BOARD MEETING DATE: July 11, 2003
AGENDA NO. 38
Recognize Federal Grant Funds to Implement Green Airport Initiative and Delegate Authority to the Executive Officer to Approve and Execute Contracts with Caltrans, Clean Airport Partnership, and EV Rental Cars to Conduct the Green Airport Initiative Demonstration at LAX
SYNOPSIS:
The Board approved the recognition of funds to implement the federal Green Airport Initiative in July 2002. However, due to delays in receiving federal grant authorization from the U.S. Department of Transportation Federal Highway Authority (FHWA) and discussions with Caltrans regarding the implementation of the project at Los Angeles International Airport, contracts with Caltrans (to receive federal funds) and Clean Airport Partnership and EV Rental Cars (the implementing organizations) were not executed in FY 2002-03. Staff is recommending that the Board recognize the federal grant funds for $1,982,615 and delegate authority to the Executive Officer to approve and execute contractsagreements with Caltrans (to receive funds) and with Clean Airport Partnership and EV Rental Cars (to implement the program). The total project funding is $3,967,615 which includes matching funds from EV Rental Cars of $1,985,000.
COMMITTEE:
None
RECOMMENDED ACTION:
- Adopt the attached resolution delegating authority to the Executive Officer to approve, execute and manage the Program Supplement and Master Agreement with California Department of Transportation (Caltrans) implementing the Green Airport Initiative.
- Recognize $1,982,615 in revenue from Caltrans in the General Fund.
- Appropriate $1,982,615 from the Undesignated Fund Balance to the FY 2003-04 Budget in Science and Technology Advancement, Professional and Special Services Account, upon receipt of grant award.
- Authorize the Executive Officer to execute a cost reimbursable contract with Clean Airport Partnership, Inc. and EV Rental Cars to implement the Green Airport Initiative demonstration at LAX.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
On July 12, 2002, the Board authorized the Executive Officer to apply for a federal grant to implement the Green Airport Initiative that would expand the rental of alternative fueled and cleaner-burning gasoline hybrid cars at Los Angeles International Airport (LAX). The federal grant fund is part of the U.S. Department of Transportation (DOT) Federal Highway Authority (FHWA) Transportation and Community and System Preservation Pilot Program (TCSP) and is passed through Caltrans. Due to on-going discussions between FHWA and Caltrans on the best approach to implement the Green Airport Initiative, contracts between the various parties could not be executed in FY 2002-03. As part of this process, before the AQMD could receive Caltrans pass through funds, an audit of the financial procedures took place. The Caltrans audit approved the AQMD to receive funds. The "Authorization to Proceed" obligating federal funds for the Green Airport Initiative project was approved on May 29, 2003 by Caltrans. The last portion of the grant, the Program Supplemental, was received in mid-June. The Master Agreement and Program Supplemental with Caltrans are currently under review.
Proposal
The Green Airport Initiative is a key component of a national program developed by Clean Airport Partnership, Inc. to improve air quality and transportation efficiency in and around California and U.S. airports and entails a demonstration project at LAX to be conducted by EV Rental Cars. The demonstration would provide environmentally-friendly vehicles (such as natural gas and cleaner-burning gasoline hybrid vehicles) available for rental by the general public. Based at LAX, the vehicles will be available for travelers and residents. The program provides the opportunity for drivers to use the vehicles in real world driving conditions. This promotes the use of environmentally-friendly vehicles while directly reducing urban air pollution and dependence on foreign oil. The project will place a minimum of 200 vehicles in the greater Los Angeles area.
Staff is recommending that the Board recognize $1,982,615 (for up to 100 vehicles which a minimum of 20 will be natural gas fueled) in available federal funds for the Green Airport Initiative at LAX that would pass through Caltrans to the AQMD under reimbursable contractthe Master Agreement and Program Supplement. Staff is currently negotiating terms with Caltrans to limit AQMD’s potential liabilities under these agreements. In addition, staff is recommending that a second contract between the AQMD and Clean Airport Partnership, Inc. and EV Rental Cars be executed to implement the program at LAX. The available funds would be distributed based on invoices received from Clean Airport Partnership, Inc. and EV Rental Cars first. A subsequent reimbursement to the AQMD would occur from Caltrans to the AQMD. In addition, EV Rental Cars will be providing funding of $1,985,000 for an additional 100 vehicles as part of the Green Airport Initiative. To protect against any financial risk to the AQMD, the attached resolution requires the Executive Officer to execute contracts that will ensure against or provide adequate security against such risk.
Benefits to AQMD
The proposed project is included in the March 2002 update of the Technology Advancement plan under Project 2002CFT-1, Assessment and Technical Support of Advanced Technologies and Information Dissemination. Providing contractual support for this project to ensure further deployment of advanced technology vehicles illustrates the AQMD’s commitment to these advanced technologies, and showcases a local project on a national level.
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 d.; "other circumstances exist which are in the best interests of the AQMD." Specifically, these circumstances are B.2.d.(1): Project involving cost sharing by multiple sponsors.
Furthermore, a sole source award is justified and has been authorized by FHWA under 48 CFR 6.302-1: Only one responsible source and no other supplies or services will satisfy agency requirements, Section (b)(2): The existence of limited rights in data, patent rights, copyrights, or secret processes; the control of basic raw material; or similar circumstances, make the supplies and services available from only one source (however, the mere existence of such rights or circumstances does not in and or of itself justify the use of these authorities). Clean Air Partnership, Inc. holds the rights to the title "Green Airport Initiative".
Clean Airport Partnership proposes a public/private partnership leveraging private with federal funds from U.S. DOT FHWA. AQMD is contributing only in-kind contractual services.
Resource Impact
No AQMD funds are required for this project. Minimal administrative costs would occur with the execution of the two contracts.
Attachment
Resolution
ATTACHMENT A
RESOLUTION NO. 03-
A Resolution of the SCAQMD Governing Board delegating authority to the Executive Officer to approve, execute, and manage a Master Agreement and Program Supplement with the California Department of Transportation for the Green Airport Initiative.
WHEREAS, the U.S. Congress has provided grant funds to implement a Green Airport Initiative at Los Angeles International Airport (LAX) to provide alternative fuel and cleaner-burning gasoline hybrid vehicles for rental use to the general public; and
WHEREAS, there is a desire of the South Coast Air Quality Management District (SCAQMD) to implement the federal Green Airport Initiative in the South Coast Air Basin; and
WHEREAS, in order to receive the federal grant funds, the SCAQMD must enter into a Master Agreement and Program Supplement with the California Department of Transportation (Caltrans); and
WHEREAS, the Master Agreement shall have no force or effect with respect to any Program project unless and until a project-specific Program Supplement to the Master Agreement for Federal-aid Projects, hereinafter referred to as "PROGRAM SUPPLEMENT," has been executed; and
WHEREAS, the Master Agreement states that "unless otherwise expressly delegated in a resolution by the ADMINISTERING AGENCY’s (SCAQMD) governing body, the PROGRAM SUPPLEMENT shall be approved and managed by the ADMINISTERING AGENCY’s governing body."
NOW, THEREFORE, BE IT RESOLVED, that the SCAQMD Governing Board delegates authority to the Executive Officer to approve, execute, and manage the Master Agreement and PROGRAM SUPPLEMENT with Caltrans, provided, however, that the Executive Officer shall not approve, execute or manage the Master Agreement and Program Supplement unless he and District Counsel are satisfied that SCAQMD’s participation in these agreements does not present a financial risk to SCAQMD or that any such risk is adequately covered by mechanisms to ensure against or provide security against such risk.
DATE: _______________________ CLERK OF THE DISTRICT BOARD
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