BOARD MEETING DATE: June 6, 2003
AGENDA NO. 16

Approve Contract Awards as Part of MSRC's FY 2002-03 AB 2766 Discretionary Fund Work Program; 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. Subsequently, on May 22, 2003, the MSRC approved several contract awards. Therefore, as part of its Final FY 2002-03 Work Program, the MSRC requests approval of: 1) Four proposals received in response to RFP 2003-27: Freeway Service Patrols; 2) Four applications under the Local Government Match Program; 3) One application under the Coachella Valley PM10 Reduction Program; 4) Two proposals submitted in response to RFP 2003-05: On/Off-Road Heavy-Duty Vehicle Program; and 5) Augment awards to A-Z Bus Sales, California Bus Sales and Southern California Thomas Bus Sales under CNG School Bus Program. The MSRC also requests authority to adjust project costs up five percent and to substitute vehicles and/or fuel type provided emissions reductions and cost-effectiveness are not adversely impacted. Last, the MSRC requests authority for the Board Chairman to execute agreements.

COMMITTEE:

Mobile Source Air Pollution Reduction Review, May 22, 2003

RECOMMENDED ACTION:

1. Approve an award totaling $1,887,600 for four proposals received from the Los Angeles County Metropolitan Transportation Authority, Riverside County Transportation Commission, Orange County Transportation Authority and San Bernardino Associated Governments in response to RFP 2003-27: Freeway Service Patrols, as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program, as described in the Proposals section of this letter;
    
2. Approve an award totaling $1,165,191 for four applications from the Cities of Ontario, Riverside and Santa Clarita and the County of San Bernardino under the Local Government Match Program, as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program, as described in the Proposals section of this letter and the attached spreadsheet;
    
3. Approve an award of $1,191 for one application from the Coachella Valley Associated Governments under the Coachella Valley PM₁₀ Reduction Program, as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program, as described in the Proposals section of this letter;
    
4. Approve an award totaling $786,282 for two proposals received from Cattrac and Ebensteiner in response to RFP 2003-05: On/Off-Road Heavy-Duty Vehicle Program, as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program, as described in the Proposals section of this letter;
    
5. 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 impactedare not compromised, as necessary;
    
6. Authorize the Chairman of the Board to execute contracts as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program; and
    
7. Approve an amendment to add $233,333 to A-Z Bus Sales, Inc. Contract #03001, increasing the contract value from $700,000 to $933,333, an amendment to add $233,333 to California Bus Sales, Inc., Contract #03002, increasing the contract value from $300,000 to $533,333, and an amendment to add $233,333 to Southern California Thomas Bus Sales, increasing the contract value from $300,000 to $533,333, under the CNG School Bus Incentive Program, as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program, with the provision that funds not committed via purchase order within ninety days will revert back to the MSRC discretionary fund for disposition as the MSRC recommends and the Board approves.

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 2002-03 Work Program are approximately $16 million, including revenue, interest and turn-back funds from projects that realized cost savings or awards that were rescinded in part or whole.

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 several elements as follows:

1. RFP 2003-27: Freeway Service Patrols
The objective of this Work Program category is to stimulate the deployment of new or expanded Freeway Service Patrols (FSP). FSP is an incident management strategy designed to assist disabled vehicles along freeway segments and relieve peak-period non-recurring congestion through the quick detection, verification, and removal of accidents and other freeway incidents. The total amount of Discretionary Funds allocated to this category was $1.5 million. The solicitation mechanism was a Request for Proposals, with a proposal receipt period beginning on March 7, 2003 and ending April 8, 2003. The MSRC established a geographical funding minimum of $200,000 per county. Beyond the Geographic Funding Minimums, funding was distributed according to the formula established in the Statewide Tier I FSP guidelines, not to exceed the amounts requested. Four proposals are being recommended for funding based on the MSRC’s May 22, 2003 meeting; details are described below under the Proposals section.

