BOARD MEETING DATE: January 10, 2003
AGENDA NO. 10

Execute Agreement and Recognize Revenue from Ford Motor Company for Acquisition of Two CNG-Powered Buses

SYNOPSIS: 

Ford Motor Company has allocated $123,800 to AQMD's acquisition of two CNG-powered E-450 buses as part of a development and demonstration project of a CNG-powered midsize school bus cofunded by the AQMD. One bus will be configured as a certified school bus and the other will be configured as a shuttle bus, and will be used by the AQMD to highlight available technology at various outreach events, including conferences and meetings. This action is to recognize the funds from Ford Motor Company and authorize the purchase of the two buses.

COMMITTEE: 

Technology, November 22, 2002. Less than a quorum was present during the discussion of this item; the Chairman communicated his concurrence and recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.

RECOMMENDED ACTION:

1. Authorize the Chairman to execute an agreement with Ford Motor Company to provide funding to the AQMD for the acquisition of two CNG-powered E-450 buses.
   
   
2. Recognize $123,800 in revenue from Ford Motor Company into the General Fund.
   
   
3. Appropriate the $123,800 from the General Fund to the Science & Technology Advancement Office 2002-03 Budget, Capital Outlay – Major Objects.
   
   
4. Authorize the purchase of two CNG-powered E-450 buses from Ford Motor Company authorized vendors, upon receipt of funding commitment.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On March 1, 2002, the Board approved the execution of a contract with Ford Motor Company to cosponsor the development and demonstration of one CNG-powered midsize school bus and demonstrate two smaller CNG school buses. That contract was executed on July 26, 2002. During the contract negotiation process, Ford Motor Company and the AQMD mutually agreed to acquire under a separate agreement. two E-450 CNG-powered buses to demonstrate the natural gas technology. The Public Affairs office proposes to use the two buses to demonstrate and promote alternative-fuel technology by prominently displaying the vehicles, along with educational materials and displays, at special events and meetings held by the AQMD as well as those hosted by community groups, school districts and other local government bodies such as boards of education, cities, counties, water and waste districts, etc. Therefore, staff is proposing to acquire one of the two buses in a certified school bus configuration and the other bus will be acquired in a shuttle bus configuration to maximize the exposure of the available technology.

Proposal

Staff is requesting the Board's approval to recognize $123,800 from Ford Motor Company and appropriate the $123,800 to the Science & Technology Advancement Office 2002-03 Budget, Capital Outlay – Major Objects. Additionally, staff is requesting the Board to authorize the purchase of the two CNG-powered E-450 buses from Ford Motor company authorized vendors.

Lastly, the Ford Motor Company will provide training on maintenance and operation of the E-450 buses, as well as provide service support at Ford Motor Company’s expense for the initial one-year demonstration period.

Benefits to AQMD

The AQMP relies on the expedited implementation of advanced technologies and clean-burning fuels in Southern California to achieve air quality standards. This project will provide the means for the Public Affairs office to actively showcase commercially-available, cleaner-burning technology to the regulated community, and provide assistance with the implementation of fleet rules.

Sole Source Justification

Section VIII.B.2. of the Procurement Policy and Procedure identifies four major provisions under which a sole source award may be justified. This request for a sole source award is made under provision B.2.c.: …services available from only the sole source. Specifically, B.2.c.(1): The unique experience and capabilities of the proposed contractor/team.

Ford Motor Company is one of the leading manufacturers of alternative fuel vehicles and has already commercialized several models of CNG light-duty vehicles and will commercialize a CNG heavy-duty shuttle, hotel, and school bus. The CNG E-450 is commercially-available only from the Ford Motor Company, and Ford is committed to continue commercializing additional alternative fuel technology. Ford, with its partners in the development of shuttle and school buses, has obtained all the necessary certification for these buses as a school bus and shuttle bus.

Resource Impacts

There are no resource impacts from this project, since Ford Motor Company will provide funding to acquire the two CNG-powered buses. Additionally, the maintenance of the buses is covered for the initial 12 month period. However, the AQMD will have to seek commercial insurance on the two buses.

/ / /