BOARD MEETING DATE: March 3, 2006
AGENDA NO. 10

Approve Multiple Contract Awards as Part of MSRC's FY 2005-06 AB 2766 Discretionary Fund Work Program and Contract Modifications from Prior Programs; Grant MSRC Authority to Adjust Project Costs Up to Five Percent; and Authorize Board Chairman to Execute Agreements

SYNPOSIS:

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 and $3 million for the Local Government Match Program. On February 23, 2006, the MSRC met to consider several applications received recently under these program solicitations. At this time, the MSRC requests approval of multiple contract awards as part of the FY 2005-06 Work Program as well as a contract modification from a prior work program. 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,
February 23, 2006, Approved

RECOMMENDED ACTIONS:

1. Approve the award of two contracts totaling $266,000 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:

   1.1 A contract with City of Los Angeles, Department of Water and Power, in an amount not to exceed $200,000 for up to 45 retrofit devices; and

   1.2 A contract with City of San Bernardino in an amount not to exceed $66,000 for up to 16 retrofit devices.
    

2. Approve the award of 24 contracts totaling $5,491,298 ($3 million from the set aside in the FY 2005-06 Work Program and $2,491,298 from turn-back funds coupled with a portion of the funds previously set aside for Phase II of this Work Program) under the Local Government Match Program, as part of FY 2005-06 AB 2766 Discretionary Fund Work Program, as described in this letter and as follows:

2.1 A contract with City of Whittier in an amount not to exceed $50,000 for up to two natural gas refuse trucks;

2.2 A contract with City of Claremont in an amount not to exceed $50,000 for up to two natural gas refuse trucks;

2.3 A contract with the County of Los Angeles Beaches & Harbors in an amount not to exceed $375,000 for up to two natural gas dump trucks and installation of a new natural gas refueling station at Will Rogers Beach;

2.4 A contract with the County of Los Angeles Beaches & Harbors in an amount not to exceed $250,000 for up to two natural gas dump trucks and installation of a new natural gas refueling station at Zuma County Beach;

2.5 A contract with the City of Los Angeles, Department of Water and Power, in an amount not to exceed $50,000 for up to two natural gas trucks (one boom and one aerial);

2.6 A contract with the City of Los Angeles, Environmental Affairs Department, on behalf of the Los Angeles World Airports, in an amount not to exceed $150,000 for up to six natural gas buses;

2.7 A contract with the City of Los Angeles, Environmental Affairs Department, on behalf of the Public Works Bureau of Sanitation and General Services Department, in an amount not to exceed $1,875,000 for up to 25 natural gas street sweepers and 50 natural gas refuse collection vehicles;

2.8 A contract with the City of Baldwin Park in an amount not to exceed $20,000 for up to one natural gas dump truck;

2.9 A contract with the City of Pomona in an amount not to exceed $286,450 for installation of a new natural gas refueling station;

2.10 A contract with the City of Santa Monica in an amount not to exceed $325,000 for up to 13 natural gas vehicles (one sweeper, three crane trucks, six refuse trucks, two water trucks and one dump truck);

2.11 A contract with the City of Pomona in an amount not to exceed $50,000 for two natural gas street sweepers;

2.12 A contract with the City of Cerritos in an amount not to exceed $60,500 for the upgrade of their natural gas refueling station;

2.13 A contract with the City of Redondo Beach in an amount not to exceed $50,000 for up to two natural gas heavy-duty vehicles (one boom crane and one aerial lift);

2.14 A contract with the City of Pasadena in an amount not to exceed $245,000 for installation of a new natural gas refueling station and maintenance facility modifications;

2.15 A contract with the City of Culver City, Transportation Department, in an amount not to exceed $50,000 for up to two natural gas heavy-duty vehicles (one sewer vacuum cleaning truck and one refuse collection truck;

2.16 A contract with the City of Burbank in an amount not to exceed $287,700 for installation of a new natural gas refueling station;

2.17 A contract with the City of Inglewood in an amount not to exceed $225,000 for up to seven LPG hauler trucks and installation of a new natural gas refueling station;

