BOARD MEETING DATE: July 8, 2005
AGENDA NO. 10

Approve Award Modification for County of Orange as Part of FY 2003-04 AB 2766 Discretionary Fund Work Programs; Grant MSRC Authority to Adjust Project Costs Up to Five Percent; and Authorize Board Chairman to Execute Modified Agreement

SYNOPSIS:

The MSRC’s FY 2003-04 Work Program included $4.3 million in awards under the Local Government Match Program, which provided up to $10,000 for medium-duty alternative fuel vehicles, up to $20,000 for heavy-duty alternative fuel vehicles, and a 50 percent match for alternative fuel infrastructure installations. As part of the FY 2003-04 Work Program, on June 4, 2004, the County of Orange was awarded $440,000 for CNG infrastructure, one heavy-duty CNG vehicle, and seven medium-duty CNG vehicles. At its June 23, 2005 meeting, the MSRC approved an award modification to the County of Orange to substitute four heavy-duty natural gas vehicles instead of the original seven medium-duty CNG vans. The $440,000 award amount remains unchanged as well as the other portions of the original award. This contract has not yet been executed. The MSRC requests Board approval of the award modification as part of the FY 2003-04 Work Program. The MSRC also requests authority to adjust the contract up to five percent and for the Board Chairman to execute the modified agreement. (Review: Mobile Source Air Pollution Reduction Review Committee, June 23, 2005)

COMMITTEE:

Mobile Source Air Pollution Reduction Review Committee,
June 23, 2005, Unanimously Approved

RECOMMENDED ACTIONS:

1. Approve award modification/revised contract (#ML04038) for County of Orange in an amount not to exceed $440,000, with $350,000 of this total designated for installation of CNG infrastructure and $90,000 designated for the purchase of up to five heavy-duty natural gas vehicles (dump truck, mobile refueling truck, water truck, street sweeper and spray rig) as part of the FY 2003-04 AB 2766 Discretionary Fund Work Program.
    
2. Authorize MSRC the authority to adjust contract awards up to five percent, as deemed necessary; and
    
3. Authorize the Chairman of the Board to execute the award modification/revised contract as part of FY 2003-04 AB 2766 Discretionary Fund Work Program, as described above and within this letter.

Gwenn Norton-Perry
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.

The MSRC’s FY 2003-04 Work Program included its successful and popular Local Government Match Program. The FY 2003-04 Program provided up to $10,000 for medium-duty natural gas vehicles, $20,000 for heavy-duty alternative fuel vehicles, and a 50 percent match for alternative fuel infrastructure. On June 4, 2004, the AQMD Governing Board approved $4.3 million in awards under the Local Government Match Program as part of the MSRC’s FY 2003-04 Work Program. Included in these awards was $440,000 to the County of Orange, providing $350,000 for alternative fuel infrastructure and $90,000 for one heavy-duty CNG truck and seven medium-duty CNG vehicles (passenger vans). Subsequently, the County of Orange requested a modification to this award to exchange the seven medium-duty CNG passenger vans for four heavy-duty natural gas vehicles. The contract with the County of Orange has not yet been executed. At its June 23, 2005 meeting, the MSRC considered this request.

Proposal

On June 23, 2005, the MSRC unanimously approved the award modification for the County of Orange to exchange seven medium-duty CNG vehicles for four heavy-duty natural gas vehicles. The $440,000 award amount remains unchanged, but now provides for $350,000 for alternative fuel infrastructure and $90,000 for five natural gas heavy-duty vehicles. The heavy-duty vehicles include one dump truck (the original heavy-duty vehicle awarded), one mobile refueling truck, one water truck, one street sweeper, and one spray rig. The County recognizes that one of these vehicles will receive only $10,000 in co-funding while the other four will receive the full $20,000 in co-funding as provided by the original Local Government Match Program. The four heavy-duty natural gas vehicles which are substituted for the seven medium-duty CNG passenger vans will achieve equivalent if not greater emissions reductions.

The MSRC respectfully requests the AQMD Board’s approval of the award modification for County of Orange as part of the FY 2003-04 Work Program. 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 to execute the modified agreement, as described above and within this letter.

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.

Attachment

None

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