2. Local Government Match Program
The Local Government Match Program Announcement offered co-funding to qualifying alternative fuel vehicle and infrastructure projects. The total amount of Discretionary Funds allocated to this category was $2.45 million. The solicitation mechanism was a Program Announcement and Application, with a proposal receipt period beginning on December 1, 2002 and ending April 8, 2003. Funding was available on a first-come, first-serve basis with a $350,000 per-county geographic minimum. In February, March, and May, the Board approved the MSRC's recommendation to award funding totaling $1,284,809 for 17 applications. Additional applications are being recommended for funding based on the MSRC’s May 22, 2003 meeting; details are described below under the Proposals section (see Attachment 1).

3. Coachella Valley PM₁₀ Reduction Program
The Coachella Valley PM10 Reduction Program offered co-funding to qualifying particulate matter reduction projects, focusing on the early implementation of Most Stringent Measures (MSMs) as defined by the South Coast AQMD in the new Coachella Valley State Implementation Plan. The four eligible categories in the Program Announcement were: 1) PM10 efficient street sweepers and dust control vehicles; 2) installation and maintenance of wind fencing; 3) stabilization of roadways, shoulders and turnouts; and 4) paving of roadway shoulders and turnouts. The goal is to assist Coachella Valley jurisdictions in expeditiously implementing MSMs prior to the imposition of mandatory PM10 Reduction Rules by the AQMD. The MSRC Program offered a match against CMAQ, AB 2766 Subvention Funds, or other local funds. The MSRC Program provided qualifying CMAQ projects an 11.47% match against federal CMAQ (TEA-21) funds, a 75% Match against AB 2766 Subvention Funds, and a 50% match when other sources of funds were applied. The total amount of Discretionary Funds allocated to this category was $1 million. The solicitation mechanism was a Program Announcement and Application, with a proposal receipt period beginning on November 5, 2002 and ending April 8, 2003. Funding was available on a first-come, first-serve basis. In February, March, and May, the Board approved the MSRC's recommendation to award funding totaling $1,000,000 for 13 applications. Additional funding is being recommended for one application previously awarded funding based on the MSRC’s May 22, 2003 meeting; details are described below under the Proposals section.

4. On-/Off-Road Heavy-Duty Vehicles Diesel Reduction Program
The On-/Off-Road Heavy-Duty Vehicles Diesel Reduction Program offers co-funding to qualifying on-/off-road heavy-duty vehicles. Two-thirds of the funds are allocated to public entities and one-third to private fleets. Qualifying alternative fuel vehicles must meet or exceed the optional NOx standard of 1.8 g/bhp-hr. Repower projects to replace old diesel engines are also eligible. Proposers can also apply for infrastructure modifications and refueling facilities as well as mechanic training if the project meets a minimum number of vehicles. The total amount of Discretionary Funds allocated to this category is $2 million. An RFP to solicit proposals was released on October 4, 2002, and closed January 10, 2003, resulting in the receipt of fourteen proposals. In March, the Board approved the MSRC’s recommendation to award funding totaling $2,000,000 for eight proposals. Additional funding is being recommended for one proposal previously awarded funding and one proposal not previously awarded funding based on the MSRC’s May 22, 2003 meeting; details are described below under the Proposals section.

5. CNG School Bus Program
The CNG School Bus Program offers buy-down tiered incentives for three types of CNG school buses: 1) $60,000 for heavy-duty full-size Type D buses; 2) $50,000 for heavy-duty mid-size Type D buses; and $25,000 for heavy-duty Type A buses. An RFQ to seek qualified vendors to participate in the program resulted in the retention of three vendors: A-Z Bus Sales, California Bus Sales and Southern California Thomas Bus Sales. On February 7, 2003, the Board approved initial contract awards to each of these vendors in the amount of $300,000. The remaining $1.1 million of the $2 million program was to augment the qualified vendor contracts based on sales performance, subject to review and approval of the MSRC and AQMD Board. On May 2, 2003, the Board approved augmenting the award to A-Z Bus Sales by $400,000, increasing the contract value from $300,000 to $700,000. A-Z Bus Sales has nearly expended its $700,000 allocation, and California Bus Sales has nearly expended its original $300,000 allocation, and Southern California Thomas Bus Sales has nearly expended its original $300,000 allocation, and all three vendors have requested additional funds to provide CNG school bus incentives. The final recommendation based on the MSRC’s May 22, 2003 meeting is described below under the Proposals section.

