South Coast Air Quality Management District

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Execute Contract for Small Business Financial Consultant to Implement Revisions to Air Quality Assistance Fund

SYNOPSIS: 

The Board approved revisions to the Air Quality Assistance Fund (AQAF) at the June 16, 2000, Board meeting and authorized staff to issue an RFP for a small business financial consultant to develop and implement the new program. This contract requires Board approval because the AQAF is a special fund not included in AQMD’s budget. Two (2) proposals were received, and based upon the evaluation panel’s review, staff recommends awarding the contract to EnviroTech Financial, Inc. for a total amount not to exceed $50,000. Funds are available in the AQAF.

COMMITTEE: 

Stationary Source, September 22, 2000; Recommended for Approval

RECOMMENDED ACTION:

Authorize the Executive Officer to award a contract with EnviroTech Financial, Inc. to be the Small Business Financial Consultant for the Air Quality Assistance Fund for an amount not to exceed $50,000.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The goal of the AQMD with regard to awarding this contract is to secure consultant services to coordinate and implement revisions to the loan guarantee program (Air Quality Assistance Fund) that is used to help small businesses finance air pollution control requirements. The small business financial consultant would have five main responsibilities: program development; program marketing; loan packaging; program monitoring; and reporting on fund performance. Program development would include assisting with the revision of the Air Quality Assistance Fund (AQAF) standard operating procedures, and helping draft the agreements and documents necessary to participate in the California Capital Access Program (CalCAP) and establish the Equipment Lease Guarantee component of the AQAF program. Program development would also include preparing procedures for how the AQMD will review and authorize lease guarantees and CalCAP participation.

Outreach

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

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

In addition, Notice of the RFP was made available to various community groups, trade organizations, chambers of commerce and other interested parties at the time the Notice Inviting Bids/Proposals was submitted for publication. Potential bidders were also identified using the Los Angeles County MTA Directory of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business and Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing Division's mailing list. The entire RFP was placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s 24-hour telephone message line for bidders (909) 396-2724.

A bidder's conference was held on August 10, 2000. Representatives from five prospective bidders participated in the bidder's conference.

Proposals Submitted

Two (2) proposals were received in response to the RFP. They were from:

• EnviroTech Financial, Inc.
• The Summit Group.

Bid Evaluation

The proposals were reviewed and scored by a 6-person panel comprised of three AQMD staff and three external people representing business and finance. The panel included the Manager of AQMD's Small Business Assistance Program, the Air Quality Engineer II who would be monitoring the project, the Procurement Manager from AQMD's Finance Division, a representative of the California Small Business Alliance, the owner of a large municipal leasing company, and the financial consultant who developed the recommendations on how to revise the AQAF.

The selection criteria used to rank the proposals included: responsiveness to the RFP; technical merit/understanding of the loan, leasing and banking industry; project organization and management; qualifications, references, assigned personnel; cost and time effectiveness; and designation as a local business, a DVBE, or a small business.

Both bidders exceeded the minimum technical qualifications, and both bidders received points for being small businesses. In addition, because this contract would not include any funding from EPA, both firms were eligible for points for being a local business. The following are the scores for the two bidders.

Recommendation

Based both on technical and cost considerations, the panel selected EnviroTech Financial, Inc. Staff, therefore, recommends that the Board authorize the Executive Officer to award the contract for the small business financial consultant to EnviroTech Financial Inc., for an amount not to exceed $50,000.

Resource Impact

The recommendations contained herein would not impact the AQMD general fund or staff resources. The AQAF is a special fund that was set up so that the expenses of the program, such as consultant fees, could be paid from the interest earned on the fund, leaving the principal available for guaranteeing small business loans and leases.

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