BOARD MEETING DATE: September 5, 2003
AGENDA NO. 26

Mobile Source Air Pollution Reduction Review Committee

SYNOPSIS:

Below is a summary of key issues addressed at the MSRC’s July 24, 2003 meeting. Since the MSRC’s August 28, 2003 meeting was canceled, the next MSRC meeting is Thursday, October 23, 2003, at 1:30 p.m. in Conference Room CC8.

RECOMMENDED ACTION:

Receive and file.

Michael D. Antonovich
AQMD Representative on MSRC

Approval of Minutes

Minutes from the April 24 and May 22, 2003 meetings were unanimously approved. They are attached for your information (Attachment 1).

Appointment of Regional Rideshare Agency to MSRC

H&S Code 44244 required the creation of a regional Mobile Source Air Pollution Reduction Review Committee comprised of one representative from eight agencies, including a “regional ride sharing agency selected by the other members of the committee.” The MSRC had previously selected Southern California Rideshare as the representative of a regional ridesharing agency. However, as of June 30, 2003, Southern California Rideshare ceased providing ridesharing services and the regional ridesharing functions are now being shared by the county transportation commissions. Since the majority of the functions transferred to the Riverside County Transportation Agency, the MSRC selected RCTC as the regional ridesharing agency for purposes of participation on the MSRC. Subsequently, RCTC appointed Robin Lowe, an RCTC commissioner and Hemet Council Member, as the MSRC representative.

Approval of Alt. Fuel Infrastructure Contracts as Part of FY 2002-03 Work Program and Approval of Replacement Contract with Long Beach Transit Agency as Part of FY 2001-02 Work Program

The MSRC’s FY 2002-03 Work Program in Concept included a $1.25 million for the implementation of strategically located, publicly accessible alternative fuel infrastructure in the SCAQMD. RFP #P2003-08 provided up to $250,000 for refueling stations for CNG, LNG L/CNG fuels and had a proposal acceptance period from October 4, 2002 through April 8, 2003. Although funding was available on a first-come, first-serve basis, only proposals that satisfied all requirements delineated in the RFP and whose location were deemed strategically significant would be considered for funding. Factors to be used in determining the strategic significance of proposed refueling station locations included, but were not limited to, the station’s proximity to potential fleet users, ability to close an identified refueling network “gap,” and proximity to major transportation corridors. Seven proposals were received by the closing date, five from Clean Energy (formerly ENRG/Pickens Fuel) and two from Gas Equipment Systems, the latter of which were deemed non-responsive to the RFP. On July 24, 2003, the MSRC approved, by a 5-1 vote, five awards totaling $1.25 million to Clean Energy. The AQMD Board approved these five awards at its August 1, 2003 meeting. This program is now closed.

In the FY 2001-02 Work Program, the MSRC awarded several contracts to different agencies to install retrofit traps on vehicles in an amount up to $8,500 per trap. One of these contracts was awarded to Long Beach Transit Agency in the amount of $408,000 to retrofit 48 vehicles. The MSRC subsequently awarded the Long Beach Transit Agency $280,500 to retrofit 33 more vehicles. Following a cost savings, Long Beach Transit Agency requested that they be allowed to use the residual monies to retrofit 18 additional vehicles for a grand total of 99 traps. Before contract negotiations could be completed to amend the contract, increasing the contract value and adding additional traps, the original contract lapsed. In fact, no payments had been made on the original contract, #PT0203, at the time it expired. In order to fulfill the MSRC’s intention as indicated by their actions, on July 24, 2003, the MSRC approved a replacement contract to Long Beach Transit Agency in the amount of $684,837 for the installation of 99 retrofit traps as part of the FY 2001-02 Work Program. The AQMD Board approved this new or replacement contract at its August 1, 2003 meeting.