2.18 A contract with the City of Rancho Cucamonga in an amount not to exceed $237,079 for installation of a new natural gas refueling station and up to two natural gas dump trucks;

2.19 A contract with the City of Inglewood in an amount not to exceed $50,000 for modifications to their natural gas infrastructure;

2.20 A contract with the City of Cathedral City in an amount not to exceed $125,000 for up to five natural gas heavy-duty vehicles (four pickup trucks and one freightliner;

2.21 A contract with the City of South Pasadena in an amount not to exceed $40,569 for up to two natural gas transit buses;

2.22 A contract with the City of Hemet in an amount not to exceed $414,000 for up to seven natural gas refuse trucks and installation of a new natural gas refueling station;

2.23 A contract with the City of Riverside in an amount not to exceed $200,000 for up to three natural gas dump trucks and five natural gas trash collection trucks; and

2.24 A contract with the City of Lynwood in an amount not to exceed $25,000 for up to one natural gas dump truck.

3. Approve a contract modification (#MS03024) with the City of Desert Hot Springs to substitute one natural gas pickup truck in exchange for one natural gas skip loader.
    
4. Authorize MSRC the authority to adjust contract awards up to five percent, as necessary; and
    
5. Authorize the Chairman of the Board to execute multiple contracts as part of FY 2005-06 AB 2766 Discretionary Fund Work Program and the contract modification as described above and within this letter.

Barry R. Wallerstein, D.Env.
Executive Officer

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 2005-06 Work Program
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 and $3 million for the Local Government Match Program.

The Diesel Exhaust Aftertreatment Retrofit 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. The MSRC and AQMD Board previously approved four applications totaling $584,000 under this Program. Two more applications were considered at the MSRC’s February 23, 2006 meeting; details are provided in the Proposals section.

The Local Government Match Program Announcement (PA), #2006-06, provides $3 million in dollar-for-dollar matching funds toward AB 2766 City Subvention Funds and/or local matching funds for 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, unless the MSRC chooses to augment the Program with turn-back funds. There is also a geographic minimum of $375,000 for each county. If a county does not apply for its entire geographic minimum by the closing date of January 31, 2006, the funds may be used by other counties on a first-come, first-serve basis. Several applications were considered at the MSRC’s February 23, 2006 meeting; details are provided in the Proposals section.

Prior Work Program
As part of the FY 2002-03 Work Program, the City of Desert Hot Springs was awarded $43,455 to purchase a natural gas street sweeper and skip loader and to implement post event cleanup to remove dirt and sand from roadways after wind events. The City has been reimbursed for $21,995.10 under this Contract. The City has asked to substitute one natural gas pickup truck in exchange for one natural gas skip loader. The MSRC considered this request at its February 23, 2006 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. Additionally, the Local Government Match Program Announcement was mailed to all city managers within the SCAQMD jurisdiction.

Bidders’ Conferences

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

For the Local Government Match Program, a non-mandatory bidders’ conference was conducted at AQMD Headquarters on September 28, 2005, at 3:00 p.m. in Room CC6.

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 February 23, 2006, in a 6-0 vote, the MSRC considered recommendations from its MSRC-TAC and unanimously approved multiple contract awards and one contract modification.

FY 2005-06 Work Program
First, under the Diesel Exhaust Aftertreatment Retrofit Program, the MSRC approved two awards totaling $266,000, as follows:

1. A contract with City of Los Angeles, Department of Water and Power, in an amount not to exceed $200,000 for up to 45 retrofit devices; and
2. A contract with City of San Bernardino in an amount not to exceed $66,000 for up to 16 retrofit devices.

The award to the City of Los Angeles is contingent upon submittal of documentation demonstrating that the City has fulfilled their obligations under the CARB Fleet Rules and the MSRC-funded devices will be above and beyond these obligations. Additionally, prior to contract execution, the City must submit a final list of the vehicles to be retrofitted and the aftertreatment device models to be installed.

