BOARD MEETING DATE: June 3, 2005
AGENDA NO. 34

Mobile Source Air Pollution Reduction Review Committee

SYNOPSIS:

Below is a summary of key issues addressed at the MSRC’s
May 26, 2005 meeting. Neither Supervisor Antonovich, the AQMD’s representative on the MSRC, nor Henry Hogo, the AQMD liaison to the MSRC, could be present at this meeting. The MSRC’s next meeting is June 23, 2005, at 1:30 p.m. in Room CC8.

RECOMMENDED ACTION:

Receive and file.

Jeri G. Voge
Sr. Deputy District Counsel/
Legal Liaison to the MSRC

Minutes

Minutes from the March 24, 2005 meeting were unanimously approved. They are attached for your information (Attachment 1).

Election of Chair and Vice-Chair

The MSRC's Operational Policies and Procedures call for the annual election every May of the chair and vice chair of the MSRC and its Technical Advisory Committee (MSRC-TAC). At its May 26, 2005 meeting, the MSRC unanimously re-elected its current chair Gwenn Norton-Perry, who is a Council Member of Chino Hills and represents the San Bernardino Associated Governments on the MSRC. This will be her second term as chair. The MSRC also unanimously re-elected Ron Roberts as its vice-chair for another one-year term. Mr. Roberts is a Council Member of Temecula and represents the Southern California Association of Governments on the MSRC. This will also be his second term.

At the MSRC-TAC’s May 12, 2005 meeting, they unanimously voted to re-elect their current chair Gretchen Hardison for another one-year term. Ms. Hardison represents the City of Los Angeles. The MSRC-TAC also re-elected its current vice-chair, Vince Mastrosimone, who represents the cities of Los Angeles County. This will be their third term.

Award Modifications to FY 2004-05 Diesel Exhaust After-Treatment Program

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 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 more than $6 million in turnback funds and unanimously approved award modifications totaling $3.9 million to fully fund seven viable projects on the backup list. The MSRC also acted to set aside $600,000 for a pending request for additional school bus incentives and direction for remaining turnback funds to be rolled over into the next work program cycle. The AQMD Board will consider the award modifications at its June 3, 2005 meeting as part of the FY 2004-05 Work Program.

Terminate Negotiations and Repayment Decision

The MSRC considered recommendations from its Technical Advisory Committee to terminate negotiations with three contractors and a request for an exception or relief from an MSRC requirement stipulating that infrastructure funding must be tied to minimum vehicle purchases. The four issues/actions taken are as follows:

1. The City of Tustin was previously awarded $40,000 to purchase two heavy-duty LGP vehicles, which according to the solicitation must have engines CARB certified to a low-emission or optional NOx standard. Since the engines originally proposed did not become certified, and the City did not offer alternative engines for consideration, the MSRC unanimously approved the recommendation to terminate contract negotiations. The funds will be returned to the Discretionary Fund for reallocation in the next work program.
    
2. Clean Energy was previously awarded $250,000 to install a CNG station in the Mid-Wilshire region of Los Angeles, contingent upon executing an MOU with the prospective site owner (the Los Angeles Department of Water & Power in this instance) by April 29, 2005. Since it appears an MOU may not be entered into within a reasonable timeframe, if ever, the MSRC unanimously approved the recommendation to terminate contract negotiations. The funds will be returned to the Discretionary Fund for reallocation in the next work program. Clean Energy indicated it would reapply in the next work program cycle.
    
3. Clean Energy was previously awarded $250,000 to install a CNG station in Mission Viejo, contingent upon public access to the fueling station. When the proposed site owner decided not to provide public access, Clean Energy consulted with the Capistrano Unified School District about building a station at their bus yards, which are 5 and 12 miles away from the original proposed site. The MSRC expressed concern about approving the site change since the different location could have affected ranking during the evaluation phase, but when it was noted no other proposals were submitted for sites in South Orange County, they unanimously approved an additional 45 days for Clean Energy to negotiate with the school district. The MSRC will consider this modification again at its July 28, 2005 meeting.
    
