BOARD MEETING DATE: June 3, 2005
AGENDA NO. 16

Approve Award Modifications and Corrections for FY 2004-05 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’s FY 2004-05 Diesel Exhaust After-Treatment Retrofit Program provided funds for the purchase/installation of retrofit devices on heavy-duty diesel vehicles, including a $150,000 cap per entity. In February 2005, the Board approved 17 awards totaling $2,150,500 to fund up to 712 devices. Several proposers requesting funding beyond the cap were placed on a backup list. On May 26, 2005, the MSRC identified $6 million in turnback funds and unanimously approved award modifications to fully fund seven viable projects on the backup list. Additionally, subsequent to the AQMD Board approving FY 2004-05 awards in January 2005, staff discovered clerical errors on some awards. This action requests AQMD Board approval of a corrected award to City of Whittier for three refuse trucks, two aerial vehicles and one sweeper. The award amount remains $130,000. The MSRC requests Board approval of the award modifications/corrections as part of the FY 2004-05 Work Program as well as authority to adjust the contracts up to five percent and for the Board Chairman to execute agreements. (Review: Mobile Source Air Pollution Reduction Review Committee, May 26, 2005)

COMMITTEE:

Mobile Source Air Pollution Reduction Review Committee,
May 26, 2005, Unanimously Approved

RECOMMENDED ACTIONS:

1. Approve award modifications for seven pending contracts using turnback funds in an amount not to exceed $3,918,750 million (in addition to the original $1,050,000 awarded to these proposers in February 2005) under the Diesel Exhaust After-Treatment Retrofit Program as part of the FY 2004-05 AB 2766 Discretionary Fund Work Program, as described in this letter and as follows:

1. A revised award/contract (#PT05055) with Los Angeles County Public Works in an amount not to exceed $212,500 for up to 25 retrofit devices;
    
2. A revised award/contract (#PT05056) with Los Angeles County Sanitation Districts in an amount not to exceed $348,000 for up to 41 retrofit devices;
    
3. A revised award/contract (#PT05057) with First Student, Inc. in an amount not to exceed $442,500 for up to 59 retrofit devices;
    
4. A revised award/contract (#PT05060) with City of Los Angeles Department of Water & Power in an amount not to exceed $2,244,000 for up to 264 retrofit devices;
    
5. A revised award/contract (#PT05063) with Orange County Transportation Authority in an amount not to exceed $603,500 for up to 96 retrofit devices;
    
6. A revised award/contract (#PT05065) with Atlantic Express in an amount not to exceed $965,250 for up to 143 retrofit devices; and
    
7. A revised award/contract (#PT05067) with Waste Management in an amount not to exceed $153,000 for up to 18 retrofit devices.

2. Approve corrected award/revised contract (#ML05021) for City of Whittier in an amount not to exceed $130,000 for up to six natural gas vehicles (three refuse trucks, two aerial vehicles and one sweeper) and one medium-duty vehicle under the Local Government Match Program as part of the FY 2004-05 AB 2766 Discretionary Fund Work Program;
    
3. Authorize MSRC the authority to adjust contract awards up to five percent, as deemed necessary; and
    
4. Authorize the Chairman of the Board to execute modified/corrected contracts as part of FY 2004-05 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.

1.     Award Modifications
The MSRC’s FY 2004-05 AB 2766 Discretionary Fund Work Program included a Diesel Exhaust After-Treatment Retrofit Program, which provided funds for the purchase and installation of retrofit devices on heavy-duty diesel vehicles, including a $150,000 cap per entity. In February 2005, the AQMD Governing Board approved 17 awards totaling $2,150,500 to fund up to 712 devices. When the MSRC initially approved these awards at its January 27, 2005 meeting, they funded every proposal either in full or up to the $150,000 cap. A backup list of proposers requesting funding beyond the cap was established in case additional monies were identified in the near future. At its last meeting, the MSRC was advised that several million dollars in turnback funds had become available and directed its staff to contact the proposers on the backup list and determine the viability of the unfunded requests. On May 26, 2005, the MSRC considered the findings and recommendations; further details are provided in the Proposals sections.

