BOARD MEETING DATE: May 7, 2004
AGENDA NO. 15

Approve Multiple Contract Awards as Part of MSRC's FY 2003-04 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 developed a $14.5 million FY 2003-04 Work Program and subsequently released multiple solicitations to solicit proposals and applications. Four solicitations closed on January 30, 2004. The MSRC met on April 22, 2004, to take action on recommendations from its Technical Advisory Committee. Consequently, the MSRC requests approval of the following contract awards: 1) seven on-road heavy-duty vehicle projects totaling $1,023,235; 2) four off-road heavy-duty vehicle projects totaling $2,000,000; and 3) five alternative fuel/advanced technology transit bus projects totaling $1,500,000. Recommendations in response to the Regional Commuter Bus Pool Program Opportunity Notice are still under development. The remaining Work Program solicitations closed April 9, 2004, and contract awards will be considered separately in the future. The MSRC also requests authority to adjust contracts up to five percent and authority for the Board Chairman to execute agreements. (Review: Mobile Source Air Pollution Reduction Review Committee, April 22, 2004)

COMMITTEE:

Mobile Source Air Pollution Reduction Review, April 22, 2004, Approved

RECOMMENDED ACTIONS:

1. Approve the award of seven contracts totaling $1,023,235 under the On-Road Heavy-Duty Alternative Fuel Vehicle Program as part of the FY 2003-04 AB 2766 Discretionary Fund Work Program, as described in this letter and as follows:

1. A contract with City of Ontario in an amount not to exceed $35,082 for up to two heavy-duty, alternative fuel refuse vehicles;
    
2. A contract with City of Riverside in an amount not to exceed $38,673 for up to three heavy-duty, alternative fuel refuse vehicles;
    
3. A contract with City of Riverside in an amount not to exceed $14,611 for up to three heavy-duty, alternative fuel dump trucks;
    
4. A contract with City of Riverside in an amount not to exceed $4,812 for up to two heavy-duty, alternative fuel water service trucks;
    
5. A contract with CR&R in an amount not to exceed $463,168 for up to 30 heavy-duty, alternative fuel refuse trucks and mechanic training;
    
6. A contract with CR&R in an amount not to exceed $155,468 for up to ten heavy-duty, alternative fuel refuse trucks and mechanic training; and
    
7. A contract with Athens Services in an amount not to exceed $311,421 for up to 14 heavy-duty, alternative fuel refuse trucks, refueling infrastructure, facility modifications and mechanic training.

2. Approve the award of four contracts totaling $2,000,000 under the Off-Road Heavy-Duty Diesel Pollution Reduction Program as part of the FY 2003-04 AB 2766 Discretionary Fund Work Program, as described in this letter and as follows:

1. A contract with Sukut Construction, Inc. in an amount not to exceed $466,807 for up to four scrapers and three dozers;
    
2. A contract with Road Builders, Inc. in an amount not to exceed $851,309 for up to ten scrapers and one loader;
    
3. A contract with Larry Jacinto Construction in an amount not to exceed $454,510 for up to six scrapers; and
    
4. A contract with Herigstad Equipment Rental in an amount not to exceed $227,374 for up to two scrapers.

3. Approve the award of five contracts totaling $1,500,000 under the Alternative Fuel/Advanced Technology Transit Bus Program as part of the FY 2003-04 AB 2766 Discretionary Fund Work Program, as described in this letter and as follows:

1. A contract with Foothill Transit in an amount not to exceed $715,000 for up to 25 compressed natural gas transit buses and refueling infrastructure;
    
2. A contract with Orange County Transportation Authority in an amount not to exceed $200,000 for up to five gasoline hybrid-electric transit buses;
    
3. A contract with Long Beach Transit in an amount not to exceed $335,453 for up to 27 gasoline hybrid-electric transit buses
    
4. A contract with Norwalk Transit in an amount not to exceed $118,052 for up to four gasoline hybrid-electric transit buses; and
    
5. A contract with Los Angeles County Metropolitan Transportation Authority in an amount not to exceed $131,495 for up to eight compressed natural gas transit buses.

4. Authorize MSRC the authority to adjust contract awards up to five percent, as necessary; and
    
5. Authorize the Chairman of the Board to execute sixteen contracts, as described above.

Beatrice J.S. LaPisto-Kirtley
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.

