PROPOSAL:

Approve Research and Development Backup Projects within FY 1997-99 AB 2766 Discretionary Fund Work Program;
Authorize MSRC the Ability to Adjust Up to An Additional 5% the Funding of Said Projects; Authorize Execution of Agreements

SYNOPSIS:

The Board’s October 10, 1997, approval of the FY 1997-99 Discretionary Fund Work Program included a total of 12 Research and Development (R&D) and TCM projects at $1,859,674 in funding, and provided a backup list of eligible R&D projects which would be presented to the Board at a future meeting if additional funds became available. Staff has identified an additional $1.5 million from turn-back funds and higher interest income. On October 23, 1997, the MSRC reconsidered the backup list for funding within the FY 1997-99 Work Program. The MSRC requests Board approval of two R&D projects intended to assist in the development and certification of a heavy-duty LPG engine and conversion kit; authority to adjust the project costs up to an additional 5% for the two projects; and authority to execute agreements.

COMMITTEE:

Mobile Source Air Pollution Reduction Review, October 23, 1997, Approved Unanimously

RECOMMENDED ACTION:

1. Approve Research and Development backup projects, as stipulated in attached, within the FY 1997-99 AB 2766 Discretionary Fund Work Program.

2. Authorize MSRC the ability to adjust up to an additional 5%, as necessary, the funding of these two projects included in the attached; and authorize MSRC to withdraw approval of the projects in cases where bidders are not able to successfully negotiate a contract, the funds saved to apply to other components of the FY 1997-99 Work Program.

3. Authorize the Chairman of the Board to execute agreements with the proposers as set forth in the attached for the FY 1997-99 Work 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.

As part of the two-year, $26 million FY 1997-99 AB 2766 Discretionary Fund Work Program, the MSRC obtained Governing Board approval on April 11, 1997, to issue RFP #9697-46 (Attachment 1) to solicit R&D proposals. The R&D Program provides 50% co-funding for the design, development, and certification of a low-emission LPG engine or conversion kit suitable for medium- and/or heavy-duty fleet vehicles, including most local delivery trucks. Three R&D proposals were received when final bidding closed at 5:00 p.m. on Tuesday, June 24, 1997. On October 11, 1997, the Governing Board approved a portion of the FY 1997-99 AB 2766 Discretionary Fund Work Program, including the $.5 million R&D Program and a $1.5 million TCM Program. At that time the MSRC recommended funding one R&D proposal from IMPCO Technologies, Inc. in the amount of $448,295. However, based upon its evaluation, the MSRC believed that all three R&D proposals were unique and had sufficient merit for funding. Therefore, the other two proposals were included on a backup list for funding if additional funding should become available in the near future.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the R&D RFP and soliciting proposals was published in the following publications:

1. The Antelope Valley Press	10. Korea Central Daily	19. Philippine News
2. Black Voice News	11. La Opinion	20. Precinct Reporter
3. Chinese Daily News	12. La Voz	21. Rafu Shimpo
4. Daily News	13. Los Angeles Daily News	22. Riverside Press Enterprise
5. Eastern Group Publications	14. Los Angeles Sentinel	23. San Bernardino Sun
6. El Chicano	15. Los Angeles Times	24. Santa Clarita Signal
7. El Chicano	16. M/W/DVBE Source	25. State of California Contracts
8. Inland Empire Hispanic News	17. Orange County Register	Register
9. Inland Valley Daily Bulletin	18. Palm Springs Desert Sun

Additionally, potential bidders were identified using the AQMD’s own electronic listing of certified minority vendors and the AQMD’s Purchasing mailing list. Copies of the RFP/RFQ were 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/rfp/] and AQMD’s 24-hour telephone message line for bidders at (909) 396-2724.

In addition, a brochure announcing the R&D and other funding opportunities was mailed to over 1,800 interested parties on the MSRC’s mailing list.

Bidders’ Conference

Approximately 300 copies of the R&D RFP were mailed out and approximately 100 vendors attended a non-mandatory Bidders’ Conference held on May 7, 1997, at 8:30 a.m. Additionally, to provide further assistance to proposers, a technical workshop was conducted on May 28, 1997, at 1:00 p.m. The technical workshop had a larger attendance than the Bidders’ Conference and was quite successful.

Bid Evaluation

Three proposals were received in response to R&D RFP #9697-46 when final bidding closed at 5:00 p.m. on Tuesday, June 24, 1997, as follows:

The MSRC directed its Technical Advisory Committee to form an evaluation subcommittee to review, evaluate, score and rank the three proposals, using the guidelines and evaluation criteria within the RFP, and develop a funding recommendation for its consideration. The MSRC-TAC was directed to develop an "A" list of all fundable proposals, a "B" list of all proposals not recommended for funding (regardless of monies available), and a "backup" list of eligible proposals in case additional monies became available in FY 1997-98. On August 28 and September 25, 1997, the TAC presented its recommendations to the MSRC for the R&D Program as well as the TCM Program, and the MSRC received public comment from prospective bidders. At its September 25, 1997 meeting, the MSRC adopted the R&D and three TCM portions of the FY 1997-99 AB 2766 Discretionary Fund Work Program, which included the recommendation to fund the first ranked R&D proposal from IMPCO Technologies, Inc. The MSRC also received a backup list of eligible R&D proposals which could be presented to the Board at a future meeting if additional funds became available. This backup list included the remaining two proposals, ranked Nos. 2 and 3.

Panel Composition

The R&D Evaluation Subcommittee consisted of the following individuals: David Cowardin, representing County of Los Angeles; Dan Fong, representing California Energy Commission; and Judith Gilbert, representing County of San Bernardino Board of Supervisors [two males (one Caucasian/one Asian-Pacific American) and one female (Caucasian)].

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. This contract award will be based on the current policies. However, the projects recommended for approval in this Work Program were not affected by any preference points, so these projects can be awarded as recommended.

Proposal

Following the September 25, 1997, MSRC meeting, staff identified an additional $1.5 million in the Discretionary Fund from turn-back funds from projects which either did not move forward or realized a cost savings and from higher interest income than projected. Given these additional funds, at its October 23, 1997 meeting, the MSRC reconsidered the backup list for funding within the FY 1997-99 Work Program and unanimously approved funding the other two R&D projects totaling $992,705.

This action is to request Board approval of the two R&D backup projects (as stipulated in Attachment 2) within the FY 1997-99 AB 2766 Discretionary Fund Work Program. Attachment 2 includes a spreadsheet on the backup projects recommended for funding and summary sheets on each project.

There are cases in which the bidders are not able to successfully negotiate a contract, in which case the MSRC requests the authority to rescind the funding commitment for that proposer and retain that portion of the AB 2766 discretionary funds in the Discretionary Fund account.

The MSRC also requests the authority to adjust funds allocated to each project by up to 5% of the project funding specified in this portion of the FY 1997-99 AB 2766 Discretionary Fund Work Program. This authority was previously granted by the AQMD Board for prior work program projects.

Finally, the MSRC requests the Board’s approval to authorize the Chairman of the Board to execute agreements with the proposers as set forth in the attached spreadsheet.

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 - R&D RFP #9697-46

2 - Backup List Spreadsheet and Project Summary Sheets

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