BOARD MEETING DATE: September 9, 2005
AGENDA NO. 12

Approve FY 2005-06 AB 2766 Discretionary Fund Conceptual Work Program, Approve Issuance of Three Program Announcements; Exercise FY 2005-06 Option for Programmatic Outreach; and Approve New Contract, Increased Award, and Contract Modifications as Part of FYs 2002-03 & 2004-05 through 2006-07 Work Programs

SYNOPSIS:

The MSRC has proposed a $12.875 million FY 2005-06 AB 2766 Discretionary Fund Work Program consisting of the following program elements: Alternative Fuel Infrastructure, Local Government Match, Continuation of CNG School Bus Incentives, Diesel Exhaust After-Treatment Retrofit, Efficiency Freeway Service Patrols, and Regional Vanpool Program Extension. The MSRC requests Board approval of the $12.875 Million FY 2005-05 Conceptual Work Program, including release of three solicitations totaling $6.75 million, $2 million to continue CNG school bus incentives, and $4.125 million in sole-source awards/modifications. The MSRC also requests approval of $22,631 to exercise the FY 2005-06 option for programmatic outreach with The Better World Group as well as contract modifications with Clean Energy and Raymond J. Gorski, a $173,300 new/replacement contract with City of Claremont, and an $85,000 award increase for Yucaipa Bus Services as part of the FYs 2002-03 and 2004-05 through 2006-07 Work Programs. The MSRC also requests authority to adjust project costs up to five percent and for the Board Chairman to execute multiple agreements.

COMMITTEE:

Mobile Source Air Pollution Reduction Review, July 21 and August 25, 2005

RECOMMENDED ACTIONS:

1. Approve first of two phases for FY 2005-06 AB 2766 Discretionary Fund Conceptual Work Program, with the first phase totaling $12.875 million, with additional funding for the second phase subject to approval by the MSRC and AQMD Board in future;
    
2. Approve release of three Program Announcements (attached), providing funding up to $6.75 million, as part of first phase of FY 2005-06 Conceptual Work Program;
    
3. Approve $2 million to continue the CNG School Bus Incentives Program, as part of first phase of FY 2005-06 Conceptual Work Program, through modifications to existing qualified vendor contracts with A-Z Bus Sales, California Bus Sales, and BusWest in an initial amount of $360,000 each, while retaining the remaining $920,000 to augment the contracts based on sales performance, subject to review and approval of MSRC;
    
4. Approve sole-source contracts totaling $3.95 million with the four county transportation commissions, listed below, starting with an initial $700,000 per county geographic minimum with the remaining $1.15 million funds distributed using their Tier 1 Statewide Freeway Service Patrol (FSP) formula, to implement Efficiency FSP Programs, as part of first phase of FY 2005-06 Conceptual Work Program:
   
   4.1    Riverside County Transportation Commission;
   4.2    Orange County Transportation Authority;
   4.3    San Bernardino Association of Governments; and
   4.4    Los Angeles County Metropolitan Transportation Authority
    
5. Approve contract modification augmenting funding in the amount of $175,000, for a total contract value of $615,200, to TransVironmental Solutions Inc. (Contract #MS03038) to extend the Regional Vanpool Program, as part of first phase of FY 2005-06 Conceptual Work Program;
    
6. Exercise second-year option clause to extend the contract (or issue a new contract in the event the amendment is not executed before the current contract term expires) with The Better World Group for FY 2005-06 outreach coordinator services in an amount not to exceed $22,361, as part of FY 2005-06 Work Program;
    
7. Approve contract modification with Clean Energy (Contract #MS03063, which currently provides $250,000 to install a CNG station) moving the station location to a new site less than two miles away, as part of FY 2002-03 Work Program;
    
8. Approve contract modification augmenting funding totaling $30,000 to Raymond J. Gorski (Contract # MS05071, which currently provides technical advisor services for a two-year period) to provide for part-time staffing through a subcontractor, as part of FYs 2005-06 and 2006-07 Work Programs;
    
9. Approve augmentation of an award in an amount not to exceed $85,000 for Yucaipa Bus Services for up to an additional ten particulate filters, as part of FY 2004-05 Work Program;
    
10. Approve new/replacement contract, as part of FY 2002-03 Work Program, with City of Claremont in the amount of $173,300 to purchase three CNG refuse trucks and install a CNG refueling station;
     
11. Authorize MSRC the authority to adjust contracts up to 5%, as necessary; and
     
12. Authorize the Chairman of the Board to execute multiple contracts and/or modifications as part of FYs 2002-03 and 2004-05 through 2006-07 AB 2766 Discretionary Fund Work Programs, as described above and within this letter.