On November 7, 2003, the Board approved the MSRC’s $14.5 million FY 2003-04 AB 2766 Discretionary Fund Work Program in Concept, including the release of six solicitations. Subsequently, one additional solicitation was approved by the Board on December 5, 2003. Of the seven solicitations, four closed on January 30, 2004, as follows:

1. On-Road Heavy-Duty Alternative Fuel Vehicle Program
   This RFP (#P2004-11) provided co-funding to qualifying new, on-road heavy-duty alternative fuel vehicles. Of the $2 million offered in funding, $500,000 was reserved for public fleets. Qualifying vehicles must achieve the optional NOx plus non-methane hydrocarbon (NMHC) standard of 1.8 g/bhp-hr. Proposals will be evaluated based on cost effectiveness, with a maximum threshold of $13,600 per ton of NOx reduced. Funds up to $100,000 but not exceeding 50% of project costs were also available for refueling infrastructure with a minimum purchase of vehicles as well as up to $10,000 for facility modifications and up to $5,000 for mechanic training. Eight proposals were received requesting MSRC funds in the amount of $1,696,212. Seven proposals were approved at the MSRC’s April 22, 2004 meeting; details are described below in the Proposals section.
    
2. Off-Road Heavy-Duty Diesel Pollution Reduction Program
   This RFP (#P2004-12) provided $2 million in co-funding to qualifying new, off-road alternative fuel heavy-duty vehicles and diesel-to-diesel repowers to Tier 2 off-road engines. Tier 2 engines must achieve an emissions level of 4.8 g/bhp-hr NOx plus NMHC. Proposals were ranked based on cost effectiveness with a maximum threshold not exceeding $13,600 per ton of NOx reduced. In the event proposals had equal cost effectiveness, they were ranked in order of receipt. Funding was also available for refueling infrastructure with a minimum purchase of vehicles; up to $100,000 with ten qualifying vehicles and up to $50,000 with five qualifying vehicles. Nine proposals were received requesting MSRC funds in the amount of $7,529,520. Four proposals were approved at the MSRC’s April 22, 2004 meeting; details are described below in the Proposals section.
    
3. Alternative Fuel/Advanced Technology Transit Bus Program
   This RFP (P2004-13) provided $1.5 million in funding for medium- and full-size alternative fuel and advanced technology transit buses. A per county geographic minimum of $200,000 was established with projects not to exceed a cost-effectiveness threshold of $13,600 per ton of NOx reduced. Funding was also provided for refueling infrastructure up to $100,000 with a minimum purchase of eight transit buses, for facility modifications up to $10,000, and for mechanic training up to $5,000. Five proposals requesting MSRC funds in the amount of $3,395,701 were received. Partial funding for each of the five proposals was approved at the MSRC’s April 22, 2004 meeting; details are described below in the Proposals section.
    
4. Regional Commuter Bus Pool Program
   The objective of this Program Opportunity Notice (PON #2004-01) was to seek innovative pre-proposals toward development and coordination of a regional program to facilitate the creation of new commuter bus pools. The MSRC allocated $800,000 for this category and received five pre-proposals. Because evaluation of the one qualifying pre-proposal still continues, no action is currently recommended on this program; further details are provided in the Proposals section.

Outreach

In accordance with the AQMD's consulting and contracting policies, a public notice advertising the solicitations was published on two different days in 25 newspapers and publications, including several targeting minorities. The solicitations were also was placed on the MSRC's website at "http://www.msrc-cleanair.org" as well as the AQMD's website 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.

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. Solicitations were downloaded from the MSRC's website and mailed upon request. Additionally, a target mailing for the Commuter Bus Pool Program PON was sent to shuttle bus companies.

Bidders' Conferences

Bidders' Conferences were conducted in early December 2003 at AQMD headquarters. A general question-and-answer session was conducted.

Evaluation Process

The MSRC's Technical Advisory Committee (MSRC-TAC) formed an evaluation subcommittee to review the proposals/pre-proposals to determine eligibility, using the criteria within the solicitations (described above). At its April 22, 2004 meeting, the MSRC considered recommendations from its Technical Advisory Committee.

