BOARD MEETING DATE: January 5, 2007
AGENDA NO. 30

Receive Funds from Port of Los Angeles to Develop and Demonstrate Electric Tow Tractor

SYNOPSIS:

In December 2006, the Board awarded a contract to co-sponsor with the Port of Los Angeles (POLA) the development and demonstration of an electric tow tractor for container movement within and around the Port.  Staff has since been advised that POLA is unable to contract directly with the electric tow tractor company and would prefer to provide the funds to the AQMD.  This action is to enter into an agreement with POLA to receive the $263,500 to co-fund the development and demonstration of the electric tow tractor project. The AQMD is providing the remaining $263,500 from the Clean Fuels Fund for a total project cost of $527,000.

COMMITTEE:

Not Applicable

RECOMMENDED ACTIONS:

1. Authorize the Chairman to enter into an agreement with the Port of Los Angles to provide $263,500 to co-fund the development and demonstration of an electric tow tractor, and upon receipt, recognize $263,500 into the Clean Fuels Fund.
2. Authorize the Chairman to execute a contract with Balqon Corporation for the development and demonstration of an electric tow tractor at a cost not to exceed $527,000 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In December 2006, the Board awarded a contract to co-sponsor with the Port of Los Angeles (POLA) the development and demonstration of an electric tow tractor for container movement within and around the Port.

Proposal

Since the December 2006 board meeting, staff has worked with POLA and the contractor, and has concluded that the process for POLA to contract directly with the contractor may be a lengthy process.  In order to expedite the project, POLA has requested to enter into an agreement with AQMD to provide their cost share of $263,500 towards the completion of the electric tow tractor.

Therefore, staff proposes to enter into an agreement with POLA to receive the $263,500 to co-fund the development and demonstration of the electric tow tractor project.  Based on the December board meeting, the board has already authorized staff to provide the remaining $263,500 from the Clean Fuels Fund for a total project cost of $527,000.

The recommended action is to authorize the chairman to enter into an agreement with POLA to receive the $263,500 and upon receipt, recognize it into the Clean Fuels Fund.  Additionally, the recommended action is to award a sole-source contract to Balqon Corporation to conduct the above items at a cost not to exceed $527,000 from the Clean Fuels Fund.

Sole Source Justification

In the “Procurement Policy and Procedure” document, Section VIII outlines the provisions for awarding a sole source contract.  Specifically, under item B. 2.d, “Other circumstances exist which in the determination of the Executive Officer require such waiver in the best interests of the AQMD,” namely (1) “Projects involving cost sharing by multiple sponsors”.

The proposed project includes receiving funding from POLA as 50% cost share, towards the development and demonstration of the electric tow tractor.

Benefits to AQMD

The proposed project is included in the Technology Advancement Office Clean Fuels Program 2006 Plan Update under item “Develop and Demonstrate Medium- and Heavy-Duty Vehicles and Systems.”  The AQMD has been extremely proactive in developing and demonstrating cost-effective production and utilization of clean fuels, including electricity as a transportation fuel.  Electric vehicles constitute the cleanest alternative-fuel vehicles today, and successful demonstration of such platforms will accelerate the acceptance and ultimate commercialization of these vehicles.

Resource Impacts

There are no additional resource impacts from this action.  At the December 2006 board meeting, the board authorized the use of $263,500 from the Clean Fuels Fund for this project.  The current action is to receive the additional $263,500 from POLA towards the total cost of $527,000.