BOARD MEETING DATE: October 1, 2004
AGENDA NO. 11

Approve Replacement Contracts, Sole-Source Awards and Special Payment as Part of MSRC’s FYs 1998-99, 2002-03, 2003-04 and 2004-05 AB 2766 Discretionary Fund Work Programs, Grant MSRC Authority to Adjust Project Costs; and Authorize Board Chairman to Execute Agreements

SYNOPSIS:

On August 6, 2004, the Board approved FY 2004-05 AB 2766 Discretionary Fund Conceptual Work Program, including commitments of $1 million for CNG School Bus Incentives Program and $1.75 million for On-Road Diesel Vehicle Replacement Program. On September 23, 2004, the MSRC approved sole-source awards to implement these programs, awarded more funds to a FY 2003-04 school bus contractor, and exercised the FY 2004-05 option with its Outreach Coordinator. Concurrently, the MSRC unanimously approved three replacement contracts from past work programs, as follows: 1) $17,925 to City of Grand Terrace; 2) $62,396 to County of Riverside; and 3) 42,339 to City of Palm Desert. The MSRC also addressed open elements from its FY 2003-04 Work Program, unanimously approving two sole-source awards and declining to issue awards for another program. The MSRC requests the AQMD Board’s approval of these awards as part of past and present Work Programs as well as the authority to adjust contracts up to five percent and for the Board Chairman to execute agreements. (Review: Mobile Source Air Pollution Reduction Review Committee, September 23, 2004)

COMMITTEE:

Mobile Source Air Pollution Reduction Review, September 23, 2004, Unanimously Approved

RECOMMENDED ACTION:

1. Authorize Final Payment for City of Lakewood Contract #AB99070 from Fund 23 in the amount of $3,954.50 as Part of FY 1998-99 AB 2766 Discretionary Fund Work Program;
    
2. Approve New/Replacement Contracts as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program, as described in this letter and as follows:

2.1	A contract with City of Grand Terrace in an amount not to exceed $17,925 to complete installation of a time-fill CNG station;
2.2	A contract with County of Riverside in an amount not to exceed $62,396 to pave dirt roads;
2.3	A contract with City of Palm Desert in an amount not to exceed $42,339 to implement soil stabilization and install wind fencing;

3. Approve augmentation of an award in an amount not to exceed $240,000 to A-Z Bus Sales, Inc. under Contract #MS03001 for continued implementation of MSRC’s FY 2003-04 CNG School Bus Buydown Program ($200,000 from an allocation set aside in the FY 2003-04 AB 2766 Discretionary Fund Work Program and $40,000 from turnback funds);
    
4. Approve two sole-source awards for implementation of enhanced rideshare database systems as part of the FY 2003-04 AB 2766 Discretionary Fund Work Program, as described in this letter and as follows:

4.1	A contract with Riverside County Transportation Commission in an amount not to exceed $225,000; and
4.2	A contract with Los Angeles County Metropolitan Transportation Authority in an amount not to exceed $120,000;

5. Approve $1 million as part of the FY 2004-05 AB 2766 Discretionary Fund Work Program to provide incentives for CNG school buses, including issuing sole-source contracts to A-Z Bus Sales, California Bus Sales and BusWest in the amount of $240,000 each, while retaining the remaining $280,000 to augment the qualified vendor contracts based on sales performance, subject to review and approval of MSRC;
    
6. Exercise the first-year option clause to extend the contract (or issue a new contract in the event the amendment is not executed before the current contract term expires, including $6,994 in unexpended funds from the current contract) with The Better World Group for FY 2004-05 outreach coordinator services in an amount not to exceed $45,000 as part of the FY 2004-05 AB 2766 Discretionary Fund Work Program, as described in this letter;
    
7. Authorize MSRC the authority to adjust contract awards up to five percent, as necessary; and
    
8. Authorize the Chairman of the Board to execute multiple contracts and/or modifications as part of FYs 2002-03, 2003-04 and 2004-05 AB 2766 Discretionary Fund Work Programs, as described above and within this letter.

