BOARD MEETING DATE: March 7, 2003
AGENDA NO. 9

Approve Contract Awards and Release of Freeway Service Patrol RFP 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 February 27, 2003, the MSRC approved several contract awards. Therefore, as part of its Final FY 2002-03 Work Program, the MSRC requests approval of: 1) Two Coachella Valley PM10 Reduction Program applications totaling $303,777; 2) Two Local Government Match Program applications totaling $143,585; 3) One $440,200 contract to develop, implement and administer the Regional Commuter Vanpool Program; 4) Four contracts totaling $2 million for alternative fuel transit buses; and 6) Eight contracts totaling $2 million for on-/off-road heavy duty vehicle projects. Also on February 27, the MSRC approved a $1.5 million Freeway Service Patrol RFP as part of the Work Program. Consequently, the MSRC requests authority to release the RFP. Finally, the MSRC requests authority to adjust project costs up to five percent and for the Board Chairman to execute seventeen agreements.

COMMITTEE: 

Mobile Source Air Pollution Reduction Review Committee,
February 27, 2003 Unanimously Approved

RECOMMENDED ACTION:

1. Approve the award of two applications from the Coachella Valley Association of Governments and City of Coachella totaling $303,777 under the Coachella Valley PM10 Reduction Program, as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program as described in this letter;
   
   
2. Approve the award of two applications from the Cities of Mission Viejo and Costa Mesa totaling $143,585 under the Local Government Match Program, as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program as described in this letter;
   
   
3. Approve the award of one $440,200 contract to TransVironmental Services to develop, implement, and administer the Regional Commuter Vanpool Program as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program, as described in this letter;
   
   
4. Approve the award of four contracts to City of Redondo Beach, City of Culver City, Orange County Transportation Authority and Riverside Transit Agency, totaling $2 million under the Alternative Fuel Transit Bus Program, as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program as described in this letter;
   
   
5. Approve the award of eight contracts to City of Riverside (2 projects), McLaughlin Engineering, Cattrac Construction, Sukut Construction, Peed Equipment Company, Jagur Tractor and Los Angeles County Sanitation, totaling $2 million under the On-/Off-Road Heavy-Duty Vehicles Diesel Reduction Program, as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program as described in this letter;
   
   
6. Authorize MSRC the authority to adjust project costs up to 5%, as necessary; and
   
   
7. Authorize the Chairman of the Board to execute the above-referenced seventeen contracts as part of the FY 2002-03 Work Program.
   
   
8. Approve Release of a new $1.5 million Freeway Service Patrol RFP, #2003-27, as part of the FY 2002-03 Work Program; and
   
   
9. Approve the reallocation of $200,000 from the State Emissions Mitigation Program Fund from a FY 2000-01 Sysco Food Services infrastructure project to a FY 1998-99 Albertson's dual fueled LNG truck project and authorize the Chairman of the Board to execute amendments, as necessary.

Beatrice J.S. LaPisto-Kirtley
Vice-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. Coachella Valley PM10 Reduction Program
The Coachella Valley PM10 Reduction Program offers 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 are: 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 CVAG jurisdictions in expeditiously implementing MSMs prior to the imposition of mandatory PM10 Reduction Rules by the AQMD. The MSRC Program offers a match against CMAQ, AB 2766 Subvention Funds, or other local funds. The MSRC Program provides 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 are applied. The total amount of Discretionary Funds allocated to this category is $1 million. The solicitation mechanism is a Program Announcement and Application, with a proposal receipt period beginning on November 5, 2002 and ending on April 8, 2003. Funding is available on a first-come, first-serve basis. On February 7, 2003, the Board approved the MSRC's recommendation to award funding totaling $670,413.69 for ten applications.

