BOARD MEETING DATE: December 1, 2006
AGENDA NO. 11

Award Contracts Under FYs 2002-03, 2005-06 and 2006-07 AB 2766 Discretionary Fund Work Programs

SYNOPSIS:

At its October 19, 2006 meeting, the MSRC unanimously approved two sole-source contracts to BusWest and S-W Compressors, Inc. to assist in administering a CNG school bus demonstration program in partnership with the MSRC and Bear Valley and Rim of the World Unified School Districts. The MSRC seeks AQMD Board approval of these two sole-source contracts in the amount of $150,930 under the FY 2006-07 AB 2766 Discretionary Fund Work Program. At its November 16, 2006 meeting, the MSRC approved a new/replacement contract to the City of Desert Hot Springs, multiple contracts under the Local Government Match Program, and a sole-source contract to the Coachella Valley Association of Governments to administer a PM10 Reduction Street Sweeping Operations Program. The MSRC seeks AQMD Board approval of these awards in the amount of $2,245,934 under FYs 2002-03, 2005-06 and 2006-07 Work Programs, respectively.

COMMITTEE:

Mobile Source Air Pollution Reduction Review, October 19 and November  16, 2006

RECOMMENDED ACTIONS:

1. Approve a new/replacement contract with City of Desert Hot Springs in an amount not to exceed $2,965 to complete work initiated under Contract #MS03024 under FY 2002-03 AB 2766 Discretionary Fund Work Program, as described in this letter;
2. Approve the award of 19 contracts totaling $1,842,969 (using $1 million from funding originally allocated to this Program and an additional $842,969 in turnback funds) as part of the Local Government Match Program under FY 2005-06 AB 2766 Discretionary Fund Work Match Program, as described in this letter and as follows:

1.    A contract with City of Hemet in an amount not to exceed $25,000 for one
       natural gas dump truck;
2.    A contract with City of Burbank in an amount not to exceed $125,000 for
       up  to five natural gas refuse trucks;
3.    A contract with County of Los Angeles, Dept. of Public Works, in an
       amount
       not to exceed $175,000 for up to seven natural gas heavy-duty trucks;
4.    A contract with City of Los Angeles, Environmental Affairs Dept., in an
       amount not to exceed $125,000 for up to five gasoline-electric hybrid
       transit  buses or equivalent vehicles;
5.    A contract with City of Los Angeles, Environmental Affairs Dept., in an
       amount not to exceed $350,000 for maintenance facility modifications to
       accommodate natural gas vehicles;
6.    A contract with City of Rancho Cucamonga in an amount not to exceed
       $100,000 for up to two natural gas street sweepers and two natural gas
       heavy-duty trucks;
7.    A contract with City of Santa Monica in an amount not to exceed $149,925
       for up to three natural gas heavy-duty trucks and construction of a
       time-fill CNG station;
8.    A contract with City of Fountain Valley in an amount not to exceed
       $25,000 for one natural gas heavy-duty truck;
9.    A contract with Temple City in an amount not to exceed $31,885 to
       upgrade their existing CNG refueling station;
10.  A contract with City of Chino Hills in an amount not to exceed $25,000 for
       one natural gas heavy-duty vehicle;
11.  A contract with City of Redlands in an amount not to exceed $100,000 for
       up to four natural gas refuse or recycling trucks;
12.  A contract with City of Moreno Valley in an amount not to exceed $25,000
       for one natural gas street sweeper;
13.  A contract with South Pasadena in an amount not to exceed $123,999 for
       up to three natural gas heavy-duty trucks and construction of a time-fill
       CNG station;
14.  A contract with City of Walnut in an amount not to exceed $44,203 to
       upgrade their existing CNG fast-fill refueling station;
15.  A contract with City of Ontario in an amount not to exceed $125,000 for
       up to five natural gas heavy-duty refuse and sewer trucks;
16.  A contract with El Monte in an amount not to exceed $157,957 to upgrade
       and expand their existing CNG station;
17.  A contract with Claremont in an amount not to exceed $60,000 to expand
       their existing CNG station;
18.  A contract with Palos Verdes Estates in an amount not to exceed $25,000
       for one LPG bus; and
19.  A contract with City of Colton in an amount not to exceed $50,000 for up
       to two natural gas heavy-duty pickups.