Gwenn Norton-Perry
Vice-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.

1. FY 2004-05 Work Program
On August 6, 2004, the Board approved the FY 2004-05 AB 2766 Discretionary Fund Conceptual Work Program, including commitments of $1 million for a CNG School Bus Incentives Program and $1.75 million for an On-Road Diesel Vehicle Replacement Program, subject to MSRC and AQMD Board approval at a later date. The latter program was supposed to be addressed by the MSRC at its September 23, 2004 meeting; however, consideration of the sole-source contract to implement this program has been postponed until next month to allow additional time for the MSRC’s Technical Advisory Committee to research various complexities of the program. Recommendations will be presented to the AQMD Board as part of the FY 2004-05 Work Program after the MSRC makes its final decisions. The MSRC did consider its commitment of $1 million for a CNG School Bus Incentives Program at its September 23, 2004 meeting. Further details are described below in the Proposals section.

In May 2003, following an RFP process, the Board approved the award of $45,000 to The Better World Group to provide programmatic outreach services for a one-year period, as part of the FY 2002-03 Work Program, with three additional one-year options to be exercised at the discretion of the MSRC while additional future funding would be subject to MSRC and AQMD Board approval. The contract was executed in October 2003 and outreach coordinator services were essentially provided in the FY 2003-04 timeframe. The current contract expires October 3, 2004. At its September 23, 2004 meeting the MSRC considered execution of the first-year option and adding additional funds to perform those services as part of the FY 2004-05 Work Program. Further details are described below in the Proposals section.

2. FY 2003-04 Work Program
In December 2003 the AQMD Board approved modifications of three school bus vendor contracts with A-Z Bus Sales, California Bus Sales and BusWest to provide incentives for CNG school buses as part of the FY 2003-04 Work Program. Of the $2 million awarded under this Work Program, each vendor was awarded an initial $600,000, with the remaining $200,000 set aside to augment the contracts based on sales performance, subject to review and approval of the MSRC. The contract terms were extended through December 31, 2004. Although A-Z Bus Sales already obligated the entire $600,000 to provide incentives to school districts, Lake Elsinore School District recently applied to A-Z Bus Sales for the buydown of four 84-passenger CNG school buses. In order to provide the $60,000 incentive per bus, the vendor has requested additional funds totaling $240,000 from the MSRC. The MSRC considered this request at its September 23, 2004 meeting. Further details are described below in the Proposals section.

In November 2003 the AQMD Board approved the FY 2003-04 AB 2766 Discretionary Fund Conceptual Work Program, including a commitment of $500,000 for regional rideshare database enhancements, which would entail two sole-source contracts, subject to MSRC and AQMD Board approval at a later date, and release of a $500,000 Program Announcement, #PA2004-06, to implement a Diesel Exhaust After-Treatment Retrofit Program. The details of the work to carry out the rideshare database enhancements and the specifics of the two sole-source contracts have finally been resolved and the MSRC considered the details at its September 23, 2004 meeting. Concurrently, the MSRC considered the applications received for and recommendations from its Technical Advisory Committee on the FY 2003-04 Diesel Exhaust After-Treatment Retrofit Program.

3. FY 2002-03 Work Program
In May 2003, the AQMD Board approved a contract with the City of Grand Terrace in the amount of $57,925 for a CNG time-fill refueling station and four medium-duty CNG vehicles under the Local Government Match Program as part of the FY 2002-03 Work Program. In June 2004, the City requested elimination of the four vehicles and a one-year contract term extension to complete construction of the refueling station. The MSRC approved the modification along with a $40,000 reduction in the contract value at its July 22, 2004 meeting. Subsequently, staff discovered the contract actually ended in May 2004; thus, the modification could not be executed. The MSRC considered a new/replacement contract for the City of Grand Terrace at its September 23, 2004 meeting. Further details are described below in the Proposals section.

