BOARD MEETING DATE: April 9, 1999 AGENDA NO. 30

Minutes from the February 25, 1999, MSRC meeting were unanimously approved, as submitted. The minutes are attached for your information (Attachment 1).

At the February MSRC meeting it was suggested that the MSRC may want to consider seeking assistance for programmatic outreach for the purpose of increasing the utilization of existing MSRC programs, thereby achieving even greater emissions reductions. In the past, efforts have focused primarily on outreach prior to, or during, the introduction of a funding category or release of an RFP, bringing in a variety of potential applicants and assisting applicants with proposals. However, there is also a need for outreach to increase awareness of existing projects and broaden participation in on-going programs such as the zero-emission vehicle (ZEV) and ultra-low emission vehicle (ULEV) buydown programs.

The MSRC directed the Outreach Subcommittee of the MSRC-TAC to research this issue and develop an RFP for the MSRC’s consideration at its April 22 meeting. The RFP will address specific tasks such as developing and disseminating marketing materials, the creation and maintenance of a web-site, and assisting potential contractors with MSRC program opportunities as well as suggested funding allocations for these tasks.

An information item was presented to the MSRC by the MSRC-TAC Chair on the status of the Fiscal Year 1999-2000 Work Program. Program implementation is as follows:

Three Program Opportunity Notices (PON) were released on February 26, 1999.Pre-proposals for two of these PONs were due in on March 23, 1999. Pre-proposals for the third PON are due by August 31, 1999. On March 23, twenty-two pre-proposals were received in response to the Innovative VMT and Trip Reduction PON and two pre-proposals were received in response to the Light Duty Vehicle Repair PON.

In addition, three RFPs were released on March 13, 1999, for Technical Assistance to Heavy-Duty Fleets, On and Off-Road Heavy-Duty Vehicles, and a Transit Bus Program. Bidders’ Conferences for these RFPs will be held in late March.

Six RFPS are scheduled for release on May 14. Solicitations include RFPs for Video-Conferencing, Land-Use, Bicycles, Rideshare Incentives, Advanced Traveler Information Management Systems, and Programmatic Outreach.

An Ad-hoc Administrative Subcommittee of the MSRC-TAC has been formed to address the management audit recommendations suggested by Thompson, Cobb, Bazilio and Associates. Dave Cowardin, Chair of the Administrative Subcommittee, provided an update to the MSRC. Mr. Cowardin reported that, as suggested by the auditors, the Subcommittee is in the process of reviewing current scope change policies and will bring any policy recommendations to the MSRC in May. In addition, Mel Zeldin shall begin working with AQMD and MSRC staff on the MSRC’s staffing budget for Fiscal Year 1999-2000.

The MSRC took the following unanimous actions on requested contract modifications:

The MSRC also received and filed a report on "Scope Changes Handled Administratively by the AQMD Contracts Administrator" which included three minor modifications for:

The MSRC's AB 2766 Contract Administrator provided a written status report on all fiscal year contracts including the Local Government Match Program. This Contract Administrator Report is attached for your information (Attachment 2).

1 -Approved February 25, 1999, MSRC Meeting Minutes
2 - Contract Administrator Report

MOBILE SOURCE AIR POLLUTION REDUCTION REVIEW COMMITTEE THURSDAY, FEBRUARY 25, 1999, MEETING MINUTES

AQMD Staff
Barbara Baird, District Counsel
Nancy Covey, Contracts Manager
Ray Gorski, AB 2766 Technical Advisor
Lilia Miranda, AB 2766 Support Staff
Doris Moore, AB 2766 Support Staff
Drue Ramirez, MSRC Administrative Liaison
Larry Rhinehart, Director of Intergovernmental Affairs
Michele Stitzel, AB 2766 Contract Administrator
Cindy Sullivan, Program Supervisor/Technology Advancement
Lupe Valdez, DEO/Public Affairs & Transportation
Jeri Voge, Sr. Deputy District Counsel
Barry Wallerstein, Executive Officer
Mel Zeldin, Director of Applied Science & Technology

CALL TO ORDER (Items 1-3)
Agenda Item #1 - Call to Order/Opening Remarks

MSRC Chair Greg Winterbottom called the meeting to order at 1:41 p.m. as a committee of the whole. A few moments later MSRC Member Bea LaPisto-Kirtley arrived and a quorum was present. Chair Winterbottom introduced Ana Ponce and Patricia Anderson, who will be handling the MSRC and TAC responsibilities (respectively) during Drue Ramirez’ absence. Chair
Winterbottom welcomed Barry Wallerstein to the meeting.

Larry Rhinehart, AQMD Director of Intergovernmental Affairs, reported that next Tuesday, March 2, the AQMD-sponsored clean fuels reauthorization bill, SB 98, will be heard for the first time before the Senate Transportation Committee. In addition, AB 38 is tentatively scheduled for hearing at the Assembly Transportation Committee on March 9.

Public comments were allowed during the discussion of each agenda item, and there were no public comments on any non-agenda items.

