. We have only received on comment at this point in time. The person requested a public hearing on the permit. Munro stated there was a nasty letter to the editor in this morning's paper. Goodin noted he has been talking with Nippon's permitting person. There have been some negotiations with regards to permit conditions and it has been fairly cooperative, however there has been give and take on both sides. There have been some conditions that we feel need to stay in the permit that they are not very happy about. Goodin did state we need to decide whether or not one comment is grounds to hold a full-blown public hearing.
Goodin stated the appeal deadline for Lakeside Industries, on Durgin Road, has ended. We have not seen any appeals so we are pretty sure it is a done deal. The can begin constructing the plant once they receive natural gas in the area, which is pending SEPA approval.
What is not on the list, Goodin continued, is a company called Imperium Renewables. This is a company that has proposed to construct a biodiesel plant in Grays Harbor County. It is possible they will be an AOP source.
Director's Vacation
Stedman explained he has been offered a unique opportunity to sail back, as crew, on a boat from Hawaii. Stedman noted he would be leaving first or second week in July and be gone for approximately 3 weeks. The Board wished him a good vacation.
School Bus Retrofit Update
Dan Nelson, Public Information Officer, stated the Tacoma Public Utilities Board met and approved their acceptance of the proposal for the retrofit of the four locomotives. We will be providing $50,000 ($30,000 from DOE), PSCAA will be providing $50,000 and Tacoma Utility will match us with $100,000. We are moving ahead trying to put together a public event. We are hoping to get the Governor to come for a ribbon cutting ceremony. Most likely we will have to have the event in Tacoma once the technology has been installed.
Ocean Protein Update
Doherty asked the status of the fines for OP. Stedman stated the settlement was that we would receive $250,000 (over a 5 month period), we would suspend $250,000 and they would use $250,000 toward improvements at the plant. Their first payment is due July 1 ($50,000). We are currently looking at the settlement as we feel they may have violated the agreement. They installed non-approved pollution control equipment. Basically, they retrofitted the equipment to get it to work. It puts us in a difficult situation because, if it actually works, we don't really want to hit them hard on administrative issues. We will be looking into the process. Stedman noted it doesn't appear they are able to control the smells very well. We are worried as the season is beginning and OP has a lot of contracts to accept the waste. OP did promise the public they would shut down if there were an odor, however, it takes a couple of days to shut down, as they have to process everything in the line.
If they continue to have violations, we will be heading to court to enforce the injunction from last year. We just have to convince the judge that it is a big enough nuisance and they should be shut down.
Stedman did add we will be coming to the Board later, with a proposal to increase our maximum penalty amount. Currently it is $10,000 per day per violation. Most other agencies have increased this amount to $14,000.
Macleod asked if it were possible to get some kind of indemnity bond when they secure their permit. Stedman stated he was not aware of any such thing, but he would look into it.
Personnel Policies and Procedures Update
Stedman stated we have got a revised copy of the manual back from the attorney. We will be reviewing them and get copies to the Board as soon as possible. 0000 Climate Change Summit
Stedman explained Mike Kreidler, Insurance Commissioner, is holding a Climate Change Summit June 13. Stedman stated he would be attending the meeting. There is a lot of movement right now and it appears the insurance industry is going to be taking a lead on climate change issues. As the differences in temperatures in the ocean, and the energy balance in the atmosphere, in order to maintain that we have to have really powerful storms, such as Katrina. The insurers are concerned about global climate change and ramifications. Stedman stated he would report back to the Board at the August meeting.
UNFINISHED BUSINESS:
Meeting with Auditor/Treasurer
Stedman thanked Mark Foutch for coordinating the meeting. The upshot of the meeting is we will be trying again to get the law passed. It was the opinion of both the Treasurer and Auditor that there is no way to institute any kind of agreement or arrangement that would be compliant within in the law. Our hopes are to have Senator Fraser to carry the bill forward this time around. We have proposed the language changes that are amenable by all parties.
Foutch did state he felt the motivation of the senator in Yakima is that not all small agencies are as well staffed as ORCAA and some other local agencies. Without writing some additional accountability in the law to cover for the potential inadequacies, is worrisome. However, the very act of adding the controls into the law would require some of the smaller agencies to hire additional staff, which they can't afford to do. In some cases, it might imply taking away statutory authority from the executive director.
Regulation re-organization (hearing scheduled for July)
Stedman wanted to let the Board know that we would be having a hearing in July. Stedman explained we are just reorganizing the layout of the regulations so it is structured so all fees are contained in one section. The reorganization of the regulations should make it easier to located rules. It will be more user-friendly. We do not expect any controversy on this matter.
The meeting adjourned at 11:15 am.
PRESENTED BY:
Richard A. Stedman, Executive Director
APPROVED BY:
The Majority of the Board
APPROVED and SIGNED this 12th day of July 2006