Proposals

On April 22, 2004, as part of the FY 2003-04 Work Program, the MSRC considered recommendations from its MSRC-TAC and approved contract awards in a 7-0 vote, with one abstention. The awards are as follows:

1. On-Road Heavy-Duty Alternative Fuel Vehicle Program
   Seven contract awards totaling $1,023,235, with funds awarded on a cost-effectiveness basis, and a $500,000 reserve set aside for public fleets, as follows:

a)	City of Ontario in the amount of $35,082 to purchase two heavy-duty, alternative fuel refuse vehicles;
b)	City of Riverside in the amount of $38,673 for three heavy-duty, alternative fuel refuse vehicles;
c)	City of Riverside in the amount of $14,611 for three heavy-duty, alternative fuel dump trucks;
d)	City of Riverside in the amount of $4,812 for two heavy-duty, alternative fuel water service trucks;
e)	CR&R in the amount of $463,168 for 30 heavy-duty, alternative fuel refuse trucks and mechanic training;
f)	CR&R in the amount of $155,468 for ten heavy-duty, alternative fuel refuse trucks and mechanic training; and
g)	Athens Services in the amount of $311,421 for 14 heavy-duty, alternative fuel refuse trucks, refueling infrastructure, facility modifications and mechanic training.

Since public fleet proposals did not utilize all of the $500,000 reserve, the monies became available for private fleets. The funds not awarded under this category may be used to fund additional projects under other categories.

2. Off-Road Heavy-Duty Diesel Pollution Reduction Program
   Four contract awards totaling $2,000,000, with funds awarded on a cost-effectiveness basis, as follows:

a)	Sukut Construction, Inc. in the amount of $466,807 for four scrapers and three dozers;
b)	Road Builders, Inc. in the amount of $851,309 for ten scrapers and one loader;
c)	Larry Jacinto Construction in the amount of $454,510 for six scrapers; and
d)	Herigstad Equipment Rental in the amount of $227,374 for two scrapers (one scraper is partially funded).

The MSRC established a backup list of eligible projects under this category requesting funds totaling $6,590,219. If additional monies are identified, the MSRC may consider projects on the backup list. Any contract awards that result will be presented separately for approval by the Board in the future.

3. Alternative Fuel/Advanced Technology Transit Bus Program
   Four contract awards totaling $1,500,000, with funds awarded on a cost-effectiveness basis, and a per-county geographic minimum of $200,000, as follows:

a)	Foothill Transit in the amount $715,000 for 25 compressed natural gas transit buses and refueling infrastructure;
b)	Orange County Transportation Authority in the amount of $200,000 for five gasoline hybrid-electric transit buses;
c)	Long Beach Transit in the amount of $335,453 for 27 gasoline hybrid-electric transit buses and refueling infrastructure;
d)	Norwalk Transit in the amount of $118,052 for four gasoline hybrid-electric transit buses; and
e)	Los Angeles County Metropolitan Transportation Authority in the amount of $131,495 for eight compressed natural gas transit buses.

Proposals were not received from either San Bernardino or Riverside County, so the monies set aside for the geographic minimum became available for projects in other counties. The MSRC also established a backup list of eligible projects under this category requesting funds totaling $927,555. If additional monies are identified, the MSRC may consider projects on the backup list. Any contract awards that result will be presented separately for approval by the Board in the future.

4. Regional Commuter Bus Pool Program
   Although five pre-proposals were received, two were not consistent with the intent of the PON. The other three pre-proposers (First Student, Buspool.org, and TransVironmental Solutions) were asked to provide additional information. In the end only one pre-proposal offered a promising and innovative approach to the operation of sustainable commuter bus pools within the region. However, several aspects of the Buspool.org’s pre-proposal merit further evaluation and clarification. The MSRC took no action on this category at its April 22, 2004 meeting, but a recommendation is anticipated next month. Any contract award or other action will be presented separately for approval by the Board in the future.

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 five percent of the project's recommended funding. The Board has granted this authority to the MSRC for all past work programs. Finally, the MSRC requests the Board authorize the AQMD Chairman of the Board the authority to execute all agreements described in this letter as part of the FY 2003-04 Work Program.

The remaining Work Program solicitations closed April 9, 2004, and contract awards will be considered separately in the future.

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.

No Attachments

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