CONSENT CALENDAR (Items 4 through 6)
Agenda Item #4- Minutes of January 28, 1999 Meeting

ACTION: AQMD staff (Drue Ramirez) will include the minutes in Norma Glover’s AQMD Board report for the March 12, 1999 Board meeting.

Agenda Item #5 – Report on Scope Changes Handled Administratively by the AQMD Contracts Administrator

A report on "Scope Changes Handled Administratively by the AQMD Contracts Administrator" for February 1999 was included in the agenda package. This report included one minor contract modification for Metallic Power Contract #96013.

ON MOTION BY ALTERNATE MSRC MEMBER JACKI BACHARACH, AND SECONDED BY MSRC VICE CHAIR GWENN NORTON-PERRY, UNDER APPROVAL OF THE CONSENT CALENDAR, THE MSRC UNANIMOUSLY RECEIVED AND FILED THE REPORT ON SCOPE CHANGES HANDLED ADMINISTRATIVELY BY THE AQMD CONTRACTS ADMINISTRATOR FOR THE MONTH OF FEBRUARY 1999.

The AQMD AB 2766 Contract Administrator Report was included in the agenda package, including contract status reports on all fiscal years and the Subvention Fund Match Program.

ACTION: AQMD staff (Drue Ramirez) will include the AQMD Contract Administrator Report in Norma Glover’s AQMD Board report for the March 12, 1999 Board meeting.

ACTION CALENDAR (Items 7 through 12)
Agenda Item #7 - MSRC-TAC Report and Recommendations on Contract Modifications by Contractors and Potential Contractors

Michele Stitzel, AQMD AB 2766 Contract Administrator, reported that there is only one contract modification request. The City of Bell had requested an extension until June 30, 1999 to utilize some funds that were left on their contract that ended in November. The MSRC approved their request with a condition that the contractor return to the Committee in February with a service continuation plan detailing how the city would continue to provide service when MSRC funding ended. The TAC encouraged the SCDC contractor from the fleets group to gather letters of support from those cities that normally put in their subvention funds. The continuation plan was submitted. Seven letters from participating cities have been received saying that they will be contributing a portion of their subvention funds to continue operating the shuttle probably until December 1999. One additional letter was received from Assembly Member urging the MSRC to continue funding through June.

MSRC Member Bea LaPisto-Kirtley is in favor of continuing funding through June especially since cities have expressed support. If they feel it is a worthwhile program then they will hopefully be able to fund the project beyond June and hopefully through December.

MSRC Member Will Kleindienst asked how much money has been committed based on the letters received. Ms. Stitzel replied about $80,000. The MSRC contract is about $200,000 total. The MSRC pays $1.96 per trip, or about half.

MSRC Vice Chair Gwenn Norton-Perry stated that it needs to be clear to the contractor that the MSRC funding will end on June 30, 1999.

ACTION: MSRC staff (Lilia Miranda/Doris Moore) will process the contract modification accordingly.

Agenda Item #8 (a-e) – Consider/Approve the Program Opportunity Notices and Requests for Proposals Under the FY 1999-2000 Work Program

MSRC-TAC Chair Michelle Kirkhoff reported that these PONs and RFPs are the result of work done this fall to kick off the FY 1999-2000 Work Program. This is the first phase of release of PONs and RFPs. There will be another in April or May.

Ms. Kirkhoff addressed Item 8.a., a PON for the Light Duty Automobile Repair Assistance Program. The idea is to put up 50% of the funding to get a repair program up and running. The goal is to repair a minimum of 300 vehicles so that they are brought up to smog regulations and certification and jump start a program in the south coast air district for the purpose of reducing mobile emissions. There is a similar program being operated in San Diego.

MSRC-TAC Member David Cowardin explained that $1.5 million has been allocated for the PON for Innovative VMT and Trip Reduction Strategies. The first category of this PON is to try to come up with state-of-the art information technology as a means of distributing ridesharing information. The second category is to fund programs that optimize reduced fleet vehicle miles traveled. The third category invites the submission of innovative projects that reduce VMT or automobile trips through employer-based rideshare incentive programs. The intent is to target non-regulated employer sites.

Alternate MSRC Member Jacki Bacharach stated that she believes there should be something in the PONs that says that proprietary information will be protected. If such language is not included, the MSRC may not receive certain proposals.

Jeri Voge, Senior Deputy District Counsel, commented that a company can always request or claim confidentiality. The obligation is on them to communicate that in their submittal. However, she doesn’t see any problem with including something in the PON saying that if a company has an idea that may contain propriety information, it will be protected.

Michele Stitzel, AB 2766 Contract Administrator, stated that 1,600 copies were already printed to be mailed today. MSRC Chair Greg Winterbottom suggested slipping an insert into the PON mailing instead of revising the PON.

MSRC-TAC Chair Michelle Kirkhoff stated that there have been instances where RFPs for research and development have been submitted to the TAC where the information was their own product that they wanted to take to the next step. The person submitting the proposal has typically been directed to stamp "confidential" on the pages that they prefer not to release. This is nothing new, and the Committee is more than willing to accommodate proposers.