In February 2003, the AQMD Board approved ten contracts under the Coachella Valley PM10 Reduction Program as part of the FY 2002-03 Work Program. Of these ten contracts, one was to the County of Riverside in the amount of $62,396 for in-fill paving along two roadway sections within the County, and a second was to the City of Palm Desert in the amount of $42,339 to implement soil stabilization and install vegetation and wind fencing. The MSRC approved extensions of both contract terms in June and July 2004, respectively, but the contracts expired before the extensions could be executed. No payments had been made under either contract at the time they expired. The MSRC considered new/replacement contracts for both local governments at its September 23, 2004 meeting. Further details are described below in the Proposals section.

4. FY 1998-99 Work Program
As part of the FY 1998-99 Work Program, the MSRC installed numerous electric vehicle (EV) charging stations in parking lots at shopping centers and business venues. One $8,655 award was granted to the City of Lakewood to install two EV charging stations at a Wal-Mart. Although the work was performed, no payment was made to the City. An invoice for a portion of the work was received in January 2001, shortly after the end of the contract term. Staff held the invoice, pending a revised invoice for full billing and documentation. In April 2001 the City was notified that January 31, 2002, would be the final date to submit reimbursement claims and that the EV contracts would be closed. The City did not submit a revised invoice until April 2004. To address the City’s request for payment, the MSRC considered the issue at its September 23, 2004 meeting. Further details are described below in the Proposals section.

Proposals

1. FY 2004-05 Work Program
As mentioned in the Background section, the MSRC allocated $1 million for a CNG School Bus Incentives Program as part of the FY 2004-05 Work Program. For several years the MSRC has offered incentives towards the purchase of CNG school buses; these incentives have been offered through local vendors who qualified under an RFQ process. Incentives are tiered based on the type of qualifying bus; 1) $60,000 for full-size Type D buses; $50,000 for mid-size buses; and 3) $25,000 for Type A cutaway school buses. For the last two years the MSRC has contracted with three local school bus vendors--A-Z Bus Sales, California Bus Sales, and BusWest. On September 23, 2004, the MSRC unanimously awarded sole-source contracts to these three vendors. Of the $1 million allocation, each vendor was initially awarded $240,000, while the remaining $280,000 was retained to augment the vendor contracts based on sales performance, subject to review and approval by the MSRC. Justifications for these sole-source contracts are detailed below. The MSRC seeks Board approval of these sole-source contracts as part of the FY 2004-05 Work Program.

Additionally, the MSRC unanimously approved exercising the first-year option under its existing contract with The Better World Group to provide programmatic outreach services for another year. To perform ongoing services and complete task orders as needed, the MSRC awarded an additional $45,000 as part of the FY 2004-05 Work Program. Ongoing tasks will include outreach and promotion of MSRC achievements, development and dissemination of MSRC materials in English and foreign languages, participation in events and meetings, and strategic market direction to promote MSRC programs. Task orders may include conducting a media event, website enhancements, and development of outreach materials and op-ed pieces. If the option is not exercised before the current end date of the contract, the MSRC approved issuing a new contract with The Better World Group, including $6,994 in unexpended funds from the current contract plus the additional $45,000, for a total contract value of $51,994, for FY 2004-05 services. The MSRC seeks Board approval of these additional dollars to exercise the option (or issue a new contract) as part of the FY 2004-05 Work Program.

2. FY 2003-04 Work Program
As stated in the Background section, the FY 2003-04 school bus incentives were issued through three vendors, each of which received an initial award of $600,000, with the remaining $200,000 set aside to augment the contracts based on sales performance, subject to review and approval of the MSRC. Only recently was there a request from A-Z Bus Sales for additional funds for the FY 2003-04 program. At its September 23, 2004 meeting, the MSRC unanimously approved augmenting A-Z Bus Sales’ contract an additional $240,000 ($200,000 from the allocation set aside in FY 2003-04 and $40,000 from turnback funds) to incentivize four 84-passenger CNG school buses for the Lake Elsinore School District, providing a $60,000 incentive per bus. The MSRC seeks Board approval of this contract modification as part of the FY 2003-04 Work Program.