Adoption of FY 2003-04 Conceptual Work Program

On July 24, 2003, the MSRC adopted its FY 2003-04 Conceptual Work Program, based on priorities established at its annual retreat, which was held on March 31, 2003. The $14.4 million FY 2003-04 Conceptual Work Program includes the following elements, which are subject to refinement as the solicitations are developed :

1. Local Government Match Program ($3 million): This would provide match funding to cities and counties that receive AB 2766 funds for alternative fuel vehicles and infrastructure and unlike previous years funding for park & ride lot rehabilitation and improvements and video-conferencing;
    
2. Enhanced Rideshare Database Systems ($500,000): This would entail sole-source contracts to RCTC and the Los Angeles County MTA to develop a communications link between the regional rideshare software, which was recently assumed by RCTC, and MTA’s transit itinerary database;
    
3. Commuter Express Bus Service ($700,000): This would provide co-funding for long-distance, inter-county commuter bus service demonstrations using coach-style buses;
    
4. On-Road Heavy-Duty Vehicles ($2 million): This would provide co-funding, 25% of which would be reserved for public fleets, to offset a portion of the incremental costs of alternative fuel on-road heavy-duty vehicles with a threshold of $13,600 per ton NOx and like previous years would also provide funding for infrastructure so long as a minimum vehicle purchase requirement is met as well as some facility modifications and mechanic training;
    
5. Off-Road Heavy-Duty Vehicles ($2 million): This would provide co-funding to offset a portion of the incremental costs of alternative fuel or diesel-to-diesel repowers, emphasizing Tier 2 off-road engines;
    
6. Alternative Fuel/Advanced Technology Buses ($1.5 million): This would provide co-funding for full-size 40-foot alternative fuel buses as well as articulated CNG and articulated hybrid-electric, gasoline hybrid-electric, zero-emission, and alternative fuel "coach style" transit buses;
    
7. CNG School Buses ($2 million): Like previous years, this would provide co-funding to buy down the cost of CNG school buses for school districts and private contractors;
    
8. Alternative Fuel Infrastructure ($1.25 million): This would be a follow-on to the FY 2002-03 Infrastructure Program and would provide match funding for strategically located, publicly accessible alternative fuel infrastructure in the SCAQMD;
    
9. Diesel Exhaust After-Treatment Devices ($500,000): This would provide 100 percent funding up to $8,500 to retrofit existing diesel vehicles with CARB verified or certified devices including diesel particular filters and oxidation catalysts;
    
10. CNG Taxicab & Shuttle Incentives ($750,000): This would provide a $3,000 incentive up to $750,000 towards the purchase of CNG taxi-cabs; and
     
11. CNG Home Refueling Appliances ($200,000): This would provide consumers up to $500 towards the purchase of CNG home refueling units.

The MSRC will consider solicitations for the above elements in October and the AQMD Board will consider the FY 2003-04 Conceptual Work Program along with the solicitations at its November 7, 2003 meeting.

Included within the FY 2003-04 Conceptual Work Program is an allocation for technical advisor services during FY 2003-04. The contract with Raymond J. Gorski includes three one-year options incorporating a 4% annual inflation adjustment, with discretion by the MSRC to exercise said options, as granted by the AQMD Board. The MSRC unanimously approved exercising the second option year in Mr. Gorski’s contract in an amount not to exceed $146,385, with 75% (or an amount not to exceed $109,789) allocated as part of the FY 2003-04 Conceptual Work Program and 25% (or an amount not to exceed $36,596) allocated as part of the MSRC FY 2003-04 5% Administrative Budget. The AQMD Board approved this allocation at its August 1, 2003 meeting.

Adoption of FY 2003-04 Administrative Budget and Approval of Miscellaneous Expenditures for FY 2002-03 Second Quarter

Every May the MSRC considers an Administrative Budget for the next fiscal year, as a projection of the 5% administrative cap mandated by statute. The MSRC unanimously approved the FY 2003-04 Administrative Budget totaling $613,116, leaving a margin of $84,134. As mentioned above, the Administrative Budget includes 25% of the Technical Advisor’s contract, or an amount not to exceed $36,596, and $37,000 for miscellaneous expenditures, such as printing and mailing costs, computer upgrades and equipment for MSRC staff, office supplies and advertising.