Jacki Bacharach asked that in the future a standard clause be included in the contracts and PONs, and agreed to let this one go out as is.

ACTION: District Counsel staff will draft suggested proprietary language to be included in the PONs.

MSRC-TAC Vice Chair Doug Kim explained that the next three items are going to deal with clean fuel trucks and buses. AQMD will also be soliciting about $12 million for heavy-duty programs through the Carl Moyer Fund.

The first RFP is for the Alternative Fuel Transit Bus Program. Six million dollars are recommended for this program to fund clean fuel buses, similar to what the committee has done in the past; but this year it is intended to help incentivize small transit operators and first-time clean fuel bus programs. Secondly, the MSRC would provide some supplemental training for mechanics who now have to deal with a new technology like natural gas. Hopefully these are the kinds of things that will get small transit operators and first-timers to come to the table. Some geographic minimums have also been set so that every county in this region will get its fare share, if there is a demand. If a county doesn’t have $800,000 in demand, then that money can revert back to the MSRC pot and be redistributed, as appropriate.

MSRC Member Bob Bartlett asked if the MSRC can receive Carl Moyer funds. Doug Kim replied that the ARB is holding a public hearing today to allocate those funds to different air districts and that this year the MSRC will not be eligible to receive Carl Moyer funds. All the moneys being discussed today for the work program are strictly AB 2766 discretionary funds. There are no Carl Moyer funds involved.

Ray Gorski stated that the ARB has put together their final guidance and that they are seeking approval from their Board of governors today for how the first year program will be structured. For this year, the program is pretty much definitized. The money will flow to the SCAQMD. A subsequent program will be defined, most likely, by a piece of legislation that has been introduced by the Speaker of the Assembly, Antonio Villaraigosa.

MSRC-TAC Vice Chair Doug Kim continued his presentation on the Alternative Fuel Transit Bus Program. Alternate MSRC Member Jacki Bacharach asked if there is a test to demonstrate cost-effectiveness. Ray Gorski replied that the TAC is recommending to the MSRC that when the program initially begins, proposals or applications for transit buses be accepted on a first-come, first-served basis, until the geographic minimum has been satisfied for that region. He added that $12,000 per ton is the threshold that ARB has established for cost effectiveness, which all projects must meet.

Alternate MSRC Member Jacki Bacharach asked that the RFP be changed to state that the "geographic funding and other criteria" should be met. The way it reads now implies that the only thing that has to be met is the geographic requirement.

ACTION: MSRC Member Bob Bartlett asked for something in writing that delineates the MSRC’s role in the Carl Moyer Fund Program.

Agenda Item #8. d. – RFP for Heavy-Duty Vehicle Diesel Pollution Reduction Program

MSRC-TAC Vice Chair Doug Kim continued with the On-Road and Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Program RFP. This $3.4 million is to fund the higher costs of clean fuel trucks. The TAC is recommending that part of the funding be made available to clean fuel trucks that are purchased under the AQMD’s Carl Moyer program. However, since the Carl Moyer program cannot provide funding for fueling facilities, the TAC is recommending that the MSRC allow those vehicles to be eligible for funding for clean fuel fueling facilities as well. It is viewed as one of the main ways that the MSRC can work together with the AQMD to craft the most successful program possible.

Barry Wallerstein, AQMD Executive Officer, emphasized that the AQMD has embarked on a path of working together with the MSRC on this effort. There are three representatives of the MSRC/MSRC-TAC working with AQMD staff to craft its program to leverage moneys and complement MSRC efforts, not to be in conflict. He has spoken to staff about the desire to complement the MSRC in that if they have more proposers for some of their program areas than they have funding, a mechanism can be created to allow those to move over into Carl Moyer funds. In addition to the MSRC/MSRC-TAC members, the ongoing working group consists of representatives from the ARB, ports, construction industry, and people interested in off-road equipment, etc. The Carl Moyer process calls for the air districts to submit a formal application by April 1 to the state ARB. The AQMD, together with the ongoing working group, will structure its proposals, the evaluation of the proposals, and then recommendations will go to the AQMD Governing Board.

Alternate MSRC Member Jacki Bacharach noted that on superpage 77 it states that because airports are covered under a consultative process, the projects in this state are not eligible for MSRC discretionary funds, which implies that the consultative process is a funding source. Ray Gorski replied that the AQMD, the ARB, and the large airports within the region are currently in the process of establishing an MOU to upgrade their current high polluting diesel ground support equipment, tractors, etc. The ARB has asked that the MSRC not step in at this juncture to incentivize something that the ARB hopes they will be doing in the format of an MOU in the very near future.