3. Approve the award of two sole-source contracts totaling $150,930 to assist in administering the Mountain Area CNG School Bus Demonstration Program under Phase I of FY 2006-07 AB 2766 Discretionary Fund Work Program, as described in this letter and as follows:

3.1   A sole-source contract with BusWest in an amount not to exceed $90,930
        to provide the lease of two CNG Thomas Built school buses; and
3.2   A sole-source contract with S-W Compressors, in an amount not to
        exceed $60,000 to provide the lease of two temporary CNG stations;

4. Approve sole-source contract to Coachella Valley Association of Governments in the amount of $400,000 to administer a PM10 Reduction Street Sweeping Operations Program; and
5. Authorize the Chairman of the Board to execute new and modified contracts under FYs 2002-03, 2005-06 and 2006-07 AB 2766 Discretionary Fund Work Programs, 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.  

FY 2002-03 Work Program
The MSRC previously awarded a contract to City of Desert Hot Springs in the amount of $42,979 for the purchase of one CNG pickup and one CNG street sweeper and to implement post-even cleanup under the FY 2002-03 Work Program. However, due to staffing changes at the City, the work was not completed before the contract, No. MS03024, expired in September 2006. The City requested a new/replacement contract to complete the remaining work. The MSRC considered a new/replacement contract at its November 16, 2006 meeting. Further details are described below in the Proposals section.

FY 2005-06 Work Program
As part of Phase II of the FY 2005-06 Work Program, the MSRC allocated $1 million to assist local governments. A Local Government Match Program Announcement, #PA2006-10, was released on July 6, 2006, providing matching funds dollar for dollar to AB 2766 City/County Subvention Funds and/or local matching funds for the purchase of alternative fuel heavy-duty vehicles and infrastructure, including new stations, station upgrades and expansions, and facility modifications. The Program Announcement provided for an extended application period from July 6 through October 6, 2006, and funds were to be distributed on a first-come, first-serve basis with a geographic minimum of $125,000 per county. Applications received on the first day would be considered equal and funding would be pro-rated if first-day applications exceeded the funding target. If each county did not request their full geographic minimum by the closing date, the funds could be used for applications from other counties on a first-come, first-serve basis. A total of 19 applications were received by the closing date, and the MSRC considered its Technical Advisory Committee’s funding recommendations for these applications at its November 16, 2006 meeting. Further details are described below in the Proposals section.

FY 2006-07 Work Program
When the MSRC developed its two-phase $12.7 million FY 2006-07 Work Program, it concurrently directed MSRC staff to investigate issues surrounding dirty diesel school buses in two high-altitude, mountainous regions. As a result, the MSRC further directed staff to return with a recommendation on how best to implement a Mountain Area CNG School Bus Demonstration Program. At its October 19, 2006 meeting, the MSRC considered its Technical Advisory Committee’s recommendations for this Program. Further details are described below in the Proposals section.

At its November 16, 2006 meeting the MSRC considered an urgency request from the Coachella Valley Association of Governments (CVAG) for assistance in mitigating re-entrained road dust in light of the fact that Coachella Valley is at risk of losing its attainment status for PM10. CVAG asked for immediate funding assistance to continue administration of its street sweeping operations throughout the CVAG region under the the FY 2006-07 Work Program. CVAG also proposed that an eligibility category be added to the next Local Government Match Program that would help cities with such efforts. Further details are described below in the Proposals section.

Outreach

For the Local Government Match Program #PA2006-10, described above, in accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the Program Announcement and inviting bids was published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun, and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin.

Additionally, potential bidders may have been notified utilizing the Los Angeles County MTA Directory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and AQMD’s own electronic listing of certified minority vendors.  Notice of the PA was mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, and placed on the Internet at AQMD’s Web site (http://www.aqmd.gov/).  Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

The funding solicitation was also placed on the MSRC's website at http://www.cleantransportationfunding.org/, and a targeted mailing was conducted to AB 2766 Subvention Fund city administrators and Public Works directors within the AQMD’s jurisdiction. A press release on funding opportunities available in the FY 2005-06 Work Program was also issued and placed on the MSRC’s website.

Bidders’ Conferences

A Bidders’ Conference was not conducted for the Local Government Match Program since it was similar to the previous program.

Proposal Evaluation and Panel Composition

The MSRC’s Technical Advisory Committee formed an evaluation subcommittee to review the applications received to determine eligibility, using the criteria within the Alternative Fuel Infrastructure Funding Opportunities Program Announcement. The MSRC-TAC is a diverse group of individuals appointed by participating members as prescribed in the Health & Safety Code.