2. Local Government Match Program
The Local Government Match Program Announcement offers co-funding to qualifying alternative fuel vehicle and infrastructure projects. The total amount of Discretionary Funds allocated to this category is $2.45 million. The solicitation mechanism is a Program Announcement and Application, with a proposal receipt period beginning on December 1, 2002 and ending on April 8, 2003. Funding is available on a first-come, first-serve basis. On February 7, 2003, the Board approved the MSRC's recommendation to award funding totaling $933,300 for ten applications.

3. Regional Commuter Vanpool Program
The Regional Commuter Vanpool Program is intended to establish 100 new vanpools and 300 new riders in the existing vanpool arrangements. An RFP to retain a contractor to develop, implement and administer the Program was released on October 4, 2002, and closed January 10, 2003, resulting in the receipt of two eligible proposals. Participation in the program is open to both public and private entities and includes a graduated level of incentives. Of the $450,000 set aside for this effort, $180,000 is for administration and marketing functions and $270,000 is for direct incentives. The Program requires that participants must be SOV drivers.

4. Alternative Fuel Transit Bus Program
The Alternative Fuel Transit Bus Program offers co-funding to qualifying alternative fuel transit buses meeting or exceeding the optional NOx standard of 1.8 g/bhp-hr. The RFP includes a $350,000 geographic minimum per county. Proposals will be ranked based on cost-effectiveness within their own county up to the geographic minimum, after which all proposals are ranked against each other based on cost-effectiveness. Transit providers are also eligible to receive funding for infrastructure modifications and refueling facilities as well as mechanic training if the program 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 five proposals. The program included a $350,000 geographic minimum per county.

5. 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. Proposals will be ranked based on cost-effectiveness within the public or private sector into which they apply. 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.

6. Implementation of New or Expanded Freeway Service Patrols
The Freeway Service Patrols (FSP) Program offers $1.5 million to the four transportation agencies--LACMTA, OCTA, RCTC and SANBAG. The intention of this program is to reduce traffic emissions by providing for new or expanded FSP. At its September 26, 2002 meeting, the MSRC established a geographic funding minimum of $375,000 for each of the four transportation agencies. If one or more agencies do not apply for funding, the unallocated monies would be distributed amongst the applicants based on their ranking through the State's Tier II FSP Program. Due to the complexities of this program, the MSRC chose not to adopt its own evaluation criteria, but to use the State's Tier II criteria and ranking. An RFP was released with a proposal receipt period beginning on December 1, 2002 and ending on April 8, 2003.

Subsequent to MSRC's September 26, 2002 action, the MSRC was informed that State funding was not available for the Tier II FSP Program. As such, the MSRC at its February 27, 2003 meeting voted to rescind the current RFP and release a new RFP that reflects revised evaluation criteria. This item is discussed further in the Proposal section of this letter.

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 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. The Coachella Valley PM10 Reduction Program Announcement and Application was provided to the Coachella Valley Association of Governments and disseminated to other appropriate local governments in that jurisdiction. In addition, the Regional Vanpool Commuter Program RFP was mailed directly to a special mailing list of vanpool partners. 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 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 February 27, 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. Two applications under the Local Government Match Program, funded on a first-come, first-serve basis, one for the City of Mission Viejo in the amount of $75,085 for CNG refueling infrastructure and three medium-duty CNG vehicles and one for the City of Costa Mesa in the amount of $68,500 for CNG refueling infrastructure and three medium-duty vehicles;
   
   
2. Two applications under the Coachella Valley PM10 Reduction Program, funded on a first-come, first-serve basis, one from the Coachella Valley of Association of Governments in the amount of $291,808 for the purchase of CNG street sweepers, blow-sand removal vehicles and related equipment, and one from the City of Coachella in the amount of $11,969 for the purchase of a CNG street sweeper;
   
   
3. One $440,200 contract to the top ranked proposer, TransVironmental Services, to develop, implement, and administer the Regional Commuter Vanpool Program, including a three-month milestone requiring the contractor to present to the MSRC for approval program guidelines which demonstrate how the program will integrate with the regional ridesharing program;
   