Agenda Item #8. e. – RFP for Technical Assistance in Support of MSRC’s Heavy-Duty Vehicle Programs

MSRC-TAC Vice Chair Doug Kim continued with the third and final RFP entitled: Technical Assistance to Fleets Participating in the On-road, Off-road Heavy-Duty Vehicle Diesel Pollution Reduction Program. The TAC is recommending setting aside $200,000 to assemble a technical team of experts that would provide comprehensive outreach to these fleets. A task force will go out to the fleets themselves to talk to them about the funding opportunities that the MSRC offers and also mention other funding opportunities like the Carl Moyer program. They will also help them identify what types of fueling facilities work best for them. The total funding available under this RFP is $200,000. It’s on a task order basis only, so the program can be amended, if need be, to maximize its effectiveness.

MSRC-TAC Member David Cowardin stated that since it is clear that the MSRC is going to have to work in concert with the AQMD because they are going to be moving on similar tracks, it would be nice to formalize the working relationship between the two.

ACTION: AQMD staff (Drue Ramirez) will prepare the appropriate Board letter for submittal to the AQMD Board for its March meeting requesting approval to release the RFPs. Staff (Michele Stitzel) will follow through with the PON mailing.

Agenda Item #9 – Consider Reallocation of ZEV Buy-Down Program to Support Purpose-Built Fleet ZEV Buy-Down Program

MSRC-TAC Chair Michelle Kirkhoff reported that in the late fall, a lot of the air districts in California were approached by the U.S. postal service to see if they were interested in working on deploying a 500-vehicle fleet of electric vehicles. These would be their special purpose built vehicles that are right-hand driven. The way the MSRC’s buy-down program currently exists, these vehicles would not comply or conform under the MSRC’s existing buy-down program. This RFP is a little bit more flexible to accommodate these purpose-built special vehicles. Approval is being sought to release the PON, set aside $3 million that’s in the larger EV buy-down program, create this category and accept applications and bring them to the MSRC on a case-by-case basis over the next six months. Immediately, the post office is expected to apply.

MSRC-TAC Chair Michelle Kirkhoff went on to say that it is not a requirement that all the vehicles be right-hand drive, just purpose built. Some interest has been expressed by police departments to fund their parking meter scooters. These could qualify under this program. The post office is proposing that 340 of the vehicles be placed in our air basin; another hundred in San Diego, Sacramento and Oakland, and a few would be scattered in Washington, D.C. However, they can only apply to the MSRC for vehicles that are placed in our air basin.

ACTION: Staff (Michele Stitzel) will follow through with mailing all three PONs.

Agenda Item #10 – Consider/Approve Heavy-Duty Program Announcement Brochure and Consider Granting MSRC-TAC Authority for Approval of Future Brochures Where Time Constrains Apply

Michelle Stitzel, AB 2766 Contract Administrator, is seeking approval of the heavy-duty vehicle program brochure. She asked that the Committee verify the accuracy of the names and titles listed on the brochure. The mailing of these brochures will occur in about a week.

Ms. Stitzel stated that in the past all RFPs went to the AQMD governing board for approval so that there was about a two week delay from the time the MSRC approved the RFPs and the time the AQMD Board approved them for release. A proposal will be considered by the AQMD Board in April to revise its policy to allow RFPs to be released without Board approval. They will, instead, receive a report of RFPs released. This will create a timeline problem in that the MSRC will be approving the brochures and the RFPs at the same time. Michelle suggested that the TAC be authorized to approve the brochures at their meetings, thereby allowing a one-week gap between the mailings of the brochures and the mailings of the RFPs to give the potential proposers a "heads up." The brochures will then be placed in the MSRC agenda package as an information item.

MSRC-TAC Chair Michelle Kirkhoff added that the information contained on the brochures is taken from the RFPs. The categories and the funding amounts are already set in the work program.

Alternate MSRC Member Jacki Bacharach asked if it is against the Brown Act for the MSRC to receive the brochures before the TAC meeting. If not, she asked that the brochures be faxed to the MSRC and, if they have any comments, Michelle Stitzel can report them at the TAC meeting. Jeri Voge, Senior Deputy District Counsel, will provide a legal opinion.

ACTION: Jeri Voge, Senior Deputy District Counsel, will provide a legal opinion as to whether it is against the Brown Act for the MSRC to receive the brochures before the MSRC-TAC meeting.

Agenda Item #11 – Consider/Discuss AQMD’s Request Regarding New MSRC Policy/Contract Language Which Will Enable SIP Credits for Emission Reductions Achieved by MSRC Contracts

Lupe Valdez, AQMD DEO/Public Affairs & Transportation, reported a Task Force was formed to look at impacts under changed Rule 2202 and address emission shortfalls. MSRC projects were identified as one of the most viable sources of NOx emission reductions available for this short term short fall. Staff presented this to the MSRC TAC and they recommended approval of the proposed contract language with the addition of the following: "1. The AQMD staff if requested can take over data collection, quantification, and reporting responsibilities; 2. The intent of this language will be used for heavy-duty vehicle contracts only; and 3. It is at the discretion of the MSRC as to what project would be subject to the reporting provisions." As stated in the contract language, this is an annual reporting mechanism for five years.