2.    Corrected Award
On January 7, 2005, under Agenda Item #10, the AQMD Governing Board approved multiple awards as part of the MSRC’s FY 2004-05 Work Program. Subsequent to the approval, staff discovered some clerical errors. Specifically, a contract was awarded to the City of Whittier under the Local Government Match Program in an amount not to exceed $130,000 for one medium-duty CNG vehicle and six CNG refuse trucks. The types of vehicles to be purchased under this contract award was incorrectly specified in the Board letter and staff is requesting the AQMD Governing Board to recognize the revised vehicle specifications. Details are provided in the Proposals section.

Evaluation Process

The MSRC's Technical Advisory Committee (MSRC-TAC) originally evaluated the proposals to determine eligibility and ranking, using the criteria within the respective solicitations, as part of the FY 2004-05 Work Program. The above award modifications and corrections did not require further evaluation or re-ranking. The backup list(s) was established when the original funding awards were made and recommendations for additional funding are in the order of ranking.

Proposals

1.    Award Modifications
On May 26, 2005, the MSRC considered various recommendations from its MSRC-TAC and recognized more than $6 million in turnback funds which could be applied to eligible backup list projects. As mentioned in the Background section, last month the MSRC directed its staff to contact the proposers on the backup list for the Diesel Exhaust After-Treatment Retrofit Program and determine the viability of the unfunded requests.

On May 26, 2005, the MSRC considered the findings and voted to award additional funds to seven proposers using turnback funds in an amount not to exceed $3,918,570 million. In some cases these funds will apply to the purchase of additional traps; in others, the additional awards will fully fund the allowable cost for each trap under the Program. The Program Announcement provided up to $8,500 per unit for CARB-verified particulate filters and up to $18,500 per unit for devices reducing both NOx and PM. Although contracts had been initiated, no contracts have yet been executed under FY 2004-05 Diesel Exhaust After-Treatment Retrofit Program. The additional funds and/or traps, with the AQMD Governing Board approval, will be added to the existing contracts pending execution. The award modifications, including the original $1,050,000 awarded in February 2005 plus the $3,918,570 in turnback funds approved by the MSRC on May 26, 2005, are as follows:

1. A revised award/contract (Pending #PT05055) with Los Angeles County Public Works in an amount not to exceed $212,500 for up to 25 retrofit devices;
    
2. A revised award/contract (Pending #PT05056) with Los Angeles County Sanitation Districts in an amount not to exceed $348,000 fro up to 41 retrofit devices;
    
3. A revised award/contract (Pending #PT05057) with First Student, Inc. in an amount not to exceed $442,500 for up to 59 retrofit devices;
    
4. A revised award/contract (Pending #PT05060) with City of Los Angeles Department of Water & Power in an amount not to exceed $2,244,000 for up to 264 retrofit devices;
    
5. A revised award/contract (Pending #PT05063) with Orange County Transportation Authority in an amount not to exceed $603,500 for up to 96 retrofit devices;
    
6. A revised award/contract (Pending #PT05065) with Atlantic Express in an amount not to exceed $965,250 for up to 143 retrofit devices; and
    
7. A revised award/contract (Pending #PT05067) with Waste Management in an amount not to exceed $153,000 for up to 18 retrofit devices.

2.    Corrected Award
As mentioned in the Background section, on January 7, 2005, the City of Whittier was awarded $130,000 for up to one medium-duty CNG vehicle and six CNG refuse trucks. The award should have specified the latter six CNG refuse trucks as three refuse trucks, two aerial vehicles, and one sweeper. The one medium-duty CNG vehicle was correct as were the recipient and award amount. The requested revision in vehicle specifications does not affect the total award of $130,000. Staff clarified this correction to the MSRC at its May 26, 2005 meeting in its Contract Administrator Report.

The MSRC respectfully requests the AQMD Board’s approval of the above award modifications and correction as part of the FY 2004-05 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 agreements, 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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