BOARD MEETING DATE: August 1, 2003
AGENDA NO. 14

Approve Contract Awards as Part of MSRC's FYs 2001-02, 2002-03 and 2003-04 AB 2766 Discretionary Fund Work Programs; Grant MSRC Authority to Adjust Project Costs Up to Five Percent; and Authorize Board Chairman to Execute Agreements

SYNOPSIS:

On October 4, 2002, the Board approved the FY 2002-03 AB 2766 Discretionary Fund Work Program in Concept totaling $14.95 million, including $1.25 million for the implementation of strategically located, publicly accessible alternative fuel infrastructure in the SCAQMD. Subsequently, on July 24, 2003, the MSRC approved five awards at $250,000 per station totaling $1.25 million under the infrastructure program as part of the FY 2002-03 Work Program. At the same meeting, the MSRC also unanimously approved: 1) a replacement contract to Long Beach Transit Agency for $684,837 for the installation of 99 retrofit traps as part of the FY 2001-02 Work Program; and 2) an allocation of $146,385 to exercise the second-year option for FY 2003-04 technical advisor services, $109,789 as part of the FY 2003-04 Conceptual Work Program and $36,596 as part of the FY 2003-04 5% Administrative Budget. The MSRC seeks AQMD approval of these seven contract awards and authority to adjust project costs up to five percent and for the Board Chairman to execute these multiple agreements.

COMMITTEE:

Mobile Source Air Pollution Reduction Review, July 24, 2003

RECOMMENDED ACTION:

1. Approve five awards totaling $1.25 million to Clean Energy (formerly ENRG) for alternative fuel stations at five sites throughout the SCAQMD under the Alternative Fuel Infrastructure Program, as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program, as described in this letter;
    
2. Approve an award totaling $684,837 for a replacement contract to Long Beach Transit Agency for the installation of 99 retrofit traps, as part of the FY 2001-02 AB 2766 Discretionary Fund Work Program, as described in this letter;
    
3. Exercise second year option clause to extend the contract with Raymond J. Gorski for FY 2003-04 technical advisor services for another additional year in an amount not to exceed $146,385, with 75% (or an amount not to exceed $109,789) allocated as part of the FY 2003-04 Conceptual Work Program and 25% (or an amount not to exceed $36,596) allocated as part of the MSRC FY 2003-04 5% Administrative Budget, as described in this letter;
    
4. Authorize MSRC the authority to adjust project costs up to 5%, and to substitute vehicles and/or fuel type provided emissions reductions and cost-effectiveness are not adversely impacted, as necessary; and
    
5. Authorize the Chairman of the Board to execute these five contracts as part of the FYs 2001-02 and 2002-03 AB 2766 Discretionary Fund Work Program and FY 2003-04 AB 2766 Discretionary Fund Conceptual Work Program.

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.

1. FY 2002-03 Work Program
On October 4, 2002, the Board approved the FY 2002-03 AB 2766 Discretionary Fund Work Program in Concept totaling $14.95 million, which included $1.25 million for the implementation of strategically located, publicly accessible alternative fuel infrastructure in the SCAQMD. The RFP, #P2003-08, provided up to $250,000 for refueling stations for CNG, LNG L/CNG fuels and had a proposal acceptance period from October 4, 2002 through April 8, 2003. Although funding was available on a first-come, first-serve basis, only proposals that satisfied all requirements delineated in the RFP and whose location were deemed strategically significant would be considered for funding. Factors to be used in determining the strategic significance of proposed refueling station locations included, but were not limited to, the station’s proximity to potential fleet users, ability to close an identified refueling network "gap," and proximity to major transportation corridors. Seven proposals were received by the closing date, five from Clean Energy (formerly ENRG) and two from Gas Equipment Systems. Award recommendations based on the MSRC’s July 24, 2003 meeting are described below in the Proposals section.