MSRC-TAC Chair Michelle Kirkhoff stated that the Committee has been working with the AQMD for several months to try to come to terms and agreements that wouldn’t turn away prospective bidders and proposers. She believes the MSRC can assist the AQMD in meeting the SIP requirements as well as continue their own programs without any disruption. Ms. Kirkhoff asked for clarification of the first paragraph on superpage 127 which states "AQMD reserves the right to verify the information provided."

Lupe Valdez, AQMD’s DEO/Public Affairs & Transportation, replied that there has to be a way to verify the data submitted. If a person said that they operated eight vehicles, someone would have to make sure that those vehicles operated during that time and that the emission reductions were achieved. She could not say that a statement would be taken or that an audit would not take place.

MSRC-TAC Chair Michelle Kirkhoff suggested that language be included about record keeping for "x" period of time be maintained in the event of an audit. Another item Ms. Kirkhoff wanted to bring up is superpage 126, the 4^th paragraph, which reads "AQMD staff will assist MSRC staff in collecting…" and then "if the MSRC determines that dealing with the data collection and reporting adversely affects MSRC staff, AQMD staff will perform this function." She would prefer, and recommends to the MSRC, that it be understood that once the contract ends, the data collection is the AQMD’s responsibility. It should be explicitly stated that the AQMD will be doing the data collection, since the SIP credits will be the AQMD's. Ray Gorski added, however, that there will need to be some coordination in this effort.

MSRC-TAC Member Gretchen Hardison commented that the City of Los Angeles has some concerns about how this contract language might affect local agencies and private industries that might want to apply for MSRC funds. The City feels that the air quality benefit for these projects should be shared with the contractor and consulted about the application of emission reductions to the SIP on a proportional basis. Is there a way to know up front how the air quality benefits, that result from that project, are going to be used? Some of that air quality benefit has been used in the past as CEQA mitigation for projects. Is that still possible if these emission reductions are part of the SIP demonstration. Is that double counting?

Barbara Baird, District Counsel, replied that the MSRC currently will pay the incremental costs of converting something into an alternative fuel vehicle or purchasing the alternative fuel vehicle instead of the conventional vehicle. The MSRC’s current policy is to require that the portion of ERCs generated by MSRC funding must be retired. This would be the same thing except it would make those credits available for SIP credit to reap the benefit rather than simply retiring. If, however, the local agency or the project proponent only asks for part of those incremental costs, and paid itself part of the incremental costs, the MSRC contract provides that it would be eligible for their share if they want to convert that into ERCs. As far as the CEQA mitigation, that remains between the contractor and the lead agency.

MSRC-TAC Chair Michelle Kirkhoff stated that the Committee is currently only recommending heavy-duty projects be used for SIP credits and it’s up to MSRC to identify which projects will go toward SIP credits. This will not be retroactive.

MSRC-TAC Member Gretchen Hardison asked if the city or contractors contributed a portion of the incremental costs, could that portion be applied to a different part of the SIP demonstration; not necessarily Rule 2202, but to a shortfall in another area?

Barbara Baird, District Counsel, stated that the city can direct how to convert those credits into emission reduction credits to be applied anywhere it wants. If they want to just donate them to somebody else’s shortfall, the AQMD will work with them to do that. If they want to convert them to credits and sell them to somebody who needs them, that’s fine.

Agenda Item #12 (a-b) – Report of the MSRC-TAC Administrative Subcommittee

Agenda Item #12. a. – Consider/Further Discuss Management Audit Recommendations from Subcommittee and File Management Audit Recommendations from Thompson, Cobb, Bazilio & Associates

MSRC-TAC Member David Cowardin reported that at the last meeting three items were held from the report having to do with the administrative audit. The first item was the report, which the MSRC has now received; the second is no longer necessary, since the Subcommittee has been working closely with the AQMD to improve communications; and the third item is sort of a gratuitous comment about communications amongst us all. The audit report will be accepted as a challenge to improve and move forward.

MSRC Chair Greg Winterbottom added that the MSRC received the report and the other questions have all basically become moot.

Alternate MSRC Member Jacki Bacharach asked about the organization chart on superpage 142. It appears as if the MSRC does not have direct access to staff unless they go through the MSRC-TAC. MSRC-TAC Chair Michelle Kirkhoff explained that the consultant was attempting to make sense of the process. However, the organization chart is inaccurate. It would better define the working relationships if the line from the MSRC to MSRC-TAC were dotted, instead of solid. In addition, because of the recent AQMD reorganization, the org chart is now outdated. MSRC-TAC Member David Cowardin commented that the Subcommittee can consider preparing a revised organization chart in the future.

ACTION: Ms. Bacharach asked that an updated organization chart be prepared for dissemination to the MSRC.

MSRC-TAC Member David Cowardin requested that Recommendations 3 and 7 be eliminated from the report, since at this point, these recommendations are no longer necessary because of the discussions with Dr. Liu and the MSRC’s cooperative efforts.

