PROPOSAL:

Execute Contracts for AQIP for Second Quarter of 1997

SYNOPSIS:

Rule 2202 - On-Road Motor Vehicle Mitigation Options was adopted on December 8, 1995. As one compliance strategy, Rule 2202 allows employers to invest in the AQIP. Monies received are placed in a restricted account to fund programs that result in equivalent emission reductions that would otherwise have been achieved by the participating employers. Staff evaluated the proposals received during the second quarter of 1997 and this action is to recommend one for funding. The adjusted amount available for this quarter is $463,121.

COMMITTEE:

Mobile Source, September 26, 1997, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract for a total amount not to exceed $292,500 from the AQIP Special Revenue Fund to obtain mobile source emission reductions from Eco-Scrap.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Background

The Rule 2202 AQIP allows all employers to participate by electing to invest in an AQMD-administered restricted fund. Investment can be either $60 annually per employee reporting to the worksite during the 6:00 a.m. to 10:00 a.m. peak window, or $125 triennially per employee. The restricted monies are to be used by the AQMD to fund proposals that achieve mobile source emission reductions that would otherwise have been achieved by implementing a rideshare program. This Board letter contains a discussion regarding the dispersal of funds from the AQIP compliance option for the second quarter of 1997.

Upon registering under this option and submitting the designated investment amount, an employer is considered to be in compliance with the rule and there is no need for the employer to take further action to reduce mobile source emissions. The collected monies are used to fund alternative mobile source emission reduction strategies that reduce mobile source emissions at a more cost-effective rate which could potentially result in greater overall emission reductions.

The second quarter of 1997 submittal period ended on June 30, 1997 with 50 employers participating in the AQIP program. The total AQIP funds received during this period was $270,563, which includes both annual and triennial participants (see Attachment 1). In addition, $46,889 is being carried forward from the previous quarters and $145,669 is available from the accrued interest. Therefore, the total amount available for this quarter is $463,121. Staff recommends that $292,500 be used to purchase emission reductions to satisfy the one-year and the three-year requirements.

Proposal Evaluation

During the second quarter of 1997, eight proposals were received requesting funds ranging from $4,427 to $877,500. The project proposals received can be grouped in four categories: old-vehicle scrapping, alternative fuel vehicle deployment, transportation demand management, and electric-powered bicycles. Attachment 2 gives a summary of emission reduction targets and the emission reduction credit balance. Attachment 3 gives a summary of each proposal received and funds requested. Attachment 4 provides an overall summary of the proposals by type. It lists the proposals received, funds requested, total proposal costs, and emission reductions expected from each proposal.

All proposals submitted were reviewed and scored based on the information in the proposal as submitted to the AQMD, and according to the selection criteria described in the RFP. The evaluation panel consisted of 5 AQMD employees: Catherine Wasikowski, Connie Day, Ernie Lopez, Shashi Singeetham, from Transportation Programs, and Dave Coel, from Planning. Two panel members are Hispanic, two are Caucasian, and one is Asian-Indian. Three panel members are male, and two are female. Attachment 5 discusses the selection criteria, the scoring process, and the overall ratings for each proposal.

The following proposal is recommended for approval:

Eco-Scrap Option 3 $292,500

Eco-Scrap proposes to generate MSERCs through an old vehicle scrapping program. Five options have been offered with option #3 being selected.. This proposal covers the emission reduction requirement of the quarter and will provide emission credits within 90 days of the contract. The Eco-Scrap proposal ranked second but is recommended for funding because the firm that ranked first has two AQIP contracts that total $737,300 with work pending on both.

For the second quarter of 1997, the total recommended funding amount is $292,500 (see Attachment 6, Table 2). Any remaining AQIP funds would be held for future proposal funding in subsequent quarters. Both annual and triennial AQIP emission reduction targets for each performance target zone and for all participants during the second quarter 1997 will be met by the recommended proposal.

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. On September 19, 1997, the Administrative Committee considered options for amendment of the District’s contracting policies to conform with the Proposition. The matter will be further considered at the Committee’s next meeting. In the meantime to ensure compliance with the Proposition, the Committee recommended for adoption an Interim Contracting Policy. This policy will be considered for adoption as part of another agenda item at the October 10, 1997, Board Meeting. The proposed 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.) In addition, in compliance with federal requirements, local preference points are allowed only if the contract does not involve federal funding. If the Interim Policy is adopted by the Board, this contract award will be based on that policy. The remainder of the District’s Contracting and Purchasing Policy and Consultant Selection Policy remains unchanged.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids was published in the following publications:

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

Additionally, potential bidders were identified through Los Angeles County’s Directory of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Directory of Certified Firms published by the Los Angeles County Metropolitan Transportation Authority; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; the Caltrans electronic bulletin board listing of Disadvantaged and Women Business Enterprises; the AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Copies of the RFP were mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and were placed on the Internet at AQMD’s Web site [http://www.aqmd.gov "Business and Job Opportunities"] and on AQMD’s bidder’s 24-hour telephone message line. Public service announcements were sent to local radio, TV, and cable stations.

