BOARD MEETING DATE: December 5, 2008
AGENDA NO. 23
REPORT:
Mobile Source Air Pollution Reduction Review Committee
SYNOPSIS:
Below is a summary of key issues addressed at the MSRC’s November 20, 2008 meeting. The MSRC’s next meeting is Thursday, December 18, 2008, at 2:00 p.m. in Room CC8; however, there is a possibility it will be canceled because of the holidays.
RECOMMENDED ACTIONS:
Receive and file.
Michael D. Antonovich
AQMD Representative on MSRCr
Ratification of Actions Taken by Committee of the Whole and Approval of Meeting Minutes for October 16, 2008
The MSRC met on October 16, 2008, as a committee of the whole due to the lack of a quorum. At its November 20, 2008 meeting, the MSRC unanimously ratified the actions taken on October 16 by a committee of the whole. They also approved the October 16, 2008 meeting minutes (Attachment 1).
Adoption of 2009 Meeting Schedule
The MSRC unanimously adopted its 2009 Meeting Schedule, which once again establishes meetings on the first and third Thursdays, respectively, for the MSRC-TAC and MSRC, except for January. Because the first Thursday in January falls on New Year’s Day, the meetings in January 2009 are on the second and fourth Thursday, respectively. The adopted 2009 Meeting Schedule is attached (Attachment 2).
Additional Funds and Amended Awards for “Showcase” Program
The MSRC’s FY 2006-07 Off-Road Diesel Equipment Retrofit “Showcase” Program, in partnership with CARB and the AQMD, is intended to demonstrate and ultimately verify on-road retrofit devices on off-road construction vehicles across a variety of engine families. To implement the “Showcase” Program the MSRC previously awarded $3,641,013 to 18 fleets to demonstrate 30 different devices across 198 off-road vehicles. One fleet owner awarded funds was Caltrans, which subsequent to receiving the award advised the MSRC that they did not have budgetary authority to accept MSRC reimbursement or issue purchase orders for the devices and thus requested an alternate contracting mechanism. Additionally, the suitability of devices for some vehicles changed based on updated information, necessitating a re-matching of devices to vehicles. It was also determined that some awards were significantly lower than the actual costs for the retrofit devices. To address the contracting dilemma with Caltrans, the MSRC decided to contract directly with the ten device manufacturers and have Caltrans execute a participation agreement to fulfill the non-monetary requirements incumbent upon “Showcase” Program fleets. Additionally, as part of the FY 2006-07 Work Program, the MSRC awarded an additional $50,475 from unallocated funds to address the shortfall caused by the re-matching and higher actual costs. The AQMD Board will consider these awards at its December 5, 2008 meeting.
Additional Funds for CNG School Buses
The MSRC’s Alternative Fuel School Bus Program is administered by two vendors, A-Z Bus Sales and BusWest. BusWest was awarded $300,000 in the FY 2007-08 Work Program, and an invoice for these funds was recently paid. However, in addition to commitments against the $300,000, in February 2008 BusWest received a purchase order from Perris Union High School District for 20 CNG buses, which would under the program terms be eligible for a $60,000 incentive. Because of staff departures and other internal issues, BusWest did not seek a contract increase from the MSRC to provide the incentive for these buses, but nonetheless ordered and delivered the buses to Perris between July 28 and August 15, 2008. At the November 20, 2008 meeting, they requested a contract increase of $1.2 million from the MSRC. Although the MSRC approved a contract increase using unallocated funds as part of the FY 2007-08 Work Program, it was for $1.14 million rather than $1.2 million. The $60,000 incentive per CNG bus includes the incremental cost between a CNG and diesel bus plus about $8,000 which the school can redirect toward alternative fuel infrastructure. Consequently, the MSRC decreased each bus incentive by $3,000, partially deducting this “infrastructure” portion while still assisting the vendor with interest accrual they incurred as a result of delivering the buses to Perris during the summer. The vendor was also strongly advised to follow proper procedure in future. The AQMD Board will consider this contract modification at its December 5, 2008 meeting.