The MSRC approved the reimbursement of miscellaneous administrative and mailing costs for FY 2002-03 in the amount of $36,000. These expenses are included within the 5% administrative cap mandated by the AB 2766 legislation and are adopted as part of an annual Administrative Budget, noted above. AQMD staff reported that actual FY 2002-03 second quarter expenditures were $21,119.52 for a total of $26,131.51 for the first half of the last FY. The MSRC unanimously received and filed this report. A report on actual FY 2002-03 third and fourth quarters will be provided to the MSRC in September, subsequent to the closing of the FY process.

Report of FY 1999-2000 and FY 2000-01 AB 2766 Discretionary Fund Biennial Audit

AB 2766 requires any agency that receives fee revenues subvened to the AQMD from the Department of Motor Vehicles to be subject to an audit once every two years. The fourth biennial audit has been completed. For the discretionary portion of the funds awarded by the MSRC, the scope of the audit included ten projects randomly selected from the Work Programs awarded by the MSRC in the FYs 1999-2000 and 2000-2001. The $6,000 cost of auditing MSRC recipients will be deducted from the fee revenues subvened to the MSRC in FY 2002-2003. The audits of the selected MSRC projects resulted in one finding which has been resolved.

Approval of Phase One of "Rideshare Thursday" Campaign

The FY 2002-03 Work Program included $800,000 for the development and implementation of a “Rideshare Thursday” public awareness campaign, the goals of which include raising awareness of the 1-800-COMMUTE telephone information line, increasing the use of HOV lanes, and increasing awareness and participation in local rideshare incentive programs. In March 2003 the MSRC awarded the contract to Johnson/Ukropina to implement the campaign, but the contract requires that the MSRC approve Phase I, the campaign design, before the contractor can proceed with the remaining phases and tasks. At its July 24, 2003 meeting, the MSRC unanimously approved the campaign design with a “Pick A Day, Any Day” theme and authorized the contractor to move forward with implementing the program in two flights, the first launching in September 2003 and the second in January 2004. This contract award was initially approved by the AQMD Board at its May 2, 2003 meeting.

Final Reports Received and Approved

The MSRC unanimously received and approved two final reports, as follows:

1)	City of Culver City Contact #01009, which provided $480,000 towards the purchase of 12 CNG buses; and
2)	Stater Brothers Markets Contract #01031, which provided $472,065 towards the purchase of 15 LNG vehicles.

All final reports are filed in the AQMD's library and a two-page summary of each closed project can be viewed in the electronic library on the MSRC's Web site at http://www.msrc-cleanair.org.

Contract Modification Request

The MSRC considered the following three contract modifications, as follows:

1)	Unanimous approval of alternative outreach tasks and permanent withhold of the 10% retention for USPS Contract #00018, which originally provided $2 million for 400 electric vehicle mail delivery vehicles ;
2)	Unanimous approval to modify vehicle specs but denial of CNG infrastructure modification for Palm Springs Disposal Services Contract #02015, which provides $290,000 for the purchase of 10 LNG refuse haulers, construction of an LNG station and maintenance facility modifications and training; and
3)	Unanimous approval of project schedule and program design changes but denial of request to implement a 25-employee minimum for TransVironmental Solutions Contract #02029, which provides $189,000 to design and implement a regional guaranteed ride home program.

Contract Administrator Report

The MSRC's AB 2766 Contract Administrator provided a written status report on all open contracts from FY 1998-99 through the present. This Contract Administrator Report is attached for your information (Attachment 2).

Attachments

1. Approved Minutes for April 24 and May 22, 2003 MSRC Meetings
2. Contract Administrator Report

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