Proposal:

Execute Contracts for the Corridor Community Program as Part of the FY 1995-97 AB 2766 Discretionary Fund Work Program

Synopsis:

Through its $7 million ZEV "Quick Charge" Program, the MSRC released an RFP for its $1.675 million Corridor Community Program in March 1996. This Program is intended to solicit the participation of general purpose local governments in a demonstration of EVs and infrastructure within the South Coast District. The demonstration will incorporate infrastructure, the permitting process, and coordination within and between communities, utilities and manufacturers. Seven proposals were received by the deadline. On April 24, 1997, after considerable negotiations, the MSRC approved funding for several private/public partnerships within the FY 1995-97 AB 2766 Discretionary Fund Work Program. This action requests Board approval to enter into contracts with these partnerships.

Committee:

MSRC, April 24, 1997, Unanimously Approved

Recommended Action:

1. Approve the EV Corridor Community Program and funding in the amount of $1,729,581 for the seven proposals and associated charging station sites as detailed in Tables 1-8 as part of the Fiscal Year 1995-97 AB 2766 Discretionary Work Program.

2. Authorize the MSRC the ability to adjust up to an additional 10% for the charging station contracts in those instances outlined in this letter, as necessary.

3. Authorize the Chairman of the Board to execute agreements with the proposers as set forth below (& in Tables 1-8).

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 mobile sources. 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.

Light-duty passenger vehicles contribute 330 tons per day of NOx and 420 tons per day of VOC. To reduce these emissions, vehicle manufacturers must offer 10 percent ZEVs for California sales by 2003. The ZEV requirements also include a market-based approach which will advance the introduction of cleaner vehicles into the marketplace and allow time for development of infrastructure. Consequently, the MSRC’s FY 1995-97 AB 2766 Discretionary Fund Work Program included a three-part Zero-Emission Vehicle "Quick Charge" Program, including an Outreach Coordinator ($175,000), a $5,000 Manufacturers’ Buydown Incentive ($6 million), and an EV Corridor Community Program ($1.675 million).

The EV Corridor Community Program is intended to solicit the participation of general purpose local governments in a demonstration of EVs and infrastructure within the South Coast District. The Program will assist communities to prepare for EVs by testing the consumer market for EVs and demonstrating the infrastructure, permitting process, and coordination within and between communities, utilities and manufacturers necessary for the smooth introduction of larger quantities of EVs. The Program supports the deployment of EVs along designated corridors [ "405" corridor which begins in Lincoln/Sherman Oaks and ends in Mission Viejo; "10" corridor which begins in Santa Monica and ends in Redlands; and "215/91" corridor which begins in Temecula/Riverside and ends in Gardena.] and within specific communities which have committed to this deployment to be "EV-ready" by encouraging the lease/purchase of EVs, installation of public charging infrastructure, and adoption of "EV-friendly" ordinances and procedures.

In July 1995, when the MSRC requested the Board’s approval to release funding solitications for the FY 1995-97 Work Program, it included an Informational Notice for the EV Corridor Community Program to evaluate interest and allow communities time to become "EV-ready." Subsequently, in March 1996 the MSRC obtained Board approval to release an RFP for the EV Corridor Communities Program, including a $150,000 minimum funding level for each of the four counties in the South Coast District. An RFP amendment was issued in early June 1996 clarifying allowable costs and including an additional evaluation criteria worth 10 bonus points for the "use of emission-free renewable energy source for recharging."

Outreach

During this one-year process, the MSRC’s Outreach Coordinator conducted 18 outreach workshops, held individual focus groups with utilities and manufacturers, and disseminated information and media packages to a wide-range of agencies. As a subcontractor, Denny Zane of Urban Dimensions conducted a special focus group meeting for all four counties to coordinate aspects of the Program. In addition, MSRC-TAC members convened workshops in their cities and counties on the Program. A brochure on the FY 1995-97 Work Program, including the Informational Notice, was prepared and mailed to over 1,800 interested parties on the MSRC’s mailing list. Both the Informational Notice and subsequent RFP were advertised in 21 publications, including major ethnic community newspapers. The RFP was also provided to the members of the AQMD’s Ethnic Community Advisory Group for dissemination to their constituents. Information on the program was available on the MSRC’s toll-free line (1 800 HLP-2766), and press releases were also coordinated by the Outreach Coordinator.

