Back

PROPOSAL:

Approve MSRC Projects within FY 1997-99 Work Program Including On-Road/Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Projects, EV Charging Station Signage Consultants, and Subvention Fund Match Projects; Authorize MSRC the Ability to Adjust Up to 5%; and Authorize Execution of Agreements

SYNOPSIS:

As part of the FY 1997-99 Work Program, the MSRC issued RFP #9798-20 in December 1997 for an On-Road & Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Program and RFP #9798-44 in May 1998 to Obtain a Contractor for an EV Charging Station Directional Signage Implementation Program. Both RFPs closed June 30, 1998. The MSRC considered recommendations for these two RFPs at its July 23, 1998 meeting. In addition, the Subvention Fund Match Program’s application period ended March 3, 1998. At this time the MSRC requests Board approval of several on-road & off-road projects, two contractors for the EV charging station directional signage program, and the final Subvention Fund Match Program projects. The MSRC also requests authority to adjust the project costs up to 5%; and authority to execute agreements.

COMMITTEE:

Mobile Source Air Pollution Reduction Review Committee, July 23, 1998, Approved

RECOMMENDED ACTION:

1. Approve 12 on-road & off-road heavy-duty vehicle diesel pollution reduction projects, as stipulated in Attachment 1, as part of the FY 1997-99 AB 2766 Discretionary Fund Work Program (Approved Unanimously).

2. Approve two consultants for the EV Charging Station Directional Signage Implementation Program, as stipulated in Attachment 2, as part of the FY 1997-99 AB 2766 Discretionary Fund Work Program (Approved; 6 in favor, 1 opposed and 1 abstention).

3. Approve projects submitted by local governments in the application process for the Local Government Subvention Fund Match Program from the first year of the FY 1997-99 AB 2766 Discretionary Fund Work Program.

4. Authorize MSRC the ability to adjust up to an additional 5%, as necessary, the funding of individual projects included in the attachments; and authorize the MSRC to withdraw approval of individual projects in cases where bidders are not able to successfully negotiate a contract, the funds saved to apply to other work programs.

5. Authorize the Chairman of the Board to execute agreements with the proposers as set forth in this Board letter and attachments for the FY 1997-99 Work Program.

Gregory T. Winterbottom
Chair, MSRC

Background
In September 1990 Assembly Bill 2766 (Sher) was signed into law (Health & Safety Code Sections 44220-44247) authorizing the imposition of an annual $4 motor vehicle registration fee surcharge to fund the implementation of programs exclusively to reduce air pollution from motor vehicles. AB 2766 provides that 30 percent of the surcharge 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.

The Governing Board’s April 11, 1997, approval in concept of the two-year, $26 million [ Adjusted to $35 million using turn-back funds and additional interest income.] 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 for the first year of the FY 1997-99 Work Program 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. Except for the Match Program, all contracts have been executed for FY 1997-98 awards.

The $6.5 million Local Government Subvention Fund Match Program, through a simplified application process, provides a 25% match to cities and counties within the AQMD’s jurisdiction that receive AB 2766 City Subvention Funds and meet eight eligible match categories. The program is designed to encourage cities and counties to implement projects that have a high potential for reducing motor vehicle emissions. The program encourages partnerships among local and community entities that can submit project proposals to their respective city or county. The application timeframe was originally established at six months from May 15 through November 15, 1997, but was extended through March 3, 1998 (as noted in Outreach Section, which follows). Funds have been allocated on a first-come, first-serve basis. All projects must still be completed by June 30, 1999, and match monies will be paid on a reimbursed basis only. The remaining proposals for this program that were received by the deadline have been reviewed for eligibility and are being submitted to the Board for approval.