Agenda Item #12. b. – Update on Implementation of MSRC Directives Relative to Administrative Streamlining and Efficiency

MSRC-TAC Member David Cowardin turned Item 12.b. over to Eudora Tharp, Acting Director of Administrative & Human Resources to clarify the classification study process. Ms. Tharp reported that Human Resources will be conducting the requested two classification studies, in conjunction with other clerical classification studies requested by the Union. It will be on a compressed timeline and hopefully there will be a Board letter for the Administrative Committee to review in May, with a recommendation to the AQMD Board in June. All of this, however, is subject to discussions with the Union first.

MSRC Chair Greg Winterbottom expressed appreciation for the AQMD’s efforts. MSRC-TAC Chair Michelle Kirkhoff clarified that it is the intent to have MSRC-TAC Member David Cowardin and the Subcommittee to work with AQMD staff and report monthly to the MSRC on this issue.

MSRC-TAC Member David Cowardin reported that Recommendations 4 and 6 have to do with other issues of time spent, secretarial, legal and that sort of thing. The Subcommittee will be delving into those areas as the budget deliberations come up in April or May.

ACTION: The Administrative Subcommittee will continue to work with AQMD staff on the reclassification issue.

Lupe Valdez, AQMD’s DEO/Public Affairs & Transportation, reported on the AQMD’s recent reorganization and distributed the overall reorganization chart. The new organization chart will take effect on March 1, but some aspects may take through the month of March to finalize. Ms. Valdez noted that there are some vacancies, indicated on the org chart by blank lines. The Purchasing and Contracts staff will now be under the Finance group. Information Management is now under Administrative Services. With the departure of Vinita Mathur, Chris Marlia will be acting Director of Information Management. Dr. Chung Liu, DEO/Science & Technology Advancement, will be the MSRC Liaison. Therefore, this will be Larry Rhinehart's last meeting. The Planning, Rules & Area Sources Group will be headed by Jack Broadbent, DEO, with Elaine Chang as Assistant DEO. Newly added is the Area Sources group and Lee Lockie will serve as Director of that group. Transportation Programs will now be a part of Public Affairs, a change that actually occurred in September of last year. SSC is now going to be Engineering and Compliance, with Carol Coy as DEO and Mohsen Nazemi as Assistant DEO. In addition to that, the AQMD will be trying to split up permitting and compliance responsibilities, however, there are some complex areas with regard to toxic waste management/RECLAIM that cannot be separated. Outside of that, Compliance teams are going to be geographically deployed; a neighborhood deployment. Ms. Valdez asked the Committee to let her know if they would like to receive a complete copy of the organization chart, which is about 30 pages. Reorganization charts will be available on AQMD’s website.

MSRC-TAC Chair Michelle Kirkhoff asked for clarification on the reporting of MSRC staff. Ms. Valdez clarified that MSRC support staff will be reporting to Dr. Liu. Ms. Kirkhoff wondered if Dr. Liu will be replaced on the MSRC-TAC or serve both as MSRC Liaison and MSRC-TAC Member. Ms. Valdez replied that she does not know what the plan is at this time.

Agenda #14- Other Business

MSRC Member Will Kleindienst asked to continue the conversation about the Carl Moyer program.

MSRC-TAC Chair Michelle Kirkhoff reported that when the Moyer program started to be formed at the ARB level, there was some MSRC involvement. A lot happened in the December/January time frame, and then AQMD formed their Moyer Committee in January. There are still some issues to work out related to the MSRC’s role, not just for this program, but more importantly for future programs, should the Moyer program become an annual program. At the last MSRC meeting AQMD stated that they would not use any of the MSRC funding as a match, but their recent plan does call to use our funding as match funding, so there have been some changes and there are some nuances to it that really still aren’t clear.

Ms. Kirkhoff also clarified that in the Villaraigosa bill, which was kind of the precursor to the Moyer program, the MSRC was identified as a separate entity, as a separate recipient of Moyer funds. That bill was vetoed by the governor because he wanted to do a one-year program and put it into the ARB’s budget. So when the ARB started crafting this new program they started with the Villaraigosa bill, but then they took some things out. For instance, the governor didn’t want to use the money for infrastructure so that got taken out. Also what was excluded was the MSRC getting these funds directly. What the ARB has told the MSRC is that if it wants the funds it needs to go through the AQMD. There are some long-term implications if our funds are to continue to be used as match. Does the MSRC want to continue to pursue the funds, should there be an annual bill?

MSRC Chair Greg Winterbottom stated that the MSRC is specifically exempted from applying for any of the Moyer money under the current statute.

MSRC-TAC Chair Michelle Kirkhoff added that according to the ARB there is a kind of loophole on how the AQMD can use MSRC funds. The ARB guidelines state that air districts throughout the states can use any funding as match if it’s under their budget authority. So the AQMD considers that the MSRC program is under their budget authority because it has to take their programs to them for ratification every year. So that’s how they are able to use MSRC money as match so they can then get more money into the air basin.

