BOARD MEETING DATE: May 3, 2002
AGENDA NO. 13

Approve Contracts under the Local Government Match Program as Part of the FY 2001-02 AB 2766 Discretionary Fund Work Program; Grant MSRC Authority to Adjust Project Costs Up to 5%; and Authorize Board Chairman to Execute Agreements

SYNOPSIS: 

In July 2001, as part of the FY 2001-02 AB 2766 Discretionary Fund Work Program, the MSRC released a $2 million Local Government Match Program Announcement & Application (PA) to fund alternative fuel vehicles and infrastructure. The PA opened November 1, 2001, and closed on February 28, 2002, at which time fifteen applications totaling $2,526,584 had been received. The MSRC requests approval to fund all applications. The MSRC also requests authority to adjust contracts up to five percent and authority for the Board Chairman to execute agreements.

COMMITTEE: 

Mobile Source Air Pollution Reduction Review Committee,
March 28, 2002, Unanimously Approved

RECOMMENDED ACTION:

1. Approve the award of fifteen applications totaling $2,526,584 under the Local Government Match Program as part of the FY 2001-02 AB 2766 Discretionary Fund Work Program as described in this letter and the attachments;
   
    

2. Authorize MSRC the authority to adjust contracts up to 5%, as necessary; and
   
    

3. Authorize the Chairman of the Board to execute fifteen contracts as specified in Attachment 1.

William G. Kleindienst
Chair, MSRC

Background

In September 1990 Assembly Bill 2766 was signed into law (Health & Safety Code Sections 44220-44247) authorizing the imposition of an annual $4 motor vehicle registration fee to fund the implementation of programs exclusively to reduce air pollution from motor vehicles. AB 2766 provides that 30 percent of the annual $4 vehicle registration fee 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. Available monies for the FY 2001-02 Work Program are currently estimated at approximately $16 million, including revenues, interest, turn-back funds, and monies from CARB for peaker plant emissions offsets.

On July 20, 2001, the Board approved the conceptual FY 2001-02 Work Program targeting $13,765,000 for five Clean Fuels Vehicle programs, one Light-Duty Vehicle program, and five TCM programs. The Work Program included 10 solicitations totaling $12,265,000, one contract with the California Energy Commission (CEC) for $1.5 million for participation in its CNG/Gasoline Hybrid Incentives Program, a $1 million Diesel Particulate Trap Retrofit Program Announcement & Application, and a $2 million Local Government Match Program Announcement & Application. The Match Program provided 50-75% match funding to local governments for alternative fuel infrastructure and 100% match funding towards the purchase of medium- and heavy-duty alternative fuel vehicles.

The Local Government Match Program (see Attachment 2 - Program Announcement) opened November 1, 2001 and applications were accepted through February 28, 2002, on a first-come, first-serve basis, and/or until such time as all available program funds were expended. Fifteen applications totaling $2,526,584 were received.

Outreach

In accordance with the AQMD's consulting and contracting policies, a public notice advertising the Local Government Match Program was published on two different days in 26 newspapers and publications, including several targeting minorities.

The Local Government Match Program Announcement (PA) was placed on the MSRC's Web site at "http://www.msrc-cleanair.org" as well as the AQMD's Web site at "http://www.aqmd.gov" under the "Business and Job Opportunities" icon, and information was included about the PA on the AQMD's 24-hour telephone message line for bidders at (909) 396-2724. Several PAs were downloaded from the MSRC's web site.

In addition to the AQMD's standard practices, a brochure announcing all of the MSRC's funding opportunities was mailed to over 1,600 interested parties on the MSRC's mailing list, as well as to the Black and Latino Legislative Caucuses, City Managers, Chambers of Commerce, the AQMD's Ethnic Communities Advisory Group, and business associations.

The complete Program Announcement and Application was mailed directly to all city mayors and city managers within the South Coast Air Basin as well as to the Subvention Fund technical contacts identified by the AQMD's Transportation Division.

Bidders' Conference

A Bidders' Conference was conducted on August 2, 2001, at AQMD headquarters in Room CC6. A general question-and-answer session was conducted, and approximately 30 city representatives were in attendance.

Proposals Received and Evaluation Process

Fifteen applications were received from various cities throughout the Basin. The MSRC's Technical Advisory Committee (MSRC-TAC) formed an evaluation subcommittee to review the applications to determine eligibility, using the criteria within the Program Announcement. Funds were available on first-come, first serve basis. At its March 28, 2002 meeting, the MSRC considered recommendations from its MSRC-TAC.

Proposals

In order to meet the demands of the applicants, the MSRC augmented the $2 million allocated to the Match Program by utilizing additional unallocated funds. The MSRC unanimously approved funding all fifteen applications received for a total Match Program package totaling $2,562,584. It was noted that the demand for vehicles was greater than infrastructure by 3:1 ratio. At this time the MSRC requests Board approval to fund the projects identified in Attachment 1 as part of the FY 2001-02 Work Program.

In some cases the full amount requested by a proposal is not recommended for funding or the proposed scope of work has been modified. This is consistent with the MSRC's administrative policies, which allow the MSRC to approve a portion of a proposer’s scope of work and/or funding request. In those cases where the proposed funding level or scope of work has been modified by the MSRC, and the proposer cannot perform the project as approved, the MSRC may rescind the funding commitment and retain the funds in the Discretionary Fund for future work programs.

The MSRC requests authority to adjust the funds allocated to each project specified in this Board letter by up to 5% of the project's recommended funding. The Board has granted this authority to the MSRC for all past work programs.

Finally, the MSRC requests that the Board authorize the AQMD Board Chairman the authority to execute all agreements as part of the FY 2001-02 Work Program.

Resource Impacts

The AQMD acts as fiscal administrator for the AB 2766 Discretionary Fund Program (Health & Safety Code Section 44243). Money received for this program is recorded in a special revenue fund (Fund 23) and the contracts will be drawn from this fund. These contracts will have no fiscal impact on the AQMD’s operational budget.

Attachments

Attachment 1 - Local Government Match Program Summary
Attachment 2 - Program Announcement & Application #PA2002-01

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