BOARD MEETING DATE: November 7, 2003
AGENDA NO. 10

Approve $14.5 Million FY 2003-04 AB 2766 Discretionary Fund Conceptual Work Program, Release of Seven Solicitations, $750,000 for CNG Taxicab/Shuttle Incentives, and Commitment of $2.7 Million for Three Additional Elements; and Approve FYs 2001-02 & FY 2003-04 Contract Awards

SYNOPSIS:

The MSRC has proposed a $14.5 million FY 2003-04 Work Program consisting of the following program elements: Local Government Match, Enhanced Rideshare Database Systems, Commuter Express Bus Pool Service, On-Road & Off-Road Heavy-Duty Vehicles, Alternative Fuel Transit Buses, CNG School Bus Incentives, Alternative Fuels Infrastructure, Diesel Exhaust After-Treatment Devices, CNG Taxicab/Shuttle Incentives, and CNG Home Refueling Appliances. The MSRC requests Board approval of the $14.5 Million FY 2003-04 Conceptual Work Program, release of seven solicitations providing up to $11,050,000, a $750,000 allocation for CNG Taxicab/Shuttle Incentives, and commitment of $2.7 Million for three additional elements. The MSRC also requests approval of two contract awards in the FYs 2001-02 and 2002-03 Work Programs, authority to adjust project costs up to five percent, and authority for Board Chairman to execute two agreements. (Review: Mobile Source Air Pollution Reduction Review Committee, July 24 and October 23, 2003)

RECOMMENDED ACTIONS:

1. Approve $14.5 Million FY 2003-04 AB 2766 Discretionary Fund Conceptual Work Program;
    
2. Approve release of four RFPs, two Program Announcements, and one Program Opportunity Notice, providing funding up to $11.05 million, as attached;
    
3. Approve $750,000 for CNG taxicab & shuttle incentives to vehicle purchasers and authority for the Chairman of the Board to execute agreements, if deemed necessary and applicable;
    
4. Approve commitment of $2 million for a CNG School Bus Incentives Program, subject to AQMD Board approval at a later date;
    
5. Approve commitment of $500,000 for Regional Rideshare Database Enhancements, which will entail two sole-source contracts, subject to AQMD Board approval at a later date;
    
6. Approve commitment of $200,000 for CNG Home Refueling Appliances Buydown Program, which will entail one sole-source contract, subject to AQMD Board approval at a later date;
    
7. Approve New/Replacement Contract to County of Riverside in the amount of $340,000 as part of FY 2001-02 Work Program;
    
8. Approve Modified Scope for Contract with Riverside Transit Agency in the amount of $100,000 as part of FY 2002-03 Work Program;
    
9. Authorize MSRC the authority to adjust contracts up to 5%, as necessary; and
    
10. Authorize the Chairman of the Board to execute two contracts (Items 7 & 8).

Beatrice J.S. LaPisto-Kirtley
Vice-Chair, MSRC

Background

1. FY 2003-04 Conceptual Work Program
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. It is projected that more than $15 million will be available in the Discretionary Fund in FY 2003-04 from revenue, interest and turnback funds. This includes allocation of the prudent reserve typically maintained by the MSRC.

2. FY 2001-02 Work Program
In the FY 2001-02 Work Program, the MSRC awarded several contracts to different agencies to install PM retrofit traps on vehicles in an amount up to $8,500 per trap. One of these contracts was awarded to the County of Riverside in the amount of $340,000 to retrofit 40 vehicles. Because execution of the original contract was delayed for various reasons, the County had insufficient time to install the 40 particulate traps. Before the MSRC could consider an extension request, the contract lapsed. Considerable delays in trap installations have arisen because the manufacturers have been unable to meet the demand and because vendors must modify the traps for each vehicle type. To fulfill the intent of the MSRC and AQMD Board’s support for this program, the MSRC considered a replacement contract at its October 23, 2003 meeting. Further details on the replacement contract are described below in the Proposals section.

3. FY 2002-03 Work Program
As part of the FY 2002-03 Work Program, the Riverside Transit Agency was awarded $100,000 for improvements to its alternative fuel refueling station. RTA originally proposed adding a minimum 800 scfm compressor, and replacing dispensing and emergency shut-down panel systems at their existing fueling station at 1825 Third Street in Riverside. Recently, RTA’s compressor experienced a malfunction that is beyond repair; therefore, RTA would like to construct a new CNG refueling station on the same property. The old station will be maintained as a backup fueling source. The MSRC considered modifications to this draft, unexecuted contract at its October 23, 2003 meeting. Further details on the contract modification are described below in the Proposals section.

