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PROPOSAL:

Recognize and Appropriate Funds from ARB and Execute Contract to Cost-Share Demonstration of Electric Vehicle Rental Program

SYNOPSIS:

On February 12, 1999, the Board approved execution of a contract with EV Rental Cars for the demonstration of an electric vehicle rental program using Clean Fuels Program funds in the FY 1998-99 budget. Cost-sharing from ARB is to be passed through the AQMD, requiring execution of a contract between the two agencies. The required contracts were not fully executed prior to the end of FY 1998-99 due to procedural delays. This action will allow the contracts to be fully executed. Total project cost is $552,000 in funds and $623,755 in-kind. AQMD’s contribution shall not exceed $200,000. ARB’s contribution will be $100,000 in funds to be passed through the AQMD, and $100,000 in-kind.

COMMITTEE:

Technology, July 16, 1999, Recommended for Approval

RECOMMENDED ACTION:

1. Recognize $100,000 in revenue from the ARB.
2. Appropriate $100,000 from the Undesignated Fund Balance to the Services and Supplies Major Object, Professional and Special Services Account of the Technology Advancement office.
3. Appropriate $200,000 from the Clean Fuels Fund to the Services and Supplies Major Object, Professional and Special Services Account of the Technology Advancement office.
4. Authorize the Chairman to execute a contract with the ARB to co-sponsor demonstration of electric vehicle rental program for an amount, from ARB, not to exceed $100,000, to be passed through to the selected proposer.
5. Authorize the Chairman to execute a contract with EV Rental Cars to demonstrate an electric vehicle rental program in an amount not to exceed $300,000 from the FY 1999-2000 Budget as specified in the above actions.

Barry Wallerstein, D.Env.
Executive Officer

Background

At their October 9, 1998 meeting, the Governing Board approved the release of RFP #9899-12 to solicit bids for demonstration of an electric vehicle rental program in several locations with high public exposure. One proposal by EV Rental Cars Company was received by the December 11, 1998 closing date. The proposal was recommended for award, and was approved by the Governing Board at the February 12, 1999 meeting.

Subsequent to the Board approval, the contracting process required the execution of a contract between the AQMD and the ARB, prior to the execution of a contract between the AQMD and EV Rental Cars. This is because the ARB is also a co-sponsor to the program, and its contribution is to be passed through the AQMD. However, due to procedural delays in the contracting process between the two agencies, the contracts could not be executed prior to the end of FY 1998-99. Therefore, staff is recommending completing the execution of the required contracts for the demonstration of electric vehicle rental program by EV Rental Cars, using funds to be passed through from the ARB and the Clean Fuels Fund.

Outreach

As described in the previous recommendation, 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:

Additionally, potential bidders were notified from the Los Angeles County MTA and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Notices of the RFP 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 and Job Opportunities" icon] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

One proposal was received by the December 11, 1998 closing date. It was reviewed and evaluated according to established AQMD guidelines. The evaluation process involved two steps. First, the proposal was evaluated using technical criteria. The proposal receiving a score of at least 70 out of 100 points was considered technically qualified and eligible for the contract award. Next, the technically qualified proposal was evaluated using the criteria of "cost per program innovation, number, and type of electric vehicles, and direct co-funding from sources other than AQMD," as outlined in the RFP. Using this two-step selection process, the proposal from EV Rental Cars is recommended for award. A summary of the panel’s scoring is included as Attachment A.

Evaluation Panel

The three-member RFP evaluation panel consisted of two AQMD and one ARB staff. Of these panelists, three are Caucasian; one is female and two are male.

Proposal

EV Rental Car’s proposal adheres to the tasks described in the RFP’s work statement and satisfies the requirements of the RFP’s technical and cost sharing criteria. The proposal focuses on establishing a successful electric vehicle rental program at eight locations in California, with an emphasis on the South Coast Air Basin. In total, forty-four electric vehicles will be introduced at Los Angeles International, Ontario International, John Wayne, Burbank, and Sacramento International airports, and Sacramento Downtown, Beverly Hills, and Anaheim areas.

The forty-four rental vehicles will be comprised of General Motors EV1 with lead-acid and nickel-metal hydride batteries, Honda EV Plus, Ford Ranger EV, and Toyota RAV-4 EV. Budget Rent a Car will provide all vehicle rental facilities at the above locations through its contract with EV Rental Cars. At each location, an adequate number of chargers will be installed.

EV Rental Cars will implement a rental system that will be integrated with the Budget Rent a Car system, streamlining the process for customers and Budget staff. The program will be managed with the operational objective of an above-sixty-percent vehicle utilization rate. A special government employee rental rate of $37.95 per day will be guaranteed for the duration of the demonstration.

Benefits to AQMD

The proposed project is included in the November 1998 update of the Technology Advancement Plan under Projects 98M2-4 "Development and Demonstration of Charging Equipment for Electric Vehicles," 98M2-5 "Development of Electric Vehicle Infrastructure Technology," and 98M2-6 "Advancement of Batteries and Energy Storage Devices for Electric Vehicles." The AQMP relies on the expedited implementation of advanced technologies and zero-emission vehicles in Southern California to achieve air quality standards. Communities must have the most current and convenient access to available clean technologies if they are to integrate these technologies into their day-to-day operations. Public access through these types of demonstration programs can help increase consumer confidence and acceptability of electric vehicles, and expand the market share of zero emitting vehicles.

In the most recent AQMP, the average emissions from light-duty passenger cars in the South Coast Air Basin for year 2000 are estimated at 225 tons/day VOC, 1,803 tons/day CO, 188 tons/day NOx, 2.1 tons/day SOx, and 4.1 tons/day PM10. The implementation of this demonstration program will help achieve the ARB’s objective for electric vehicles having ten percent of the market share of new light-duty vehicles by year 2003. This will in turn decrease the above emissions inventory proportionally. In addition, there will be direct emissions reductions through this demonstration program due to the use of electric vehicles instead of fuel burning vehicles.

Resource Impacts

Total project cost is $552,000 in funds and $623,755 in-kind. AQMD’s contribution shall not exceed $200,000 in funds. The ARB’s contribution will be $100,000 in funds to be passed through the AQMD, and $100,000 in-kind. The in-kind contribution will consist of five Honda EV Plus vehicles to be used in the rental program for a period of three years. The total project cost will be co-funded by the following entities:

*LADWP’s commitments were made to EV Rental Cars Company for a previously funded project at Budget Rent a Car at LAX. This AQMD/ARB funded project will benefit from the infrastructure created by LADWP at LAX.

With the recommended actions, sufficient funds have been made available in the FY 1999-2000 Budget from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program, and the ARB. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

Attachment

A - Summary of Evaluation of Proposal Received in Response to RFP #9899-12

Attachment A

Summary of Evaluation of Responses to RFP #9899-12

One proposal was received in response to this RFP from EV Rental Cars.

Step 1 - Technical Criteria (70 points minimum, 100 points maximum)

Step 2 - Cost and Other Factors (85 points maximum)

Total Score (100 points maximum)

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