Proposals

At its October 19 and November 16, 2006 meeting, the MSRC considered several recommendations from its Technical Advisory Committee and unanimously approved the following:

FY 2002-03 Work Program
As stated in the Background section, the MSRC previously awarded a contract to the City of Desert Hot Springs in the amount of $42,979 for the purchase of one CNG pickup and one CNG street sweeper and to implement post-even cleanup under the FY 2002-03 Work Program. Due to staffing changes at the City, however, the work was not completed before the contract, No. MS03024, expired in September 2006. Out of the $42,979 in the recently expired contract, $24,956.05 has been paid to date for the street sweeper and post-event cleanup. The CNG pickup has not yet been delivered. At its November 16, 2006 meeting, the MSRC unanimously approved a new/replacement contract with the City of Desert Hot Springs in an amount not to exceed $2,965 to complete the work started under Contract #MS03024. The contract term will be three months. At this time the MSRC requests AQMD Board approval of this new/replacement contract with the City of Desert Hot Springs under the FY 2002-03 Work Program.

FY 2005-06 Work Program
As mentioned in the Background section, the MSRC allocated $1 million for a Local Government Match Program under Phase II of the FY 2005-06 Work Program. When the Program Announcement closed on October 6, 2006, a total of 19 eligible applications requesting $1,842,969 had been received. At its November 16, 2006 meeting, the MSRC unanimously decided to fund all applications using the $1 million initially allocated for the Program plus $842,969 from turnback funds. At this time the MSRC requests AQMD Board approval of the following awards under the FY 2005-06 Work Program:

1. A contract with City of Hemet in an amount not to exceed $25,000 for one natural gas dump truck;
2. A contract with City of Burbank in an amount not to exceed $125,000 for up to five natural gas refuse trucks;
3. A contract with County of Los Angeles, Dept. of Public Works, in an amount not to exceed $175,000 for up to seven natural gas heavy-duty trucks;
4. A contract with City of Los Angeles, Environmental Affairs Dept., in an amount not to exceed $125,000 for up to five gasoline-electric hybrid transit buses or equivalent vehicles;
5. A contract with City of Los Angeles, Environmental Affairs Dept., in an amount not to exceed $350,000 for maintenance facility modifications to accommodate natural gas vehicles;
6. A contract with City of Rancho Cucamonga in an amount not to exceed $100,000 for up to two natural gas street sweepers and two natural gas heavy-duty trucks;
7. A contract with City of Santa Monica in an amount not to exceed $149,925 for up to three natural gas heavy-duty trucks and construction of a time-fill CNG station;
8. A contract with City of Fountain Valley in an amount not to exceed $25,000 for one natural gas heavy-duty truck;
9. A contract with Temple City in an amount not to exceed $31,885 to upgrade their existing CNG refueling station;
10. A contract with City of Chino Hills in an amount not to exceed $25,000 for one natural gas heavy-duty vehicle;
11. A contract with City of Redlands in an amount not to exceed $100,000 for up to four natural gas refuse or recycling trucks;
12. A contract with City of Moreno Valley in an amount not to exceed $25,000 for one natural gas street sweeper;
13. A contract with South Pasadena in an amount not to exceed $123,999 for up to three natural gas heavy-duty trucks and construction of a time-fill CNG station;
14. A contract with City of Walnut in an amount not to exceed $44,203 to upgrade their existing CNG fast-fill refueling station;
15. A contract with City of Ontario in an amount not to exceed $125,000 for up to five natural gas heavy-duty refuse and sewer trucks;
16. A contract with El Monte in an amount not to exceed $157,957 to upgrade and expand their existing CNG station;
17. A contract with Claremont in an amount not to exceed $60,000 to expand their existing CNG station;
18. A contract with Palos Verdes Estates in an amount not to exceed $25,000 for one LPG bus; and
19. A contract with City of Colton in an amount not to exceed $50,000 for up to two natural gas heavy-duty pickups.

FY 2006-07 Work Program
As mentioned in the Background section, the MSRC directed staff to return with a recommendation on how best to implement a Mountain Area CNG School Bus Demonstration Program. At its October 19, 2006 meeting, the MSRC unanimously approved one or more sole-source agreements to BusWest and S-W Compressors, Inc. in an aggregate amount not to exceed $150,930 to assist in administering this Program in partnership with the MSRC and Bear Valley and Rim of the World Unified School Districts. Each school district will be provided a leased CNG bus and the use of a temporary CNG refueling station for a one-year period during which time data will be collected to determine the feasibility of CNG buses in these high-altitude, mountainous regions. Staff was authorized to determine the best contractual mechanism. At this time the MSRC requests AQMD Board approval of the following awards under the FY 2006-07 Work Program.