Gwenn Norton-Perry
Vice-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. Further background is provided below.

FY 2005-06 Conceptual Work Program

For FY 2005-06, the MSRC has designed a two phase Conceptual Work Program. This action is to bring forward the first phase. On July 21, 2005, in a unanimous 7-0 vote, the MSRC adopted a proposed $12.875 million FY 2005-06 AB 2766 Discretionary Fund Work Program consisting of the following elements: Alternative Fuel Infrastructure Program, Local Government Match Program, Diesel Exhaust After-Treatment Retrofit Program, continuation of CNG School Bus Incentives Program, Efficiency Freeway Service Patrols, and extension of the Regional Vanpool Program. This includes release of three solicitations totaling $6.75 million, which were approved unanimously by the MSRC in a 5-0 vote on August 25, 2005; $2 million to continue CNG school bus incentives; and $4.125 million in sole-source awards/modifications. The Proposals section outlines the Conceptual Work Program elements in detail.

In addition to the above, the MSRC approved two separate elements as part of the FY 2005-06 Work Program, the amounts for which are not included in the $12.875 million above.

In the FY 2002-03 Work Program, the MSRC awarded a contract to The Better World Group to perform activities as the MSRC’s Outreach Coordinator. This contract was awarded through a competitive bid process. The contract included three option clauses to allow for extended performance, with additional funding subject to approval at a later date. The option for FY 2004-05 services was exercised and approved by the AQMD Board on October 1, 2004. The MSRC considered the second option in the amount of $22,361 for FY 2005-06 services at its August 25, 2005 meeting. Further details are described in the Proposals section.

The MSRC is currently developing a new website, including several new features, and this effort requires intensive MSRC staff attention to ensure the content is accurate and up to date. Additionally, since the MSRC’s FY 2005-06 Work Program will be implemented in two phases, allowing for more responsiveness to industry developments, it will require more staff support. As a result, the MSRC identified an immediate need for additional staff assistance, as part of the FYs 2005-06 & 2006-07 Work Programs. The MSRC considered several options to fulfill this need, and at its August 25, 2005 meeting considered final recommendations from its Technical Advisory Committee. Further details are described in the Proposals section.

FY 2004-05 Work Program

At their May 26, 2005 meeting, the MSRC considered backup list funding requirements for the FY 2004-05 Work Program and unanimously approved funding additional diesel exhaust after-treatment projects. Subsequent to this action, which was approved by the AQMD Board on June 3, 2005, staff learned that Yucaipa Bus Services had requested funding for an additional ten particulate filters totaling $85,000, which were not included during the consideration of the backup lists. On July 21, 2005, the MSRC considered Yucaipa’s request as part of the FY 2004-05 Work Program. Further details are described in the Proposals section.

FY 2002-03 Work Program

As part of the FY 2002-03 Work Program, Clean Energy was awarded a contract for $250,000 to install a publicly accessible CNG refueling station at 7171 Romaine Street at the Southern California Gas Hollywood base. Subsequent to the award, negotiations with the site owner could not be completed. Clean Energy has requested a contract modification for the site to be moved to a new location in Los Angeles, which is about two miles away from the current site. On July 21, 2005, the MSRC considered Clean Energy’s request as part of the FY 2004-05 Work Program. Further details are described in the Proposals section.

Also as part of the FY 2002-03 Work Program, the City of Claremont was awarded a $173,300 contract to purchase three heavy-duty natural gas vehicles and install a natural gas refueling station. Although the station has been completed, the vehicles had not been delivered when the contract expired on July 5, 2005. No monies have been paid under the contract. On August 25, 2005, the MSRC considered a new/replacement contract for the City of Claremont as part of the FY 2004-05 Work Program. Further details are described in the Proposals section.

Proposals

On July 21 and August 25, 2005, the MSRC met and took several actions relative to its FY 2005-06 Conceptual Work Program as well as other contracts and modifications for past and current work programs. Specific details follow.

FY 2005-06 Conceptual Work Program

For FY 2005-06 the MSRC has designed a two-phase Conceptual Work Program. This action is to bring forward the first phase. At this time the MSRC has approved $12.875 million for the first phase of the FY 2005-06 AB 2766 Discretionary Fund Conceptual Work Program, which consists of the following elements.