MSRC Member Bob Bartlett asked who from the MSRC is on the AQMD’s Moyer Committee? MSRC Chair Greg Winterbottom replied that he, Michelle Kirkhoff and Doug Kim represent the MSRC/MSRC-TAC on the Committee. There are a total of 12 people on the Committee.

Alternate MSRC Member Jacki Bacharach asked if the MSRC could we get a fact sheet on the Carl Moyer program.

Cindy Sullivan, AQMD’s Program Supervisor/Technology Advancement stated that a proposal is going to the AQMD Board for the ARB. It is very broad and mirrors what the ARB has said to spend the money on, i.e., trucks, buses, ports, ships, stationary ag pumps, etc. It doesn’t stipulate that "x" amount of money is going to be spent on any particular item. It simply states that the AQMD will take the money and spend it on a program that mirrors the ARB program.

MSRC Member Bea LaPisto-Kirtley asked if the Moyer funds are already pre-set by the ARB whether they come directly to the MSRC and go through the AQMD.

MSRC Chair Greg Winterbottom replied that the Moyer dollars can only be spent on very specific issues where they relate to MSRC. For example, MSRC funds cannot be used to match ag pumps.

MSRC-TAC Chair Michelle Kirkhoff asked for clarification on the SIP credits issue. Ms. Sullivan replied that the ARB has said that they will work with the air districts on the issue of SIP credits. The ARB initially said that they were going to use all the credits to satisfy the state-wide SIP, but the air districts objected, and so ARB agreed to work with the air districts to see that everybody gets some of the credits.

Ms. Sullivan reported that the AQMD is putting up as match other moneys besides the MSRC money. TAO money is also included in that match. There are a variety of funding sources that are available as match. The AQMD needed $5 million dollars as match. They have $5 million from other places besides the MSRC. The AQMD wants to show ARB that, if it puts all of its resources together, it could take all the $25 million.

MSRC Chair Greg Winterbottom suggested that a meeting be convened to discuss the Moyer program and get a better understanding of all the issues.

MSRC-TAC Chair Michelle Kirkhoff reiterated her understanding of the discussion thus far: There needs to be a two-prong approach, some discussion with legislators; and something in writing about the role the MSRC could play in the future if the Carl Moyer program is annualized. Also, since MSRC Member Bea LaPisto-Kirtley is the Chair of the AQMD’s Legislative Committee, these issues can be discussed in that Committee. In addition, discussions can take place at the AQMD Board level or policy level as to what the MSRC’s role could be. Covering those two tracks, the MSRC could carve out a role for itself.

MSRC Member Bea LaPisto-Kirtley stated that, with a new focus, a new administration, and new discussions, in subsequent years the MSRC would like to be considered as a component in the Carl Moyer program, and be included in the process.

MSRC Chair Winterbottom suggested that a letter be drafted and faxed to the MSRC members requesting comments by March 5. It should then be signed and sent to Villaraigosa as soon as possible.

MSRC-TAC Chair Michelle Kirkhoff suggested that, since Doug Kim is the Chair of the Heavy-Duty Vehicle Subcommittee, he should draft the letter to Villaraigosa asking him to consider the MSRC eligible for Carl Moyer funds. Also include in the letter the good things that the MSRC has done and how it is effective and efficient and can really get the job done. Ms. LaPisto-Kirtley asked that a copy be sent to Assembly Member Longville.

Alternate MSRC Member Jacki Bacharach reminded the Committee that the MSRC has a legislative place on its agenda at every meeting. The MSRC’s legislative position could be discussed at that time.

MSRC-TAC Chair Michelle Kirkhoff said that the MSRC has not been real good about tooting its own horn. They don’t have a Public Information Officer. There are signs going up directing electric vehicle owners to charging stations. They are under construction right now in San Bernardino County. They are on the freeways, on the streets and roads. She wanted to do a press release but there was no avenue available to accomplish this task. The MSRC does not have any funds to do those kinds of things.

Michelle Stitzel, AB 2766 Contract Administrator, provided some history. She indicated that in the past the MSRC had entertained the idea of creating a video and outreach, but District Counsel staff (at that time Denise Brue) opined that the Committee could not use the funds for that purpose.

MSRC-TAC Chair Michelle Kirkhoff added that the MSRC may be able to position a contractor who can help them create awareness and to promote its projects. As projects come on line, that result in emission reductions, this contractor could be contacted for assistance. Perhaps the MSRC may want to look at setting funds aside for doing a task order when these types of instances come up, if legal feels that that would be an appropriate use of funds.

Ms. LaPisto-Kirtley added that in speaking with Lupe Valdez, AQMD’s DEO/Public Affairs & Transportation, she indicated that anytime the MSRC uses its money for projects that result in emission reductions, for which the AQMD is getting credit, they can be included in the press release, because of their partnership. Ms. Valdez asked that she be notified with the name of the contact person.

