Report:

Mobile Source Air Pollution Reduction Review Committee

Synopsis:

The MSRC met on Thursday, May 23, 1996. A summary of key issues addressed at that meeting is set forth below. The next MSRC meeting is Thursday, June 27, 1996, at 2:00 p.m. in the Auditorium, at which time the Committee will be considering the Supplemental FY 1995-97 AB 2766 Discretionary Fund Work Program.

Recommended Action:

Receive and file the attached report.

Leonard Paulitz
AQMD Board Representative on MSRC

Proposals Received by Deadline for
Supplemental FY 1995-97 AB 2766 Discretionary Fund Work Program

The MSRC released five Requests for Proposals on April 12, 1996, in the following areas: 1) $725,000 for three innovative TCM RFPs in the areas of bicycle transportation, market incentives, and broad-based, land-use training for elected officials; 2) $900,000 for research and development projects; and 3) $1,800,000 for alternative-fueled, heavy-duty vehicles, targeting refuse and interstate trucks. The deadline for these RFPs was Tuesday, May 21, 1996, by 5:00 p.m. A total of 54 proposals were received by the 5:00 p.m. deadline. One late proposal was received, and will not be evaluated. For your information a listing of the proposals received, including brief project descriptions and requested dollars, is provided as Attachment 1.

Election of MSRC Chair

The MSRC’s policies and procedures stipulates that each May the Committee shall hold elections of its chair and vice-chair positions. The incumbent chair, Rialto Mayor John Longville, who represents the Southern California Association of
Governments, was re-elected for the third consecutive year. Elections for the vice-chair position were postponed until the incumbent vice-chair could be present.

Update on Proposed CARB Amendments to Senate Bill 836

Staff advised the MSRC of the proposed CARB amendments to Senate Bill 836 which would rescind Rule 2202 and authorize the CARB to take away $52 million in local funds, including the AB 2766 Discretionary Fund Program monies. Board Member Leonard Paulitz, who represents the AQMD on the MSRC, reported that he sent out a legislative alert to all cities in San Bernardino County and plans to contact members of the Legislature relative to his opposition to the proposed amendments.

Actual Staff and Miscellaneous Costs for FY 1995-96 Second & Third Quarters

The total amount currently approved by the MSRC for FY 1995-96 staff and contract administration support and miscellaneous costs is $364,525 and technical support is $164,258. Actual staff and contract administration support costs for FY 1995-96 second quarter were $92,065; and $32,982 for technical support. Actual staff and contract administration support costs for FY 1995-96 third quarter were $82,638; and $26,401 for technical support. To date, $350,229 has been incurred in staff and technical support costs. Actual miscellaneous costs (i.e., mailing, office supplies) for FY 1995-96 second quarter were $7,290.14; and for FY 1995-96 third quarter, $6,676.13. It is anticipated that all staff support and miscellaneous costs for FY 1995-96 will be under budget by approximately $22,000.

Reimbursement of Staff Support and Other Costs for Fiscal Year 1996-97

At this meeting the MSRC also approved staff’s proposal for staff support and other costs for FY 1996-97. Staff proposed that combined staff administrative support, contract administration and program support, technical support, and miscellaneous services and mailing costs could be provided for a total amount not to exceed $575,000 for FY 1996-97. Specifically, the MSRC approved reimbursement for FY 1995-96 as follows:

Within the $155,000 for “technical and program support,” is the contract for Raymond Gorski. It was previously suggested by the Air Resources Board that the contract technical support provided by Mr. Gorski does not qualify as an administrative cost since it relates to program delivery as opposed to program implementation. Using this scenario, $65,000 of Mr. Gorski’s contract would be included with administrative costs and subject to the 5% administrative cap, and $43,000 as program services. However, to remain fiscally responsible, the MSRC has included all of Mr. Gorski’s costs relative to calculating administrative costs. Based on estimated revenue for FY 1996-97, administrative costs should not exceed $591,000, and staff’s proposal for FY 1996-97 remains within the 5% statutory limit for administrative costs.

Consideration of Accumulated Interest on AB 2766 Monies
in Relation to 5% Cap on Administrative Costs of Program

At the meeting of the MSRC’s Technical Advisory Committee there was a request for clarification of the mechanism used to calculate the 5% cap for administrative costs. Specifically, the Committee wondered if interest was included with revenues to determine available dollars for calculating the 5% cap. If it was not the case, would such an inclusion be in violation of the statute. Legal Counsel prepared an opinion on the issue which indicated that past practice did not include interest in the calculation. While there is no language in the statute that specifically excludes interest from the calculation base, a decision to do so would be a deviation from past practice and would require a strong justification. The opinion generally indicated that a decision by the MSRC could be made either way. However, the advice of Finance staff was that the annual budget for administrative costs should not exceed 5% of estimated revenues for the year. In the event expenditures on administrative costs exceed 5% of actual revenues received, the annual interest earned can be added to the annual revenues to determine the base for calculating the 5% cap for administrative costs.

Zero-Emission Vehicle “Quick Charge” Program:

Amendments to Corridor Community Program Request for Proposals

The MSRC approved various amendments to the Corridor Community Program RFP, which was released mid-March and will close July 10, 1996. An RFP amendment will be sent to all applicable parties, including clarifications and the following amendments:

1) An additional evaluation criteria worth 10 points: “Bonus Points for Use of Emission-Free Renewable Energy Source for Recharging.”

2) With regard to when funds expended may be counted as part of a bidder’s co-funding, all proposed co-funding must be directly related to the specific project proposed and must be expended no earlier than June 1, 1996. This is the first time the MSRC has allowed monies expended prior to contract execution to count as co-funding. However, this will allow local governments to have infrastructure in place for the EVs to be purchased as part of this program.

3) AB 2766 funds may be used for administrative costs related to the implementation of the EV Corridor Communities Program provided that: a) the proposal involves multiple (more than three government/ private entities in a teaming arrangement; and b) the administrative costs do not exceed 5% of the total project costs. This is the first time the MSRC has allowed AB 2766 funds to be used for administrative costs, but the Committee believes that a higher level of administrative costs may be incurred in this program.

Receipt and Approval of One Final Report

The MSRC received and approved one final report for AeroVironment Contract #C94038, which provided $123,113 for an electric motorcycle technology development and evaluation project. All final reports for the AB 2766 Discretionary Program can be viewed in the AQMD’s Library.

Contract Modification Requests

As recommended by its Technical Advisory Committee, the MSRC made the following decisions relative to contract modifications:

1) Approval of a six-month contractual term extension for City of Glendale Contract #C94051, which provides $273,500 for the establishment of a Park-N-Ride facility, and

2) Denial of a scope change for San Gabriel Valley Council of Governments FY 1995-97 TCM Proposal, which was awarded $50,000 for tasks within its CAMP Program. The requested change would have allocated the funds to a task not within the scope of the original project.

The MSRC also received and filed a report on "Scope Changes Handled Administratively by the AQMD Contract Administrator" for May which included one short-term, no-cost contractual term extension for Mike Kodama Planning Consultant Contract #C95010, which provides $140,330 for a parking cash-out project.

Contract Administrator Report

The MSRC's AB 2766 Contract Administrator provided a written status report on all fiscal year contracts. This Contract Administrator Report is provided for your information as Attachment 2.

MSRC’s Meeting Schedule

The MSRC adopted a revised 1996 meeting schedule, adjusting its meeting and meeting dates during the holidays. The revised 1996 meeting schedule is provided as Attachment 3.

Attachments

2 - Contract Administrator Report

3 - Revised 1996 meeting schedule