• PA #P2006-07 ($2.5 million): Alternative Fuel Infrastructure Funding Opportunities Program, providing funds for new and upgraded or expanded alternative fuel stations as well as facility modifications. New publicly accessible stations will be eligible for 50 percent of project costs up to a maximum of $250,000-$350,000 depending on station type. New limited access stations will be eligible for 25 percent of project costs up to a maximum of $150,000. Upgrades/expansions will be eligible for 50 percent up to $150,000 for public access and 25 percent up to $75,000 for limited access. Facility modifications are eligible for 50 percent of project costs up to $50,000. The MSRC’s co-funding will be inclusive of any AQMD cost-sharing, such that together the combined funding won’t exceed 50 percent of the total project costs. The maximum funding for any entity is 60 percent of the total funding for this element.
• PA #2006-05 ($1.25 million): Diesel Exhaust After-Treatment Retrofit Program, providing a match 50 percent but no more than $4,500 per unit to retrofit existing diesel vehicles with CARB-certified exhaust after-treatment devices. Units reducing both NOx and PM will be similarly equally co-funded up to $10,000 per unit.
• PA #2006-06 ($3 million): Local Government Match Program, providing matching funds dollar for dollar to AB 2766 City Subvention Funds towards the purchase of alternative fuel vehicles and infrastructure, including new stations, upgrades and expansions, and facility modifications. Funds will be distributed on a first-come, first-serve basis, although applications received on the first day will be considered equal and funding will be prorated if first-day applications exceed the funding target;
• Continuation of CNG School Bus Incentives Program, providing $2 million in incentives for both public school districts and private providers wanting to purchase CNG school buses. Existing contracts with previously qualified vendors--California Bus Sales, A-Z Bus Sales and Bus West--will be modified to add an initial amount of $360,000 each, while retaining the remaining $920,000 to augment the contracts based on sales performance, subject to review and approval of MSRC.
• Efficiency Freeway Service Patrol Program, allocating $3.95 million to the four county transportation commissions, listed below, starting with an initial $700,000 per county geographic minimum with the remaining $1.15 million funds distributed using their Tier 1 Statewide FSP formula, to implement new or expanded freeway service patrols:
       --Riverside County Transportation Commission;
       --Orange County Transportation Authority;
       --San Bernardino Association of Governments; and
       --Los Angeles County Metropolitan Transportation Authority
• Regional Vanpool Program Extension, expanding the existing successful program, through a contract modification with TransVironmental Solutions Inc. augmenting their contract with an additional $175,000 for a total contract value of $615,200 to continue administration and new vanpool formations.

The MSRC initially approved the above framework for the first phase of its FY 2005-06 Conceptual Work Program on July 21, 2005. Three Program Announcements for the Work Program were unanimously approved by the MSRC on August 25, 2005. The target funding allocations for the solicitations may be reassigned by the MSRC based on its review of proposals received in each respective category and to allow for mid-year adjustments. The Program Announcements are open for extended periods beginning October 4, 2005. Applications for the Diesel After-Treatment Retrofit Program and the Local Government Match Program will be accepted through January 31, 2006, or until such time as all available program funds have been expended. Applications for the Alternative Fuel Infrastructure Funding Opportunities Program will be accepted through June 30, 2006. Additional dollars may be allocated to each solicitation if the MSRC receives additional revenue or turnback funds.

As mentioned in the Background section, the MSRC awarded a contract to The Better World Group to perform activities as the MSRC’s Outreach Coordinator. This contract was awarded through a competitive bid process. The contract included three option clauses to allow for extended performance, with additional funding subject to approval at a later date. The option for FY 2004-05 services was exercised and approved by the AQMD Board on October 1, 2004. At its August 25, 2005 meeting, the MSRC unanimously approved exercising the second option in the amount of $22,361 for FY 2005-06 services at its August 25, 2005 meeting. This is part of the FY 2005-06 Work Program.

Also mentioned in the Background section, the MSRC identified an immediate need for additional staff assistance, as part of the FYs 2005-06 & 2006-07 Work Programs. The MSRC considered several options to fulfill this need. At its August 25, 2005 meeting, the MSRC unanimously approved a contract modification to its Technical Advisor Services contract with Raymond J. Gorski to augment it with an additional $30,000 ($15,000 for each fiscal year Work Program). The modification will allow the MSRC to immediately bring a subcontractor on board. A candidate has already been identified who has unique qualifications as the former MSRC Contracts Administrator.

Currently, the MSRC requests the AQMD Board’s approval of the FY 2005-06 Work Program, as described above, including release of the three Program Announcements attached to this Board letter, as well as exercising the FY 2005-06 option with The Better World Group for outreach coordinator services, and the contract modification with Mr. Gorski, authorizing augmentation and approval of a subcontractor, as part of both the FYs 2005-06 and 2006-07 Work Programs.

