BOARD MEETING DATE: September 3, 2004
AGENDA NO. 4

Authorize Final Payments on Completed Contracts with Closed Accounts

SYNOPSIS:

The AQMD’s Clean Fuels Program sponsors the development and demonstration of clean-fuel vehicles and technologies. At any given time, Technology Advancement has about 85 contracts active. At times, the final reports and final invoices are delayed for various reasons, and these contracts expire. As determined by the Chief Financial Officer, such contracts now require Governing Board approval of payment for their completed work.

COMMITTEE:

Technology, August 27, 2004, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Executive Officer to make final payment from the Clean Fuels Fund and the Advanced Technology, Outreach and Education Fund to the following contractors:
 

a. Contract No. 97106	City of Compton	$28,000
b. Contract No. 98111	Thermo Power Corp.	$11,400
c. Contract No. 98120	Gas Research Institute	$100,000
d. Contract No. 00170	Southern California Gas Co.	$55,800

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMD’s Clean Fuels Program sponsors the development and demonstration of clean-fuel vehicles and technologies. At any given time, Technology Advancement has about 85 contracts active. Over a period of 16 years, Technology Advancement has administered over 700 technology contracts. At times, the final reports and/or final invoices are delayed for various reasons. On rare occasions, these contracts expire and the unpaid contract balances are administratively closed in the Finance and Accounting System. Four such contracts have now been fully completed with final reports received and accepted by the Technology Advancement Office. The contracts were closed in the Finance and Accounting System as part of an effort by the Finance staff to reduce the number of expired contracts that needed to be carried over at the end of the fiscal year. The work has been satisfactorily performed and the AQMD has a contractual obligation to pay the final payments. However, the Chief Financial Officer has determined that Board approval is required because there is no longer any encumbrance against which payment can be made even though sufficient funds are available in the Clean Fuels Fund Balance and the Advanced Technology Outreach and Education Fund.

Proposal

Staff recommends that final payment be made for the following contracts:
 

a. Contract No. 97106	City of Compton	Contract Amount:	$100,000
"Demonstrate Photovoltaic-Integrated Roofs in Residential Development" Install photovoltaic-integrated roofs on 12 new single-family homes in Compton.
Completed.		Final Payment	$ 28,000
b. Contract No. 98111	Thermo Power Corp.	Contract Amount:	$250,000
"Development and Demonstration of Advanced Hydrogen Fuel Storage System Using Chemical Hydride Slurry System" Develop an advanced hydrogen fuel storage system for a 50kW fuel cell vehicle (FCV) application using a chemical hydride slurry system.
Completed.		Final Payment	$ 11,400
c. Contract No. 98120	Gas Research Institute	Contract Amount:	$325,000
"Develop Enhanced Efficiency Natural Gas Engines" Under separate subcontracts, develop enhanced, high-efficiency natural gas engines for Cummins Engine Company, John Deere Power Systems, and Mack Truck Company.
Completed.		Final Payment	$100,000
d. Contract No. 00170	Southern California Gas Co.	Contract Amount:	$105,800
"Demonstrate an Increased Horsepower Natural-Gas Engine in On-Road Delivery Trucks" Demonstrate Cummins natural-gas engine with higher horsepower and torque with Viking Freight in delivery truck applications.
Completed.		Final Payment	$ 55,800

In addition, staff will reinstate the monthly contracts database query to identify open contracts with expiration dates approaching within 16-weeks. Finance will inform the project officer requesting guidance on whether the contract should be left alone, extended at no cost, cancelled, or augmented. All of the options, except the first, require additional Deputy Executive Officer and Executive Officer approvals with established Board procedures.

The memorandum from the Contracts Unit will include the contract number, prime contractor, contract start-date, contract end-date, and the contract amount.

Resource Impacts

Funds for these projects were originally approved by the Governing Board from the Clean Fuels Fund and the Advanced Technology, Outreach and Education Fund, however, the contracts were administratively closed by the Finance staff. The total cost for the final invoices for the subject contracts is $195,200. Sufficient funds are available in both the Clean Fuels Fund, which is established as special revenue from the state-mandated Clean Fuels Program, and the Advanced Technology, Outreach and Education Fund. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

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