ACTION: MSRC-TAC Vice Chair Doug Kim and the Heavy-Duty Vehicle Subcommittee will draft a letter in the next week or so identifying that the MSRC would like to be eligible for future Moyer dollars. The letter will identify the good things the MSRC does and express the Committee’s willingness to continue working with the AQMD to craft the best program possible for Southern California.

ACTION: Ms. Bacharach asked MSRC Chair Winterbottom if he would feel comfortable calling Assembly Member Longville about the letter and notifying him that it’s on its way. Chair Winterbottom agreed to place the call.

ACTION: MSRC Member Bob Bartlett asked District Counsel staff to provide a legal opinion as to whether the MSRC can or cannot advertise its emission reduction programs. MSRC-TAC Chair Michelle Kirkhoff stated that she will work with Jeri Voge, Senior Deputy District Council, to bring it to the MSRC.

There being no further business, the MSRC meeting adjourned at 3:45 p.m.
[Prepared by Ana Ponce]

AB 2766 CONTRACT ADMINISTRATOR REPORT
Prepared for the March 25, 1999, MSRC Meeting

*Event*	*Date*
EV Charge Application Released	February 12, 1999
Three PONs Released: -Light Duty Vehicle Repair -Innovative VMT and Trip Reductions -ZEV Buy-Down Program	February 26, 1999
Heavy Duty RFPs Released	March 12, 1999
PON Proposals for Light Duty and VMT Due	March 23, 1999
HD Tech. Assistance RFP Workshop	March 26, 1999
HD Transit and On/Off Road Workshops	March 30, 1999
EV Charge Application Workshop	March 31, 1999
TCM RFPs Released	April 9, 1999
TCM Bidders’ Conference	April 28, 1999
Heavy-Duty Applications Deadline	July 30, 1999
TCM Proposals Due	TBD

Separate brochures/announcements will be mailed out for the EV Charge application, the PONs, the Heavy-Duty Program, and the TCM Program.

Twenty-four contracts have been executed under the 1998-99 Work Program. Eight contracts are still in the review and signature process. ISE Research ($200,000), Nationwide Environmental Services ($400,000), and United Airlines ($140,000) declined their awards and the funds will revert back to the Discretionary Account. In addition, DWP will not utilize its entire award and $120,000 will revert back to the Discretionary Account.

EV Charge
The EV Charge Application was released on February 12, 1999. Over 3500 program announcements have been mailed out. Recipients of the announcement include the parties on the MSRC’s mailing list, the Quick Charge participants, all City Managers and Subvention Fund coordinators, and the AQMD’s list of employers with over 250 employees. An application workshop will be held at the AQMD on March 31, 1999, from 9:30 a.m. to 11:30 a.m. in CC6.

EV Signage
Safeway Signs continues to make good progress with its project to install electric vehicle charging station directional signs. Safeway began its task in the Inland Empire and the first signs were installed on February 24, 1999, for the Montclair, Ontario Mills and Fontana Quick Charge sites.

Local Government Subvention Match Program
Thirty-nine cities have completed their projects and invoiced for their share of the matching funds totaling $645,294. Two cities, Santa Fe Springs and Ontario, are unable to proceed with their projects and have declined their awards. As a result, $89,000 returning to the Discretionary Fund account. At its January meeting, the MSRC approved a recommendation for a six-month extension to the June 30, 1999 project deadline. Contractors will have until December 31, 1999 to complete their projects. Reports and invoices will be due by January 31, 2000. Notices were sent to all active contractors. To date three cities have taken advantage of the extension. A status update spreadsheet is provided in this agenda package.

Corridor Community Electric Vehicle Infrastructure Contracts
All electric vehicle charging stations funded under this program were required to be installed by December 31, 1998.

Corridor Community Electric Vehicle Infrastructure Invoices for February
One invoice totaling $11,377 was paid.

Status of the FY 1991-92 through FY 1997-98
Status Reports are attached at the end of this report.

FY 1993-94
All contracts are closed. A legal issue with Calstart is still unresolved and pending in AQMD’s District Counsel office.

FY 1994-95
Only one contract with LADOT, for the purchase of 4 hybrid-electric vehicles, remains open under this work program. The first vehicle is scheduled for delivery and acceptance in April. LADOT is two months delinquent with progress reporting and has been contacted.

FY 1994-95 Invoices Received in February
No invoices were processed this month.

FY 1995-96
All contractors are current with progress reports. A final report has been received from the Entertainment Industry and a summary of that report can be found in this agenda package.

FY 1995-96 Invoices Received in February
Five invoices totaling $37,918.18 were processed this month.

FY 1996-97 Supplemental Work Program
All contractors are current with progress reporting.

FY 1996-97 Supplemental Invoices Received in February
Four invoices totaling $138,403.75 were processed

FY 1997-98
Two of the nine active contractors, American Lund and Clean Air Partners, are delinquent in reporting. Reminder notices have been sent to delinquent contractors.

FY 1997-98 Invoices Received in February
Five invoices totaling $37,918.18 were processed this month.

Attachments
• Contract Status Reports
• Quick Charge Community Corridor Status Report
• Local Government Subvention Fund Program