Second, under the Local Government Match Program, the MSRC approved 24 awards totaling $5,491,298. The $5,491,298 consists of $3 million initially set aside in the FY 2005-06 Work Program for this category, plus $2,491,298 in turn-back funds coupled with a portion of the funds previously set aside for Phase II of this Work Program. The MSRC allocated additional monies in order to fund the entire backup list of eligible projects in this category. The awards under the Local Government Match Program are as follows:

1. A contract with City of Whittier in an amount not to exceed $50,000 for up to two natural gas refuse trucks;
2. A contract with City of Claremont in an amount not to exceed $50,000 for up to two natural gas refuse trucks;
3. A contract with the County of Los Angeles Beaches & Harbors in an amount not to exceed $375,000 for up to two natural gas dump trucks and installation of a new natural gas refueling station at Will Rogers Beach;
4. A contract with the County of Los Angeles Beaches & Harbors in an amount not to exceed $250,000 for up to two natural gas dump trucks and installation of a new natural gas refueling station at Zuma County Beach;
5. A contract with the City of Los Angeles, Department of Water and Power, in an amount not to exceed $50,000 for up to two natural gas trucks (one boom and one aerial);
6. A contract with the City of Los Angeles, Environmental Affairs Department, on behalf of the Los Angeles World Airports, in an amount not to exceed $150,000 for up to six natural gas buses;
7. A contract with the City of Los Angeles, Environmental Affairs Department, on behalf of the Public Works Bureau of Sanitation and General Services Department, in an amount not to exceed $1,875,000 for up to 25 natural gas street sweepers and 50 natural gas refuse collection vehicles;
8. A contract with the City of Baldwin Park in an amount not to exceed $20,000 for up to one natural gas dump truck;
9. A contract with the City of Pomona in an amount not to exceed $286,450 for installation of a new natural gas refueling station;
10. A contract with the City of Santa Monica in an amount not to exceed $325,000 for up to 13 natural gas vehicles (one sweeper, three crane trucks, six refuse trucks, two water trucks and one dump truck);
11. A contract with the City of Pomona in an amount not to exceed $50,000 for two natural gas street sweepers;
12. A contract with the City of Cerritos in an amount not to exceed $60,500 for the upgrade of their natural gas refueling station;
13. A contract with the City of Redondo Beach in an amount not to exceed $50,000 for up to two natural gas heavy-duty vehicles (one boom crane and one aerial lift;
14. A contract with the City of Pasadena in an amount not to exceed $245,000 for installation of a new natural gas refueling station and maintenance facility modifications;
15. A contract with the City of Culver City, Transportation Department, in an amount not to exceed $50,000 for up to two natural gas heavy-duty vehicles (one sewer vacuum cleaning truck and one refuse collection truck);
16. A contract with the City of Burbank in an amount not to exceed $287,700 for installation of a new natural gas refueling station;
17. A contract with the City of Inglewood in an amount not to exceed $225,000 for up to seven LPG hauler trucks and installation of a new natural gas refueling station;
18. A contract with the City of Rancho Cucamonga in an amount not to exceed $237,079 for installation of a new natural gas refueling station and up to two natural gas dump trucks;
19. A contract with the City of Inglewood in an amount not to exceed $50,000 for modifications to their natural gas infrastructure;
20. A contract with the City of Cathedral City in an amount not to exceed $125,000 for up to five natural gas heavy-duty vehicles (four pick up trucks and one freightliner);
21. A contract with the City of South Pasadena in an amount not to exceed $40,569 for up to two natural gas transit buses;
22. A contract with the City of Hemet in an amount not to exceed $414,000 for up to seven natural gas refuse trucks and installation of a new natural gas refueling station;
23. A contract with the City of Riverside in an amount not to exceed $200,000 for up to three natural gas dump trucks and five natural gas trash collection trucks; and
24. A contract with the City of Lynwood in an amount not to exceed $25,000 for up to one natural gas dump truck.

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.

Prior Work Program
The MSRC also approved a contract modification for an existing contract (#MS03024) with the City of Desert Hot Springs to substitute one natural gas pickup truck in exchange for one natural gas skip loader. This would result in a reduction of the contract amount by $476. No other contract terms are being modified at this time.

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 as well as the contract modification from the prior 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.

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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