A Bidders Conference was convened at the AQMD on June 5, 1997 to highlight the requirements of the proposals and to answer questions from the 13 prospective bidders in attendance.

Resource Impact

Not Applicable

Attachments

1. AQIP Funding and Participation

2. Summary of Emission Reduction Targets and Credit Balances

3. Summary of AQIP Proposals Received

4. Summary of Proposals By Type

5. Summary of Proposal Ratings

6. Recommendation for Funding

aqip2-97.doc

ATTACHMENT 1

AQIP - Second Quarter 1997

TABLE 1

Funds Received (as of June. 30, 1997)

Program	Funding
Annual	$129,173
Triennial	$141,390
Total Second Quarter, 1997	$270,563

TABLE 2

Annual Participation

County	Worksites	Employees	Contribution
Los Angeles	9	1,634	$98,034
Orange	3	519	$31,139
Riverside	0	0	$0
San Bernardino	0	0	$0
TOTAL	12	2,153	$129,173

TABLE 3

Triennial Participation

County	Worksites	Employees	Contribution
Los Angeles	22	139	$8,333
Orange	12	815	$82,382
Riverside	2	5	$300
San Bernardino	2	403	$50,375
TOTAL	38	1,362	$141,390

ATTACHMENT 2

AQIP - Second Quarter 1997

TABLE 1

Emission Reduction Targets (Adjusted Per SB 836)

(Pounds)

Program	VOC	NOx	CO
1997	16,592	12,498	128,539
1998	5,845	4,407	45,107
1999	5,113	4,109	39,981
TOTAL 3-Year Target	27,550	21,014	213,627

TABLE 2

Emission Reduction Credit Balances (As of June 30, 1997)

(Pounds)

ATTACHMENT 3

Summary

Air Quality Investment Program

Proposals Received - Second Quarter 1997

The following proposals were received in response to the AQIP Request for Proposals (RFP) on or before July 3, 1997. The proposals are not listed by classification or rank.

1. Ecology Auto Wrecking $282,500

County: All

Ecology Auto Wrecking proposes to generate MSERCs through an old-vehicle scrapping program and provide triennial credits. Based on the information provided, the proposal is estimated to have a cost-effectiveness of $1.62 per pound. (Not funded: Ranked third in cost effectiveness.)

2. Pick Your Part Auto Wrecking $245,250

County: All

Pick Your Part Auto Wrecking proposes to generate MSERCs by eliminating pre-1982 vehicles through an old-vehicle scrapping program at a cost-effectiveness of $1.40 per pound. (Not funded: Ranked first in cost-effectiveness but was not funded as the vendor has two AQIP contracts with work pending on both.)

3. Anaheim Transportation Network, The Walt Disney Co., Option A $280,360

and the City of Anaheim Option B $280,360

County: Orange

The Anaheim Transportation Network proposes a clean fuel flexible rail feeder system from Orange and Anaheim stadium rail stations to Anaheim resort, downtown and stadium business centers. Four 28-passenger CNG vehicles will meet arriving and departing Metrolink trains. In Option A, the vehicles are equipped with optional lower emission CNG engines and in Option B, the vehicles are equipped with standard CARB-certified standard CNG engines. (Not funded: Low cost-effectiveness.)

4. Market-Based Solutions, Inc. $245,000

County: All

Market-Based Solutions proposes to generate MSERCs through an old-vehicle scrapping program. This proposal offers all the required emissions for the quarter at the cost-effectiveness of $1.67 per pound. (Not funded: Ranked fourth among all old-vehicle scrapping proposals.)

5. Eco-Scrap Option 1 $97,110

Option 2 $248,040

Option 3 $292,500

Option 4 $585,000

Option 5 $877,500

County: All

Eco-Scrap proposes to generate MSERCs through an old vehicle scrapping program. Five options have been offered. All the options have a cost-effectiveness of $1.60 per pound and cover the emission reduction requirement of the quarter. (Funded Option 3: Ranked second in cost-effectiveness among old-vehicle scrapping proposals. The emission credits are being surrendered within 90 days of the contract and the firm has no pending AQIP contracts.)

6. County of Los Angeles Public Library $250,000

Telecommunity Centers Project County: Los Angeles

This proposal seeks to develop nine Library Telecommunity Centers in two phases for the purpose of integrating telecommuting/teleconferencing technologies into libraries which represent a wide geographical spread in each of the Supervisorial Districts across Los Angeles County. (Not funded: Low cost-effectiveness.)

7. Santa Monica College Police Department $4,427

County: Los Angeles

The Santa Monica College Police Department proposes to reduce emissions by replacing some of their gasoline-powered patrol vehicles with two electric-powered bicycles for approximately 9,700 hours of use per year. (Not funded: Incomplete proposal.)