Approval of Remaining Elements of the FY 2008-09 Work Program
The MSRC previously allocated $12.4 million from its FY 2008-09 Work Program to fund backup lists from its FY 2007-08 Work Program. At its November 20, 2008 meeting, the MSRC considered the remaining elements of its FY 2008-09 Work Program.
At its September 18, 2008 meeting, the MSRC had denied a request from A-Z Bus Sales for an augmentation of $180,000 to its FY 2008-09 contract to reimburse incentives for three buses delivered to Fontana Unified School District on December 31, 2007. Although the buses would have been eligible for payment under A-Z’s FY 2006-07 contract at the time, staff was advised no further invoices would be forthcoming and the contract was closed and the balance returned to the Discretionary Fund in February 2008. A-Z didn’t realize they hadn’t invoiced for the buses until July 2008. At the October 16, 2008 meeting, an MSRC member asked that a motion to reconsider be placed on the November 20, 2008 agenda, and the motion to reconsider was approved. Using unallocated funds as part of its FY 2008-09 Work Program, the MSRC approved a new/replacement contract to A-Z Bus Sales but in the amount of $156,000. They deducted $8,000 per bus ($24,000 in total), which is the incentive portion intended for the school to redirect toward infrastructure since Fontana already has an alternative fuel refueling station in place.
The balance of unallocated funding totaling $5.4 million was targeted for the remaining elements of the MSRC’s FY 2008-09 Work Program, as follows:
- $3 million set aside for a Local Government Match Program – the MSRC will consider the parameters of this program in the near future and seek AQMD Board approval at that time;
- $2,550 for website upgrades, which will be used to augment Haaland Internet Production’s existing contract with the MSRC; and
- $2.4 million in additional funds for its Alternative Fuel School Bus Incentive Program including a contract amendment adding $640,000 to the current FY 2008-09 A-Z Bus Sales contract, providing the full $40,000 incentive for four propane buses and the full $60,000 incentive for eight CNG buses. The MSRC did not deduct any portion of the incentive since A-Z was requesting the additional dollars in advance as stipulated in their contract. The remaining $1.76 million will be distributed between the two vendors on a first-come, first-serve basis, pending MSRC and AQMD Board approval.
The AQMD Board will consider these awards and contract modifications at its December 5, 2008 meeting.
Received and Approved Final Reports
The MSRC received and approved four final reports at its November 20, 2008 meeting, as follows:
- CR&R Inc. Contract #MS04041, which provided $18,750 towards the purchase of ten LNG refuse trucks and mechanic training;
- Rossmoor Pastries Contract #MS06050, which provided $18,750 to install a limited-access CNG station in Signal Hill;
- City of San Bernardino Contract #MS07051, which provided $480,000 towards the purchase of 15 refuse trucks equipped with advanced CNG engines; and
- Orange County Transportation Authority Contract #MS03041, which provided $1,360,000 towards the purchase of 68 CNG transit buses.
All final reports are filed in the AQMD's library and a two-page summary of each closed project can be viewed in the electronic library on the MSRC's website at http://www.cleantransportationfunding.org.
Contract Modification Requests
At its November 20, 2008 meeting, the MSRC considered two more simple contract modification requests and took unanimous action, as follows:
- For County of Los Angeles, Department of Public Works Contracts #PT05055 and #PT06005, which provides $212,500 and $193,500, respectively, for diesel exhaust after-treatment retrofits, approval of the deadline for completing device installations from 28 to 30 months from the contract execution deadline; and
- For Downs Energy Contract #MS04052, which provides $250,000 to install an LNG/L-CNG station in Temecula, approval of a six-month contractual term extension.
Contracts Administrator’s Report
The MSRC's AB 2766 Contracts Administrator provides a written status report on all open contracts from FY 2002-03 through the present. The Contracts Administrator’s Report for November is attached for your information.
Attachments (ZIP, 279k)
- Approved Minutes for 10/16/08 Meeting
- Adopted 2009 Meeting Schedule
- Contracts Administrator’s Report