4. Taormina Industries was previously awarded $154,385 towards the purchase of 10 dual-fuel LNG trucks and construction of an L/CNG station, with the infrastructure award tied to the vehicle purchases. Taormina purchased three vehicles then subsequently determined that the duty cycle for the remaining seven vehicles would be insufficient for their needs. They again requested an exception to the requirement that all ten vehicles be purchased in order to keep the $100,000 provided for the infrastructure, $90,000 of which has been paid to Taormina, asserting that there are no other comparable vehicle engine configurations available to meet their needs. The AQMD advises there are engines available to meet the vehicles in the original proposal. Notwithstanding, it was Taormina’s business decision to move the service areas for the proposed vehicles from that stated in the proposal, thus affecting their operational needs after the award was made. The MSRC unanimously denied the request for exception and mandated that Taormina return the funds paid toward the infrastructure portion of the contract.

Adoption of FY 2005-06 Administrative Budget and Approval of Miscellaneous Expenditures for FY 2003-04 Fourth Quarter

Every May the MSRC considers an Administrative Budget for the next fiscal year, as a projection of the 5% administrative cap provided by the law. The MSRC unanimously approved the FY 2005-06 Administrative Budget, with the caveat that the AQMD was currently in labor negotiations, with projected expenditures in the amount of $618,615, leaving a margin of $71,385. The Budget includes three sections: 1) staff administrative support; 2) contract administration and program support, which includes three full-time positions that exclusively support the MSRC; and 3) miscellaneous costs estimated at $41,440 for expenditures such as printing and mailing costs, office supplies, and advertising. The Administrative Budget also includes one-quarter of the Technical Advisor’s contract in an amount not to exceed $38,060 and $2,500 for travel. The MSRC will revisit the Administrative Budget in the event that labor negotiations result in staff rate changes.

The MSRC approved the reimbursement of miscellaneous administrative and mailing costs for FY 2003-04 in the amount of $37,000, in addition to $2,500 for travel and $5,000 for equipment purchases. These expenses are included within the 5% administrative cap mandated by the AB 2766 legislation and are adopted as part of the annual Administrative Budget, mentioned above. AQMD staff reported that actual FY 2003-04 fourth quarter expenditures were $7,129.84 for a total of $37,465.09 for the fiscal year. The MSRC unanimously received and filed this report. Staff plans to report on the first three quarters of FY 2004-05 at the MSRC’s next meeting.

Received and Approved Final Reports

The MSRC unanimously received and approved four final reports as follows:

1. Foothill Transit Agency Contract #AB01016, which provided $2,640,000 towards the purchase of 66 CNG transit buses;
    
2. McLaughlin Engineering & Mining Contract #MS03030, which provided $564,360 to repower six dual-engine scrapers;
    
3. City of Coachella Contract #MS03037, which provided $11,969 towards the purchase of one CNG street sweeper; and
    
4. Cattrac Construction Inc. Contract #MS03057, which provided $155,325 to repower a wheel loader, dozer and scraper.

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 website at http://www.msrc-cleanair.org.

Contract Modification Requests

The MSRC considered five contract modification requests and took unanimous action, as follows:

1. For Omnitrans Contract #AB01013, which provides $508,250 towards the purchase of 13 CNG buses and mechanic training, approval of a no-cost, nine-month contractual term extension;
    
2. For Waste Management of Corona Contract #AB02014, which provides $165,000 towards the purchase of seven LNG and three CNG refuse trucks, maintenance facility modifications and mechanic training, approval of a no-cost, two-year contractual term extension;
    
3. For County Sanitation Districts of Los Angeles County Contract #MS03029, which provides $416,500 to repower four off-road vehicles, approval of a no-cost, nine-month contractual term extension;
    
4. For Clean Energy Contract #MS03061, which provides $250,000 to install a CNG station at Ontario International Airport, approval of a no-cost, one-year contractual term extension; and
    
5. For City of Glendale Contract #AB01010, which provides $200,000 to construct a CNG station, approval of a no-cost, one-year contractual term extension.

Contract Administrator Report

The MSRC's AB 2766 Contract Administrator provides a written status report on all open contracts from FY 1999-00 through the present. This Contract Administrator Report is attached for your information (Attachment 2).

Attachments

1-Approved March 24, 2005 MSRC Minutes
2-Contract Administrator Report

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