PROPOSAL:

Approve Issuance of Seven RFPs for Heavy-Duty School and Transit Buses and Other On-Road and Off-Road Heavy-Duty Vehicles; Three TCM Categories; and High Occupancy Toll Lane Demonstrations for FY 1997-99 AB 2766 Discretionary Fund Work Program

SYNOPSIS:

The Governing Board’s April 11, 1997, approval in concept of the two-year, $26 million FY 1997-99 AB 2766 Discretionary Fund Work Program included funding solicitations in FYs 1997-98 and 1998-99. Funding solicitations and awards for FY 1997-98 have already been undertaken and contracts are being executed. The MSRC is recommending the issuance of seven more RFPs as part of its FY 1997-99 Work Program for funding in FY 1998-99. These seven RFPs are as follows: CNG School Bus Buydown Program ($2.8M); Alternative Fuel Transit Bus Program ($3.65M); On-Road and Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Program ($3.0M); Three TCM Categories for Bicycle Projects, Videoconferencing, and Land-Use Strategies (share $1.5M); and High Occupancy Toll Lane Demonstration Projects ($0.5M). The MSRC requests Board approval to issue these RFPs.

COMMITTEE:

Mobile Source Air Pollution Reduction Review Committee, November 20, 1997, Approved

RECOMMENDED ACTION:

Approve issuance of the attached RFPs, as follows: #9798-14 for CNG School Bus Buydown Program; #9798-15 for Alternative Fuel Transit Bus Program; #9798-16 for Transit-Oriented Development Land-Use Strategies; #9798-17 for HOT Lane Demonstration Projects; #9798-18 for Videoconferencing Projects; #9798-19 for Bicycle Projects; and #9798-20 for On-Road & Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Program.

Mayor John Longville
Chair, MSRC

Background

In September 1990 Assembly Bill 2766 was signed into law (Health & Safety Code Sections 44220-44247) authorizing the imposition of an annual $4 motor vehicle registration fee to fund the implementation of programs exclusively to reduce air pollution from motor vehicles. AB 2766 provides that 30 percent of the annual $4 vehicle registration fee subvened to the AQMD be placed into an account to be allocated pursuant to a work program developed and adopted by the MSRC and approved by the AQMD Governing Board. It is estimated that approximately $13 million, including projected interest and revenue carryover, will be available in the Discretionary Fund in FYs 1997-98 and 1998-99, respectively.

The Governing Board’s April 11, 1997, approval in concept of the two-year, $26 million FY 1997-99 AB 2766 Discretionary Fund Work Program included funding solicitations in FYs 1997-98 and 1998-99. Elements for funding in FY 1997-98 included the Local Government Subvention Fund Match Program; three TCM Programs for Smart Shuttle Services, Student Education Projects and Market-Based Incentive Programs; and a Research and Development Program. Funding solicitations and awards for FY 1997-98 have already been undertaken and contracts are being executed. The MSRC is recommending the issuance of seven more RFPs as part of its FY 1997-99 Work Program for funding in FY 1998-99.

Proposals

The RFPs for funding in FY 1998-99 are as follows:

1) Heavy-Duty Alternative Fuels Program ($9.45 million):

• CNG School Bus Buydown Program RFP #9798-14 ($2.8 million) - places the burden on the manufacturers and/or school bus vendors to seek out school consortiums toward which maximum funding of $40,000 per qualifying CNG school bus will be provided to the participating vehicle purchaser or lessee. (Attachment 1)

• Alternative Fuel Transit Bus Program RFP #9798-15 ($3.65 million) - is available exclusively to Transit Bus Operators to co-fund the purchase of new, low-emission, 35-40 foot alternative fuel transit buses to replace older, diesel-fueled buses toward which maximum funding of $35,000 per qualifying bus will be provided.
(Attachment 2)

• On-Road and Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Program RFP #9798-20 ($3.0 million) - provides funding in three areas: 1) On-Road, In-District Heavy-Duty Vehicles at a maximum of $40,000 per vehicle, while allowing for 50% (up to $150,000) toward infrastructure, for heavy-duty vehicles that accrue
at least 85% of their annual mileage or engine hours of operation within the geographical boundaries of the SCAQMD; 2) On-Road District Corridor Group, with coordination among the MSRC, SCAQMD, Sacramento Metropolitan AQMD, and San Joaquin Valley Unified APCD, providing funding for those heavy-duty vehicles that do not satisfy the requirement that 85% of annual vehicle miles or hours of engine operation accrue within the geographical boundaries of the SCAQMD. Each participating air district contributes a pro rated share towards the differential cost of the low-emission, alternative fuel heavy-duty vehicle, up to a maximum of $12,000 per ton of NO_x emissions reduced; and 3) Off-Road, In-District Heavy-Duty Motor Vehicles at a maximum of $15,000 per vehicle for the replacement (repowering) of existing, non-regulated, uncertified diesel engines with new, CARB-certified engines. (Attachment 3)

