BOARD MEETING DATE: May 7, 2004
AGENDA NO. 30
Mobile Source Air Pollution Reduction Review Committee
SYNOPSIS:
Below is a summary of key issues addressed at the MSRC’s March 25, 2004 meeting. The MSRC also met on Thursday, April 22, 2004, to consider multiple work program contract awards. A summary will be provided in the June Board package. The MSRC meets next on Thursday, May 27, 2004, at 1:30 p.m. in Room CC8.
RECOMMENDED ACTION:
Receive and file.
Michael D. Antonovich
AQMD Representative on MSRC
Minutes
Minutes from February 26, 2004 meeting were unanimously approved. They are attached for your information (Attachment 1).
Annual Retreat to Brainstorm FY 2004-05 Work Program
The MSRC conducted its annual joint retreat with its Technical Advisory Committee on Thursday, March 25, 2003. The MSRC heard presentations on proposed legislation, including AQMD-sponsored bills SB 1247 (Soto) and SB 1397 (Escutia), CARB’s funding priorities and mobile source incentive funding, AQMD’s incentive programs and direction for 2004, and advances in engine technology and product availability. MSRC staff reviewed the MSRC’s last work program, outlined the timeline for adopting the FY 2004-05 Work Program, reported on revenues available for FY 2004-05 which is approximately $14.2 million, and explored 30 different potential work program categories for future funding. Following presentations and discussion, each MSRC member filled out ballots to indicate their funding priorities for the FY 2004-05 Conceptual Work Program. The results will be compiled and presented at the next MSRC meeting. They will be shared with the AQMD Board in the next Committee report.
Policy Adopted to Set Earliest Date for Project Implementation
The MSRC’s past practice has been to limit eligibility for receipt of AB 2766 Discretionary Funds to work performed on or after the date of an RFP’s release. In the case of vehicle purchases, the cut-off point has customarily been the issuance of a purchase order for the vehicle. The purpose of this approach was to reduce the likelihood of paying for projects which would have occurred regardless of the availability of MSRC funding. The MSRC formally adopted language to set this past practice as policy. The new policy reads, as follows: "The release date of an RFP will be the earliest date on which work on a project can commence and be potentially eligible for funding. The MSRC is not intending to modify and hereby reaffirms its previously adopted policy on scope changes and pre-contract costs that any expenditures made in anticipation of a contract and before the execution of a contract are solely at prospective contractor’s risk. If no contract is executed, MSRC/AQMD are not in any way liable for payment of any funds expended pre-contract. Reimbursement of said expenses are discretionary with the MSRC/AQMD." This language will be included in future MSRC solicitations.
FYs 2001-02 & 2002-03 Work Program New Contracts and Amendments
In the FY 2001-02 Work Program, the MSRC made awards to 15 applicants 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. On March 25, 2004, in order to fulfill its intent, the MSRC unanimously approved new or substitute contracts for these two contractors, and the AQMD Board subsequently approved the new contracts at their April 2, 2004 meeting.
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 in the Hollywood area. On March 25, 2004, in order to fulfill its intent, the MSRC unanimously approved an amended contract with Clean Energy, and the AQMD Board subsequently approved the amended contract at their April 2, 2004 meeting.
Received and Filed Report on FY 2003-04 First Quarter Expenditures
AB 2766 legislation caps the MSRC’s administrative expenses in an amount not to exceed 5% of revenues. Consequently, the MSRC adopts an annual Administrative Budget establishing costs within the 5% cap. One component of that budget is an allocation for miscellaneous administrative and mailing costs. For FY 2003-04 the MSRC approved an amount not to exceed $37,000. Quarterly, staff reports on actual miscellaneous expenditures. For the first quarter of FY 2003-04 actual miscellaneous administrative and mailing costs totaled $4,476.63. Total costs for the first quarter were slightly reduced because the August 2003 meetings were canceled, which reduced costs for printing, postage and refreshments, and because no advertising expenses were incurred this quarter. Staff will report on second quarter expenses at the next MSRC meeting.
Final Reports Received and Approved
The MSRC unanimously received and approved two final reports, as follows:
1) Anaheim Transportation Network Contract #00023 provided $56,000 for the Anaheim Transportation Network Commuter Incentive Program, targeting non-regulated work sites to encourage individuals to rideshare as opposed to driving solo to work; and
2) County Sanitation Districts of Los Angeles Contract #02009 provided $137,500 towards their Off-Road Heavy-Duty Equipment Program, re-powering one Caterpillar 657E dual engine scrape and purchasing on CNG street sweeper.
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 a three-part modification request from the County Sanitation Districts of Los Angeles, Contract #01021, which was awarded $1,703,000 to purchase 41 LNG transfer trucks, install an LNG station, and re-power eight off-road vehicles. The MSRC denied the contractor’s request to change the transfer trucks from LNG to diesel-fueled, but granted a 90-day term extension during which time the remainder of their request would be further explored.
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.
- Approved February 26, 2004 Minutes
- Contract Administrator Report
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