Proposals

To utilize FY 2003-04 funds and achieve the maximum emissions reduction benefits, the MSRC developed a $14.5 million FY 2003-04 AB 2766 Discretionary Fund Conceptual Work Program. The Work Program consists of the following elements.

  Clean Fuels Programs ($10.5 million)

• RFP #P2004-11: On-Road Heavy-Duty Alternative Fuel Vehicle Program, providing funding for new, heavy-duty alternative fuel vehicles, refueling infrastructure with a minimum purchase of vehicles, facility modifications and mechanic training with a reserve of 25% funding for public fleets ($2 million);
• RFP #P2004-12: Off-Road Heavy-Duty Diesel Pollution Reduction Program, providing funding for new alternative fuel off-road vehicles, diesel-to-diesel repowers to Tier 2 off-road engines; and refueling infrastructure with a minimum purchase of vehicles, ($2 million);
• RFP #P2004-13: Alternative Fuel & Advanced Technology Transit Bus Program, providing funding for medium- and full-size alternative fuel and advanced technology transit buses, refueling infrastructure, facility modifications, and mechanic training with a $200,000 per county geographic minimum ($1.5 million);
• CNG School Bus Incentives Program, ($2 million): the specifics of this program are still being developed;
• RFP #P2004-14: Implementation of Publicly Accessible Alternative Fuel Infrastructure in the SCAQMD, with a maximum of $250,000 for refueling stations for CNG, LNG, and L/CNG fuels and a funding cap per entity of $750,000 ($1.25 million);
• PA #2004-06: Diesel Exhaust After-Treatment Retrofit Program, providing 100 percent funding up to $8,000 per CARB verified devices and $500 per device to offset higher low-sulfur diesel costs ($500,000);
• Taxicab & Shuttle Incentives, providing a $3,000 buydown per vehicle to vehicle purchasers, as co-funding match to the AQMD’s taxi incentive ($750,000);
• CNG Home Refueling Appliance Buydown Program ($200,000): commercialization of this appliance is still being developed and specifics of the program will be brought to the MSRC and AQMD Board for consideration in early 2004.

  TCM Programs ($4.3 million)

• PA #2004-05: Local Government Match Program, providing funding for medium- and heavy-duty vehicle purchases and infrastructure as well as park-n-ride lot rehabilitation and purchase of new and expanding video-conferencing facilities ($3 million);
• Regional Rideshare Database Enhancements ($500,000), specifics of this element are still being developed and will be brought to the MSRC and AQMD Board for consideration in early 2004; and
• PON #2004-01: Regional Commuter Buspool Program, seeking new, innovative buspool solutions for over-the-road coaches for buspool services ($800,000), with priority for 2003 and 2004 vintage engines that use alternative fuels.

The MSRC initially approved the above framework for its FY 2003-04 Conceptual Work Program on July 24, 2003. The solicitation documents to carry out the Work Program were unanimously approved by the MSRC on October 23, 2003. The target funding allocations for the solicitations may be reassigned by the MSRC based on its review of proposals received in each respective category and to allow for mid-year adjustments. Also, additional dollars may be allocated to each solicitation if the MSRC receives additional revenue or turnback funds.

The MSRC will consider details and final funding amounts for three elements of its Work Program in early 2004. These include the following: 1) CNG School Bus Incentives Program; 2) CNG Home Refueling Appliance Buydown Program, which currently entails a sole-source contract with FuelMaker Corporation; and 3) Regional Rideshare Database Enhancements, which currently entail sole-source contracts with the Los Angeles County Metropolitan Transportation Authority and Riverside County Transportation Commission, with the amounts for each to be determined later. At its July 24, 2003 meeting, the MSRC unanimously approved committing $2.7 million for these three elements and currently seeks Board approval of the FY 2003-04 Conceptual Work Program, including target funding commitments for these three programs. The MSRC will take further action when program details are more defined and bring them forward to the AQMD Board for consideration at that time.