8. Whittier College $200,000

County: Los Angeles

Whittier College proposes to reduce emissions by deploying electric bicycles, constructing electric bicycle pathways and installing appropriate bike racks. (Not funded: Incomplete proposal.)

ATTACHMENT 4

AQIP - Second Quarter 1997

Proposal Summary

(By Type)

ALTERNATIVE FUEL VEHICLES	AQIP Funding Request	Total Program Cost	AQIP Program Period		Emission Reduction Commitments (lbs.)
				VOC		NOx	CO
Anaheim Transportation Network, The Walt Disney Co., and the City of Anaheim - Option A: CNG vehicles built to CARB optional lower emission standards	$280,360	$645,890	Triennial	12,763		4,120	91,095
Anaheim Transportation Network, The Walt Disney Co., and the City of Anaheim - Option B: CNG vehicles built to CARB standard emission specifications	$280,360	$645,890	Triennial	10,901		3,500	53,342

OLD-VEHICLE SCRAPPING	AQIP Funding Request	Total Program Cost	AQIP Program Period		Emission Reduction Commitments (lbs.)
				VOC		NOx	CO
Ecology Auto Wrecking	$282,500	$282,500	Triennial	63,300		38,625	510,000
Pick Your Part Auto Wrecking	$245,250	$245,250	Triennial	62,778		38,670	516,600
Market-Based Solutions	$245,000	$245,000	Triennial	45,000		33,900	474,600
Eco-Scrap - Option 1	$97,110	$97,110	Triennial	22,471		12,948	176,126
Eco-Scrap - Option 2	$248,040	$248,040	Triennial	58,088		33,072	449,864
Eco-Scrap - Option 3	$292,500	$292,500	Triennial	68,500		39,000	530,500
Eco-Scrap - Option 4	$585,000	$585,000	Triennial	137,000		78,000	1,061,000
Eco-Scrap - Option 5	$877,500	$877,500	Triennial	205,500		117,000	1,591,500

TRANSPORTATION DEMAND MANAGEMENT	AQIP Funding Request	Total Program Cost	AQIP Program Period		Emission Reduction Commitments (lbs.)
				VOC		NOx	CO
County of Los Angeles Public Library Telecommunity Centers Project	$250,000	Not specified	Triennial	4,216.1		4,110.7	73,781.4

ELECTRIC-POWERED BICYCLES	AQIP Funding Request	Total Program Cost	AQIP Program Period		Emission Reduction Commitments (lbs.)
				VOC		NOx	CO
Santa Monica College Police Department	$4,427.38	$5843.38	Triennial	66.3		48.9	509.1
Whittier College	$200,000	$200,000	Triennial	21.9		16.2	168.6

ATTACHMENT 5

Summary

AQIP - Second Quarter 1997

Proposal Ratings

All proposals submitted were reviewed and scored according to the selection criteria in the Board-approved RFP. The RFP selection criteria is an evaluation process consisting of two steps: Step 1 - Technical, and Step 2 - Cost and Other Factors. Proposals scoring a minimum of 70 points for technical criteria are then scored for cost and other factors. Proposals that score below 70 points are not scored any further and would be scored zero for the total score. The resulting total and average scores are summarized in the table below.

PROPOSALS	PROPOSAL TYPE	TOTAL SCORE*	AVG. SCORE
Pick Your Part Auto Wrecking	Old-Vehicle Scrapping	443.0	88.6
Eco-Scrap - Option 1	Old-Vehicle Scrapping	408.5	81.7
Eco-Scrap - Option 2	Old-Vehicle Scrapping	409.0	81.8
Eco-Scrap - Option 3	Old-Vehicle Scrapping	406.0	81.2
Eco-Scrap - Option 4	Old-Vehicle Scrapping	401.0	80.2
Eco-Scrap - Option 5	Old-Vehicle Scrapping	396.0	79.2
Ecology Auto Wrecking	Old-Vehicle Scrapping	382.5	76.5
Market-Based Solutions	Old-Vehicle Scrapping	371.5	74.3
Anaheim Transportation Network, The Walt Disney Company and the City of Anaheim - Option A	Clean Fuel Flexible Rail Feeder System, Using Optional Lower-Emission CNG Vehicles	253.0	50.6
Anaheim Transportation Network, The Walt Disney Company and the City of Anaheim - Option B	Clean Fuel Flexible Rail Feeder System, Using Standard CNG Vehicles	239.0	47.8
County of Los Angeles Public Library - Telecommunity Centers Project	Telecommunity Centers	167.0	33.4
Santa Monica College Police Department	Use of Electric-Powered Bicycles	0.0	0.0
Whittier College	Purchase Electric Bicycles, Bike Racks And Create Bike Pathways	0.0	0.0

* Aggregated total score from all five members of the proposal evaluation panel.

ATTACHMENT 6

AQIP -Second Quarter 1997

TABLE 1

Proposal Recommended for Funding

Anticipated Emission Reductions

(Pounds/Year)

TABLE 2

Proposal Recommended for Funding

Funding Request

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