   
4. Four contracts under the Alternative Fuel Transit Bus Program, ranked based on cost-effectiveness per county up to the $350,000 geographic minimum, then ranked based solely on cost-effectiveness, to:
   
   

   a)	City of Redondo Beach in the amount of $100,000 for infrastructure,
   b)	City of Culver City in the amount of $440,000 for alternative fuel vehicles and infrastructure,
   c)	Orange County Transportation Authority in the amount $1,360,000 for alternative fuel vehicles, and
   d)	Riverside Transit Agency in the amount of $100,000 for infrastructure;

5. Eight contracts under the On-/Off-Road Heavy-Duty Vehicles Diesel Reduction Program, ranked based on cost-effectiveness within the public or private sector, including $468,903 for public fleets and $1,531,097 for private fleets, to:
   
   

   a)	City of Riverside in the amount of $8,805 for one street sweeper,
   b)	City of Riverside in the amount of $43,597 for three refuse trucks,
   c)	McLaughlin Engineering in the amount of $564,360 for six scrapers,
   d)	Cattrac Construction in the amount of $74,979 for two dozers,
   e)	Sukut Construction in the amount of $557,653 for one dozer and four scrapers,
   f)	Peed Equipment Company in the amount of $72,363 for one tractor,
   g)	Jagur Tractor in the amount of $261,742 for one scraper, and
   h)	Los Angeles County Sanitation in the amount of $416,500 for three scrapers and one loader.

At this time the MSRC requests Board approval to fund the above-described seventeen contracts totaling $4,897,362 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 that the Board authorize the AQMD Board Chairman the authority to execute all agreements described in this letter as part of the FY 2002-03 Work Program.

As part of the FY 2002-03 Work Program, the MSRC also considered a recommendation from its MSRC-TAC to amend the FSP RFP that had been released on October 4, 2002. The MSRC was advised that the State's Tier II funding was removed because of fiscal constraints. Consequently, the evaluation criteria which the MSRC had planned to use to award funding was no longer applicable. The MSRC-TAC recommended amending the RFP.

At its February 27, 2003 meeting, the MSRC unanimously voted to decrease the geographic minimum to $200,000 per county for this particular solicitation and follow the statewide FSP guidelines using a formula based on population, traffic congestion and urban freeway miles. The remaining $700,000 will be awarded based on the state's formula. If a transportation agency does not apply for all or part of their geographic minimum, the unallocated monies would again be distributed using the state's formula. The MSRC felt, and AQMD legal counsel concurred, that adjustment of the geographic minimum and new evaluation criteria warranted release of a new FSP RFP. The scope and intent of the RFP, however, remains unchanged. The MSRC requests approval to release the new FSP RFP, #2003-27, as part of the FY 2002-03 Work Program. Upon approval of the AQMD Governing Board, the existing FSP RFP, #2003-17, which was released on October 4, 2002, will be rescinded. The last day that applications can be submitted under the new RFP remains April 8, 2003. Contract awards for the FSP Program will be considered by the MSRC in May and the AQMD Board in June.

On the Consent Calendar, the MSRC approved the Contract Administrator Report which included an item regarding the MSRC's heavy-duty program in a prior work program. Specifically, a FY 2000-01 MSRC contract with Sysco Food Services included $200,000 in funding from the State Emissions Mitigation (SEM) Program. Recently, the CARB decided not to fund infrastructure costs under the SEM Program. Therefore, the MSRC requests your approval to reallocate $200,000 from the State Emissions Mitigation Program Fund from the FY 2000-01 Sysco Food Services infrastructure project to a FY 1998-99 Albertson's dual fueled LNG truck project. The MSRC also requests that the Board authorize the AQMD Board Chairman to execute amendments, as necessary, for the Sysco and Albertson's projects. This action is not 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.

Attachment

RFP #2003-27 - Freeway Service Patrol RFP (1,477 KB)

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