Outreach

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

The Program Announcements (PA) and RFPs were 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. Several PAs and RFPs 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 Freeway Service Patrols RFP was mailed directly to all four County Transportation Commissions within the South Coast Air Basin. The complete Local Government Match 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. Additional outreach was performed by the AQMD's intergovernmental affairs staff and members of the Science & Technology Advancement office.

Bidders' Conference

Bidders' conferences were conducted throughout October 2002 at AQMD headquarters and technical assistance provided when possible. A general question-and-answer session was conducted.

Proposals Received and Evaluation Process

The MSRC's Technical Advisory Committee (MSRC-TAC) formed evaluation subcommittees to review the proposals and applications determined to be eligible, using the criteria within each solicitation. The MSRC-TAC is a diverse group of individuals appointed by the participating members as prescribed in the Health & Safety Code.

Proposals

On May 22, 2003, the MSRC considered recommendations from its MSRC-TAC and unanimously approved contract awards as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program, as follows:

1. Four proposals in response to RFP 2003-27: Freeway Service Patrols, funded based on a $200,000 per county geographic minimum with the remaining funds distributed using the Tier 1 Statewide FSP formula up to the amounts requested by each entity, as follows:
   a) Los Angeles County in the amount of $862,200;
   b) Riverside County in the amount of $275,400;
   c) Orange County in the amount of $375,000; and
   d) San Bernardino County in the amount of $375,000.
    
2. Four applications under the Local Government Match Program, funded based on a $350,000 per county geographic minimum with the remaining funds awarded on a first-come, first-serve basis, as follows:
   a) City of Ontario in the amount of $50,445 to expand a CNG refueling
       station;
   b) City of Riverside in the amount of $90,000 to construct a CNG refueling
       station and purchase 22 medium-duty and three heavy-duty CNG
       vehicles;
   c) County of San Bernardino in the amount of $181,630 to expand two
       CNG refueling stations;
       and
   d) City of Santa Clarita in the amount of $843,115 to construct a CNG
       refueling station.
    
3. One application under the Coachella Valley PM₁₀ Reduction Program, funded on a first-come, first-serve basis, from the Coachella Valley Associated Governments in the amount of $1,191, augmenting $25,809 previously awarded to this application for a total award of $27,000, to stabilize six unpaved parking lots and adjacent unpaved areas;
    
4. Two proposals submitted in response to RFP 2003-05: On/Off-Road Heavy-Duty Vehicle Program, funds awarded on a cost-effectiveness basis, as follows:
   a) Cattrac Construction in the amount of $80,616 to repower one dozer
       and one scraper, augmenting $74,979 previously awarded to this
       proposal for a total award of $155,595; and
   b) Ebensteiner Company in the amount of $705,936 to repower eight
       scrapers.
    
5. Increase A-Z Bus Sales Contract #03001 by $233,333 bringing the total contract value to $933,333, increase California Bus Sales Contract #03002 by $233,333 bringing the total contract value to $533,333, and increase Southern California Thomas Bus Sales Contract #03003 by $233,333 bringing the total contract value to $533,333, for all three Contractors’ participation as qualified vendors under the CNG School Bus Program, with the provision that funds not committed via purchase order within ninety days will revert back to the MSRC discretionary fund for disposition as the MSRC recommends and the Board approves.

At this time the MSRC requests Board approval to fund eleven contracts totaling $3,840,264, which includes monies from the unallocated fund balance, including turnback funds; and augment three contracts by $233,333 each as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program.

In some cases the full amount requested in 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. The MSRC also requests authority to substitute vehicles and/or fuel type provided emissions reductions and cost-effectiveness are not adversely impactedcost-effectiveness are not compromised, as necessary. Finally, the MSRC requests that the Board authorize the AQMD Board Chairman to execute all agreements described in this letter and in the attachments as part of the FY 2002-03 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

1) Local Government Match Program Funding Spreadsheet

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