The second year funding of the FY 1997-99 AB 2766 Discretionary Fund Work Program included the release of seven RFPs in December 1997 for heavy-duty school and transit buses and other on-road and off-road heavy-duty vehicles, three TCM categories, and high occupancy toll (HOT) lanes demonstrations, the release of another RFP in February 1998 for an EV Infrastructure Planning and Implementation Consultant, and the release of the final RFP in May 1998 to obtain a contractor for an EV Charging Station Directional Signage Implementation Program. Except for the on-road and off-road heavy-duty vehicles and the signage program, recommendations on these RFPs were considered and approved for funding at the June 12, 1998 AQMD Governing Board meeting. A description of the remaining two solicitations is as follows:

1. On-Road & Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Program RFP #9798-20 ($6 million), which includes three areas:
   • 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;

   • 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 prorated share towards the differential cost of the low-emission, alternative fuel heavy-duty vehicle, up to a maximum of $12,000 per ton of NOx emissions reduced; and

   • 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.

2. EV Charging Station Directional Signage Implementation Program RFP #9798-44 ($.5 million) includes coordinating signage permitting from three Caltrans Districts and approximately 40 cities and 70 private property site owners; sign fabrication of approximately 1,800 directional word signs and installation at a minimum of 100 publicly accessible EV charging stations; program monitoring, reporting and documentation for all aspects of the word signage program; and seeking approval of a charging station "symbol" to complement the word signage program.

Outreach
In accordance with the AQMD’s Procurement Policy and Procedure, a public notice advertising these RFPs and soliciting proposals was published on two different days 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 RFPs 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, "Business & Job Opportunities" icon] and AQMD’s 24-hour telephone message line for bidders at (909) 396-2724.

In addition to the AQMD’s standard practice indicated above, the MSRC sent a notice announcing these funding opportunities to more than 2,000 interested parties on the MSRC’s mailing list. The Signage RFP #9798-44 was also sent to more than 300 general contractors identified from a procurement list from the Los Angeles County Metropolitan Transportation Authority’s Purchasing Department.

For the Subvention Fund Match Program, the MSRC sent a 33-page information packet regarding the application process to every city and county within the AQMD’s jurisdiction that participates in the AB 2766 Subvention Fund Program. In addition, the FY 1997-99 MSRC Work Program information brochure, which describes all of the FY 1997-99 Work Program’s funding opportunities, including the subvention fund match program, was mailed to each of the 2,000+ interested individuals and entities which are contained in the MSRC’s mailing database.

On October 30, 1997, letters were sent from the MSRC Chair to all city mayors and council members, all city managers, and all AB 2766 city coordinators, advising that the Match Program application deadline was extended, one time only, through March 3, 1998, and encouraging cities to apply. The letters also included information on whom the cities should contact for technical and administrative assistance in preparing the applications. A notice advising of the extended application deadline was also included in the January 1998 issue of the Advisor.

Bidders’ Conferences

The MSRC conducted a Bidders’ Conference for the On-Road & Off-Road RFP #9798-20, which was released in December 1997, in conjunction with other FY 1998-99 funding solicitations, in the AQMD Auditorium on Wednesday, January 14, 1998, at 9:00 a.m. Approximately 100 potential proposers attended this non-mandatory Bidders’ Conference. Sixty-eight copies of the On-Road & Off-Road RFP were mailed to interested parties in addition to those copies of the RFPs mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations.

A Bidders’ Conference was also convened on Tuesday, May 19, 1998, for RFP #9798-44 for the EV Charging Station Directional Signage Implementation Program and was attended by nine potential proposers. Sixty copies of this RFP were mailed to interested parties in addition to those copies of the RFPs mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations.

In conjunction with other FY 1997-98 funding solicitations, the MSRC conducted a Bidders’ Conference for the Local Government Subvention Fund Match Program in the AQMD Auditorium on Wednesday, May 21, 1997. Approximately 100 interested individuals attended the Bidders’ Conference. During the same afternoon, the MSRC held a Technical Workshop for the potential Local Government Subvention Fund Match Program participants, which was attended by approximately 125 individuals representing local government agencies. For the last several months during their daily outreach efforts, Intergovernmental Affairs staff have been advising local government officials, at both elected and staff levels, about the MSRC’s Local Government Subvention Fund Match Program.