At this time, the MSRC requests the AQMD Board’s approval to issue four RFPs, two Program Announcements and one PON providing funding up to $11.05 million (see attached solicitation documents), as part of the FY 2003-04 Conceptual Work Program. The Program Announcements are open for extended periods, with proposals accepted January 13, 2004 through April 9, 2004. The Infrastructure Program RFP will also have an extended period with applications first accepted on November 7, 2003 and closing April 9, 2004. The remaining solicitations close 5:00 p.m. January 30, 2004. Funds for the Program Announcements will be distributed on a first-come, first-serve basis; funds for the RFPs will be distributed on a cost-effectiveness basis.

The MSRC also approved $750,000 for CNG taxicab and shuttle incentives. This program will provide a $3,000 buydown incentive per qualifying taxi or shuttle vehicle and will piggyback on the AQMD’s taxi incentive. The $3,000 buydown will go directly to individual vehicle purchasers and will be implemented immediately upon AQMD Board approval. The MSRC requests approval of this program and the direct incentives, and authorization for the Chairman of the Board to execute agreements, if deemed necessary and applicable.

Two contract issues with the County of Riverside and the Riverside Transit Agency (RTA) are also addressed in this action. First, the MSRC approved a $340,000 replacement contract to the County of Riverside on July 24, 2003 to install 40 retrofit traps as part of the FY 2001-02 Work Program. Because the contract lapsed before completion of the project, the MSRC approved a new contract on July 24, 2003 with the County. Since no traps have been installed yet, the MSRC seeks Board approval of the replacement contract for $340,000. Second, the MSRC requests a contract modification to an unexecuted contract, No. 03042, with RTA for construction of a new CNG refueling station. The MSRC originally awarded $100,000 to expand and improve its existing CNG refueling station. Because of a malfunction of its existing compressor, RTA has requested a modification to the statement of work to allow funds to be used for construction of a new CNG refueling station at the same facility. On October 23, 2003, the MSRC unanimously approved this contract modification, as part of the FY 2002-03 Work Program. Since the contract with RTA hasn’t been executed, the statement of work will be modified and the contract entered into for a new station.

Finally, the MSRC requests authority to adjust the funds allocated to the above two contracts by up to five percent and to have the AQMD Board Chairman execute these two agreements. The Board has previously granted the MSRC authority to adjust contract costs up to five percent.

Outreach

The funding solicitations described above, in accordance with the AQMD's consulting and contracting policies, will be advertised in a public notice each on two different days in 25 newspapers and publications, including several targeting minorities.

The funding solicitations will be placed on the MSRC's website at "http://www.msrc-cleanair.org" and also included on the AQMD's website under the "Business and Job Opportunities" icon, and information will be included about the RFP/Qs on the AQMD's bidder's 24-hour telephone message line (909) 396-2724. A press release will also be issued and placed on the MSRC’s website.

In addition to the AQMD's standard practices, a brochure announcing these funding opportunities is being mailed to over 1,800 interested parties on the MSRC's mailing list, as well as to the Black and Latino Legislative Caucuses, Ethnic Community Advisory Group, City Managers, Chambers of Commerce, and business associations. The brochure will also be mailed to local legislators, mayors, city council members and city managers in the four counties, and AB 2766 Subvention Fund city administrators. The perforated portion of the brochure may be returned to request copies of the solicitations. The Program Application & Announcement for the Local Government Match Program will be directly mailed to all local jurisdictions receiving AB 2766 Subvention Funds.

To assist potential bidders in submitting qualified proposals, bidders’ conferences will be conducted at AQMD Headquarters in Room CC6 as follows:
 

Proposal Evaluation and Panel Composition

Proposals received for the Work Program’s funding solicitations (outlined under the proposals section) will be evaluated by members of the MSRC-TAC, a diverse group of individuals appointed by participating members as prescribed in the Health & Safety Code. Several evaluation teams will be formed to evaluate proposals in the various program solicitations, the membership of which will be identified in the Board letter recommending specific contract awards.

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 (1,996 KB)

Att. 1: RFP #P2004-11 - On-Road Heavy-Duty Alternative Fuel Vehicle Program
Att. 2: RFP #P2004-12 - Off-Road Heavy-Duty Diesel Pollution Reduction Program
Att. 3: RFP #P2004-13: Alternative Fuel & Advanced Technology Transit Bus Program
Att. 4: RFP #P2004-14: Alternative Fuel Infrastructure
Att. 5: PA #2004-06: Diesel Exhaust After-Treatment Retrofit Program
Att. 6: PA #2004-05: Local Government Match Program
Att. 7: PON #2004-01: Regional Commuter Buspool Program

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