FY 2004-05 Work Program

As mentioned in the Background section, the MSRC approved funding additional diesel exhaust after-treatment projects, and subsequently discovered that Yucaipa Bus Services had requested funding for an additional ten particulate filters totaling $85,000, which were not included during the consideration of the backup lists. They were already awarded $68,000 for eight particulate filters. On July 21, 2005, the MSRC unanimously approved augmenting Yucaipa’s initial award for a total award of $153,000 for up to 18 filters. The MSRC requests the AQMD Board’s approval of this modified award as part of the FY 2004-05 Work Program.

FY 2002-03 Work Program

As mentioned in the Background section, Clean Energy was awarded a contract for $250,000 to install a publicly accessible CNG refueling station at 7171 Romaine Street at the Southern California Gas Hollywood base. Subsequent to the award, negotiations with the site owner could not be completed. Clean Energy has requested a contract modification for the site to be moved to a new location in Los Angeles, which is about two miles away from the current site. On July 21, 2005, the MSRC approved in a 6-0 vote, a contract modification with Clean Energy to move the site location. The MSRC requests the AQMD Board’s approval of this modification as part of the FY 2002-03 Work Program.

The City of Claremont was awarded a $173,300 contract to purchase three heavy-duty natural gas vehicles and install a natural gas refueling station. The contract expired before all work could be completed or any billing received. On August 25, 2005, the MSRC unanimously approved a new/replacement contract for the City of Claremont in the amount of $173,300 for this work. The MSRC requests the AQMD Board’s approval of this new/replacement contract as part of the FY 2002-03 Work Program.

The MSRC requests authority to adjust the funds allocated to each project/contract 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 AQMD Board authorize its Chairman of the Board to execute all agreements and/or modifications, as described in this letter, as part of FYs 2002-03 and 2004-05 through FY 2006-07 Work Programs.

Outreach

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

The funding solicitations will be placed on the MSRC's new website at http://www.cleantransportationfunding.org and placed on the AQMD’s website at http://www.aqmd.gov. Information will also be available on the AQMD’s bidder’s 24-hour telephone message line (909) 396-2724. A press release will also be issued and placed on the MSRC’s website.

In addition to the AQMD's standard practices, a postcard announcing these funding opportunities is being 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 will also be mailed to local legislators, mayors, city council members and city managers in the four counties, and AB 2766 Subvention Fund city administrators. The Local Government Match Program Announcement will be mailed directly to all city mayors and managers in the four counties.

To assist potential bidders in submitting qualified proposals, two non-mandatory bidders’ conferences will be conducted at AQMD Headquarters on September 28, 2005, in Room CC6. The first will be held at 1:30 p.m. for the Alternative Fuel Infrastructure Funding Opportunities Program Announcement and the second at 3:00 p.m. for the Local Government Match Program. A bidders’ conference will not be convened for the third Program Announcement since it is similar to last’s year program.

Proposal Evaluation and Panel Composition

Proposals received for the Work Program’s funding solicitations (outlined under the proposals section) will be evaluated by members of the MSRC-TAC, a diverse group of individuals appointed by participating members as prescribed in the Health & Safety Code. Several evaluation teams will be formed to evaluate proposals in the various program solicitations, the membership of which will be identified in the Board letter recommending specific contract awards.

Sole-Source Justifications

As part of the first phase of the FY 2005-06 Conceptual Work Program, the MSRC has designed a $3.95 million Efficiency Freeway Service Patrol Program. This program will be implemented by initiating four sole-source contracts with the four county transportation commissions. While the MSRC and AQMD strive to retain technical services on a competitive basis, the AQMD Procurement Policy and Procedure recognizes that, at times, the unique experience of one vendor makes the pursuit of a competitive procurement futile. Such is the case in this instance. Each of the four County Transportation Commissions mentioned above acts as the "Service Authority for Freeways and Expressways (SAFE)" for their county. There are no other providers of freeway service patrols within AQMD’s jurisdiction.

This request for sole-source awards to the four county transportation commissions is made under provision VIII.B.2.c.(1): The desired services are available from only the sole source due to the unique experience and capabilities of the proposed contractor or contractor team; and (3) The contractor has ownership of key assets required for project performance.

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.

Attachments (EXE 1.2 mb)

PA #2006-05: Diesel Exhaust After-Treatment Retrofit Program
PA #2006-06: Local Government Match Program
PA #P2006-07: Alternative Fuel Infrastructure Funding Opportunities

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