Bid Evaluation

When final bidding closed at 5:00 p.m. on Tuesday, June 30, 1998, fifteen proposals had been received in response to the On-Road & Off-Road RFP #9798-20 and four in response to the Signage RFP #9798-44.

The On-Road & Off-Road RFP was structured on a first-come, first-serve basis, using an application format to streamline the approval and contracting process. An evaluation subcommittee composed of members of the MSRC’s Technical Advisory Committee and technical staff was formed to review the applications to determine eligibility and whether minimum requirements of the RFP were met. If minimum requirements were not met, the proposal was determined non-compliant. Of the 15 proposals received, 3 were deemed non-complaint and the remaining 12 are included in the funding recommendation (outlined in Attachment 1).

An evaluation subcommittee composed of members of the MSRC’s Technical Advisory Committee and two independent evaluators reviewed and evaluated the four EV signage proposals. One proposal was deemed non-responsive because it failed to address all elements of the RFP and exceeded the available funding and therefore was not scored. A second proposal received a very low score because of several factors (outlined in Attachment 2), and the Subcommittee recommended that it not be considered for funding under any circumstance. The remaining two proposers were interviewed by the Evaluation Subcommittee to clarify elements in their proposals and were scored using the guidelines and evaluation criteria in the RFP. Attachment 2 provides final scoring for the two finalists.

Panel Composition

The evaluation subcommittees composed primarily of TAC members, and assisted by the MSRC’s Technical Advisor Ray Gorski and Cindy Sullivan of AQMD’s Technology Advancement, consisted of the following individuals:

• On-Road & Off-Road Evaluation Subcommittee: Chair David Shepherd, representing Orange County Transportation Authority; Daniela Fernandez, representing County of San Bernardino Board of Supervisors; George Karbowski, representing Los Angeles County Metropolitan Transportation Authority; and Dan Fong, representing California Energy Commission.

• EV Signage Evaluation Subcommittee: Chair Michele Kirkhoff, representing San Bernardino Associated Governments; Marilyn Williams, representing Riverside County Transportation Commission; Roberta Hughan, representing Air Resources Board; Fran Delach, representing Los Angeles Cities; Melinda Stewart, representing Orange County Board of Supervisors; and two independent evaluators with expertise in signage construction and implementation for their agencies: Peter Serdienis of the Los Angeles County Metropolitan Transportation Authority, and Jim Winter of Caltrans’ District 8.

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 that 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. The contract awards are based on current policies. However, any preference points did not affect the projects recommended for approval in this Work Program, so these projects can be awarded as recommended.

Proposal

On July 23, 1998, the TAC presented its recommendations to the MSRC, and the MSRC received public comment from prospective bidders. By the conclusion of the July 23, 1998 meeting, the MSRC adopted these second year funding projects for the FY 1997-99 AB 2766 Discretionary Fund Work Program. This action is to request Board approval of several on-road and off-road projects, two consultants for the EV Charging Station Directional Signage Implementation Program, and the remaining applications received by local governments for the Subvention Fund Match Program as part of the FY 1997-99 AB 2766 Discretionary Fund Work Program.

For the On-Road & Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Program, the MSRC recommends funding 12 proposals totaling $5,935,466 as stipulated in Attachment 1. The original RFP was allocated $3 million and included a funding limit of $1.5 million for a single entity. This funding limit was established in order to ensure geographical distribution of emissions reductions across the AQMD’s jurisdiction. However, the MSRC is recommending funding two proposals totaling $1,904,000 for Ralphs Grocery Company for two reasons. First, at its May 28, 1998 meeting the MSRC allocated an additional $3 million for a total of $6 million to this RFP, doubling available funding. All proposers were notified of this amended funding increase to the RFP. Second, the proposed Ralphs’ vehicles will be used at two different operating locations, Glendale and Riverside. This would enable meeting the objective to distribute emissions reductions throughout the Basin. The On-Road & Off-Road RFP #9798-20 is provided as Attachment 3 for your reference. The On-Road & Off-Road projects will reduce approximately 1,155,885 total pounds of NOx at an average $10,400 per ton (or $5.20 per pound) cost-effectiveness.

