BOARD MEETING DATE: November 4, 2005
AGENDA NO. 16

Approve Multiple Contract Awards as Part of MSRC's FY 2005-06 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 developed a two-phase Conceptual FY 2005-06 Work Program, which was approved by the AQMD Board on September 9, 2005. The first phase includes $12.875 million in solicitations and projects, including $1.25 million allocated for the Diesel Exhaust Aftertreatment Retrofit Program. On October 27, 2005, the MSRC met to consider several applications received to date under this program solicitation. At this time, the MSRC requests approval of multiple contract awards under this Program as part of the FY 2005-06 Work Program. Additional awards are anticipated in future. The MSRC also requests authority to adjust contracts up to five percent and authority for the Board Chairman to execute agreements.

COMMITTEE:

Mobile Source Air Pollution Reduction Review, October 27, 2005, Approved

RECOMMENDED ACTION:

1. Approve the award of four contracts totaling $584,000 under the Diesel Exhaust Aftertreatment Retrofit Program, as part of FY 2005-06 AB 2766 Discretionary Fund Work Program, as described in this letter and as follows:
   1. A contract with County of Los Angeles, Department of Public Works, in an amount not to exceed $193,500 for up to 43 retrofit devices;
   2. A contract with County of Los Angeles, Sheriff’s Department, in an amount not to exceed $98,000 for up to 50 retrofit devices;
   3. A contract with County Sanitation District of Los Angeles in an amount not to exceed $108,000 for up 24 retrofit devices; and
   4. A contract with City of Los Angeles in an amount not to exceed $184,500 for up to 41 retrofit devices.
2. Authorize MSRC the authority to adjust contract awards up to five percent, as necessary; and
3. Authorize the Chairman of the Board to execute multiple contracts as part of FY 2005-06 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 developed a two-phase Conceptual FY 2005-06 Work Program, the first phase of which was approved by the AQMD Board on September 9, 2005. The first phase includes $12.875 million in solicitations and projects, including $1.25 million for a Diesel Exhaust Aftertreatment Retrofit Program. This Program Announcement (PA), #2006-05, provides $1.25 million towards the purchase of CARB-certified exhaust aftertreatment devices to retrofit existing diesel vehicles. The PA provides a 50 percent match toward the cost of purchasing and installing CARB-verified particulate filters up to $4,500 per unit for devices reducing PM only and up to $10,000 per unit for devices reducing both NOx and PM. No additional funding is provided to offset low sulfur fuel costs for this funding cycle. Funding is to be awarded on a first-come, first-serve basis with all proposals received the first day to be considered received concurrently. If more applications are received the first day than available funding, eligible applications would be funded on a prorated basis. The application period commenced October 4, 2005 and ends January 31, 2006. A cap of $200,000 per entity was established to ensure broad distribution throughout the South Coast Air District. Four applications were considered at the MSRC’s October 27, 2005 meeting; details are provided in the Proposals section.

Outreach

The funding solicitation described above, in accordance with the AQMD's consulting and contracting policies, was advertised in a public notice on two different days in 27 newspapers and publications, including several targeting minorities.

The funding solicitation was placed on the MSRC's website at http://www.msrc-cleanair.org and placed on the AQMD’s website at http://www.aqmd.gov. Information was also available on the AQMD’s bidder’s 24-hour telephone message line (909) 396-2724. A press release on funding opportunities available in the FY 2005-06 Work Program was issued and placed on the MSRC’s website.

In addition to the AQMD's standard practices, a postcard announcing the FY 2005-06 funding opportunities was mailed to nearly 1,800 interested parties on the MSRC's mailing list, as well as to the Black and Latino Legislative Caucuses, Ethnic Community Advisory Group, City Managers, Chambers of Commerce, and business associations. The postcard was also mailed to local legislators, mayors, city council members and city managers in the four counties, and AB 2766 Subvention Fund city administrators.

Bidders’ Conference

No bidders’ conference was conducted because the program was similar to last year’s program within the FY 2004-05 Work Program.

Proposal Evaluation and Panel Composition

Proposals received were evaluated by members of the MSRC-TAC, a diverse group of individuals appointed by participating members as prescribed in the Health & Safety Code.

Proposals

On October 27, 2005, in a 6-0 vote, the MSRC considered recommendations from its MSRC-TAC and unanimously approved four contract awards under the Diesel Exhaust Aftertreatment Retrofit Program. Awards are as follows:

1. A contract with County of Los Angeles, Department of Public Works, in an amount not to exceed $193,500 for up to 43 retrofit devices;
2. A contract with County of Los Angeles, Sheriff’s Department, in an amount not to exceed $98,000 for up to 50 retrofit devices;
3. A contract with County Sanitation District of Los Angeles in an amount not to exceed $108,000 for up 24 retrofit devices; and
4. A contract with City of Los Angeles in an amount not to exceed $184,500 for up to 41 retrofit devices.

All qualifying proposals received to date are recommended for funding. This Program Announcement remains open until January 31, 2006, or until such time that all funds have been expended. Of the $1.25 million allocated to this Program, $666,000 remains unallocated if the above awards are approved. Thus, future awards are anticipated, and will be subject to MSRC and AQMD Board approval as part of the FY 2005-06 Work Program.

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 respectfully requests the AQMD Board’s approval of the above contract awards as part of the FY 2005-06 AB 2766 Discretionary Fund Work Program. The MSRC also 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 described in this letter as part of FY 2005-06 Work Program.

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(s)

None

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