Additionally, the MSRC unanimously approved its Technical Advisory Committee’s recommendation to implement the Regional Rideshare Database Enhancements Program through two sole-source contracts. This will be achieved by the creation of a Regional Rideshare/Transit Itinerary communications link. This link will allow transit itineraries to be published on RideGuides created by the RidePro system, as well as allowing transit itineraries to be accessed through the Ridematch.info website. Although the MSRC originally allocated $500,000 for this effort, the final sole-source awards totaled $345,000, split between the Riverside County Transportation Commission (not to exceed $225,000) and the Los Angeles County Metropolitan Transportation Authority (not to exceed $120,000). The MSRC seeks Board approval of these sole-source contracts as part of the FY 2003-04 Work Program. Justifications for these sole-source contracts are detailed below.

As mentioned in the Background section, the MSRC released a Diesel Exhaust After-Treatment Retrofit Program Announcement, #PA2004-06, in November 2003. The open application period for this PA was January 13, 2004 through April 9, 2004, and the $500,000 funding for after-treatment retrofit devices was to be awarded on a first-come, first-serve basis. However, shortly after the release of the PA, CARB de-verified several of the eligible traps because of warranty issues with the manufacturers. This disrupted the MSRC’s application period and potentially affected some of the applicants who applied for funding for the de-verified traps. Although the issues have since been resolved, in light of the disruption and potential inequities to applicants, the MSRC unanimously agreed not to fund any of the ten applications received under this solicitation. However, due to the demand last year, the $500,000 was re-allocated to the MSRC’s current FY 2004-05 Diesel Exhaust After-Treatment Retrofit Program. The open application period for this PA, #PA2005-02, is September 24 through October 26, 2004, and those that applied last year have been notified of the new opportunity.

3. FY 2002-03 Work Program
Three contract issues with the City of Grand Terrace, County of Riverside and City of Palm Desert were also addressed by the MSRC on September 23, 2004, as part of the FY 2002-03 Work Program. First, the MSRC unanimously approved a new/replacement contract with the City of Grand Terrace in the amount of $17,925 for the construction of a CNG time-fill refueling station. Because the contract lapsed before completion of the project, the MSRC approved a new contract for the infrastructure, removing the vehicle purchases and associated funding at the request of the contractor. Second, the MSRC unanimously approved a new/replacement contract with the County of Riverside in the amount of $62,396 for in-fill paving along two roadway sections within Riverside. Again, the contract lapsed before completion of the project. Because the work is incomplete and no billing has been received, the MSRC approved the new contract in the original amount of $62,396. Last, the MSRC unanimously approved a new/replacement contract with the City of Palm Desert in the amount of $42,339 to implement soil stabilization and install vegetation and wind fencing. This contract also had lapsed before completion and billing of the project, thus the MSRC approved a new contract in the original amount of $42,339. In order to fulfill the MSRC’s intention as indicated by their actions, which were also subsequently approved by the AQMD Board, the MSRC currently seeks Board approval of these new/replacement contracts as part of the FY 2003-04 Work Program.

4. FY 1998-99 Work Program
As mentioned in the Background section, the MSRC granted an award in the amount of $8,655 to the City of Lakewood to install two EV charging stations at a Wal-Mart. The MSRC considered two requests for payment by the City, even though the contract had closed three years ago. The MSRC unanimously approved payment of the original invoice in the amount of $3,954.50 for work performed during the contract term and which had been billed shortly after the contract ended. The MSRC unanimously denied payment of the late invoice, which was received in April 2004, nearly three years after the contract end date because, as explained in the Background section, the contractor had been notified that reimbursement claims must be submitted by January 31, 2002, and that EV contracts would be closed. The MSRC seeks Board approval to pay the original invoice in the amount of $3,954.50 from the MSRC’s special Fund #23, for work performed under the City of Lakewood’s Contract #AB99070.