For the EV Charging Station Directional Signage Implementation RFP #9798-44, the MSRC recommends executing two contracts, one with Safeway Signs in an amount not to exceed $391,518, and one with The Planning Center in an amount not to exceed $63,614. The remaining $44,868 of the $500,000 will be held in reserve for possible program expansion at a later date. The MSRC’s recommendations, along with the tasks and budgets for these contracts, are outlined in detail in Attachment 2. The Signage RFP #9798-44 is provided as Attachment 4 for your reference.

At their July meeting, the MSRC requested that a portion of its discussion be included in the AQMD agenda item, referencing the benefits of this RFP process for the EV Signage contractor selection. The MSRC had initially recommended that this contract be awarded on a sole-source basis, and after much discussion, this recommendation was denied by the AQMD Board, in the anticipation that a competitive process would result in cost savings and an improved project. As a result, the MSRC expended funds and resources to develop and release the RFP, provide outreach and evaluate the responses to the RFP. Ultimately (as initially anticipated by the MSRC), no one qualified bidder or team met the MSRC’s criteria as outlined in the RFP to successfully complete the project. Due to this outcome, the MSRC has decided to take the approach in breaking up the project tasks between two contractors. It has yet to be determined that the RFP process resulted in a better project or reduced costs as opposed to the sole-source contracting approach; however, the results of this project will be closely monitored and tracked as it is implemented and the success of the RFP approach will be monitored.

There are cases in which the full amount requested is not recommended for funding and additional monies may not be available from other sources to the bidder, in which case a reduced scope of work will be negotiated. In those cases where the proposed funding level was reduced by the MRSC, and the proposer cannot come to terms on a reduced scope of work, 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 approved project by up to 5% of the project funding specified in this portion of the FY 1997-99 AB 2766 Discretionary Fund Work Program. The AQMD Board previously granted this authority for prior work programs.

For the Subvention Fund Match Program included in the first year of FY 1997-99 Work Program, the following three projects are the last of the remaining applications received by the March 3, 1998 deadline and have qualified for match funds based on the eligible categories established for the program.

• City of Beaumont - $14,883 Transportation system improvements including construction of 16,500 linear feet of Class II bike lane improvements and pedestrian amenities such as crosswalks, shelters and bike racks. MSRC funding is matched with $59,531 subvention funds and $537,249 in co-funding. This project is eligible within the transportation related land-use strategies match category. Estimated emissions reductions for this project are 285 pounds per year.

• City of Pomona - $100,000 Historic restoration of the Depot Building including structural restoration, parking lots, bus transit platform, passenger shelters and benches. MSRC funding is matched with $400,000 subvention funds and $4,602,276 in co-funding. This project is eligible within the public transportation match category. Estimated emissions reductions for this project are 2,225 pounds per year

• City of West Covina - $23,400 Purchase or lease of three EVs. MSRC funding is matched with $93,600 subvention funds. This project is eligible within the alternative fuels vehicles match category. Estimated emissions reductions for this project are 180 pounds per year

The application process and eligible match categories were established by the MSRC, and the MSRC's Contract Administrator has reviewed each application for compliance with the program. Including these last three remaining projects, a total of 99 projects totaling $2,804,335 in MSRC match funding have met program requirements. A spreadsheet listing these projects, including MSRC match and subvention funding by county, is provided with this request as Attachment 5.

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 this letter and the attached spreadsheets.

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 – On-Road & Off-Road Funding Recommendation Spreadsheet
2 – EV Signage Contract Recommendations and Scores
3 – On-Road/Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction RFP #9798-20
4 – EV Charging Station Directional Signage Implementation RFP #9798-44
5 – Subvention Match Fund Spreadsheet

/ / /