2. FY 2001-02 Work Program
In the FY 2001-02 Work Program, the MSRC awarded several contracts to different agencies to install retrofit traps on vehicles in an amount up to $8,500 per trap. One of these contracts was awarded to Long Beach Transit Agency in the amount of $408,000 to retrofit 48 vehicles. The MSRC subsequently awarded the Long Beach Transit Agency $280,500 to retrofit 33 more vehicles. Following a cost savings, Long Beach Transit Agency requested that they be allowed to use the residual monies to retrofit 18 additional vehicles for a grand total of 99 traps. Before contract negotiations could be completed to amend the contract, increasing the contract value and adding additional traps, the original contract lapsed. In fact, no payments had been made on the original contract, #PT0203, at the time it expired. In order to fulfill the MSRC’s intention as indicated by their actions, which were subsequently approved by the AQMD Board, the MSRC considered a substitute contract at its July 24, 2003 meeting. Further details on the substitute contract are described below in the Proposals section.

3. FY 2003-04 Conceptual Work Program
On July 24, 2003, the MSRC’s Technical Advisory Committee presented the FY 2003-04 AB 2766 Discretionary Fund Conceptual Work Program, based on priorities established by the MSRC at its annual retreat on March 31, 2003. Included within the FY 2003-04 Conceptual Work Program, which was unanimously adopted by the MSRC, was an allocation for technical advisor services during FY 2003-04. The contract with Raymond J. Gorski includes three one-year options incorporating a 4% annual inflation adjustment, with discretion by the MSRC to exercise said options, as granted by the AQMD Board. Every year the MSRC also adopts an administrative budget, establishing costs at the 5% administrative cap mandated by the legislation. For the past few years the administrative budget has included a portion of Mr. Gorski’s contract costs. Specific details to exercise his option for FY 2003-04 technical advisor services based on the MSRC’s July 24, 2003 meeting are described below in the Proposals section. The remainder and majority of the elements of the FY 2003-04 Conceptual Work Program along with several solicitations will be considered for adoption by the AQMD Board in November 2003.

Outreach

In accordance with the AQMD's consulting and contracting policies, a public notice advertising the Alternative Fuels Infrastructure Program was published on two different days in 25 newspapers and publications, including several targeting minorities.

A special mailing to alternative fuel providers was sent out by staff, and the RFP 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 them on the AQMD's 24-hour telephone message line for bidders at (909) 396-2724.

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.

Bidders' Conference

A Bidder's conferences for the Alternative Fuel Infrastructure Program RFP #P2003-08 was conducted on October 25, 2002, and a general question-and-answer session was conducted.

Proposals Received and Evaluation Process

The MSRC's Technical Advisory Committee (MSRC-TAC) formed an evaluation subcommittee to review the proposals received in response to the Alternative Fuels Infrastructure Program RFP, using the criteria in the solicitation. The MSRC-TAC is a diverse group of individuals appointed by the participating members as prescribed in the Health & Safety Code.

Proposals

On July 24, 2003, the MSRC considered recommendations from its Technical Advisory Committee and unanimously approved five awards totaling $1.25 million to Clean Energy (formerly ENRG) for alternative fuel stations at five sites under the Alternative Fuel Infrastructure Program, as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program, as follows:

1. Express Reefer Transport LNG Station – This station will be located at Express Reefer Transport (XRT) Company in San Bernardino County, within one mile of the intersection of the I-15 and I-215 freeways. The station will initially service 25 XRT LNG tractors funded under the SCAQMD Carl Moyer Program, with the intention of growing the XRT fleet to 80 vehicles over the next two years. The initial throughput is anticipated to exceed 5,000 equivalent gallons per day. There are few existing LNG stations that are publicly-accessible 24 hours per day, seven days per week within the South Coast AQMD. This site is strategically located along the ICTC corridor, and should help promote the use of LNG as a viable transportation fuel for over-the-road trucks along interstate 15. The station will include 16,000 gallons of LNG storage, and be capable of dispensing up to 40 gallons per minute. It is accessible to other fleets 24 hours a day, seven days per week and is compatible with credit cards.
    