1. A sole-source contract with BusWest in an amount not to exceed $90,930 to provide the lease of two CNG Thomas Built school buses; and
    
2. A sole-source contract with S-W Compressors, in an amount not to exceed $60,000 to provide the lease of two temporary CNG stations

As also mentioned in the Background section, Coachella Valley is at risk of losing its attainment status for PM10. Owing to its proximity to desert terrain, a major source of the region’s PM10 emanates from “blow sand” deposited on roadways and arterial highways.  This sand is subsequently ground into fine particulate by vehicle tires and re-entrained into the atmosphere. A PM10 dust mitigation strategy whose effectiveness has been demonstrated in the Coachella Valley is frequent street sweeping.  This is especially critical following a wind event, where significant amounts of sand accumulate on roadways throughout the entire Coachella Valley. At its November 16, 2006 meeting the MSRC unanimously added an urgency item to the agenda in order to consider CVAG’s urgent request for funding. Following full discussion of the issues, the MSRC unanimously approved a sole-source contract in the amount of $400,000 to CVAG to continue administration of street sweeping operations throughout the CVAG region as part of CVAG’s Regional PM10 Street Sweeping Program, which is an element of the Coachella Valley State Implementation Plan. The MSRC also directed its Technical Advisory Committee to develop a new Local Government Match Program under the FY 2006-07 Work Program and recommend how a new element could be added to the Program to assist all cities in the AQMD’s jurisdiction with PM10 problems through street sweeping operations. At this time the MSRC requests AQMD Board approval of a sole-source award to CVAG in the amount of $400,000 under the FY 2006-07 Work Program. The new Local Government Match Program will be considered by the MSRC and AQMD at a future date.

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 under FYs 2002-03, 2005-06 and 2006-07 Work Programs. 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.

Sole-Source Justifications

As discussed in Proposals above, the MSRC determined that the best approach for the Mountain Area CNG School Bus Demonstration Program would be to offset the cost of leasing one CNG bus and one temporary CNG fueling station, per school district, for one year. The MSRC authorized agreements, up to a combined total $150,930, with BusWest for the buses and S‑ W Compressors for the fueling stations. While the MSRC and AQMD strive to retain technical services and award contracts through a competitive bid basis, the AQMD’s Procurement Policy recognizes that, at times, the unique experience of one vendor makes the pursuit of a competitive procurement futile.  Such is the case with these two awards. 

Bluebird and Thomas Built are the only manufacturers who offer a CNG school bus product. The mountain area school districts have indicated that the buses manufactured by Thomas Built better accommodate the use of snow chains due to larger wheel well openings.  As these school districts must use snow chains during the winter, it is appropriate to procure Thomas Built buses for the Program, and BusWest is the only vendor in California which sells the CNG Thomas Built buses.

S‑ W Compressors is the only local vendor which rents temporary CNG fueling stations.  Additionally, S‑ W Compressors has unique experience in that they have been providing, as a subcontractor to A‑ Z  Bus Sales, temporary fueling facilities for school districts participating in the AQMD’s current bus demonstration program.

Therefore, this request for a $90,930 sole-source award to BusWest, and a $60,000 sole-source award to S‑ W Compressors, 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.

As also discussed in Proposals above, the MSRC unanimously approved awarding $400,000 to CVAG for administration of street sweeping operations throughout the CVAG region. While the MSRC and AQMD strive to award contracts through a competitive bid basis, the AQMD’s Procurement Policy recognizes that, at times, the unique aspects of a project warrant a sole-source contracting process.  Such is the case with CVAG. 

Since the Regional PM10 Street Sweeping Program is an element of the Coachella Valley State Implementation Plan, CVAG is obligated to continue all best available control measures, including the Regional PM10 Street Sweeping Program.  Thus, in accordance with the Coachella Valley SIP, CVAG is the responsible and sole authority for implementation of this control strategy. The need for funding assistance from the MSRC is immediate. CVAG has no available funds to continue the Regional PM10 Street Sweeping Program for Fiscal Year 2007-08.  CVAG has also received confirmation from representatives of the Federal Highway Administration reiterating that SAFE TEA LU funds cannot be used for the operational elements of the Regional Street Sweeping Program. Thus, given that CVAG has an obligation under the Coachella Valley SIP to continue street sweeping operations in accordance with the approved Regional Program, and that CVAG is the sole authority to implement the Regional Program, the request for a $400,000 sole-source award to CVAG 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.

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.

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