BOARD MEETING DATE: November 2, 2007
AGENDA NO. 14B

PROPOSAL:

Approve Contract Awards under FY 2006-07 AB 2766 Discretionary Fund Work Program

SYNOPSIS:

At its August 16, 2007 meeting, the MSRC approved multiple contract awards under the FY 2006-07 AB 2766 Discretionary Fund Work Program. Among them were two awards totaling $416,000 to Waste Management for the purchase of up to 13 solid waste collection vehicles with advanced low-emission heavy-duty natural gas engines certified to the 2007 optional 0.2 gram NOx per bhp-hr standard. The MSRC seeks AQMD Board approval of these contract awards under the FY 2006-07 Work Program.

COMMITTEE:

Mobile Source Air Pollution Reduction Review, August 16, 2007, Recommended for Approval

RECOMMENDED ACTIONS:

1. Approve two awards totaling $416,000 under the Advanced Low-Emission Heavy-Duty Natural Gas Solid Waste Collection Engine Program as part of the FY 2006-07 Work Program, as described in this letter, and as follows:
1. A contract to Waste Management-Santa Ana in an amount not to exceed $160,000 for up to five low-emission natural gas refuse trucks; and
2. A contract to Waste Management-Dewey’s in an amount not to exceed $256,000 for up to eight low-emission natural gas refuse trucks;
   
2. Authorize MSRC the authority to adjust contract awards up to five percent, as necessary, and previously granted in prior work programs; and
   
3. Authorize the Chairman of the Board to execute contracts under FY 2006-07 AB 2766 Discretionary Fund Work Program, as described above and within this letter.

Ron Roberts
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.

Under the FY 2006-07 Work Program, the MSRC released a $1.728 million Program Announcement #PA2007-10 for the purchase or repower of solid waste collection vehicles with advanced low-emission heavy-duty natural gas engines certified to the 2007 optional 0.2 gram NOx per brake horsepower hour standard. It included a geographic minimum of $256,000 per county and funds would be awarded on a first-come, first-served basis. Applications received the first day are considered equal and funding will be pro-rated if first-day applications exceed the funding target. If each county does not request their full geographic minimum by the closing date, the funds can be used for applications from other counties on a first-come, first-served basis. The Program Announcement application period commenced April 3, 2007, and closed June 29, 2007. At its August 16, 2007 meeting, the MSRC considered requests for funding from 11 applications under this Program; details are provided in the Proposals section.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the PA 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 AQMD’s own electronic listing of certified minority vendors. Notice of the PA has been mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, the State of California Contracts Register website, and placed on the Internet at AQMD’s Web site (http://www.aqmd.gov. Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bidders’ Conference

A Bidders’ Conference for Program Announce #PA2007-10 was conducted on Wednesday, March 21, 2006, at 1:30 p.m. in Conference Room CC2.

Proposal Evaluation and Panel Composition

The MSRC’s Technical Advisory Committee (MSRC-TAC) formed an evaluation subcommittee to review the application received to determine eligibility, using the criteria within the respective solicitations. The MSRC-TAC is a diverse group of individuals appointed by participating members as prescribed in the Health & Safety Code.

Proposal

Under the FY 2006-07 Work Program, the MSRC released a $1.728 million Program Announcement for the purchase or repower of solid waste collection vehicles with advanced low-emission heavy-duty natural gas engines certified to the 2007 optional 0.2 gram NOx per brake horsepower hour standard.

At its August 16, 2007 meeting, the MSRC awarded funding to 11 applicants totaling $3,968,000 under this Program. On September 7, 2007, the AQMD Board approved 9 of the 11 awards totaling $3,552,000. The remaining two awards, as follows, are hereby submitted again for the AQMD Board’s approval as part of the FY 2006-07 Work Program:

1. A contract to Waste Management-Santa Ana in an amount not to exceed $160,000 for up to five low-emission natural gas refuse trucks; and
2. A contract to Waste Management-Dewey’s in an amount not to exceed $256,000 for up to eight low-emission natural gas refuse trucks.

The MSRC 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 the agreements described in this letter under the FY 2006-07 AB 2766 Discretionary Fund 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.

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