2. Palm Springs International Airport CNG Station – This new CNG station will be located adjacent to Palm Springs International Airport at 3400 E. Tahquitz Canyon Road. The station will have 30,000 standard cubic feet (SCF) of storage capacity with multiple dispensing hoses. The station will be capable of dispensing CNG at 3,600 pounds per square inch (psig) at a rate of over four gallons per minute. The station will be designed to accommodate multiple fleet users. Palm Springs Disposal has committed to purchasing CNG refuse haulers. In addition, the station will service the airport’s CNG taxi and shuttle van fleet. The initial station throughput will exceed 15,000 equivalent gallons each month. The potential for additional heavy-duty fleet users is high; the station owners project a fuel usage of approximately 500,000 equivalent gallons on an annual basis.
    
3. CNG Station Located in Ontario – This station will be located in the City of Ontario and adjacent to Ontario International Airport. The proposed station’s address is 1890 East Holt Boulevard, and will be owned and operated by 21^st Century Oil Company. The station will be configured with 30,000 standard cubic feet of CNG storage, with multiple dispensing hoses capable of providing both 3,000 and 3,600 psig fill pressures. Potential fleet users include Bell Cab and SuperShuttle. The project proponent has indicated that this station might be subject to a postponement in implementation.
    
4. CNG Station Located in Hollywood – This station will be implemented in partnership with the Southern California Gas Company. The station will be located at 7171 Romaine Street at the SoCalGas Hollywood Base. The initial fleet will be SuperShuttle, which has committed to use this station. The station will be equipped with 33,000 standard cubic feet of storage capacity, multiple dispensing hoses, and will accommodate a mix of vehicle types.
    
5. CNG Station Located in Canoga Park – This station will be located at 7711 Canoga Avenue in Canoga Park at the SoCalGas Canoga Base Station. The station will have a CNG storage capacity of 33,000 standard cubic feet with multiple dispensing hoses. The primary initial fleet users will be SuperShuttle and the Los Angeles Division of City Cab. Both have submitted letters of intent to use the station as their primary refueling location.

At the same meeting, the MSRC also unanimously approved: 1) a replacement contract to Long Beach Transit Agency in the amount of $684,837 for the installation of 99 retrofit traps as part of the FY 2001-02 Work Program; and 2) an allocation of $146,385 to exercise the second-year option for FY 2003-04 technical advisor services, $109,789 as part of the FY 2003-04 Conceptual Work Program and $36,596 as part of the FY 2003-04 5% Administrative Budget.

As explained in the background section, the MSRC awarded $688,500 to the Long Beach Transit Agency to retrofit traps on 99 vehicles, as part of the FY 2001-02 Work Program. When the contract lapsed before completion of the project, the AQMD recommended that a new or substitute contract be entered into. On July 24, 2003, the MSRC unanimously approved a new contract with the Long Beach Transit Agency to reimburse all costs associated with the installation of 99 retrofit traps. The contract amount was reduced from the original $688,500 to $684,837 to match exact costs incurred by the Transit Agency. At this time the MSRC seeks Board approval of the new or substitute contract with Long Beach Transit Agency in the amount of $684,837 for the installation of 99 retrofit traps, as part of the FY 2001-02 AB 2766 Discretionary Fund Work Program.

As explained in the background section, the MSRC’s contract with Raymond J. Gorski includes three one-year options incorporating a 4% annual inflation adjustment, with discretion by the MSRC to exercise said options, as granted by the AQMD Board. The MSRC unanimously approved exercising the second option year in Mr. Gorski’s contract in an amount not to exceed $146,385, with 75% (or an amount not to exceed $109,789) allocated as part of the FY 2003-04 Conceptual Work Program and 25% (or an amount not to exceed $36,596) allocated as part of the MSRC FY 2003-04 5% Administrative Budget. At this time the MSRC seeks Board approval of this $146,385 allocation to exercise the second year option.

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. The MSRC also requests authority to substitute vehicles and/or fuel type provided emissions reductions and cost-effectiveness are not adversely impacted, as necessary. Finally, the MSRC requests that the Board authorize the AQMD Board Chairman to execute all agreements described in this letter.

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.

Attachment

None

/ / /