BOARD MEETING DATE: April 2, 2004
AGENDA NO. 14

Approve Two New Contracts and One Amended Contract as Part of FYs 2001-02 & 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:

The MSRC requests approval to execute two new contracts as part of the FY 2001-02 Work Program and amend one contract from the FY 2002-03 Work Program. The two new contracts will allow a contractor to complete projects commenced under the original executed contracts, which expired before contract extension requests could be executed. The amended contract would move a natural gas fueling site to another location within one mile of the original site. The MSRC also requests authority to adjust project costs up to five percent, and authority for the Board Chairman to execute these new and amended agreements.

COMMITTEE:

Mobile Source Air Pollution Reduction Review, March 25, 2004

RECOMMENDED ACTIONS:

1. Approve an amended contract with Clean Energy as part of FY 2002-03 Work Program, as described in this letter;
    
2. Approve new contracts with City of Commerce & City of San Bernardino as part of FY 2001-02 Work Program, as described in this letter;
    
3. Authorize MSRC the authority to adjust contracts up to 5%, as necessary; and
    
4. Authorize the Chairman of the Board to execute new and amended contracts.

Beatrice J.S. LaPisto-Kirtley
Chair, MSRC

Background

1. FY 2002-03 Work Program
As part of the FY 2002-03 Work Program, the MSRC allocated $1.25 million for the implementation of strategically located, publicly accessible alternative fuel infrastructure in the SCAQMD. On August 1, 2003, Clean Energy was awarded five contracts each totaling $250,000 for the installation of five alternative fuel stations throughout the SCAQMD under the Alternative Fuel Infrastructure Program. One station was to be implemented in partnership with the Southern California Gas Company (SoCalGas) and located at 7171 Romaine Street at the SoCalGas Hollywood Base. Subsequent to the MSRC award, SoCalGas decided against providing public access CNG fueling at its Hollywood base. Clean Energy has identified an alternative site that would provide public access in the Hollywood area less than one mile away. The MSRC considered modifications to this draft, unexecuted contract at its March 25, 2004 meeting. Further details on the contract modification are described below in the Proposals section.

2. FY 2001-02 Work Program
In the FY 2001-02 Work Program, the MSRC made awards to 15 cities totaling $2,526,584 under the Local Government Match Program. One of these awards was made to the City of Commerce for $105,005 for the purchase of four heavy-duty CNG vehicles and the installation of a CNG fueling station. Although the City has purchased the vehicles, they have not yet completed installation of the CNG fueling station. Unfortunately, before an amendment to extend the term could be fully executed, the contract (#L0208) lapsed. The contract balance set aside for the infrastructure portion is $25,005. A second award was made to the City of San Bernardino for $76,792 to install an LNG/L-CNG fueling station. The station installation is not yet complete. This contract (#L0207) also lapsed before an amendment to extend the term could be fully executed. No payments have been made on the contract to date. In order to fulfill the its intent, the MSRC considered new or substitute contracts for these two contractors at its March 25, 2004 meeting. Further details on the substitute contracts are described below in the Proposals section.

Proposals

1. Approve amending a current contract with Clean Energy to relocate a future public access CNG station to an alternative site at 6601 Melrose Avenue, approximately three-quarters of a mile from the original proposed site. Clean Energy has provided documentation of an agreement with the owner of the prospective new site as well as commitment letters from fleets which would use the station. They requested a modification to the statement of work adjusting the site to the new location. On March 25, 2004, the MSRC unanimously approved the amended statement of work for this unexecuted contract, #MS03032. At this time the MSRC seeks Board approval of the amended contract as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program.

2. Approves new or substitute contracts for the Cities of Commerce and San Bernardino under the Local Government Match Program as part of the FY 2001-02 Work Program to allow two natural gas stations to be completed. On March 25, 2004, the MSRC unanimously approved: 1) a new contract with a term of six months to the City of Commerce in the amount of $25,005 to complete installation of a CNG fueling station; and 2) a new contact with a term ending August 2006 to the City of San Bernardino in the amount of $76,792 to complete the LNG/L-CNG fueling station.. The MSRC reserves the authority to modify the contract terms as deemed appropriate.

The MSRC requests authority to adjust contract costs up to five percent, as previously granted in the past by the AQMD Board, and authority for the AQMD Board Chairman to execute these new and amended agreements.

Fiscal Impact

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

None

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