In some cases the full amount requested in an application or 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 and/or modifications described in this letter as part of FYs 2002-03, 2003-04 and FY 2004-05 Work Programs.

Sole-Source Justifications

1. FY 2004-05 Work Program
(CNG School Bus Incentives)
As an element of their FY 2004-05 Work Program, the MSRC allocated $1 million towards CNG school bus incentives. Incentives are tiered based on the type of qualifying bus: 1) $60,000 for full-size Type D buses; $50,000 for mid-size buses; and 3) $25,000 for Type A cutaway school buses. The MSRC recommends that these incentives be provided through sole-source contracts with A-Z Bus Sales, California Bus Sales, and BusWest.

SOLE-SOURCE JUSTIFICATION: While the MSRC and AQMD strive to retain technical services on a competitive basis when feasible, the AQMD Procurement Policy and Procedure recognizes that, at times, the unique experience of one vendor makes the pursuit of a competitive procurement futile. Such is the case in this instance since the three local school bus vendors mentioned above are the only ones in this region that offer the types of buses eligible under the MSRC’s program. Additionally, the MSRC has contracted with these three vendors for the last two years, initially qualifying them through an RFQ process. This request for three sole-source awards is made under provision VIII.B.2.c.(1): The desired services are available from only the sole source due to the unique experience and capabilities of the proposed contractor or contractor team; and (3) The contractor has ownership of key assets required for project performance.

PERIOD OF PERFORMANCE: The period of performance under the sole-source contracts will be January 1, 2005 through December 31, 2005, subject to extension by the MSRC as deemed necessary. The current contracts with these vendors expire December 31, 2004.

2. FY 2003-04 Work Program
(Implementation of Enhanced Rideshare Database Systems)
As an element of their FY 2003-04 Work Program, the MSRC allocated $500,000 funding for regional rideshare database enhancements, which would best be achieved through the creation of a Regional Rideshare/Transit Itinerary communications link. The MSRC recommends that creation of the Rideshare/Transit link be procured through sole-source contracts with the Riverside County Transportation Commission (RCTC) and the Los Angeles County Metropolitan Transportation Authority (MTA).

SOLE SOURCE JUSTIFICATION: The RidePro system, administered by RCTC, currently serves as the ride matching system for the region. RidePro information is typically presented to the commuter via a "RideGuide," but can also be accessed via the Ridematch.info web site (also operated by RCTC). MTA recently completed development of the TripMaster system which serves as the transit trip planning system for the region, and MTA hosts the Regional Transit Itinerary database. Integrating RidePro and TripMaster via a real-time communications link will provide greater opportunities for communicating commute alternatives to travelers in the region. When travelers choose to rideshare or take transit, vehicle emissions are reduced. Tasks involved in the establishment of the link include: designing and conducting a series of tests to judge system capacity requirements, reformatting RideGuides to accommodate textual transit route/frequency lists, and augmenting Ridematch.info to do transit itineraries.

While the MSRC and AQMD strive to retain technical services on a competitive basis when feasible, the AQMD Procurement Policy and Procedure recognizes that, at times, the unique experience of one vendor makes the pursuit of a competitive procurement futile. Such is the case in this instance. This request for two sole-source awards is made under provision VIII.B.2.c.(1): The desired services are available from only the sole source due to the unique experience and capabilities of the proposed contractor or contractor team; and (3) The contractor has ownership of key assets required for project performance.

PERIOD OF PERFORMANCE: The period of performance under the sole-source contracts will not exceed one year, subject to extension by the MSRC as deemed necessary.

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.

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