2) TCM Program (sharing $1.5 million):

• Bicycle Projects RFP #9798-19 - provides 50% co-funding for projects promoting bicycling as an alternative mode to driving alone, including the purchase of bicycles for use in work-related activities, bicycle commuter incentive projects, on-site bicycle facility improvements, and bicycle route improvements. (Attachment 4)

• Videoconferencing Projects RFP #9798-18 - provides full funding for the purchase and installation of videoconferencing system hardware only for proposals that cost-effectively eliminate or reduce automobile trips through the use of videoconferencing technology.
(Attachment 5)

• Transit-Oriented Development Land-Use Strategies RFP #9798-16 - provides 50% co-funding for projects that implement or demonstrate transportation-related land-use strategies that result in direct and tangible motor vehicle emission reductions. (Attachment 6)

3) High Occupancy Toll (HOT) Lane Demonstration Projects RFP #9798-17 ($0.5 million) - provides a maximum of $250,000 funding for projects that cost-effectively demonstrate HOT Lanes (e.g. HOV lanes that are made available, for a fee, to single occupant vehicle drivers and/or carpools with fewer than the required number of passengers). (Attachment 7)

The individual target funding allocations may be reassigned by the MSRC based on the Committee’s review of proposals received in each respective category and to allow for mid-year adjustments. At its November 20, 1997 meeting, the MSRC reviewed these RFPs and unanimously approved each for release. At this time the MSRC is requesting the Governing Board’s approval to issue the RFPs listed above.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising these RFPs and soliciting proposals will be published in the following
publications:

1.	Antelope Valley Press	10.	La Opinion	19.	Precinct Reporter
2.	Black Voice News	11.	La Voz	20.	Rafu Shimpo
3.	Chinese Daily News	12.	Los Angeles Daily News	21.	Riverside Press Enterprise
4.	Eastern Group Publications	13.	Los Angeles Sentinel	22.	San Bernardino Sun
5.	El Chicano	14.	Los Angeles Times	23.	Santa Clarita Signal
6.	Elcelsior, The	15.	M/W/DVBE Source	24.	State of California Contracts
7.	Inland Empire Hispanic News	16.	Orange County Register		Register
8.	Inland Valley Daily Bulletin	17.	Palm Springs Desert Sun
9.	Korea Central Daily	18.	Philippine News

A brochure announcing these funding opportunities will also be mailed to over 1,800 interested parties on the MSRC’s mailing list. To assist potential bidders in submitting qualified proposals, a Bidders’ Conference will be held on Wednesday, January 14, 1998, and to provide further assistance, technical workshops will be held on January 27 and 29, 1998.

Additionally, potential bidders will be identified using the AQMD’s own electronic listing of certified minority vendors and the AQMD’s Purchasing mailing list. Copies of the RFPs will be mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business & Job Opportunities" icon] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

The RFPs will be evaluated by members of the MSRC’s Technical Advisory Committee, the composition and membership of which is mandated by AB 2766.

Proposition 209 Compliance

On August 28, 1997, Proposition 209 went into effect when a stay of enforcement was lifted. Proposition 209 prohibits granting of preferential treatment based upon race, ethnicity, color, sex or national origin in the operation of public employment, public education, or public contracting. Proposition 209 does not address disabled veteran business enterprises. On October 10, 1997, the District’s Board adopted an Interim Contracting & Purchasing Policy and Consultant Selection Policy. The Interim Policy eliminates the granting of preference points based upon race or gender and only requires a good faith effort to subcontract with minority and women-owned businesses if subcontracts are to be let, when contracts are funded in whole or in part by EPA grant funds. Proposition 209 does not prohibit actions necessary to maintain eligibility for federal funding. However, the MSRC does not receive any federal funding. On October 23, 1997, the MSRC adopted a Proposition 209 Compliance Policy which eliminates preference points based upon race, ethnicity, color, sex or national origin, and awards preference for disabled veteran business enterprises and local businesses, where appropriate. Language in these RFPs is based on the current policies.

Resource Impacts

Health & Safety Code Section 44243(2)(c) requires the AQMD to deposit the discretionary fund revenues "in an account to be used, pursuant to Section 44244, to provide grants to fund projects for the exclusive purpose of reducing air pollution from motor vehicles." Since the monies for these RFPs will be drawn from this special fund, there would be no fiscal impact on the AQMD’s operational budget.

Attachments

1 - CNG School Bus Buydown Program RFP #9798-14

2 - Alternative Fuel Transit Bus Program RFP #9798-15

3 - On-Road & Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Program RFP #9798-20

4 - Bicycle Projects RFP #9798-19

5 - Videoconferencing Projects RFP #9798-18

6 - Transit-Oriented Development Land-Use Strategies RFP #9798-16

7 - HOT Lane Demonstration Projects RFP #9798-17

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