Bid Evaluation

By the July 10, 1996 deadline, seven excellent proposals, soliciting approximately $1.74 million, were received. The participants submitting proposals consist of 33 government entities matched with 60 private-sector partnerships. These participants have committed to establishing 137 charging sites with a total of 437 charging stations throughout the four-county area and are providing more than $4.2 million in co-funding. In addition, the proposers are offering to purchase 132 EVs to utilize the charging infrastructure. Proposals were received from the following entities:

• City of Los Angeles (prime contractor with administration by the Los Angeles Department of Water & Power and the Environmental Affairs Department);

• Orange County League of Cities (prime contractor may be the City of Anaheim rather than the League);

• City of Fontana (prime contractor on behalf of the San Bernardino County
Cities);

• Riverside County Transportation Commission (prime contractor on behalf of Western Riverside County);

• City of Santa Monica (prime contractor);

• San Gabriel Valley Council of Governments (prime contractor);

• Arroyo Verdugo Transportation Coalition (prime contractor).

Due to the magnitude and complexity of this large scale infrastructure implementation program, as well as the desire to incorporate "lessons learned" from other clean fuel
corridor projects, the EV Evaluation Subcommittee [ The EV Evaluation Subcommittee consisted of MSRC-TAC Members Roberta Hughan, CARB; Michelle
Kirkhoff, SANBAG; Melinda Stewart, Orange County; Ken Koyama, CEC; and Ray Gorski, Technical Advisor to the MSRC.] conducted an intensive review of the proposals. This evaluation process included site visits and assessments of all proposed charging locations, cost estimate refinements, and fact-finding meetings with the proposing parties.

The EV Evaluation Subcommittee also determined that all projects must adhere to the following requirements:

• Each EV charging site should have a minimum of two charge ports/spaces;

• Each EV charging site should have a minimum of one inductive and one conductive charger;

• Charging stations should be publicly accessible;

• If not publicly accessible (i.e., city yard), the site owner must commit contractually to purchase EVs;

• All charging stations should include a meter to record usage (this requirement is still being considered because of cost-effectiveness and may be implemented at a future date); and

• Cost estimates should be such to allow fixed-price charging station contracts.

After considerable negotiations, the EV Evaluation Subcommittee unanimously recommended funding all proposals received at the following funding levels (listed by each of the four counties):

• Los Angeles County

- City of Los Angeles:$811,836

- San Gabriel Valley COG:$219,115

- City of Santa Monica:$46,083

- Arroyo Verdugo Coalition$65,108

• Orange County

- Orange County League$318,493

• Riverside County

- RCTC$124,208

• San Bernardino County

- City of Fontana$144,738

Grand Total$1,729,581

Details on the funding allocations, co-funding to be provided, number of sites and infrastructure are detailed in Tables 1-8.

For Los Angeles and Orange Counties, the prime contractor will enter into an agreement with the AQMD to assume all contractual responsibility for implementing the entire contract, including subcontracts with the owners of the multi-site and single-site charging stations. For San Bernardino and Riverside Counties, the prime contractor will enter into an agreement with the AQMD to assume contractual responsibility for only part of the overall obligations.

Rather than entering into subcontracts the other participating agencies will enter into contractual agreements with the AQMD for their respective multi-site and single-site charging stations. The agencies responsible for charging stations within San Bernardino County are identified in Table 4, while Riverside County has not yet finalized which agencies will be responsible for charging stations within Riverside. The MSRC will report back to the Board within the monthly MSRC report submitted by Board Member Leonard Paulitz as to which agencies will be responsible for charging stations in Riverside County once they have been agreed upon.

On April 24, 1997, the MSRC reviewed all of these facts and the supporting documentation and unanimously approved the contracts for the EV Corridor Community Program as part of the FY 1995-97 AB 2766 Discretionary Fund Work Program. The original allocation for the EV Corridor Community Program was $1.675 million; however, turn-back funds from other projects are being reallocated to this Program to fund the projects in the amount of $1,729,581 as listed in the preceding page. The MSRC requests the Board’s approval of this element of the FY 1995-97 Work Program and requests authority to enter into contractual agreements.

The MSRC also requests the authority to adjust funds allocated for each charging station by up to 10% of the fixed-price contract in the following cases: 1) the contractor experiences an increase in project cost due to concealed conditions at the site which were unknown at the time the site estimate was prepared; and/or 2) a superseding legal mandate is imposed after the date of contract execution which would require modification to the charging station.

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 contracts will be drawn from this special fund, there would be no fiscal impact on the AQMD’s operational budget.

Attachments

Tables 1 -8 Listing Funding, Co-Funding, Charging Sites, etc.

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